2011-04-15T09:40:04-05:00 2010-12-31 BRADY MARTZ & ASSOCIATES PC PO BOX 1297 BISMARCK ND 585021297 990 2010-01-01 450218423 KEM ELECTRIC COOPERATIVE INC KEME 7012544666 BOX 790 LINTON ND 58552 JOHN KNOX 7012544666 2011-04-11 1 PATRICK J BROWN 7012231717 2011-04-11 2010 2016-02-24 21:20:13Z JOHN KNOX PO BOX 790 LINTON ND 58552 7036966 0 X KEMELECTRIC.COM X 1944 ND KEM ELECTRIC COOPERATIVE, INC., IS A DISTRIBUTION COOPERATIVE THAT PROVIDES ELECTRICAL ENERGY TO CONSUMERS IN THE RURAL AREAS OF FOUR SOUTH CENTRAL COUNTIES IN NORTH DAKOTA. 7 7 21 26 0 0 0 0 6427792 6892392 109199 115168 -1964 -3465 6535027 7004095 0 0 0 0 1169938 1361945 0 0 0 4592002 4832863 5761940 6194808 773087 809287 22944004 24439679 13570751 14619977 9373253 9819702 THE PURPOSE OF KEM ELECTRIC IS TO MAKE ITS MEMBERS MORE PRODUCTIVE AND INCREASE THEIR QUALITY OF LIFE. THIS WILL BE ACCOMPLISHED BY : PROVIDING SAFE, RELIABLE, QUALITY ELECTRIC SERVICE; PROVIDING OTHER SERVICES THAT WILL BENEFIT THE MEMBERSHIP 0 0 RURAL ELECTRIC POWER COOP SUPPLYING POWER TO RURAL MEMBERS 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 65 0 21 1 0 0 0 0 0 0 0 0 0 6807841 192660 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ROBERTA NAGEL 7012544666 107 S BROADWAY LINTON ND 58552 MILTON BRANDNER 2.00 X X 9000 0 0 ADOLPH FEYEREISEN 1.00 X 8000 0 0 DEAN HUMMEL 1.00 X 6700 0 0 CARMEN ESSIG 1.00 X X 7600 0 0 DEAN DEWALD 2.00 X X 9000 0 0 CARTER VANDER WAL 2.00 X 8200 0 0 VICTOR WALD 2.00 X 4100 0 0 KENNETH BERRETH 11 - 21 40.00 X 20063 0 12029 ROBERTA NAGEL 45.00 X 65519 0 2476 JOHN KNOX 21 - 1231 65.00 X 87380 0 38170 225562 0 52675 0 0 0 0 JB CONSTRUCTION PO BOX 397 LINTON ND 58552 CONSTRUCTION SERVICES 757878 MICHELS POWER OBX 1719 FOND DU LAC WI 54936 CONSTRUCTION SERVICES 557174 GREAT LAKES LINE BUILDERS N2023 GREENVILLE DRIVE GREENVILLE WI 54942 CONSTRUCTION SERVICES 303946 CASS COUNTRY ELECTRIC COOPERATIVE 4100 32ND AVE S FARGO ND 58104 CONSTRUCTION SERVICES 177002 4 SALE OF POWER 221000 6892392 6892392 6892392 115168 115168 29406 32871 -3465 -3465 7004095 6888927 0 115168 278237 906443 177265 13186 12048 18049 678577 923747 COST OF POWER 2917670 DISTRIBUTION/TRANMISSIO 836860 ADMINISTRATIVE & GENERA 283041 MISCELLANEOUS 10584 SALARIES & BENEFITS REP -860899 6194808 415520 180367 618119 996271 713604 708196 42193 29513 398036 533027 5650 5665 35559964 16867140 17445281 18692824 3269997 3220613 35604 73203 22944004 24439679 756584 668347 12421153 13617167 393014 334463 13570751 14619977 X 0 0 0 0 9373253 9819702 9373253 9819702 22944004 24439679 X 809287 -362838 X X 0 1 1 X 1 1 35559964 16867140 18692824 18692824 TERM CERTIFICATES-NATIONAL RURAL UTILITIES CFC 119545 C PATRONAGE CREDITS-POWER/SUPPLIERS 1327452 C FEDERATED RURAL ELECTRIC INSURANCE-STOCK 55787 C RURAL ECONOMIC DEVELOPMENT LOANS 644074 C ENERGY RESOURCE CONSERVATION LOANS 58919 C VARIOUS 14836 C TERM CERTIFICATES-BASIN ELECTRIC POWER COOPERATIVE 1000000 C 3220613 ACCRUED EXP. & DEFERRED CHARGES 100164 DEFERRED POWER COST REFUND 234299 334463 7004095 6194808 809287 -362838 -362838 446449 7036966 32871 32871 7004095 0 7004095 6227679 32871 32871 6194808 0 6194808 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE COOPERATIVE IS EXEMPT FROM INCOME TAX UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. THE COOPERATIVE'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 XI, LINE 8 - OTHER ADJUSTMENTS: RETIREMENT OF CAPITAL CREDITS -375,553. GAIN OF CAPITAL CREDITS TO ESTATES 12,715. