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FY2011 Annual Report of the Budget Committee
 

FY2011 Annual Report of the Budget Committee

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    FY2011 Annual Report of the Budget Committee FY2011 Annual Report of the Budget Committee Presentation Transcript

    • Annual Report of the Budget CommitteeFor the Fiscal Year 2011 (Ended 30 September 2011)Prepared & Submitted by Basit Mustafa, Treasurer, Boulder Community Broadcast Association (BCBA) d/b/a KGNU Radio on 7 November 2011 KGNU Community Radio 4700 Walnut Street Boulder, CO 80302 88.5FM |1390AM | kgnu.org
    • Boulder Community Broadcast AssociationTable of Contents Table of Contents ........................................................................................................................................................ 2 About This Report ....................................................................................................................................................... 3 About Your Budget Committee ................................................................................................................................... 4 Thanks & Gratitude...................................................................................................................................................... 6 Overview of FY2011 Operational Methodology, Performance, Balance Sheet, and Overall Position ........................ 8 Statement on Net Income ......................................................................................................................................... 12 Assets & Liabilities (Balance Sheet) .......................................................................................................................... 12 Accounting Errata & Information ............................................................................................................................... 15 Budget Committee FY2011 Activities & Operations ................................................................................................. 15 FY2012 Outlook & Commentary ............................................................................................................................... 16 Budget Committee FY2012 Planned Activities & Operations ................................................................................... 16 FY2012 Operational Budget ...................................................................................................................................... 17 Closing Remarks From The Treasurer ...................................................................................................................... 20FY2011 Annual Report 2
    • Boulder Community Broadcast AssociationAbout This ReportThis document is the formal written submission of the Budget Committee for KGNU Community Radio (KGNU Radio) for the Annual Meeting of the Boulder CommunityBroadcast Association (BCBA). Its purpose is to communicate and inform on KGNU’s overall fiscal position, operations, and projects & processes as they relate to thefinancial management, leadership, and planning of the organization for the fiscal year 2011 as well as report on the activities of the Budget Committee in FY2011. 1This document may contain projections for the future, statements of opinion, and even statements of fact. It may also contain errors (it is possible, even at KGNU),however, reasonable attempts have been made to ensure this report, the data contained or referenced herein, and conclusions drawn are accurate, factual, and wellvetted.However thorough the preparation of & information in this document, it should not be construed as an official financial statement of any kind. The BCBA d/b/a KGNURadio retains an independent external auditor to provide a separate audited financial statement that serves as the primary official financial statement of the BCBA d/b/aKGNU Radio.Financials presented herein have been adjusted, modified, and edited to be used as a management tool and to, in the estimation of the Budget Committee, mostaccurately reflect operational & asset positions as measurement & assessment tools. Deviations from where the audited statement is expected to land, GAAP, andother standard reports might occasionally be required to this end; where significant deviation and/or adjustment was made, it is noted appropriately.Basit Mustafa created this document with input directly from the committee throughout FY2011 and a final FY2011 results analysis meeting held on 3 November 2011.1 Fiscal Year 2011 (FY2011) consists of all business booked or transactions accrued beginning 1 October 2010 and concludes the final business recorded through 30September 2011.FY2011 Annual Report 3
