Financial Statements September 30, 2019 and 2018 Prairie Public Broadcasting, Inc. eidebailly.com Prairie Public Broadcasting, Inc. Table of Contents September 30, 2019 and 2018 Independent Auditor’s Report ............................................................................................................................. 1 Financial Statements Statements of Financial Position – Assets ........................................................................................................ 3 Statements of Financial Position – Liabilities and Net Assets ............................................................................ 4 Statement of Activities, Year Ended September 30, 2019 ................................................................................. 5 Statement of Activities, Year Ended September 30, 2018 ................................................................................. 6 Statement of Functional Expenses, Year Ended September 30, 2019 ............................................................... 7 Statement of Functional Expenses, Year Ended September 30, 2018 ............................................................... 8 Statements of Cash Flows ................................................................................................................................ 9 Notes to Financial Statements ........................................................................................................................10 Supplementary Information Supporting Schedule to the Statement of Activities, Year Ended September 30, 2019 .....................................27 Schedule of Support and Revenue, Year Ended September 30, 2019 ...............................................................28 Schedule of Programming and Production Expenses - Television, Year Ended September 30, 2019 .................31 Schedule of Engineering Expenses - Television, Year Ended September 30, 2019 ............................................32 Schedule of Programming and Production Expenses - Radio, Year Ended September 30, 2019 .......................33 Schedule of Engineering Expenses - Radio, Year Ended September 30, 2019 ...................................................34 Schedule of General and Administrative Expenses - Corporate, Year Ended September 30, 2019 ....................35 Schedule of Development Expenses - Television, Year Ended September 30, 2019 .........................................36 Schedule of Development Expenses - Radio, Year Ended September 30, 2019 ................................................37 Schedule of Gaming Income and Direct Expenses, Year Ended September 30, 2019........................................38 Independent Auditor’s Report The Board of Directors Prairie Public Broadcasting, Inc. Fargo, North Dakota Report on the Financial Statements We have audited the accompanying financial statements of Prairie Public Broadcasting, Inc. (Organization), which comprise the statements of financial position as of September 30, 2019 and 2018, and the related statements of activities, functional expenses, and cash flows for the years 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 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 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 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 procedures 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 internal 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 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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. What inspires you, inspires us. | eidebailly.com 1 4310 17th Ave. S. | P.O. Box 2545 | Fargo, ND 58108-2545 | T 701.239.8500 | F 701.239.8600 | EOE Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Prairie Public Broadcasting, Inc. as of September 30, 2019 and 2018, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information (actual column) on pages 27 through 38 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information (actual column) on pages 27 through 38 is fairly stated in all material respects in relation to the financial statements as a whole. The supplementary information (budget column) on pages 27 through 38 has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Fargo, North Dakota January 15, 2020 2 Prairie Public Broadcasting, Inc. Statements of Financial Position – Assets September 30, 2019 and 2018 2019 2018 Assets Current Assets Cash and cash equivalents $ 2,067,193 $ 2,241,458 Grants receivable 437,337 394,059 Contributions receivable, net of allowance for uncollectible accounts of $13,000 in 2019 and $12,200 in 2018 432,075 402,434 In-kind contributions receivable 37,500 - Trade accounts receivable, net of allowance for uncollectible accounts of $18,800 in 2019 and $19,500 in 2018 294,999 254,574 Inventory 14,293 16,050 Prepaid expenses 504,184 506,379 Total current assets 3,787,581 3,814,954 Property and Equipment, Net 10,398,463 10,321,590 Other Assets Board directed endowment 4,280,237 4,009,843 Investments 3,113,583 3,035,953 In-kind contributions receivable, net of present value discount of $116,000 in 2019 and $0 in 2018 341,756 - Patronage refunds receivable 631,275 603,914 Radio licenses 220,000 - Total other assets 8,586,851 7,649,710 Total assets $ 22,772,895 $ 21,786,254 3 See Notes to Financial Statements Prairie Public Broadcasting, Inc. Statements of Financial Position – Liabilities and Net Assets September 30, 2019 and 2018 2019 2018 Liabilities and Net Assets Current Liabilities Current portion of deferred contract revenues $ 6,750 $ 6,750 Accounts payable 152,161 487,204 Accrued liabilities 696,341 640,290 Deferred grants revenues 660,894 630,055 Total current liabilities 1,516,146 1,764,299 Deferred Contract Revenues, Net of Current Portion 8,438 15,188 Total liabilities 1,524,584 1,779,487 Net Assets Without donor restrictions General reserves 8,831,245 7,971,892 Board designated 4,280,237 4,009,843 Property and equipment 7,842,133 7,750,336 Total without donor restrictions 20,953,615 19,732,071 With donor restrictions 294,696 274,696 Total net assets 21,248,311 20,006,767 Total liabilities and net assets $ 22,772,895 $ 21,786,254 4 See Notes to Financial Statements Prairie Public Broadcasting, Inc. Statement of Activities Year Ended September 30, 2019 Without Donor With Donor Restrictions Restrictions Total Public Support and Revenue Members $ 2,053,125 $ - $ 2,053,125 Corporation for Public Broadcasting 1,514,234 - 1,514,234 Grants 443,834 950,042 1,393,876 State support 833,333 344,898 1,178,231 Underwriting 334,058 133,216 467,274 Fees 34,401 - 34,401 Gaming (net of prize payouts and cost of sales) 3,331,619 - 3,331,619 Other 639,723 20,000 659,723 Rents 872,431 - 872,431 Net investment return 242,795 8,370 251,165 Net assets released