lfr JPR IJfIIFHS,? Gonsolidated Financial Statements

Jefferson Public Radio &TheJPR Foundation, lnc.

For the years ending June 30, 2016 and 2015

The occompanying financial stotements represent the financial position of Jefferson Public Radio, a public telecommunications entity owned and operated by Southern Oregon University. These statements include the Jefferson Public Rodio related accounts of Southern Oregon University and the JPR related occounts of the JPR Foundation, lnc., o private tax-exempt corporation organized to support Jefferson Public Radio's public service mission. JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC.

FINANCIAL REPORT AND SUPPLEMENTARY INFORMATION

FOR THE YEARS ENDED JUNE 30, 2016 AND 2OI5 This Page Intentionally Left Blank JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC.

TABLE OF CONTENTS

PAGE NUMBER

Independent Auditors' Report 1

Combined Basic Financial Statements:

Combined Statements of Financial Position J

Combined Statements of Activities 4

Combined Statements of Cash Flows 5

Notes to the Combined Basic Financial Statements 6

Supplementary Information

Combining Schedule of Financial Position at June 30,2016 19

Combining Schedule of Financial Position at June 30,2015 20

Combining Schedule of Activities for year ended June 30,2016 2T

Combining Schedule of Activities for year ended June 30, 2015 22

Schedule ofExpenses by Entity for year ended June 30, 2016 23

Schedule of Expenses by Entity for year ended June 30,2015 24

Combining Schedule of Activities - KSOR-FM and KNCA-FM for year ended June 30, 2016 25

Combining Schedule of Activities - KSOR-FM and KNCA-FM for year ended June 30,2015 26 This Page Intentionally Left Blank Paulv, RocrRs, ann Co., P.C. 12700 SW 72nd Ave. Tigard, OR 97223 (s03) 620-2632 (s03) 684-7 s23 F AX www.paulyro gersandcocpas. com

September 27,2016 To JPR Foundation Board of Directors and Southern Oregon University Jackson County, Oregon

INDEPENDENT AUDITORS' REPORT

Jefferson Public Radio and JPR Foundation, Inc Jackson County, Oregon

Report on the Basic Financial Statements

We have audited the accompanying combined statements of financial position of Jefferson Public Radio and JPR Foundation, Inc., as of June 30,2016 and 2015, and the combined statements of activities, cash flows, and the related notes to the combined basic financial statements for the years then ended which comprise the combined basic financial statements.

Management's Responsibilify for the Basic Financial Statements

Management is responsible for the preparation and fair presentation of these combined basic financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of basic financial statements that are free from material misstatement, whether due to error or fraud.

Auditors' Responsibility

Our responsibility is to express an opinion on these combined basic financial statements based on our audits. 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 combined basic financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic financial statements. The procedures selected depend on the auditors' judgment, including the assessment of risks of material misstatement of the basic financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the basic 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 internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting estimates made by management, as well as evaluating the overall presentation of the combined basic financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

-l - Basis for Qualified Opinion

Management chose not to include the combined financial position of Jefferson Live! LLC as of June 30, 2016 and 2015 and the related activities and cash flows for the years then ended, and the related notes to the combined basic financial statements. The JPR Foundation is the sole member of Jefferson Live! LLC; therefore, consolidation is required under the generally accepted accounting principles of the United States of America' Management concluded that reporting Jefferson Live! LLC separate from activities of Jefferson Public Radio and JPR Foundation was consistent with operating agreements in place between the JPR Foundation and Southern Oregon University and provided more detailed, useful and transparent information, At June 30, 2016 and 2015 Jefferson Live! LLCs total assets were $4,430,09g and 53,202,611, total liabilities were $1,563,462 and $1,751,123, and total net assets were $2,866,636 and $1,451,488, respectively. For the years ended June 30, 2016 and 2015 total revenues were$;3,495,022 and $2,084,094, and total expenses were $2,079,874 and $2,013,31 r, respectively.

Qualified Opinion

In our opinion, except for the effects on the 2016 and 2015 combined basic financial statements of excluding the Jefferson Live! LLC2016 and 2015 combined basic financial statements referred to in the Basis for Qualified Opinion paragraph, the combined basic financial statements referred to above present fairly, in all material respects, the financial position of Jefferson Public Radio and JPR Foundation, Inc. as of June 30,2016 and 2015 and the activities and its cash flows for the years then ended in conformity with accounting principles generally accepted in the united States of America.

Other Matters

Suppl e men lary InJbrmation

Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively comprise the combined basic financial statements. The supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the combined basic financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the combined basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the combined basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined basic financial statements or to the combined basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information, as listed in the table of contents, is fairly stated, in all material respects, in relation to the combined basic financial statements as a whole. a47zQ7*, ROYR. ROGERS, CPA PAULY, ROGERS AND CO., P.C

.) COMBINED BASIC FINANCIAL STATEMENTS This Page Intentionally Left Blank JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC. Combined Statements of Financial Position At June 30,2016 and20l5

20r6 20t5 Assets

Current Assets Cash and cash equivalents s 1,687,212 $ l, I 10,017 Pledges receivable, net l60,96g 146,532 Other receivables, net 56,740 t59,277 Related parfy receivables 460,109 460,109 Prepaid expenses t\ 1L1 27,282 Deposits 1,500 4,079 Total Current Assets 2,392,271 1,907,296

Property and Equipment Land and non-depreciable buildings 421,023 293,906 Buildings and equipment, net of accumulated depreciation r,2t6.897 1,470,742 Total Properry and Equipment 1,637,920 1,764,648

Other Assets Prepaid expenses, non-current 2,370 2,370 Long-term investments 120,725 120,564 Beneficial interest in funds held by OCF 32,929 Mt. Baldy Communications, LLC 59,450 66,617 Intangible assets, net t,7 45,004 1,735,004 Total Other Assets 1,927,549 1,957,484

Total Assets s 5,957,740 $ 5,629,429

Liabilities and Net Assets

Current Liabilities Accounts payable $ 37,848 s 30,221 Accrued liabilities 131,305 125,017 Accrued vacation 70,324 65,224 Deferred income 70,s89 57,240 Lease deposits I,000 1,000 Current portion of capital lease obligations 17,116 Current portion of long-term debt 9 142 8,924 Total Current Liabilities 320,208 304,742

