2024-10-24T08:26:57-05:00 2023-12-31 450250958 EIDE BAILLY LLP 345 N REID PL STE 400 SIOUX FALLS SD 571037034 990 2023-01-01 410548360 SOUTH CENTRAL ELECTRIC ASSOCIATION SOUT 5073753164 BOX 150 ST JAMES MN 560810150 RONALD HORMAN GENERAL MANAGER 5073753164 2024-10-23 1 1 LAURIE HANSON CPA P00851848 6053391999 2024-10-23 2023 2024-10-15 13:58:12Z RONALD HORMAN BOX 150 ST JAMES MN 560810150 28052434 0 X WWW.SOUTHCENTRALELECTRIC.COM X 1937 MN PROVIDING ELECTRICITY TO MEMBERS OF THE COOPERATIVE. 7 7 26 0 0 0 0 0 26243271 27554392 36866 239713 27656 9996 26307793 27804101 4650 8583 1542373 2568456 3324979 3179376 0 0 0 20946050 21648039 25818052 27404454 489741 399647 79801499 93449841 52782450 64402768 27019049 29047073 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 4,612 MEMBERS ALONG 908 MILES OF OVERHEAD LINE AND 1,242 MILES OF 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 1 244 0 1 26 1 0 0 0 0 0 26824350 833505 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 RON JORGENSON PRESIDENT 5.00 X X 23400 0 0 MIKE MIEST VICE PRESIDENT 4.00 X X 20600 0 0 BRAD ASENDORF SECRETARY 6.00 X X 20400 0 0 MATT PETERS TREASURER 3.00 X X 18800 0 0 MARK SANDBERG DIRECTOR 15.00 X 30200 0 0 BRENT IMKER DIRECTOR 11.00 X 23200 0 0 BILL KUNZ DIRECTOR 5.00 X 21600 0 0 RONALD HORMAN GENERAL MANAGER 26.00 X 117263 0 63835 TYLER FLOHRS CFO 45.00 X 143116 0 37879 JEFFREY BENSON OPERATIONS MANAGER 45.00 X 137746 0 74844 LUCAS MALMGREN LINE SUPERINTENDENT 45.00 X 113228 0 27519 GREG GIESE CREW CHIEF JOURNEYMAN LINEMAN 40.00 X 110410 0 37535 MATT WINKELMAN CREW FOREMAN JOURNEYMAN LINEMAN 40.00 X 109357 0 19331 ADAM JOHNSON METER FOREMAN JOURNEYMAN LINEMAN 40.00 X 108403 0 20614 997723 0 281557 16 0 1 0 INTEGRITY CONTRACTING INC 17827 CTY 2 SHEVLIN MN 56676 UNDERGROUND LINE CONSTRUCTION 457420 CARR TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING (ROI CLEARING) 327100 STAR ENERGY SERVICES LLC 6841 POWER LN SW ALEXANDRIA MN 56308 ENGINEERING FIRM 220509 KARIAN PETERSON POWER LINE PO BOX 345 MONTEVIDEO MN 56265 OVERHEAD LINE CONSTRUCTION 105179 4 SALE OF POWER 221000 26051364 26051364 CAPITAL CREDITS 221000 1353090 1353090 EQUITY EARNINGS 230000 149938 149938 27554392 239713 239713 258329 248333 9996 9996 27804101 27564388 0 239713 X 8583 2568456 522690 1956118 530713 169855 1581910 2918010 COST OF POWER 15310309 DISTRIBUTION - OPERATIO 1702269 DISTRIBUTION - MAINTENA 1073927 CUSTOMER ACCOUNTS 355360 -1293746 27404454 452731 9131708 3434720 4113894 949996 913209 1468103 1880367 188258 148425 93016644 29672347 60320852 63344297 28474 28801 12953201 13883976 5164 5164 79801499 93449841 2857861 3005506 3869 3683 48232985 59364415 1687735 2029164 52782450 64402768 X 0 0 0 0 27019049 29047073 27019049 29047073 79801499 93449841 X 399647 1628377 X 0 1 X 1 0 0 1 X 24233 24233 1672517 739905 932612 90563638 28847349 61716289 756256 85093 671163 63344297 GREAT RIVER ENERGY 6725998 C EAST RIVER ELECTRIC POWER COOPERATIVE, INC. 3379055 C COOPERATIVE TELEVISION ASSOCIATION OF SOUTHERN MINNESOTA 445813 C RURAL ELECTRIC SUPPLY COOPERATIVE 322716 C COBANK 357252 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 715779 C SOUTHERN MINNESOTA ENERGY COOPERATIVE (SMEC) 109006 C FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE 173671 C OTHER COOPERATIVE CAPITAL CREDITS 43182 C OTHER INVESTMENTS IN ASSOCIATED COMPANIES 122947 C INVESTMENTS IN AFFILIATED COMPANIES 1488557 C 13883976 POSTRETIREMENT BENEFITS 1398541 CUSTOMER DEPOSITS 118099 DEFERRED CREDITS 361835 LEASE LIABILITIES 150689 2029164 X 27804101 0 27804101 0 27804101 24835998 0 24835998 2568456 2568456 27404454 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, 2023 AND 2022, 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 2023 MARGINS TO MEMBERS IN 2024 2,568,456. X 1 1 X X 0 0 0 JEFFREY BENSON OPERATIONS MANAGER 136265 0 0 0 1481 0 69628 0 5215 0 212589 0 0 0 RONALD HORMAN GENERAL MANAGER 112748 0 1559 0 2956 0 46479 0 19765 0 183507 0 0 0 TYLER FLOHRS CFO 142744 0 0 0 372 0 35519 0 2360 0 180995 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. CHANGE IN ACTUARIAL VALUE: - RONALD HORMAN $40,768 - TYLER FLOHRS $31,891 - JEFFREY BENSON $66,091 CONTRIBUTION TO THE PLAN BY COOPERATIVE: - RONALD HORMAN $35,921 - TYLER FLOHRS $36,727 - JEFFREY BENSON $33,055 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 -940,079. ALLOCATION OF 2023 MARGINS TO MEMBERS IN 2024 2,568,456. 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