2024-07-23T16:23:47-05:00 2023-12-31 450250958 Eide Bailly LLP 4585 Coleman St Ste 200 Bismarck ND 58503 990 2023-01-01 450231058 North Dakota Association of Rural Electric Cooperatives NORT 7016636501 PO Box 727 Mandan ND 585540727 Josh Kramer Executive VP & Gen Mgr 7016636501 2024-07-19 1 Josh Kramer 999009999 1 Lisa Chaffee CPA P00193453 7012551091 2024-07-19 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z Josh Kramer PO Box 727 Mandan ND 585540727 5747920 0 X www.ndarec.com X 1958 ND Helping member cooperatives enrich the lives of their members and communities. 20 16 24 20 -160685 0 6934714 3437908 1831704 2156105 19028 78331 1780 -163974 8787226 5508370 0 0 0 0 2793043 2979104 0 0 0 1760867 2368670 4553910 5347774 4233316 160596 14788040 14878389 7472357 7397068 7315683 7481321 X Our mission is to provide member cooperatives a complete package of quality services in communications, government relations, education, safety training, professional and economic development. 0 0 Publications and Graphic Arts Services:PUBLICATIONS- Produced 12 monthly North Dakota Living magazines, including 1,440 unique local pages for 17 electric cooperatives to communicate with their members.- Produced income-generating publications, including the NDAREC/BAND Member Directory, N.D. Travel Guide, N.D. Hunting and Fishing Guide, Big Iron Guide and the Bismarck-Mandan Convention and Visitors Bureau (CVB) Guide. Secured partnership to produce a new publication in 2024, the Bottineau CVB Guide.- Disseminated monthly digital magazines to member cooperatives and digitized content for use online at www.ndliving.com.- Exceeded budgeted revenues for advertising, generating more than $600,000 to reduce the cost of delivering North Dakota Living to co-op members.- Provided education and information through print and online pieces, covering a variety of state, local and national issues, and electric industry, safety and cooperative topics important to NDAREC's membership.GRAPHIC ARTS- Created 1,825 total pages for North Dakota Living.- Produced 24 network pages for member use on electric safety, energy efficiency and usage topics.- Completed multiple design projects for member cooperatives and statewide service areas, including cooperative annual reports, newsletters, social media graphics, signs and banners, photography and more.MEDIA AND PUBLIC RELATIONS- Engaged with media for both earned and paid opportunities, including fulfilling reprint requests for stories in North Dakota Living, monthly radio ad production, statewide radio spots and interviews, and television news coverage.- Represented electric cooperatives at multiple trade shows across the state, providing valuable contact with members, businesses, partners and advertisers.NORTH DAKOTA LIVING STUDY COMMITTEE- Convened a diverse task force of directors, employees and managers to evaluate the North Dakota Living magazine, with broad participation and engagement from NDAREC member-cooperatives.- Performed a SWOT analysis to develop committee goals, objectives and a workplan, and coordinated a series of meetings with numerous presentations and information shared. A final report with committee recommendations and a summary of activities will be presented to the NDAREC board in February 2024. Safety Training Services:In 2023, NDAREC delivered services to 24 members in three core areas: apprenticeship, training and safety/loss control services. Members included cooperatives, municipals, contractors and the Minot Air Force Base.APPRENTICESHIP- Administered the apprenticeship and skills improvement programs for 63 enrollees studying lineworker, meter technician and substation curriculum. Thirteen lineworkers graduated. Since 1968, NDAREC's apprenticeship programs have trained hundreds of lineworkers and meter technicians.- Submitted a plan to add a substation technician and relay technician apprenticeship program to help maintain a skilled workforce.- Supported veterans in achieving GI Bill benefits while enrolled in apprenticeship programs.TRAINING- Coordinated the 59th annual Apprenticeship, Training and Safety Conference, which attracted 265 attendees.- Provided North Dakota and Montana members with on-site training meetings, visiting 304 locations and reaching 2,891 employees.- Conducted dielectric truck testing at 33 locations in North Dakota and Montana. A total of 115 trucks were tested.- Provided specialized training in hotline work, tree trimming and grounding/bonding.SAFETY/LOSS CONTROL- Coordinated storm restoration efforts for the January ice and fog event that impacted most of the state. Aided in facilitating a presidential disaster declaration to gain access to Federal Emergency Management Agency funding.