    • About Your Budget CommitteeThe Boulder Community Broadcast Association’s (d/b/a KGNU Radio) bylaws instruct the board to maintain a standing committee charged with the creation,maintenance of, and reporting against an operating budget and related financial management & processes as they concern the organization. This committee is to bechaired by the Treasurer of the Board of Directors with membership unrestricted from the KGNU staff, volunteer, and board groups alike.Currently, Basit Mustafa serves as the Treasurer of the Board and the Chairperson of the Budget Committee. The most generous roster of committee membership ismost likely reflected in the membership roster for the budget@kgnu.org mailing list, however, the active members of the Budget Committee (defined as attendingmeetings in a consistent fashion, contributing a notable body of work to the core mission of the committee, or providing on-going counsel as a functioning member ofthe committee) as understood by the leadership at the conclusion of FY2011 are, in no particular order, as follows: • Mike Massa, Accounting Specialists & KGNU Accountant • Sam Fuqua, Station Manager/Executive Director, KGNU Radio • Jim Carlo • Basit Mustafa, Chairperson, Treasurer & Director, BCBA d/b/a KGNU Radio • Karen Gruber • Shawna Sprowls, Membership Director, KGNU RadioThe Budget Committee’s aegis runs the gamut of financial planning, analysis, and management at KGNU. Broadly speaking, the Budget Committee is responsible for: • Planning, defining, and obtaining approval of an operating budget • Managing, analyzing, forecasting, and reporting of KGNU’s Balance Sheet, Operating P&L, Capital Expenditures, and Financial Obligations on an on-going, quarterly, and annual basis • Establishing, enforcing, and maintaining financial/business controls, financial policy/plans, and audit as appropriate • Advising and reporting to the Board as appropriate - pro-actively, on a regular schedule, and upon demand • Understanding and monitoring the relationship/impacts between KGNU’s strategy, operations, processes, and programs and KGNU’s financial posture • Defining, managing, and maintaining relationships with external financial partners, institutions, financial regulatory agencies, and managing other fiduciary interests of the organization KGNU Community Radio 4700 Walnut Street Boulder, CO 80302 88.5FM |1390AM | kgnu.org
    • Boulder Community Broadcast Association • Providing support in financial planning, P&L management, and business support to the station manager, staff, and other committees/designees of the Board as appropriate/directedFY2011 Annual Report 5
    • Boulder Community Broadcast AssociationThanks & GratitudeA debt of gratitude is owed to anyone who has ever contributed, volunteered, or even tuned in to KGNU on-the-air or online. However, despite making this anexceedingly long document, it would also overshadow the only recognition that many of the key behind-the-scenes players in KGNU’s fiscal operations receive. TheBudget Committee would like to specifically thank a few individuals & organizations for their work with or on the Budget Committee: ★ Our long-time partner, Boulder Municipal Employees Credit Union (and their partner Centennial Lending) – both Ann Babiak and Kirk Wiebusch worked hard to provide us with a mortgage refinance proposal that was ultimately accepted that saved KGNU a significant amount on cost of funds but also provided security and predictability for the next five years on cost of funds. Through unexpected paperwork challenges in flood plain assessments, etc both Ann and Kirk worked hard to represent KGNU’s interests to their partners and secure the most favorable terms for KGNU. Their commitment to this relationship and our organization is truly appreciated. ★ Our continuing relationship with the Bank of Denver, even as we were unable to continue our mortgage relationship with them, Lori Radcliffe, President of the Bank, maintains a close relationship to KGNU and continues to work to provide us with the best financial services possible and remains committed to continuing to build our relationship despite the need for KGNU to refinance our mortgage with a different partner in FY2011 ★ Another deep and continual thank you to Mike