2013-07-29T15:17:05-05:00 2012-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2012-01-01 460189704 SIOUX VALLEY SOUTHWESTERN ELECTRIC COOPERATIVE INC SIOU 6055343535 PO BOX 216 COLMAN SD 570170216 MARK ROGEN 6055343535 2013-06-24 1 CRAIG POPENHAGEN P01587689 5074347000 2012 2016-02-24 21:20:13Z SIOUX VALLEY ENERGY DON MARKER PO BOX 216 COLMAN SD 570170216 63547124 0 X WWW.SIOUXVALLEYENERGY.COM X 1939 SD TO PROVIDE ELECTRICITY UTILITY TO MEMBERS OF THE COOPERATIVE. 11 11 116 0 111718 -8967 0 0 54268657 59390126 519085 556546 3087358 3263831 57875100 63210503 0 0 3974790 3787066 509296 980977 0 0 0 53399583 57931861 57883669 62699904 -8569 510599 157888513 165637008 100816721 105364703 57071792 60272305 SIOUX VALLEY ENERGY'S MISSION IS TO BE ITS CUSTOMERS' CHOICE FOR ENERGY AND DIVERSIFIED SERVICES. 0 0 RURAL ELECTRIC DISTRIBUTION COOPERATIVE PROVIDING 662,432 MEGAWATT HOURS OF ELECTRICITY TO 18,300 MEMBER OWNERS. 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 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 131 0 1 116 1 1 1 0 0 0 0 60735453 1516918 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X BETTY VANDERWERFF 6055343535 47092 SD HWY 34 COLMAN SD 570170216 JAN BOBENDRIER 10.30 X 10183 0 0 HENNING HANSEN 8.80 X 10096 0 0 ALLAN WEINACHT 7.90 X 8998 0 0 GARY DROST 4.70 X 8948 0 0 KEVIN EIGENBERG 3.80 X X 7548 0 0 MARK ROGEN 7.50 X X 11398 0 0 BRUCE MARTINSON 6.50 X 11148 0 0 CURTISS NELSON 4.70 X 9554 0 0 ARLYN ZYLSTRA 5.10 X X 9198 0 0 RODNEY DEMENT 8.20 X X 11198 0 0 MARVIN POST 4.30 X 7548 0 0 DON MARKER 50.00 X 173522 0 117036 BETTY VANDERWERFF 44.00 X 96946 0 56541 THEODORE SMITH 48.00 X 121338 0 28930 DEBRA SOMMERS 44.00 X 109330 0 40659 JUSTIN MOOSE 44.00 X 102073 0 28785 709026 0 271951 4 0 1 0 MAY CONSTRUCTION PO BOX 402 MADISON SD 57042 UTILITY CONSTRUCTION 986143 MINNESOTA VALLEY SERVICES LLC PO BOX 248 MONTEVIDEO MN 56265 TREE TRIMMING 423435 SUMMIT UTILITY SERVICES LLC 5571 ALLOY SOUTH MISSOULA MT 59808 UNDERGROUND FACILITY LOCATES 332020 LEGACY POWER LINE INC PO BOX 469 WADENA MN 56482 UTILITY CONSTRUCTION 317034 OLSEN TRENCHING & ELECTRIC INC 48770 240TH ST JASPER MN 56144 UTILITY CONSTRUCTION 311260 10 SALE OF POWER 221000 59390126 59390126 59390126 502796 120685 382111 120433 66683 53750 53750 53750 247923 269938 -22015 -22015 CAPITAL CREDITS 900099 3294813 3294813 CORSON DEVELOPMENT 900099 22 22 UTILITY SAFETY INNOVATIONS, LLC 900099 -8989 -8989 3285846 63210503 62662924 111718 435861 3787066 980977 4586141 3961150 COST OF POWER 38915690 DIST EXP - OPERATIONS 3146612 ADMIN & GENERAL EXPENSE 2474892 DIST EXP - MAINTENANCE 2167803 2679573 62699904 1604872 1600604 744773 1000000 6354791 6234376 3467099 3601265 344677 216306 155837820 35790516 113540323 120047304 3198403 2525948 28380463 30115683 1236 1236 251876 294286 157888513 165637008 6293290 6855814 1799050 1176709 92272517 96852400 451864 479780 100816721 105364703 X 0 0 0 0 57071792 60272305 57071792 60272305 157888513 165637008 X 510599 2689914 X X 0 1 X 1 1 1 1 62130 98969 96121 64978 0 878428 878428 