2024-05-01T15:29:50-05:00 2023-12-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2023-01-01 450115790 Cass County Electric Cooperative Inc CASS 7013564400 3312 42nd St S 200 Fargo ND 58104 Chad Sapa CFO 7013564400 2024-05-01 1 Chad Sapa 999009999 1 Lisa Chaffee CPA P00193453 7012551091 2024-05-01 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z Chad Sapa 3312 42nd St S 200 Fargo ND 58104 162239176 0 X www.casscountyelectric.com X 1937 ND To serve our member's energy needs with affordable and reliable electricity. 9 9 114 0 0 0 0 0 154058464 160521855 905179 1385701 241527 207224 155205170 162114780 120531 129873 11897041 9992789 12779225 13881801 0 0 0 129142146 131480945 153938943 155485408 1266227 6629372 326934667 329441334 178080889 168023507 148853778 161417827 The mission of Cass County Electric Cooperative: To serve our member's energy needs with affordable and reliable electricity. 0 0 The Cooperative provided electric energy to 58,221 accounts, 51,493 members and serviced 5,819 of miles at the end of the 2023 year. 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 0 0 0 1 384 0 1 114 1 0 0 0 0 0 161359656 2170658 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X Chad Sapa 7013564400 3312 42nd St S Ste 200 Fargo ND 58104 Glenn Mitzel Board Chair 5.00 X X 21460 0 0 Terry Kraft Vice Chair 3.90 X X 16610 0 0 Paul White Secretary 4.40 X X 15310 0 0 Kalvin Hoff Treasurer 6.50 X X 15660 0 0 Douglas Anderson Director 4.70 X 18110 0 0 Wendy Loucks Director 6.60 X 21210 0 0 Tom Seymour Director 6.90 X 27010 0 0 Sidney Berg Director 5.30 X 20460 0 0 Stacey Ackerman Director 3.50 X 1479 0 0 Marshal Albright CEO 41.80 X 354373 0 60077 Chad Sapa CFO 42.40 X 283873 0 58103 Jodi Bullinger VP of Engineering & Operations 41.70 X 236764 0 184583 Tim Sanden CIO/VP of Information Technology 41.00 X 231976 0 52155 Paul Matthys VP of Member & Energy Services 41.80 X 231583 0 107423 Michael Mahlke Line Crew Foreman 47.00 X 144107 0 49781 Phil Lamb Line Crew Foreman 45.10 X 141046 0 24038 1781031 0 536160 54 0 1 0 Arvig Construction 150 Second St SW Perham MN 56573 Electrical Contractor 1495453 MPM Construction PO Box 202 Horace ND 58047 Electrical Contractor 1253544 Jerry's Excavating PO Box 809 Casselton ND 58012 Electrical Contractor 950832 Carr's Tree Service Inc PO Box 250 Ottertail MN 56571 Tree Trimming Contractor 639837 Dakota Hills Electric Inc 15726 HWY 46 Kindred ND 58051 Electrical Contractor 451129 11 Electric Sales 221000 157936674 157936674 Capital Credits 221000 2585181 2585181 160521855 1378701 1378701 306620 120396 186224 186224 186224 11000 4000 7000 7000 7000 Dispatching Services 900099 21000 21000 21000 162114780 160521855 0 1592925 X 129873 9992789 913732 10056306 2122205 789558 4423910 9311516 Cost of Power 113762847 Distribution Expenses 9360779 Administrative and Gene 4324301 Customer Service Expens 3073443 -12775851 155485408 28283377 20210721 15843754 16513348 8804234 11554439 142170 351943 345049849 90041249 245697981 255008600 4342968 4648685 18597785 21001268 5222398 152330 326934667 329441334 14466549 16461057 5768536 942132 19849 20047 151424884 144230918 6401071 6369353 178080889 168023507 X 0 0 27470137 30093333 121383641 131324494 148853778 161417827 326934667 329441334 X 6629372 122408 5812269 X 0 1 X 0 0 0 1 X 592484 592484 18810508 9397759 9412749 315151043 80387515 234763528 10495814 255975 10239839 255008600 Investments in Associated Organizations 20632047 C Other Investments 369221 C 21001268 Customer Deposits 3117710 Other Liabilities 657120 Installation Costs of Equip 164582 Postretirement Benefits 2429941 6369353 X 162114780 0 162114780 0 162114780 145492619 0 145492619 9992789 9992789 155485408 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 Cass County Electric Cooperative Foundation. These funds are transferred directly to the Cass County Electric Cooperative Foundation 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 Cass County Electric Cooperative Foundation. 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: Patronage Capital Credits Allocated During Current Year 9,992,789. 1 ND Chapter of Dollars for Scholars Bank of ND 1200 Memorial Hwy Bismarck ND 585065509 371517987 501(c)(3) 8000 0 Education Greater FM EDC 51 Broadway Suite 500 Fargo ND 58102 456011769 501(c)(3) 40000 0 Economic Growth Quentin Burdick Center for Cooperatives NDSU Richard H Barry Hall Ste 400 811 Second Avenue North Fargo ND 58102 237120898 501(c)(3) 20000 0 Cooperative Development NDSCS Career Innovation Center Alumni Foundation 800 6 Street N Wahpeton ND 58076 450407617 501(c)(3) 10000 0 Education 4 0 Part I, Line 2: The Greater FM EDCreports on how the funds are spent. The ND Dollars for Scholars forward the names of the students and parents receiving scholarships. The NDSCS Career Innovation Center provides academic programming and workforce training. Quentin Burdick Center for Cooperatives was developed to educate young people about cooperatives and preparing them for cooperative careers. Both organizations report as to how the grant money is spent. X 0 0 0 Jodi Bullinger VP of Engineering & Operations 196420 0 30958 0 9386 0 159262 0 25321 0 421347 0 0 0 Marshal Albright CEO 325115 0 16280 0 12978 0 29700 0 30377 0 414450 0 0 0 Chad Sapa CFO 232033 0 35182 0 16658 0 25164 0 32939 0 341976 0 0 0 Paul Matthys VP of Member & Energy Services 185698 0 27925 0 17960 0 79165 0 28258 0 339006 0 0 0 Tim Sanden CIO/VP of Information Technology 182230 0 29723 0 20023 0 20056 0 32099 0 284131 0 0 0 Michael Mahlke Line Crew Foreman 141748 0 1158 0 1201 0 26762 0 23019 0 193888 0 0 0 Phil Lamb Line Crew Foreman 139035 0 1158 0 853 0 22006 0 2032 0 165084 0 0 0 Schedule J, Part II, Column C, Deferred Compensation Included in other compensation is the estimated current year increase in the actuarial value of the defined benefit plan. 