MONTANAPBS 2013 ANNUAL REPORT Valued. Trusted. Essential. Management Letter Dear Members and Friends of MontanaPBS: Through MontanaPBS, Montana’s universities combine forces to offer a valued educational service to our state. From the trusted building blocks of early childhood programs to inspiring and informative offerings for lifelong learners, MontanaPBS provides essential resources and partnerships for learning. While the Montana University System is the home for this service, a diverse group of sources provides support, including individual donors who believe that television can “Be More.” Learn MontanaPBS LearningMedia, an ambitious new offering for teachers and students, is now available to every Montana educator. This innovative service is designed to support education at every age and level. As we expand the resources available on this exciting new platform, we’ll be drawing on decades of experience and great content from our own programs, as well as those of our partners. In the past year, one partner, the PBS Newshour, engaged budding journalists at Missoula’s Sentinel High School. The students learned how to develop news pieces with support from a MontanaPBS professional, earning national recognition for their work. Explore MontanaPBS is proud to be the channel Montanans turn to for compelling stories about our shared national experience. Cable networks are abandoning genres like history, biography, arts and music in favor of reality programming. We remain committed to telling stories that matter, with iconic programs that earn repeated critical acclaim —and an impressive three regional Emmy awards in 2013. Discover Indian Relay, a new feature documentary, highlighted an incredible year of great Montana programming. Additional episodes of iconic local series like Backroads of Montana and Montana Ag Live brought our state’s rich lifestyle and culture to the screen. MontanaPBS also addressed important and pressing social, political and news events through collaborative programming that examined Montana’s gun culture and climate change. We tackled these topics the Montana way—with thoughtful dialogue and respect for differing opinions, rather than sensationalism and partisan conflict. Inspire At MontanaPBS, we believe that arts and culture are part of a complete education and a rich and fulfilling life. MontanaPBS viewers expect the best, and we provide wonderful cultural and artistic treasures they can’t see anywhere else. Whether it’s great drama like Downton Abbey or wonderful music on Great Performances, MontanaPBS provides the best seat in the house. We were particularly proud when our music series, 11th & Grant with Eric Funk, received an Emmy award for the best Arts & Entertainment Program in the Northwest. Even as we look back on the successes of the past year, we look forward to a long list of new programs and enhanced services for Montanans in the year ahead. Thanks to support from individuals, businesses, foundations, organizations and the Montana University System, MontanaPBS continues to expand its reach and provide the valued, trusted and essential programs that contribute to the great quality of life we all enjoy in Montana. Eric Hyyppa William Marcus General Manager, KUSM TV General Manager, KUFM TV Bozeman Missoula Financials MontanaPBS Statement of Activities FY 2013 Fiscal Year (FY) 2013 Revenue by Source OPERATING REVENUES Grants from CPB ...............................................................................$ 1,026,947 Federal: $1.6M Grants from federal agencies ..........................................................................0 Grants from state agencies ..................................................................190,000 Grants from public broadcasting entities ............................................ 18,103 Local: $2M State and local grants and contracts ………………………………………………11,136 Nongovernmental grants and contracts .............................................37,830 Support from the Montana University System Appropriations for operations ....................................................... 1,147,289 Donated and indirect .........................................................................913,963 University: $2.3M Contributions from Friends used for operations .......................... 1,153,953 Sales and services ................................................................................... 60,575 Production underwriting ....................................................................... 127,796 Program underwriting .............................................................................. 89,021 Other contributions..................................................................................190,318 Other operating revenue .......................................................................291,450 Total: $5.9M TOTAL OPERATING REVENUES .............................................. $5,258,381 OPERATING EXPENSES FY 2013 Broadcasting .........................................................................................2,160,278 Expense by Function Programming and production ......................................................... 2,189,865 Program information and promotion ................................................. 167,763 Management and general ..................................................................... 721,007 Fundraising and membership development .................................... 502,010 Solicitation and underwriting ................................................................44,732 TOTAL OPERATING EXPENSES ..............................................$5,785,655 Programming & Production: $2.4M OPERATING LOSS ..................................................................................... (527,274) NONOPERATING REVENUES Federal grants and contracts for capital projects ..........................583,639 Contributions from friends for capital ..................................................74,061 Other capital grants and gifts ............................................................................– Broadcasting: $2.2M Contributions - other ...........................................................................................– Investment income, net .............................................................................2,266 TOTAL NONOPERATING REVENUES .......................................... 659,966 OTHER EXPENSE—INTEREST EXPENSE .................................................(407) Management: ADDITIONS TO PERMANENT ENDOWMENTS ....................................... 7,776 $0.7M CHANGE IN NET POSITIONS....................................140,061 NET POSITION - BEGINNING OF YEAR ........3,400,988 Development: $0.5M NET POSITION - END OF YEAR .....................$3,541,049 Total: $5.8M An electronic copy of full financial data is available online at montanapbs.org/AnnualReports montanapbs.org 3 Learn in Montana’s Largest Classroom PBSKIDS.org is the most watched kids video site on the Internet. Curious George Courtesy of ® & © 2012 Universal Studios and/or HMH Daniel Tiger’s Neighborhood Peg + Cat 4 montanapbs.org MontanaPBS LearningMedia MontanaPBS is expanding MontanaPBS LearningMedia. One of our partners, the Montana Historical Society (MHS), wrote the current Montana history book Stories from the Land, which is used in every district in the state. MHS also commissioned a series of videos, Montana Mosaic, as a supplement to the text. With help from student interns, MontanaPBS has developed more than 35 resources for Learning Media that feature short, classroom-ready videos with materials from the Stories from the Land text, standards, activities, links to online resources and many other materials that the classroom teacher can use. We now have assets that cover homesteading, industry, government and Indian history in Montana, as well as developing resources for other partners and within our own documentary library. MontanaPBS is fortunate to have a Montana teacher as part of the PBS Teacher Core. Lisa Lykins of Glacier High School attended specialized training in Washington, D.C., for LearningMedia. As a media specialist in her school, she distributes Learning Media resources to her teachers based on their needs. With special collections in Middle School Literacy or STEM (science, technology, engineering and math) related lessons, for example, she engages teachers individually. Partnerships with teachers and school districts make our service so much more effective, so we continue to foster these relationships. And these partners have been our most vocal advocates—teachers who use LearningMedia and understand the potential for classrooms across the state conduct professional development for other teachers, like Lisa did when she conducted LearningMedia workshops at the annual MEA and Montana Library conferences this year. The basic Learning Media service is free for all users, but there is a custom service that has more extensive resources, specialized early childhood professional development, and analytics that might be more effective for some schools. We do not know, yet, whether or not theses extras are valuable to schools. Therefore, we are developing a cadre of pilot schools to use these custom service so we can evaluate effectiveness and cost efficacy. Stay tuned for more information in 2014. To learn more about MontanaPBS LearningMedia please visit www.montana.pbslearningmedia.org Other MontanaPBS Educational Projects A new effort for MontanaPBS is Student Reporting Labs from