2013-08-05T11:33:27-05:00 2012-12-31 450310328 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2012-01-01 410411772 MILLE LACS ENERGY COOPERATIVE MILL 2189272191 PO BOX 230 AITKIN MN 56431 DEBORAH SCHULTZ 2189272191 2013-07-26 1 DAVID HOLT P00014251 7017754685 2012 2016-02-24 21:20:13Z RALPH MYKKANEN PO BOX 230 AITKIN MN 56431 24345211 0 X WWW.MLECMN.NET X 1939 MN PROVIDES ELECTRIC DISTRIBUTION SERVICE TO 13,007 MEMBERS OF THE COOPERATIVE 7 6 52 0 495408 -59477 0 0 21790664 22618293 180212 320022 1300885 1357057 23271761 24295372 0 0 2036539 2240710 402224 396264 0 0 0 20832998 21658398 23271761 24295372 0 0 54242824 55875209 34953212 35268702 19289612 20606507 501(C)12 ELECTRIC DISTRIBUTION COOPERATIVE - EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO OUR MEMBERS 0 0 PROVIDE ELECTRIC SERVICE TO 13,007 MEMBERS OF THE COOPERATIVE 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 1 0 0 0 0 0 1 0 0 1 23 0 52 1 1 1 0 0 0 0 22597697 948941 0 X 7 6 0 0 0 0 1 1 1 1 1 0 0 1 0 1 1 1 1 0 X DEBORAH SCHULTZ 2189272191 36559 US HIGHWAY 169 AITKIN MN 56431 X DENNIS LAMKE 11.80 X X 14304 0 0 AILEEN R DEMENGE 3.90 X X 13249 0 0 BARBARA WELTY 6.10 X X 14289 0 0 HAROLD HARMS 6.20 X X 14470 0 0 DONALD APPEL 4.50 X 10507 0 0 LYNDON E HASSKAMP 3.80 X 10426 0 0 MICHAEL W REEM 3.60 X 8434 0 0 RALPH MYKKANEN 44.20 X 162637 0 81251 DEBORAH SCHULTZ 46.40 X 95301 0 56513 343617 0 137764 1 0 1 0 NISC PO BOX 1147 MANDAN ND 58554 COMPUTER SOFTWARE SERVICES 225232 EAST CENTRAL ENERGY COOP PO BOX 39 BRAHAM MN 55006 PLANT MAINTENANCE, ON CALL SERVICES 133552 2 ELECTRIC SALES 221000 22231492 22231492 FORFEITED DISCOUNTS 221000 247713 247713 OTHER MISCELLANEOUS REVENUE 221000 112838 112838 POLES, ATTACHEMNTS & OTHER RENTAL 221000 26250 2443 23807 22618293 305559 305559 21101 6638 14463 14463 14463 48854 43201 5653 5653 GENERATION & TRANSMISSION AND OTH 900099 788858 788858 INTERNET, LD, PHONE AND DTV 517000 489755 489755 OTHER CAPITAL CREDITS 900099 64234 64234 8557 8557 1351404 24295372 23456135 495408 343829 X 2240710 396264 1247267 1554906 COST OF POWER 13630880 DISTRIBUTION - OPERATIO 2382116 ADMINISTRATIVE AND GENE 1372755 UNRELATED BUSINESS EXPE 559040 911434 24295372 202107 333966 1650289 2456216 391725 410571 1582 518 580020 661189 23990 37776 58297133 19280769 39300776 39016364 10071320 10780722 2021015 2177887 54242824 55875209 3047511 3233600 38350 29069 28594723 28725664 3272628 3280369 34953212 35268702 X 0 0 0 0 19289612 20606507 19289612 20606507 54242824 55875209 X 0 1316895 X X 0 1 X 1 0 151360 151360 1592596 1017700 574896 3956739 2718047 1238692 52596438 15545022 37051416 39016364 CAPITAL CREDITS OTHER COOP ORGANIZATIONS 8843690 C MEMBERSHIP FEES 1225 C CFC CAPITAL TERM CERTIFICATES 1034304 C MINNESOTA RURAL ELECTRIC TRUST 30608 C ECONOMIC DEVELOPMENT PROJECTS 553153 C INVESTMENT IN INTERNET & LD EQUIP, NET 22152 C MINNESOTA COMMUNITY CAPITAL FUND 50000 C CASH SURRENDER VALUE OF LIFE INSURANCE 245590 F 10780722 CUSTOMER ENERGY PREPAYMENTS 181275 PENSION PLAN BENEFIT OBLIGATIONS 1935527 DEFERRED COMPENSATION PLAN 385000 SALES TAX REFUND 188378 UNCLAIMED PROPERTY 178436 INSTALLATION COSTS - METERS & TRANSFORMERS 70224 OTHER DEFERRED CREDITS 11439 CUSTOMER DEPOSITS 330090 3280369 X 24295372 0 24295372 0 24295372 22054662 0 22054662 2240710 2240710 24295372 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: INCOME TAXES - THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE; HOWEVER, THE COOPERATIVE IS SUBJECT TO INCOME TAX FROM INCOME DERIVED FROM SOURCES