2013-07-09T08:30:57-05:00 2012-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2012-01-01 381109570 Tri-County Electric Cooperative TRI- 5176477554 7973 East Grand River Ave Portland MI 48875 Mark Kappler 5176477554 2013-06-25 1 LISA CHAFFEE CPA P00193453 7012398500 2013-06-25 2012 2016-02-24 21:20:13Z Mark Kappler 7973 East Grand River Ave Portland MI 48875 45977318 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 86 0 0 0 0 0 41405122 45629812 124812 129329 192085 154303 41722019 45913444 0 0 3060438 3159713 4401321 5018698 0 0 0 34260260 38235033 41722019 46413444 0 -500000 106381431 107609132 53715221 53239680 52666210 54369452 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 25,566 meters. Added/replaced 4.4 miles of line for a total of 3,345 total miles of line. 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 86 1 0 0 0 0 0 43516782 697036 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 Pat Simmer 5176477554 7973 East Grand River Ave Portland MI 48875 X Carl Morton 3.80 0.30 X X 20520 0 0 Wayne Swiler 8.80 0.30 X X 17140 0 0 Laverne Hansen 9.90 0.30 X X 17255 0 0 Philip Conklin 8.00 0.30 X 15480 0 0 Cara Evans 7.80 0.30 X 16425 0 0 Dean Floria 10.50 0.30 X 16110 0 0 Ed Oplinger 5.50 0.30 X 18630 0 0 Mark Kappler 54.30 0.30 X 177647 0 76576 Tom Manting 41.30 1.50 X 96810 0 52266 Matt Miller 46.90 X 105948 0 75038 Thomas Hoffmeyer 48.80 X 103263 0 25576 Jeremy McVeigh 52.20 X 110061 0 28660 Richard Warchuck 51.80 X 112935 0 29175 Kyle Balderson 48.30 X 101419 0 27443 929643 0 314734 7 0 1 0 Asplundh Tree Expert Company 708 Blair Mill Rd Willow Grove PA 19090 Tree Cutting/Trimming 1135074 Michigan Electric (MECA) 2859 W Jolly Rd Okemos MI 48864 Statewide Association 681990 Woodwalkers Electric LLC 1400 20th Avenue Blanchard MI 49310 Line Construction 476636 Campbell Electric 2310 Schram Rd Indian River MI 49749 Line Construction 470994 National Information Solutions PO Box 1147 Mandan ND 58554 Software Support 399813 8 Electric Revenues 221000 43194656 43194656 Capital credits 900099 2435588 2435588 Miscellaneous 900099 -432 -432 45629812 110860 110860 138773 0 138773 138773 138773 19277 808 18469 18469 18469 78596 63066 15530 15530 45913444 45645342 0 268102 3159713 505280 2997347 630127 642672 243272 972162 1956632 2730590 Cost of Power 28715222 Distribution 1953895 Customer Accounts 1071117 Administrative & Genera 835415 46413444 4432341 1661368 5041369 5622735 794736 710948 159667 375453 91372291 26088108 63582242 65284183 32041580 33432761 90616 100723 238880 420961 106381431 107609132 7392361 6529496 1805122 2087631 5891 5604 44511847 42966949 1650000 53715221 53239680 X 42287009 43956515 10379201 10412937 0 0 52666210 54369452 106381431 107609132 X -500000 2203242 X 0 1 X 1 0 0 1 X 3300 443473 446773 7143467 981581 6161886 83483594 25106527 58377067 298457 298457 65284183 CFC - Patronage Capital Certificates 723783 C CFC - Certificates 1930820 C Memberships & Other Investments 358424 C Wolverine Power Supply Co-op, capital credits 23437571 C Tri-Co Services, Inc. 6982163 C 33432761 X 45880426 -33018 -33018 45913444 0 45913444 43253731 0 43253731 3159713 3159713 46413444 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 in the Cooperative's service area. Amounts owed to the Fund at December 31, 2012 and 2011 amounted to $5,604 and $5,891, respectively. Description of Uncertain Tax Positions Under FIN 48: 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 activities is subject to income tax at normal corporate rates. The Cooperative has adopted the provisions 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 had no unrecognized tax benefits as of December 31, 2012 and 2011. 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 2009. The Cooperative undergoes an annual analysis of its various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities, as defined by ASC 740-10. Part XI, Line 2d - Other Adjustments: Equity Earnings of Subsidiary -33,018. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated During Current Year 3,159,713. X X X 0 0 0 Mark Kappler 171883 0 0 0 5764 0 58432 0 18522 0 254601 0 0 0 Matt Miller 100479 0 3500 0 1969 0 60918 0 13813 0 180679 0 0 0 Supplemental Information Part III Form 990, Schedule J, Part II, Column C, Compensation Of Officers, Directors, Key Employees, Highest Compensated Employees And Independent Contractors: 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 $53,222 and Matt Miller is $57,891. These amounts are an estimate in the increase of the value of the plan and is not a current year expense of the cooperative. The current year expense of the defined benefit plan is $41,001 and $23,641. Christi Manting Spouse of CFO 55218 Wages & 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 the 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 decisions. 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 11 The CEO & CFO reviewed the Form 990 prior to it being distributed and reviewed at the June 2013 board meeting. 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 President. 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 to be in violation of this policy will be subject to disciplinary actions, including termination. Directors in violation of the 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. Compensation Of Officers Form 990, Part VII, Section A, Column (F): 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 Tom Manting is $31,498, Richard Warchuck $5,023, Matt Miller $57,891, Thomas Hoffmeyer $3,319, Jeremy McVeigh is $5,239, Kyle Balderson is $5,731, and for Mark Kappler is $53,222. 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 $23,041, $14,136, $23,641, $14,136, $14,136, $14,136, and $41,001, respectively. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Increase in Memberships - Net 12,483. Capital Credits Retired -990,207. Equity earnings of subsidiary -33,018. Donated Capital Credits 54,271. Patronage Capital Credits Allocated During Current Year 3,159,713. Benefits Paid to Members Form 990, Part IX, Functional Expense, 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. Tri-County Electric People Fund Inc 7973 East Grand River Ave Portland MI 48875 383083659 Operation Round Up MI 501(c)(3) Line 7 Tri-County Electric Cooperative 1 Tri-Co Services Inc 7973 East Grand River Ave Portland MI 48875 382803942 Sales & Service, Satellite TV & Internet MI Tri-County Electric Cooperative C -33018 8268246 1.00000 1 1 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 1 1 1 Tri-Co Services Inc A 20484 Actual Cost Tri-Co Services Inc N 70422 Actual Cost Tri-Co Services Inc O 777850 Actual Cost Tri-Co Services Inc Q 252121 Actual Cost Tri-Co Services Inc R 2240325 Actual Cost Tri-Co Services Inc P 0 Tri-County Electric People Fund Inc R 69811 Actual Cost Tri-Co Services Inc F 500000 Actual Disbursement