2014-11-10T08:22:05-06:00 2013-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2013-01-01 410548360 SOUTH CENTRAL ELECTRIC ASSOCIATION SOUT 5073753164 BOX 150 ST JAMES MN 56081 RONALD HORMAN GENERAL MANAGER 5073753164 2014-10-31 1 LAURIE HANSON P00851848 6053391999 2014-10-30 2013 2015-11-30 17:44:51Z RONALD HORMAN BOX 150 ST JAMES MN 56081 19003445 0 X WWW.SOUTHCENTRALELECTRIC.COM X 1937 MN PROVIDING ELECTRICITY TO MEMBERS OF THE COOPERATIVE. 7 7 24 0 11599 0 0 0 17192243 18913461 26494 37326 -3512 -8904 17215225 18941883 4779 4207 1046389 1432359 2702819 2364166 0 0 0 13236368 15061903 16990355 18862635 224870 79248 51319999 56801240 34396848 38523239 16923151 18278001 TO PROVIDE RELIABLE, EFFICIENT DELIVERY OF ELECTRICITY AND OTHER SERVICES TO OUR MEMBER OWNERS WITH THE HIGHEST LEVEL OF CUSTOMER SERVICE. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 3,922 MEMBERS AND REPLACED 86 MILES OF OVERHEAD LINE WITH UNDERGROUND LINE. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 58 0 1 24 1 1 1 0 0 0 0 0 0 18623811 206483 0 X 7 7 0 1 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X RONALD HORMAN 5073753164 PO BOX 150 ST JAMES MN 56081 X MARK SANDBERG PRESIDENT 5.30 X X 18198 0 0 BRUCE FALK VICE PRESIDENT 3.70 X X 17558 0 0 BRENT IMKER SECRETARY 10.40 X X 18078 0 0 RICHARD JOHNSON TREASURER 3.00 X X 16998 0 0 RON JORGENSON DIRECTOR 4.70 X 17243 0 0 MICHAEL MIEST DIRECTOR 2.30 X 17278 0 0 BRAD ASENDORF DIRECTOR 2.30 X 17243 0 0 RONALD HORMAN GENERAL MANAGER 25.00 X 66862 0 63253 JEFF MUELLER FINANCE/ADMIN MANAGER 43.00 X 108152 0 70680 MARK ANDERSON OPERATIONS MANAGER 43.00 X 106344 0 64291 403954 0 198224 2 0 1 0 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE ROAD PAYNESVILLE MN 56362 OVERHEAD LINE CONSTRUCTION 554661 MASTEC INC PO BOX 277181 ATLANTA GA 30384 UNDERGROUND LINE CONSTRUCTION 406385 MEI ENGINEERING INC 4201 38TH ST SW FARGO ND 58104 ENGINEERING 101276 3 SALE OF POWER 221000 18274222 18274222 CAPITAL CREDITS 221000 542817 542817 EQUITY EARNINGS 230000 86422 20761 65661 OTHER NON-OPERATING 900099 10000 10000 18913461 37326 37326 47748 61562 -13814 -4652 -9162 STATE TAX REFUND 900099 3150 3150 FEDERAL TAX REFUND 900099 1760 1760 4910 18941883 18822387 11599 107897 X 4207 1432359 261242 1631071 338837 133016 1267410 1493512 COST OF POWER 10787930 ADMIN & GENERAL 1150139 DISTRIBUTION-MAINTENANC 960402 DISTRIBUTION-OPERATIONS 956715 -1554205 18862635 1 350018 496210 3147993 3698095 568826 1454937 1254810 1130500 378969 1274634 52033528 11649601 37616577 40383927 1813080 1684593 6184534 6673139 5191 5205 51319999 56801240 2497300 3001545 29125546 33287250 2150000 1575000 624002 659444 34396848 38523239 X 0 0 0 0 16923151 18278001 16923151 18278001 51319999 56801240 X 79248 1275602 X X 0 1 X 1 0 27757 27757 1399191 467111 932080 50480780 11182490 39298290 125800 125800 40383927 GREAT RIVER ENERGY 5177827 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 666338 C COOPERATIVE TELEVISION ASSOCIATION OF SOUTHERN MINNESOTA 303890 C EAST RIVER 160772 C RURAL ELECTRIC SUPPLY COOPERATIVE 248938 C FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE 52609 C OTHER INVESTMENTS 62765 C 6673139 10536 CUSTOMER DEPOSITS 77436 DEFERRED CREDITS 20665 ACCUMULATED PROVISION FOR PENSION BENEFITS 550807 659444 X 18945697 3814 3814 18941883 0 18941883 17434090 3814 3814 17430276 1432359 1432359 18862635 PART X, LINE 2: THE ASSOCIATION HAS EVALUATED WHETHER IT WAS NECESSARY TO RECOGNIZE ANY BENEFIT FROM UNCERTAIN TAX POSITIONS IN CURRENTLY OPEN TAX PERIODS AND DETERMINED THAT THERE ARE NO MATERIAL UNCERTAINTIES WITHIN ITS FILED TAX RETURNS. AS OF DECEMBER 31, 2013 AND 2012, THE UNRECOGNIZED TAX BENEFIT ACCRUAL WAS ZERO. THE ASSOCIATION WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE, IF INCURRED. GENERALLY, THE ASSOCIATION IS NO LONGER SUBJECT TO FEDERAL OR STATE TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: OTHER NONOPERATING INCOME 3,814. PART XII, LINE 2D - OTHER ADJUSTMENTS: OTHER NONOPERATING INCOME 3,814. