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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 30,2007 Under provisions of 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 9f the parish clerk of court. Release Date KDAO-FM, KLSA-FM, KBSA-FM. AND KLDN-FM RADIO STATIONS LOUISIANA STATE UNIVERSITY IN SHREVEPORT STATE OF LOUISIANA TABLE OF CONTENTS Statement Independent Auditor's Report 1 Statement of Financial Position A 2 Statement of Activities B 3-4 Statement of Cash Flows C 5 Notes to the Financial Statements 6-12 PARTNERS :->l'!-'\(.n; bn<\.\Kl>. jk., '.PA HEARD H.O. G-MIAGAV Ji>... <:i'\. -\ Gf:H.-M.i> W. i-ii:rx-;x>fJK. IK. MCELROY TVi 15. NlFl.srv n-'^ . ,\!''' JOH\ W. Di-;,\\. 0!'\, API; MARK D. KI,OKI-:IX;L. CPA &: VESTAL ROBERT L. Dr.\N. a-A LLP STTIJHK\ NX'. CHAHI. f.i'A December 11, 2007 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 30,2007 (with summarized total for 2006). 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, 2007, 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. HVJV 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, 2007 (With Comparative Totals for 2006) Statement A 2007 Operating Funds Temporarily 2006 ASSETS Unrestricted Restricted Total Total Current assets: Cash and cash equivalents 39,862 49,667 89,529 155,250 Property and equipment: Equipment (net of accumulated depreciation) 201.242 201.242 -_ Total assets 39,862 250,909 290.771 155.250 LIABILITIES AND NET ASSETS Current liabilities: Deferred revenue-unexpended grants 49,667 49,667 83,410 Long-term liabilities: Accrued sick and annual leave payable 53,080 53,080 32.729 Total liabilities 53,080 49,667 102,747 116,139 Net assets: Unrestricted (13,218) (13,218) 39,111 Restricted - 201.242 201.242 -_ Total net assets (13,218) 201,242 188,024 39,111 Total liabilities and net assets 39,862 250,909 290.771 155,250 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, 2007 (With Comparative Totals for 2006) Statement B 2007 Operating Funds Temporarily 2006 Unrestricted Restricted Total Total Revenues, gains and other support: Contributions 491,688 491,688 513,598 Underwriting 157,541 - 157,541 147,403 Corporation for Public Broadcasting Community service grant-general - 103,342 103,342 119,663 National program production and acquisition grant - 39,891 39,891 45,413 Internet grant - 5,394 5,394 9,606 Hurricane emergency grant - 5,016 5,016 24,984 Rural bonus grant - 33,653 33,653 31,971 RLAIF grant - - - 19,687 HD grants - 114,683 114,683 - Louisiana Public Broadcasting grant - 14,285 14,285 25,000 Department of Culture Recreation & _ Tourism grant - 75,000 75,000 Community Foundation grant - 87,550 87,550 30,368 Shreveport Regional Arts Council - - - 4 Other grants - 80,000 80,000 4,584 Lease agreements 5,899 - 5,899 6,773 Total revenues, gains and other support 655,128 558,814 1,213,942 979,054 Expenses: Program services- Programming and production 33,197 79,539 112,736 348,777 Broadcasting 281,913 151,905 433,818 214,969 Program information and promotion 16,435 - 16,435 7,735 Total program expenses 331,545 231,444 562,989 571,481 Supporting services- Management and general 266,547 82,324 348,871 333,043 Fund raising and membership development 71,259 3,556 74,815 44,775 Underwriting and grant solicitation 38,106 - 38,106 52,229 Total supporting expenses 375,912 85.880 461,792 430,047 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, 2007 (With Comparative Totals for 2006) Statement B 2007 Operating Funds Temporarily 2006 Unrestricted Restricted Total Total Total expenses 707,457 317,324 1,024,781 1,001.528 Change in net assets before capital additions (52,329) 241,490 189,161 (22,474) Capital additions - (40,248) (40,248) - Change in net assets after capital additions (52,329) 201,242 148,913 (22,474) Net assets, beginning of year, as restated 39.111 - 39,111 61.585 Net assets, end of year (13,218) 201,242 188,024 39,111 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, 2007 (With Comparative Totals for 2006) Statement C 2007 Temporarily Unrestricted Restricted 2006 Fund Fund Totals Total Cash flows from operating activities: Change in net assets (52,329) 201,242 148,913 (22,474) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities Depreciation expense 40,248 40,248 Increase in accrued sick and annual leave payable 20,351 20,351 5,312 Increase (decrease) in deferred revenue-unexpended grants (33.743) (33,743) 25,483 Net cash provided (used) by operating activities (31,978) 207,747 175,769 8,321 Cash flows from investing activities: Purchase of property and equipment (241.490) (241.490) Net increase (decrease) in cash and cash equivalents (31,978) (33,743) (65,721) 8,321 Cash and cash equivalents at beginning of year 71,840 83,410 155.250 146,929 Cash and cash equivalents at end of year 39,862 49,667 89.529 155.250 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, 2007 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 a political 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.
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