KUAT COMMUNICATIONS GROUP Fiscal Year 2007 Report with Audited Financial Statements June 30, 2007 Dear friends, In the land grant tradition of Arizona’s first university, The University of Arizona, the KUAT Communications Group (KUAT) provides information, entertainment and educational outreach across multiple distribution platforms. Our sta- tions have the unique ability to connect thousands of Southern Arizonans instantly, to their community and the world through the intellectual and creative resources of The University of Arizona. KUAT has spent the last 48 years solidifying its reputation as a high-quality, trusted source for lifelong learning. When limited federal support for the operation of public stations began in 1968, the community and the University reached a turning point – it was clear that media could be used to enhance everyday learning opportunities. Today, KUAT is undergoing another historic turning point. A nearly half-century of experience in creating and delivering quality programming and educational services coupled with the entrance into the digital delivery age, gives this enterprise new opportunities to bring learning to life for thousands in Arizona and millions globally, all under the moniker of The University of Arizona. With the goal of increasing organizational and fiscal efficiencies, this year KUAT implemented staff reorganizations that focus our human resources into areas of core competencies. Today, all content producers collaborate in a single workgroup to provide better in-depth coverage of news and community issues and to increase the diversity of topics on all media platforms: television, radio and the web. Similarly, engineering and technology positions work together to increase operational efficiency and productivity. The group’s development division was also restructured to separate membership, underwriting and major giving functions to allow our staff to focus in specific and discrete areas of sup- port. It has also been a year of transition for the KUAT Public Advisory Board as the Board moves from a passive advisory role to an active advisory and development role, working to help the organization retain existing (and attract new) supporters. Board members have provided immeasurable help in connecting KUAT leadership to the communities served by the organization’s broadcast, cable and online resources. Input and support from the Board has been in- valuable to KUAT in the past and will become even more vital over the next several years as the industry and KUAT complete the transition from analog to digital broadcasting, providing new opportunities for expanded programs and services for the community. In a mutually beneficial partnership, The University of Arizona, station management and the community work together to ensure the stations and services provided by the KUAT Communications Group meet the needs and interests of viewers and listeners throughout Southern Arizona. Sincerely yours, Jack Gibson Leslie Tolbert, Ph.D. John Escher Director & General Manager, Vice President for Research, Graduate Chairman, KUAT Communications Group Studies and Economic Development, KUAT Public Advisory Board The University of Arizona Contents Mission, Vision and Values ...........................................................................................................................................3 KUAT Media Assets .........................................................................................................................................................5 Audited Financial Statements ....................................................................................................................................7 KUAT Public Advisory Board (2006-2007) ......................................................................................................38 History ...................................................................................................................................................................................39 Program Services .............................................................................................................................................................40 Original Productions ......................................................................................................................................................41 Educational Outreach ...................................................................................................................................................43 Audience Growth/Recognition ................................................................................................................................45 Audience Support ...........................................................................................................................................................47 Staff ..........................................................................................................................................................................................48 Summary ..............................................................................................................................................................................49 Appendix A - Guest/Topic List For Arizona Illustrated ..............................................................................50 Appendix B - Current List Of Underwriters ...................................................................................................67 Fiscal Year 007 Report The KUAT Communications Group informs, inspires and connects our community by bringing people and ideas together. We connect you to the community and the world through the intellectual and creative resources of The University of Arizona. We are leaders within the community and industry, embracing new technologies, ideas and partnerships. Fiscal Year Year Fiscal Our eorts in service to the community are sustained by the investment of individual supporters in partnership with The University of Arizona, the business community and the Corporation for Public Broadcasting. 007 Report Every decision will be guided by what best serves audiences. Our sta, volunteers and interns are committed to meeting the needs and exceeding the expectations of our stakeholders and colleagues with honesty and integrity. We work together as members of a team with a common goal and attention to detail- understanding the importance of personal commitment in fullling our mission. We value individual contributions and respect our dierences. Diversity of opinion and healthy, open debate are encouraged and appreciated. We strive to improve performance on a daily basis in service to our community. Fiscal Year 007 Report KUAT MEDIA ASSETS Television Radio KUAT Channel 6 Tucson Classical Music KUAT Channel 20 Duncan KUAT FM 90.5 Tucson KUAS Channel 27 Tucson KUAT FM 89.7 NW Tucson Digital Television KUAT FM 89.7 Sierra Vista KUAT Channel 6-1 Digital 6 KUAT FM 88.9 Bisbee KUAT Channel 6-2 KUAT Kids KUAT FM 91.7 Nogales KUAT Channel 6-3 KUAT Prime KUAT FM 89.5 Safford KUAT Channel 6-4 Create NPR (daytime)/Jazz (evening) KUAS Channel 27-1 HDTV KUAZ AM 1550 Tucson Cable Television KUAZ FM 89.1 Tucson UA Channel Cox (Channel 116) KUAZ FM 91.7 Sierra Vista UA Channel Comcast (Channel 76) Fiscal Year Year Fiscal 007 Report Original Productions Production Services Arizona Illustrated TV/Radio Program Production Arizona Spotlight Audio Mastering The Desert Speaks Teleconference Services KUAZ News Satellite & Fiber Distribution Radio Reflexiones Reflexiones Domingo Educational Outreach UA Journal Distance Learning Ready to Learn Online www.kuat.org www.kuaz.org www.kuatfm.org Fiscal Year 007 Report AUDITED FINANCIAL STATEMENTS THE KUAT COMMUNICATIONS GROUP Fiscal Year Year Fiscal (A Division of The University of Arizona) Financial Statements and Supplemental Schedule For the Years Ended June 30, 2007 and 2006 007 Report 7 The KUAT Communications Group ________________________________________________________________________________________________________ Index to Financial Statements A Message from the General Manager ..............................................................................10 - 11 Organizational Profile................................................................................................................. 12 Management’s Discussion & Analysis.................................................................................13 - 18 Independent Auditors’ Report .................................................................................................... 19 007 Report Financial Statements Statements of Net Assets........................................................................................................... 22 Statements of Revenues, Expenses and Changes in Net Assets ...................................... 23 Fiscal Year Year Fiscal Statements of Cash Flows......................................................................................................... 24 Notes to Financial Statements ......................................................................................... 25 - 34 Supplemental Schedule Schedules of Operating and Non-operating Functional Expenses................................ 36 The KUAT Communications Group ________________________________________________________________________________________________________ Index to Financial Statements A Message from the General Manager ..............................................................................10