2024-10-10T14:22:34-05:00 2023-12-31 450250958 EIDE BAILLY LLP 345 N REID PL STE 400 SIOUX FALLS SD 571037034 990 2023-01-01 410212180 DAKOTA ELECTRIC ASSOCIATION DAKO 8008743409 4300 220TH ST W FARMINGTON MN 550249583 RYAN HENTGES PRESIDENT & CEO 8008743409 2024-09-30 1 1 LAURIE HANSON CPA P00851848 6053391999 2024-09-30 2023 2024-10-15 13:58:12Z RYAN HENTGES 4300 220TH ST W FARMINGTON MN 550249583 231684668 0 X WWW.DAKOTAELECTRIC.COM X 1937 MN ELECTRIC DISTRIBUTION COOP 12 12 222 0 9587 0 0 0 219431379 231356885 275681 193148 1320 16272 219708380 231566305 444135 506410 3423681 2537692 24801261 24517893 0 0 0 187439352 194006961 216108429 221568956 3599951 9997349 393498407 407291057 204580281 208295930 188918126 198995127 WE ARE A MEMBER-OWNED, MEMBER-FOCUSED ELECTRIC DISTRIBUTION COOPERATIVE, STRIVING TO EXCEED OUR MEMBER'S ENERGY EXPECTATIONS IN A CHANGING WORLD. 0 0 PROVIDE ELECTRIC AND RELATED SERVICES AND PRODUCTS FOR APPROXIMATELY 116,000 MEMBERS/CUSTOMERS. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 91 0 1 222 1 1 1 0 0 0 0 0 0 219544361 7909044 0 0 0 X 12 12 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X X CARLA HENKE 6514636222 4300 220TH STREET W FARMINGTON MN 55024 PAUL BAKKEN CHAIR 25.00 X X 45320 0 0 TERRENCE DONNELLY SECRETARY 14.00 X X 34850 0 0 GERALD PITTMAN JR TREASURER 15.00 X X 34850 0 0 CLAY VAN DE BOGART DIRECTOR/VICE CHAIR (BEG MAY) 17.00 X X 34850 0 0 KENNETH DANNER DIRECTOR 14.00 X 34850 0 0 JOHN JACK DEYOE DIRECTOR 22.00 X 34850 0 0 CYNTHIA FIELDS DIRECTOR (BEG AUG) 14.00 X 14750 0 0 JENNIFER HOEFT DIRECTOR (BEG APR) 8.00 X 26330 0 0 DAVID JONES DIRECTOR 20.00 X 34850 0 0 BILL MIDDLECAMP VICE CHAIR/DIRECTOR (BEG MAY) 16.00 X X 34850 0 0 STACY MILLER DIRECTOR 12.00 X 34850 0 0 MARGARET SCHREINER DIRECTOR 18.50 X 34850 0 0 GREG MILLER PRESIDENT/CEO (END MAY) 40.00 X 289527 0 19695 RYAN HENTGES PRESIDENT/CEO (BEG MAY) 40.00 X 372247 0 66736 COREY HINTZ VP-FINANCIAL SERVICES/CFO 40.00 X 241605 0 69246 MICHAEL NELSON VP-INFORMATION SERVICES/CIO 40.00 X 257571 0 28333 JONATHON BEYER VP-ENERGY & MEMBER SERVICES 40.00 X 224125 0 54491 ADAM HEINEN VP-REGULATORY SERVICES 40.00 X 200567 0 64764 BETTY JO KIESOW VP-ENGINEERING SERVICES 40.00 X 254662 0 151339 JEFFREY SCHOENECKER VP-UTILITY SERVICES 40.00 X 258442 0 24877 GRANT BAUMBERGER FACILITIES & TECH SERV MGR 40.00 X 176798 0 82558 JOHN BERGE GRID MODERNIZATION MANAGER 40.00 X 155451 0 57357 CARLA HENKE CORPORATE CONTROLLER 40.00 X 180570 0 72275 JOHN THURMES CONTROL CENTER MANAGER 40.00 X 178457 0 76610 CRAIG TURNER SR. PRINCIPAL & REGULATORY ENGINEER 40.00 X 176374 0 117357 3366446 0 885638 97 0 1 0 NPL CONSTRUCTION CO 2355 UTOPIA RD PHOENIX AZ 85027 UNDERGROUND CONSTRUCTION 3410375 CARR'S TREE SERVICE 307 MINNESOTA 78 OTTERTAIL MN 56571 TREE TRIMMING 1528827 KUBRA AMERICA