2024-07-02T12:10:27-07:00 2023-12-31 990 2023-01-01 910143426 BENTON RURAL ELECTRIC ASSOCIATION BENT 5097862913 PO Box 1150 Prosser WA 99350 Lori Cotsford Financial Services Assistant 5097862913 2024-06-05 Lori Cotsford 999009999 1 1 11 0 AAL2 2023 2023-04-26 12:10:37Z Ryan Redmond 402 7th Street Prosser WA 99350 46580456 0 X www.bentonrea.org X 1937 WA Distribution of Electricity to Rural Cooperative members. 8 8 83 0 1095276 0 0 0 44968141 45324322 144274 160858 1186462 1095276 46298877 46580456 0 0 3573055 4147348 2550225 12177343 0 0 0 40175597 30255765 46298877 46580456 0 0 99959679 107365688 12827032 16119238 87132647 91246450 Provide safe and reliable electricity at the lowest possible cost to the cooperative membership. 0 0 The Benton Rural Electric Association (Benton REA) is a not for profit member owned electric cooperative. It has approximately 11933 member/owners to whom it delivers electricity through its distribution system. The sale and distribution of electric service is the main program service. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 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 0 0 0 1 134 0 1 83 1 1 1 0 0 0 0 45474978 917493 0 0 0 X 8 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Steve Catlow 5097862913 Benton Rural Electric Association 402 7th Street Prosser WA 99350 Joel Mietzner System Engineer 58.00 0 X 384828 0 40602 Troy Berglund Deputy GM & VP of Member Experience 50 0 X 264134 0 53896 Derek Miller Engineering Manager 50 0 X 262247 0 52710 Christopher Hill Line Foreman 63 0 X 247574 0 44050 Jeff Bastow Information Technology Manager 40 0 X 232338 0 52240 Steven Catlow Vice President of Finance 40 0 X 226108 0 35350 Larry Hall Journeyman Lineman 55.5 0 X 199702 0 44419 Richard Johnson Journeyman Lineman 54 0 X 193609 0 44060 Jeb Knox Operations Manager 43 0 X 174926 0 47448 Ryan Redmond Chief Executive Officer 50.0 0 X 136206 0 26610 Michael Freepons Vice President 2.00 0 X X 15010 0 270 Catherine Russell Secretary/Treasurer 4 0 X X 11210 0 235 Ron Johnson Trustee 4.00 0.00 X 9690 0 235 Daniel Plung Trustee 3 0 X 9310 0 235 Tim Grow Trustee 10 0 X 8550 0 252 George Theodore Wallace Trustee 6 0 X 7125 0 157 Scott Fisher Trustee 3.00 0 X 7030 0 235 Robert Evans President 4.0 0 X X 6555 0 174 2396152 0 443178 37 0 1 0 Palouse Power LLC PO Box 356 Quincy WA 98848 Contract Labor 1304183 Boyd's Tree Service 6350 W Brinkley RD Suite 120 Kennewick WA 99338 Tree Trimming 484881 Leone & Keeble INC 108 W Boone Ave Spokane WA 99201 General Contractor 134672 Valley Transformer INC PO Box 35 Otis Orchards WA 99027 Transformer Repair 167843 4 0 Sale of Electricity 221000 45136337 45136337 0 0 Pole Rental 531390 187985 0 0 187985 0 0 0 0 45324322 159658 0 0 159658 0 0 0 0 0 0 0 0 0 0 0 1200 0 0 0 1200 1200 1200 0 0 Internet Service Provider 517000 1095276 0 1095276 0 0 0 0 0 1095276 46580456 45137537 1095276 347643 4147348 1355908 0 7865028 757711 1527818 670878 48346 3291787 Purchased Power 23434319 Operations/Maintenance 6161900 Administrative & Customer Accounts/Service 6068884 Payroll Expense included line 6-10 -10821435 2071964 46580456 0 0 0 1957111 2509148 1240000 1880000 4908448 4270790 3695526 3843340 218115 287690 143911186 51513696 85515349 92397490 2425130 2177230 99959679 107365688 7885486 9611603 631945 1094908 4309601 5412727 12827032 16119238 X 0 0 3760080 4866447 83372567 86380003 87132647 91246450 99959679 107365688 X 0 0 0 0 0 4113803 X 0 1 X 1 0 0 2149950 2149950 0 2685544 1409524 1276020 0 0 0 0 10220773 0 8383102 1837671 128854919 0 41721070 87133849 92397490 Deferred Credits 4672912 Deferred Compensation 461894 Retired Managers Obligation 118499 Retiree Sick Leave Conversion 159422 5412727 X 46580456 0 0 0 0 0 46580456 0 0 0 46580456 42433108 0 0 0 0 0 42433108 0 4147348 4147348 46580456 Schedule D, Part X, Line 2 The Cooperative is exempt from all federal and state income taxes undersection 501(c)(12) of the Internal Revenue Code while functioning for the benefits of its members. The Cooperative adopted Accounting Standards Codification (ASC) 740-10, relating to accounting for uncertain tax positions. The Cooperative does not have any uncertain tax positions. Schedule D, Part XII, Line 4b To conform to the 2011 990 change in section IX line 4: The Cooperative reported year end margins as an expense in section IX line 4. All margins are annually allocated to the membership based on their patronage. The amount was reported as net margins on the audited financial statements. To reconcile the audited financials to the amount reported on the 990 we have shown the net margins on line 4b of Part XII. X 0 0 0 Ryan Redmond Chief Executive Officer 114786 0 21420 0 0 0 12835 0 13775 0 162816 0 0 0 Joel Mietzner System Engineer 240683 0 144145 0 0 0 16893 0 23709 0 425430 0 0 0 Troy Berglund Deputy GM & VP of Member Experience 246725 0 17409 0 0 0 25352 0 28541 0 318027 0 0 0 Derek Miller Engineering Manager 228009 0 34238 0 0 0 23878 0 28832 0 314957 0 0 0 Christopher Hill Line Foreman 247574 0 0 0 0 0 15969 0 28081 0 291624 0 0 0 Jeff Bastow Information Technology Manager 202715 0 29623 0 0 0 23473 0 28767 0 284578 0 0 0 Steven Catlow Vice President of Finance 198522 0 27586 0 0 0 21639 0 13711 0 261458 0 0 0 Larry Hall Journeyman Lineman 199702 0 0 0 0 0 16300 0 28119 0 244121 0 0 0 Jeb Knox Operations Manager 172426 0 2500 0 0 0 19116 0 28332 0 222374 0 0 0 Richard Johnson Journeyman Lineman 193609 0 0 0 0 0 15969 0 28091 0 237669 