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FY20 PRE Audited Financial Statement

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FY20 PRE Audited Financial Statement Public Radio East (WTEB-FM) and Affiliate (A Component Unit of Craven Community College) New Bern, North Carolina Financial Statements and Independent Auditor's Report Years Ended June 30, 2020 and 2019 Public Radio East (WTEB-FM) and Affiliate (A Component Unit of Craven Community College) Table of Contents June 30, 2020 and 2019 Page Independent Auditor's Report ............................................................................................................................ 1 Management's Discussion and Analysis ............................................................................................................. 3 Basic Financial Statements A-1 Statements of Net Position ................................................................................................................ 8 A-2 Statements of Revenues, Expenses, and Changes in Net Position .................................................... 9 A-3 Statements of Cash Flows ................................................................................................................ 10 Notes to the Financial Statements .................................................................................................................... 12 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................... 21 S. Preston Douglas & Associates, LLP CERTIFIED PUBLIC ACCOUNTANTS MEMBERS American Institute of CPAs N. C. Association of CPAs Independent Auditor's Report To the Management of Public Radio East (WTEB-FM) and Affiliate Board of Trustees of Craven Community College New Bern, North Carolina We have audited the accompanying combined financial statements of Public Radio East (WTEB-FM) and its affiliate, Public Radio East Foundation, a component unit of Craven Community College, as of and for the years ended June 30, 2020 and 2019, and the related notes to the financial statements, which collectively comprise (“Public Radio East”)’s basic financial statements as listed in the table of contents. 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 and the standards applicable to financial audits contained in 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 performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to Public Radio East’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 involves 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 of our audit opinion. Post Office Drawer 2339 907 N. Walnut Street Lumberton, NC 28359 Phone (910) 739-7523 Fax (910) 739-5477 Post Office Drawer 937 1103 West Broad Street Elizabethtown, NC 28337 Phone (910) 862-3768 Fax (910) 862-6681 Post Office Drawer 860 122 Memory Plaza Whiteville, NC 28472 Phone (910) 642-6642 Fax (910) 642-2119 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the net position of Public Radio East, as of June 30, 2020 and 2019, and the respective changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter - Indirect Administrative Support As described in Note 6, Public Radio East no longer reports in-kind revenues and expenses related to Indirect Administrative Support received by the College because Government Accounting Standards does not provide criteria for recognizing Indirect Administrative Support. The reporting change did not impact net position. The 2019 financial information presented in these financial statements have been updated to reflect this change. Our opinion is not modified with respect to this matter. Other Matters - Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 25, 2020 on our consideration of Public Radio East’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Public Radio East’s internal control over financial reporting and compliance. Lumberton, North Carolina November 25, 2020 2 Management’s Discussion and Analysis Public Radio East (WTEB-FM) and Affiliate (A Component Unit of Craven Community College) Management’s Discussion and Analysis June 30, 2020 The information in this section is intended to provide a general overview of Public Radio East (WTEB-FM) and its affiliate, Public Radio East Foundation (Foundation), a component unit of Craven Community College’s financial statements and is based upon the information contained in the financial statements accompanying this discussion and analysis. The entity is referred to as (“Public Radio East”) or (“PRE”) for the purposes of these financial statements. The user is encouraged to reference the appropriate section of the financial statements for the supporting detailed information. Overview of the Financial Statements Public Radio East’s discussion and analysis (MD&A) provides an overview of Public Radio East’s financial performance during the fiscal years ended June 30, 2020 and 2019, based on currently known facts and conditions; and is designed to assist readers in understanding the accompanying financial statements. The MD&A, financial statements and notes are the responsibility of Public Radio East’s management. Since the MD&A is designed to focus on current activities, resulting change, and currently known facts, it should be read in conjunction with Public Radio East’s financial statements and the related footnote disclosures. Basic Financial Statements The basic financial statements present information for Public Radio East as a whole, in a format designed to make the statements easier for the reader to understand. The statements in this section include the Statements of Net Position; the Statements of Revenues, Expenses, and Changes in Net Position; and the Statements of Cash Flows. The Statements of Net Position presents information on all of Public Radio East’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases
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