2023-07-10T13:39:47-07:00 2022-12-31 990 2022-01-01 910143426 BENTON RURAL ELECTRIC ASSOCIATION BENT 5097862913 PO Box 1150 Prosser WA 99350 Lori Cotsford Financial Services Assistant 5097862913 2023-06-15 1 1 11 0 AAL2 2022 2023-04-26 12:10:37Z Ryan Redmond 402 7th Street Prosser WA 99350 46298877 0 X www.bentonrea.org X 1937 WA Distribution of Electricity to Rural Cooperative members. 8 8 80 0 1186462 0 0 0 42716855 44968141 104651 144274 1423440 1186462 44244946 46298877 0 0 4663542 3573055 2307938 2550225 0 0 0 37273466 40175597 44244946 46298877 0 0 100163870 99959679 13897401 12827032 86266469 87132647 Provide safe and reliable electricity at the lowest possible cost to the cooperative membership. 0 0 The Benton Rural Electric Association (Benton REA) is a not for profit member owned electric cooperative. It has approximately 11748 member/owners to whom it delivers electricity through its distribution system. The sale and distribution of electric service is the main program service. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 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 0 0 0 1 137 0 1 80 1 1 1 0 0 0 0 45167868 1002397 0 0 0 X 8 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Steve Catlow 5097862913 Benton Rural Electric Association 402 7th Street Prosser WA 99350 Michael Bradshaw General Manager 40 0 X 391102 0 52608 Derek Miller Engineering Manager 50 0 X 260401 0 56441 Jeff Bastow Information Technology Manager 40 0 X 253961 0 55695 Steven Catlow Vice President of Finance 40 0 X 253607 0 53964 Troy Berglund Vice President of Member Services 50 X 212473 0 53726 Christopher Hill Line Foreman 58.00 0 X 209251 0 48618 Larry Hall Journeyman Lineman 53.00 0 X 177195 0 48974 Nicholas Pryor Distribution Engineer 45 0 X 177502 0 48635 Jeff Ekrut Operations Manager 40 0 X 109582 0 2845 Michael Freepons Vice President 5 0 X X 18335 0 291 Bob Evans President 5.0 0 X X 12635 0 189 Ron Johnson Trustee 4.0 0 X 10545 0 257 Tim Grow Trustee 10 0 X 10355 0 273 Catherine Russell Secretary/Treasurer 3.5 0 X X 9690 0 257 Scott Fisher Trustee 4 0 X 8930 0 257 Connie Krull President 4 0 X X 6175 0 214 Buddy Treadway Trustee 4 0 X 2945 0 48 Daniel Plung Trustee 3 0 X 2185 0 64 2126869 0 423356 37 0 1 0 Palouse Power LLC PO Box 356 Quincy WA 98848 Contract Labor 681393 Boyd's Tree Service 6350 W Brinkley RD Suite 120 Kennewick WA 99338 Tree Trimming 485699 Tri-State Machinery Inc PO Box 103 Prosser WA 99350 Fabrication 675499 Valley Transformer INC PO Box 35 Otis Orchards WA 99027 Transformer Repair 163588 Transgard LLC 1000 Vogelsong RD York PA 17404 Contract Labor-Bird Lasers 204215 9 0 Sale of Electricity 221000 44839529 44839529 0 0 Pole Rental 531390 128612 0 0 128612 0 0 0 0 44968141 115579 0 0 115579 0 0 0 0 0 0 0 0 0 0 0 28695 0 0 0 28695 28695 28695 0 0 Internet Service Provider 517000 1186462 0 1186462 0 0 0 0 0 1186462 46298877 44868224 1186462 244191 3573055 2550225 1825 2962314 Purchased Power 23860339 Operations and Maintenance 6613773 Customer Accounts Service 2298940 Administration and General 2230545 2207861 46298877 0 0 0 2703034 1957111 8350000 1240000 3854226 4908448 3787535 3695526 250349 218115 134258584 48743235 78647990 85515349 2570736 2425130 100163870 99959679 8093068 7885486 715278 631945 5089055 4309601 13897401 12827032 X 0 0 2672044 3760080 83594425 83372567 86266469 87132647 100163870 99959679 X 0 0 0 0 0 866178 X 0 1 X 1 0 0 1480703 1480703 0 2591823 1301289 1290534 0 0 0 0 9373300 0 7574285 1799015 120812758 0 39867661 80945097 85515349 Deferred Credits 3455419 Deferred Compensation 536254 Retired Managers Obligation 128239 Retiree Sick Leave Conversion 189689 4309601 X 46298877 0 0 0 0 0 46298877 0 0 0 46298877 42725822 0 0 0 0 0 42725822 0 3573055 3573055 46298877 Schedule D, Part X, Line 2 The Cooperative is exempt from all federal and state income taxes under section 501(c)(12) of the Internal Revenue Code while functioning for the benefits of its members. The Cooperative adopted Accounting Standards Codification (ASC) 740-10, relating to accounting for uncertain tax positions. The Cooperative does not have any uncertain tax positions. Schedule D, Part XII, Line 4b To conform to the 2011 990 change in section IX line 4: The Cooperative reported year end margins as an expense in section IX line 4. All margins ae annually allocated to the membership based on their patronage. The amount was reported as net margins on the audited financial statements. To reconcile the audited financials to the amount reported in the 990 we have shown the net margins on line4b of Part XII. 0 0 0 Michael Bradshaw General Manager 320389 0 70713 0 0 0 23847 0 28761 0 443710 0 Derek Miller Engineering Manager 201659 0 58742 0 0 0 22164 0 34277 0 316842 0 Jeff Bastow Information Technology Manager 198715 0 55246 0 0 0 21556 0 34139 0 309656 0 Steven Catlow Vice President of Finance 198435 0 55172 0 0 0 19922 0 34042 0 307571 0 Troy Berglund Vice President of Member Services 185655 0 26818 0 0 0 19744 0 33982 0 266199 0 Christopher Hill Line Foreman 209251 0 0 0 0 0 15013 0 33605 0 257869 0 Nicholas Pryor Distribution Engineer 144264 0 33238 0 0 0 14933 0 33702 0 226137 0 Larry Hall Journeyman Lineman 177195 0 0 0 0 0 15324 0 33650 0 226169 0 Schedule J, Part I Most Rural Electric Cooperatives in the nation offer a defined benefit pension plan program