Massa and his team at Accounting Specialists. Last year, I joked in this report that without these people our books simply would not exist and that Sam & I would be found curled up the fetal position while crying in the corner of the Grey Studio, and business simply would not be done. That continues to be true, and in FY2011 Mike (and his team) continued to impress and support us by responding with acuity to accounting changes, proactively detecting interesting trends, and dealing with the pace of business at KGNU that times can be exceedingly fast but also frustratingly slow. They maintained and demonstrated professionalism, wisdom, and genuine care & support of KGNU through this all. Their support begins at the significant financial consideration for KGNU, Mike’s service to KGNU beyond simple accounting, their “buy-in” to our work & mission, and into their own advocacy of our organization. ★ Jim Carlo continued his “return from retirement” in FY2011 – consistently providing wisdom, statistical support, and decision support in meetings, the budgeting process, and monthly reviews ★ A special thanks to Arrone Arpel of the eponymous Arrone Arpel, CPA, LLC. Arrone has long served as the BCBA’s independent auditor and performed these services with an expertise specific to KGNU’s business that is shown in the quality & efficiency of the independent audit produced yearly. Despite audit services being Arrone Arpel, CPA, LLC’s primary income, Arrone has continued to provide a generous consideration on audit fees for KGNU. The Budget Committee truly appreciates Arrone’s support and hard work. ★ All our listener-members, supporters, and lenders whose support makes these numbers appear on the spreadsheets.FY2011 Annual Report 6
    • Boulder Community Broadcast Association ★ _______________________________________ for _______________________________________________________ and _________________________________ (Proper Noun) (Laudable Action) (Not-So-Laudable Action)If you see any of these people, please take the time to thank them for their work and contribution to KGNU. If you are one of the many people who should be listedhere, but are not due to time, space, or synapse limitations on behalf of the Budget Committee, please feel free to write-in above and send this back to basit@kgnu.organd I will happily redact the latest copy!FY2011 Annual Report 7
    • Boulder Community Broadcast AssociationOverview of FY2011 Operational Methodology, Performance, Balance Sheet, and Overall PositionThe Boulder Community Broadcast Association completed its most FY2011 on 30 September 2011. While final and certified statements are not yet available and minoritems will continue to be booked to the ledger, the Budget Committee believes the major body of business has been settled. To provide a most realistic and usefulperspective on the financials for FY2011 in light of these remaining accounting items and to reflect an accurate view of continuing operations, this report speaks toFY2011 numbers from an adjusted continuing operations view. Unadjusted financials (e.g. as booked), audited statements, and supporting materials are always publiclyavailable online, in person at KGNU’s Boulder Studio, and upon reasonable request of any employee or officer of the organization.This view was created to forecast pending expense items that are not yet booked or finalized, to remove aberrational (e.g. non-continuing) events in I&E, and tonormalize “bluebird” events. The extent of significant adjustments include: 1. Adjustment of Grant Expense for anticipated/indirect costs not yet finalized 2. Removal of Bequests/Planned Giving as an operational income item 3. Normalization of the Events line item to account for Noam Chomsky’s generous event in benefit of KGNUIn an adjusted continuing operations view, KGNU performed largely on-plan for FY2011.The FY2011 budget (and resulting adjusted plan view) was created on aconservative set of assumptions in a risk-averse methodology. Income line items (especially in the form of CPB Allocation and Underwriting) were conservativelyplanned, with only moderate “stretch goals” budgeted where absolutely reasonable (Memberships, Grants, Events). The payments into cash reserves wereconservatively set to gradually return KGNU to an acceptable reserve requirement following 3 fiscal years of cash reserve draw down to service debt and complete keycapital projects.KGNU has also been gifted the reduction of $50,000.00 of debt per year by a generous supporter who was part of the 1390 Capital Campaign until that note reaches azero principal. This Release of Debt item factors favorably into the “net income” calculations. Plan Actual Income $758,788 $770,118 (101% of plan) Expense $793,748 $798,177 (101% of Plan) Table 1. Overview of Operational Income & Expense vs. Plan (FY2011)In FY2011, KGNU was able to replenish cash reserves to a “bare minimum” operational level largely based on an unexpected $50,000.00 bequest, above-planperformance in Special Events from Noam Chomsky’s visit, and impressive performance in the Underwriting program.FY2011 Annual Report 8
