2024-04-29T14:23:45-05:00 2023-12-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2023-01-01 410411772 Mille Lacs Energy Cooperative MILL 2189272191 PO Box 230 Aitkin MN 56431 Sarah Cron CEO 2189272191 2024-04-28 1 Sarah Cron 999009999 1 Lisa Chaffee CPA P00193453 7012551091 2024-04-28 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z Sarah Cron PO Box 230 Aitkin MN 56431 32476630 0 X www.mlecmn.net X 1939 MN Provides electric distribution service to 13,616 members of the cooperative. 7 7 51 0 134962 0 0 0 28950155 31832911 282848 564374 -29369 79345 29203634 32476630 0 0 1515925 2692725 5185056 5455362 0 0 0 22113036 23540553 28814017 31688640 389617 787990 88985955 100842123 56744118 65923240 32241837 34918883 It is our mission to responsibly provide reliable, competitively priced energy, services and products to meet the needs of our members and customers. 0 0 Provided electric distribution service to 13,616 members of the cooperative and build/maintain 2,018 miles in of line in 2023. 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 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 136 0 1 51 1 1 1 0 0 0 0 30863453 2408756 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 X Lincoln Messner 2189272191 36559 US Highway 169 Aitkin MN 56431 Harold Harms President 6.30 X X 15207 0 0 Mike Reem Vice President 5.70 X X 13207 0 0 Bruce Robinson Assist Secretary/Treasurer 5.70 X X 13907 0 0 Aileen Demenge Secretary/Treasurer 3.70 X X 12637 0 0 Don Appel Director 3.60 X 10757 0 0 Derik Midthun Director 3.00 X 11382 0 0 Mark Anderson Director 5.10 X 12660 0 0 Lincoln Messner Accounting & Finance Mgr 40.00 X 108157 0 17284 Sarah Cron CEO 40.00 X 222127 0 52669 Tanner Clasen Lineman 44.70 X 122027 0 26955 Nikolaus Borchert Lineman 45.50 X 122506 0 41796 Cory Brix Operations Manager 40.00 X 124786 0 31756 Jay Eide Lineman 43.00 X 124663 0 13499 Gregory Greely Lineman 45.40 X 127858 0 10508 1041881 0 194467 18 0 1 0 Hanco Utilities Inc PO Box 470279 Lake Monroe FL 32747 Fiber Cable Installation 3755496 Commercial Partners Title Division 200 South 6th St Suite 1300 Minneapolis MN 55402 Payment Intermediary 3445542 New Age Tree Service PO Box 543 Spring Grove MN 55974 Right of Way Clearing 952467 Elite Underground Inc 9351 Oak Bluff Brainerd MN 56401 Broadbank Construction 775132 Architectural Resources Inc 704 East Howard St Hibbing MN 55746 Engineer Design 463994 16 Electric Sales 221000 30312172 30312172 Capital Credits 221000 1146569 1146569 Other Sales 221000 374170 374170 31832911 563516 563516 858 0 858 858 858 Internet & LD 517000 135581 135581 Generator Sales 900099 -619 -619 Meter Loops & Sewer District 900099 -55617 -55617 79345 32476630 31777294 134962 564374 X 2692725 490126 4190204 431844 343188 1248800 2334102 Cost of Power 16114345 Distribution 5268510 Admin & General 2285957 Customers Accts & Servi 1742843 -5454004 31688640 4229205 3119993 4649794 6266421 3496092 4827414 1622695 1504508 1589804 463855 99296209 32548236 56472478 66747973 14920018 15889806 2005869 2022153 88985955 100842123 4078957 9193720 2080528 2108707 6654 6696 48754130 53173130 1823849 1440987 56744118 65923240 X 0 0 0 0 32241837 34918883 32241837 34918883 88985955 100842123 X 787990 1889056 X 0 1 X 1 0 0 1 X 267530 267530 2159142 1614665 544477 12655353 3745523 8909830 8514816 75699368 27188048 57026136 66747973 Capital Credits to Other Organizations 14181179 C Membership Fees 1125 C CFC Capital Certificates 998932 C MN Rural Electric Trust 62634 C Economic Development Projects 635936 C Cooperative Response Center 10000 C 15889806 Unclaimed Property 393941 Customer Energy Prepayments 237067 Customer Deposits 342174 Installation Costs on Meters and Tr 354920 Aid in Excess of Contruction Expens 91359 Operating Lease 21526 1440987 X 32476630 0 32476630 0 32476630 28995915 0 28995915 2692725 2692725 31688640 Part IV, Line 2b: The members of the Cooperative can elect to round up their monthly electric bill to the next dollar. These funds collected from the membership are held in a Cooperative account until they are released to the Mille Lacs Electric Community Trust. These funds are transferred directly to the Mille Lacs Electric Community Trust on a monthly basis. Funds