Long-term debt, net ofcurrent portion 22,757 32,041

Total Liabilities 342,965 336,783

Net Assets Unrestricted 5,614,775 5,259,716 Permanently restricted 32,929 Total Net Assets 5,614,775 5,292,645 Total Liabilities and Net Assets $ 5,957,740 $ s,629,428

-J- JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC. Combined Statements of Activities For the Year Ended June 30. 2016 and 2Ol5 (Restated) (Restated) 20t6 2015 Unrestricted Temporarily Permanently Combined Combined Total Restricted Restricted Total Total Revenues, Support and Other Income Revenues and support Membership and contributions s t,262,537 S $ s r,262,537 $ l,l04,t l6 Program underwriting 672,024 672,024 654,449 Southern Oregon University General appropriation 259,"t00 259,700 24s,969 Indirect administrative support 7'17,964 777,964 753,540 Corporation for Public Broadcasting Grants 304,340 89,470 393,810 400,875 Other grants and planned gifts qts 1 44,343 48,268 434,088 Donated programs, services and materials 160,3 I I r60,3r I r 38,945 Fundraising events 79,t96 79,196 33,928 Jeffnet internet service royalties 38,654 38,654 41,509 Total Revenues and Support 3,558,65 I r33,8r3 3,692,464 3,807,4 r 9 Other Income Rents and royalties 126,085 r 26,085 't72,684 Miscellaneous income r,856 I,856 12,329 Interest and dividend income s,731 5,737 3,697 Realized and unrealized gain 6,8r0 6,8r0 10,473 Change in value ofbeneficial interest (1,966) ( r ,966) (5e) Net assets released from restrictions 164,776 (133,813) (3 0,963) Total Other lncome 305,264 ( i 33,8 r 3) (32,92e) 138,522 199,124

Total Revenues, Support and Other Income $ 3,863,915 $ $ (32,929) $ 3,830,986 $ 4,006,543 Expenses Program services Programming and production 1,296,622 r,296,622 1,236,669 Broadcasting 1,085,191 1,085, r 91 1,080,600 Program information and promotion 264,467 264,467 216,222 Total Program Services 2,646,280 2,646,280 2,533,491

Supporting services

Management and general 178,267 178,267 184,942 Fundraising and membership development 272,440 272,440 216,039 Underwriting and grant solicitation r 58,024 r 58,024 156,467 Depreciation 253,845 2s3,845 255,584 Total Supporting Services 862,576 862,576 8 13,032 Total Expenses 3,508,856 3,508,856 3,346,523

Change in Net Assets 3 55,059 (32,929) 322,130 660,020

Net Assets at Beginning of Year s,259,7 t6 32,929 5,292,645 4,632,625

Net Assets at End of Year s 5,614,775 $ $ s 5,614,775 S 5,292,64s

-4- JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC. Combined Statements of Cash Flows For the Years Ended June 30, 2016 and20l5

2016 2015 Cash Flows from Operating Activities Change in net assets s 322,130 $ 660,020 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 253,845 255,584 Unrealized gain / loss 5,709 10,414 Change in value of beneficial interest 1,965 59 Increase (decrease) in operating assets Pledges receivable (14,436) (4,621) Other receivables 102,537 (97,011) Prepaid expenses 1,540 3,502 Deposits 2,5'79 Increase (decrease) in operating Iiabilities Accounts payable 7,626 (3,580) Accrued liabilities 6,287 4,410 Accrued vacation 5,1 00 (2,685) Deferred income t3,349 92 Net Cash Provided (Used) by Operating Activities 708,231 926,124

Cash Flows from lnvesting Activities Investments receipts (disbursements), net 32,261 (22,270) Purchase of property and equipment (t27,117) (39,121) Purchase of intangible assets (10,000) (70,450) Net Cash Provided (Used) by Investing Activities (104,856) (131,841)

Cash Flows from Financing Activities Payrnbnts on long-term debt (9,066) (30,717) Pa)'rnents on capital lease obligations (l7,lt6) (34,796) Net Cash Provided (Used) by Financing Activities (26,182) (65,513)

Net Increase (Decrease) in Cash and Cash Equivalents 577,193 628,770

Cash and Cash Equivalents at Beginning of Year 1,110,017 481,247

Cash and Cash Equivalents at End of Year $ I ,687,2 l0 s 1,110,017

Supplemental disclosure of cash flow information Cash paid for interest $ 5,702 $ 6,170

5 This Page Intentionally Left Blank NOTES TO THE COMBINED BASIC FINANCIAL STATEMENTS This Page Intentionally Left Blank Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

1. NATURE OF OPERATIONS

Jefferson Public Radio (JPR) is operated by Southern Oregon University (SoU) as an outreach program of its regional educational mission. SOU is a State of Oregon public university governed by a eoaid of Trustees' JPR provides public broadcasting services to listeners in Southern Oregon and Northern California.

The JPR Foundation, Inc. (the Foundation) was established in 1991 to support JPR's educational and public service mission. The Foundation is an Oregon nonprofit, tax-exempt organization governed by a Board of Directors.

2. SUMMARY OF SIGNIFICANT ACCOTINTING POLICIES

BASIS OF ACCOUNTING

The combined basic financial statements are presented on the accrual basis of accounting.

BASIS OF PRESENTATION

The accompanying basic financial statements were prepared in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958-210. Under FASB ASC 95g- 210, information regarding financial position is reported according to three classes of net assets (unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets) based upon the existence or absence of donor-imposed restrictions. Accordingly, the net assets are classified and reported as follows:

Unrestricted - Revenue, gains, and other suppoft that have no extemal restrictions on their use or pulpose and can be used for any purpose consistent with the bylaws are unrestricted. Unrestricted net assets include all assets available for general purposes.

Temporarily Restricted - Contributions that are received with donor stipulations that limit their use are temporarily restricted. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions.

Permanently Restricted - Contributions that have been restricted by donor or by law to be maintained in perpetuity are perrnanently restricted. Permanently restricted net assets consist of beneficial interest in funds held by other organizations. The income from these assets can be used to support general activities.