0 0 0 Schedule J, Part I Most Rural Electric Cooperatives in the nation offer a defined benefit pension plan program which guarantees that an employee will receive, upon reaching their normal retirement date, a defined pension benefit based on years of service and a percentage of salary. The Benton Rural Electric Association (Benton REA) chose not to implement the defined benefit retirement program for their employees due to the typical high cost. However, to remain competitive in the job market and to retain and recruit for professional positions, Benton REA identified key positions and developed a program to supplement the company's 401k program for these positions. The individuals listed on the Form J as officers and highly compensated employees represent employees within these key positions. As such they receive as part of their compensation; taxable bonuses paid every year that are paid out through a managers compensation program in lieu of company contributions to the otherwise expensive defined benefit programs. The managers compensation program ends for the individual employees if they leave the company for any reason including retirement. Form 990, Part I, Line 14 To comply with the 2011 change to Part IX #4 "patronage dividends paid by section 501(c)(12) organization to their members", we have included the Cooperatives year ending net margins in the Statement of Functional Expense as benefits being paid to members. GAAP does not recognize this as an expense but is being reported as such to comply with the noted change. Pursuant to the Articles and Bylaws of the Cooperative, we fully allocate previous yar ending margins to the individual Patronage Capital accounts of the membership. Form 990, Part VI, Section A, Line 6 The organization is an electric distribution cooperative consisting of approximately 11,933 members who purchase electricity from the cooperative, and each has a Patronage Capital (equity) account based upon electrical usage. Form 990, Part VI, Section A, Line 7a The members elect the board of trustees which make up the governing body. The members approve the articles of incorporation and any changes thereto. Form 990, Part VI, Section A, Line 7b The members elect the board of trustees which make up the governing body. The members approve the articles of incorporation and any changes thereto. Form 990, Part VI, Section B, Line 11b The governing body did receive a copy of the 990 for review before it was filed. After the financials were audited the 990 was reviewed by the governing body at the regular June 2024 monthly board meeting. The Cooperative's independent auditors also received a copy of the 990 and it was reviewed by them before filing. Form 990, Part VI, Section B, Line 12c The Cooperative requires an annual survey for the prior year to be completed by all Trustees, Officers, Key Employees, and Highly Compensated to disclose any potential conflicts of interest that may have existed. Pursuant to the corporation bylaws section 3.04.3(a): In all circumstances, Trustees are under a continuing obligation to disclose to the full Board of Trustees any situation that presents the possibility of a conflict or disparity of interest either directly or indirectly between them and the Association. Form 990, Part VI, Section B, Line 15 Annually the cooperative participates in a regional survey to determine fair and competitive compensation of all non-union employees as compared to other utilities which hold similiar positions. The CEO, tip management officers, highly compensated and key employees are among those positions in the survey. The Board of Trustees then reviews the results of the survey and determines the wage increase if any for the following year The Fall of 2023 was the latest survey. Form 990, Part VI, Section C, Line 19 The Benton Rural Electric Association is a not-for-profit member owned electric cooperative. As a private electric cooperative, the member owners of Benton REA have full access to financial statements, all policies and governing documents. All members receive a copy of the bylaws, which are also on the Benton REA website. Benton REA conducts and annual membership meeting, in which the annual financial statements are posted and presented to the membership. Plus, each Benton REA member receives a monthly magazine (Ruralite) that includes financial statements annually. Any margins the Benton REA has are allocated to the members who purchase electricity in that year, and those members receive a mailed notice of their allocation. A file of record in kept for each membership, which includes all allocations of margins and ay patronage capital payments made to the corresponding member. Form 990, Part XI, Line 9 As part of being a not-for profit member owned cooperative, the Benton Rural Electric allocates any margins at year end. The Benton REA Board of Trustees then decides to retire all or a portion of those allocated margins. The cooperative as directed by the Board of Trustees have retired (paid to membership) a portion of the current allocated margins. This retirement results in a change to the Total Net Assets or Fund Balances ending amount. To comply with the 2011 Change to Part IX #4 we have netted the year ending margins against the retired portion of current allocated margins plus reacquired patronage capital (4,147,348-1,139,912+1,106,367= $4,113,803) this allows the cooperative to reconcile net assets for end of year 2023 line #10.