- Represented NDAREC on the State Enhanced Hazard Mitigation Team, helping identify natural hazards and risks and develop strategies to improve resiliency and accessibility to federal mitigation and recovery dollars.- Hosted a meeting for the Cooperative Regional Mutual Aid Plan team and prepared for addressing a widespread disaster.- Influenced safety through the Rural Electric Safety Achievement Program (RESAP). All North Dakota distribution cooperatives and Minnkota Power Cooperative participate in the program.- Conducted RESAP on-site observations for seven cooperatives.- Aided in the redesign of the CEO Commitment element of RESAP.- Monitored updates to regulatory and compliance standards relevant to the industry. Aided in measuring safety performance and managing loss control. Government Relations & Communication Services:GOVERNMENT RELATIONS- Monitored more than 90 bills during the 2023 legislative session. A total of 990 bills and resolutions were introduced, of which only 337 failed.- Positioned NDAREC's members to capitalize on funding opportunities available through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act. North Dakota is one of four states and two tribal nations to receive the first round of IIJA grid resiliency grants.- Contracted with Converge Strategies and coordinated efforts to put forth two proposals for federal funding opportunities.- Represented NDAREC's members in discussions about reliability, siting and retirement of resources.- Hosted the state House Republican caucus for their election of leaders and a crossover caucus in which the party identified its priorities for tax relief.- Coordinated Rural Electric Political Action Committee (REPAC) meetings and provided support to statewide and legislative candidates who support rural electric issues.- Facilitated North Dakota's participation in NRECA's Legislative Conference and the fall fly-in in Washington, D.C.- Continued positioning NDAREC as a resource and leader in discussions regarding electric vehicles and charging infrastructure.- Met with North Dakota's delegation multiple times during the August recess, highlighting the need for permitting reform, passage of a farm bill, and supply chain and EPA regulatory challenges.COMMUNICATIONS- Provided communications assistance to all NDAREC service areas.- Consistently reached goals of the 2023 NDAREC Strategic Communications Plan and assisted each service area with implementation while monitoring progress.- Sponsored a communications workshop, which featured presentations on graphic design and digital communications strategies.- Communicated co-op messaging through social media pages, including the NDAREC and North Dakota Living Facebook and X pages, websites and YouTube channels.- Monitored and communicated information for co-op communicators concerning Touchstone Energy Cooperatives and NRECA's Straight Talk.- Worked with the media to promote issues important to electric cooperatives and their members, appearing in more than 55 news stories and interviews. Rural Development and Education & Member Services:Rural Development- Prepared successful U.S. Department of Agriculture (USDA) Rural Economic Development Loan and Grant program applications for 1173 Mall (ABLE, Inc.), Devils Lake Family Entertainment Center and Two Track Malting.- Raised funding for and launched a study encompassing a 100-mile radius of Minot to determine the feasibility of developing a multi-partner warehouse to serve rural grocers, local producers and a food bank, and identify other logical partners. The warehouse would include processing space for locally produced foods and aggregating space for all partners. Staff secured a $160,000 grant through USDA's Local Foods Promotion Program to assist with the data collection, education and organization of local foods producers in this region in an effort to connect them to the project.- Received a grant award through USDA's Rural Cooperative Development Grant program to defray the costs of operating the development center.- Partnered the North Dakota Rural Electric Cooperative Foundation with other entities in Minnesota and South Dakota in the newly established North Central Regional Food Business Center. Secured a five-year $300,000 grant through USDA for staffing the foundation's role in the Center.- Provided administrative services to the Rural Development Finance Corporation (RDFC). Since its inception, RDFC has provided 139 loans, and its revolving loan fund has grown to more than $8.4 million.- Secured a $10 million grant for RDFC through the USDA Meat Plant Intermediary Lending Program to establish a revolving loan fund to finance emerging and expanding meat plants.