PRTNCIPLES OF COMBINATION

The combined basic financial statements of Jefferson Public Radio and the JPR Foundation, Inc. include the JPR Foundation and the accounts of Southern Oregon University related to Jefferson public Radio. Though not required under generally accepted accounting principles, the JpR Foundation has been combined with Jefferson Public Radio to provide full disclosure of Jefferson Public Radio's activities.

-6- Jefferson Public Radio and JpR Foundation, Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

2. SUMMARY OF SIGNIFICANT ACCOLINTING POLICIES (CONTTNUED)

CASH AND CASH EQUIVALENTS

For combined basic financial statement purposes, all highly Iiquid investments with an original maturity of three months or less from the date of purchase are.on-ria"."d to be cash equivalents.

USE OF ESTIMATES

The preparation of the combined basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the repofted amounts of assets and iiabilities and disclosure of contingent assets and liabilities at the date the basic of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. CONTzuBUTIONS

Contributions are recognized in accordance with FASB ACS 958-605. In accordance with FASB ACS 958-605, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature ofany donor restrictions. All donor-related support is reported as an in-crease in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriciion expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarilyiestricted neiassets are reclassified to unrestricted net assets and reported in the combined statement of activities as net assets released from restrictions.

PLEDGES RECETVABLE

Unconditional pledges receivable, less an allowance for uncollectible amounts, are recognized as revenues in the period the promise is made and as assets, decreases of liabilities, or expenses depending on the form of the benefit received. The allowance for uncollectible pledges is an estimate based on management's knowledge of historical pledge collection rates.

NONCASH CONTRIBUTIONS

Noncash contributions are recorded as revenue at their estimated fair value at the date of receipt.

Noncash contributions of $160,311 and $138,945 consisting of donated programs, promotions, services and materials were received during the years ended June 30,10rc ana201i, rJspe"tiu"ty.

INDIRECT ADMINISTRATTVE SUPPORT

A portion of the general overhead costs of Southern oregon Universityrelates to and benefits JpR. Such items include administrative costs, utilities, maintenanie and repaiis. These services were provided without cost. The fair value of these services have been allocated to JPR and reported as revenue and expense in the accompanying combined statement of activities.

7 Jefferson Public Radio and JPR Foundation, Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

2. SUMMARY OF SIGNIFICANT ACCOLTNTING POLICIES (CONTINUED)

FAIR VALUE MEASUREMENTS

FASB ACS 820-10 establishes a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in an active market for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy under FASB ASC 820-10 are described as follows:

Level I - quoted prices in active markets for identical securities

Level 2 - other significant, observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risk, and others)

Level 3 - significant unobservable inputs

The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used,need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value of long-term pledge receivables is estimated as the present value of future cash flows determined using an estimated risk-free interest rate. There was no discount in 2016 or 2015. lnvestments in mutual funds traded on a national securities exchange are valued at the last reported sales price on the last business day ofthe year.

The market value of the beneficial interest in the JPR Foundation Endowment Fund is based on the value of underlying assets owned by Oregon Community Foundation. See Note 19.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although management believes its valuation methods are appropriate and consistent with other market parlicipants, the use of different methodologies or assumptions to determine fair value of certain investments could result in a different fair value measurement at the reponing date.

INVESTMENT VALUATION AND INCOME RECOGNITION

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Purchases and sales of securities are recorded on a trade-basis. Interest income is recorded on the accrual basis. Net appreciation includes the gain and losses on investments bought and sold during the year, as well as market gain or loss on investments held during the year. Dividends are recorded on the ex- dividend date.

8 Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30, 2016 and 2015

2. SUMMARY OF SIGNiFICANT ACCOT.INTTNG POLICIES (CONTTNUED)

FLINCTIONAL ALLOCATION OF EXPENSES

The costs of providing the various programs and other activities are summarized on a functional basis in the combined statements of activities. Accordingly, certain costs have been allocated among program and support services based on total personnel costs or other systematic basis.

PROPERTY AND EQUIPMENT

Purchases of properly and equipment are recorded at cost. Purchases exceeding $5,000 and a useful life in excess of one year are capitalized. Costs of repairs and maintenance are expensed as incurred. Expenditures for properfy, equipment and major repairs that extend useful lives or add function are capitalized. When items of property and equipment are sold or retired, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations.

Donated properly and equipment is recorded at estimated fair value at the date of donation. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash must that be used to acquire properly and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, expirations of donor restrictions are reported when the donated or acquired assets are placed in service as instructed by the donor.

Properry and equipment is depreciated using the straight-line method over estimated useful lives ranging from three to thirteen years for equipment and ten to forfy years for buildings.

ADVERTISING EXPENSE

Advertising costs are expensed as they are incurred. Advertising expenses for the years ended June 30, 2016 and 2015 were $116,054 and $65,527, respectively.

PROGRAM LINDERWRITING

Revenue for program underwriting is recognized over the period covered. Expenditures of unrestricted funds are recognized as expenses when incurred. Costs incurred for programs that have not been broadcast are recorded as prepaid expenses. Prepaid expenses related to program underwriting for the years ended June 30, 2016 and 2015 were $7,817 and$j,gj3,respectively.

-9 - Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30, 2016 and 2015

3. TAX STATUS

Jefferson Public Radio is a department of Southern Oregon University and is exempt from federal and state income tax as a governmental entity. JPR Foundation, Inc. is exempt from federal and state income tax under Section 501(c)(3) of the Internal Revenue Code.

Revenue from sales of advertising in the JPR Foundation's Jefferson Journal publication is subject to tax on unrelated business income. At June 30, 2016 and 2015 no tax was due from this activity because the revenue does not exceed the expense ofproduction and distribution ofthe program guide.

U.S. Generally Accepted Accounting Principles require management to evaluate tax positions taken and recognize a tax liability (or asset) if an uncertain position has been taken that more likely than not would not be sustained upon examination by the Internal Revenue Service. The entity is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in process. Management believes it is no longer subject to income tax examinations for years prior to 2012.

4. CONCENTRATIONS OF CREDIT RISK

The JPR Foundation maintains accounts at multiple banks. In the case of deposits, there is a risk that in the event of a bank failure, the deposits may not be returned. As of June 30,2016 and 2015 the uninsured bank balances were $560,415 and $211,936, respectively.

