Financial reporting guidelines for preparing the AFR and FSR

Fiscal Year (FY) 2015 Financial Reporting Guidelines-provide guidance on completing the Annual Financial Report (AFR) and Annual Financial Summary Report (FSR) that Community Service Grant (CSG) recipients must file annually. The Guidelines are updated annually and CPB draws grantees’ attention to these FY 2015 revisions:

1. Per CPB Board policy (April, 2015) -Spectrum Auction revenues do not qualify as NFFS nor do interest and dividends earned and/or received on spectrum auction revenues.  See Section 2.3 “NFFS Criteria,” (Page 6) and Part III, Section 5 “Completing AFR Schedule A –Direct Revenue” (Page 48).

2. Government Accounting Standards Board (GASB) No.68 Accounting and Financial Reporting for Pensions –Effective FY2015, GASB 68 significantly changes the accounting and financial reporting for pension plans for GAAP basis employers (State agencies and school districts). CPB provides the following guidance:

  • If the licensee provides an appropriation to the station and includes pension cost of the station as appropriations to the station, report as NFFS only the actual contribution to the plan made in any given fiscal year. Do not report as NFFS, the unfunded liability (net pension liability) adjustment from year to year.
  • If the licensee provides Indirect Administrative Support (IAS) to the station and includes pension costs as part of its IAS pool, only include in the IAS pool the actual contribution to the plan made in given fiscal year. In addition, exclude the net pension liability adjustments from year to year of the pension expenses from the station's and the licensee's net direct activities.
  • If licensee does not provide an appropriation or IAS but the station’s employees are in the licensee’s pension plan, the station records only a pension expense and related liability. (There is no NFFS to report in this case.)
  • Prior year expenses may not be included in FY 2015 IAS NFFS calculations and direct appropriations.

See Part III, Section 5 “Completing AFR Schedule A-Direct Revenue” (Pages 32 and 34-38) and Section 6 “Completing Schedule B-Indirect Administrative Support” (Pages 53 and 56-57).

3. Other:

  • CPB provides guidance on how to report underwriting revenues when a third party is involved. See  Section 2.5.2 “Advertising and Underwriting” (Page 12).
  • CPB clarifies the requirements for reporting donated services per SFAS 116 in Section 2.4.2 under “Non-professional donated services” (Pages 9-10), Section 2.6.2 “Special Criteria for In-Kind Contributions Included as NFFS (Page 13) and Section 7 “Completing AFR Schedule C” line instructions (Page 61).
  • Presenting station fees do not qualify as NFFS. Definition (Pages 6-7) is taken from the “Application of Principles of Accounting and Financial Reporting to Public Telecommunications Entities” Principles of Accounting.

If you have questions pertaining to the Guidelines or how to complete an AFR or FSR, please contact CPB. We look forward to working with you.

Phone: (866) 635-4747
Fax: (202) 879-9700

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