2023-09-05T08:30:42-05:00 2022-12-31 450250958 EIDE BAILLY LLP 200 E 10TH ST STE 500 SIOUX FALLS SD 571046375 990 2022-01-01 410548360 SOUTH CENTRAL ELECTRIC ASSOCIATION SOUT 5073753164 BOX 150 ST JAMES MN 560810150 RONALD HORMAN GENERAL MANAGER 5073753164 2023-08-30 1 RONALD HORMAN 999009999 1 LAURIE HANSON CPA P00851848 6053391999 2023-08-28 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z RONALD HORMAN BOX 150 ST JAMES MN 560810150 26523404 0 X WWW.SOUTHCENTRALELECTRIC.COM X 1937 MN PROVIDING ELECTRICITY TO MEMBERS OF THE COOPERATIVE. 7 7 28 0 0 0 0 0 23467330 26243271 44172 36866 -56 27656 23511446 26307793 4625 4650 1052304 1542373 2993841 3324979 0 0 0 19052413 20946050 23103183 25818052 408263 489741 80423925 79801499 54596699 52782450 25827226 27019049 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 4,587 MEMBERS (OR 5,938 METERS) AND REPLACED 22.28 MILES OF OVERHEAD LINE WITH UNDERGROUND LINE AND REPLACED 5.21 MILES OF EXISTING 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 0 0 0 0 0 0 1 1 0 0 1 219 0 1 28 1 0 0 0 0 0 25271033 509678 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X RONALD HORMAN 5073753164 PO BOX 150 ST JAMES MN 56081 X MARK SANDBERG PRESIDENT UNTIL 3/2022, DIRECTOR 14.00 X X 32600 0 0 BRENT IMKER DIRECTOR 12.00 X 24000 0 0 RON JORGENSON VP UNTIL 3/2022, PRESIDENT 8.00 X X 24600 0 0 BILL KUNZ DIRECTOR 8.00 X 22400 0 0 MIKE MIEST SECRETARY UNTIL 3/2022, VP 7.00 X X 24000 0 0 BRAD ASENDORF TREASURER UNTIL 3/2022, SECRETARY 6.00 X X 22800 0 0 MATT PETERS DIRECTOR UNTIL 3/2022, TREASURER 4.00 X X 21200 0 0 RONALD HORMAN GENERAL MANAGER 26.00 X 114030 0 72203 TYLER FLOHRS CFO 45.00 X 135164 0 54049 JEFFREY BENSON OPERATIONS MANAGER 45.00 X 119119 0 68824 JIM HALER MEMBER SERVICES MANAGER 45.00 X 104765 0 55478 GREG GIESE CREW CHIEF JOURNEYMAN LINEMAN 45.00 X 105316 0 47765 TROY DETERMAN CREW CHIEF JOURNEYMAN LINEMAN 40.00 X 108704 0 54165 ADAM JOHNSON METER FOREMAN JOURNEYMAN LINEMAN 40.00 X 108071 0 31895 966769 0 384379 16 0 1 0 KARIAN PETERSON POWER LINE PO BOX 345 MONTEVIDEO MN 56265 OVERHEAD LINE CONSTRUCTION 846834 INTEGRITY CONTRACTING INC 17827 CTY 2 SHEVLIN MN 56676 UNDERGROUND LINE CONSTRUCTION 401060 STAR ENERGY SERVICES LLC 6841 POWER LN SW ALEXANDRIA MN 56308 ENGINEERING FIRM 329629 CARR TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING (ROI CLEARING) 312077 SOUTHWOOD 2000 INC 60 PINE ST CLEMENTS MN 56224 POLE TESTING & LOCATING CONTRACTOR 125682 5 SALE OF POWER 221000 24612385 24612385 CAPITAL CREDITS 221000 1205668 1205668 EQUITY EARNINGS 230000 425218 425218 26243271 36866 36866 232267 215611 16656 16656 NONOPERATING REVENUE 900099 11000 11000 11000 26307793 26270927 0 36866 X 4650 1542373 519503 2094395 540244 170837 1353465 2888238 COST OF POWER 15096778 DISTRIBUTION-OPERATIONS 1570105 ADMIN & GENERAL 1344116 DISTRIBUTION-MAINTENANC 1003903 -2310555 25818052 4491619 452731 3613344 3434720 949996 2084214 1468103 298833 188258 89510489 29189637 58059668 60320852 27409 28474 11843674 12953201 5164 5164 80423925 79801499 3912668 2857861 3982 3869 49274242 48232985 1405807 1687735 54596699 52782450 X 0 0 0 0 25827226 27019049 25827226 27019049 80423925 79801499 X 489741 702082 X 0 1 X 1 0 0 1 X 24233 24233 1644716 721283 923433 87362686 28394109 58968577 478854 74245 404609 60320852 OTHER INVESTMENTS 40931 C FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE 166716 C SOUTHERN MINNESOTA ENERGY COOPERATIVE (SMEC) 116035 C COBANK 303581 C RURAL ELECTRIC SUPPLY COOPERATIVE 279562 C COOPERATIVE TELEVISION ASSOCIATION OF SOUTHERN MINNESOTA 405478 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 716046 C INVESTMENTS IN AFFILIATED COMPANIES 1438619 C EAST RIVER 2641096 C GREAT RIVER ENERGY 6731209 C OTHER INVESTMENTS 113928 C 12953201 CUSTOMER DEPOSITS 116663 DEFERRED CREDITS 195323 ACCUMULATED PROVISION FOR PENSION BENEFITS 1201114 LEASE LIABILITIES 174635 1687735 X 26307793 0 26307793 0 26307793 24275679 0 24275679 1542373 1542373 25818052 PART IV, LINE 2B: THE COOPERATIVE STARTED AN OPERATION ROUND UP FUND IN 2015. MEMBERS MAY CHOOSE TO ROUND-UP THEIR ELECTRIC BILLS WITH THE EXCESS AMOUNT BEING DESIGNATED TO CHARITABLE PURPOSES. DISTRIBUTIONS FROM THE FUND ARE PAID SEMI-ANNUALLY. A SEPARATE BOARD IS CHARGED WITH MAKING DISTRIBUTION DECISIONS FOR OPERATION ROUND UP. 