2024-10-30T15:28:15-05:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2023-01-01 420389015 LYON RURAL ELECTRIC COOPERATIVE LYON 7124722506 116 SOUTH MARSHALL PO BOX 629 ROCK RAPIDS IA 51246 DAVID HUFF PRESIDENT 7124722506 2024-10-22 1 0 KATHERINE LUTZKE CPA P01760889 5072802300 2024-10-22 2023 2024-10-15 13:58:12Z DAVID HUFF 116 SOUTH MARSHALL PO BOX 629 ROCK RAPIDS IA 51246 13912694 0 X WWW.LYONREC.COOP X 1938 IA RURAL UTILITY SERVICE 9 9 13 0 1646 0 0 0 12152949 12664090 36244 165994 993413 892886 13182606 13722970 0 0 1268180 1366292 343069 272315 0 0 0 11571287 12084363 13182536 13722970 70 0 28323833 32909023 15562641 19066348 12761192 13842675 X THE PRIMARY OBJECTIVE OF LYON RURAL ELECTRIC COOPERATIVE IS TO PROVIDE THE HIGHEST QUALITY SERVICES POSSIBLE TO OUR MEMBER-CONSUMER AT THE LOWEST COST CONSISTENT WITH SOUND BUSINESS PRACTICES. SERVICES PROVIDED TO OUR MEMBER-CONSUMERS WILL BE EVALUATED AT AN ONGOING BASIS TO MEET THE CHANGING NEEDS OF OUR MEMBERSHIP WHILE BENEFITING THE LONG-RANGE OBJECTIVES OF THE COOPERATIVE. 0 0 PROVIDING RELIABLE AND AFFORDABLE ELECTRICAL SERVICE TO OUR MEMBER-CONSUMERS. THROUGH OUR LONG TERM PLANNING AND REINVESTMENT IN THE ELECTRICAL PLANT OUR MEMBERS ENJOYED A 99.99 % OF CONTINUOUS SERVICE IN 2023. LYON RURAL ELECTRIC COOPERATIVE RESIDENTIAL MEMBERS ENJOYED A RATE THAT RANKED IN THE LOWEST 10% PER KWH OF COOPERATIVES IN THE NATION, SMALL COMMERCIAL MEMBERS ENJOYED A RATE THAT RANKED IN THE LOWEST 35% PER KWH OF COOPERATIVES IN THE NATION AND LARGE COMMERCIAL MEMBERS ENJOYED A RATE THAT RANKED IN THE LOWEST 55% PER KWH OF COOPERATIVES IN THE NATION IN 2023, THE LATEST REPORTING PERIOD WITH COMPARABLE DATA. 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 0 0 0 0 0 0 0 0 0 0 0 1 16 0 13 1 1 1 0 0 0 0 12834205 940650 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 ROSS LOOMANS 7124722506 116 SOUTH MARSHALL STREET ROCK RAPIDS IA 51246 DAVID HUFF PRESIDENT 4.17 X X 6350 0 5 NOLAN KOOIKER VICE PRESIDENT 2.81 X X 4850 0 5 RODNEY MOGLER TREASURER 2.51 X X 5100 0 5 DAVID DE BOER SECRETARY 5.31 X X 9850 0 5 DAVID GRIESSE DIRECTOR 2.36 X 5550 0 5 DAMON PEDERSEN DIRECTOR 3.27 X 7350 0 5 ALLEN POPPENS DIRECTOR 4.33 X 6350 0 2 JESSE ROEMEN DIRECTOR 2.75 X 5850 0 5 JEREMY MULDER DIRECTOR 1.98 X 3700 0 0 ROSS LOOMANS GENERAL MANAGER 42.07 X 160314 0 57014 BRYAN HERUM LEAD LINEMAN 41.63 X 110823 0 48497 DUSTIN TIMMERMAN LINE FOREMAN 41.35 X 126122 0 54114 LARRY WIBBEN MEMBER SERVICES DIRECTOR 40.58 X 112508 0 46988 PATRICK WUBBEN LINEMAN 41.20 X 106222 0 48188 670939 0 254838 5 0 1 0 LOOSBROCK DIGGING SERVICE 221 W 4TH STREET LISMORE MN 56155 CABLE PLOWING, DIRECTIONAL BORING AND BA 530908 PROFESSIONAL COMPUTER SYSTEMS PO BOX 70 DENISON IA 51442 SOFTWARE SUPPORT AND DEVELOPMENT 