corporation for public broadcasting - cpb...oct 09, 2019 · financial reports • improve ability...

Live Webinar TrainingOctober 9, 2019

Corporation for Public Broadcasting

Introduction to Financial Reporting

PresentersKate Arno, Director of TV CSG Policy & ReviewBiniam Debebe, Senior Financial Review SpecialistKen Goulet, Senior Financial Review Specialist

Introductions

2

For radio and TV grantees:• Understand purpose and importance of

accurate reporting• Be ready to prepare your first annual

financial reports• Improve ability to file a flawless report• Know where to find help• Meet annual training requirement

Training Objectives

3

• Overview of Financial Reporting to CPB

• Non-Federal Financial Support (NFFS)

• Preparing the Annual Financial Reports

• AFR Walk Through

Agenda

4

Experiencing audio issues during webinar?• Ensure your computer has not gone into “sleep” mode.

• If audio problem continues: – Call-in toll-free number

1-877-668-4493– Call-in toll number

1-650-479-3208– Access code: 648 857 246

Audio Recommendations

5

• Press Q&A button in the top right of screen• At bottom right, choose Q&A• Under “Ask”, select “Host”• Type question in field at bottom of screen• Hit send

Submitting Questions

6

• Overview of Financial Reporting to CPB– Financial reporting and compliance– Important documents– Where to find resources



• AFR Walkthrough

Agenda

7

Financial Reporting

Why report?• Communications Act requirement• The non-federal financial support (NFFS)

you report is used to calculate your CSG.• Required before CPB releases your second

CSG payment.

Financial Reporting

What financial reports?• AFR: Annual Financial Report or• FSR: Financial Summary Report• AFS: audited financial statement

or unaudited financial statement, if allowed

10

CSG LevelTotal

RevenueFinancial

Form

Financial StatementsRequired

A & B < $300,000 FSR Audited or Unaudited

A & B ≥ $300,000 FSR Audited

C & D N/A AFR Audited

AFR or FSR & AFS?• All TV grantees are required to file AFR and submit AFS• Radio grantees:

Where do you report?• isis.cpb.org

Integrated Station Information System

11

When?• Due 5 months after the end of your fiscal year

• Two extensions available:

– 1st extension is for 45 days– 2nd extension is for 30 days

• Penalties apply for late filing.

AFR/FSR Filing Deadlines

12

Financial Reporting Guidelines– Reporting requirements and independent

accountant attestation, NFFS definition, line item instructions, updated annually

Principles of Accounting – Guidance on CPB’s requirement to submit audited

financial statements

13

Important Documents

Discrete Accounting– Communications Act Requirement – Included in the terms and conditions of your grant

award for all CSG revenues and expenditures.

Discrete Accounting DefinedGrantees must use unique accounting codes for CSG revenues and expenses. Specifically, Grantee’s accounting systems must be able to generate a report showing CSG revenues and how they were expended, using unique accounting codes. These accounts may not include non-CSG revenues and expenses. 14

Important Documents

cpb.org

Resource documentsOnline webinars

Help Desk

Email: [email protected]: (866) 635-4747Fax: (202) 879-9700

CSG Resources

15

Where to Find ResourcesWebsite cpb.org

16


17


18


19


20

Q & A

Test Your Knowledge

Questions & Answers

21

Question 1

22

Which of the following are reasons why financial reporting to CPB is required?

A. It is a Communications Act requirement. B. The NFFS you report is used to calculate your CSG.C. It is required for CPB to release your 2nd CSG

payment.D. All of the above

Question 1 - Answer

23

Which of the following are reasons why financial reporting to CPB is required?

A. It is a Communications Act requirement. B. The NFFS you report is used to calculate your CSG.C. It is required for CPB to release your 2nd CSG

payment.D. All of the above

Question 2

24

Which of the following is correct regarding the AFR/FSRfiling due date?

A. The AFR/FSR is due by May 31. B. Penalties do not apply.C. 1st extension requires justification & approval by CPB.D. 2nd extension requires justification & approval by CPB.

Question 2 - Answer

25

Which of the following is correct regarding the AFR/FSRfiling due date?

