Northern Public Radio WNIJ / WNIU-FM Public
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Northern Public Radio WNIJ / WNIU-FM Public Telecommunication Entities Operated by Northern Illinois University Audited Financial Statements June 30, 2017 and 2016 Northern Public Radio WNIJ / WNIU-FM Public Telecommunication Entities Operated by Northern Illinois University Table of Contents Page Independent Auditors’ Report 3-4 Management’s Discussion and Analysis 5-11 Financial Statements: Statement of Net Assets 12 Statement of Revenues, Expenses and Changes in Net Assets 13 Statement of Cash Flows 14 Notes to Financial Statements 15-18 2 3 4 Management’s Discussion and Analysis Fiscal Year 2017 Following are financial statements prepared by Northern Public Radio for fiscal year 2017. Included are the Statement of Net Assets, Statement of Revenues, Expenses and Changes in Net Assets, and Statement of Cash Flows. All statements are shown in a comparative format. The Statement of Net Assets provides a financial picture of Northern Public Radio as of June 30, 2017. The Statement of Revenues, Expenses and Changes in Net Assets provide information regarding the sources of revenues and categorize expenses functionally, as determined by the Corporation for Public Broadcasting, over the fiscal year ending June 30, 2017. Total Net Assets on this statement ties back to Total Net Assets on the Statement of Net Assets. The Statement of Cash Flows provides information on the activities Northern Public Radio derives revenue from or incurs expenses toward. The year-end cash balance on this statement ties back to cash on the Statement of Net Assets. Fiscal year 2017 was a year of constant review and prioritization for the stations. Overall revenue was down 5% while expenses were down almost 10% from the previous year. Grant revenue declined under the FY17 Illinois budget stalemate while the largest growth came in from Gifts. A positive outcome from an overall challenging year. Revenue FY16 FY17 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 NIU ‐ GR Grants Gifts Auxiliary In‐Kind Enterprises 5 REVENUE BY SOURCE 2017 NIU ‐ GR 19% In‐Kind 37% Grants 7% Auxiliary Enterprises 0% Gifts 37% REVENUE BY SOURCE 2016 NIU ‐ GR 17% In‐Kind Grants 43% 9% Gifts Auxiliary Enterprises 31% 0% 6 REVENUE TRENDS – 5 YEAR HISTORY 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2013 2014 2015 2016 2017 NIU ‐ GR Grants Gifts Auxiliary Enterprises In‐Kind $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 FY13 FY14 FY15 FY16 FY17 NIU‐GR Grants Gifts Auxiliary Enterprises 7 Overall expenses decreased, down 7% from the previous fiscal year. In most years, swings in the functional expense categories are mainly attributable to transitions in staffing. FY17 was no exception. The one expense category to end the year with an increase in expenses is Program Information & Promotion. Additional expense in personnel along with an increase to expenses associated with more targeted station engagement and awareness campaigns were the main source of this increase. The remaining expense categories all had a reduction in expense for the year and are best illustrated in the bar graph shown below. The trend line shows the relative consistency within the individual categories over the most recent five year period. Expense FY16 FY17 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Programming & Broadcasting Program Management & Fund Raising & Underwriting & Production Information & General Membership Grant Promotion Development Solicitation 8 EXPENSES BY FUNCTION 2017 (Excluding Depreciation) Underwriting & Grant Solicitation 9% Fund Raising & Membership Development 13% Programming & Production 46% Management & General 16% Program Information & Promotion 7% Broadcasting 9% EXPENSES BY FUNCTION 2016 (Excluding Depreciation) Underwriting & Grant Solicitation 11% Fund Raising & Membership Development 14% Programming & Production 45% Management & General 15% Program Information & Promotion Broadcasting 5% 10% 9 EXPENSE TRENDS – 5 YEAR HISTORY 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2013 2014 2015 2016 2017 Programming & Production Broadcasting Program Information & Promotion Management & General Fund Raising & Membership Development Underwriting & Grant Solicitation 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2013 2014 2015 2016 2017 Programming & Production Broadcasting Program Information & Promotion Management & General Fund Raising & Membership Development Underwriting & Grant Solicitation 10 The role and relevance of services provided by Northern Public Radio will continue to grow and respond to community needs. The expansion of local news, arts, cultural and information programming will require careful stewardship of fundraising initiatives while managing associated expenses. Fiscal year 2017 provided a stable foothold for pursuing these priorities. 