2024-11-06T15:51:04-06:00 2023-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2023-01-01 410252540 FEDERATED RURAL ELECTRIC FEDE 5078473520 77100 US HWY 71 JACKSON MN 56143 SCOTT REIMER GENERAL MANAGER 5078473520 2024-11-04 1 1 DAVID HOLT P00014251 7017754685 2024-11-01 2023 2024-10-15 13:58:12Z SCOTT REIMER 77100 US HWY 71 JACKSON MN 56143 44054869 0 X HTTPS://WWW.FEDERATEDREA.COOP/ X 1935 MN TO DISTRIBUTE ENERGY AND SERVICES IN A COST EFFECTIVE, RELIABLE, AND EFFICIENT MANNER. 7 7 30 0 1663671 62784 0 0 39596269 41594550 127382 338641 843018 1702979 40566669 43636170 17859 19296 2321232 2104231 2952009 3027730 0 0 0 34961421 37085123 40252521 42236380 314148 1399790 81081160 82382527 35807587 35156334 45273573 47226193 FEDERATED RURAL ELECTRIC ASSOCIATION IS COMMITTED TO PROVIDING SAFE, RELIABLE, AND AFFORDABLE ENERGY AND OTHER ESSENTIAL SERVICES TO OUR MEMBER-OWNERS, WHILE ENHANCING THE LIVES OF THOSE WE SERVE. 0 0 TO PROVIDE RELIABLE ELECTRIC SERVICE TO OVER 5,275 MEMBERS. WITHOUT THE FORMATION OF THIS COOPERATIVE, THESE MEMBERS WOULD NOT HAVE RECEIVED ELECTRIC SERVICE IN 1935. SINCE THAT TIME WE HAVE CONSISTENTLY PROVIDED SERVICE TO ALL RURAL CUSTOMERS IN JACKSON AND MARTIN COUNTIES IN MINNESOTA AS WELL AS SOME SMALLER TOWNS. IN ADDITION, WE PROVIDE ELECTRIC SERVICE TO BOUNDARY CUSTOMERS OF 11 ADDITIONAL COUNTIES INCLUDING APPROXIMATELY 60 MEMBERS IN IOWA. THE COOPERATIVE'S ACQUISITION OF A FIXED INTERNET COMPANY WITH 1,100 CUSTOMERS IN 2021 WAS THE START OF THE BROADBAND DIVISION "FEDERATED BROADBAND." INTERNET SERVICES WERE PROVIDED TO APPROXIMATELY 1,600 CUSTOMERS BY THE END OF 2023. THE COOPERATIVE WAS AWARDED TWO BROADBAND GRANTS TO BUILD FIBER TO THE HOME AND HELP SERVICE AREAS WITHIN AND OVERLAPPING THE ELECTRIC SERVICE TERRITORY. 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 1 103 0 1 30 1 1 1 0 0 0 0 41985777 1722106 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 1 0 X SCOTT REIMER 5078473520 77100 US HWY 71 JACKSON MN 56143 DAVID HANSEN PRESIDENT 6.00 X X 15900 0 0 DAVID MESCHKE VICE PRESIDENT 4.00 X X 12600 0 0 DARVIN VOSS SECRETARY/TREASURER 4.00 X X 15900 0 0 BRUCE BROCKMANN DIRECTOR 3.00 X 12300 0 0 GLENN DICKS DIRECTOR 2.00 X 11400 0 0 JON SAXEN DIRECTOR 2.00 X 10650 0 0 SCOTT THIESSE DIRECTOR 6.00 X 15900 0 0 SCOTT REIMER GENERAL MANAGER 40.00 X 220147 0 66942 JULIE RESCH CFO/OFFICE MANAGER 40.00 X 103878 0 48364 MATT MADDEN OPERATIONS MANAGER 40.00 X 113526 0 46572 KOLLIN VANDEVERE JACKSON AREA FOREMAN 40.00 X 105508 0 44671 BRANDON CLARKE WELCOME FOREMAN 40.00 X 105050 0 49464 CASEY L SCHOELLERMAR LINEMAN 40.00 X 104891 0 46341 ALEX C KUNZ LINEMAN 40.00 X 102389 0 29929 950039 0 332283 9 0 1 0 ODDSON UNGERGROUND INC PO BOX 233 WINDOM MN 56101 CONSTRUCTION 715401 LOOSEBROCK DIGGING SERVICES INC 221 W 4TH ST LISMORE MN 56155 CONSTRUCTION 323636 CARR'S TREE SERVICE INC PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING 320773 STAR ENERGY SERVICES LLC 6841 POWER LANE SW ALEXANDRIA MN 56308 ENGINEERING 219812 FINLEY ENGINEERING COMPANY INC 1981 ENGEBRETSON ST SLAYTON MN 56172 ENGINEERING/PROFESSIONAL SERVICES 126552 7 ELECTRIC SALES 221000 39292768 39292768 BROADBAND REVENUE 517000 2301782 714863 1586919 41594550 276665 276665 84100 22124 61976 61976 61976 168111 396575 -228464 -228464 CAPITAL CREDITS 221000 1821733 1821733 PARTNERSHIP