    • Boulder Community Broadcast AssociationThe raw-and-unadjusted view should be used to understand what actually occurred in terms of cash flow and how these payments were made, however, to summarizeherein, KGNU made a $177,044 payment into cash reserves in FY2011, well above the reduced number budgeted for FY2011. The adjusted continuing operationsview, however, provides insight into what (subset) level of contributions & operations occurred when one does not consider events outside the control of KGNU staff,volunteers, and development/fundraising programs. In this view, KGNU’s work remains strong, especially in the context of a weak economy, tenuous (if at all) recoveryin personal incomes, and weak foundation/institutional giving. However, when non-continuing operational items are removed from the calculus, the overrun in income islargely dissolved. This is an important item to note in financial, strategic, and operational planning – that while our work, constituency, and mission resonance remainstrong with our supporters & listeners the challenges around us continue to persist and growth in income from continuing operations cannot reasonably be expected orjustified to continue at levels in the raw, unadjusted financials. Continuing  Operations  (Adjusted)   Oct 10 - Sep 11 Budget $ Over Budget % of Budget Ordinary Income/Expense       Income Bequests/Planned Giving 0 0 0 0% BME Affinity Program 264 0 264 100% Bus & Ind Underwriting 66,232 50,000 16,232 132% Business & Ind Match 3,555 6,000 (2,445) 59% Car Donations 11,676 10,000 1,676 117% Community Shares 3,555 5,000 (1,445) 71% Corpn For Public Broadcasting 103,353 90,000 13,353 115% Grants 90,408 90,408 0 100% Interest & Dividends 655 0 655 100% Major Gift Solicitations 16,913 45,000 (28,087) 38% Total Memberships 398,970 444,880 (45,910) 90% Miscellaneous Income 1,532 2,500 (968) 61% Program Guide Ad Revenue 5,585 0 5,585 100% Raffles 797 1,500 (703) 53% Total Special Events 44,071 55,000 (10,929) 80% Studio Production Time 6,971 3,500 3,471 199%FY2011 Annual Report 9
    • Boulder Community Broadcast Association Volunteer Training Fees 3,410 0 3,410 100% Year End Donations 29,739 0 29,739 100% Total Income 770,118 758,788 11,330 101% Ex- pense Grant Expense 35,367 35,367 0 100% Bank Charges 8,163 11,000 (2,837) 74% Cash Reserves 92,044 71,286 20,758 129% Total Commissions 11,885 0 11,885 100% Dues & Subscriptions 5,783 6,000 (217) 96% Employee Benefits 48,148 68,444 (20,296) 70% Employee Bonus 0 1,050 (1,050) 0% Employee Search 953 0 953 100% Fund Drive & Premium 6,134 7,500 (1,366) 82% Total Fundraising Expense 13,208 0 13,208 100% Hospitality 882 1,200 (318) 74% Insurance 21,693 20,000 1,693 108% Interest Expense 1,721 0 1,721 100% Internet 5,461 5,000 461 109% Janitorial 3,127 2,000 1,127 156% Total Labor 560 1,500 (940) 37% Mileage & Reimbursements 1,200 0 1,200 100% Mortgage Interest 25,357 27,000 (1,643) 94% Office 14,460 15,000 (540) 96% Outreach/Promotion 2,287 6,000 (3,713) 38% Postage 7,036 8,200 (1,164) 86% Production Supplies 4,457 2,500 1,957 178% Total Professional Fees 63,850 54,000 9,850 118%FY2011 Annual Report 10
    • Boulder Community Broadcast Association Total Program Acquisition 32,915 32,500 415 101% Total Program Guide Expense 5,389 0 5,389 100% Rent - AM Tower 36,000 30,000 6,000 120% Rent - FM Tower 15,237 16,155 (918) 94% Rent - Denver Studio 3,060 3,060 0 100% Repairs & Maintenance 3,770 6,000 (2,230) 63% Total FM Salaries 236,700 271,148 (34,448) 87% Total AM Salaries 20,858 20,858 0 100% Satellite Interconnect 7,494 7,500 (6) 100% Storage 711 720 (9) 99% Taxes - Other 971 2,000 (1,029) 49% Taxes - Payroll 21,584 22,750 (1,166) 95% Telephone 20,717 20,000 717 104% Travel & Conferences 229 500 (271) 46% Utilities 18,766 17,510 1,256 107% Total Expense 798,177 793,748 4,429 101% Net Ordinary Income (28,059) (34,960) 6,901 80% Other Income/Expense Other Income Release of Debt 50,000 0 50,000 100% Total Other Income 50,000 0 50,000 100% Net Other Income 50,000 0 50,000 100% Net Income 21,941 (34,960) 56,901 (63%)FY2011 Annual Report 11
