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Red River Radio Network KDAQ-FM, KLSA-FM, KBSA-FM, AND KLDN-FM RADIO STATIONS LOUISIANA STATE UNIVERSITY IN SHREVEPORT STATE OF LOUISIANA JUNE 30, 2006 U nder provisions cf state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date /^/ 7~ 0 KDAO-FM. KLSA-FM. KBSA-FM. AND KLDN-FM RADIO STATIONS LOUISIANA STATE UNIVERSITY IN SHREVEPORT STATE OF LOUISIANA TABLE OF CONTENTS Statement Page Independent Auditor's Report 1 Statement of Financial Position A 2 Statement of Activities B 3 Statement of Cash Flows C 4 Notes to the Financial Statements 5-11 333 Ti-XAS S'm-tvT PARTNERS ROY E. PRESTWOOD, CPA j HEARD I5rn FLOCK S] rNc.i-:K RKKNARD, JK., GPA A. D. JOHNSON, Jit., CI-A H.Q. GAHAGAN, JR., CI-A, A PC RON W. STEWART, CI»A, APC SHRKVKI'OHT, I.A 71101 l GERALD W. HE DC, COCK, JR., CPA, At c BKNJAMIN C. WOODS, CIJA/AHV, CVA MCELROY 318 429-1525 TlM H. NlELSKN, (;|>A, AK: 318 429-2070 FAX JOHN W. DKAN, CCA, AFC OP COUNSEL & VESTAL POST OPICI; Box 1607 MARK D. Ki.i)Ri-:rjOL, ci'A RoiiKKT L. DEAN, <:PA GlLHKRT R. SHANI.EY, JR., CPA LLP Siiiuivi-i'OKT. LA Cl-RTIHKU PUBLIC ACCOUNTANTS STKPHI-N W. CKAIC,, CPA C. CODY WHITP., JR., CPA, AI-C 71365-1607 J. PTTP.K GAI-TNRY, CPA, APC December 14, 2006 Louisiana State University in Shreveport State of Louisiana Shreveport, Louisiana Independent Auditor's Report We have audited the accompanying statement of financial position, statement of activities, and statement of cash flows of Radio Stations KDAQ-FM, KLSA-FM, KBSA-FM, and KLDN-FM, Louisiana State University in Shreveport, public telecommunications entities operated by Louisiana State University in Shreveport, as of and for the year ended June 30,2006 (with summarized total for 2005). These financial statements are the responsibility of management of the radio stations. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the financial statements of Radio Stations KDAQ-FM, KLSA-FM, KBSA-FM, and KLDN-FM, Louisiana State University in Shreveport, are intended to present the financial position, changes in net assets, and cash flows on only that portion of the funds of Louisiana State University in Shreveport that is attributable to the transactions of the radio stations. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Radio Stations KDAQ-FM, KLSA-FM, KBSA-FM, and KLDN-FM, Louisiana State University in Shreveport, at June 30, 2006, and the changes in net assets and the cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. L\f [email protected] E-MAIL www,hrnvcpa.com Wi-is KDAQ-FM, KLSA-FM, KBSA-FM, AND KLDN-FM RADIO STATIONS A Public Telecommunications Entity Operated by Louisiana State University in Shreveport Statement of Financial Position June 30, 2006 (With Comparative Totals for 2005) Statement A 2006 Operating Funds Temporarily 2005 ASSETS Unrestricted Restricted Total Total Current assets: Cash and cash equivalents 71,840 83,410 155,250 146,929 Property and equipment: Equipment (net of accumulated depreciation) Total assets 71,840 83,410 155,250 146.929 LIABILITIES AND NET ASSETS Current liabilities: Deferred revenue-unexpended grants - 83,410 83,410 57,927 Long-term liabilities: Accrued sick and annual leave payable 32,729 - 32,729 27,417 Total liabilities 32,729 83,410 116,139 85,344 Net assets: Unrestricted 39,111 -_ 39,111 61.585 Total liabilities and net assets 71,840 83.410 155.250 146.929 The accompanying notes are an integral part of this statement. KDAQ-FM, KLSA-FM, KBSA-FM, AND KLDN-FM RADIO STATIONS A Public Telecommunications Entity Operated by Louisiana State University in Shreveport Statement of Activities For the Year Ended June 30, 2006 (With Comparative Totals for 2005) Statement B 2006 Operating Funds Temporarily 2005 Unrestricted Restricted Total Total Revenues, gains and other support: Contributions 513,598 513,598 485,170 Investment income - 200 Underwriting 147,403 147,403 112,608 Corporation for Public Broadcasting Community service grant-general - 119,663 119,663 108,345 National program production and acquisition grant 45,413 45,413 44,253 Internet grant 9,606 9,606 Hurricane emergency grant 24,984 24,984 Rural bonus grant 