Central Michigan University Public Broadcasting Network
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Central Michigan University Public Broadcasting Network Consolidated Financial Report with Other Supplemental Information June 30, 2019 Central Michigan University Public Broadcasting Network Contents Independent Auditor’s Report 1-2 Management’s Discussion and Analysis 3-9 Consolidated Financial Statements Statement of Net Position 10 Statement of Revenue, Expenses, and Changes in Net Position 11 Statement of Cash Flows 12 Notes to Consolidated Financial Statements 13-38 Required Supplemental Information 39 Schedule of the Network’s Proportionate Share of the Net Pension Liability and 40 Contributions for Michigan Public School Employees’ Retirement Plan and Notes to Required Supplemental Information Schedule of the Network’s Proportionate Share of the Net OPEB Liability and 41 Contributions for Michigan Public School Employees’ Retirement Plan and Notes to Required Supplemental Information Schedule of WUCX Proportionate Share of Net Pension Liability and Contributions 42 for Michigan Public School Employees’ Retirement Plan and Notes to Required Supplementary Information Schedule of WUCX Proportionate Share of Net OPEB Liability and Contributions for 43 Michigan Public School Employees’ Retirement Plan and Notes to Required Supplementary Information Other Supplemental Information 44 Consolidating Statement of Net Position 45 Consolidating Statement of Revenue, Expenses, and Changes in Net Position 46 Independent Auditor's Report To the Board of Trustees Central Michigan University Public Broadcasting Network c/o Central Michigan University Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Central Michigan University Public Broadcasting Network (the "Network"), a department of Central Michigan University (the "University"), as of and for the years ended June 30, 2019 and 2018 and the related notes to the consolidated financial statements, which collectively comprise Central Michigan University Public Broadcasting Network's consolidated financial statements, as listed in the table of contents. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these consolidated financial statements based on our audits. We did not audit the financial statements of Delta College WUCX-FM, which represents 1.25 percent, (1.32) percent, and 5.16 percent of the assets, net position, and revenue, respectively, of the Network. Those financial statements were audited by other auditors whose report has been furnished to us and, our opinion, insofar as it relates to the amounts included for Delta College WUCX-FM, is based solely on the report of the other auditors. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the report of other auditors, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Central Michigan University Public Broadcasting Network as of June 30, 2019 and 2018 and the changes in its financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the consolidated financial statements, the 2018 consolidated financial statements have been restated to correct a misstatement. Our conclusion is not modified with respect to this matter. 1 To the Board of Trustees Central Michigan University Public Broadcasting Network c/o Central Michigan University We draw attention to Note 1, which explains that these consolidated financial statements of Central Michigan University Public Broadcasting Network are intended to present only the financial position, changes in its financial position, and changes in its cash flows of only that portion of the University's business-type activities that are attributable to the transactions of that department. They do not purport to, and do not, present fairly the financial position of Central Michigan University as of June 30, 2019 and 2018 and the changes in its financial position or the changes in its cash flows thereof for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplemental Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedule of pension funding progress, schedule of pension contributions, schedule of OPEB funding progress, and schedule of OPEB contributions be presented to supplement the basic consolidated financial statements. Such information, although not a part of the basic consolidated financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic consolidated financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplemental information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic consolidated financial statements, and other knowledge we obtained during our audit of the basic consolidated financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Supplemental Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements that collectively comprise Central Michigan University Public Broadcasting Network's basic consolidated financial statements. The other supplemental information, as identified in the table of contents, is presented for the purpose of additional analysis and is not a required part of the basic consolidated financial statements. The other supplemental information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic consolidated financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic consolidated financial statements or to the basic consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplemental information is fairly stated in all material respects in relation to the basic financial statements as a whole. February 12, 2020 2 Central Michigan University Public Broadcasting Network Management’s Discussion and Analysis - Unaudited This section of Central Michigan University Public Broadcasting Network’s (the “Network”) annual consolidated financial report presents our discussion and analysis of the financial performance of the television and radio stations for the fiscal year ended June 30, 2019, with selected comparative information for the years ended June 30, 2018 and 2017. This discussion has been prepared by management along with the consolidated financial statements and related note disclosures and should be read in conjunction with, and is