A. The AFR/FSR is due by May 31. B. Penalties do not apply.C. 1st extension requires justification & approval by CPB.D. 2nd extension requires justification & approval by CPB.

Question 3

26

A radio station with CSG level “A” has total revenue of $500K and NFFS of $275K. What financial forms must the station submit to CPB?

A. AFR and AFS since the station is CSG level “A”.B. FSR and AFS since total revenue is ≥ $300K.C. FSR and no AFS since NFFS is < $300K.D. FSR and unaudited financial statements since

NFFS is <$300K.

Question 3 - Answer

27

A radio station with CSG level “A” has total revenue of $500K and NFFS of $275K. What financial forms must the station submit to CPB?

A. AFR and AFS since the station is CSG level “A”.B. FSR and AFS since total revenue is ≥ $300K.C. FSR and no AFS since NFFS is < $300K.D. FSR and unaudited financial statements since

NFFS is <$300K.



2828


• Non-Federal Financial Support (NFFS)– Definition and purpose of NFFS– NFFS criteria



Agenda

29

NFFS is the total of direct revenue and the fair value of property and services received as either a contribution or apayment, which meets specific criteria as to: recipient, form, source, and purpose.

What is NFFS?

30

• Determine Grantee’s CSG program eligibility

• Factor in calculating incentive portion of CSG

• Part of the legal justification for CPB’s federal appropriation

Purpose of NFFS

31

NFFS Criteria Summary

32

Contributions Payments

Recipient A public broadcasting entity on behalf of a public broadcasting station

Form Gifts, grants, bequests, donations, appropriations

An appropriation or contract payment in exchange for specific materials or services related to public broadcasting (see Purposebelow)

SourceAny source except the Federal Government or a Public Broadcasting Entity

Must be a state or local government or agency thereof, or an educational institution

Purpose

Must be for the construction or operation of a noncommercial, educational public broadcast station or for the production, acquisition, distribution, or dissemination of educational television or radio programs and related activities

Must be for services or materials with respect to the provision of educational or instructional television or radio programs

33

NFFS: The Source Criterion

Eligible

State & Local Government Agencies

Not for profits & Foundations

For Profit Entities

Individuals

Public & Private Colleges & Universities

Ineligible

Federal Government

Public BroadcastingEntities

Contributions

NFFS: The Source Criterion

34

Eligible

State & Local Government Agencies

Educational Institutions

Ineligible

Federal Government

Public BroadcastingEntities

For Profit Entities

Individuals

Not for profits & foundations that are not educational inst

Payments

NFFS Criteria Summary

35

Contributions Payments

Recipient A public broadcasting entity on behalf of a public broadcasting station

Form Gifts, grants, bequests, donations, appropriations

An appropriation or contract payment in exchange for specific materials or services related to public broadcasting (see Purposebelow)

SourceAny source except the Federal Government or a Public Broadcasting Entity

Must be a state or local government or agency thereof, or an educational institution

Purpose

Must be for the construction or operation of a noncommercial, educational public broadcast station or for the production, acquisition, distribution, or dissemination of educational television or radio programs and related activities

Must be for services or materials with respect to the provision of educational or instructional television or radio programs

Q & A

Test Your Knowledge

Questions & Answers

36

Question 4

37

Which of the following statements are true?

A. All revenues in a station’s AFS qualify as NFFS.B. The four NFFS criteria are Recipient, Form, Source

and Purpose.C. Revenue needs to meet only one NFFS criteria to

be eligible as NFFS.D. CPB can add additional restrictions to NFFS.

Question 4 - Answer

38

Which of the following statements are true?

A. All revenues in a station’s AFS qualify as NFFS.B. The four NFFS criteria are Recipient, Form, Source

and Purpose.C. Revenue needs to meet only one NFFS criteria to

be eligible as NFFS.D. CPB can add additional restrictions to NFFS.

Question 5

39

A TV station received grants from USDOE, a state gov’t agency, for-profit entity, foundation, and PBE for the production and distribution of educational television. Which statements are correct?

A. All contributions for the purpose of production and distribution of educational television are NFFS eligible.

B. Contributions from the USDOE, state gov’t agency and public broadcasting entity are NFFS ineligible.

C. Contributions from the foundation, state gov’t agency and for-profit entity are NFFS eligible.

Question 5 - Answer

40

A TV station received grants from USDOE, a state gov’t agency, for-profit entity, foundation, and PBE for the production and distribution of educational television. Which statements are correct?

