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FY 2018 Performance and Accountability Report

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FY 2018 Performance and Accountability Report FY 2018 Performance and Accountability Report Message from the U.S. Agency for Global Media CEO and Governing Board Chairman On behalf of the U.S. Agency for Global Media (USAGM), we are pleased to present the Performance and Accountability Report (PAR) for Fiscal Year (FY) 2018. This report includes the results of this year’s audit of the agency’s financial statements, measures our performance against our FY 2018 objectives, highlights the accomplishments of the past year, and identifies the challenges that lie ahead. In August 2018, the Broadcasting Board of Governors (BBG) changed its name to the United States Agency for Global Media. The new name reflects our modernization, shift to digital platforms, and forward momentum, and better explains to constituents the work and significance of the agency and its networks in advancing U.S. interests and American national security around the world. However, the mission of USAGM remains unchanged: to inform, engage, and connect people around the world in support of freedom and democracy. USAGM broadcast services include two federal entities: the Voice of America (VOA) and the Office of Cuba Broadcasting (OCB); and three USAGM-sponsored grantees: Radio Free Europe/Radio Liberty (RFE/RL), Radio Free Asia (RFA), and the Middle East Broadcasting Networks (MBN). The programming of USAGM networks is consumed by a worldwide measured audience of 345 million people in 58 languages each week, an unprecedented year-on-year increase of 67 million. This audience growth occurred in key strategic countries – China, where we now have a weekly audience of 65 million people in Mandarin, Cantonese, and English; Iran, where we maintain a weekly audience of 14 million Farsi speakers; and Russia, where our weekly Russian audience is almost eight million. USAGM upholds freedom of expression and information as universal human rights by exemplifying and supporting free media that foster and sustain free and democratic societies. USAGM networks pursue this mission through their own engaging content on television, radio, internet, social and mobile platforms. They also do so by working closely with media partners around the world that bring our compelling content into local markets, establishing valuable connections to critical institutions that, in turn, support civil society and democratic principles. With media sources proliferating around the world, information is more powerful than ever. But the existence of more media does not yield more press freedom. According to Reporters Without Borders, media freedom remains highly threatened, with significant deteriorations over the past five years. Their global indicator of media freedom registered its worst ever value in 2017 and remains essentially unchanged in 2018. Well-funded state and non-state media outlets inundate audiences with disinformation about current affairs at both the U.S. and global level. Using professional journalism, USAGM networks provide an alternative to disinformation and extremist propaganda. RFE/RL and VOA have stepped up their Russian-language social media outreach and are engaging more audiences with balanced information and rigorous fact-checking. Current Time, USAGM’s 24/7 Russian-language global digital network led by RFE/RL in partnership with VOA, has gained traction online and through a wide network of distributors – more than 84 in 19 countries – in the nearly two years since it launched. New research from Russia shows an increased audience for USAGM content, up 28 percent since the last survey, despite our restricted access to standard broadcast channels. In 2017, more than half the network’s 400 million online video views came from inside Russia. Since its launch in February 2017, Current Time has earned more than 1.3 million followers across all social media platforms. With programming in several dozen languages, thousands of media partners, and on- the-ground reporting capabilities around the world, USAGM networks are also well poised to react quickly in crisis situations. In FY 2018, USAGM provided extensive coverage of Burma’s Rohingya refugee crisis, ongoing civil war in Syria, human rights abuses against ethnic Uyghurs in China, peaceful revolution in Armenia, protests in Iran, and political crises in Nicaragua and Venezuela. Violent extremism continued to be an area of focus for USAGM networks, with coverage on Boko Haram in Nigeria; the Taliban in South Asia; and ISIS in the Middle East, Balkans, Central Asia, and elsewhere. USAGM also continues to give audiences platforms to speak out and address extremism and the underlying causes of terrorism with Raise Your Voice in Iraq, Maghreb Voices in North Africa, Not in Our Name in Central Asia and the Balkans, and documentaries and call-in programs in Nigeria. In order to impact audiences, USAGM must provide quality programming and earn the trust of audiences. We are monitoring that progress through our impact model, which tracks engagement, connection, and influence with audiences, media 2 U.S. AGENCY FOR GLOBAL MEDIA | FY 2018 PERFORMANCE AND ACCOUNTABILITY REPORT institutions, and governments through a range of quantitative, qualitative, digital, and anecdotal indicators. With high levels of impact on a range of measures, USAGM is reaching larger audiences than ever. The CEO leads USAGM through a collaborative, decentralized approach with the U.S. International Coordinating Committee (ICC), which is made up of the heads of the five USAGM networks. Through the CEO-chaired ICC bi-monthly meetings, the five USAGM networks collaborate on strategic and operational issues to move the agency forward. Today, USAGM is focused on several key initiatives to increase our impact in a challenging environment. We are: § Maximizing program delivery agility; § Enhancing strategic coordination between networks; § Focusing on key issues and audiences; § Improving accountability and impact measurement; and § Targeting public-private partnerships on innovation and media reach. The financial and performance data presented in this report are fundamentally complete and reliable. We are pleased that the independent auditors gave our financial statements an unmodified opinion for the fourteenth year. We recognize that there are a number of significant items identified by the external audit that will require our continued attention and diligent improvement. We are committed to directly addressing these challenges and reinforcing progress. We are proud to report the achievements of the U.S. Agency for Global Media during FY 2018. We strive to effectively and efficiently use the resources entrusted to us by the Administration, Congress, and the public to further our global mission. John F. Lansing Kenneth Weinstein Chief Executive Officer and Director Broadcasting Board of Governors Chairman November 15, 2018 U.S. AGENCY FOR GLOBAL MEDIA | FY 2018 PERFORMANCE AND ACCOUNTABILITY REPORT 3 (page intentionally left blank) 4 U.S. AGENCY FOR GLOBAL MEDIA | FY 2018 PERFORMANCE AND ACCOUNTABILITY REPORT Table of Contents Introduction ................................................................................................................................... 7 Section 1: Management’s Discussion and Analysis ..................................................................... 9 Organizational Structure and Mission ......................................................................... 10 FY 2018 Goals and Objectives ......................................................................................... 13 Performance Highlights .................................................................................................... 14 Ongoing Challenges ............................................................................................................ 18 Financial Highlights ........................................................................................................... 22 Management Assurances .................................................................................................. 26 Limitations on Financial Statements ........................................................................... 28 Section 2: Performance Information ......................................................................................... 29 FY 2018 Goals, Objectives, and Results ........................................................................ 31 Verification and Validation of Performance Measures ........................................... 93 FY 2018 Performance Objectives and Outcomes ...................................................... 94 Summary of FY 2018 Performance Accomplishments .......................................... 98 Use of Performance Data to Promote Improved Outcomes .............................. 128 Independent Program Evaluations ............................................................................ 130 Section 3: Financial Information ............................................................................................... 135 Message from the Chief Financial Officer ................................................................ 137 Independent Auditor’s Report ..................................................................................... 139 Response to the Audit ..................................................................................................... 151 Balance Sheet ..................................................................................................................... 152 Statement of Net Cost ....................................................................................................
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