- Hosted the annual Rural Developers' Assembly, which featured the Montana Cooperative Development Center and their expertise in developing rural investment cooperatives.- Networked with other rural cooperative development centers to develop a pre-feasibility template for small meat plants. The template is available on our webpage.- Led an effort to create a new $1 million state-funded grant program to replicate the Rural Access Distribution Cooperative model across the state.- Secured a $50,000 grant for the start-up of Bearcat Den Daycare in Hebron and a $189,000 grant for Dakota Estates Retirement Center in Lidgerwood through an anonymous donor.- Bolstered the rural development webpage with cooperative and rural development tools and concepts.Education & Member ServicesTRAINING & PROFESSIONAL DEVELOPMENT- Developed and directed an education plan with coursework for board members, employees and employee associations. This included planning, marketing and communications; contract and fee negotiations; registration and on-site management.- Planned, coordinated and delivered seven board governance programs, 17 employee webinars and four Supervisor and Manager Development Program courses.- Directed planning and participation in the Electric Cooperative Youth Tour. The North Dakota Youth Tour, which was started with one student sponsored by NDAREC in 2003, reached its 20-year milestone in 2023. Over the years, participation has increased to include 15 of 16 distribution cooperatives. 2023 was the first year NDAREC planned and coordinated the youth leadership program without the partnership of the Montana Electric Cooperatives' Association.- Planned and delivered the Cooperative Connection orientation program for new employees and directors. Twelve NDAREC distribution members and the Innovative Energy Alliance Cooperative participated in the three-day program.MEETINGS & CONFERENCE PLANNING- Planned and facilitated virtual monthly meetings for the REC Information Technology and Cybersecurity employee user group. Planned and hosted the first conference for this user group in October 2023.- Facilitated planning sessions with the executive officers for three employee associations, resulting in two employee association meetings for member services and communications, a conference for the office managers and accountants, and a conference for engineering and operations. This included all aspects of planning, communications, contract and fee negotiations with professional trainers and industry experts; registration and on-site management.- Recruited sponsorships from NDAREC associate members, industry partners and vendors for employee association meetings, conferences and the annual meeting. This resulted in reduced bill-backs or no bill-backs to member-cooperatives. Also planned and hosted the annual Exhibitor Showcase for associate members in conjunction with the Engineering and Operations Conference in December. 0 1 1 1 0 0 0 1 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 1 0 0 1 38 0 1 24 1 1 1 0 0 0 1 1 0 0 0 X 20 16 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Brenna Ohman 7016676419 PO Box 727 Mandan ND 58554 X Robert Grant President 6.00 X X 19600 0 0 Randy Simon Vice President 2.00 X X 1750 0 0 Connie Bitz Secretary 5.00 X X 2450 0 0 Maxine Rognlien Treasurer 3.00 X X 1225 0 0 Lynn Jacobson Director 4.00 X 1400 0 0 Deon Vilhauer Director 2.00 X 2100 0 0 Tom Seymour Director 2.00 X 0 0 0 Michele Schommer Director 1.00 X 0 0 0 Carmen Essig Director 1.50 X 0 0 0 Ken Sanford Director 1.00 X 0 0 0 Rod Stockdill Director 1.00 X 0 0 0 Chad Harrison Director 1.00 X 0 0 0 David Brag Director 1.00 X 0 0 0 Lori Kittleson Director 1.00 X 0 0 0 Arnold Kainz Director 1.00 X 700 0 0 Angela Carlson Director 2.00 X 0 0 0 Troy Presser Director 1.00 X 0 0 0 Jean Brandt Director 1.00 X 1750 0 0 Les Windjue Director 2.50 X 0 0 0 David Sigloh Director 4.00 X 0 0 0 Sig Berg Director - Alternate (JulY) 0.50 X 0 0 0 Wade Harpestad Director - Alternate (March) 0.50 X 0 0 0 Dean Hummel Director - Alternate (April) 1.00 X 0 0 0 Neil Meidinger Director - Alternate (Oct) 0.50 X 0 0 0 Tim Wasem Director - Alternate (Feb/Oct) 0.40 X 0 0 0 Joel Brandvold Director - Alternate (Nov) 2.00 X 0 0 0 Roger Kudrna Director - Alternate (July) 5.00 X 0 0 0 David Straley Director - Alternate (March) 0.50 X 0 0 0 Josh Kramer Executive VP & General Mgr 42.00 X 232163 0 64993 Brenna Ohman Finance Director 40.50 X 126704 0 12629 Zac Smith Communic & Gov Rel/General 42.80 X 172792 0 21095 Loretha Capouch Rural Development Services 42.00 X 113685 0 84849 Christina Roemmich Safety Services Director 41.00 X 117741 0 35186 Pamela Clarck-Stein Education & Member Serv Director 42.00 X 103747 0 23013 Jeff