2013-06-26T16:02:29-05:00 2012-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2012-01-01 410212180 Dakota Electric Association DAKO 6514637134 4300 220th Street W Farmington MN 550249583 LOU ANN WEFLEN 6514637134 2013-06-26 1 LISA CHAFFEE CPA P00193453 7012398500 2013-06-26 2012 2016-02-24 21:20:13Z Lou Ann Weflen 4300 220th Street W Farmington MN 550249583 201919728 0 X www.dakotaelectric.com X 1939 MN Electric Distribution Coop 11 9 225 0 171502 -4568 0 0 193007653 201661079 142234 146195 17801 6095 193167688 201813369 95478 90792 3633578 2283232 20904178 21048876 0 0 0 161893115 169321611 186526349 192744511 6641339 9068858 266492434 277903292 147437253 150138923 119055181 127764369 We are a member-owned, member-focused electric distribution cooperative, striving to exceed our members' energy expectations in a changing world. 0 0 Provide electric and related services and products for approximately 102,000 members/customers. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 1 100 0 1 225 1 1 1 0 0 0 0 190427115 408989 0 X 11 9 1 0 0 0 1 1 1 1 0 0 0 1 1 0 0 1 0 1 0 0 X X Carla Henke 6514637134 4300 220th St W Farmington MN 55024 X James Sheldon 12.80 0.50 X X 27820 0 0 William Holton 13.50 X X 21400 0 0 Paul Trapp 6.90 X X 21400 0 0 Kenneth Danner 11.50 0.60 X X 21400 0 0 Clay Van De Bogart 4.30 X 21400 0 0 Janet Lekson 15.90 0.50 X 21400 0 0 Judy Kimmes 25.70 0.40 X 21400 0 0 Margaret Schreiner 18.10 X 21400 0 0 Gerald Pittman Jr 5.90 X 21220 0 0 Ronald Swagger Jan-May 11.70 X 8800 0 0 Paul Bakken 9.80 X 21400 0 0 David Jones Apr-Dec 17.50 X 16150 0 0 Greg Miller 40.00 X 300735 0 138570 Lou Ann Weflen 40.00 X 204668 0 91288 Dirk Rotty 40.00 X 174150 0 65334 Douglas Larson 40.00 X 172982 0 67046 Michael Fosse 40.00 X 169975 0 83583 Randall Poulson 40.00 X 171496 0 95025 Craig Turner 40.00 X 113027 0 58261 Malinda Mehrhoff 40.00 X 107979 0 58245 Michael Briggs 40.00 X 122218 0 55547 Kevin Fowler 40.00 X 114779 0 57516 Carla Henke 40.00 X 117701 0 24107 2014900 0 794522 24 0 1 0 NPL Construction Co 2355 W Utopia Rd Phoenix AZ 850274167 Underground Construction 2554036 Wright Tree Service Inc 2943 Paysphere Circle Chicago IL 606742943 Tree Trimming 425847 Carr's Tree Service Inc 307 Minnesota 78 Ottertail MN 56571 Tree Trimming 283347 CAP Agency 712 Canterbury Rd S Shakopee MN 553791840 Low Income Energy Efficiency Programs 247805 Kubra Data Transfer LTD 39577 Treasury Center Chicago IL 606949500 Customer Billing 233622 9 Electric 221000 201489577 201489577 Vehicle Repair Services 811000 62897 62897 Technician Electrician for CEG 238210 49153 49153 Dispatching Services 561439 33569 33569 CEG Accounting Support 541200 9331 9331 16552 16552 201661079 162181 162181 15986 -15986 -15986 -15986 96468 90373 6095 6095 201813369 201495672 171502 146195 90792 2283232 1878100 12777218 2969909 2346327 1077322 50892 51750 2207314 2056231 1842510 170727 167892 5351112 8215959 638519 Cost of Purchased Power 141151267 Property & Other Taxes 3808960 Contract & Billable Exp 1491300 Distribution Plant Main 1066779 1050399 192744511 1064388 1159418 18535209 20832079 4372993 4159614 536537 1358165 259487050 101233323 157431838 158253727 11229649 10318441 67666283 76509319 5655537 5312529 266492434 277903292 32797379 34535548 1467925 1190674 116100 117539 97876486 94229025 7903368 15039363 7275995 5026774 147437253 150138923 X 0 0 0 0 119055181 127764369 119055181 127764369 266492434 277903292 X 9068858 -359670 X 0 1 X 1 0 0 1 X 3635100 3635100 7316802 2953097 4363705 245425817 98280226 147145591 3109331 3109331 158253727 Great River Energy Cap Credits 72440772 C NRUCFC Cap Credits 3118878 C Other Cooperative Capital Credits 478743 C Cobank 363396 C Cooperative Memberships 2200 C MN Rural Electric Trust 105330 C 76509319 FAS106 post-employment benefits 4122124 Capital Lease 904650 5026774 X Part IV, Line 2b: The members of the Cooperative can elect to pay an additional set amount on their electric bill each month as a contribution to the Helping Neighbors Trust. The funds collected from