communities Making A Difference
Official Notice of Annual Meeting
Please take notice pursuant to the bylaws of the Cooperative, the 72 nd Annual Meeting of the members will be held at the Ellendale Public School Gymnasium, Ellendale, ND, in the City of Ellendale, in the County of Dickey, State of North Dakota on the 20 th day of October 2022 at 6 p.m. for the following purposes:
1. To elect three Directors from Districts 3, 4, and 10.
The names listed below are the names that were nominated by the Nominating Committee on Aug. 24, 2022:
• District 7 (Nelvik & Venturia exchanges)
– Ralph Neu, Venturia
• District 8 (Forbes & Merricourt exchanges)
– Paul Olson, Forbes
• District 11 (Oakes, Forman, Gwinner & Lisbon exchange)
– Rod Buck, Oakes
• Nominations by petition: None
2. To present and consider the reports of Officers, Directors and Committees.
3. To transact such business as may properly come before the members at the time.
WELCOME
SCHEDULE OF EVENTS
Doors Open Registration
Complimentary Meal - South Gym Musical Entertainment - North Gym
Meeting Called to Order Welcome
Presentation of Colors & National Anthem Invocation
Introduction of Guests President’s Report GM/CEO Report Service Awards Secretary’s Report Financial Report Unfinished & New Business Election of Directors & Results Drawing for Door Prizes Adjournment
4:30 PM 6:00 PM
TABLE OF CONTENTS
Financial Report 05 Financial Review 07 Our Team 11
2021 Meeting Minutes
OCTOBER 21, 2021
The Seventy First Annual Meeting of the Members of Dickey Rural Telephone Cooperative was held October 21, 2021 at 6:00 p.m. pursuant to notice of meeting sent to all cooperative members, and a copy of the Notice with the Affidavit of Mailing is attached to these Minutes.
President Ralph Neu then called the meeting to order with Arden Falk acting as Secretary of the meeting. President Ralph Neu then gave his welcome and introduced special guests.
The secretary reported the number of members present.
The members present constituted a quorum, and in accordance with the Bylaws, the meeting was duly opened.
Election
The cooperative’s attorney, Fallon Kelly, conducted the election of directors, stating that three (3) directors were up for re-election for a term of three (3) years each. The directors up for re-election and who were all nominated by the nominating committee, were introduced as Arden Falk for District 3, Sid Meidinger for District 4, and Dan Girard for District 10. There having been no nominations by petition for District 3, Arden Falk was unanimously re-elected as director for three (3) years. There having been no nominations by petition for District 4, Sid Meidinger was unanimously re-elected as director for three (3) years. There having been no nominations by petition for District 10, Dan Girard was unanimously re-elected as director for three (3) years.
Prior to the meeting, each member was presented with a copy of the Notice of the Meeting, and a copy of the Minutes of the October 22, 2020 annual meeting of the members. Upon motion duly made and seconded, the Minutes were approved. President Neu then directed the Secretary to annex these to the Minutes of the meeting, which are to be duly filed.
DRN President Ralph Neu and General Manager Kent Schimke presented the president’s report and the manager’s/CEO’s reports, which were duly read, received, and placed on file.
There was no unfinished business.
There being nothing further to come before the cooperative, President Neu declared the meeting adjourned.
Arden Falk Secretary/TreasurerPresident/GM Report
MAKING A DIFFERENCE IN OUR COMMUNITIES
As your telecommunications cooperative, Dickey Rural Telephone Cooperative (DRN) is uniquely positioned to make a difference in the communities we serve. We continuously strive to improve the quality of services we offer our members. Telecommunications services look very different from when our cooperative first began in 1950. Since then, there have been phenomenal technological innovations, but our commitment to keeping our members interests and needs in mind is still just as strong.
With our 100% fiber network, DRN is making a difference by providing a fast, reliable Internet connection to keep up, as the number of digital devices in the home continues to grow. Our network is well-equipped to handle the increase in online traffic with equal upload and download Internet speeds up to 10 Gig with the capability for future expansion. Many homes across the country are still not able to receive this network reliability and speeds.
3.5 Million
As a cooperative, DRN continues to give back to our communities by paying out dividends to members based on the financial health of our cooperative. Last December, the board retired capital credits paying out $3.5 million to members.
Donations, Volunteers & Youth Programs
As we work together for the betterment of our communities, DRN continues to support our communities through financial donations, empowering employees to volunteer in their communities and support youth development. The cooperative principle of “Commitment to Community” is one we are proud to have.
LOOKING AHEAD
We will continue to adapt to the ever changing needs of our members as technological advancements in the marketplace continue to expand. Thank you to our employees for their commitment to serve the needs of our cooperative members. We appreciate our Board of Directors for their vision and guidance. And most importantly, we thank you, the members, for your commitment to DRN and allowing us to be your broadband and IT solutions provider.
Making A Difference in Our Communities with New Technologies
To remain at the forefront of technology, we continue to stay informed in telecommunications industry developments and updates.
With Gig-capable Internet speeds available through our fiber-optic infrastructure in our cooperative area, DRN continues to evaluate where there are needs for network improvements and upgrades. Our expansion with ReadiTech Fiber continues to move forward with the completion of the Horace building and connecting more clients to fiber in Casselton, Mapleton and Horace.
