2024-11-01T09:43:43-05:00 2023-12-31 450250958 EIDE BAILLY LLP 345 N REID PL STE 400 SIOUX FALLS SD 571037034 990 2023-01-01 410184475 REDWOOD ELECTRIC COOPERATIVE REDW 5076922214 60 PINE STREET CLEMENTS MN 56224 RONALD L HORMAN GENERAL MANAGER 5076922214 2024-10-31 1 1 LAURIE HANSON CPA P00851848 6053391999 2024-10-31 2023 2024-10-15 13:58:12Z RONALD L HORMAN 60 PINE STREET CLEMENTS MN 56224 16713830 0 X WWW.REDWOODELECTRIC.COM X 1937 MN PROVIDING ELECTRICITY TO RURAL COMMUNITIES. 7 7 19 0 51977 52500 0 0 16660511 16616095 -323491 59819 -9884 -19369 16327136 16656545 0 0 1496219 1177713 2393719 2500613 0 0 0 12437198 12978219 16327136 16656545 0 0 42577530 41672799 25482221 24224241 17095309 17448558 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 3,661 MEMBERS ALONG 1,317 MILES OF 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 1 351 0 1 19 1 1 1 0 0 0 0 16095749 378325 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 HOPE LANG 5076922214 60 PINE STREET CLEMENTS MN 56224 X RICHARD NELSON PRESIDENT 3.00 X X 13650 0 0 DANIEL TAUER VICE PRESIDENT 2.00 X X 13150 0 0 JILL WEBER VANDERWAL SECRETARY/TREASURER 2.00 X X 12850 0 0 MICHAEL BAUNE DIRECTOR 3.50 X 13750 0 0 DEAN FULTZ DIRECTOR 2.00 X 12950 0 0 EMILY EVANS DIRECTOR 2.00 X 12750 0 0 GEORGE TURBES DIRECTOR 2.00 X 14060 0 0 RONALD L HORMAN GENERAL MANAGER 26.00 X 117263 0 63835 HOPE LANG MANAGER OF FINANCE & ADMIN 40.00 X 126434 0 67858 CHAD NELSEN OPERATIONS MANAGER 40.00 X 127150 0 65487 MARTIN BERG FOREMAN 42.00 X 104079 0 66135 DONALD DIETZ SENIOR FOREMAN 42.00 X 110888 0 69510 CLARK GARDNER SENIOR FOREMAN 42.00 X 111011 0 86622 MATTHEW GRUNEWALD FOREMAN 43.00 X 112721 0 60727 902706 0 480174 7 0 1 0 STAR ENERGY SERVICES LLC 6841 POWER LANE SW ALEXANDRIA MN 56308 ENGINEERING, IT, SAFETY, MAPPING 139423 1 SALE OF POWER 221000 15824889 15824889 CAPITAL CREDITS 221000 620215 620215 OTHER OPERATING 221000 95958 95958 EQUITY INVESTMENTS 221000 31185 62433 -31248 43848 43848 16616095 59819 59819 2652 0 2652 2652 2652 35264 57285 -22021 -10456 -11565 16656545 16587562 51977 17006 X 1177713 482397 1428871 465316 124029 577305 1483951 COST OF POWER 9702431 DISTRIBUTION - OPERATIO 1114899 DISTRIBUTION - MAINTENA 901510 CUSTOMER ACCOUNTS 319355 -1121232 16656545 3349961 1423512 2538410 2349995 895768 1190872 195656 161801 48146019 18153655 29483592 29992364 264626 295811 5845051 6254497 4466 3947 42577530 41672799 1935329 1775155 23096472 21990058 450420 459028 25482221 24224241 X 0 0 0 0 17095309 17448558 17095309 17448558 42577530 41672799 X 0 353249 X 0 1 X 1 0 101800 101800 2630476 436886 2193590 45413743 17716769 27696974 29992364 GREAT RIVER ENERGY 2106928 C EAST RIVER ELECTRIC POWER COOPERATIVE, INC. 3317413 C SOUTHERN MINNESOTA ENERGY COOP 138164 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 417076 C OTHER INVESTMENTS IN ASSOCIATED COMPANIES 274916 C 6254497 CUSTOMER DEPOSITS 49050 DEFERRED CREDITS 261874 CAPITAL LEASE LIABILITY 148104 459028 X 16651334 -5211 -5211 16656545 0 16656545 15473621 0 15473621 1182924 1182924 16656545 PART X, LINE 2: THE COOPERATIVE HAS EVALUATED 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 COOPERATIVE WILL RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF INCURRED. PART XI, LINE 2D - OTHER ADJUSTMENTS: TAX EXPENSE INCLUDED IN REVENUE FOR AUDIT -5,211. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2023 MARGINS TO MEMBERS IN 2024 1,177,713. TAX EXPENSE INCLUDED IN REVENUE FOR AUDIT 5,211. X 1 1 X X 0 0 0 CLARK GARDNER SENIOR FOREMAN 109907 0 350 0 754 0 53839 0 34847 0 199697 0 0 0 HOPE LANG MANAGER OF FINANCE & ADMIN 124316 0 900 0 1218 0 32645 0 37891 0 196970 0 0 0 CHAD NELSEN OPERATIONS MANAGER 125335 0 600 0 1215 0 31292 0 36872 0 195314 0 0 0 RONALD L HORMAN GENERAL MANAGER 112748 0 1559 0 2956 0 46479 0 19765 0 183507 0 0 0 DONALD DIETZ SENIOR FOREMAN 109442 0 1446 0 0 0 38161 0 33413 0 182462 0 0 0 MATTHEW GRUNEWALD FOREMAN 109149 0 350 0 3222 0 26808 0 35868 0 175397 0 0 0 MARTIN BERG FOREMAN 103143 0 350 0 586 0 30605 0 37479 0 172163 0 0 0 PART I, LINE 1A SPOUSE TRAVEL FOR THE NRECA ANNUAL MEETING IS PAID FOR BY THE COOPERATIVE FOR DESIGNATED DIRECTORS, MANAGEMENT OR EMPLOYEES AND THIS BENEFIT IS INCLUDED AS TAXABLE INCOME. ALSO, THE COOPERATIVE WILL PAY THE AIRFARE OF THE GENERAL MANAGER'S SPOUSE TO CO-OP RELATED MEETINGS. THIS BENEFIT IS INCLUDED AS TAXABLE INCOME ON THE MANAGER'S W-2. SCHEDULE J, PART II COLUMN C INCLUDED IN COLUMN C IS THE CHANGE IN ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR EACH PARTICIPANT RATHER THAN THE ACTUAL CONTRIBUTION PAID TO THE PLAN. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN ARE AS FOLLOWS: - RONALD HORMAN $40,768 - HOPE LANG $26,257 - CHAD NELSEN $24,905 - MARTIN BERG $25,956 - DONALD DIETZ $33,233 - CLARK GARDNER $48,911 - MATTHEW GRUNEWALD $22,159 THE ACTUAL EXPENSE OF THE COOPERATIVE FOR DEFINED BENEFIT PLAN ARE AS FOLLOWS: - RONALD HORMAN $35,921 - HOPE LANG $39,865 - CHAD NELSEN $39,865 - MARTIN BERG $26,460 - DONALD DIETZ $28,047 - CLARK GARDNER $28,047 - MATTHEW GRUNEWALD $26,460 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS VOTE ON BY-LAWS AND ALSO NOMINATE AND ELECT THE BOARD OF DIRECTORS. EACH MEMBER OF THE COOPERATIVE WILL RECEIVE ONE VOTE. WHEN A DIRECTOR'S TERM IS UP THE MEMBERS WILL NOMINATE AND VOTE ON A DIRECTOR TO FILL THE POSITION; THE DIRECTOR MAY BE REELECTED IF THE MEMBERSHIP CHOOSES. FORM 990, PART VI, SECTION A, LINE 7B BY-LAWS AND ARTICLES ARE APPROVED BY THE MEMBERSHIP AT THE ANNUAL MEETING. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE GENERAL MANAGER AND SUPPORT STAFF REVIEW THE 990 AND PROVIDE COPIES TO THE BOARD OF DIRECTORS TO REVIEW AT THE BOARD MEETING. THE 990 IS FILED WITH THE IRS AFTER ALL BOARD MEMBERS HAVE RECEIVED A COPY AND BEEN GIVEN AMPLE TIME TO REVIEW IT. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS AND EMPLOYEES ARE COVERED BY THE CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO DISCLOSE CONFLICTS ANNUALLY. THE BOARD OF DIRECTORS WILL DETERMINE IF A CONFLICT EXISTS. IF A CONFLICT EXISTS, THE BOARD PRESIDENT AND GENERAL MANAGER WILL REVIEW THE CONFLICT. THE POLICY STATES THAT IF A CONFLICT EXISTS, THE DIRECTOR OR EMPLOYEE THAT IS INVOLVED HAS 30 DAYS TO COMPLY WITH THE POLICY BEFORE THEY ARE CONSIDERED FOR REMOVAL FROM THE BOARD OR THE COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 15A SERVICES OF THE GENERAL MANAGER ARE SHARED BY SOUTH CENTRAL ELECTRIC ASSOCIATION AND REDWOOD ELECTRIC COOPERATIVE. THE SAC COMMITTEE IS RESPONSIBLE FOR DETERMINING THE GENERAL MANAGER'S SALARY AND IS COMPRISED OF THREE SOUTH CENTRAL ELECTRIC ASSOCIATION BOARD MEMBERS AND THREE REDWOOD ELECTRIC COOPERATIVE BOARD MEMBERS. THE COMMITTEE DETERMINES THE COMPENSATION FOR THE GENERAL MANAGER THROUGH UTILIZATION OF COMPARABILITY DATA AND SALARY SURVEY DATA. A MULTI-YEAR CONTRACT IS ENTERED INTO BY THE ORGANIZATION AND THE GENERAL MANAGER. THE GENERAL MANAGER HAS AN ANNUAL REVIEW WHICH INCLUDES A REVIEW OF HIS CONTRACT. THIS PROCESS OCCURS IN NOVEMBER AND ANYTIME THERE IS A SAC MEETING. THE BOARD OF DIRECTORS USE COMPARABILITY DATA TO DETERMINE COMPENSATION FOR BOARD MEMBERS. THIS PROCESS IS UNDERTAKEN ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 ARTICLES OF INCORPORATION AND BYLAWS ARE DISTRIBUTED TO NEW MEMBERS WITH THEIR MEMBER HANDBOOK. THE BALANCE SHEET AND STATEMENT OF OPERATIONS ARE MAILED ALONG WITH THEIR BILL IN MARCH. THESE ARE ALSO DISTRIBUTED TO MEMBERS AS A HANDOUT AT OUR ANNUAL MEETING OR THEY MAY BE REVIEWED AT OUR OFFICE IF THE MEMBER REQUESTS. 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. 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, SECTION A: RONALD HORMAN'S COMPENSATION AND HOURS WORKED PER WEEK ARE SPLIT EVENLY BETWEEN REDWOOD ELECTRIC COOPERATIVE AND AN UNRELATED ORGANIZATION, SOUTH CENTRAL ELECTRIC ASSOCIATION. RONALD IS A COMMON LAW EMPLOYEE OF EACH ORGANIZATION. THE COMPENSATION REPORTED ON FORM 990 PART VII AND ON SCHEDULE J REPRESENTS REDWOOD ELECTRIC COOPERATIVE'S SHARE OF RONALD'S SALARY AND BENEFITS. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: ALLOCATED AND OTHER EXPENSE - 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 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. FORM 990, PART XI, LINE 9: ALLOCATION OF 2023 MARGINS TO MEMBERS IN 2024 1,177,713. RETIREMENT OF CAPITAL CREDITS -824,464. REDWOOD ELECTRIC TRUST 60 PINE STREET CLEMENTS MN 56224 411902159 CHARITABLE MN 501(C)(3) LINE 7 REDWOOD ELECTRIC COOPERATIVE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 SCHEDULE R, PART II, RELATED TAX-EXEMPT ORGANIZATIONS REDWOOD ELECTRIC HAS AN OPERATION ROUNDUP PROGRAM THAT IT FACILITATES THROUGH ITS MEMBER BILLINGS. FUNDS COLLECTED FROM THE MEMBER BILLINGS ARE HELD IN A SEPARATE ACCOUNT AND TRANSFERRED TO REDWOOD AREA COMMUNITY FOUNDATION (RACF) EACH MONTH AFTER THE BANK ACCOUNT HAS BEEN RECONCILED. DONATIONS ARE PAID OUT OF THE RACF QUARTERLY. THIS PROGRAM IS ADMINISTERED BY RACF AS THE FISCAL SPONSOR. RACF RECEIVES THE FUNDS INTO A SPECIAL RESTRICTED FUND FOR THE SOLE PURPOSE OF FUNDING OPERATION ROUND UP ACTIVITIES AS DIRECTED BY AN EXECUTED GRANT AGREEMENT BETWEEN THE TRUST AND RACF.