KXCV-FM, MARYVILLE/ KRNW-FM, CHILLICOTHE - A PUBLIC TELECOMMUNICATIONS ENTITY OPERATED BY NORTHWEST MISSOURI STATE UNIVERSITY FINANCIAL STATEMENTS JUNE 30, 2020 AND 2019 Contents Page Independent Auditors’ Report ...................................................... 1 - 2 Management’s Discussion And Analysis .................................... 3 - 8 Financial Statements Combined Statement Of Net Position ..................................................9 Combined Statement Of Revenues, Expenses And Changes In Net Position .........................................................10 Combined Statement Of Cash Flows ......................................... 11 - 12 Notes To Combined Financial Statements ................................ 13 - 17 Independent Auditors’ Report Board of Regents Northwest Missouri State University Maryville, Missouri Report On The Combined Financial Statements We have audited the accompanying combined financial statements of KXCV-FM, Maryville/KRNW-FM - Chillicothe, a Public Telecommunications Entity Operated by Northwest Missouri State University of Maryville (KXCV-FM/KRNW-FM) as of and for the years ended June 30, 2020 and 2019, and the related notes to the combined financial statements, which collectively comprise the KXCV-FM/KRNW-FM’s basic combined financial statements as listed in the table of contents. Management’s Responsibility For The Combined Financial Statements Management is responsible for the preparation and fair presentation of these combined 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 combined financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits 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 combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the combined 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 combined 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 combined financial statements. Board of Regents Northwest Missouri State University 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 combined financial statements referred to above present fairly, in all material respects, the financial position of KXCV-FM Maryville/KRNW-FM, Chillicothe, as of June 30, 2020 and 2019, and the changes in its financial position and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 3 through 8 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, which 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 combined 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. January 7, 2021 Page 2 KXCV-FM, MARYVILLE/KRNW-FM, CHILLICOTHE - A PUBLIC TELECOMMUNICATIONS ENTITY OPERATED BY NORTHWEST MISSOURI STATE UNIVERSITY MANAGEMENT’S DISCUSSION AND ANALYSIS For The Years Ended June 30, 2020 And 2019 Introduction The following discussion provides an overview of the financial position of KXCV- FM, Maryville/KRNW-FM, Chillicothe (the Station) for the years ended June 30, 2020 and 2019 and includes an analysis of the Station’s financial statements. These financial statements are prepared in accordance with Governmental Accounting Standards Board (GASB) pronouncements. This discussion and analysis has been prepared by management along with the financial statements and related footnote disclosures and should be read in conjunction with and is qualified in its entirety by the financial statements and footnotes. Overview The Station is operated by Northwest Missouri State University (University), the licensee, and provides public radio service to listeners. KXCV-FM facilities are located in the radio complex on the top level of Wells Hall on the main campus of the University in Maryville, Missouri. Since 1971, KXCV-FM has provided in- depth news and information, classical music, and jazz programming. Facilities include on-air production studios, a news center, offices, reception area, a music library, and a broadcast museum. Its tower/transmitter site is located on University property. KXCV-FM broadcasts at 100,000 watts. In 1993, KRNW- FM, a 38,000 watt FM radio station went on the air to enable programming to extend across most of the northern quarter of the state of Missouri. All programming for KRNW-FM emanates from KXCV-FM. The facilities of KRNW- FM include a tower/transmitter site located in Chillicothe, Missouri. Financial Highlights This discussion and analysis of the Station’s financial statements provides an overview of the Station’s financial performance during the years ended June 30, 2020 and 2019. Since the Management’s Discussion and Analysis is designed to focus on current activities, resulting change and current known facts, it should be read in conjunction with the Station’s basic financial statements and the footnotes. A comparative analysis to financial performance for the year ended June 30, 2018 is also presented in the analysis. Page 3 KXCV-FM, MARYVILLE/KRNW-FM, CHILLICOTHE - A PUBLIC TELECOMUNICATIONS ENTITY OPERATED BY NORTHWEST MISSOURI STATE UNIVERSITY Management’s Discussion And Analysis (Continued) Statements Of Net Position The Statements of Net Position present the financial position of the Station at the end of the fiscal year and include all assets and liabilities of the Station. The net position presents the current financial condition of the Station. Assets and liabilities are generally measured using current values, with certain exceptions, such as, capital assets, which are stated at cost less accumulated depreciation. A summary of the Station’s assets, liabilities and net position at June 30, 2020, 2019, and 2018, is as follows: Net Position As Of June 30 (In Thousands) 2020 2019 2018 Current Assets Cash and cash equivalents $ 635.3 $ 544.0 $ 630.4 Investments 465.0 415.0 415.0 Accounts receivable 0.6 0.3 0.5 Total Current Assets 1,100.9 959.3 1,045.9 Noncurrent Assets Capital assets, net 520.6 588.4 567.9 Total Assets 1,621.5 1,547.7 1,613.8 Current Liabilities Accounts payable 7.3 3.9 39.1 Salaries and taxes payable 4.4 6.2 5.6 Compensated absences payable 29.4 29.9 25.0 Total Current Liabilities 41.1 40.0 69.7 Net Position Net investment in capital assets 520.6 588.4 567.9 Restricted expendable for: Instructional department uses 501.1 455.4 511.2 Grants and other — 96.1 107.3 Unrestricted 558.7 367.8 357.7 Total Net Position$ 1,580.4 $ 1,507.7 $ 1,544.1 Page 4 KXCV-FM, MARYVILLE/KRNW-FM, CHILLICOTHE - A PUBLIC TELECOMUNICATIONS ENTITY OPERATED BY NORTHWEST MISSOURI STATE UNIVERSITY Management’s Discussion And Analysis (Continued) Comparative Analysis Of Fiscal Years 2020 And 2019: Total assets increased 4.77% from $1,547.7 thousand to $1,621.5 thousand. This is primarily due to an increase in cash and cash equivalents due to Emergency Stabilization Funds received from the Corporation for Public Broadcasting as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), partly offset by decrease in capital assets due to annual depreciation expense in excess of funds invested in capital assets. At June 30, 2020, the Station’s net assets were $1,580.4 thousand. These are comprised of Unrestricted - $558.7