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TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is atwww.irs.gov/form990.
OMB No. 1545-0047
2015
Open to Public
Inspection
Inspection
Name of the organization
Dakota Valley Electric Cooperative Inc
Employer identification number
45-0454206
45-0454206
| Return Reference | Explanation |
|---|---|
| Form 990, Part VI, Section A, line 2 | All board members and officers have a business relationship with each other as each board member and officer also served on the board of Dakota Valley Services Corporation. |
| Form 990, Part VI, Section A, line 3 | Management duties are performed by the related management company, Cooperative Alliance Management (CAM). From January to September of 2015 Bruce Garber and Darrin Sand were employed by CAM, acting as Co-General Managers for Dakota Valley Electric Cooperative, Inc and Northern Plains Electric Cooperative, Inc. As of September 2015 Darrin Sand resigned and Bruce Garber became General Manager for both cooperatives. CAM has an internal hiring process in place for the selection of the General Manager. Boards of Dakota Valley and Northern Plains each separately address any questions or procedures associated with the General Manager employed by CAM and instruct their CAM director representatives. The two CAM director representatives from each Board will then meet to discuss issues involving the manager. When the four CAM director representatives (following instructions from their separate Boards) are in agreement, they will take action on a General Manager issue. The action of the CAM director representatives is subject to further review and ratification by the associated Boards. Due to the management company being a related organization their full compensation is reflected in Part VII for their services as General Manager of both organizations. Each Cooperative pays 50% of each of their compensation as a part of the management agreement. |
| Form 990, Part VI, Section A, line 6 | There is only one class of members. They all have the same rights, which entitles them to one vote. |
| Form 990, Part VI, Section A, line 7a | Members elect the Board of Directors. There are nine separate districts, and each district can vote in one person to the Board. The director must live in the district in which he/she is serving. |
| Form 990, Part VI, Section A, line 7b | There are several major decisions that require member approval. They include decisions to change the bylaws, elect directors, decisions to merge or consolidate, and the decision to sell, lease, transfer or otherwise dispose of the physical plant in excess of 5% of the Cooperative's value. |
| Form 990, Part VI, Section A, line 8b | The Cooperative does not have any committees with the authority to act on behalf of the full Board of Directors. |
| Form 990, Part VI, Section B, line 11 | Copies of the Form 990 will be provided to the board members at a Board meeting. The 990 will be reviewed and approved for filing at the board meeting. |
| Form 990, Part VI, Section B, line 12c | The employee conflict of interest policy is administered and enforced by the Manager. The Manager would restrict employee involvement in any Cooperative activity for which the employee has a conflict of interest. Directors are covered by the Board conflict of interest policy; the Chairman or Vice-Chairman reviews the responses in order to determine whether issues need to be addressed by the full Board. The Board will determine restrictions on a case by case basis. |
| Form 990, Part VI, Section B, line 15 | The Board of Directors of Dakota Valley and Northern Plains Electric Cooperative, on an annual basis, each separately conduct a Manager evaluation and address the subject of Manager compensation prior to the annual Cooperative Alliance Management (CAM) annual meeting. The Boards will routinely consult data on North Dakota REC Manager compensation packages to compare with CAM Managers' compensation. Each Board will instruct their CAM director representatives regarding Manager evaluation and compensation adjustment. The two CAM director representatives from each Board will place the subjects of Manager evaluation and salary on the agenda of the CAM annual meeting. When the four CAM director representatives, following instructions from their separate Boards, are in agreement, they will take action on Manager evaluation and salary issues. The action of the CAM director representatives is subject to further review and ratification by the associated Boards as they approve the monthly billing agreement for CAM. The CAM director officers will document the compensation decision arrived at during the CAM annual meeting. This authorizing document is kept as a record of the CAM annual meeting. There are no written employment contracts. This was done a little differently in 2015 with the change in management, a review and salary adjustment was done in February of 2015 and then again in September of 2015 because of Darrin's resignation. The Business Manager's compensation is reviewed by management using comparability data as well. |
| Form 990, Part VI, Section C, line 19 | The bylaws and articles of incorporation are mailed out to new members. Any changes that are made to the bylaws are mailed to members prior to approval by the members. Year end annual financial statements are provided to all members. The conflict of interest policy, articles of incorporation and bylaws can also be found on Dakota Valley Electric Cooperative's website. |
| Form 990, Part VII, Section A, Column (F): | Compensation of Officers: Included in Part VII, Section A, Column "F", estimated amount of other compensation is the estimated annual increase in the actuarial value of the defined benefit plan. For the following individuals listed, the estimated increase is: Bruce Garber: $35,653 Darrin Sand: $35,136 Kelly Wald: $42,359 This amount is an estimate in the increase of the value of the plan and is not current year expenses of the Cooperative. Current year contributions into the defined benefit plan by Cooperative Alliance Management were: Bruce Garber: $46,838 Darrin Sand: $37,756 Current year contributions into the defined benefit plan by Dakota Valley Electric Cooperative was: Kelly Wald: $25,657 |
| Form 990, Part VII, Section A: | Darrin Sand and Bruce Garber Compensation: Bruce Garber and Darrin Sand are employed by Cooperative Alliance Management (CAM), a related management company of which the Cooperative has 50% ownership in. Part VII includes 100 percent of their compensation paid by the management company. However, only 50 percent of the compensation is attributable to duties performed for Dakota Valley Electric Cooperative, Inc. The hours reflected in Part VII are solely attributable to their duties performed for Dakota Valley Electric Cooperative, Inc. They spend an additional 20 hours a week to their duties performed for Northern Plains, an unrelated cooperative. |
| Form 990, Part IX, Statement of Functional Expenses, Line 24d: | 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 on line 24d in the amount of $(3,905,139). |
| Form 990, Part IX, Statement of Functional Expenses, 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: | Earnings from Wholly Owned Subsidiary 21,812. Retirement of Capital Credits -533,654. Patronage Capital Credits Allocated During Current Year 3,605,708. Pship Income per K-1 - ND Small Business Investment Co 67. Pship Income per K-1 - CAM -2,415. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2015
Additional Data
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