VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years Ended September 30, 2018 and 2017 VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years Ended September 30, 2018 and 2017

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VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years Ended September 30, 2018 and 2017 VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years Ended September 30, 2018 and 2017 VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years ended September 30, 2018 and 2017 VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years ended September 30, 2018 and 2017 TABLE OF CONTENTS Page Independent Auditor's Report 1 Financial Statements Statements of Financial Position 2 Statement of Activities 3 Statement of Functional Expenses 4 Statements of Cash Flows 5 Notes to Financial Statements 6 INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Vermont Public Radio We have audited the accompanying financial statements of Vermont Public Radio (a nonprofit organization), which comprise the statement of financial position as of September 30, 2018, and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the 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 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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vermont Public Radio as of September 30, 2018, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the Vermont Public Radio's 2017 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated January 12, 2018. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2017 is consistent, in all material respects, with the audited financial statements from which it has been derived. Grippin, Donlan & Pinkham, PLC Registration number 553 February 1, 2019 -1- VERMONT PUBLIC RADIO STATEMENTS OF FINANCIAL POSITION September 30, 2018 and 2017 2018 2017 ASSETS Current Assets Cash and cash equivalents $ 676,677 $ 1,199,094 Underwriting receivable, net 277,935 239,436 Other receivables 2,580 1,520 Pledges receivable, net 1,504,905 679,389 Prepaid expenses 74,908 58,731 Total Current Assets 2,537,005 2,178,170 Other Assets Property and equipment, net 11,067,571 11,517,786 Investments 11,617,422 11,374,003 FCC licenses 3,262,606 3,262,606 Pledges receivable, net, less current portion 289,804 1,071,594 Beneficial interests in trusts 1,270,342 845,550 Total Other Assets 27,507,745 28,071,539 Total Assets $ 30,044,750 $ 30,249,709 LIABILITIES AND NET ASSETS Current Liabilities Current portion of long-term debt $ 7,508 $ - Accounts payable 143,587 199,771 Accrued payroll 217,374 326,557 Deferred income 37,309 55,583 Total Current Liabilities 405,778 581,911 Long-term Liabilities Long-term debt, less current portion 174,402 1,520,000 Total Long-term Liabilities 174,402 1,520,000 Total Liabilities 580,180 2,101,911 Net Assets Unrestricted Undesignated 811,501 1,383,119 Unrestricted reserves 2,172,951 1,507,674 Net property and equipment and FCC licenses 14,148,267 13,260,392 Subtotal - unrestricted 17,132,719 16,151,185 Temporarily restricted 4,269,930 3,983,032 Permanently restricted 8,061,921 8,013,581 Total Net Assets 29,464,570 28,147,798 Total Liabilities and Net Assets $ 30,044,750 $ 30,249,709 See notes to financial statements -2- VERMONT PUBLIC RADIO STATEMENT OF ACTIVITIES For the year ended September 30, 2018 (With comparative totals for 2017) Total Temporarily Permanently 2018 2017 Operating Non-operating Unrestricted Restricted Restricted Total Total Support and Revenue Individual giving and membership $ 4,863,527 $ - $ 4,863,527 $ - $ - $ 4,863,527 $ 4,807,121 Bequests and contributions 144,840 1,199,693 1,344,533 112,742 1,578 1,458,853 2,388,728 Underwriting 2,350,568 - 2,350,568 - - 2,350,568 2,266,694 Donated goods and services 891,679 - 891,679 - - 891,679 931,731 Corporation for Public Broadcasting (CPB) Grants 