11 WNIU AND WNIJ PUBLIC TELECOMMUNICATION ENTITIES OPERATED BY NORTHERN ILLINOIS UNIVERSITY STATEMENT OF NET ASSETS June 30, 2017 2016 ASSETS Current Assets Cash and Cash Equivalents $ 1,139,095 $ 804,928 Accounts Receivable 0 0 Grants Receivable 0 0 Prepaid Expenses 50,114 59,959 Total Current Assets 1,189,209 864,887 Noncurrent Assets Capital Assets, Net of Accumulated Depreciation 701,700 769,377 Total Noncurrent Assets 701,700 769,377 TOTAL ASSETS 1,890,909 1,634,264 LIABILITIES Current Liabilities Accounts Payable 12,759 23,178 Deferred Revenue 31,782 8,123 Total Current Liabilities 44,541 31,301 TOTAL LIABILITIES 44,541 31,301 NET ASSETS Invested in Capital Assets, Net of Related Debt 701,700 769,377 Restricted 50,000 0 Unrestricted 1,094,668 833,586 TOTAL NET ASSETS 1,846,368 1,602,963 TOTAL LIABILITIES AND NET ASSETS $ 1,890,909 $ 1,634,264 See accompanying notes to financial statements 12 WNIU and WNIJ PUBLIC TELECOMMUNICATIONS ENTITIES OPERATED BY NORTHERN ILLINOIS UNIVERSITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the Year Ended June 30, 2017 2016 REVENUES Operating Revenue Grants from Corporation for Public Broadcasting $ 199,697 $ 288,285 Grants - State 23,183 23,183 Grants - Private 0 0 Grants - Federal 0 0 Other Sources 2,325 5,050 Total Operating Revenues 225,205 316,518 EXPENSES Operating Expenses Program Services Programming and Production 1,398,623 1,506,755 Broadcasting 266,997 351,644 Program Information and Promotion 214,621 165,179 Support Services Management and General 471,787 510,967 Fund Raising and Membership Development 390,040 458,904 Underwriting and Grant Solicitation 284,195 376,704 Depreciation and Amortization 43,836 31,406 Total Operating Expenses 3,070,099 3,401,559 Net Operating Revenue/(Expense) (2,844,894) (3,085,041) NONOPERATING REVENUES (EXPENSES) General Revenue from Northern Illinois University 1,504,676 1,481,504 Facilities and Support Services from Northern Illinois University 337,973 574,435 Gifts 1,239,730 1,103,014 Contributed Services 5,101 20,495 Interest Income 0 0 Other Sources 819 2,528 Net Nonoperating Revenues 3,088,299 3,181,976 INCREASE (DECREASE) IN NET ASSETS 243,405 96,935 NET ASSETS, BEGINNING OF YEAR 1,602,963 1,506,028 NET ASSETS, END OF YEAR $ 1,846,368 $ 1,602,963 See accompanying notes to financial statements 13 WNIU AND WNIJ PUBLIC TELECOMMUNICATION ENTITIES OPERATED BY NORTHERN ILLINOIS UNIVERSITY STATEMENT OF CASH FLOWS For the Year Ended June 30, 2017 2016 Cash flows from operating activities: Change in net assets $243,405 $96,935 Adjustments to reconcile change in net assets to net cash used by operating activities: Equipment non-taggable 0 0 Depreciation expense 43,836 31,406 (Increase) decrease in assets: Accounts receivable 0 0 Grants receivable 0 9,520 Prepaid expenses 9,845 (54,835) Increase (decrease) in liabilities: Accounts payable (10,419) (47,571) Deferred revenue 23,659 (63,729) Net cash provided by operating activities 310,326 (28,274) Cash flows from investing activities: Purchase of property and equipment 23,841 13,470 Capital improvements 0 0 Net cash used by investing activities 23,841 13,470 Cash flows from financing activities: Payments on long-term debt 0 0 Net cash used by financing activities 0 0 Net increase in cash and cash equivalents 334,167 (14,804) Cash and cash equivalents at beginning of year 804,928 819,732 Cash and cash equivalents at end of year $1,139,095 $804,928 14 Northern Public Radio (includes WNIU and WNIJ) PUBLIC TELECOMMUNICATION ENTITIES OPERATED BY NORTHERN ILLINOIS UNIVERSITY Note 1: Summary of Significant Accounting Policies The significant accounting policies followed by Northern Public Radio are presented below to assist the reader in evaluating the financial statements and accompanying notes. Financial Reporting Entity Organization WNIU and WNIJ are public radio stations owned and operated by Northern Illinois University. Broadcast facilities are located in DeKalb, Illinois, with a satellite branch in Rockford, Illinois. The transmitting tower is located in Lindenwood, Illinois. WNIU was established in 1954. WNIJ was added in 1991. Repeater stations WNIQ (Sterling), WNIW (LaSalle), and WNIE (Freeport) began broadcasting during the fiscal year ended 6/30/99. Basis of Accounting Effective for the year ending June 30, 2003, Northern Pubic Radio adopted GASB No. 35, Basic Financial Statements – and Management’s Discussion and Analysis – for Public Colleges and Universities, which established new reporting requirements for public colleges and universities. Fund Accounting The accounts of Northern Public Radio are maintained in accordance with the principles of fund accounting. Separate accounts are maintained for each fund. However, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Restricted Funds These funds are restricted by grantors or other outside agencies as to the specific purpose for which they may be used. Revenues are reported only to the extent of expenses incurred for current operating purposes. Expenses are recorded on the accrual basis.