2012-07-12T08:44:47-05:00 2011-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH STREET PO BOX 5125 SIOUX FALLS SD 571175125 990 2011-01-01 410548360 SOUTH CENTRAL ELECTRIC ASSOCIATION SOUT 5073753164 BOX 150 ST JAMES MN 56081 RONALD HORMAN 5073753164 2012-06-26 1 LAURIE HANSON P00851848 6053391999 2012-06-26 2011 2016-02-24 21:20:13Z RONALD HORMAN BOX 150 ST JAMES MN 56081 16634259 0 X WWW.SOUTHCENTRALELECTRIC.COM X 1937 MN PROVIDING ELECTRICITY TO MEMBERS OF THE COOPERATIVE. 7 6 27 0 167253 124756 0 0 15665096 16535884 41100 32179 -12887 -8702 15693309 16559361 0 0 0 570336 2380164 2505502 0 0 0 12588474 13303613 14968638 16379451 724671 179910 43099274 46237332 27465755 30242593 15633519 15994739 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 3,915 MEMBERS AND REPLACED 76 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 1 0 0 0 0 0 0 0 0 0 1 86 0 1 27 1 1 1 0 0 0 0 0 0 15921711 74903 0 X 7 6 0 0 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 20.00 X X 14529 0 0 BRUCE FALK 29.00 X X 13724 0 0 BRENT IMKER 35.00 X X 15049 0 0 RICHARD JOHNSON 17.00 X X 13934 0 0 WILBERT SIEG 18.00 X 14284 0 0 RON JORGENSON 18.00 X 14214 0 0 MICHAEL MIEST 9.00 X 13047 0 0 THOMAS MALONE 25.00 X 201833 0 64174 JEFF MUELLER 43.00 X 87690 0 37527 388304 0 101701 1 0 1 0 MASTEC INC PO BOX 277181 ATLANTA GA 30384 UNDERGROUND LINE CONSTRUCTION 649699 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE ROAD PAYNESVILLE MN 56362 OVERHEAD LINE CONSTRUCTION 334037 CARR'S TREE SERVICE INC PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING 145297 3 SALE OF POWER 221000 15881364 15881364 CAPITAL CREDITS 221000 487532 487532 EQUITY EARNINGS 230000 150113 170848 -20735 OTHER NON-OPERATING 900099 16875 16875 16535884 32179 32179 66196 74898 -8702 -5107 -3595 16559361 16380664 167253 11444 570336 486797 1574438 342953 101314 1124487 1417585 COST OF POWER 9482582 ADMIN & GENERAL 1116641 DISTRIBUTION-OPERATIONS 980989 DISTRIBUTION-MAINTENANC 902809 -1721480 16379451 288738 142469 3028139 3101628 676594 521506 1094594 953656 517583 523628 44333498 10758685 30533209 33574813 1775620 1806519 5179592 5607908 5205 5205 43099274 46237332 2397428 2610347 19863468 26454153 4650000 600000 554859 578093 27465755 30242593 X 0 0 0 0 15633519 15994739 15633519 15994739 43099274 46237332 X 179910 181310 X 0 1 0 X 0 27757 27757 1277339 415203 862136 43028402 10343482 32684920 33574813 GREAT RIVER ENERGY 4291654 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 639159 C COOPERATIVE TELEVISION ASSOCIATION OF SOUTHERN MINNESOTA 349706 C EAST RIVER 63615 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 1726 C RURAL ELECTRIC SUPPLY COOPERATIVE 178566 C FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE 43408 C OTHER INVESTMENTS 40074 C 5607908 CUSTOMER DEPOSITS 74015 DEFERRED CREDITS 24214 ACCUMULATED PROVISION FOR PENSION BENEFITS 479864 578093 16559361 16379451 179910 181310 181310 361220 16559361 0 16559361 0 16559361 15809115 0 15809115 570336 570336 16379451 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ASSOCIATION ADOPTED THE PROVISIONS OF FASB 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. AS OF BOTH THE DATE OF ADOPTION, AND AS OF DECEMBER 31, 2011, THERE WAS NO UNRECOGNIZED TAX ACCRUAL. 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 2008. PART XI, LINE 8 - OTHER ADJUSTMENTS: RETIREMENT OF CAPITAL CREDITS -427,512. CHANGE IN MEMBERSHIP ACCOUNTS 25. GAIN ON RETIRED CAPITAL CREDITS 38,461. ALLOCATION OF 2011 MARGINS TO MEMBERS IN 2012 570,336. TOTAL TO SCHEDULE D, PART XI, LINE 8: 181,310. PART XIII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2011 MARGINS TO MEMBERS IN 2012 570,336. X X 0 0 0 THOMAS MALONE 198329 0 0 0 3504 0 60657 0 3516 0 266006 0 0 0 SUPPLEMENTAL INFORMATION PART III THOMAS MALONE'S COMPENSATION IS PAID BY SOUTH CENTRAL ELECTRIC ASSOCIATION AND 50% OF HIS GROSS WAGES ARE REIMBURSED BY REDWOOD ELECTRIC COOPERATIVE THROUGH A SHARED MANAGEMENT AGREEMENT. GREAT RIVER ENERGY BOARD MEMBER BRUCE FALK SERVES ON BOARD OF DIRECTORS FOR GREAT RIVER ENERGY 9474501 PURCHASE OF ELECTRICITY 0 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 2009 FOR THOMAS MALONE. 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: RETIREMENT OF CAPITAL CREDITS -427,512. CHANGE IN MEMBERSHIP ACCOUNTS 25. GAIN ON RETIRED CAPITAL CREDITS 38,461. ALLOCATION OF 2011 MARGINS TO MEMBERS IN 2012 570,336. TOTAL TO FORM 990, PART XI, LINE 5: 181,310. COMPENSATION OF GENERAL MANAGER FORM 990 PART VII SECTION A: COMPENSATION OF OFFICERS THE GENERAL MANAGER IS PAID BY SOUTH CENTRAL ELECTRIC ASSOCIATION FOR SERVICES PERFORMED FOR THIS ORGANIZATION AS WELL AS FOR SERVICES AS GENERAL MANAGER PERFORMED FOR REDWOOD ELECTRIC COOPERATIVE. THIS FORM 990 INCLUDES ALL COMPENSATION PAID TO THE GENERAL MANAGER FOR SERVICES RENDERED TO BOTH ORGANIZATIONS. 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.