SOUTH EAST INC 5310 WESTPARK DR ATLANTA GA 30336 CUSTOMER BILLING 1095946 ITINERIS PO BOX 680451 MARIETTA GA 30068 CUSTOMER BILLING SYSTEM CONSULTING/MAINT 730953 PREMIER LOCATING 10 2ND ST NE BUFFALO MN 55313 LOCATING 544862 16 SALE OF POWER 221000 231347298 231347298 VEHICLE REPAIR REVENUE 811000 9587 9587 231356885 134136 134136 67778 8766 59012 59012 59012 125869 109597 16272 16272 231566305 231363570 9587 193148 506410 2537692 2883171 15954479 2780781 1607082 1292380 149387 52297 5646407 2165206 3130586 123888 233294 5535509 13879212 501430 COST OF PURCHASED POWER 155365288 PROPERTY & OTHER TAXES 3261945 EXTERNAL CONTRACT LABOR 2374024 BAD DEBT EXPENSE 749198 839290 221568956 173155 142859 26971962 24825375 12624730 15890374 3188797 1323680 374528252 156602747 212761256 217925505 3503310 3488347 130428615 134960623 3846582 8734294 393498407 407291057 41039458 39336315 73123 47530 575592 798746 139311305 140534542 13500000 9100000 10080803 18478797 204580281 208295930 X 0 0 0 0 188918126 198995127 188918126 198995127 393498407 407291057 X 9997349 79652 X X 0 1 X 1 0 0 1 X 4784544 4784544 9277616 4755144 4522472 351641543 151847603 199793940 8824549 8824549 217925505 GRE CAPITAL CREDITS 128206882 C NRUCFC CAPITAL CREDITS 3896577 C COBANK 1367544 C OTHER CAPITAL CREDITS 1282678 C COOPERATIVE MEMBERSHIPS 2600 C MN RURAL ELECTRIC TRUST 204342 C 134960623 CAPITAL LEASE LIABILITY 744256 POST-RETIREMENT BENEFIT OBLIGATION 4003413 PROPERTY TAX PROGRAM RECOVERY 147235 POWER COST OVER-RECOVERY 12987069 AGI RECOVERY 596824 18478797 X 230281171 109597 109597 230171574 1394731 1394731 231566305 217330130 -1285134 -1285134 218615264 2953692 2953692 221568956 PART IV, LINE 2B: THE MEMBERS OF THE COOPERATIVE CAN ELECT TO PAY AN ADDITIONAL SET AMOUNT ON THEIR ELECTRIC BILL EACH MONTH AS A CONTRIBUTION TO THE HELPING NEIGHBORS TRUST. THE FUNDS COLLECTED FROM THE MEMBERSHIP ARE HELD IN A COOPERATIVE ACCOUNT AND ARE PAID TO THE TRUST QUARTERLY. THE TRUST USES THE FUNDS FOR CHARITABLE PURPOSES. FUNDS THAT EXIST AT THE END OF THE YEAR ARE A RESULT OF A TIMING DIFFERENCE FROM WHEN THE FUNDS ARE COLLECTED FROM THE COOPERATIVE MEMBERS, TO WHEN THEY ARE DISTRIBUTED TO THE HELPING NEIGHBORS TRUST. AT DECEMBER 31, 2023, THE COOPERATIVE HELD $2,479. THE COOPERATIVE ALSO COLLECTS FRANCHISE FEES FROM ITS MEMBERS AND DISTRIBUTES THESE FEES DIRECTLY TO THE CITY OF APPLE VALLEY. THE AMOUNT OF $140,902 THAT EXISTS AT DECEMBER 31, 2023 IS A RESULT OF A TIMING DIFFERENCE BETWEEN WHEN THE FUNDS ARE COLLECTED AND WHEN THEY ARE DISTRIBUTED TO THE CITY OF APPLE VALLEY. THE COOPERATIVE ALSO COLLECTS FRANCHISE FEES FROM ITS MEMBERS AND DISTRIBUTES THESE FEES DIRECTLY TO THE CITY OF BURNSVILLE. THE AMOUNT OF $437,032 THAT EXISTS AT DECEMBER 31, 2023 IS A RESULT OF A TIMING DIFFERENCE BETWEEN WHEN THE