2022-09-13T11:28:00-05:00 2021-12-31 410746749 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2021-01-01 410155615 BLUE EARTH-NICOLLET-FARIBAULT COOPERATIVE ELECTRIC ASSOCIATION BLUE 5073877963 PO BOX 8 MANKATO MN 560020008 DAVID SUNDERMAN CEO 5073877963 2022-08-25 1 DAVID SUNDERMAN 999009999 KATHERINE LUTZKE CPA P01760889 5072802300 2022-08-25 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z BENCO ELECTRIC COOPERATIVE DAVID SUNDERMAN PO BOX 8 MANKATO MN 560020008 50020225 0 X WWW.BENCO.ORG X 1937 MN SAFELY PROVIDE THE BEST POSSIBLE SERVICE, AT THE LOWEST POSSIBLE COST 9 9 48 0 14023 12148 0 0 44904369 47845679 226988 116149 827967 1721821 45959324 49683649 0 0 1353343 1460223 1042623 809283 0 0 0 42122077 43623871 44518043 45893377 1441281 3790272 118260844 123765879 73639763 75410095 44621081 48355784 TO SAFELY PROVIDE THE BEST POSSIBLE SERVICE, AT THE LOWEST POSSIBLE COST, CONSISTENT WITH SOUND BUSINESS MANAGEMENT. 0 0 SALE OF 343,954,516 KWH TO 19,365 ELECTRIC SERVICES. MAINTAINED 3,634 MILES OF UNDERGROUND AND OVERHEAD DISTRIBUTION LINES. 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 1 0 0 0 0 0 0 0 1 1 0 0 1 56 0 48 1 1 1 0 0 0 0 0 0 48877437 1849601 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 1 X ABBY DAHMS 5073877963 20946 549TH AVENUE PO BOX 8 MANKATO MN 56002 X WARREN SCOTT JOHNSON SECRETARY 5.31 0.00 X X 14310 0 0 GARY STENZEL DIRECTOR 4.98 0.00 X 10515 0 0 JOHN WELLS DIRECTOR 7.21 0.00 X 13350 0 0 MARILYN LYNCH TREASURER 7.42 0.00 X X 14165 0 0 TERRANCE GENELIN DIRECTOR 6.62 0.00 X 13115 0 0 DUANE EHRICH DIRECTOR 5.48 0.00 X 9465 0 0 BLAKE MESHKE CHAIRMAN 6.00 0.00 X X 13755 0 0 BRADLEY LEIDING VICE CHAIRMAN 5.21 0.00 X X 12520 0 0 DON WESTPHAL DIRECTOR 6.46 0.00 X 15105 0 0 DAVID SUNDERMAN CEO 40.00 0.00 X 243773 0 284657 ABBY DAHMS FINANCE MANAGER 40.00 0.00 X 113786 0 50767 TIM BRAULICK OPERATIONS & ENGINEERING MANAGER 40.00 0.00 X 137733 0 79150 CLAY HILL CREW CHIEF 40.00 0.00 X 124343 0 46082 DUANE HAGEN CREW CHIEF 40.00 0.00 X 126175 0 50974 PAUL CUMBEE CREW CHIEF 40.00 0.00 X 114708 0 75137 CHRISTOPHER BECTHOLD CREW CHIEF 40.00 0.00 X 117043 0 54756 1093861 0 641523 8 0 1 0 ZINNIEL UTILITY CONTRACTING INC 4 SOMSEN STREET NEW ULM MN 56073 INSTALL URD BORE/PLOW 1624016 CARR'S TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING 617147 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE ROAD PAYNESVILLE MN 56362 SUBSTATION BUILD 506583 MIDWEST UTILITY SERVICES LLC 8738 EGAN DRIVE SAVAGE MN 55378 SUB-CONTRACTOR FOR FEMA URD WORK 485901 STAR ENERGY SERVICES 6841 POWER LANE SW ALEXANDRIA MN 56308 MAPPING AND ENGINEERING SERVICES 380461 9 SALE OF POWER 221000 47845679 47845679 47845679 155606 155606 50218 89675 -39457 -39457 -39457 207992 246901 -38909 -38909 CAPITAL CREDITS 221000 1716692 1716692 OTHER NON-OPERATING 221000 27232 27232 HEARTLAND SECURITY SERVICES K-1 561700 14023 14023 2783 2783 1760730 49683649 49553477 14023 116149 1460223 809283 1958550 3670385 COST OF POWER 30201126 DISTRIBUTION EXPENSE - 3189295 DISTRIBUTION EXPENSE - 2312325 ADMINISTRATIVE AND GENE 823464 1468726 45893377 12298163 11032484 4738157 5773781 193470 170929 1065874 1238676 304702 295009 136086726 53607127 77597837 82479599 1146886 1052772 20561067 21506170 8827 8827 345861 207632 118260844 