516,642 - 516,642 172,748 - 689,390 835,592 Investment income 240,093 102,067 342,160 511,428 - 853,588 1,367,598 Appropriated for debt repayment and operations 636,483 (636,483) - - - - - Change in beneficial interests in trusts - - - - 46,762 46,762 64,771 Loss on disposal of property and equipment - - - - - - (68,908) Telecasting, production and other income 201,168 - 201,168 - - 201,168 385,379 Subtotal 9,845,000 665,277 10,510,277 796,918 48,340 11,355,535 12,978,706 Net assets released from restriction 200,219 309,801 510,020 (510,020) - - - Total support and revenue 10,045,219 975,078 11,020,297 286,898 48,340 11,355,535 12,978,706 Expenses Program services 6,601,043 - 6,601,043 - - 6,601,043 6,611,909 Management and general 1,240,249 - 1,240,249 - - 1,240,249 1,488,025 Fundraising and membership 1,419,380 - 1,419,380 - - 1,419,380 1,346,072 Capital campaign - 8,958 8,958 - - 8,958 77,481 Subtotal expenses 9,260,672 8,958 9,269,630 - - 9,269,630 9,523,487 Change in net assets, before depreciation 784,547 966,120 1,750,667 286,898 48,340 2,085,905 3,455,219 Depreciation - 769,133 769,133 - - 769,133 802,416 Change in net assets, after depreciation $ 784,547 $ 196,987 981,534 286,898 48,340 1,316,772 2,652,803 Beginning net assets 16,151,185 3,983,032 8,013,581 28,147,798 25,494,995 Ending net assets $ 17,132,719 $ 4,269,930 $ 8,061,921 $ 29,464,570 $ 28,147,798 See notes to financial statements -3- VERMONT PUBLIC RADIO STATEMENT OF FUNCTIONAL EXPENSES For the year ended September 30, 2018 (With comparative totals for 2017) Fundraising Management and Program and Membership Capital 2018 2017 Services General Development Campaign Total Total Salaries and wages $ 2,716,275 $ 632,984 $ 683,476 $ - $ 4,032,735 $ 4,285,393 Payroll taxes 217,942 44,546 54,334 - 316,822 319,730 Pension expense 93,751 17,314 26,645 - 137,710 135,710 Employee benefits 536,959 67,684 121,547 - 726,190 719,345 Subtotal - Personnel 3,564,927 762,528 886,002 - 5,213,457 5,460,178 Program acquisitions and affiliations 1,062,665 - - - 1,062,665 1,061,744 Donated supplies and services 724,829 80,364 78,311 8,175 891,679 931,731 Occupancy 562,545 24,373 63,291 - 650,209 675,990 Professional fees 168,950 42,802 109,130 - 320,882 355,044 Office expenses 122,264 31,001 148,537 783 302,585 303,855 Information technology 223,870 29,374 37,243 - 290,487 258,537 Advertising 39,250 72,074 5,962 - 117,286 36,650 Travel 60,864 5,959 13,905 - 80,728 57,618 Insurance 24,936 51,507 2,568 - 79,011 73,858 Conferences and meetings 34,492 11,298 24,022 - 69,812 77,714 Accounting fees - 49,507 - - 49,507 46,497 Bad debt expense - - 48,079 - 48,079 18,709 Interest - 47,884 - - 47,884 112,719 Legal fees 11,451 13,763 - - 25,214 27,439 Miscellaneous - 17,815 2,330 - 20,145 25,204 Total expenses before depreciation 6,601,043 1,240,249 1,419,380 8,958 9,269,630 9,523,487 Depreciation 406,238 334,572 28,323 - 769,133 802,416 Total expenses $ 7,007,281 $ 1,574,821 $ 1,447,703 $ 8,958 $ 10,038,763 $ 10,325,903 See notes to financial statements -4- VERMONT PUBLIC RADIO STATEMENTS OF CASH FLOWS Years ended September 30, 2018 and 2017 2018 2017 Cash Flows from Operating Activities Change in net assets $ 1,316,772 $ 2,652,803 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation 769,133 802,416 Loss on disposal of property and equipment - 68,908 Gain on sale of translator licenses and efficiency rebate - (242,000) Contributions of beneficial interests in perpetual trusts (126,525) - Contributions restricted for Next Campaign and Journalism Fund (112,742) (2,074,061) Contributions restricted for endowment (1,578) - Non-operating capital campaign expenses 8,958 77,481 Non-operating investment loss (income), net 22,988 (1,137,142) Change in beneficial interests in trusts (46,762) (64,771) Non-operating
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