31,971 31,971 RLAIF grant 19,687 19,687 Louisiana Public Broadcasting grant 25,000 25,000 25,000 Community Foundation Grant 30,368 30,368 5,632 Shreveport Regional Arts Council 4 4 1,802 Other grants 4,584 4,584 Lease agreements 6.773 6,773 5,560 Total revenues, gains and other support 667,774 311,280 979,054 788,570 Expenses: Program services- Programming and production 94,305 254,472 348,777 213,665 Broadcasting 213,163 1,806 214,969 260,668 Program information and promotion 7.735 7,735 9,144 Total program expenses 315,203 256,278 571,481 483,477 Supporting services- Management and general 286,331 46,712 333,043 280,835 Fund raising and membership development 39,023 5,752 44,775 93,667 Underwriting and grant solicitation 49.691 2,538 52,229 32,486 Total supporting expenses 375,045 55,002 430,047 406,988 Total expenses 690,248 311,280 1,001,528 890,465 Change in net assets (22,474) - (22,474) (101,895) _ Net assets, beginning of year, as restated 61,585 61.585 163,480 - Net assets, end of year 39.111 39.111 !•-•" ^^^SSS^SS61.585S The accompanying notes are an integral part of this statement. KDAQ-FM, KLSA-FM, KBSA-FM, AND KLDN-FM RADIO STATIONS Louisiana State University in Shreveport Statement of Cash Flows For the Year Ended June 30, 2006 (With Comparative Totals for 2005) Statement C 2006 Temporarily Unrestricted Restricted 2005 Fund Fund Totals Total Cash flows from operating activities: Change in net assets (22,474) (22,474) (101,895) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities Depreciation expense - 835 Increase (decrease) in accrued sick and annual leave payable 5,312 5,312 (7,459) Increase (decrease) in deferred revenue-unexpended grants 25.483 25,483 52.629 Net cash provided (used) by operating activities (17.162) 25.483 8.321 (55.890) Net increase (decrease) in cash and cash equivalents (17,162) 25,483 8,321 (55,890) Cash and cash equivalents at beginning of year 89.002 57.927 146,929 202.819 Cash and cash equivalents at end of year 71,840 83.410 155.250 146.929 The accompanying notes are an integral part of this statement. KDAQ-FM, KLSA-FM, KBSA-FM, AND KLDN-FM RADIO STATIONS A Public Telecommunications Entity Operated By Louisiana State University in Shreveport Notes to the Financial Statements June 30, 2006 1. Summary of Significant Accounting Policies The accompanying financial statements have been prepared on the accrual basis. The significant accounting policies that follow are provided to enhance the usefulness of the financial statements to the reader. A. Organization Louisiana State University in Shreveport is a publicly supported institution of higher education. The University is apolitical subdivision of the State of Louisiana, and is under the management and supervision of a body corporate known as the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College. The Board of Supervisors (the Board) is the governing body over all campuses under the organizational structure of the Louisiana State University (LSU) System. All members of the Board of Supervisors are appointed by the Governor. The Board of Supervisors is the legal holder of the licenses of all the stations in this network. On September 14, 1981, the Board of Supervisors (the Board), approved establishment of a public radio station (network) to be housed at, and operated by, Louisiana State University in Shreveport (LSU-S). On October 29, 1982, the Federal Communication Commission (FCC) assigned it the call letters KDAQ-FM. The Corporation for Public Broadcasting (CPB) was contacted in an effort to gain an understanding of the requirements to becoming a CPB "supported" station. In 1985, the radio station attained this status. In 1985, a second station was established on the Louisiana State University at Alexandria campus (LSU-A). This station was established to be operated by LSU-S as a simulcast of KDAQ-FM. On May 17, 1985, the FCC assigned it the call letters KLSA-FM. In 1987, a third station was established in El Dorado, Arkansas, to be operated by LSU-S as a simulcast of KDAQ-FM. On June 4, 1987, the FCC assigned it the call letters KBSA-FM.
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