The Foundation maintains a brokerage account for its long-term investments. The brokerage account is insured by the Securities Investors Protection Corporation (SIPC) for the maximum amount of $500,000 with a limit of $100,000 for cash. The SIPC covers the account in the event of investment firm failure, but not for market fluctuations in the value of the account. The value of the equity and bond fund securities in the account was $120,725 and $120,564 at June 30,2016 and2015, respectively.

5. PLEDGES RECETVABLE

Pledges receivable are summarized as follows on June, 30

2016 20t5

Pledges expected to be collected in less than one year $ r&,253 s 172,391 Less allowance for uncollectible pledges (328s) (25,859) Net pledges receivable due in less than one year $ 160,968 $ 146,532

- 10- Jefferson Public Radio and JpR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

6. LONG-TERM INVESTMENTS

Long-term investments are stated at fair market value and are summarized as follows on June 30

2016 2015

Equity mutual funds $ 100,497 $ 100,523 Bond fund 29,229 20,041 Total long-term investments $lr},?rs S lr0J64 Thefollowingschedulesummarizestheinu",,*ffionffiinvestments The investment return is included in the combined statements of activities for the years ended June 30

20r6 2015

Interest and dividends g 1,009 $ 3,697 Net realized and unrealized gains (losses) (e28) 10,4'13 Net investment return $ 8l $ 14,t70 7. PROPERTY AND EOUIPMENT

The following is a summary of properly and equipment, less accumulated depreciation, on June 30 July I ,2015 Additions Deletions June 30, 2016 Capital As s ets, Non-Depreciab le Building $ $ 127,117 $ land $ 127,t17 293,906 293.906 Total Capital As s ets, Non-Depreciable $ 293.906 J____rn,tn_ $ s 42t.023 Capital As s ets, Depreciable Equipment s 3,734,327 $ $ (10,300) s 3.724.021 Total Capital Assets, Depreciable 3,734,327 (10,300) 3,724,027 Equipment 2,263,s85 $ 2s3,84s (10.300) 2,507,r30 Total A ccumulated Depreciation 2,263,595 253,845 (10,300) 2,507,130 Total Net Capital Assets, Depreciable $ 1,4'/0,742 $ 1.216.897 Total Property and Equipment $ 1,7&,&8 $ 1,637.920 Deletions represent removal of a capital asset that had been disposed of without sale

Iuly 1,2014 Additions Deletions June 30,2015 Capital As sets, Non-Depreciable l-and q 2%,e06 $ $ $ 293.906 Capital As sets, Depreciable Equipment $ 3.69s.206 S 39.12t S $ 3,734,327 Total Capital Assets, Depreciable 3,69s,206 39,121 3,734,32'/ Equipment 2.008.001 255.584 2,263,595 Total Accumulated Depreciation 2,008,001 255,584 2,263,585 Total Net Capital Assets, Depreciable $ 1,687,20s $ 1,470,742 Total Property and Equipment _$___ rBgL!l]_ $ 1.764.&8

- l1- Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

8. INTANGIBLE ASSETS

On June 30,2016 and 2015 intangible assets consisted of purchased and donated licenses for radio stations. The purchased licenses covered the following radio stations: KNHT, KTBR, KOOZ, KMJC, KHEC, KSYC, KJPR, and KNHM, and the FM broadcast translator K272FC. The donated licenses covered the following stations: KSJK, KPMO, and KAGI. Purchased licenses are recorded at cost, and donated licenses are recorded at the fair market value at the time of donation.

The provisions of FASB ASC 350, Intangibles - Goodwill and Other are followed. Under these provisions, assets with indefinite lives are not to be amortized. Licenses that had previously been amortized using estimated lives of 40 years are now considered to have indefinite lives. Accordingly, JPR has not recognized amortization expense for these intangible assets since adopting the accounting standard in 2005.

On June 30, 2016 and 2015 intangible assets consist of the following:

2016 20t5

Purchased licenses recorded at cost s 1,597,749 $ 1,587,749 Donated licenses recorded at fair market value 298,502 298,502 Total intangible assets 1,896,251 1,886251 Less accumulated amortization recognized in prior years (151,247) (rst,247) Intangible assets, net $ 1,745,004 _$__u31491_ Twelve FM stations were established on frequencies awarded by the Federal Communications Commission. Broadcasting equipment used to operate the stations is included in these combined basic financial statements. No value was recorded for radio licenses when awarded. Awarded station licenses include: KSOR, KSRG, KSRS, KNYR, KLMF, KSMF, KSBA, KSKF, KNCA, KNSQ, KLDD and KZBY.

9. INVESTMENT IN LIMITED LIABILITY COMPANY

During the year ended June 30, 2004, the Foundation contributed $33,750 to the capital of Mt. Baldy Communications, LLC in exchange for a l50% ownership interest in the Limited Liability Company. Mt. Baldy Communications, LLC owns and operates a communication site on Baldy Mountain in Jackson County, Oregon. The investment is recorded at l5o/o of the LLC's value. At June 30,2016 and 2015 the Foundation's interest in Mt. Baldy Communications, LLC was $59,450 and $66,617, respectively.

-12- Jefferson Public Radio and JPR Foundation, Inc. Notes to the Combined Basic Financial Statements June 30 2016 and 2015

IO. LONG-TERM DEBT

Beginning in fiscal year 2011 the Oregon University System (OUS) implemented an internal bank system. General obligation bonds issued by the OUS for JPR equipment purchases were converted to loans from the OUS Internal Bank. Overall debt service did not change with the conversion. Loan payments are due on December 31 and June 30 each year. The December payment is for one-third of the total annual payments and the June payment is for the remaining two-thirds of the annual payment. During the year ended June 30, 2015 the loan from OUS was transferred to Southern Oregon University.