FUNDS ARE COLLECTED AND WHEN THEY ARE DISTRIBUTED TO THE CITY OF BURNSVILLE. THE COOPERATIVE ALSO COLLECTS FRANCHISE FEES FROM ITS MEMBERS AND DISTRIBUTES THESE FEES DIRECTLY TO THE CITY OF INVER GROVE HEIGHTS. THE AMOUNT OF $19,236 THAT EXISTS AT DECEMBER 31, 2023 IS A RESULT OF A TIMING DIFFERENCE BETWEEN WHEN THE FUNDS ARE COLLECTED AND WHEN THEY ARE DISTRIBUTED TO THE CITY OF INVER GROVE HEIGHTS. THE COOPERATIVE ALSO COLLECTS FRANCHISE FEES FROM ITS MEMBERS AND DISTRIBUTES THESE FEES DIRECTLY TO THE CITY OF EAGAN. THE AMOUNT OF $199,098 THAT EXISTS AT DECEMBER 31, 2023 IS A RESULT OF A TIMING DIFFERENCE BETWEEN WHEN THE FUNDS ARE COLLECTED AND WHEN THEY ARE DISTRIBUTED TO THE CITY OF EAGAN. PART X, LINE 2: DAKOTA ELECTRIC UNDERGOES AN ANNUAL ANALYSIS OF VARIOUS TAX POSITIONS, ASSESSING THE LIKELIHOOD OF THOSE POSITIONS BEING UPHELD UPON EXAMINATION WITH RELEVANT TAX AUTHORITIES, AS DEFINED BY ASC 740-10. THE UNRECOGNIZED TAX BENEFIT ACCRUAL WAS ZERO AS OF DECEMBER 31, 2023 AND 2022. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD RECLASSIFIED 109,597. PART XI, LINE 4B - OTHER ADJUSTMENTS: REIMBURSEMENTS RECLASSIFIED FROM EXPENSE 1,394,731. PART XII, LINE 2D - OTHER ADJUSTMENTS: REIMBURSEMENTS RECLASSIFIED FROM EXPENSE -1,394,731. COST OF GOODS SOLD RECLASSIFIED 109,597. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF MARGIN TO MEMBERS 2,537,692. DCTC SCHOLARSHIPS 416,000. 1 DAKOTA COUNTY TECHNICAL COLLEGE FOUNDATION 1300 145TH STREET E ROSEMOUNT MN 55068 411488605 501(C)3 416000 0 SCHOLARSHIPS FOR EDUCATIONAL PURPOSES COMMUNITY ACTION COUNCIL (DBA 360 COMMUNITIES) 501 E HWY 13 SUITE 102 BURNSVILLE MN 55337 410987708 501(C)3 14000 0 FOOD SHELF/ENERGY ASSISTANCE 2 0 PART I, LINE 2: THE COOPERATIVE RECEIVES VERIFICATION FROM THE DONEES OF THEIR TAX-EXEMPT STATUS. THERE IS A MINNESOTA STATUTE THAT A COOPERATIVE MAY, IN LIEU OF PAYING OR DELIVERING TO THE STATE THE UNCLAIMED PROPERTY SPECIFIED IN ITS REPORT OF UNCLAIMED PROPERTY, DISTRIBUTE THE UNCLAIMED PROPERTY TO A BUSINESS ENTITY OR ORGANIZATION THAT IS EXEMPT FROM TAXATION. AFTER 7 YEARS, DAKOTA ELECTRIC REMITS ITS MINNESOTA UNCLAIMED CAPITAL CREDITS TO DAKOTA COUNTY TECHNICAL COLLEGE (DCTC) FOUNDATION. THE COOPERATIVE THEN DIRECTS THE FOUNDATION TO PAY SPECIFIED AMOUNTS AS SCHOLARSHIPS AND DONATIONS TO QUALIFYING HIGHER EDUCATION INSTITUTIONS FOR EDUCATIONAL PURPOSES. THE EDUCATIONAL INSTITUTIONS DETERMINES WHICH STUDENTS WILL RECEIVE SCHOLARSHIPS. X X 1 1 X X X 0 1 0 RYAN HENTGES PRESIDENT/CEO (BEG MAY) 362192 0 0 0 10055 0 37087 0 29649 0 438983 0 0 0 BETTY JO KIESOW VP-ENGINEERING SERVICES 234662 0 0 0 20000 0 134783 0 16556 0 406001 0 0 0 COREY HINTZ VP-FINANCIAL SERVICES/CFO 220815 0 0 0 20790 0 23877 0 45369 0 310851 0 0 0 GREG MILLER PRESIDENT/CEO (END MAY) 147026 0 1875 0 140626 0 6091 0 