INCOME 900099 72789 72789 CTV INCOME 517000 23327 19364 3963 13594 13594 1931443 43636170 41620264 1663671 352235 X 19296 2104231 534886 1986939 314973 190932 847674 2133542 COST OF POWER 31403520 DISTRIBUTIONS - OPERATI 1223464 DISTRIBUTION - MAINTENA 1220510 ADMIN AND GENERAL 1217760 -961347 42236380 106176 2856275 2926965 3078514 3099752 621299 1939282 1915788 1180818 952410 75915015 27882927 46934143 48032088 3873689 2126055 19472035 20708297 1520899 1746404 372798 81081160 82382527 4890232 4360724 1069645 27652158 27231208 600000 800000 2665197 1694757 35807587 35156334 X 0 0 6121270 6482038 39152303 40744155 45273573 47226193 81081160 82382527 X 1399790 552830 X X 0 1 X 1 0 128726 128726 3118829 919727 2199102 71602236 26963200 44639036 1065224 1065224 48032088 CFC CAPITAL TERM CERTIFICATES 537751 C CFC MEMBER CAPITAL SECURITIES 100000 C CFC MEMBERSHIP 1000 C COBANK 96352 C COOPERATIVE TELEVISION ASSOCIATION 257040 C FEDERATED RURAL ELECTRIC SUPPLY INSURANCE 182273 C GREAT RIVER ENERGY MEMBERSHIP 100 C GREAT RIVER ENERGY PATRONAGE CAPITAL 9115757 C L&O POWER COOPERATIVE 9744711 C NATIONAL RURAL TELECOMMUNICATIONS COOP 105189 C NATIONAL RURAL UTITILIES CFC 91342 C OTHER 1174 C RURAL ELECTRIC SUPPLY COOPERATIVE 251252 C SOUTHERN MINNESOTA ENERGY COOPERATIVE 224356 C 20708297 FINANCE LEASE OBLIGATION 334644 POSTRETIREMENT BENEFIT OBLIGATION 299650 CONSUMER DEPOSITS 77878 CONTINGENT LIABILITY 607231 UNCLAIMED CAPITAL CREDIT CHECKS 287577 DEFERRED SPECIAL EQUIPMENT COSTS 87203 OTHER DEFERRED CREDITS 574 1694757 X 41930494 487295 487295 41443199 2192971 2192971 43636170 38919448 0 38919448 3316932 3316932 42236380 PART X, LINE 2: THE ASSOCIATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. THE ASSOCIATION IS SUBJECT TO INCOME TAX ON ITS UNRELATED BUSINESS INCOME (UBI) AND FILED ANNUALLY ON FEDERAL FORM 990T. 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 BENEFITS 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: PARTNERSHIP BOOK TO TAX DIFFERENCE 487,295. PART XI, LINE 4B - OTHER ADJUSTMENTS: BROADBAND EXPENSE 1,146,330. INCOME TAX EXPENSE 66,371. TAXABLE BROADBAND GRANT 980,270. PART XII, LINE 4B - OTHER ADJUSTMENTS: BROADBAND EXPENSE 1,146,330. INCOME TAX EXPENSE 66,371. ALLOCATED CAPITAL CREDITS 2,104,231. X 1 1 X X X 0 0 0 SCOTT REIMER GENERAL MANAGER 218025 0 0 0 2122 0 35328 0 33127 0 288602 0 0 0 MATT MADDEN OPERATIONS MANAGER 112305 0 0 0 1221 0 18593 0 28834 0 160953 0 0 0 BRANDON CLARKE WELCOME FOREMAN 104687 0 0 0 363 0 17808 0 32414 0 155272 0 0 0 JULIE RESCH CFO/OFFICE MANAGER 103472 0 0 0 406 0 17453 0 31726 0 153057 0 0 0 CASEY L SCHOELLERMAR LINEMAN 104550 0 0 0 341 0 17358 0 29710 0 151959 0 0 0 KOLLIN VANDEVERE JACKSON AREA FOREMAN 105145 0 0 0 363 0 17230 0 28199 0 150937 0 0 0 PART I, LINE 1A: GROSS UPS: PERSONAL USE FRINGE AUTO BENEFIT FOR THE GENERAL MANAGER. BENEFIT WAS INCLUDED IN TAXABLE INCOME. PART I, LINE 1B: THE BOARD APPROVES THAT A VEHICLE IS PROVIDED TO THE GENERAL MANGER FOR BUSINESS TRAVEL. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE IS A MEMBER OWNED COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER OF THE COOPERATIVE HAS ONE VOTE IN ELECTIONS OF BOARD MEMBERS. THE MEMBERSHIP OF THE COOPERATIVE ALSO VOTES ON CHANGES TO THE BY-LAWS. FORM 990, PART VI, SECTION A, LINE 7B MERGERS, DISSOLUTION, AND BYLAW CHANGES MUST BE APPROVED BY MEMBERS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. ALL COMMITTEES BRING RECOMMENDATIONS TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B IT IS THE COOPERATIVE'S POLICY THAT THE BOARD OF DIRECTORS REVIEW THE FORM 990 FILED ON THE ORGANIZATION'S BEHALF BEFORE IT IS FILED WITH THE IRS. EACH BOARD MEMBER INDIVIDUALLY SIGNS A DOCUMENT STATING THEY HAVE REVIEWED THE 990. AFTER THE 990 IS FILLED WITH THE IRS, EACH BOARD MEMBER RECEIVED A COMPLETE COPY OF THE FILED DOCUMENT IN THEIR MONTHLY BOARD REPORT. THE REPORT IS DELIVERED ELECTRONICALLY. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS, OFFICERS, AND MEMBERS OF MANAGEMENT MUST ANNUALLY COMPLETE AND SIGN THE CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM AND DELIVER IT TO THE GENERAL MANAGER. IN ADDITION, IF AN OFFICIAL DISCOVERS ANY INFORMATION THAT COULD IMPACT ANOTHER OFFICIAL'S COMPLIANCE WITH THE POLICY, THEY MUST DISCLOSE THE INFORMATION TO THE GENERAL MANAGER IMMEDIATELY. POTENTIAL CONFLICTS OF INTEREST ARE REVIEWED BY THE BOARD OF DIRECTORS. IF THE BOARD DETERMINES THAT A DIRECTOR DOES NOT COMPLY WITH THE POLICY THEN THEY MUST PROVIDE THE DIRECTOR AN OPPORTUNITY TO COMPLY WITH THE POLICY WITHIN THIRTY DAYS. IF THE DIRECTOR DOES NOT COMPLY THEN THE BOARD MUST SANCTION, DISQUALIFY, AND/OR REMOVE THE DIRECTOR AS ALLOWED BY LAW. THE COOPERATIVE'S LEGAL COUNSEL MUST ANNUALLY REVIEW THIS POLICY WITH ALL OFFICIALS. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS MAKES ANNUAL RECOMMENDATIONS REGARDING THE GENERAL MANAGER'S PERFORMANCE AND COMPENSATION. COMPENSATION SURVEYS AND COMPARABILITY DATA ARE USED TO ENSURE THE GENERAL MANAGER'S COMPENSATION IS REASONABLE. FORM 990, PART VI, SECTION C, LINE 19 A NEW MEMBER PACKET WHICH INCLUDES THE STATEMENT OF NONDISCRIMINATION AND INFORMATION ABOUT THE AVAILABILITY OF THE ARTICLES OF INCORPORATION AND THE BYLAWS IS MAILED TO EACH NEW MEMBER. THE BYLAWS AND ARTICLES ARE AVAILABLE UPON REQUEST AND ARE PUBLISHED ON OUR WEBSITE. FEDERATED RURAL ELECTRIC PUBLISHES A SUMMARY REPORT FROM THE FULL AUDIT REPORT PRIOR TO THE ANNUAL MEETING. THIS REPORT IS CONTAINED IN THE MONTHLY NEWS LETTER, "CONNECTIONS," MAILED TO EACH MEMBER OF RECORD. IN ADDITION, THE FULL AUDIT REPORT AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST AT THE COOPERATIVES' CORPORATE OFFICES. THE PUBLIC INSPECTION COPY OF FORM 990 IS AVAILABLE AT GUIDESTAR.ORG OR BY CONTACTING THE COOPERATIVE. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES THE LABOR, PENSION, AND PAYROLL TAXES REPORTED ON LINES 6-10 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 IX, LINE 4 PATRONAGE DIVIDENDS PAID: AS REQUIRED BY 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI AND ON SCHEDULE D, PARTS XI AND XIII. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: RETIRED CAPITAL CREDITS -1,058,426. PARTNERSHIP BOOK TO TAX DIFFERENCE 487,295. ALLOCATION OF CAPITAL CREDITS 2,104,231. GRANT BOOK TO TAX DIFFERENCE -980,270. FORM 990, PART XII, LINE 2C THE COOPERATIVE NO LONGER HAS AN AUDIT COMMITTEE IN 2023. THE FULL BOARD OF DIRECOTRS ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT AUDITOR. FEDERATED RURAL ELECTRIC TRUEST 77100 HWY 71 S JACKSON MN 561430069 411802809 CHARITABLE MN 501(C)(3) 7 FEDERATD RURAL ELECTRIC ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0