Long-term debt consists of the following at June 30:

2016 2015 Note payable to the Southem Oregon University Intemal Bank resulting from conversion of general obligation bonds issued in 1998 and 2004 to purchase equipment. Terms of the note once required semi-annual payrnents on December 31 and June 30 on a reducing payment schedule. Due to transfer of loan to Southem Oregon University, terms of the note were amended during 2015 fiscal year to require semi-annual payments on August I and February I on a reducing payrnent schedule with a reducing interest rate. The note matures August 1,2037. $ 18,613 $ 22,651

Note payable to U.S. Bank dated September 9,2003, in the original amount of $75,000. Original note terrns required 59 nrrcnthly payments of $855 including interest at 6.5yo per annum The note terms were amended on September 10, 2008 to require 120 monthly payments of $518 including interest at 7.24o/o per annum The note matures September 10, 2018. The note is secured by real estate located in Redding, Califomia. 13,286 l g,3l4

Subtotal 3 1,899 44,965

Lrss current portion (9,142) (8,924)

Total s 22,757 $ 32,041

At June 30,2016 required minimum principal payments and interest on long-term debt are as follows

Princbal Interest Total 2017 s 9,142 $ 6286 $ tsA28 20r8 9lt8 5,975 15,393 2019 2,997 631 3,628 2020 6t9 426 1,045 2021 647 392 1,039 2022-2026 678 3,954 4,632 2027-2031 2,195 2,195 2032-2036 4,005 1,712 5,717 2037-2038 4,393 200 4,s93

Total _$_31,899_ $21,771 $ 53,670

-13- Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

11. CAPITAL LEASE OBLIGATIONS

Equipment subject to capital lease obligations is included in property and equipment. On June 30, 2016 and 2015 the cost of the equipment was $206,803 for both years. The related accumulated depreciation as of June 30,2016 and 2015 was $162,786 and $139,045 respectively, and the net book value was $44,017 and $67,758, respectively. Depreciation expense related to the leased equipment was $23,740 for both years

2016 2015 Lease dated october 15, 2008 in the original capitalized amount of $139,646 payable to U,S. Bancorp Business Equipment Finance Group. The lease requires g4 monthly payments of $2,212 beginning December 2008. The lease payments include implicit interest at the rate of 8.507% per annum. The lease matured with the final Davment in November 2015. $ $ 9,944

Lease dated September 22,2008 in the original capitalized amount of $21,255 payable to u.s. Bancorp Business Equipment Finance Group. Beginning october 15,2008, the lease requires l5 monthly payments of$367 and 69 payments of$325. The lease payments include implicit interest at the rate of 8,498% per annum. The lease matured with the final navment in October 2015. 1,275

Lease dated May 9, 201 I for the acquisition of a 201 I chevrolet Silverado truck in the original capitalized amount of $45,905 payable to u.s. Bancorp Business Equipment Finance Group. Beginning May 9, 201 l, the lease requires one payment of $15,000 followed by 59 monthly payments of $606. The lease payments include implicit interest at the rate of 5.992% per annum. The lease matured with the final payment in April20l6. s,897

Subtotal $ 17,116

Less current portion (1 7,1 1 6) Total $

-14- Jefferson Public Radio and JPR Foundation, Inc. Notes to the Combined Basic Financial Statements June 30, 2016 and 2015

1 2. CONTINGENT LIABILITIES

ln 2006 Jefferson Public Radio and the JPR Foundation received a grant from the Corporation for public Broadcasting (CPB) Digital radio conversion fund to purchase equipment. This grant award contains a provision that the grantee shall, upon request of the CPB, return any or all of the total CpB grant to CpB on the occurrence of certain events. If, within l0 years of the grant, the grantee ceases to be qualified to receive a community service grant from CPB for any of its stations, or the grantee sells, transfers, or assigns any portion of the equipment acquired under the grant to an entity not qualified to receive community service grants from CPB, the contingent liability arises to return any or all of the CpB grant to CPB upon its request. As of June 30,2016 and 2015 the total of the contingent liability, if all CpB funding forthe Digital Conversion Award was requested to be returned, would be $i,59g,962. Afterthe calendar year 2016 there will no longer be a contingent liability.

There are recorded liens on equipment paid with grants from NTIA, U.S. Department of Commerce. These liens provide the Federal government with rights to recover its share of the cost of the equipment purchased under NTIA grants during ten-year periods. In the event the station, during those periods, ceases to use said equipment for public radio purposes, it must return the grant funds reporteO Uy Nfn. Total liens at June 30,2016 and 201 5 were $ 192,83 I for both years.

13. NET ASSETS RELEASED FROM RESTRICTIONS

Net assets were released from restrictions for the following purposes as of June 30:

2016 201 s

CPB Grant, Radio Program and Broadcast s 89,470 $ 93,2r8 Beneficial interest in funds held by OCF 30,963 Okie Trust Endowment, Radio Operations 44,343 43,456 Total net assets released from restriction $ 164,776 $ t36,614

Permanently restricted net asset consisted of the following at June 30

20r6 201 5

Beneficial interest in funds held by OCF $ $ 32,929

I5. RELATED PARTY TRAN SACTIONS

The JPR Foundation is the sole owner of Jefferson Livel LLC. At June 30, 2016 and 2015 Jefferson Live! LLC owed JPR Foundation $98,924 for the Jefferson Square Project and $361,185 for the Holly Theatre Project, a total receivable of $460,109. There were no sales or purchases between these parties during 2016 and2015.

- t5 - Jefferson Public Radio and JPR Foundation, Inc. Notes to the Combined Basic Financial Statements June 30, 2016 and 2015

16. OPERATING LEASES

EXPENSE

Jefferson Public Radio and the JPR Foundation have entered into various leases for transmitter and translator sites. The leases expire at various dates ranging from January 1,2017 to September30,2029. For the years ended June 30,2016 and 2015 rental expense was $213,118 and 5202,539, respectively. As of June 30,2016 minimum annual lease payments for leases with terms in excess of one year are as follows:

2017 $ 139,954 2018 132,069 2019 113,623 2020 58,881 2021 44,505 2022-2026 65,329 2027-2030 40,334 Total s 594,695

INCOME

Jefferson Public Radio and the JPR Foundation also sublease sites to other parties. For the years ended June 30,2016 and 2015 rental income totaled $126,085 and $130,346 respectively. Subleases expire on dates ranging from December 14,2016 to September 30,2029. As of June 30,2016 minimum annual future receipts for subleases with terms in excess of one year are as follows:

2017 $ 100,041 201 8 92,471 2019 '7 5,544 2020 61,193 2021 60,307 2022-2026 328,693 2027-2030 238,'.l08 Total $ 956,957

-16- Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30, 2016 and 2015

17. FAIR VALUE MEASUREMENTS

The combined basic financial statements are prepared in accordance with the requirements of the Financial Accounting Standards Board Accounting Standards codification 820. Accordingly, investments in debt and equity securities with readily determinable values are required to be measured on a recurring basis at their fair value. In addition, long-term receivables are measured on a recurring basis at fair value.