A. All contributions for the purpose of production and distribution of educational television are NFFS eligible.

B. Contributions from the USDOE, state gov’t agency and public broadcasting entity are NFFS ineligible.

C. Contributions from the foundation, state gov’t agency and for-profit entity are NFFS eligible.

Question 6

41

A Radio station received payments for rental of excess tower capacity to the local government and to a private business. Which statements are correct?

A. Payment from the local government is NFFS eligible and private business is NFFS ineligible.

B. Payments from both sources are NFFS ineligible.C. Payments from both sources are NFFS eligible.

Question 6 - Answer

42

A Radio station received payments for rental of excess tower capacity to the local government and to a private business. Which statements are correct?

A. Payment from the local government is NFFS eligible and private business is NFFS ineligible.

B. Payments from both sources are NFFS ineligible.

C. Payments from both sources are NFFS eligible.

Question 7

43

A TV station received revenue from licensee (University) for the following. Which of the following are allowable as NFFS?

A. Production of video streams and related archive videos of commencement, convocation and other similar events.

B. Production of all athletic events on campus that run via live streaming.

C. Appropriation from licensee for station operations.D. All of the above

Question 7 - Answer

44

A TV station received revenue from licensee (University) for the following. Which of the following are allowable as NFFS?

A. Production of video streams and related archive videos of commencement, convocation and other similar events.

B. Production of all athletic events on campus that run via live streaming.

C. Appropriation from licensee for station operations.D. All of the above



4545



• Preparing the Annual Financial Reports– Filing process– Annual financial report components– Audited financial statement (AFS) requirements– Desk reviews


Agenda

46

General ledger and accounting records

maintained throughout the fiscal year...

AFR/FSR Filing Process

47

AFR/FSR FormsAFR FSR

Direct Revenue Schedule A Part 1

Indirect Administrative Support (if applicable)

Schedule B Part 1

In-kind Contributions(if applicable)

Schedules C and D Part 1

Expenses Schedule E Part 2

NFFS Exclusions Schedules A, B, C and D Part 3

Reconciliation with Audited Financial Statements (if applicable)

Schedule F Part 4

48

• Additional required forms for all grantees– Grantee Profile– Signature Page (Certification and Attestation)

– Audited Financial Statements (AFS), if required

AFR/FSR Forms

49

• Additional forms, if applicable– Large Gift Allocation (TV) or Capital Asset

Allocation (Radio)– Accountant’s Qualification Statement (AQS)

(State/Internal Audit)– Extension Request Form

AFR/FSR Forms

50

Must be:• station specific

• comparative statements (include prior year)

• on letterhead, signed & uploaded by the Independent Auditor.

Joint Licensees can use a combined AFS with supplemental statement of activities for each CSG grantee.

Audited Financial Statements/AFS

51

• Financial Accounting Standards Board (FASB)model financial statements include:– Independent Auditor’s Report– Statement of Financial Position– Statement of Activities– Statement of Cash Flows– Notes to Financial Statements– Statement of Functional Expenses

Audited Financial Statements

52

• Governmental Accounting Standards Board (GASB)model financial statements generally include:– Independent Auditor’s Report– Management’s Discussion and Analysis (MD&A)– Statement of Net Assets (and/or Balance Sheet)– Statement of Revenues, Expenses and Changes in

(Fund) Net Assets– Statement of Cash Flows– Notes to Financial Statements– Statement of Functional Expenses (optional but

strongly encouraged) 53

Audited Financial Statements

Unaudited Financial Statements for FASB model:Required:

– Statement of Financial Position – Statement of Activities– Statement of Cash Flows

Optional for CPB:

– Notes to Financial Statements – Statement of Functional Expenses

Note: Financial statements must be comparative.

Unaudited Financial Statements-FSR filers

54

Unaudited Financial Statements for GASB model:Required– Statement of Net Assets (and/or Balance Sheet) – Statement of Revenues, Expenses and Changes in (Fund) Net

Assets – Statement of Cash Flows Optional for CPB– Notes to Financial Statements – Statement of Functional Expenses – Management’s Discussion and Analysis (MD&A)

Note: Financial statements must be comparative.55

Unaudited Financial Statements-FSR filers

• Complete all required & applicable schedules/forms.