the membership are held in a Cooperative account and are paid to the Trust quarterly. The Trust uses the funds for charitable purposes. Funds that exist at the end of the year are a result of a timing difference from when the funds are collected from the Cooperative members, to when they are distributed to the Helping Neighbors Trust. At December 31, 2012 the Cooperative held $2,288. The Cooperative also collects franchise fees from its members and distributes these fees directly to the City of Apple Valley. The amount of $115,251 that exists at December 31, 2012 is a result of a timing difference between when the funds are collected and when they are distributed to the City of Apple Valley. Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: Dakota Electric is exempt from income taxes under Section 501(c)(12) of the Internal Revenue Code and the State of Minnesota. MES provides for deferred taxes on temporary differences arising from assets and liabilities whose basis is different for financial reporting and income tax purposes. Dakota Electric adopted the provisions of Accounting Standards Codification Topic ASC 740-10 (previously Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes), on January 1, 2009. The implementation of this standard had no impact on the financial statements. The unrecognized tax benefit accrual was zero as of December 31, 2012 and December 31, 2011, respectively. Dakota Electric 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, Dakota Electric, MES and its subsidiaries are no longer subject to federal or state tax examinations by tax authorities for years before 2009. Dakota Electric and subsidiaries undergo an annual analysis of various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities, as defined by ASC 740-10. 1 Urban Battles Corporation 441 Rice Street St Paul MN 55103 263714692 501(c)(3) 5000 Community Education Community Action Council (dba 360 Communities) 501 East Highway 13 Suite 102 Burnsville MN 55337 410987708 501(c)(3) 11500 Food Shelf/Energy Assistance 2 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The Cooperative receives verification from the donees of their tax-exempt status. X 1 1 X X X X 0 0 0 Greg Miller 239509 0 35981 0 25245 0 115210 0 23360 0 439305 0 0 0 Lou Ann Weflen 171110 0 19000 0 14558 0 68529 0 22759 0 295956 0 0 0 Dirk Rotty 155638 0 4000 0 14512 0 55466 0 9868 0 239484 0 0 0 Douglas Larson 156420 0 4000 0 12562 0 43096 0 23950 0 240028 0 0 0 Michael Fosse 151760 0 4000 0 14215 0 59723 0 23860 0 253558 0 0 0 Randall Poulson 152801 0 4000 0 14695 0 80184 0 14841 0 266521 0 0 0 Craig Turner 111111 0 0 0 1916 0 34252 0 24009 0 171288 0 0 0 Malinda Mehrhoff 100164 0 1500 0 6315 0 35339 0 22906 0 166224 0 0 0 Michael Briggs 119194 0 0 0 3024 0 45586 0 9961 0 177765 0 0 0 Kevin Fowler 106862 0 1000 0 6917 0 42901 0 14615 0 172295 0 0 0 Part I, Line 1a Health club dues are available to all employees of DEA and are included in the W-2s of the employees. These dues are limited to $240 per year and employees must attend 12 times per month. Supplemental Information Part III Schedule J, Part II, Column C, Deferred Compensation: The estimated current year increase in the actuarial value of the defined benefit plan is included in other compensation for employees listed in Part II of Schedule J. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense and the increase in actuarial value for each employee are reflected in the Schedule O statement referencing Form 990, Part VII, Column f. Great River Energy BOD Overlap 141151267 Board Directors Margaret Schreiner and Clay Van De Bogart serve on both Boards of Directors. Dakota Electric Association purchases its wholesale power from Great River Energy. 