Tweten Safety Instructor 42.50 X 103737 0 36746 1001544 0 278511 8 0 1 0 Forum Communications 4601 16th Ave N Fargo ND 58107 Magazine printing services 459240 Converge Strategies 50 Holbrook St Boston MA 02130 Grant writing services 110000 2 2849691 404313 183904 3437908 Magazine Revenue 541800 937846 1098531 -160685 Supporting Revenue 561499 452244 452244 Educational & Member Services 611600 327893 327893 Rural Development 611600 220895 220895 Safety Services 541900 217227 217227 2156105 74528 74528 75576 239550 -163974 -163974 -163974 3803 0 3803 3803 3803 5508370 2316790 -160685 -85643 514804 1580257 434047 287832 162164 73 32401 243958 43473 90144 198268 137027 158569 261254 361295 23190 Magazine Postage & Prin 459692 Workshops & Related Exp 260482 Vehicle Expenses 52810 Dues & Subscriptions 25371 20663 5347774 1030337 1862463 307798 29975 209066 155315 14291 37445 53470 14403173 1895280 12983944 12507893 3509 4144 215941 227258 0 23580 14788040 14878389 479852 542264 625362 714384 73724 69201 5951517 5752320 341902 295319 0 23580 7472357 7397068 X 0 0 0 0 7315683 7481321 7315683 7481321 14788040 14878389 X 160596 635 4407 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED North Dakota Rural Electric Political Action Committee PO Box 727 Mandan ND 58554 450457989 0 1845 America's Electric Cooperative Political Action Committee PO Box 718778 Philadelphia PA 19171 526147497 0 2193 1 0 0 Part I-A, Line 1: NDAREC operates a state political action committee (REPAC) in compliance with laws of the State of North Dakota, including section 16.1-08.1-03.3 of the North Dakota Century Code. NDAREC provides administrative support for REPAC by soliciting contributions to REPAC, depositing the funds in a separate and segregated account, and appointing a board to allocate the funds to candidates for state and legislative offices, NDAREC also offers its employees the opportunity to use payroll deduction for REPAC contributions. NDAREC employees also have the opportunity to contribute to a federal political action committee, the Action Committee for Rural Electrification (ACRE), organized by the National Rural Electric Cooperative Association (NRECA), under federal law. NDAREC also offers its employees the opportunity to use payroll deduction for ACRE contributions. 0 1 X 193686 193686 12824934 1069892 11755042 1007250 558712 448538 377303 266676 110627 12507893 Lease liability 23580 23580 X 6459488 0 6459488 -951118 -951118 5508370 6293850 1046498 1046498 5247352 100422 100422 5347774 Part IV, Line 2b: NDAREC holds funds for several organizations. NDAREC receives revenues for the organizations and writes checks when appropriately directed by the organization. A statement of activities and the cash balance is reported to the organizations on a regular basis. Part X, Line 2: The Association has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The Association would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Part XI, Line 4b - Other Adjustments: Magazine UBI Costs Included in Expenses for F/S -807,583. Rental Expeness Included in Expenses for F/S -239,550. Receipts from Funds Held For Others 96,015. Part XII, Line 2d - Other Adjustments: Rental Expenses Included in Revenue on 990 239,550. Magazine UBI Costs Included in Revenue on 990 807,583. Unrealized Gain/Loss on Investment in Expenses for F/S -635. Part XII, Line 4b - Other Adjustments: Disbursements from Funds Held for Others 100,422. X X X 0 0 0 Josh Kramer Executive VP & General Mgr 224389 0 0 0 7774 0 33773 0 34174 0 300110 0 0 0 Loretha Capouch Rural Development Services 107996 0 3000 0 2689 0 52979 0 33537 0 200201 0 0 0 Zac Smith Communic & Gov Rel/General 157190 0 5500 0 10102 0 21095 0 2031 0 195918 0 0 0 Christina Roemmich Safety Services Director 115011 0 2000 0 730 0 22981 0 13830 0 154552 0 0 0 Form 990, Schedule J: Compensation of officers, directors, key employees, highest compensated employees and independent contractors: included in column "c", deferred compensation is the estimated annual increase in the actuarial value of the defined benefit plan. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the association. The current year expense for this defined benefit plan and the increase in actuarial value for each employee are reported in the Schedule O statement for Form 990, Part VII, Column f. Form 990, Part VI, Section A, line 1a An Executive Committee comprised of the officers of the Association shall have all of the powers of the Board of Directors when the Board of Directors is not in session, except in respect to powers reserved by the Board of Directors itself or which may not be delegated by law to an Executive Committee. The Executive Committee shall be charged with the duty of conducting the business and operations of the North Dakota Association of Rural Electric Cooperatives, subject to the review and control of the Board of Directors. Form 990, Part VI, Section A, line 6 Voting members are member-owned, non-profit cooperatives which are operating in the state of North Dakota whose operations are consistent with the objectives of NDAREC and its voting members. Non-voting members consist of Commercial Affiliate Members and Associate Members. Form 990, Part VI, Section A, line 7a Each voting member of NDAREC elects a director and an alternate director from its board of directors, who then serves on the board of directors of NDAREC for a term of one year. The alternate director serves in the absence of the director with full power of representation. All directors, as a condition of holding office and serving in that capacity, must remain a director of that member cooperative. Form 990, Part VI, Section B, line 11b No formal process has been adopted. The Form 990 will be provided to the board of directors prior to filing with explanation of specific parts of the Form. An adequate time period will be allowed for review and questions prior to the Form 990 being filed. Form 990, Part VI, Section B, line 12c Persons covered by this policy will annually disclose or update to the President of the Board of Directors on a form provided by NDAREC their interests that could reasonably give rise to a conflict of interest, such as a list of family members, substantial business or investment holdings, and other transactions or affiliations with businesses and other organizations or those of family members. 1. Duty to Disclose In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with governing board delegated powers considering the proposed transaction or arrangement. 2. Determining Whether a Conflict of Interest Exists After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists. 3. Procedures for Addressing the Conflict of Interest a. An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. b. The chairperson of the governing board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. c. After exercising due diligence, the governing board or committee shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. d. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement. Form 990, Part VI, Section B, line 15 The Executive Committee of the NDAREC Board of Directors meets annually to review the compensation of the Executive Vice President and General Manager. They use historical information provided to them by the Finance Director, as well as information on the current salary increases for NDAREC staff and the current cost of living adjustment. The board uses survey data from the Rural Electric Statewide Managers Association to determine comparability of salary information. The board also has access to salary survey information collected by NDAREC for all the ND electric cooperatives, which includes the salaries for the coops general managers. The Executive Committee recommends the salary to the Board of Directors for their approval. The board action is documented with a "Salary Certificate and is signed by the President and Secretary of the Board of Directors, communicated to the Finance Director for payroll purposes, and filed in the personnel file. NDAREC has a wage and salary plan policy adopted by the Board of Directors. This wage and salary plan ranks (using several criteria) each job position by pay grade and pay range. The pay range consists of an entry level, a market band, and a maximum. Each year the board approves an annual adjustment to the pay ranges based on certain economic factors. The General Manager approves the annual salary for the Finance Director and all other NDAREC employees. In 2023, a compensation study was completed by an independent third party entity for employees to ensure that employee pay is adequate for the market. Form 990, Part VI, Section C, line 19 These documents are not made available to the public. Form 990, Part VII, 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. The estimated increase for Josh Kramer is $24,401, for Loretha Capouch is $48,116, for Zachary Smith is $14,588, for Christina Roemmich is $18,171, and for Jeff Tweten is $18,426. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the Association. The current year expense for this defined benefit plan was $67,229, $33,648, $43,212, $32,692, and $28,761, respectively. Form 990, Part XI, line 9: Net Change in Funds Held for Others 4,407. ND Rural Electric Political Action Committee PO Box 727 Mandan ND 585540727 450457989 Political Action Committee ND 527 N/A N/A 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0