Investments are reported at fair value using quoted market prices in active markets for identical assets (stock market quotes), This measurement standard is a Level I input which is considered to be the most objective standard of fair value measurement.

June 30, 2015 June 30,2016 Total trvel I kvel 3 Lrvel I Fair Value Inputs lnputs lnputs

[ong-term investments $ 120,564 $ 120,564 $ $ t20,725 Beneficial interest in funds held by others 32,929 32,929 Total $ 153,493 $ 120,s64 s 32,929 $ t20,725

Note 19 for changes in beneficial interest in funds held by others.

18. RESTATEMENT OF FINANCIAL STATEMENTS

The previously issued 2015 combined basic financial statements have been restated to reduce indirect support for Corporation for Public Broadcasting (CPB) due to a desk audit conducted by the CPB. Net assets were not affected by this change.

The effect on the previously issued 2015 combined basic financial statements is summarized as follows: Combined Statement of Activities for the Year Ended June 30, 2015 Previously lncrease Reported (Decrease) Restated Ind irect administrative s up port s 859,433 $ (10s,8e3) $ 753,540 Total Revenues and Support 3,913,3r2 (105,893) 3,807,419 Total Revenues, Support and Other Inconre 4,1t2,436 (105,893) 4,006,543 Programming and production 1,278,947 (42,278) 1,236,669

Broadcasting r, I 17,686 (37,086) l,080,600 Program information and promotion 223,635 (7,413) 216,222 Total Program Services 2,620,268 (86,777) 2,533,49r Management and general 191,278 (6,336) r84,942 Fundraising and membership developnrent 223,463 (7,424) 216,039

Underwriting and grant s olicitation 16r,824 (5,357) 156,467 Total Supporting Services 832,148 (19,1 l6) 8 13,032 Total Epenses 3,452,416 (105,893) 3,346,523

-17- Jefferson Public Radio and JPR Foundation,Inc. Notes to the Combined Basic Financial Statements June 30,2016 and 2015

19. BENEFICIAL INTEREST IN FL|NDS HELD BY OTHERS

The Oregon Community Foundation (OCF) administers an endowment fund for the benefit of JpR Foundation, Inc. under OCF's Endowment Paftners Program. The JPR Foundation Endowment Fund is a component fund of the Oregon Community Foundation. Under terms of the agreement made between OCF and the Foundation dated March 21,2007, OCF has the authority to modiff restrictions and conditions of the fund agreement under certain circumstances, without the approval of the Foundation. This authority is referred to as variance power. The JPR Foundation has a beneficial interest in funds held by OCF, and does not own the account. OCF shall distribute to JPR Foundation at least annually a percentage of the fair market value of the Fund based on OCF's percentage payout policy for permanent funds.

The Foundation Endowment Fund was fully distributed as of June 30, 2016. The value of the JPR Foundation Endowment Fund at OCF at June 30, 2015 was 532,929. The value is stated at the endowment fund balance reported to the JPR Foundation by OCF. Because the JPR Foundation's assets is the beneficial interest itself, and not the underlying assets which are owned by OCF, the JPR Foundation is required by FASB ASC 820 to use significant unobservable inputs in estimating fair value of the beneficial interest. According to FASB ASC 820 this is a Level 3 input.

The fair value of the JPR Foundation's beneficial interest in funds held by OCF is summarized as follows for the years ended June 30, 2016 and2015:

2016 2015

Balance at beginning of year $ 32,929 $ 32,988 lnterest and dividend income 51 308 Net realized and unrealized gains (1,9s1) (81) Distributions paid out (30,964) Investment and management fees (6s) (286) Change in value of beneficial interest (32,929) (se)

Balance at end ofyear s s 32,929

UENT

Subsequent events have been evaluated for the year ended June 30, 2016 through September 27,2076,the issuance date of the combined basic financial statements. No subsequent events were noted by management that required note disclosure.

- 18 - This Page Intentionally Left Blank S TIPPLEMENTARY INF ORMATI ON This Page Intentionally Left Blank JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC. Combining Schedule of Financial Position at June 30,2016

JPR JPR-SOU Foundation Eliminations Total

Assets

Current Assets Cash and cash equivalents $ 77,349 $ 1,609,863 s s 1,687,212 Pledges receivable, net 160,968 160,968 Related parly receivable 460, I 09 460,709 Other receivables, net 20,903 35,837 56,740 Prepaid expenses I 0,1 09 15,633 25,742 Deposits 1,500 1,500 Total Current Assets 108,36 I 2,293,910 2,392,271

Property and Equipment Land and non-depreciable buildings 127,117 293,906 421,023 Buildings and equipment, net of accumulated depreciation 93 1,860 285,037 t,2t6,897 Total Property and Equipment 1,0s8,977 578 943 1,637,920

Other Assets Prepaid expenses, non-current 2,370 2,370 Long-term investments 120,725 120,725 Mt. Baldy Communications, LLC 59,450 59,450 Intangible assets, net 1,745,004 - 1,745,004 Total Other Assets 1,747,374 180,175 _ I A)1 \AA

Total Assets s 2,914,712 $ 3,043,028 $ $ s,9s7,740

Liabilities and Net Assets

Current Liabilities Accounts payable $ 30,600 $ 7,248 s $ 37,848 Accrued liabilities t76,969 14,336 l3 I ,305 Accrued vacation 59,548 10,776 70324 Deferred income 70,589 70,589 Lease deposits 1,000 1,000 Current portion oflong-term debt J 892 5,250 9,r42 Total Current Liabilities il 009 109 199 320,208

Long-term debt, net ofcurrent portion t4.721 8 036 22,757

Total Liabilities 225,730 t17,235 342,965

Net Assets 2,6gg,gg2 2,925,793 5,614,775

Total Liabilities and Net Assets $ 2,914,'lt2 $ 3,043,028 $ $ 5,957,740

-19- JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC. Combining Schedule of Financial Position at June 30,2015