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2013 MARGINS TO MEMBERS IN 2014 1,432,359. X X 0 0 0 RONALD HORMAN GENERAL MANAGER 64582 0 300 0 1980 0 49105 0 15574 0 131541 0 0 0 JEFF MUELLER FINANCE/ADMIN MANAGER 107275 0 0 0 877 0 68347 0 2333 0 178832 0 0 0 MARK ANDERSON OPERATIONS MANAGER 104864 0 0 0 1480 0 59547 0 4744 0 170635 0 0 0 FORM 990 SCHEDULE J PART II RONALD HORMAN'S COMPENSATION IS PAID BY REDWOOD ELECTRIC COOPERATIVE, AN UNRELATED ORGANIZATION, AND 50% OF HIS GROSS WAGES ARE REIMBURSED BY SOUTH CENTRAL ELECTRIC ASSOCIATION THROUGH A SHARED MANAGEMENT AGREEMENT. FORM 990, PART VI, SECTION A, LINE 3 SOUTH CENTRAL ELECTRIC ASSOCIATION SHARES A GENERAL MANAGER, RONALD HORMAN, WITH REDWOOD ELECTRIC COOPERATIVE OF CLEMENTS, MINNESOTA. RONALD HORMAN IS AN EMPLOYEE OF REDWOOD ELECTRIC COOPERATIVE. SOUTH CENTRAL ELECTRIC ASSOCIATION HAS CONTRACTED WITH REDWOOD ELECTRIC COOPERATIVE FOR RONALD HORMAN'S SERVICES. FORM 990, PART VI, SECTION A, LINE 6 ALL CUSTOMERS OF THE COOPERATIVE ARE CONSIDERED MEMBERS, THERE IS ONLY ONE CLASS OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ARE ALL OF THE SAME CLASS AND EACH MEMBER HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE ARTICLES AND BY-LAWS ARE SUBJECT TO MEMBER APPROVAL. ALL MEMBERS MAY VOTE ON THESE CHANGES. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 WILL BE REVIEWED BY THE GENERAL MANAGER. AFTER HIS REVIEW, IT WILL BE DELIVERED TO EACH BOARD MEMBER VIA EMAIL OR VIA PAPER COPY. BOARD MEMBERS WILL BE GIVEN SUFFICIENT TIME TO REVIEW THE 990. THE GENERAL MANAGER WILL PRESENT THE 990 AT A BOARD MEETING IF ANY BOARD MEMBER SO REQUESTS. THIS PROCESS WILL TAKE PLACE PRIOR TO THE FILING OF THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR, OFFICER AND MANAGER OF SOUTH CENTRAL ELECTRIC ASSOCIATION MUST COMPLY WITH THE POLICY. THE BOARD OF DIRECTORS INTERPRETS AND ENFORCES THE POLICY AND THE ASSOCIATION'S LEGAL COUNSEL ANNUALLY REVIEWS THE POLICY WITH ALL WHO MUST COMPLY WITH THIS POLICY. UPON RECEIVING OR DISCOVERING ANY INFORMATION OR FACT THAT COULD IMPACT COMPLIANCE WITH THE POLICY, THE BOARD WILL ALLOW THE PERSON INVOLVED AN OPPORTUNITY TO COMMENT ORALLY OR IN WRITING, AND IS GIVEN THIRTY DAYS TO COMPLY. IF COMPLIANCE IS NOT ATTAINED IN THIRTY DAYS, THE PERSON WILL BE REMOVED FROM THEIR POSITION WITH THE ASSOCIATION. FORM 990, PART VI, SECTION B, LINE 15A THE GENERAL MANAGER'S COMPENSATION IS APPROVED BY THE SAC COMMITTEE WHICH IS MADE UP OF DIRECTORS FROM SOUTH CENTRAL ELECTRIC AND REDWOOD ELECTRIC. THIS PROCESS WAS LAST UNDERTAKEN IN 2013 FOR RONALD HORMAN. FORM 990, PART VI, SECTION C, LINE 19 A COPY WILL BE FAXED OR EMAILED TO INDIVIDUALS WHO REQUEST A COPY. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE GENERAL MANAGER AND FINANCE/ADMIN MANAGER. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -195,726. GAIN ON RETIRED CAPITAL CREDITS 38,969. ALLOCATION OF 2013 MARGINS TO MEMBERS IN 2014 1,432,359. FORM 990 PART XII, LINE 2C THE ENTIRE BOARD OF DIRECTORS IS RESPONSIBLE FOR THE SELECTION AND OVERSIGHT OF THE INDEPENDENT PUBLIC ACCOUNTANT. FORM 990 PART VII SECTION A: COMPENSATION OF OFFICERS THE GENERAL MANAGER IS PAID BY REDWOOD ELECTRIC COOPERATIVE FOR SERVICES PERFORMED FOR THIS ORGANIZATION AS WELL AS FOR SERVICES AS GENERAL MANAGER PERFORMED FOR SOUTH CENTRAL ELECTRIC ASSOCIATION. THIS FORM 990 INCLUDES HALF OF THE COMPENSATION PAID TO THE GENERAL MANAGER FOR SERVICES RENDERED FROM EACH ORGANIZATION. IN ADDITION TO WORKING APPROXIMATELY 25 HOURS PER WEEK FOR SOUTH CENTRAL ELECTRIC ASSOCIATION, THE GENERAL MANAGER WORKS APPROXIMATELY 25 HOURS PER WEEK FOR REDWOOD ELECTRIC COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 16B THE ORGANIZATION HAS NOT ADOPTED A WRITTEN POLICY. HOWEVER, THE RURAL DEVELOPMENT UTILITITES PROGRAM LIMITS THE AMOUNT OF INCOME THAT CAN BE MADE FROM NONOPERATING VENTURES. OVER 85% OF GROSS REVENUES NEED TO COME FROM COOPERATIVE MEMBERSHIPS.