The accounting firm DeCoria & Company again completed our annual audit. They once again found no issues with our financial records and statements. In their opinion, “the financial statements referred to [in the audit] present fairly, in all material respects, the financial position of Midwest Electric Cooperative Corporation as of December 31, 2020 and 2019, and the results of its operations and its cash flows for the years then ended.” They also noted that they found nothing to indicate that we were out of compliance with any of our loan obligations. We are appreciative of their findings and happy to report that we have completed another year in a sound financial position.
A couple items to highlight from the audit are the changes in revenue and expenses from 2019 to 2020. Due to the drought conditions across much of our region last year, the usage on our irrigation accounts was up significantly. Overall, our kilowatt-hour purchases were up 45% from 2019. That drove our cost of purchased power up $5.3M (31%). However, all the rest of our expenses combined were only up $98,244 (1.2%). And our revenues increased $5.6M so that nearly matched the amount we needed to cover the increases in power costs and other operations. So, we were able to meet our financial obligations while keeping our rates the same for the fifth straight year which has now become the sixth straight year in 2021.
The only finding they had to report about our audit was that we do not have an accounting staff “large enough to permit an adequate segregation of duties for an
effective system of internal control over financial reporting.” This is a common
finding for small businesses and organizations but one that we still take seriously. We feel that we have the appropriate number of staff to run an effective and efficient operation and do not feel that the increase in staffing necessary to satisfy that finding would be justified. We do try to segregate duties as much as possible among the
staff that we have to try to minimize that risk as much as we can. An assessment of the effectiveness of our internal controls is not in the scope of their audit but we feel comfortable that we have taken appropriate steps to alleviate those concerns in a
If you have questions about any of our financial statements or have comments for us, please do not hesitate to contact our office.
*Midwest Electric is an equal opportunity provider and employer.*