JPR JPR-SOU Foundation Eliminations Total

Assets

Current Assets Cash and cash equivalents $ 10,369 $ 1,099,648 $ $ l,l10,017 Pledges receivable, net 146,532 146,532 Related party receivable 460, l 09 460, I 0g Other receivables, net 20,195 139,082 159,277 Prepaid expenses 9,607 17,675 27,292 Deposits 4,079 4,079 Total Current Assets 40,171 1,967,r25 l,g0'7,296

Property and Equipment Land and non-depreciable buildings 293',906 293,906 Buildings and equipment, net of accumulated depreciation 1,041,687 429,055 I,470,742 Total Properfy and Equipment 1,041,687 722,967 1,764,649

Other Assets Prepaid expenses, non-current 2,370 2,370 Long-term investments 120,564 120,564 Beneficial interest in funds held by OCF 32,929 32,929 Mt. Baldy Communications, LLC 66,617 66,617 Intangible assets, net 399,150 1,335,854 - 1,735,004 Total Other Assets 40t,520 1,555,964 - 1,957,494

Total Assets $ 1,483,378 s 4,146,050 $ s 5,629,429

Liabilities and Net Assets

Current Liabilities Accounts payable $ 20,380 $ 9,841 $ $ 30,221 Accrued liabilities 111,921 13,090 125,017 Accrued vacation 56,891 8,333 65,224 Deferred income 57,240 57,240 Lease deposits 1,000 1,000 Current portion of capital lease obligations 17,116 17,116 Current portion of long-term debt 4,038 4,886 8,924 Total Current Liabilities 193,236 111,506 304,742

Long-term debt, net ofcurrent portion r 8,613 13,428 32,041

Total Liabilities 211,849 124,934 336,783

Net Assets 1,271,529 4,021,tt6 5,292,645

Total Liabilities and Net Assets $ I,483,378 $ 4,146,050 $ $ 5,629,428

-20- JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC. Combining Schedule of Activities For the Year Ended June 30, 2016

JPR JPR-SOU Foundation Eliminations Total

Revenues, Support and Other Income Revenues and support Membership and contributions $ 492 s 1,262,045 $ s 1,262,537 Program underwriting 6,875 665,149 672,024 State appropriations 259,700 259,700 Indirect administrative support '777,964 777,964

Corporation for Public Broadcasting Grants 393,8 1 0 393,8 l0 Other grants and planned gifts 48,268 48,268 Donated programs, services and materials 45,143 115,r68 160,3 I l Fundraising events 4 t,l0l 38,095 79,196 Jeffrret intemet service royalties 38,654 38,654

Total Revenues and Support 1,525,085 2,t67 ,379 3,692.464

Other Income Rents and royalties 88,213 37,872 126,085 Miscellaneous income 900 956 1,856 Interest and dividend income 54 5,683 5,737 Realized and unrealized gain 6,810 6,8r0 Change in value ofbeneficial interest (1,e66) (1,966)

Total Other Income 89,167 49,355 138,522

Total Revenues, Suppoft, and Other Income 1,614,252 2,216,734 3,830,986

Expenses Program Services Programming and production 1,196,944 99,678 1,296,622

Broadcasting 93 1,006 1 54,1 85 1,085,191 Program information and promotion I 10,598 l 53,869 264,467 Total Program Services 2,238,548 407,732 2,646,280

Supporting Services

Management and general l 70,03 1 8,236 r78,267 Fundraising and membership development 144,3t5 128,12s 272,440 Underwriting and grant solicitation t06,932 51,092 15 8,024 Depreciation t79,201 74,644 253,845 Total Supporting Services 600,479 262,097 862,576

Total Expenses 2,839,027 669,829 3,508,856

Transfers in (out) 2,642,228 (2,642,228)

Change in Net Assets 1,417 ,453 (1,095,323) 322,130

Net Assets at Beginning of Year 1,271,529 4,021,1t6 5,292,645

Net Assets at End of Year s 2,688,982 S 2,925,793 $ $ 5,614,775

-21 - JEFFERSON PUBLIC RADIO AND JPR FOUNDATION, INC Combining Schedule of Activities For the year ended June 30, 2015

JPR JPR-SOU Foundation Eliminations Total

Revenues, Supporl and Other Income Revenues and support Membership and contributions $ 585 $ I,r03,53 l $ $ 1,104,r l6 Program underwriting 5,850 648,599 654,449 State appropriations 245,969 245,969 Indirect administrative support 753,540 753,540 Corporation for Public Broadcasting Grants 400,875 400,875 Other grants and planned gifts 434,088 434,088 Donated programs, services and materials 58,23 5 80,710 138,945 Fundraising events 33,928 33,928 Jeffnet internet service royalties 41,509 4 1,509

Total Revenues and Support t,465,054 2,342,365 3,807,419

Other Income Rents and royalties 94,739 77,94s t72,684 Miscellaneous income 1r,979 350 12,329 Interest and dividend income 44 3,653 3,697 Realized and unrealized gain 10,473 10,473 Change in value ofbeneficial interest (5e) (5e)

Total Other Income 106,762 92,362 199,124

Total Revenues, Support, Other Income and Transfers 1,57 l.8 16 2,434,727 4,006,543

Expenses Program Services

Programming and production I , l4 1,891 94,778 t,236,669 Broadcasting 900,760 179,840 r,080,600 Program information and promotion 99,432 1r6,790 216,222 Total Program Services 2,142,083 391,408 2,533,491

Supporting Services Management and general 173,464 11,478 184,942 Fundraising and membership development l3 I,606 84,433 216,039 Underwriting and grant solicitation r06,133 50,3 34 t56,467 Depreciation l5 8,628 96,956 255,584 Total Supporting Services 569,83 I 243,201 813,032

Total Expenses 2,711,914 634,609 3.346,523

Transfers in (out) 1,090,000 (1,090,000)

Change in Net Assets (50,0e8) 710,t 18 660,020

Net Assets at Beginning of Year r,32t,627 3,310,998 4,632,625

Net Assets at End of Year s t,271,529 $ 4,021,116 $ s 5,292,645

"l ", JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC Schedule of Expenses by Entity For the Year Ended June 30, 201 6

