Post on 30-May-2020
ANNUAL FINANCIAL REPORT
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AGTEGRA COOPERATIVE
Aberdeen, South Dakota
PERSONNEL AND ORGANIZATIONAL DATA
July 31, 2018
OFFICERS AND DIRECTORS
Name Address District Term Expires Position
Hal Clemensen ......... Aberdeen, SD..................... District 1 ............ 2018 ...................... President
Joel Erickson ........... Langford, SD ..................... District 1 ............ 2018 ........................ Director
Marlin Nilsson ......... Mansfield, SD .................... District 1 ............ 2018 ........................ Director
Phillip Shanley ........ Warner, SD ........................ District 1 ............ 2018 ........................ Director
Lance Hanson .......... Groton, SD ......................... District 1 ............ 2019 ........................ Director
Matt Johnson ........... Webster, SD ....................... District 1 ............ 2019 ........................ Director
Glen Crawford ......... Aberdeen, SD..................... District 1 ............ 2020 ........................ Director
Mark Bushfield ........ Hitchcock, SD .................... District 2 ............ 2019 ........................ Director
Ron Frericks ............ Northville, SD.................... District 2 ............ 2019 . Second-Vice President
Wallace Knock ........ Willow Lake, SD ............... District 2 ............ 2020 ...................... Secretary
Jeff Lakner............... Wessington, SD ................. District 2 ............ 2020 ........................ Director
Chris Eymer ............. Reliance, SD ...................... District 3 ............ 2018 ........................ Director
David Salmen .......... Wessington Springs, SD .... District 3 ............ 2018 ........................ Director
Dale Swanson .......... Pukwana, SD ..................... District 3 ............ 2019 ........................ Director
Mike Clements ......... Miller, SD .......................... District 3 ............ 2020 ........................ Director
Steve Halverson ....... Pierre, SD .......................... District 3 ............ 2020 ........................ Director
Colby Beck .............. Artas, SD ........................... District 4 ............ 2018 ........................ Director
Dan Malsam ............. Roscoe, SD ........................ District 4 ............ 2018 ........................ Director
Larry Vetch.............. Onaka, SD.......................... District 4 ............ 2018 ........................ Director
Nathan Davis ........... Ipswich, SD ....................... District 4 ............ 2019 ........................ Director
Dale Gill .................. Java, SD ............................. District 4 ............ 2019 ........................ Director
Derek Merkel ........... Leola, SD ........................... District 4 ............ 2019 ........................ Director
Steve Pfeifer ............ McLaughlin, SD ................ District 4 ............ 2019 ........................ Director
Quentin Larson ........ Pollock, SD ........................ District 4 ............ 2020 ........................ Director
Rick Osterday .......... Java, SD ............................. District 4 ............ 2020 ..... First-Vice President
Ken Rau ................... Mobridge, SD .................... District 4 ............ 2020 ........................ Director
LEADERSHIP TEAM
Name Position
Chris Pearson .......................................................................................... Chief Executive Officer
Mike Nickolas.................... Executive Vice-President & Chief Operating Officer, Grain Division
John Husk ............................................................................................... Chief Operating Officer
Blake Bomesberger .................................................................................. Chief Financial Officer
Dan Rosenbaum ................................................................................... Chief Information Officer
Tracy Linbo ............................ Senior Vice-President, Agronomy, Communications & Marketing
Judy Stulken .............................. Senior Vice-President, Organizational & Member Development
ORGANIZATIONAL DATA
Articles of Incorporation ...................................................................... Restated February 1, 2018
Under the Code of ............................................................................... South Dakota, as Amended
Federal Identification Number ................................................................................... 46-0191930
10555 New York Ave., Suite 200 • Des Moines, IA 50322-3793 • Phone: (515) 270-1446 • Fax: (515) 270-1811 • www.gardinercpa.com
Independent Auditor’s Report
To the Board of Directors
Agtegra Cooperative
Aberdeen, South Dakota
We have audited the accompanying consolidated financial statements of Agtegra Cooperative,
Aberdeen, South Dakota, which comprise the consolidated balance sheet as of July 31, 2018,
and the related consolidated statements of savings, members’ equity and cash flows for the year
then ended, and the related notes to the consolidated financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statement in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation and maintenance of internal
control relevant to the preparation and fair presentation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audits. We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on the
auditor’s judgment, including assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the consolidated financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
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Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Agtegra Cooperative, Aberdeen, South Dakota, as
of July 31, 2018, and the results of their operations and their cash flows for the year then
ended in accordance with accounting principles generally accepted in the United States of
America.