    • Boulder Community Broadcast AssociationStatement on Net IncomeKGNU plans against a balanced budget and all intermediate operational forecasts & course adjustments are made with that goal in mind. However, outside of sheerstatistically improbable luck or fancy accounting tricks/line items, a net-zero result is quite elusive. For FY2011 KGNU did plan for a net-zero income based on anunderstanding of non-continuing operational items to occur in FY2011. However, once release of debt Is accounted and other adjustments are made to create thecontinuing operations view (e.g. removal of these items) – a non-zero net income occurs. The operational direction has been to leverage this year’s modest operatingsurplus to provide 100% for debt service.Assets & Liabilities (Balance Sheet)In FY2011, KGNU worked to return its cash reserve to acceptable levels (minimum of three months of operating budget & reasonable liquid cash requirements foremergency response on facilities & physical plant catastrophe). Sep 30, 11 ASSETS Current Assets Checking/Savings Checking - Mutual 119,021.90 Checking - BOD Bldr 9,518.23 Checking - BOD AFT 12,055.88 Savings - BOD 118,406.18 Savings - BOD Loan Acct 10,803.99 BME-Capital Campaign A/C 15.89 Calvert Money Market 1,583.08 NPC Brokerage Account 14.88 Raffle Account 1,554.80 Vanguard Money Market 1,088.03 Restricted for Cash Reserves (177,044.00) Total Checking/Savings 97,018.86FY2011 Annual Report 12
    • Boulder Community Broadcast Association Other Current Assets Prepaid Expenses 6,375.00 Prepaid Transmitter Rent 13,137.04 Total Other Current Assets 19,512.04 Total Current Assets 116,530.90 Fixed Assets Land 350,000.00 Building 1,044,048.32 Building Improvements 35,262.78 Refinance Cost July 2011 7,984.50 Denver Production Studio 36,111.75 Equipment Office 78,708.99 Equip. Studio & Broadcast 507,005.40 FM Upgrades 48,327.66 FM Generator Project 20,604.59 Record Library 350,353.36 Translator 8,859.16 Transmitter Building 1,495.68 Leasehold Improvements 11,081.32 Accumulated Depreciation (1,106,799.00) Total Fixed Assets 1,393,044.51 Other Assets AM 1390 Signal 4,100,000.00 Accumulated Amortization (1,639,998.00) Pending 200.61 Total Other Assets 2,460,202.61FY2011 Annual Report 13
    • Boulder Community Broadcast Association TOTAL ASSETS 3,969,778.02 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 5,105.20 Total Accounts Payable 5,105.20 Credit Cards Chase Card Payable 955.29 Total Credit Cards 955.29 Other Current Liabilities Golden Mouse Fund 3,305.75 RMCR Capital Coverage Project 4,242.53 Tributaries Project 156.50 Escrow - Ft. Collins 4,250.00 FM Memberships Prepaid 88,758.52 AM Memberships Prepaid 17,287.46 Payroll Taxes Payable FICA & Fed W/H Tax Payable 3,178.31 State W/H Tax Payable 976.00 SUI Tax Payable 13.35 Comm Shares 15.00 Total Payroll Taxes Payable 4,182.66 Total Other Current Liabilities 122,183.42 Total Current Liabilities 128,243.91FY2011 Annual Report 14
    • Boulder Community Broadcast Association Long Term Liabilities Note Payable - Mortgage 390,119.34 Loan Payable-Private 1390 Notes 2,278,000.00 Total Long Term Liabilities 2,668,119.34 Total Liabilities 2,796,363.25 Equity Fund Balance 1,118,324.20 Net Income 55,090.57 Total Equity 1,173,414.77 TOTAL LIABILITIES & EQUITY 3,969,778.02Accounting Errata & Information 1. KGNU transitioned to gross accounting treatment for Grants and Underwriting in 3Q11. Based on this methodology, all income in both of these categories will be booked as income and associated expense items (such as commissions, administration, operational expense, etc) will be applied as expenses. 2. KGNU has begun to book a restriction in assets for cash reserves to create a more accurate view of liquidityBudget Committee FY2011 Activities & OperationsThe management & planning of BCBA/KGNU finances remains the single largest task and deliverable of the budget committee. In addition to the work in managing theFY11 financial operations, planning, and treasury, the Budget Committee engaged in several other activities: 1. Renegotiation and refinance of the Boulder Studio mortgage to a 5.25% rate fixed for 60 months on a 10 year term (balloon) on a 25 year schedule with an intent to “renew” at year 10 (balloon instrument necessary to work inside Federal Law regarding Credit Union lending) 2. Improvement & formalization of pipeline, forecasting, and planning processes 3. Roles, responsibilities, and control book discussions + formalizationFY2011 Annual Report 15