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 XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2022 MARGINS TO MEMBERS IN 2023 1,542,373. X 1 1 X X 0 0 0 TYLER FLOHRS CFO 134792 0 0 0 372 0 50440 0 3608 0 189212 0 0 0 RONALD HORMAN GENERAL MANAGER 110332 0 300 0 3398 0 54754 0 19836 0 188620 0 0 0 JEFFREY BENSON OPERATIONS MANAGER 118252 0 0 0 867 0 64191 0 4634 0 187944 0 0 0 TROY DETERMAN CREW CHIEF JOURNEYMAN LINEMAN 106298 0 0 0 2406 0 52890 0 1275 0 162869 0 0 0 JIM HALER MEMBER SERVICES MANAGER 103704 0 0 0 1061 0 53078 0 2400 0 160243 0 0 0 GREG GIESE CREW CHIEF JOURNEYMAN LINEMAN 103246 0 0 0 2070 0 45185 0 2580 0 153081 0 0 0 PART I, LINE 1A THE CO-OP PAYS FOR THE MANAGER'S SPOUSE'S AIR FARE TO ALL MEETINGS. IF TYLER FLOHRS, LUCAS MALMGREN, JEFF BENSON, OR JIM HALER GO TO THE NRECA ANNUAL MEETING, THEIR SPOUSE'S AIR FARE IS PAID FOR BY THE CO-OP. THE SPOUSE'S AIR FARE IS ADDED TO THE EMPLOYEE'S TAXABLE INCOME. THE DIRECTORS' SPOUSE'S AIR FARE IS NOT COVERED BY THE CO-OP. SCHEDULE J, PART II, COLUMN C COLUMN C INCLUDES THE CHANGE IN ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR EACH PARTICIPANT RATHER THAN THE ACTUAL CONTRIBUTION PAID TO THE PLAN. RONALD HORMAN CHANGE IN ACTUARIAL VALUE: $49,155 CONTRIBUTION TO THE PLAN BY COOPERATIVE: $33,910 JEFFREY BENSON CHANGE IN ACTUARIAL VALUE: $61,135 CONTRIBUTION TO THE PLAN BY COOPERATIVE: $29,511 TYLER FLOHRS CHANGE IN ACTUARIAL VALUE: $46,992 CONTRIBUTION TO THE PLAN BY COOPERATIVE: $32,307 JIM HALER CHANGE IN ACTUARIAL VALUE: $50,442 CONTRIBUTION TO THE PLAN BY COOPERATIVE: $26,866 TROY DETERMAN CHANGE IN ACTUARIAL VALUE: $50,478 CONTRIBUTION TO THE PLAN BY COOPERATIVE: $24,817 GREG GIESE CHANGE IN ACTUARIAL VALUE: $42,773 CONTRIBUTION TO THE PLAN BY COOPERATIVE: $24,817 RONALD HORMAN IS A SHARED EMPLOYEE WITH ANOTHER ELECTRIC COOPERATIVE. SOUTH CENTRAL ELECTRIC ASSOCIATION'S SHARE OF RONALD'S COMPENSATION IS REPORTED IN SCHEDULE J AND FORM 990 PART VII. 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 11B 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 PRIOR TO IT BEING FILED WITH THE IRS. 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. THE GENERAL MANAGER HAS A WRITTEN EMPLOYMENT CONTRACT WITH SOUTH CENTRAL ELECTRIC ASSOCIATION. THIS PROCESS IS DONE ANNUALLY FOR RONALD HORMAN. 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, FINANCE/ADMIN MANAGER, OPERATIONS MANAGER, AND LINE SUPERINTENDENTS. 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 VII RONALD HORMAN'S COMPENSATION AND HOURS WORKED PER WEEK ARE SPLIT EVENLY BETWEEN SOUTH CENTRAL ELECTRIC ASSOCIATION AND AN UNRELATED ORGANIZATION, REDWOOD ELECTRIC COOPERATIVE. RONALD IS A COMMON LAW EMPLOYEE OF EACH ORGANIZATION. THE COMPENSATION REPORTED ON FORM 990 PART VII AND ON SCHEDULE J REPRESENTS SOUTH CENTRAL ELECTRIC ASSOCIATION'S SHARE OF RONALD'S SALARY AND BENEFITS. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 5-10 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. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -840,291. ALLOCATION OF 2022 MARGINS TO MEMBERS IN 2023 1,542,373. 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. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: 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 BY-LAWS OF THE COOPERATIVE. SOUTH CENTRAL ELECTRIC ASSOCIATION TRUST PO BOX 150 SAINT JAMES MN 56081 473559778 CHARITABLE MN 501(C)(3) LINE 7 SOUTH CENTRAL ELECTRIC ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0