123765879 6727614 7365927 343182 440942 64794610 66336910 1774357 1266316 73639763 75410095 X 0 0 0 0 44621081 48355784 44621081 48355784 118260844 123765879 X 3790272 -55569 X X 0 1 X 1 1 1 344282 344282 5200239 1519121 3681118 7120478 5573798 1546680 123421727 46514208 76907519 82479599 PATRONAGE CAPITAL IN ASSOC ORGANIZATIONS 20103692 C NRUCFC 1320446 C OTHER INVESTMENTS IN ASSOC ORGANIZATIONS 82032 C 21506170 ASSET RETIREMENT OBLIGATION 9550 ACCUM PROVISION FOR PENSION AND BENEFITS 1253979 CONSUMER DEPOSITS 2787 1266316 X 49669626 0 49669626 14023 14023 49683649 44433154 0 44433154 1460223 1460223 45893377 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED AT DECEMBER 31, 2021 AND 2020. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2021 AND 2020. PART XI, LINE 4B - OTHER ADJUSTMENTS: HEARTLAND SECURITY SERVICES K-1 14,023. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 1,460,223. X X 0 1 X X X 0 0 0 DAVID SUNDERMAN CEO 243773 0 0 0 0 0 255185 0 29472 0 528430 0 0 0 TIM BRAULICK OPERATIONS & ENGINEERING MANAGER 137733 0 0 0 0 0 50768 0 28382 0 216883 0 0 0 PAUL CUMBEE CREW CHIEF 114708 0 0 0 0 0 50042 0 25095 0 189845 0 0 0 DUANE HAGEN CREW CHIEF 126175 0 0 0 0 0 37492 0 13482 0 177149 0 0 0 CHRISTOPHER BECTHOLD CREW CHIEF 117043 0 0 0 0 0 29661 0 25095 0 171799 0 0 0 CLAY HILL CREW CHIEF 124343 0 0 0 0 0 32600 0 13482 0 170425 0 0 0 ABBY DAHMS FINANCE MANAGER 113786 0 0 0 0 0 22670 0 28097 0 164553 0 0 0 PART I, LINE 1A THE ASSOCIATION PROVIDES TRAVEL FOR THE CEO'S SPOUSE TO THE NRECA ANNUAL MEETING. AS PART OF DAVID SUNDERMAN'S COMPENSATION, THE COOPERATIVE PAYS THE MONTHLY SOCIAL CLUB DUES TO THE MANKATO GOLF CLUB. THIS IS A REQUIRED MEMBERSHIP AS PART OF THE JOB AS THE CEO OF BENCO COOPERATIVE. PART I, LINE 1B THE BOARD OF DIRECTORS HAS TO APPROVE TRAVEL FOR THE CEO'S SPOUSE. PART I, LINE 3 SURVEYS OF COMPARABLE MINNESOTA ELECTRIC COOPERATIVES ARE CONDUCTED AND USED TO DETERMINE EXECUTIVE COMPENSATION. THERE ARE NO WRITTEN CONTRACTS FOR EXECUTIVES. THERE IS ALSO A PERFORMANCE REVIEW IN THE COMPENSATION PROCESS. THE BOARD MEETS TO DISCUSS THE SALARY OF THE CEO, USING NRECA'S COMPENSATION DATA ANNUALLY. DOCUMENTATION FOR SALARY DETERMINATIONS ARE KEPT IN THE PERSONNEL FILES. THE MOST RECENT PROCESS WAS COMPLETED IN 2021. FORM 990, SCHEDULE J, PART II, COLUMN C: THE COOPERATIVE HAS INTERPRETED THE INSTRUCTIONS FOR COLUMN C TO INCLUDE THE INCREASE IN THE ACTUARIAL VALUE OF PLAN ASSETS ATTRIBUTABLE TO THE LISTED COOPERATIVE OFFICER OR HIGHLY COMPENSATED EMPLOYEE. THE COOPERATIVE IS A PARTICIPANT IN THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA) RETIREMENT SECURITY PLAN (RS PLAN) WHICH IS A DEFINED BENEFIT PLAN QUALIFIED UNDER SECTION 401 AND TAX-EXEMPT UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE. IT IS A MULTI-EMPLOYER PLAN UNDER THE ACCOUNTING STANDARDS. ALL FULL-TIME EMPLOYEES OF THE COOPERATIVE ARE COVERED BY THE PLAN AFTER A 12 MONTH WAITING PERIOD. THE COOPERATIVE MAKES CONTRIBUTIONS TO THE PLAN BASED ON A PERCENTAGE OF THE PRIOR YEAR REGULAR TIME EARNINGS OF EACH EMPLOYEE. FOR 2021, THE COOPERATIVE MADE CONTRIBUTIONS TO THE PLAN ON BEHALF OF THE LISTED EMPLOYEES. COLUMN C INCLUDES THE ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE PLAN ASSETS ATTRIBUTABLE TO THESE EMPLOYEES. THE AMOUNTS FOR DAVID SUNDERMAN ARE: RS PENSION CONTRIBUTIONS: $45,664; INCREASE IN ACTUARIAL VALUE OF PLAN ASSETS: $237,963. GARY STENZEL BOARD MEMBER 25732816 GARY STENZEL WAS A BOARD MEMBER OF GREAT RIVER ENERGY WHICH IS THE COOPERATIVES POWER SUPPLIER. 