JPR JPR-SOU Foundation Total

Salaries and benefits $ 966,339 $ 143,983 $ I,1 10,322 Advertising 4,72Q r 11,334 I 16,054 Bank and credit card fees 20,457 20,457 Bad debts 29,147 29,141 Permits and fees 4l 573 614 Dues and subscriptions 8,685 8,68s Telephone / data lines 12,751 325 13,076 Postage 26,890 26,890 Printing 135 39,195 39,330 Insurance 5,516 7,320 12,836 Interest 5,158 1,190 6,348 Programming 390,422 3,795 394,217 Professional services / contract labor 13,351 25,86r 39,212 Legal 36,000 63 36,063 Repairs, maintenance and equipment I03,000 930 103,930 Properfy leases 163,973 54,192 2l 8,165 Utilities 101,533 83,010 184,543 Property taxes 224 1,060 1,284 Service and supplies 7,216 3,353 10,569 Special events 334 35,547 3 5,881 Special projects l13 113 Travel 17,321 5,t57 22,478 Donated services and materials 45,143 r,696 46,839 lndirect admin. support 777,964 777,964 Depreciation t79,201 74,644 253,845

Total Expenses $ 2,839,027 S 669,829 $ 3,508,856

23 JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC. Schedule of Expenses by Entity

For the year ended June 30, 201 5

JPR JPR-SOU Foundation Total

Salaries and benefits $ 925,271 s r 36,069 $ 1,061,340 Advertising 4,718 60,809 65,527 Bank and credit card fees 77,205 17,205 Bad debts 19,705 19,705 Permits and fees 3,5 l0 3,510 Dues and subscriptions 8,1 99 44t 8,640 Telephone / data lines I 1,073 r,930 13,003 Postage 3t,7 61 31,761 Printing 50,463 50,463 Insurance 5,027 7,031 12,058 Interest 4,251 I,609 5,959 Programming 373,026 110 373,136 Professional services / contract labor I l,400 14,215 25,615 Legal 36,000 1,799 37,788 Repairs, maintenance and equipment 92,489 629 93,118 Property leases t48,66s s3,874 202,539 Utilities 100,81r 85,395 196,206 Properfy taxes 232 955 l,l g7 Service and supplies I 1,540 4,362 15,902 Special events t25 7,555 7,680 Special projects 6,551 6,55 r Travel 8,683 8,699 t7,382 Donated services and materials 58,235 22,989 81,224 Indirect admin. support 753,540 753,540 Depreciation 158,629 96,955 255,584

Total Expenses s 2,711,914 $ 634,609 S 3,346,523

24 JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC. Combining Schedule of Activities For the Year Ended June 30. 2016

KSOR-FM KNCA.FM Total

Revenues, Support and Other Income Revenues and support Membership and contributions $ 1,078,984 $ 183,553 $ 1,262,537 Program underwriting 587,441 84,583 672,024 State appropriations 153,13 I 106,569 259,700 Indirect administrative support 619,218 158,746 777,964 Corporation for Public Broadcasting Grants 260,465 133,345 393,810 Other grants and planned gifts 49,269 48,268 Donated programs, services and materials 92,668 67,643 160,31 I Fundraising events 79,196 79,196 Jeffuet internet service royalties 3 8,654 38,654

Total Revenues and Support 2,958,025 '734,439 3,692,464

Other Income Rents and royalties 60,1 56 65,929 126,085 Miscellaneous income 1,856 1,856 Interest and dividend income 5,73',7 5,737 Realized and unrealized gain (loss) 6,810 6,810 Change in value of beneficial interest (t,966) (1,966)

Total Other Income 72.593 6s,929 r38.522

Total Revenues, Support, Other Income and Transfers 3,030,618 800,368 3,830,986

Expenses Program Services Programming and production 846,201 450,421 1,296,622 Broadcasting 939,781 145,410 1,085,191 Program information and promotion 2tt 663 52,804 264,467 Total Program Services 1,997 ,645 648,635 2,646,280

Supporting Services Management and general 162,252 16,015 178,267 Fundraising and membership development 237,804 34,636 272,440 Underwiting and grant solicitation 116,829 41,195 158,024 Depreciation 190,980 62,865 253.845 Total Supporting Services 707 865 154,7ll 862,s76

Total Expenses 2,705,510 803,346 3,508,856

Change in Net Assets 325,1 08 (2,978) 322,130

Net Assets at Beginning of Year 5,302,379 (9,734), 5,292,645

Net Assets at End of Year $ 5,627,487 $ (12,712) S 5,614,775

25 JEFFERSON PUBLIC RADIO AND JPR FOUNDATION,INC. Combining Schedule of Activities For the year ended June 30. 2015

KSOR-FM KNCA-FM Total

Revenues, Support and Other Income Revenues and support Membership and contributions $ 914,085 s 190,031 $ 1,104,116 Program underwriting 586,292 68,157 654,449 State appropriations 143,529 102,440 245,969 Indirect administrative support 603,232 150,308 753,540 Corporation for Public Broadcasting Grants 266,087 134,789 400,875 Other grants and planned gifts 434,088 434,099 Donated programs, services and materials 86,574 52,371 138,945 Fundraising events 33,928 33,929 Jeffnet internet service royalties 41,509 41,509

Total Revenues and Support J 109 324 698,095 3,907,479

Other Income Rents and royalties 99,501 73,183 172,684 Miscellaneous income 6,329 6,000 12,329 Interest and dividend income 3,697 3,69',7 Realized and unrealized gain (loss) 10,473 10,473 Change in value of beneficial interest (se) (se)

Total Other Income 119 94t 79,183 199,124

Total Revenues, Support, Other Income and Transfers 3,229,265 777,278 4,006,543

Expenses Program Services Programming and production 835,'719 400,950 1,236,669 Broadcasting 940,28s 140,3 I 5 1,080,600 Program information and promotion t76,657 39,565 216,222 Total Program Services 1,952,661 580 830 2,533,491

Supporting Services Management and general 143,404 41,538 184,942 Fundraising and membership development 202,5t1 13,528 216,039 Underwriting and grant solicitation 116,384 40,083 156,467 Depreciation 192,'r19 62,86s 255,584 Total Supporting Services 655,018 158 014 8 I 3,032

Total Expenses 2,607,679 '738 844 3,346,523

Change in Net Assets 62t,586 38,434 660,020

Net Assets at Beginning of Year 4,680,793 (48,168) 4,632,62s

Net Assets at End of Year $ 5,302,379 $ (9,734) $ 5,292,645

26