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF MERCHANDISING-PART VIII LINE 10B 32,871. PART XIII, LINE 2D - OTHER ADJUSTMENTS: COST OF MERCHANDISING-PART VIII LINE 10B 32,871. FORM 990, PART VI, SECTION A, LINE 6 INDIVIDUALS AND ENTITIES RECEIVING ELECTRICAL POWER FROM THE COOPERATIVE ARE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS ELECT ALL BOARD OF DIRECTORS AT THE ANNUAL MEETING. FORM 990, PART VI, SECTION A, LINE 7B AT THE ANNUAL MEETING, ALL BYLAW CHANGES MUST BE APPROVED BY THE MEMBERS AND THE MEMBERS MAY VOTE ON MOTIONS CONCERNING THE OPERATIONS OF THE COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 11 A COMMITTEE COMPILED OF THE BOARD OF DIRECTORS CHAIRMAN, VICE CHAIRMAN, SECRETARY-TREASURER WILL REVIEW FORM 990 EACH YEAR BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C AT EACH BOARD METTING, ANY DIRECTOR WHO ACTUALLY OR POTENTIALLY IS INVOLVED WITH A SELF-DEALING MATTER, SHALL MAKE FULL DISCLOSURE OF THE INTEREST, SHALL NOT VOTE ON THE MATTER, AND SHALL LEAVE THE BOARD ROOM DURING THE DISCUSSION OF THE MATTER UNLESS REQUESTED TO STAY IN THE BOARD ROOM DURING THE DISCUSSION. FORM 990, PART VI, SECTION B, LINE 15 CEO/EXECUTIVE DIRECTOR: A QUESTIONAIRE TO REVIEW THE PERFORMANCE OF THE GENERAL MANAGER/CEO IS COMPLETED BY THE BOARD OF DIRECTORS EACH YEAR, WHICH IS COMPILED BY THE ATTORNEY. PROPER COMPENSATION IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS AND RECORDED APPROPRIATELY IN THE BOARD MINUTES EACH YEAR. OTHER KEY EMPLOYEES: THE BOARD OF DIRECTORS SET UP A UNION NEGOTIATION COMMITTEE COMPILED OF 3 BOARD MEMBERS. THE COMMITTEE MEETS AS NEEDED AND NEGOTIATES WAGES FOR THE UNION EMPLOYEES. THE BOARD NEGOTIATION COMMITTEE THEN PRESENTS THEIR PROPOSAL TO THE FULL BOARD OF DIRECTORS, WHO THEN APPROVES OR DISAPPROVES THE WAGE INCREASE, WHICH IS DOCUMENTED IN THE BOARD MINUTES. ALL OTHER NON-UNION WAGES ARE GENERALLY BASED UPON UNION RAISES. THE BOARD OF DIRECTORS ARE INFORMED OF ALL WAGE INCREASES. FORM 990, PART VI, SECTION C, LINE 19 BYLAWS & ARTICLES OF INCORPORATION ARE MAILED TO EACH NEW MEMBER AND ARE AVAILABLE UPON REQUEST. CONFLICT OF INTEREST POLICY IS AVILABLE UPON REQUEST. FINANCIAL STATEMENTS ARE PUBLISHED EACH YEAR IN THE ANNUAL REPORT, AND ARE AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: RETIREMENT OF CAPITAL CREDITS -375,553. GAIN OF CAPITAL CREDITS TO ESTATES 12,715. TOTAL TO FORM 990, PART XI, LINE 5: -362,838. THERE WAS NO CHANGE IN THE OVERSIGHT PROCESS IN THE CURRENT YEAR. THE FULL BOARD MEETS WITH THE AUDITOR AND REVIEWS THE AUDITED FINANCIAL STATEMENTS. OPERATION ROUNDUP 107 S BROADWAY LINTON ND 58552 481299784 CHARITABLE CONTRIBUTIONS TO LOW INCOME AND NEEDY FAMILIES ND 501(C)(3) LINE 7 N/A 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0