VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years ended September 30, 2016 and 2015 VERMONT PUBLIC RADIO FINANCIAL STATEMENTS Years ended September 30, 2016 and 2015 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 GDP GnrpprN D oNr-eN PrNrnervr CERTIFIED PUBLIC ACCOUNTANTS CONSULTANTS AND ADVISORS Devro C. GnrpprN CPA CVA RrcHen¡ D. DoureN CPA KrN.rsn'nI-v M. Pr¡¡ru,q.\a CPA CFP@ joux F. Dencv MBA CPA INDEPENDENT ATJDITOR'S REPORT To the Board of Directors of Verrnont Public Radio We have audited the accompanying ftrancial statements of Vermont Public Radio (a nonprofit organization), which comprise the statement of financial position as of Septembet 30,2016, 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 fìnancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the desigr, implementation, and maintenance of internal control relevant to the preparation and fat presentation of financial statements that ate 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 perforrn 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 procedwes 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 intemal 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 ofexpressing an opinion on the effectiveness of the entþ'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 30,2016, 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 2015 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated May 6,2016. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2015 is consistent, in all material respects, with the audited financial statements from which it has been derived. ,Uràp* 8.^t**, ß;'Í,Å**, /t's Registration number 553 February 24,2017 -1- "INNovern'n Sorurro|¡s & PnnsoNer, Snnr,rcn" 3 BALDWIN AVENUE SOUTH BURLINGTON, VERMONT O54O3 PHONE: AO2-446-2OO0 TOLL FREE: 1-A77-437-1 12O FAX: A02-846-2001 E-MAIL: [email protected] WEB: www.gdp-cpa.com VERMONT PUBLIC RADIO STATEMENTS OF FINANCIAL POSITION September 30, 2016 and 2015 2016 2015 ASSETS Current Assets Cash & cash equivalents $ 1,290,651 $ 1,615,626 Underwriting receivable, net 201,746 224,519 Other receivables 6,476 16,108 Pledges receivable, net 1,272,795 1,078,981 Prepaid expenses 36,545 48,746 Total Current Assets 2,808,213 2,983,980 Other Assets Property and equipment, net 12,207,091 6,362,535 Escrow 250,098 - Investments 10,020,218 9,642,859 FCC licenses 3,252,606 3,220,223 Pledges receivable, net, less current portion 1,441,937 1,987,517 Beneficial interests in trusts 780,779 716,709 Total Other Assets 27,952,729 21,929,843 Total Assets $ 30,760,942 $ 24,913,823 LIABILITIES AND NET ASSETS Current Liabilities Current portion of long-term debt $ 341,520 $ 13,879 Accounts payable 151,226 224,775 Accounts payable - construction 516,325 612,219 Accrued payroll 209,098 216,916 Deferred income 47,778 55,256 Total Current Liabilities 1,265,947 1,123,045 Long-term Liabilities Long-term debt, less current portion 4,000,000 - Total Long-term Liabilities 4,000,000 - Total Liabilities 5,265,947 1,123,045 Net Assets Unrestricted Undesignated 3,533,316 588,931 Unrestricted reserves 1,127,292 1,162,886 Net property and equipment and FCC licenses 11,118,177 9,568,879 Subtotal - unrestricted 15,778,785 11,320,696 Temporarily restricted 1,767,400 4,604,773 Permanently restricted 7,948,810 7,865,309 Total Net Assets 25,494,995 23,790,778 Total Liabilities and Net Assets $ 30,760,942 $ 24,913,823 See notes to financial statements -2- VERMONT PUBLIC RADIO STATEMENT OF ACTIVITIES For the year ended September 30, 2016 (With comparative totals for 2015) Total Temporarily Permanently 2016 2015 Operating Non-operating Unrestricted Restricted Restricted Total Total Support and Revenue Individual