130259 2 SALE OF POWER 221000 12664090 12664090 12664090 52423 52423 3564 0 3564 3564 3564 119500 5929 113571 113571 113571 188790 183795 4995 1646 3349 CAPITAL CREDITS 523000 884327 884327 884327 13722970 13548417 1646 172907 1366292 272315 698132 785347 COST OF POWER 8486722 ADMIN & GENERAL EXP 673859 DIST EXP - OPERATIONS 582120 DIST EXP - MAINTENANCE 445784 412399 13722970 225 18661 561420 651676 1333509 1141109 913717 2033541 117399 538131 36336481 16046657 17899190 20289824 7483954 8221821 7180 7180 7239 7080 28323833 32909023 1192140 1146313 69584 49790 14181977 17758665 118940 111580 15562641 19066348 X 0 0 0 0 12761192 13842675 12761192 13842675 28323833 32909023 X 0 1081483 X X 0 1 X 1 0 30526 30526 369601 390320 -20719 1810076 1314504 495572 34126278 14341833 19784445 20289824 PATRONAGE CAP IN ASSOC ORGS 7351054 C CFC CAPITAL TERM CERTS 304659 C CFC MEMBER CAPITAL SECS 350000 C ECONOMIC DEVELOPMENT LOANS 205119 C MEMBERSHIPS & OTHER INVESTS 10989 C 8221821 CONSUMER DEPOSITS 111580 111580 X 13722970 0 13722970 0 13722970 12356675 0 12356675 1366295 1366295 13722970 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE (IRC). ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED AT DECEMBER 31, 2023 AND 2022. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2023 AND 2022. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 1,366,292. ROUNDING 3. X 1 1 X X 0 0 0 ROSS LOOMANS GENERAL MANAGER 160314 0 0 0 0 0 37803 0 19211 0 217328 0 0 0 DUSTIN TIMMERMAN LINE FOREMAN 126122 0 0 0 0 0 30999 0 23115 0 180236 0 0 0 LARRY WIBBEN MEMBER SERVICES DIRECTOR 112508 0 0 0 0 0 27336 0 19652 0 159496 0 0 0 BRYAN HERUM LEAD LINEMAN 110823 0 0 0 0 0 26805 0 21692 0 159320 0 0 0 PATRICK WUBBEN LINEMAN 106222 0 0 0 0 0 25220 0 22968 0 154410 0 0 0 PART I, LINE 1A TRAVEL FOR SPOUSE WAS REIMBURSED TO THE COOPERATIVE. PART I, LINE 3 EACH DECEMBER THE BOARD OF DIRECTORS REVIEWS A COMPENSATION SURVEY FROM NRECA. THE BOARD THEN SETS THE GENERAL MANAGERS, MEMBER SERVICE DIRECTOR AND OFFICE MANAGER SALARIES. ALL OTHER EMPLOYEES ARE COVERED BY A UNION CONTRACT. FORM 990, PART VI, SECTION A, LINE 6 THERE IS ONE CLASS OF MEMBERS CONSISTING OF ALL ELECTRIC CUSTOMERS. ALL MEMBERS HAVE EQUAL VOTING RIGHTS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER VOTES FOR THEIR DISTRICT DIRECTOR AND TWO AT LARGE BOARD OF DIRECTORS. THERE IS ONE CLASS OF MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7B THE COOPERATIVE MEMBERS HAVE THE FOLLOWING RIGHT TO APPROVE DIRECTOR DECISIONS: AT THE MEETING THE MEMBERSHIP MAY AUTHORIZE THE SALE, LEASE, EXCHANGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF THE COOPERATIVE AND MAY FIX, OR MAY AUTHORIZE THE BOARD OF DIRECTORS TO FIX, ANY AND ALL OF THE TERMS AND CONDITIONS