TOP EMPLOYER
We are dedicated to hiring employees who are dedicated, team players and fit our culture is essential to our success.
ANNUAL REPORT 2021 5
Financial Report
Welcome to the 72nd Annual Meeting of Dickey Rural Telephone Cooperative. It is our pleasure and duty to provide you with the financial statements for 2021.
Net
• Verizon Wireless Partnership paid a dividend of $1,516,040 for our share of the distribution.
• North Dakota Long Distance (NDLD) share of net income was $49,701 with a distribution o f$50,000.
• USConnect paid a dividend of $243,587 for our share of the distribution
Independent Auditor’s Report
Report on the Financial Statements
We have audited the consolidated financial statements of Dickey Rural Telephone Cooperative and Subsidiaries, which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of income, members’ equity, and cash flows for the years 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 the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Dickey Rural Telephone Cooperative and Subsidiaries as of December 31, 2021 and 2020, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Dickey Rural Telephone Cooperative and Subsidiaries’ ability to continue as a going concern within one year after the date that the financial statements are issued.
Auditor’s Responsibility
Moss Adams LLP Spokane, Washington April 6, 2022
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate,they would influence the judgment made by are reasonable user based on the consolidated financial statements.
Consolidated Balance
Assets
CURRENT ASSETS
Cash and cash equivalents
Investments in certificates of deposit
Subscriber accounts receivable, net of allowance for doubtful accounts of $3,021 in 2021 and $3,269 in 2020
Settlement and access accounts receivable
Note receivable, current portion
Income tax receivable
Other accounts receivable Materials and supplies Other current assets
Total current assets
NON-CURRENT ASSETS
Investment in affiliates
Investment in non-affiliates Goodwill, net Note receivable, less current portion Other non-current assets
PROPERTY, PLANT, AND EQUIPMENT
Regulated telecommunications plant in service
Regulated telecommunications plant under construction
Non-regulated plant in service
Non-regulated plant under construction
Less accumulated depreciation and amortization
YEARS ENDED DECEMBER 31, 2021 2020
$18,499,450 9,737,257 506,077 957,295 53,720 1,715,757 149,905 1,890,721 1,372,661 34,882,843 6,170,914 1,912,800 745,340 1,256,941 1,163,950 11,249,945 98,617,781 1,843,455 12,132,232 7,790,159 120,383,627 70,532,770 49,850,857 95,983,645
$17,915,377 9,962,956 54,863 906,18686,621 722,716 966,825 601,370 31,216,914 5,937,778 4,435,045 956,4851,285,695 12,615,003 95,858,685 5,868,184 4,317,963106,044,832 64,758,880 41,285,952 85,117,869
Liabilities &
CURRENT LIABILITIES
Accounts payable, general Other accrued liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Other deferred credits Deferred income tax
Total non-current liabilities
MEMBERS' EQUITY
Years Ended December 31, 2021 2020
$862,042 880,395 1,742,437 272,845 3,643,157 3,916,002 90,325,206 95,983,645
$1,418,667 1,438,229 2,856,896 275,325 2,165,020 2,440,345 79,820,628 85,117,869
Consolidated Statement of Income
Years Ended December 31,
2021 2020
OPERATING REVENUES
Wireline Internet Television
Managed and IT Solutions Services
Miscellaneous
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Plant specific operations Plant nonspecific operations Depreciation and amortization Customer operations Corporate operations Other operating taxes Non-regulated
TOTAL OPERATING EXPENSES
NET OPERATING MARGINS
OTHER INCOME (EXPENSE)
Interest and dividend income
Interest expense
Investment income
Gain on sale of investment
Other non-operating income (expense)
Gain on disposal of assets
Amortization of goodwill Income from affiliates
Total other income Margins before income taxes
INCOME TAX EXPENSE (BENEFIT)
Net margins
$17,362,664 4,374,141 4,271,226 4,182,671 2,938,422 33,129,124 4,433,144 344,897 6,055,665 1,527,490 2,146,384 90,232 12,976,843 27,574,655 5,554,469 2,345,585 (25) 116,74324,365(211,144) 1,031,475 3,306,999 8,861,468 (150,713) 9,012,181
Board of Directors
Ralph Neu PRESIDENT DISTRICT 7 Ralph Greer VICE PRESIDENT DISTRICT 2 Arden Falk SECRETARY/TREASURER DISTRICT 7 Myron Yagow DISTRICT 6 Paul Olson DISTRICT 8 Sid Meidinger DISTRICT 4 Dan Barton DISTRICT 9 Dan Girard DISTRICT 10 Rod Buck DISTRICT 11 Fallon Kelly ATTORNEYCongratulations Retirees!
Thank you to the following employees for the years of dedicated service to DRN and our members:
Lorri Kingzett - 26 Years
Gordy Van De Venter - 25 Years
Mary Lou Sundby - 20 Years
Best wishes for a happy retirement!
Our
P.O. Box 69
Ellendale, ND 58436
72 ND DRN ANNUAL MEETING
Ellendale School Gym Thursday, October 20 4:30 p.m. Registration & Meal 6 p.m. Meeting