giving and membership $ 4,539,161 $ - $ 4,539,161 $ - $ - $ 4,539,161 $ 4,621,212 Bequests and contributions 23,328 335,832 359,160 1,745,019 19,431 2,123,610 3,611,916 Underwriting 2,046,279 - 2,046,279 - - 2,046,279 2,040,435 Donated goods and services 898,328 - 898,328 - - 898,328 838,882 Corporation for Public Broadcasting (CPB) Grants 768,364 - 768,364 - - 768,364 603,025 Investment income (loss) 250,338 80,903 331,241 391,914 - 723,155 (286,647) Strategic draw 168,247 (168,247) ----- Change in beneficial interests in trusts - - - - 64,070 64,070 (8,362) Loss on disposal of property and equipment - (253,361) (253,361) --(253,361) (207,766) Telecasting, production and other income 130,218 250,000 380,218 - - 380,218 101,508 Subtotal 8,824,263 245,127 9,069,390 2,136,933 83,501 11,289,824 11,314,203 Net assets released from restriction 103,925 4,870,381 4,974,306 (4,974,306) - - - Total support and revenue 8,928,188 5,115,508 14,043,696 (2,837,373) 83,501 11,289,824 11,314,203 Expenses Program services 6,287,283 - 6,287,283 - - 6,287,283 6,002,010 Management and general 1,353,472 - 1,353,472 - - 1,353,472 1,023,053 Fundraising and membership 1,210,040 - 1,210,040 - - 1,210,040 1,376,504 Capital campaign - 181,259 181,259 - - 181,259 236,316 Subtotal expenses 8,850,795 181,259 9,032,054 - - 9,032,054 8,637,883 Change in net assets, before depreciation 77,393 4,934,249 5,011,642 (2,837,373) 83,501 2,257,770 2,676,320 Depreciation - 553,553 553,553 - - 553,553 562,657 Change in net assets, after depreciation $ 77,393 $ 4,380,696 4,458,089 (2,837,373) 83,501 1,704,217 2,113,663 Beginning net assets 11,320,696 4,604,773 7,865,309 23,790,778 21,677,115 Ending net assets $ 15,778,785 $ 1,767,400 $ 7,948,810 $ 25,494,995 $ 23,790,778 See notes to financial statements -3- VERMONT PUBLIC RADIO STATEMENT OF FUNCTIONAL EXPENSES For the year ended September 30, 2016 (With comparative totals for 2015) Fundraising Management and Program and Membership Capital 2016 2015 Services General Development Campaign Total Total Salaries and wages $ 2,566,487 $ 733,959 $ 573,453 $ 34,140 $ 3,908,039 $ 3,508,439 Payroll taxes 207,371 47,236 46,585 1,993 303,185 287,074 Pension expense 79,814 22,454 20,001 - 122,269 115,909 Employee benefits 441,038 96,579 109,500 4,439 651,556 674,234 Subtotal - Personnel 3,294,710 900,228 749,539 40,572 4,985,049 4,585,656 Program acquisitions and affiliations 1,058,347 - - - 1,058,347 1,025,644 Donated supplies and services 750,289 73,804 74,235 - 898,328 838,882 Occupancy 536,204 21,095 64,147 - 621,446 618,516 Professional fees 173,834 66,177 113,398 101,994 455,403 521,990 Office expenses 121,672 48,752 159,287 36,557 366,268 446,920 Information technology 205,276 23,367 17,741 - 246,384 260,745 Conferences and meetings 21,318 77,532 4,292 - 103,142 80,010 Travel 64,142 5,498 5,229 2,136 77,005 66,142 Insurance 27,097 32,041 2,153 - 61,291 57,783 Accounting fees - 46,478 - - 46,478 39,568 Legal fees 3,740 39,333 - - 43,073 10,845 Advertising 30,654 2,669 3,396 - 36,719 38,777 Miscellaneous - 16,498 2,050 - 18,548 13,795 Bad debt expense - - 14,478 - 14,478 28,257 Interest - - 95 - 95 4,353 Total expenses before depreciation 6,287,283 1,353,472 1,210,040 181,259 9,032,054 8,637,883 Depreciation 459,600 61,691 32,262 - 553,553 562,657 Total expenses $ 6,746,883 $ 1,415,163 $ 1,242,302 $ 181,259 $ 9,585,607 $ 9,200,540 See notes to financial statements -4- VERMONT PUBLIC RADIO STATEMENTS OF CASH FLOWS Years ended September 30, 2016 and 2015 2016 2015 Cash Flows from Operating Activities Change in net assets $ 1,704,217 $ 2,113,663 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation 553,553 562,657 Loss on disposal of