A Year in Review Annual Report & Group Financial Statements 2015 Today, Tomorrow, Together RTÉ is Ireland’s national public-service media organisation – on television, radio, online and mobile. Raidió Teilifís Éireann Board The 55th Annual Report and Group Financial Statements for the 12 months ended 31 December 2015 presented to the Minister for Communications, Energy and Natural Resources in line with section 109 and 110 of the Broadcasting Act 2009. Is féidir leagan Gaeilge den Tuarascáil a íoslódáil ó www.rte.ie/about/ie/policies-and-reports/annual-reports/ Contents 02 Vision, Mission & Values 03 Highlights 04 Chair’s Statement 06 Director-General’s Review 10 Financial Review 16 Who We Are 17 Organisation Structure 18 Operational Review 80 Board of RTÉ 84 Executive 86 Corporate Governance 93 Board Members’ Report 94 Statement of Board Members’ Responsibilities 95 Independent Auditor’s Report 96 Financial Statements 103 Notes forming part of the Group Financial Statements 141 Appendix to the Group Financial Statements – Accounting Policies 146 Other Reporting Requirements 155 Other Statistical Information 156 Financial History RTÉ Annual Report & Group Financial Statements 2015 01 Vision RTÉ’s vision is to enrich Irish life; to inform, entertain and challenge; to connect with the lives of all the people. Mission Values • Deliver the most-trusted, • Understand our audiences independent, Irish news service, and put them at the heart of accurate and impartial, for the everything we do connected age • Be creative, innovative and • Provide the broadest range resourceful of value-for-money, quality • Be open, collaborative and content and services for flexible all ages, interests and • Be responsible, respectful, communities honest and accountable to one • Reflect Ireland’s cultural and another and to our audiences regional diversity and enable access to major events • Support and nurture Irish production and Irish creative talent 02 Highlights There were 4,710 hours of RTÉ’s radio services were named home-produced TV programming International Broadcaster of the in 2015 Year at New York Festivals RTÉ News Now was the number @rtenews was the number one one news app in Ireland, with 1.5m media Twitter account in Ireland downloads RTÉ’s orchestras performed over 60 The number of homes with Saorview education-related performances grew by 10% in 2015 to 676,000 in 2015 RTÉ Annual Report & Group Financial Statements 2015 03 Chair’s Statement RTÉ has not managed to break even in this financial year, however, a While sustaining and modest deficit should be viewed in the context of seven years without any increase in funding for the organisation. The issues of a media fee protecting that which and increased attention to licence fee evasion still need sustained consideration at a political level and it is the view of the Board that the RTÉ does well, the Board resolution of these issues, in conjunction with other strategies, is the key has also had to address to RTÉ’s overall funding. While awaiting decisions on broader funding policy, RTÉ has been many of the challenges examining other options. Proposals for the realisation of value of some of the lands at Donnybrook have been developed by management and facing all public-service are under consideration by the Board. A successful sale of a portion of the site could release much-needed resources for capital investment broadcasters in the 21st- and to underpin the organisation’s multimedia work. century media landscape. The Board has also been examining ways in which the unique nature of RTÉ could be used to help sustain its funding base. One example These deliberations take is the RTÉ archive, a unique library of materials charting the history of the nation. With the identification of appropriate partners and the place in a continuously collaboration of key community bodies there can be a way to support this while facilitating the opening of the archive to the population in both demanding financial urban and rural areas. The Board is actively pursuing this strategy. environment. The central strategic theme of the Board’s work during the year has been a shift in emphasis to further strengthen arts and culture at the heart of the organisation. A steering group, with a representative from the Board, has been established to progress this work using external experts in the field to ensure that the emerging policy is both relevant and future-proof. This has been especially significant and important in laying a strong foundation for the year of commemoration in 2016. A key aspect of this strategy has been the development of what could be termed a creative industries cluster, with RTÉ taking the central role. The contemporary creative space is one where partnerships, collaboration and collective planning are key to success and RTÉ can lead this with a commitment to open and inclusive programming. While there is much rhetoric about the concept of creativity, in the view of the Board, RTÉ is now developing concrete strategies and plans to put the everyday experience of the Irish people at the core of every aspect of the organisation. Based on a broad review of policy and practice, the Board recently approved the development of a Diversity Strategy to ensure RTÉ remains at the forefront of bodies framing and reflecting the different strands that make up modern Ireland. However, these strategies can be successful only if they are grounded in an acute understanding of the views and needs of the RTÉ audience. To this end, the Board has been meeting regularly with audiences, RTÉ staff, the Executive and, crucially, the independent production sector, to develop trust, but also to underline the independent nature of the Board’s work and of RTÉ’s voice. At a formal level, this listening is filtered through the Audience Council, a body that now has a much closer relationship with the Board. The Council is working on key research projects to ensure decisions are made on objective evidence rather than on some kind of intuitive understandings. Radio continues to develop and grow. Though often seen as the medium most at risk in the crowded online environment, RTÉ radio has, through courageous programming and seeking out a younger audience, 04 underlined the special relationship Irish people have with radio. Success in the radio arena keeps RTÉ at the heart of the home at key familial times, involving its audiences in all important issues of the day. The continuing health of radio is at a time when the so-called digital The central strategic revolution is taking place. The Board has worked to introduce a more nuanced definition of digital, seeking to see it as complementing what theme of the Board’s RTÉ already does well, rather than replacing it. The digital environment work during the year offers a real opportunity for RTÉ to reach new audiences. However, it is the quality of RTÉ’s product that is paramount. If this quality is has been a shift in protected, then audiences – on whichever medium – will l be maintained. emphasis to further Essentially, our model should be quality first, distribution second. strengthen arts and The places where an audience can access news important to them culture at the heart of continue to grow, so it is pleasing to be able to report that RTÉ continues the organisation. to be recognised for the breadth and quality of its investigative journalism. For example, in the recent exposure of poor practices in the care industry, it was clear that News and Current Affairs in RTÉ was prepared to take risks, embrace bold programming and be judged on the results of its investigations. This revival of investigative journalism is largely due to the vision and leadership of the outgoing Director-General Noel Curran. His tenure has been against a backdrop of extreme financial pressures that have required a substantial re-configuration of RTÉ’s structures and strategies to enable it to continue to deliver its public-service commitments. In that task, he has shown immense skill. He has been measured, expert and courageous in his dealings with the Board and I personally will miss the quality of his analysis and guidance. The Board wishes him well in his future career. Managing the transition to a new DG has been one of the most important duties the Board has had to address. In this, as in others, the Board has operated coherently and with enthusiasm. This Board, with its balance of individuals experienced in both the public and private environments, will continue to offer strong leadership in conjunction with the Executive. We look forward to working with the new DG and continuing the development of RTÉ in these challenging but exciting times. Moya Doherty Chair RTÉ Annual Report & Group Financial Statements 2015 05 Director-General’s Review Central to RTÉ’s public purpose is bearing witness to and helping our 2015 was a year of huge audiences understand the world and society in which they live. More than most years, 2015 will be defined by vivid and, at times, heart- national and international breaking images and moments, most of which were broadcast and news coverage, a year reported on by RTÉ. They included: The sickening bomb blasts in the Bataclan Theatre when RTÉ’s re-invigorated in Paris. The thousands of refugees in camps, on European borders and huddled in small rubber boats in the Mediterranean. The image of radio services cemented a child washed up on a beach in Turkey. The broken remains of that balcony in Berkeley, California. A caravan and family destroyed by fire their position with the in Carrickmines. The euphoric and emotional scenes in Dublin Castle on the day the Marriage Equality Referendum was passed by popular public, when we enhanced vote.