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Performance and Accountability Report FISCAL YEAR 2015 PERFORMANCE AND ACCOUNTABILITY REPORT bbg.gov Message from the BBG Chairman and CEO On behalf of the Broadcasting Board of Governors, we are pleased to present the BBG’s Performance and Accountability Report (PAR) for Fiscal Year (FY) 2015. This report includes the results of this year’s audit of the Agency’s financial statements; measures our performance against our FY 2015 objectives; highlights the accomplishments of the past year; and identifies the challenges that lie ahead. The mission of the BBG is to inform, engage, and connect people around the world in support of freedom and democracy. The BBG broadcast services include two federal entities: the Voice of America (VOA) and the Office of Cuba Broadcasting (OCB); and three BBG-sponsored grantees: Radio Free Europe/Radio Liberty (RFE/RL), Radio Free Asia (RFA), and the Middle East Broadcasting Networks (MBN). The BBG upholds freedom of expression and information as universal human rights. By exemplifying free media and free expression, the BBG helps foster and sustain free and democratic societies. The BBG networks pursue this mission through their own media via television, radio, Internet, social and mobile platforms, but also by working closely with media partners on the ground that bring our content into local markets, establishing valuable connections to critical institutions that influence civil society and democratic principles. Through professional journalism, BBG networks help support specific U.S. foreign policy objectives. In 2015, MBN launched its multi-platform Raise Your Voice campaign, providing Iraqis with the opportunity to voice their opinions and engage in discussion on issues relevant to their daily lives and future. Raise Your Voice encourages Iraqi citizens to speak out and address extremism and the underlying causes of terrorism. Nearly 41 percent of Iraqi adults consume MBN programming each week. With programming in 61 languages, thousands of media partners, and on-the-ground reporting capabilities around the world, BBG networks are also well poised to react quickly in crisis situations. In October 2014, RFE/RL and VOA launched Current Time, a joint Russian-language production undertaken in partnership with public and private broadcasters throughout the region. The show presents a daily 30-minute mix of news, interviews, features, and political satire to provide a “reality check” on local events and to show an alternate narrative to that which is propagated by Russian-controlled TV. The program is now carried by 25 partner stations throughout the region. In FY 2015, the BBG continued to fight for the free flow of information around the world. According to Freedom House, Internet Freedom declined for the fifth consecutive year in 2015. BBG Internet anti-censorship efforts included achieving one trillion circumvention page views in one year on BBG-supported access tools; countering Internet censorship in 13 countries; supporting 21 BBG language services; and distributing circumvention tools in 200 languages. In order to have impact with audiences, the BBG must provide quality programming and earn the trust of audiences. We are monitoring our progress through our impact model, which tracks engagement, connection, and being influential with audiences, media institutions, and governments through a range of quantitative, qualitative, digital, and anecdotal indicators. With high levels of impact, the programming of BBG networks is consumed by a record worldwide audience of 226 million people in 61 languages each week. In FY 2015, the Board hired a CEO to manage day-to-day operations of the BBG and networks. This move provides an opportunity for dedicated, full-time leadership and greater coordination and cooperation among the BBG networks, a priority of the Board and CEO in the current environment of increased competition and decreasing budgets. The BBG has established the USIM Coordinating Committee to enhance strategic cooperation among the BBG networks and will use this as a vehicle for future collaboration. Today, the BBG is focused on several key initiatives to move forward in a challenging environment. We are: • Aggressively shifting to digital platforms to reach future leaders and influencers. • Expanding our efforts in support of Internet freedom. • Targeting key spheres that are aligned with foreign policy priorities, such as targeting extremism and closed societies. • Increasing curation and acquisition of content to balance hard news with broader subjects, such as entrepreneurship and technology. • Increasing our investments in transparency, accountability, and focus on impact. The financial and performance data presented in this report are fundamentally complete and reliable. We are pleased that the independent auditors have given our financial statements an unqualified opinion for the eleventh year. We recognize that there are a number of significant items identified by the external audit that will require our continued attention, diligence, and improvement. We are committed to addressing these items and meeting these challenges. We are proud to report the achievements of the Broadcasting Board of Governors during FY 2015. We strive to wisely and effectively use the resources entrusted to us by the Administration, Congress, and the public to further our mission. Jeffrey Shell John F. Lansing Chairman Chief Executive Officer and Director November 16, 2015 2 Broadcasting Board of Governors | FY 2015 Performance and Accountability Report BBG FY 2015 PERFORMANCE AND ACCOUNTABILITY REPORT: Table of Contents Introduction ............................................................................................................................................. 5 Section 1: Management’s Discussion and Analysis ........................................................... 7 Organizational Structure and Mission ....................................................................................................... 8 FY 2015 Goals and Objectives .................................................................................................................... 10 Performance Highlights ................................................................................................................................. 11 Ongoing Challenges ........................................................................................................................................ 14 Financial Highlights .......................................................................................................................................... 19 Management Assurances ............................................................................................................................. 20 Limitations on Financial Statements ....................................................................................................... 24 Section 2: Performance Information ........................................................................................ 25 FY 2015 Goals, Objectives, and Results ................................................................................................... 26 Verification and Validation of Performance Measures .................................................................... 62 FY 2015 Performance Objectives and Outcomes .............................................................................. 63 Summary of FY 2015 Performance Accomplishments .................................................................. 67 Use of Performance Data to Promote Improved Outcomes ...................................................... 78 Independent Program Evaluations .......................................................................................................... 80 Section 3: Financial Information ................................................................................................ 85 Message from the Chief Financial Officer ............................................................................................ 86 Independent Auditor’s Report .................................................................................................................... 88 Response to the Audit .................................................................................................................................. 101 Balance Sheet ................................................................................................................................................... 102 Statement of Net Cost ................................................................................................................................. 103 Statement of Changes in Net Position ................................................................................................. 104 Statement of Budgetary Resources ....................................................................................................... 105 Notes to Principal Financial Statements ............................................................................................... 107 Required Supplementary Information ................................................................................................. 130 Section 4: Other Information .................................................................................................... 131 Inspector General’s Statement on FY 2015 Management and Performance Challenges ..................................................................................... 132 Agency Response
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