Other Matter
We also have audited, in accordance with auditing standards generally accepted in the United
States of America, the consolidated balance sheet of Agtegra Cooperative and all of its
subsidiaries as of July 31, 2018, and the related consolidated statements of savings, members’
equity and cash flows for the year then ended (none of which is presented herein), and we
expressed an unmodified opinion on those consolidated financial statements. Such
consolidated financial statements are the general-purpose financial statements of Agtegra
Cooperative and its subsidiaries, and the financial statements of parent company presented
herein are not a valid substitute for those consolidated financial statements.
November 19, 2018
The accompanying notes are an integral part of the consolidated financial statements.
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AGTEGRA COOPERATIVE
Aberdeen, South Dakota
CONSOLIDATED BALANCE SHEET
July 31, 2018
ASSETS
CURRENT ASSETS
Cash $ 740,991
Marketable Securities 1,826,105
Receivables
Notes and Contracts 15,715,789
Trade – Net of Allowance for Doubtful Accounts of
$2,000,000 44,966,791
Grain in Transit 31,938,006
Unadvanced Loan Commitment 65,000,000
Other 55,611,588
Margin Account 7,954,138
Inventories
Grain 158,128,497
Merchandise 89,279,263
Prepayments on Inventory 14,883,140
Prepaid Expenses 5,209,759
Deferred Income Taxes 1,318,208
Total Current Assets 492,572,275
PROPERTY, PLANT AND EQUIPMENT
Land 21,364,081
Buildings and Equipment 625,309,604
646,673,685
Accumulated Depreciation (302,527,083)
Undepreciated Cost 344,146,602
Construction and Purchases in Process 3,472,795
Total Property, Plant and Equipment 347,619,397
OTHER ASSETS
Notes and Contracts 2,405,888
Finance Costs 127,585
Other Developmental Costs 39,500
Goodwill 730,840
Total Other Assets 3,303,813
INVESTMENTS
Equity in Other Cooperatives 50,887,279
Investment in Other Companies 40,346,095
Total Investments 91,233,374
TOTAL ASSETS $ 934,728,859
The accompanying notes are an integral part of the consolidated financial statements.
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AGTEGRA COOPERATIVE
Aberdeen, South Dakota
CONSOLIDATED BALANCE SHEET
July 31, 2018
LIABILITIES AND MEMBERS' EQUITY
CURRENT LIABILITIES
Checks in Excess of Bank Balance $ 17,617,677
Current Maturities of Long–Term Debt
Notes Payable – Term 6,478,697
Notes Payable – Seasonal 18,000,000
Notes Payable – Patron Demand 12,012,983
Payables
Trade 14,863,886
Unpaid Grain 210,635,917
Patron Credit Balances 16,513,200
Grain Contracts to Market/Other 28,145,478
Accrued Expenses
Property Taxes 2,348,732
Interest 11,059,481
Accrued Compensated Absences 3,294,770
Other 4,694,609
Patronage Dividends Payable 4,000,000
Total Current Liabilities 349,665,430
LONG–TERM LIABILTIES
Notes Payable – Term 174,936,431
Unpaid Grain 41,617,055
Total Long–Term Liabilities 216,553,486
DEFERRED INCOME TAXES 7,892,360
MEMBERS' EQUITY
Patrons’ Reserve 110,040,896
Retired Patrons’ Reserve 2,293,058
Equity Acquired in Merger 42,908,644
Reserve Capital 205,374,985
Total Members' Equity 360,617,583
TOTAL LIABILITIES AND MEMBERS’ EQUITY $934,728,859
10555 New York Ave., Suite 200 • Des Moines, IA 50322-3793 • Phone: (515) 270-1446 • Fax: (515) 270-1811 • www.gardinercpa.com
AGTEGRA COOPERATIVE
Aberdeen, South Dakota
CONSOLIDATED STATEMENT OF SAVINGS
Year Ended July 31, 2018
Sales and Service Income $1,544,288,478
Cost of Goods Sold 1,379,376,337
Gross Savings on Sales and Service Income 164,912,141
Other Revenue 26,559,246
Total Gross Revenue 191,471,387
Operating Expenses, Including Interest 171,910,108
Operating Savings – Local 19,561,279
Loss on Investment Buyout (475,971)
Income from Investments 1,848,812
Patronage Dividend Income 2,216,787
Savings Before Taxes 23,150,907
Income Taxes
Current (257,058)
Deferred (9,141,420)
Net Savings $ 32,549,385
DISTRUBUTION OF NET SAVINGS
Patronage Dividend Provision
Qualified
Cash – 40% $ 4,000,000
Deferred – 60% 6,000,000
10,000,000
Capital Reserve 22,549,385
$ 32,549,385