0 Form 990, Part VI, Section A, line 2 Some of the board members of the Organization also serve as board members for the subsidiaries of the Organization and thus have a business relationship. Janet Lekson and James Sheldon have a business relationship as they both serve on the Midwest Energy Services board. Judy Kimmes and Kenneth Danner have a business relationship, as they both serve on the Energy Alternatives, Inc. board. Form 990, Part VI, Section A, line 6 The Organization has members, all of which are in the same class with the same voting rights. Form 990, Part VI, Section A, line 7a There are four districts and each district has 3 board members - all members vote on all four districts. Form 990, Part VI, Section A, line 7b Members have the power to remove any director or officer if their actions cause substantial harm to the interests of the Organization. Members also have the right to alter, amend or repeal the bylaws if approved by majority of votes cast. Form 990, Part VI, Section A, line 8b The Cooperative does not have an Executive Committee with the authority to act on behalf of the full Board of Directors. Form 990, Part VI, Section B, line 11 The Board of Directors was provided a copy of the Form 990 for their review at the May 30, 2013 board meeting. Form 990, Part VI, Section B, line 15a The Board of Directors serves as the Compensation Committee. The Board often uses a consultant or a salary survey or comparison of wages from other comparably sized electric cooperatives. The wages data may come from 990s of cooperatives of similar size or from the NRECA compensation survey. Following year end, the Board of Directors deliberates as to whether or not safety, distribution, reliability and other factors were met. If these factors were met the Board will award all or a portion of the "market pay" that had been withheld. The compensation approval process of the President/CEO last took place in March 2012. The compensation of the Vice President of Finance is determined by the CEO through a performance evaluation, as well as periodic area market salary comparisons. This process last took place in June 2012. The HR Department uses comparison wage data from surveys for all positions to determine appropriate market compensation, but the Board does not vote on the compensation of other positions. Form 990, Part VI, Section C, line 19 The financial statements are available to the public on the website or upon request. Other Compensation Form 990, Part VII, Column F, Other Compensation: Included in other compensation is the estimated current year increase in the actuarial value of the defined benefit plan for the following employees: Greg Miller $103,069, Lou Ann Weflen $59,225, Dirk Rotty $47,381, Mike Fosse $51,426, Randall Poulson $72,099, Craig Turner $28,140, Doug Larson $34,561, Kevin Fowler $37,391, Malinda Mehrhoff $30,037, Michael Briggs $39,479, and Carla Henke $18,622. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense for this defined benefit plan for the following employees were: Greg Miller $66,958, Lou Ann Weflen $43,889, Dirk Rotty $38,093, Mike Fosse $39,394, Randall Poulson $38,093, Douglas Larson $39,394, Kevin Fowler $26,097, Malinda Mehrhoff $25,979, Michael Briggs $28,794, Craig Turner $28,723, and Carla Henke $25,600. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Members Offline Capital Credit Retirement -587,675. Estate & Senior Capital Credit Retirement -370,334. Gain on Capital Credit Retirement 294,412. Equity in Earnings of Subsidiary -521,609. General Capital Credit Retirement -1,457,696. Patronage Capital Allocated 2,283,232. Helping Neighbors Trust 4300 220th Street West Farmington MN 55024 411837793 Charity - Energy Assistance MN 501(c)(3) 9 Dakota Electric Association 1 Midwest Energy Services Inc 4300 220th Street West Farmington MN 550249583 411757574 Parent Company of Energy Alternatives MN Dakota Electric Association C 132 5412900 1.00000 1 Energy Alternatives Parent Inc 4300 220th Street West Farmington MN 550249583 411938868 Backup Electric Generation MN Midwest Energy Services Inc C 11507711 8552553 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 Midwest Energy Services O 0 End of Year Actual Balance Midwest Energy Services Q 0 End of Year Actual Balance Energy Alternatives Inc Q 151759 End of Year Actual Balance