which guarantees that an employee will receive, upon reaching their normal retirement date, a defined pension benefit based on years of service and a percentage of salary. The Benton Rural Electric Association (Benton REA) chose not to implement the defined benefit retirement program for their employees due to the typical high cost. However, to remain competitive in the job market and to retain and recruit for professional positions, Benton REA identified key positions and developed a program to supplement the company's 401K retirement program for these positions. The individuals listed on the Form J as officers and highly compensated employees represent employees within these key positions. As such they receive as part of their compensation; taxable bonuses paid every year that are paid out through a recruitment and retention program in lieu of company contributions to the otherwise expensive defined benefit programs. The recruitment and retention program ends for the individual employees, if they leave the company for any reason including retirement. Form 990, Part I, Line 14 To comply with the 2011 change to Part IX #4 "patronage dividends paid by section 501 (c) (12) organization to their members", we have included the Cooperatives year ending net margins in the Statement of Functional Expenses as benefits being paid to members. GAAP does not recognize this as an expense but is being reported as such to comply with the noted change. Pursuant to the Articles and Bylaws of the Cooperative, we fully allocate previous year ending margins to the individual Patronage Capital accounts of the membership. Form 990, Part VI, Section A, Line 6 The organization is an electric distribution cooperative consisting of approximately 11,748 members who purchase electricity from the cooperative, and each has a Patronage Capital (equity) account based upon electrical usage. Form 990, Part VI, Section A, Line 7a The members elect the board of trustees which make up the governing body. The members approve the articles of incorporation and any changes thereto Form 990, Part VI, Section A, Line 7b The members elect the board of trustees which make up the governing body. The members approve the articles of incorporation and any changes thereto. Form 990, Part VI, Section B, Line 11b The governing body did receive a copy of the 990 for review before it was filed. After the financials were audited the 990 was reviewed by the governing body at the regular May, 2023 monthly board meeting. The Cooperatives independent auditors also received a copy of the 990 and it was reviewed by them before mailing. Form 990, Part VI, Section B, Line 12c The Cooperative requires in February an annual survey for the prior year to be completed by all Trustees, Officers, Key Employees, and Highly Compensated to disclose any potential conflicts of interest that may have existed. Pursuant to the corporation bylaws section 3.04.3 (a): In all circumstances, Trustees are under a continuing obligation to disclose to the full Board of Trustees any situation that presents the possibility of a conflict or disparity of interest either directly or indirectly between them and the Association. Form 990, Part VI, Section B, Line 15 Annually the cooperative participates in a regional survey to determine fair and competitive compensation of all non-union employees as compared to other utilities which hold similar positions. The CEO, top management officers, highly compensated and key employees are among those positions in the survey. The Board of Trustees then reviews the results of the survey and determines the wage increase if any for the following year. The Fall of 2022 was the latest survey. Form 990, Part VI, Section C, Line 19 The Benton Rural Electric Association(Benton REA) is a not-for-profit member-owned electric cooperative. As a private electric cooperative, the member owners of Benton REA have full access to financial statements, all polices and governing documents. All members receive a copy of the bylaws, which are also on the Benton REA website. Benton REA conducts an annual membership meeting, in which the annual financial statements are posted and presented to the membership. Plus, each Benton REA member receives a monthly magazine (Ruralite) that includes financial statements annually. Any margins the Benton REA has are allocated to the members who purchased electricity in that year, and those members receive a mailed notice of their allocation. A file of record is kept for each membership, which includes all allocations of margins and any patronage capital payments made to the corresponding member. Form 990, Part XI, Line 9 As part of being a not-for-profit member owned cooperative, the Benton Rural Electric allocates any margins at year end The Benton REA Board of Trustees then decides to retire all or a portion of those allocated margins. The cooperative as directed by the Board of Trustees have retired (paid to membership) a portion of the current allocated margins. This retirement results in a change to the Total Net Assets or Fund Balances ending amount. To comply with the 2011 Change to Part IX #4 we have netted the year ending margins against the retired portion of current allocated margins (3,573,055-2,706,877=866,178) this allows the cooperative to reconcile net assets for end of year 2022 line #10.