that exist at the end of year are a result of a timing difference in the receipt of the funds and the release of them to the Mille Lacs Electric Community Trust. Part X, Line 2: The Cooperative 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 Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XII, Line 4b - Other Adjustments: Current Year Patronage Allocation 2,692,725. X X X X 0 0 0 Sarah Cron CEO 218296 0 0 0 3831 0 24916 0 27759 0 274802 0 0 0 Nikolaus Borchert Lineman 120610 0 0 0 1896 0 14158 0 27779 0 164443 0 0 0 Cory Brix Operations Manager 122675 0 0 0 2111 0 13822 0 17958 0 156566 0 0 0 Form 990, Part VI, Section A, line 1a The Board of Directors can appoint an Executive Committee consisting of at least three directors, one of which must be the President. The committee will only have the powers and duties as the Board of Directors may delegate. Other committees that are able to make decisions on behalf of the Board of Directors as long as it does not change a policy are as follows: Investment Committee and Safety Committee. The CEO serves on these committees and has the ability to override decisions. Form 990, Part VI, Section A, line 6 There is only one class of members. A member is any person or entity that takes delivery of electric energy from the Cooperative. Each member has one vote. Form 990, Part VI, Section A, line 7a The members have the right to vote on the removal of any director or officer. During the meeting of the removal, the members may also vote to fill the position. The governing board has the authorization to fill other vacancies until the next annual meeting. The members vote on new board members at the annual meeting. Form 990, Part VI, Section A, line 7b Amendments of the articles of incorporation and bylaws, as well as the sale of a substantial portion of the Cooperative's property, require a two-thirds vote to be amended. Form 990, Part VI, Section B, line 11b A draft copy of the 990 was provided to each board member. The Form 990 was also reviewed by the finance manager with the board at a board meeting prior to filing with the IRS. Form 990, Part VI, Section B, line 12c The conflict of interest policy is reviewed annually by all employees and board members. The CEO and Board President review the annual disclosures or potential conflicts and determines if one exists. The individual with the potential conflict is requested to recuse themselves from voting on the matter. Form 990, Part VI, Section B, line 15a Annually, the wage and salary plan used for all of the non-union employees, including the management team, is based on survey data provided by NRECA for similar positions of other rural electric cooperatives in the U.S., as well as an outside consultant. The process used has been approved by the board and is documented in the board minutes. The CEO uses comparability data using the NRECA survey and independent consultant for the compensation of other officers. There are no key employees. Form 990, Part VI, Section C, line 19 Mille Lacs Energy Cooperative publishes its articles of incorporation and bylaws on its website, has a copy in the lobby and sent to any members who request a paper copy. The Cooperative publishes its quarterly financial statements in the monthly newspaper "The Outlet", which is mailed to all members and posted on the website. The annual report is also sent to the membership. The governing documents, conflict of interest policy and financials are also available upon request. Form 990, Part IX, Statement Of Functional Expenses, Line 24e The labor, pension, and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction included on line 24e in the amount of $(5,455,362). Part IX, Line 24e total also consists of other expenses. Form 990, Part IX, Line 4 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 Bylaws of the Cooperative. Form 990, Part XI, line 9: Current Year Patronage Allocation 2,692,725. Retirement of capital credits, net of gain -803,669. Mille Lacs Electric Community Trust PO Box 230 Aitkin MN 56431 411902846 Community Trust MN 501(c)(3) Line 7 Mille Lacs Energy Cooperative 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 Mille Lacs Electric Community Trust L 80626 Accrual Basis