0 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE IS COMPRISED OF A SINGLE CLASS OF APPROXIMATELY 15,703 MEMBER-OWNERS, EACH OF WHICH HAS EQUAL RIGHTS IN OWNERSHIP, GOVERNANCE, AND VOTING RIGHTS AT THE ANNUAL MEETING, WITH THE EXCEPTION OF MEMBER-OWNERS WHO ARE ELECTED TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER-OWNERS OF THE COOPERATIVE HAVE THE AUTHORITY TO ELECT THE MEMBERS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE GOVERNING DOCUMENTS (BYLAWS AND ARTICLES OF INCORPORATION) MUST BE APPROVED BY THE MEMBER-OWNERS AFTER THEY HAVE BEEN APPROVED BY THE BOARD OF DIRECTORS. APPROVAL OCCURS WHEN AT LEAST 50% OF THE MEMBER-OWNERS VOTING TO APPROVE. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH BOARD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. ALL COMMITTEE RECOMMENDATIONS ARE TAKEN TO THE FULL BOARD FOR ACTION. FORM 990, PART VI, SECTION B, LINE 11B THE LEADERS OF EVERY DEPARTMENT, CEO, AND BOARD OF DIRECTORS WILL REVIEW THE 990 PRIOR TO SUBMITTING IT TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE COOPERATIVE MAINTAINS A WRITTEN POLICY AS TO WHAT INCLUDES A CONFLICT OF INTEREST AND HOW ANY POTENTIAL ISSUES WILL BE HANDLED. BOARD POLICY STATES THAT DIRECTORS MUST DISCLOSE ANY POSSIBLE CONFLICTS OF INTEREST. THE POLICY COVERS ALL DIRECTORS AND EMPLOYEES. DETERMINATIONS OF WHETHER A CONFLICT EXISTS AND REVIEW OF POTENTIAL CONFLICTS ARE MADE BY THE BOARD OF DIRECTORS FOR BOARD MEMBERS AND THE CEO, DEPARTMENT HEADS FOR EMPLOYEES, AND CEO FOR DEPARTMENT HEADS. FORM 990, PART VI, SECTION B, LINE 15 SURVEYS OF COMPARABLE MINNESOTA ELECTRIC COOPERATIVES ARE CONDUCTED AND USED TO DETERMINE EXECUTIVE COMPENSATION. THERE ARE NO WRITTEN CONTRACTS FOR EXECUTIVES. THERE IS ALSO A PERFORMANCE REVIEW IN THE COMPENSATION PROCESS. THE BOARD MEETS TO DISCUSS THE SALARY OF THE CEO, USING NRECA'S COMPENSATION DATA ANNUALLY. DOCUMENTATION FOR SALARY DETERMINATIONS ARE KEPT IN THE PERSONNEL FILES. THE MOST RECENT PROCESS WAS COMPLETED IN 2021. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST AND PUBLISHED WITH THE ANNUAL REPORT TO MEMBERS. FORM 990, PART VII, SECTION A, COLUMN (F): INCLUDED IN COLUMN F, ESTIMATED AMOUNT OF OTHER COMPENSATION, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THE ESTIMATED INCREASE IS $237,963 FOR DAVID SUNDERMAN. THE AMOUNT IS AN ESTIMATE IN THE INCREASE OF THE VALUE OF THE PLAN AND IS NOT CURRENT YEAR EXPENSE OF THE COOPERATIVE. THE CURRENT YEAR EXPENSE FOR THIS DEFINED BENEFIT PLAN WAS $45,664. FORM 990, PART XI, LINE 9: CAPITAL CREDITS RETIRED -1,502,737. MEMBERSHIP CHANGES 968. PATRONAGE DIVIDENDS ALLOCATED 1,460,223. HEARTLAND SECURITY SERVICES K-1 -14,023. FORM 990, PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT 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 13 OF THE FORM 990 AND IN PART XII ON SCHEDULE D. BENCO ELECTRIC TRUST PO BOX 8 MANKATO MN 56002 411985835 CHARITABLE MN 501(C)(3) LINE 7 BENCO ELECTRIC COOPERATIVE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0