THEREOF AND THE CONSIDERATION TO BE RECEIVED BY THIS COOPERATIVE. SUCH AUTHORIZATION SHALL BE APPROVED IF TWO-THIRDS OF THE MEMBERS VOTE AFFIRMATIVELY ON A BALLOT ON WHICH A MAJORITY OF ALL VOTING MEMBERS OF THE COOPERATIVE PARTICIPATE. THE DIRECTORS BY THE VOTE OF 75 PERCENT OF THE DIRECTORS MAY ADOPT, ALTER, AMEND, OR REPEAL BYLAWS FOR THE COOPERATIVE, WHICH SHALL REMAIN IN FORCE AND EFFECT UNTIL ALTERED, AMENDED OR REPEALED BY VOTE OF 75 PERCENT OF THE MEMBERS PRESENT OR REPRESENTED HAVING VOTING PRIVILEGES, AT ANY ANNUAL MEETING OR SPECIAL MEETING OF THE MEMBERSHIP, OR AS OTHERWISE PROVIDED IN THE ARTICLES OF INCORPORATION OF BYLAWS. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES THAT HAVE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES THAT HAVE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE BOARD OF DIRECTORS WILL BE PROVIDED A DRAFT COPY OF THE 990 PRIOR TO THE BOARD MEETING. THE BOARD WILL DISCUSS THE DRAFT 990 AND APPROVE THE FINAL 990 AND AUTHORIZE THE PRESIDENT TO SIGN THE 990. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS AND EMPLOYEES OF THE COOPERATIVE ARE COVERED UNDER THE CONFLICT OF INTEREST POLICY. THE COOPERATIVE'S ATTORNEY REVIEWS ALL CONFLICT OF INTEREST DISCLOSURE STATEMENTS AND MAKES A REPORT TO THE BOARD OF DIRECTORS. THE POLICY STATES IT IS THE BOARD PRESIDENT'S RESPONSIBILITY TO ENFORCE THIS POLICY ON THE BOARD OF DIRECTORS AND THE GENERAL MANAGER'S RESPONSIBILITY TO ENFORCE THIS POLICY ON THE EMPLOYEES. CURRENTLY THE RETAINED ATTORNEY COLLECTS AND REVIEWS THE DISCLOSURE STATEMENTS AND REPORTS TO THE BOARD OF DIRECTORS. IF ANY CONFLICTS ARE DETERMINED TO EXIST, THERE ARE RESTRICTIONS PLACED ON THAT INDIVIDUAL. THE COOPERATIVE'S CONFLICT OF INTEREST POLICY STATES THESE RESTRICTIONS. ANY PROCEEDINGS RESULTING FROM CONFLICTS OF INTEREST ARE REPORTED TO THE BOARD OF DIRECTORS BY THE COOPERATIVE'S ATTORNEY, DURING A BOARD MEETING AND THE REPORT IS RECORDED IN THE MINUTES OF THE MEETING. FORM 990, PART VI, SECTION B, LINE 15A EVERY DECEMBER, THE SALARY FOR THE GENERAL MANAGER IS REVIEWED BY AND SET FOR THE NEXT YEAR BY THE BOARD OF DIRECTORS. THE NRECA NATIONAL COMPENSATION SURVEY IS USED TO HELP ESTABLISH THE SALARY. ALL SALARIES ARE APPROVED BY THE BOARD OF DIRECTORS AND THIS ACTION IS RECORDED IN THE BOARD MEETING MINUTES. THE PROCESS WAS LAST COMPLETED IN DECEMBER 2023. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: RETIREMENT OF PATRONAGE CAPITAL -287,795. CHANGE IN MEMBERSHIPS 35. OTHER EQUITY CHANGES 3,021. PATRONAGE DIVIDEND ALLOCATED 1,366,292. PRIOR PERIOD ADJUSTMENTS -70. FORM 990, PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT AUDITOR HAS NOT CHANGED. 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 AND IN PART XII ON SCHEDULE D.