13604 0 309222 0 35446 0 CRAIG TURNER SR. PRINCIPAL & REGULATORY ENGINEER 168246 0 625 0 7503 0 83356 0 34001 0 293731 0 0 0 MICHAEL NELSON VP-INFORMATION SERVICES/CIO 234215 0 0 0 23356 0 23783 0 4550 0 285904 0 0 0 JEFFREY SCHOENECKER VP-UTILITY SERVICES 237765 0 0 0 20677 0 23877 0 1000 0 283319 0 0 0 JONATHON BEYER VP-ENERGY & MEMBER SERVICES 203776 0 0 0 20349 0 21379 0 33112 0 278616 0 0 0 ADAM HEINEN VP-REGULATORY SERVICES 181636 0 0 0 18931 0 19896 0 44868 0 265331 0 0 0 GRANT BAUMBERGER FACILITIES & TECH SERV MGR 171019 0 1000 0 4779 0 66302 0 16256 0 259356 0 0 0 JOHN THURMES CONTROL CENTER MANAGER 161864 0 9000 0 7593 0 60818 0 15792 0 255067 0 0 0 CARLA HENKE CORPORATE CONTROLLER 163550 0 11500 0 5520 0 70275 0 2000 0 252845 0 0 0 JOHN BERGE GRID MODERNIZATION MANAGER 152041 0 1000 0 2410 0 16555 0 40802 0 212808 0 0 0 PART I, LINE 1A HEALTH CLUB DUES ARE AVAILABLE TO ALL EMPLOYEES OF DEA AND WERE PAID PER COMPANY POLICY. THE ANNUAL HOLIDAY CASH GIFT TO EMPLOYEES (EXCLUDING EXECUTIVE MANAGEMENT) WAS GROSSED-UP TO COVER APPLICABLE TAXES. PART I, LINE 4B SCHEDULE J LINE 1(I) COLUMN B (III) INCLUDES A REQUIRED DISTRIBUTION OF $35,446 OF DEFERRED COMPENSATION FROM THE NRECA PENSION RESTORATION PLAN THAT HAD PREVIOUSLY BEEN REPORTED ON PRIOR 990'S. THIS IS THE SAME AMOUNT THAT IS REPORTED ON SCHEDULE J LINE 1(I) COLUMN F. SCHEDULE J, PART II, COLUMN C THE ESTIMATED CURRENT YEAR INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN IS INCLUDED IN OTHER COMPENSATION FOR EMPLOYEES LISTED IN PART II OF SCHEDULE J. THESE AMOUNTS DO NOT REPRESENT ANY CURRENT YEAR CONTRIBUTIONS TO THE PLAN. THEY ARE ESTIMATES OF THE INCREASE IN THE ACTUARIAL VALUE OF THE PLANS PROVIDED BY THE NRECA. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS, ALL OF WHICH ARE IN THE SAME CLASS WITH THE SAME VOTING RIGHTS. FORM 990, PART VI, SECTION A, LINE 7A THERE ARE FOUR DISTRICTS AND EACH DISTRICT HAS THREE BOARD MEMBERS. ALL MEMBERS VOTE ON ALL FOUR DISTRICTS. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS HAVE THE POWER TO REMOVE ANY DIRECTOR OR OFFICER IF THEIR ACTIONS CAUSE SUBSTANTIAL HARM TO THE INTERESTS OF THE ORGANIZATION. MEMBERS ALSO HAVE THE RIGHT TO ALTER, AMEND, OR REPEAL THE BYLAWS IF APPROVED BY MAJORITY OF VOTES CAST. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE DOES NOT HAVE AN EXECUTIVE COMMITTEE WITH THE AUTHORITY TO ACT ON BEHALF OF THE FULL BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B THE BOARD OF DIRECTORS WAS PROVIDED A COPY OF THE FORM 990 FOR THEIR REVIEW AT A BOARD MEETING PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS ARE COVERED UNDER THE CONFLICT OF INTEREST POLICY. A DIRECTOR WHO BELIEVES THAT HE/SHE MAY HAVE A CONFLICT OF INTEREST SHALL DISCLOSE THE POTENTIAL CONFLICT AND FURNISH ADEQUATE INFORMATION TO THE