• Review & verify revenues, expenses, and NFFS.

• Upload AFS, if required.• Complete the signature page. • Submit the AFR/FSR

AFR/FSR Submission Summary

56

After you submit your AFR/FSR:

• CPB performs desk reviews & requests information/documentation

• Once the AFR/FSR is approved, NFFS is used in CSG calculations

• AFRs/FSRs are also subject to audits by the Inspector General (even after desk review approvals)

AFR/FSR Desk Review Process

57

Q & A

Test Your Knowledge

Questions & Answers

58

Question 8

59

Which of the following is true?

A. An AFR/FSR is subject to an audit by CPB’s OIG, even after desk review approvals.

B. Both the Head of Grantee & Independent Accountant must sign the FSR’s Signature Page.

C. AFR Schedules A, E, & F are always required to be completed.

D. A and C

Question 8 - Answer

60

Which of the following is true?

A. An AFR/FSR is subject to an audit by CPB’s OIG, even after desk review approvals.

B. Both the Head of Grantee & Independent Accountant must sign the FSR’s Signature Page.

C. AFR Schedules A, E, & F are always required to be completed.

D. A and C

Question 9

61

Direct revenues & expenses are reported in ___ and___ of the AFR, respectively?

A. Schedules A and BB. Schedules A and CC. Schedules A and DD. Schedules A and E

Question 9 - Answer

62

Direct revenues & expenses are reported in ___ and___ of the AFR, respectively?

A. Schedules A and BB. Schedules A and CC. Schedules A and DD. Schedules A and E

Question 10

63

Which of the following is true regarding requirements of Audited Financial Statement/AFS?

A. Station/CSG grantee specificB. Comparative statements (include prior year)C. Joint Licensees can use a combined AFS with

supplemental statement of activities for each CSG grantee.

D. All of the above

Question 10 - Answer

64

Which of the following is true regarding requirements of Audited Financial Statement/AFS?

A. Station/CSG grantee specificB. comparative statements (include prior year)C. Joint Licensees can use a combined AFS with

supplemental statement of activities for each CSG grantee.

D. All of the above



65





Agenda

66

• Access at isis.cpb.org

Integrated Station Information System

67

• View status of schedules and forms

Financial Reporting Main

68

NFFS Summary

Menu

• Report direct revenue

Schedule A

69

Identify NFFS on each line

Add comments for large differences

Schedule A

70

Indicate NFFS eligibility on Line 20

• Report direct revenue Line 13 & 14 Revenue (Net of Direct Expenses)

New (Line 21) – Spectrum Auction

Schedule A

71

• Adjustments to Revenue (Automatically populated in ISIS)

• Report program and support services expenses• Report investment in capital assets

Schedule E

72

Indicate direct and indirect expenses

• Report expenses by function & source in Lines 1 to 7 (A-D)

Schedule E

73

TVRadio

• Input all revenue reported in your audited financial statements in line 2 and add reconciling items in Line 4

Schedule F

74

• Indirect Administrative Support-IAS

Schedule B

75

• Indirect Administrative Support

Schedule B

76

• Indirect administrative support

Schedule B

77

• In-kind contributions of services and other assets

Schedule C

78

• In-kind contributions of property and equipment

Schedule D

79

• The independent accountant must complete this page and upload the audited financial statements

AFS Upload Page

80

• Head of Grantee certifies & IA attests to NFFS

Signature Page

81



82





Completed Agenda

83

For radio and TV grantees:• Understand purpose and importance of

accurate reporting• Be ready to prepare your first annual

financial reports• Improve ability to file a flawless report• Know where to find help• Meet annual training requirement

Completed Training Objectives

84

cpb.org

Resource documentsOnline webinars

Help Desk

Email: [email protected]: (866) 635-4747Fax: (202) 879-9700

CSG Resources

85


86


87

Live Webinar TrainingOctober 9, 2019

Corporation for Public Broadcasting

Introduction to Financial Reporting