2023-07-28T11:26:33-05:00 2022-12-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2022-01-01 410403745 McLeod Cooperative Power Association MCLE 3208643148 3515 11th Street East Glencoe MN 55336 Stephanie Jakel Manager of Finance 3208643148 2023-07-26 1 Stephanie Jakel 999009999 1 Lisa Chaffee CPA P00193453 7012551091 2023-07-26 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z Stephanie Jakel 3515 11th Street East Glencoe MN 55336 23178684 0 X www.mcleodcoop.com X 1935 MN To enhance the quality of life for our members and customers through effective solutions. 9 9 28 0 60030 54243 524751 0 22248358 23057439 -177667 90291 0 0 22595442 23147730 0 0 1444595 2899869 3249105 3411925 0 0 0 18116292 18965351 22809992 25277145 -214550 -2129415 80754087 80287869 49863460 49024991 30890627 31262878 To deliver energy and other services that will improve the quality of life for our customers, and to maximize customer satisfaction by delivering those services in the most friendly, safe, reliable and competitive manner possible. 0 0 Provided electric service to an average of 5,970 members in 2022. We had an increase of 14.1 miles of line during 2022. The cooperative has 2,040 miles of distribution line as of December 31, 2022. 0 0 0 0 0 0 0 1 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 0 0 0 0 0 0 1 1 0 0 1 26 0 1 28 1 1 1 0 0 0 0 24455333 299293 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Ronald Meier 3208643148 3515 11th Street East Glencoe MN 55336 X Doug Kirtz President 3.00 X X 7235 0 0 Susan Anderson Secretary Treasurer 4.00 X X 8335 0 0 Keith Peterson Director 2.00 X 4740 0 0 Joe Griebie Vice President 4.00 X X 6915 0 0 Gary Burdorf Director 3.00 X 5910 0 0 David Resch Asst. Secretary Treasurer 3.00 X X 4810 0 0 Allan Duesterhoeft Director 3.00 X 5085 0 0 Oria Brinkmeier Director 4.00 X 6165 0 0 Randy Hlavka Director 9.00 X 4945 0 0 Ronald Meier CEO 40.00 X 181561 0 96474 Stephanie Jakel Manager of Finance 40.00 X 104207 0 52262 Emerson Brady Operations Manager 40.00 X 114860 0 36185 Terry Underdahl Line Foreman 40.00 X 113275 0 78933 Craig Marti Line Foreman 40.00 X 117307 0 63507 Ryan Schuette Line Foreman 40.00 X 123111 0 60781 Jared Klein Line Worker 40.00 X 113478 0 39594 921939 0 427736 13 0 1 0 Burnham Company PO Box 1677 Monticello MN 55362 Tree Service 438042 MP Nexlevel LLC 500 County Rd 37 E Maple Lake MN 55358 Line Construction 353919 2 Sale of Electricity 221000 22609197 22609197 Capital Credits 221000 380097 380097 Arlington Contract 230000 44278 44278 Heartland K-1 812900 13763 13763 Other Supporting Revenue 221000 8115 8115 1989 1989 23057439 114651 114651 6594 30954 -24360 -24360 -24360 23147730 22997409 60030 90291 X 2899869 495817 2272050 448836 195222 1141224 2237440 UBIT Tax 5572 Cost of Power 14150978 Distribution 2384592 Administrative & Genera 1391826 -2346281 25277145 2646461 1089468 3610294 3485747 3232736 2566524 903615 1757350 545286 232108 76360793 19192936 55731956 57167857 13412397 13343946 671342 644869 80754087 80287869 3983206 3883650 276764 258612 34467 48806 43520854 42801536 2048169 2032387 49863460 49024991 X 0 0 30890627 31262878 0 0 30890627 31262878 80754087 80287869 X -2129415 2501666 X 0 1 X 1 0 0 1 X 412970 412970 10585377 527081 10058296 64416114 18665855 45750259 946332 946332 57167857 Patronage Capital 11888612 C Other Investment in Assoc. Companies 1273825 C Investment in Economic Development Project 181289 C Other Investments 220 C 13343946 Customer Deposits 130350 Accumulated Provision for Pension & Benefits 519537 Other Regulatory Liability 1382500 2032387 X 23151745 18391 18391 23133354 14376 14376 23147730 22377276 0 22377276 2899869 2899869 25277145 Part IV, Line 2b: The members of the Cooperative round up their monthly electric bill to the next dollar, unless they opt out of the program These funds collected from the membership are held in a Cooperative account until they are released to the McLeod Cooperative Power Trust. These funds are transferred directly to the McLeod Cooperative Power Trust periodically throughout the year. Funds that exist at the end of year are a result of a timing difference in the receipt of the funds and the release of them to the McLeod Cooperative Power Trust. For the year ended December 31, 2022 the account held $48,806. Part X, Line 2: The Association evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. As of December 31, 2022 and 2021, the unrecognized tax benefit accrual was zero. The Association will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XI, Line 2d - Other Adjustments: Heartland Book Income 18,391. Part XI, Line 4b - Other Adjustments: Heartland K-1 Tax Income 14,376. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated During Current Year 2,899,869. X X X 0 0 0 Ronald Meier CEO 180040 0 100 0 1421 0 30289 0 70249 0 282099 0 0 0 Terry Underdahl Line Foreman 111845 0 100 0 1330 0 43369 0 37818 0 194462 0 0 0 Ryan Schuette Line Foreman 122612 0 200 0 299 0 24597 0 38398 0 186106 0 0 0 Craig Marti Line Foreman 116777 0 200 0 330 0 31702 0 34019 0 183028 0 0 0 Stephanie Jakel Manager of Finance 103768 0 100 0 339 0 15338 0 39496 0 159041 0 0 0 Jared Klein Line Worker 113213 0 100 0 165 0 16148 0 25493 0 155119 0 0 0 Emerson Brady Operations Manager 114406 0 100 0 354 0 0 0 38727 0 153587 0 0 0 Schedule J, Part II, column C, Deferred Compensation: Included in other compensation is the estimated current year increase in the actuarial value of the defined benefit plan. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense and the increase in actuarial value for each employee is reflected in the Schedule O statement for Form 990, Part VII, column F. Form 990, Part VI, Section A, line 6 The members are all the same class. The organization is a member owned electric cooperative. Form 990, Part VI, Section A, line 7a The service territory is divided into districts. Members from that district elect their director to represent them. Directors serve a three year term. Form 990, Part VI, Section A, line 7b If changes are made to the by-laws, the changes will be voted on by the members at the annual meeting. Each member has one vote. Form 990, Part VI, Section A, line 8b There are no committees with authority to act on behalf of the Board of Directors. Form 990, Part VI, Section B, line 11b The Form 990 was reviewed by the Cooperative's CEO & Manager of Finance prior to being presented, reviewed, and approved by the Board of Directors before filing with the IRS. Form 990, Part VI, Section B, line 12c When obtaining quotes or bids for purchases or contract work, it is management's responsibility to ensure that there are no violations to this policy. The conflict of interest policy applies to the directors, officers and key employees of McLeod Cooperative Power Association, and any related individuals to the directors, officers, or key employees. It is the responsibility of the interested party to disclose any conflicts of interest. The Board interprets and enforces the conflict of interest policy. If it is determined that the policy is not being followed the individual not following the policy may be sanctioned, disqualified, and/or dismissed. In the event that a conflict may occur the interested parties abstain from voting. Form 990, Part VI, Section B, line 15 The CEO's compensation is reviewed and approved by the Board of Directors. Other officers and employees compensation is set by the CEO using the approved compensation system (NRECA's Compensate) per board policy. The Board reviews the performance of the compensation system annually. The Board uses comparability data and substantiates their decision in board minutes. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy, and financial statements are made available upon request. 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 and are not current expenses of the Cooperative. The estimated increase was as follows: Craig Marti $26,407 Terry Underdahl $38,076 Ronald Meier $13,663 Stephanie Jakel $5,029 Ryan Schuette $19,179 Jared Klein $11,217 The current year expense for this defined benefit plan was as follows: Craig Marti $18,915 Terry Underdahl $18,915 Ronald Meier $11,782 Stephanie Jakel $7,447 Ryan Schuette $18,915 Jared Klein $17,596 Form 990, Part IX, Statement of Functional Expenses, Line 24e The labor, pension, other employee benefits, and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction on line 24e in the amount of $(3,411,925). Form 990, Part XI, line 9: Patronage Capital Retirements -402,218. Heartland K-1 Tax Income -14,376. Heartland Book Income 18,391. Patronage Capital Credits Allocated During Current Year 2,899,869. McLeod Cooperative Power Trust 3515 11th Street East Glencoe MN 55336 421620470 Charitable Purposes MN 501(c)(3) Line 7 McLeod Cooperative Power Association 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 0 0