Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: SALE OF POWER

  total $51,500,695 · related or exempt $51,500,695

• 3 · Investment income

  total $569,892 · excluded $569,892

• 6a · Gross rents

  real property $3,280

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $3,280

• 6d · Net rental income or loss

  total $3,280 · excluded $3,280

• 7a · Gross sales of assets other than inventory

  other assets $1,500

• 7b · Less cost or other basis and sales expenses

  other assets $46,244

• 7c · Gain or loss

  other assets -$44,744

• 7d · Net gain or loss

  total -$44,744 · excluded -$44,744

• 10a · Gross sales of inventory

  $131,082

• 10b · Cost of goods sold

  $212,069

• 10c · Net income from sales of inventory

  total -$80,987 · related or exempt -$80,987

• 11a · Other revenue: CAPITAL CREDITS

  total $1,861,872 · related or exempt $1,861,872

• 11b · Other revenue: HEARTLAND SECURITY SERVICES K-1

  total $54,541 · unrelated business $54,541

• 11c · Other revenue: OTHER NON-OPERATING

  total $35,537 · related or exempt $35,537

• 11e · Other revenue, total

  $1,951,950

Functional expenses

Part IX, the statement of functional expenses.

• 4 · Benefits paid to or for members

  total $6,712,145

• 5 · Compensation of officers, directors and key employees

  total $713,702

• 20 · Interest

  total $2,124,494

• 22 · Depreciation, depletion and amortization

  total $4,037,520

• 24a · Other expenses: COST OF POWER

  total $32,187,851

• 24b · Other expenses: DISTRIBUTION EXPENSE -

  total $3,178,881

• 24c · Other expenses: DISTRIBUTION EXPENSE -

  total $2,254,702

• 24d · Other expenses: ADMINISTRATIVE AND GENE

  total $1,230,400

• 24e · All other expenses

  total $1,421,086

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $14,184,680 · end of year $7,858,663

• 4 · Accounts receivable

  beginning of year $6,391,072 · end of year $5,628,363

• 7 · Other notes and loans receivable

  beginning of year $147,937 · end of year $124,486

• 8 · Inventories for sale or use

  beginning of year $3,669,315 · end of year $3,284,454

• 9 · Prepaid expenses and deferred charges

  beginning of year $285,580 · end of year $263,632

• 10a · Land, buildings and equipment: cost or other basis

  $155,131,625

• 10b · Land, buildings and equipment: accumulated depreciation

  $57,577,778

• 10c · Land, buildings and equipment, net

  beginning of year $86,997,013 · end of year $97,553,847

• 12 · Investments: other securities

  beginning of year $1,042,789 · end of year $1,004,557

• 13 · Investments: program-related

  beginning of year $25,006,666 · end of year $28,651,018

• 14 · Intangible assets

  beginning of year $8,827 · end of year $8,827

• 15 · Other assets

  beginning of year $48,921 · end of year $0

• 17 · Accounts payable and accrued expenses

  beginning of year $7,205,617 · end of year $7,908,635

• 19 · Deferred revenue

  beginning of year $332,340 · end of year $3,090,883

• 23 · Secured mortgages and notes payable

  beginning of year $76,610,769 · end of year $74,905,176

• 25 · Other liabilities

  beginning of year $1,188,279 · end of year $950,881

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $52,445,795 · end of year $57,522,272

The filer's explanations (Part III)

PART I, LINE 1A

THE COOPERATIVE PROVIDES TRAVEL FOR THE CEO'S SPOUSE TO ATTEND 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 ELECTRIC 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 OF DIRECTORS MEET 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 2023.

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 ELIGIBLE EMPLOYEES OF THE COOPERATIVE ARE COVERED BY THE PLAN AFTER A 12 MONTH WAITING PERIOD, ARE 21 YEARS OF AGE, AND HAVE ATTAINED 1,000 HOURS WITH THE COOPERATIVE. THE COOPERATIVE MAKES CONTRIBUTIONS TO THE PLAN BASED ON A PERCENTAGE OF THE PRIOR YEAR REGULAR TIME EARNINGS OF EACH EMPLOYEE. FOR 2023, 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: $50,020; INCREASE IN ACTUARIAL VALUE OF PLAN ASSETS: $91,572.