BOARD OF DIRECTORS CONCERNING THE CONFLICT WITHIN 30 DAYS OF THE ONSET OF THE POTENTIAL CONFLICT. THE BOARD OF DIRECTORS SHALL DETERMINE WHETHER A CONFLICT EXISTS AND THE TERMS, IF ANY, UNDER WHICH THE CONFLICT CAN BE RESOLVED. A DIRECTOR WHO BELIEVES THAT ANOTHER DIRECTOR MAY HAVE A CONFLICT OF INTEREST SHALL STATE THE BASIS OF THIS BELIEF TO THE BOARD OF DIRECTORS. THE BOARD MAY REQUEST SUCH DIRECTOR PROVIDE ADEQUATE INFORMATION TO ESTABLISH THAT NO CONFLICT EXISTS. SUCH DIRECTOR SHALL PROMPTLY PROVIDE THIS INFORMATION TO THE BOARD OF DIRECTORS, WHICH SHALL DETERMINE WHETHER A CONFLICT EXISTS AND THE TERMS, IF ANY, UNDER WHICH THE CONFLICT CAN BE RESOLVED. EACH BOARD MEMBER SIGNS A CERTIFICATION ANNUALLY BY JULY 1 TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST. EVERY EMPLOYEE IS COVERED BY THE CODE OF ETHICS AND BUSINESS CONDUCT POLICY, AND ARE REQUIRED TO REPORT ANY POTENTIAL CONFLICT OF INTEREST. SENIOR MANAGEMENT, IN CONJUNCTION WITH HUMAN RESOURCES, SHALL INVESTIGATE ANY POTENTIAL CONFLICTS IN A TIMELY MANNER. GENERALLY, THE FINAL AUTHORITY FOR DETERMINING WHETHER OR NOT A VIOLATION OF THIS POLICY OCCURRED RESTS WITH THE PRESIDENT & CEO OR ASSIGNED DESIGNEE. IN THOSE INSTANCES WHERE THE PRESIDENT & CEO IS ALLEGED TO HAVE A CONFLICT, THE FINAL AUTHORITY SHALL BE THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS SERVES AS THE COMPENSATION COMMITTEE FOR THE CEO. THE BOARD OFTEN USES A SALARY SURVEY OR COMPARISON OF WAGES FROM OTHER COMPARABLY SIZED ELECTRIC COOPERATIVES. THE WAGE DATA MAY COME FROM 990S OF COOPERATIVES OF SIMILAR SIZE OR FROM THE NRECA COMPENSATION SURVEY. THE COMPENSATION APPROVAL PROCESS OF THE PRESIDENT/CEO TAKES PLACE ANNUALLY. THE COMPENSATION OF THE VICE PRESIDENT OF FINANCE/CFO IS DETERMINED BY THE CEO THROUGH A PERFORMANCE EVALUATION, AS WELL AS PERIODIC AREA MARKET SALARY COMPARISONS, ON AN ANNUAL BASIS. THE HUMAN RESOURCES DEPARTMENT USES COMPARISON WAGE DATA FROM SURVEYS FOR ALL POSITIONS TO DETERMINE APPROPRIATE MARKET COMPENSATION, BUT THE BOARD DOES NOT VOTE ON THE COMPENSATION OF OTHER POSITIONS. FORM 990, PART VI, SECTION C, LINE 19 THE FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC ON THE WEBSITE OR UPON REQUEST. FORM 990, PART XI, LINE 9: CAPITAL CREDITS RETIREMENT -3,356,616. GAIN ON CAPITAL CREDIT RETIREMENT 482,576. UNCLAIMED CAPITAL CREDITS DONATED 416,000. PATRONAGE DIVIDENDS ALLOCATED 2,537,692. FORM 990, PART XII, LINE 2C THE COOPERATIVE'S BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF ITS INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI ON PAGE 12 OF THE FORM 990. HELPING NEIGHBORS TRUST 4300 220TH STREET W FARMINGTON MN 55024 411837793 CHARITY - ENERGY ASSISTANCE MN 501(C)(3) LINE 7 DAKOTA ELECTRIC ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 NO TRANSACTION OVER 50000