2014-07-01T10:47:23-07:00 2013-12-31 990 2013-01-01 381109570 Tri-County Electric Cooperative TRI- 5176477554 7973 East Grand River Ave Portland MI 48875 Mark Kappler President/CEO 5176471281 2014-06-25 2013 2015-11-30 17:44:51Z Mark Kappler 7973 East Grand River Ave Portland MI 48875 47480123 0 X www.homeworks.org X 1937 MI To provide our members and customers with energy, comfort and communication solutions that will enhance their quality of life. 7 0 87 0 0 0 0 0 45629812 47145160 129329 102402 154303 118942 45913444 47366504 0 0 3159713 3965113 5018698 5018967 0 0 0 38235033 38582424 46413444 47566504 -500000 -200000 107609132 112468777 53239680 55799306 54369452 56669471 To provide our members and customers with energy, comfort and communication solutions that will enhance their quality of life. 0 0 Revenue from sale of electric power to 25,611 meters. Added/replaced 8.5 miles of line for a total of 3,354 miles of line. 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 41 0 1 87 1 0 0 0 0 0 44784939 354791 0 X 7 0 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Patrick Simmer 5176477554 7973 East Grand River Ave Portland MI 48875 X Carl Morton Chairman 4.3 0.3 X X 21880 0 0 Wayne Swiler Vice Chairman 9.5 0.3 X X 16598 0 0 Lavene Hansen Secretary/Treasurer 10.3 0.3 X X 19433 0 0 Philip Conklin Director 7.1 0.3 X 16283 0 0 Cara Evans Director 7.3 0.3 X 17228 0 0 Dean Floria Director 12.6 0.3 X 17543 0 0 Ed Oplinger Director 16 0.3 X 21638 0 0 Mark Kappler President/CEO 49.6 5.8 X 182910 0 93041 Tom Manting CFO 42.5 0.25 X 99597 0 58295 Matt Miller Operations Manager 49.9 0 X 110402 0 93835 Kyle Balderson Lineman 50 0 X 102218 0 30396 Jeremy Zbytowski Lineman 50 0 X 102663 0 28683 Jeremy McVeigh Lineman 50 0 X 107293 0 29954 Richard Warchuck Lineman 48.1 0 X 101089 0 29268 936775 0 363472 9 0 1 0 Asplundh Tree Expert Company 708 Blair Mill Road Willow Grove PA 19090 Tree Cutting/Trimming 1044858 Michigan Electric Cooperative Association (MECA) 2859 West Jolly Road Okemos MI 48864 Statewide Association 541096 National Information Solutions PO Box 1147 Mandan ND 58554 Software Support 407195 Campbell Electric Incorporated 2310 Schram Road Indian River MI 49749 Line Construction 213452 Thunder Bay Tree Services LLC 1172 Hailey Road Alpena MI 49707 Herbicide Spraying 138875 6 0 Electric Revenues 221000 44340909 44340909 0 0 Capital Credits 900099 2804251 2804251 0 0 0 0 0 0 47145160 112741 0 0 112741 0 0 0 0 0 0 0 0 113434 0 0 0 113434 0 113434 0 0 113434 0 24138 0 34477 0 -10339 -10339 0 0 -10339 0 0 0 0 0 0 0 0 0 0 0 0 84650 79142 5508 5508 0 0 0 47366504 47150668 0 215836 X 0 0 0 3965113 516376 0 3015005 641716 605651 240219 0 0 0 0 0 0 0 0 0 0 0 994402 0 0 0 1981275 0 2820854 Cost of Power 28987550 Distribution 1954623 Customer Accounts 1051390 Administrative and General 783166 9164 47566504 0 0 0 0 0 1661368 1541375 0 0 5622735 6034468 0 0 0 0 0 0 710948 659591 375453 2548575 93753195 27947876 65284183 65805319 0 0 0 0 33432761 35636306 100723 70697 420961 172446 107609132 112468777 6529496 7221531 0 0 2087631 2251789 0 0 5604 5579 42966949 43570407 1650000 2750000 0 0 0 0 53239680 55799306 X 43956515 46432631 10412937 10236840 0 0 54369452 56669471 107609132 112468777 X -200000 0 0 0 0 2500019 X 0 1 X 1 0 0 1 X 3300 443473 446773 0 7161971 2034032 5127939 0 0 0 0 0 85624311 25913844 59710467 0 520140 0 520140 65805319 CFC-Patronage Capital 778394 C CFC-Subordinate Certificates 1913096 C Memberships and Other Investments 357943 C Wolverine Power Supply Co-op Capital Credits 25563695 C Tri-Co Services, Inc. 7023178 C 35636306 0 X 47598356 0 0 0 231852 231852 47366504 0 0 0 47366504 43592227 0 0 0 -9164 -9164 43601391 0 3965113 3965113 47566504 Schedule D, Part IV, Line 2b The Cooperative collects and remits voluntary contributions to the Tri-County Electric People Fund, Inc. (the fund) a 501(c)(3) nonprofit organization organized for charitable giving to individuals and organizations primarily in the Cooperative's service area. Amounts owed to the fund at December 31, 2013 and 2012 amounted to $5,579 and $5,604, respectively. Schedule D, Part X, Line 2 The Cooperative is exempt from federal income tax under section 501(c)(12) of the United States Internal Revenue Code, therefore no provision for federal income tax is recorded. However, income from unrelated business activity is subject to income tax at normal corporate rates. The Cooperative has adopted the provision of FASB Accounting Standards Codification Topic ASC 740-10, effective January 1, 2009. Implementation resulted in no cumulative effect adjustment to retained earnings as of the date of adoption. The Cooperative has no unrecognized tax benefits as of December 31, 2013 and 2012. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if such penalties and interest are incurred. Under normal circumstances, The Cooperative is no longer subject to Federal and State tax examinations by tax authorities for years before 2010. The Cooperative undergoes an annual analysis of its various tax positions, assessing the liklihood of those positions being upheld upon examination with relevaant tax authorities, as defined by ASC 740-10. Schedule D, Part XI, Line 2d Equity Earnings of Subsidiary $241,016, Non-Operating Expense -$9,164 Schedule D, Part XII, Line 2d Non-Operating Expense -$9,164 Schedule D, Part XII, Line 4b Patronage Capital Credits Allocated During Current Year $3,965,113 X X X 0 0 0 Mark Kappler President/CEO 176066 0 0 0 6844 0 74138 0 18205 0 275253 0 0 0 Tom Manting CFO 99119 0 0 0 478 0 37678 0 21404 0 158679 0 0 0 Matt Miller Operations Manager 103866 0 4500 0 2036 0 78958 0 14566 0 203926 0 0 0 Schedule J, Part II Included in column "c", deferred compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Mark Kappler is $68,774, Tom Manting is $34,609 and Matt Miller is $75,686. These amounts are an estimate in the increase in value of the plan and is not a current year expense of the cooperative. The current year expense of the defined benefit plan is $35,137, $20,089 and $21,359 respectively. Christia Manting Spouse of CFO 54914 Wages and Benefits 0 Form 990, Part VI, Section A, Line 2 All board members and the CEO have business relationships due to their positions with Tri-Co Services, Inc., a wholly owned corporation. Form 990, Part VI, Section A, Line 6 There is one class of members. Each member is entitled to one vote. Form 990, Part VI, Section A, Line 7a Each member is entitled to one vote to elect their district board member at their annual district meeting. Form 990, Part VI, Section A, Line 7b The altering or amending of the bylaws requires the majority vote of the members. Each member has one vote on such a decision. Form 990, Part VI, Section A, Line 8b There is no committee with the authority to act on behalf of the full board. Form 990, Part VI, Section B, Line 11b The CEO and CFO reviewed the Form 990 prior to it being distributed and reviewed at the June 2014 board meetiing. Form 990, Part VI, Section B, Line 12c A board policy exists describing the situations creating a conflict of interest and requires each of the directors and key employees to disclose and report any potential conflicts to the proper authority. The CFO and other employees must report to the CEO. The CEO must report to the Board Chairman. The CFO, CEO and directors are all required to review and sign an annual statement pertaining to conflicts of interest. Employees, including the CFO and CEO, found in violation of this policy will be subject to disciplinary actions, including termination. Directors in violation of this policy will be dealt with pursuant to the bylaws of the cooperative. Form 990, Part VI, Section B, Line 15 Job descriptions are maintained for each position, providing a basis for the responsibilities for each position. Annual goals and objectives tied to the strategic plan of the Organization are set for each position. Once each fiscal year, the performances of these positions are evaluated. For the CEO, the board of directors as a whole evaluates the performance against the job responsibilities and the goals and objectives. Also, provided as a guide, are the guidelines provided by the national organization called the CEO Competency Profile which provides a list of competencies and characteristics for success. For the CFO, the position is evaluated in a similar manner by the CEO. Annual compensation surveys are obtained for the above position in similar organizations with similar responsibilities which provide compensation ranges. Educational background and work experience is also taken into consideration. Annual evaluations are brought to the board in September of each year. This process was last completed annually in September. Form 990, Part VI, Section C, Line 19 The Organization makes its governing documents, conflict of interest policy, and financial statements available upon request. Form 990, Part VII, Section A, Line 1a Included in column "f", estimated amount of other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Mark Kappler is $68,774, Tom Manting is $34,609, Matt Miller is $75,686, Kyle Balderson is $8,505, Jeremy Zbytowski is $5,882, Jeremy McVeigh is $6,957 and for Richard Warchuck is $6,711. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the cooperative. The current year expense for this defined benefit plan for these individuals was $35,137, $20,089, $21,359, $16,354, $16,354, $16,354 and $16,354 respectively. Form 990, Part IX, Line 4 The Cooperative has interpreted the instructions to Part IX, Line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Bylaws of the Cooperative. Form 990, Part XI, Line 9 Donated Capital $82,892, Capital Credits Retired $-1,789,001, Equity Earnings by Subsidiary $241,016, Patronage Capital Credits Allocated During Current Year $3,965,112, Total to Form 990, Part XI, Line 9 $2,500,019. Tri-County Electric People Fund Incorporated 7973 East Grand River Avenue Portland MI 48875 383083659 Operation Round Up MI 501(c)(3) Line 7 Tri-County Electric Cooperative 1 Tri-Co Services Incorporated 7973 East Grand River Avenue Portland MI 48875 382803942 Sales, Service, Internet MI Tri-County Electric Cooperative C 241016 8602374 1 1 1 0 0 0 1 1 0 0 0 0 0 0 0 1 1 1 1 1 0 Tri-Co Services Incorporated a-iv 22150 Actual Cost Tri-Co Services Incorporated e 2000000 Actual Cost Tri-Co Services Incorporated f 200000 Actual Cost Tri-Co Services Incorporated n 71540 Actual Cost Tri-Co Services Incorporated o 814942 Actual Cost Tri-Co Services Incorporated p 0 Actual Cost Tri-Co Services Incorporated q 196091 Actual Cost Tri-Co Services Incorporated r 4615735 Actual Cost Tri-County Electric People Fund Incorporated r 68331 Actual Cost