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 received from the NRECA. The current year expense and the increase in actuarial value for each employee are reflected in the statement for Form 990, Part VII, Column f. Form 990, Part VI, Section A, line 6 CCEC has one class of members. A person is eligible to become a member of the cooperative effective the date the person initially uses or requests to use electric service and meets the requirements set forth in Article I of the Cooperative's Bylaws. Form 990, Part VI, Section A, line 7a One member, one vote. CCEC members have the right and authority to elect the Board of Directors. Three directors stand for election each year at the annual business meeting. Members also have the right to request a special meeting of the membership when the request is based on valid member demand. Members may consider, vote or act upon other matters as provided by applicable laws. Form 990, Part VI, Section A, line 7b CCEC membership has the right and authority to have the final decision role on the following matters: **The disposition of cooperative assets if proposed sale is over 5% of total assets during a 12-month period. No less than two-thirds of the entire membership must approved the proposed transfer. ** A proposed merger or consolidation; a majority of the members present and voting in person at the member meeting must approve the consolidation or merger. Form 990, Part VI, Section A, line 8b The Board of Directors is the sole body with governing authority over the Cooperative. All committees serve in an advisory capacity. Appropriate records are maintained of proceedings at all governance meetings as well as its advisory standing committees. Form 990, Part VI, Section B, line 11b Board policy 202 regarding Tax Status/Reporting establishes that following the initial preparation of the draft Form 990, the CFO and President/CEO must review the report and submit it to the Board of Directors for approval. The Board must approve the completed Form 990 before it is filed. Form 990, Part VI, Section B, line 12c CCEC Policy 110 Conflict of Interest requires Directors and employees of the Cooperative to disclose annually: **The receipt of any gifts, fees, loans or favors with a value in excess of $100; **Any business transaction that may be considered in competition with the cooperative or deemed a conflict of interest; **The policy also prohibits the use of non-public corporate information for financial or business opportunity benefit. ***Action: Should a conflict be disclosed the board must provide the director an opportunity to comment orally and in writing regarding the information or fact before making a determination. If the board determines that a director is not in compliance with the policy the board will act appropriately including the possibility of sanction, disqualification and/or removal. Legal counsel reviews disclosures. Individuals with a conflict must abstain from voting. Form 990, Part VI, Section B, line 15a At the board reorganization meeting held annually, the board reviews director compensation and benefits. The last review of director compensation was done in 2022. The most current NRECA Director Compensation Survey is provided for review. Note: this survey is done every other year (most current 2022) and was provided to the board in July 2022. A new survey will be conducted in 2024. A CEO evaluation of compensation is done annually by the Board of Directors during an executive session; the CEO is not present during the meeting. As established by Board Policy 105.4, the Board Compensation Committee collects, verifies and analyzes comparative data on compensation which is then provided and reviewed by the board (executive session minutes are kept by legal counsel). The board Chairman is responsible for discussing the outcome of the evaluation with the CEO. The last CEO evaluation occurred in March 2023. An annual performance appraisal is required for all employees; the appraisals on top management personnel are completed by the President/CEO in accordance with Board Policy 224. Local, regional and national wage and salary data is used to determine the wage scale, which is approved annually by the Board of Directors. Form 990, Part VI, Section C, line 19 The Cooperative's Bylaws and Articles of Incorporation are posted on the website (www.casscountyelectric.com). A paper copy is made available to any member upon request. The financial statements are mailed to all members of the Cooperative in the annual report issue of Cooperative's official newsletter, The Highline Notes. The Conflict of Interest Policy is available to the public upon request. Form 990, Part IX, Functional Expense, Line 24e Other Expenses: The salaries, 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 on line 24e in the amount of $(13,881,801). Form 990, Part IX, Functional Expense, Line 4 Benefits Paid to 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 Bylaws of the Cooperative. Form 990, Part XI, line 9: Other Changes in net assets-990 9,992,789. Retired Capital Credits to Patrons -4,180,520. Form 990, Part VII, Column F Estimated Amount of Other Compensation: Because Part IX, line 5 captures only the current year expense of the defined benefit plan of the Cooperative, the compensation in Part IX, line 5 is less than that reported in Part VII. Included in deferred compensation is the current year estimated increase in the actuarial value of the defined benefit plan for the following employees: Jodi Bullinger $144,952, Paul Matthys $65,886, Michael Mahlke $19,264, and Phillip Lamb $15,099. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the Cooperative. The current year expense for this defined benefit plan are as follows: Jodi Bullinger $50,904, Paul Matthys $45,864 Michael Mahlke $25,184, and Phillip Lamb $23,379.