6194464 1974155 4220309 10009955 6732915 3277040 138754973 27083446 111671527 120047304 G&T PATRONAGE CAPITAL 23415314 C NRUCFC PATRONAGE CAPITAL 1436408 C PATRONAGE CAPITAL - OTHER 601011 C NRUCFC CAPITAL TERM CERTS 1982699 C NRUCFC MEMBER CAPITAL SEC 1000000 C VALUE ADDED AG LOANS 663814 C ERC LOANS 760019 C OTHER PROGRAM RELATED 256418 C 30115683 CONSUMER DEPOSITS 467104 PATRONAGE CAPITAL PAYABLE 12676 479780 X PART IV, LINE 1B: CUSTOMERS HAVE THE OPTION OF PARTICIPATING IN OPERATION ROUND-UP. PARTICIPATING CUSTOMERS ROUND THEIR BILLS UP TO THE NEAREST DOLLAR AND THE DIFFERENCE IS CONTRIBUTED TO THE SIOUX VALLEY ENERGY CUSTOMERS' TRUST, WITH THE FUNDS BEING UTILIZED FOR CHARITABLE GIVING. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE COOPERATIVE HAS BEEN GRANTED TAX EXEMPT STATUS UNDER 501(C)(12) OF THE INTERNAL REVENUE CODE. SIOUX VALLEY RURAL TELEVISION IS A TAXABLE CORPORATION. UTILITY SAFETY INNOVATIONS, LLC IS TREATED AS A DISREGARDED ENTITY FOR INCOME TAX PURPOSES. INCOME FROM THE LLC IS INCLUDED WITH THE COOPERATIVE'S UNRELATED BUSINESS INCOME FOR TAX REPORTING PURPOSES. DEFERRED TAX ASSETS AND LIABILITIES ARE RECORDED FOR FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO TEMPORARY DIFFERENCES BETWEEN FINANCIAL STATEMENT CARRYING AMOUNTS OF ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES. PRINCIPALLY, THESE DIFFERENCES RELATE TO DEPRECIATION OF PROPERTY AND EQUIPMENT AND NET OPERATING LOSS CARRYFORWARDS. A VALUATION ALLOWANCE IS PROVIDED WHEN IT IS MORE LIKELY THAN NOT THAT A DEFERRED TAX ASSET WILL NOT BE REALIZED. NET OPERATING LOSS CARRYFORWARDS OF APPROXIMATELY $7,034,000 INCURRED THROUGH DECEMBER 31, 2012 ARE AVAILABLE TO OFFSET FUTURE TAXABLE INCOME OF SVRT. NET OPERATING LOSSES BEGIN EXPIRING IN THE YEAR 2016. AN EQUAL AND OFFSETTING VALUATION ALLOWANCE IS RECORDED AS THE CERTAINTY OF REALIZING THE FUTURE TAX BENEFITS OF THE OPERATING LOSS CARRYFORWARD IS UNCERTAIN AT THE TIME. THE COOPERATIVE AND ITS SUBSIDIARY ADOPTED THE INCOME TAX STANDARD FOR UNCERTAIN TAX POSITIONS ON JANUARY 1, 2009. AS A RESULT OF IMPLEMENTATION, THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2012 AND 2011. WITH FEW EXCEPTIONS THE COOPERATIVE AND ITS SUBSIDIARY ARE NO LONGER SUBJECT TO FEDERAL, STATE, OR LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2009. X 1 1 X X 0 0 0 DON MARKER 173522 0 0 0 0 0 96336 0 20700 0 290558 0 0 0 BETTY VANDERWERFF 96946 0 0 0 0 0 36166 0 20375 0 153487 0 0 0 THEODORE SMITH 121338 0 0 0 0 0 19060 0 9870 0 150268 0 0 0 PART I, LINE 1A THE COOPERATIVE OCCASIONALLY PROVIDES CHARTER TRAVEL FOR GROUPS OF ITS DIRECTORS, OFFICERS, AND EMPLOYEES TO ATTEND MEETINGS OF OTHER ORGANIZATIONS WHEN THIS IS MORE COST EFFECTIVE AND EXPEDIENT THAN ARRANGING FOR OTHER COMMERCIALLY AVAILABLE TRAVEL METHODS. FORM 990, PART VI, SECTION A, LINE 6 EACH ELECTRIC ACCOUNT IS A MEMBER. FORM 990, PART VI, SECTION A, LINE 7A COOPERATIVE IS BROKEN INTO 11 DISTRICTS. MEMBERS CAN VOTE FOR THE DIRECTOR FROM THE DISTRICT IN WHICH THE MEMBER IS LOCATED. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE COOPERATIVE BY-LAWS ARE VOTED ON AT THE ANNUAL MEETING IN WHICH EACH MEMBER HAS THE RIGHT TO VOTE. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WILL BE PROVIDED TO ALL MEMBERS OF THE BOARD OF DIRECTORS AT A MEETING PRIOR TO FILING. EACH BOARD MEMBER WILL HAVE THE OPPORTUNITY TO REVIEW THE RETURN AT THAT TIME. THE RETURN WILL ALSO BE REVIEWED IN DETAIL BY THE DIRECTOR OF FINANCE AND ACCOUNTING PRIOR TO FILING OF THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES, DIRECTORS, THE GENERAL MANAGER/CEO, THE MANAGEMENT STAFF, AND THE ATTORNEY MUST BE FAMILIAR WITH THE CONFLICT OF INTEREST POLICY. EACH IS REQUIRED TO EXECUTE A CONFLICT OF INTEREST STATEMENT THAT THEY ARE IN COMPLIANCE WITH THE POLICY. ANNUALLY THE DIRECTORS, GENERAL MANAGER/CEO, ATTORNEY AND MANAGEMENT STAFF EXECUTE A NEW STATEMENT. EMPLOYEES EXECUTE ONE AT TIME OF EMPLOYMENT AND UPDATE WHEN A CONFLICT ARISES. IF A CONFLICT OF INTEREST EXISTS, THEN THE EMPLOYEE AND SUPERVISOR IN COORDINATION WITH MANAGEMENT SHALL COLLECTIVELY DETERMINE WHAT ACTION SHOULD BE TAKEN. IF A DIRECTOR HAS A CONFLICT OF INTEREST HE/SHE SHALL DISQUALIFY THEMSELVES FROM DECISIONS THAT POSE THE CONFLICT OR THE APPEARANCE OF A CONFLICT OF INTEREST. THE DIRECTOR MAY REQUEST AN OPINION OF THE COOPERATIVE ATTORNEY BEFORE SUCH ACTION IS TAKEN. FORM 990, PART VI, SECTION B, LINE 15 SIOUX VALLEY ENERGY USES A NATIONAL COMPENSATION SURVEY PROVIDED TO US BY OUR NATIONAL ASSOCIATION, NRECA. THE NATIONAL AVERAGE PAY IS USED AS A GUIDANCE FOR ESTABLISHING INITIAL SALARIES AND YEARLY SALARY CHANGES. YEARS OF EXPERIENCE IN A POSITION ARE ALSO FACTORED IN. USING THE SURVEY DATA HELPS TO ENSURE SALARIES REMAIN COMPETITIVE WITH THOSE OFFERED AT OTHER RURAL ELECTRIC COOPERATIVES AND THAT THE DATA REMAINS CONSISTENT FROM YEAR TO YEAR. THIS PROCESS IS USED FOR ALL POSITIONS AT SIOUX VALLEY ENERGY ON AN ANNUAL BASIS. THE LAST YEAR THIS PROCESS WAS UNDERTAKEN WAS 2012. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE TO THE COOPERATIVE MEMBERS UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: EQUITY IN EARNINGS OF SIOUX VALLEY RURAL TELEVISION 129,427. RETIREMENT OF CAPITAL CREDITS -1,226,557. CORSON DEVELOPMENT ASSOCIATION, LLP K-1 -22. PATRONAGE DIVIDENDS PAID 3,787,066. FORM 990, PART XII, LINE 2C THE COOPERATIVE'S OVERSIGHT OF THE AUDIT AND SELECTION OF INDEPENDENT AUDITOR HAS NOT CHANGED. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990. UTILITY SAFETY INNOVATIONS LLC PO BOX 216 47092 SC HWY 34 COLMAN SD 57017 DESIGN UTILITY SAFETY PRODUCTS SD -8989 36526 SIOUX VALLEY SOUTHWESTERN ELECTRIC INC SIOUX VALLEY RURAL TELEVISION INC PO BOX 216 COLMAN SD 57017 460402369 WIRELESS INTERNET SERVICES SD SIOUX VALLEY SOUTHWESTERN ELECTRIC INC C 129427 2595039 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 SIOUX VALLEY RURAL TELEVISION INC A 120685 ACTUAL AMOUNT SIOUX VALLEY RURAL TELEVISION INC O 766015 ACTUAL AMOUNT SIOUX VALLEY RURAL TELEVISION INC Q 334249 ACTUAL AMOUNT SIOUX VALLEY RURAL TELEVISION INC S 1807865 ACTUAL AMOUNT