THAT ARE NOT RELATED TO ITS EXEMPT PURPOSE. FOR THE YEARS ENDING DECEMBER 31, 2012 AND 2011, THE PROVISION FOR INCOME TAXES WAS $0 AND $13,134, RESPECTIVELY. THE COMPANY'S POLICY IS TO EVALUATE THE LIKELIHOOD THAT ITS UNCERTAIN TAX POSITIONS WILL PREVAIL UPON EXAMINATION BASED ON THE EXTENT TO WHICH THOSE POSITIONS HAVE SUBSTANTIAL SUPPORT WITHIN THE INTERNAL REVENUE CODE AND REGULATIONS, REVENUE RULINGS, COURT DECISIONS AND OTHER EVIDENCE. IT IS THE OPINION OF MANAGEMENT THAT THE COOPERATIVE HAS NO SIGNIFICANT UNCERTAIN TAX POSITIONS THAT WOULD BE SUBJECT TO CHANGE UPON EXAMINATION. THE FEDERAL INCOME TAX RETURNS OF THE COOPERATIVE ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS PAID (ALLOCATED) 2,240,710. X X 0 0 0 RALPH MYKKANEN 160065 0 0 0 2572 0 81251 0 0 0 243888 0 0 0 DEBORAH SCHULTZ 95301 0 0 0 0 0 45842 0 10671 0 151814 0 0 0 GREAT RIVER ENERGY DENNIS LAMKE REPRESENTS THE COOPERATIVE ON GREAT RIVER ENERGY'S BOARD. 13630880 PURCHASE OF WHOLESALE POWER 0 FORM 990, PART VI, SECTION A, LINE 6 MEMBER OWNED ELECTRIC COOPERATIVE FORM 990, PART VI, SECTION A, LINE 7A WE ARE A COOPERATIVE. BOARD MEMBER POSITIONS COME UP FOR ELECTION EVERY 3 YEARS. ALL MEMBERS ARE ELIGIBLE TO VOTE. THE BOARD IS AUTHORIZED TO FILL A POSITION WHEN VACATED DURING THE YEAR. FORM 990, PART VI, SECTION A, LINE 7B WHERE APPLICABLE, I.E. CHANGES IN ARTICLES OF INCORPORATION BY-LAWS, DISSOLUTION OF COOPERATIVE, ETC. ALL MEMBERS ARE ELIGIBLE TO PARTICIPATE IN THIS DECISION. FORM 990, PART VI, SECTION B, LINE 11 A DRAFT COPY OF THE 990 WAS PROVIDED TO EACH BOARD MEMBER. THIS WAS REVIEWED BY THE FINANCIAL MANAGER WITH THE BOARD AT THE JULY BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 15 THE WAGE AND SALARY PLAN USED FOR ALL OF THE NON-UNION EMPLOYEES, INCLUDING THE MANAGEMENT TEAM, IS BASED ON SURVEY DATA PROVIDED BY NRECA FOR SIMILAR POSITIONS OF OTHER RURAL ELECTRIC COOPERATIVES IN THE U.S. THE PROCESS USED HAS BEEN APPROVED BY THE BOARD AND IS DOCUMENTED IN POLICY. THE OVERALL PLAN IS REVIEWED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 POLICY 109 PROVIDES GUIDELINES FOR REQUESTING COOPERATIVE RECORDS. WHERE APPLICABLE A WRITTEN REQUEST IS REQUIRED. ESTIMATED ANNUAL INCREASE IN ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN: FORM 990, PART VII, SECTION A, LINE 1A: INCLUDED IN PART VII, SECTION A, LINE 1A, COLUMN F, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THIS AMOUNT IS AN ESTIMATE OF THE INCREASE OF THE VALUE OF THE PLAN AND IS NOT A CURRENT YEAR EXPENSE OF THE COOPERATIVE. THE AMOUNT OF CURRENT YEAR EXPENSE RECOGNIZED BY THE COOPERATIVE FOR PURPOSES OF FORM 990 PART IX IS DETERMINED BY REFERENCE TO THE AMOUNT OF CURRENT YEAR EXPENSE REQUIRED TO BE RECOGNIZED FOR G.A.A.P. PURPOSES AND IS DEFINED BY THE COOPERATIVE AS ITS NET PERIODIC PENSION COST. STATEMENT OF FUNCTIONAL EXPENSES: FORM 990, PART IX AS REQUIRED BY FORM 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI AND ON SCHEDULE D PARTS XI AND XIII. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: OTHER COMPREHENSIVE LOSS -376,343. RETIREMENT OF CAPITAL CREDITS -547,472. PATRONAGE DIVIDENDS PAID (ALLOCATED) 2,240,710. FINANCIAL STATEMENT AUDIT FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSEEING THE AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. MILLE LACS ELECTRIC COMMUNITY TRUST PO BOX 230 AITKIN MN 56431 411902846 COMMUNITY TRUST MN 501(C)(3) LINE 7 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 MILLE LACS ELECTRIC COMMUNITY TRUST R 59738 CASH DISTRIBUTED