    • Boulder Community Broadcast Association 4. Transition & succession planning leading into FY12 budget process 5. Supporting Executive Committee & Sam in negotiations & updates on lender and lender relations with external-use materials/collateral, information, analytics and internal decision supportFY2012 Outlook & CommentaryNo financial report is typically complete without a disclaimer about forward-looking statements – and this is no exception! In any economic environment, forecasting canbe a black art at best in items one and one’s organization can control (e.g. controllable expense, continuing operations, etc) – but in items beyond one’s control in anelection year – well, black art would be a level of certainty we are yet to observe. With that said, the KGNU Budget Committee has agreed upon an FY2012 outlook andhas a number of recommendations for operations in FY2012. The Budget Committee prefers its crow served braised.We believe FY2012 will continue to be marked by a stagnant economy, increased inflationary pressures, continued challenges in personal income,foundation/institutional giving, and a risk-averse temperament of both individuals and companies/government to long-term & discretionary spend. However, localizedimprovements in job growth in white-collar industries, limited local recovery of economic activity, and favorable personal income trends in our areas provide a slightbuffer to the broader uncertainty & flat-at-best forecast for GDP and incomes. Inside this localized recovery we believe opportunities for improved performance in MajorGifts through the proper work/prospecting/engagement, membership improvement in gift-per-member and new memberships, and continued strength in Underwritingfrom local businesses exists and is reflected in the FY2012 Budget assumptions in more detail.Organizationally, the Budget Committee believes a focus on codifying, streamlining, and automating processes – especially between logical, organizational, andindividual functions is an important path to organizational growth and driving further efficiencies into operations. Specifically, we believe that the individual proceduresinside each tower of the organization (and, despite whatever the outward appearance maybe, on the desk of each employee), our processes are mostly appropriatelydefined, executed, documented, and stewarded. Interfaces between each desk/logical function also show sophistication in some areas. Extending this is an importantarea of focus for the Budget Committee in the work we do internally, but also with other parts of the organization. Defining what data is exchange with whom, in whatformat, at what frequency/event, and how we can improve or streamline that (or at least better understand it) presents several areas for productivity enhancement.Budget Committee FY2012 Planned Activities & OperationsObviously, continued steady-state operation, management, planning, and analysis of the operations, assets, and treasury will continue as normal. Further focus onformalizing, automating, and streamlining processes & documentation will continue. Specifically: 1. Creation of a consolidated control book documenting processes, dates, checkpoints, and assumptions from existing documents 2. Formal definition of roles, responsibilities, and work items, their responsible parties, and the organizational and data/IT interfaces between them in the data & work flow 3. Build ion FY10 and FY11 work in creating consistent templates for reports, accounting rules, pipeline & forecast information, and interfaces outside committeeFY2011 Annual Report 16
    • Boulder Community Broadcast Association 4. Succession planningFY2012 Operational BudgetThe BCBA board approved the proposed KGNU Operational Budget for FY2012 at the August Board of Directors meeting. A detailed discussion of the process, workitems, work products, and particulars can be found in the minutes of this and the preceding two months’ meetings and the deliverables documented in those minutes.The FY2012 budget retains the conservative assumptions of FY2011 and further adopts gross accounting treatment for Underwriting & Grants informally introduced inFY2011 as a formal methodology.   Budget Ordinary Income/Expense Income Bequests/Planned Giving $- BME Affinity Program $- Bus & Ind Underwriting $68,750.00 Business & Ind Match $5,100.00 Car Donations $10,000.00 Community Shares $5,000.00 FM Upgrade $- Corpn For Public Broadcasting $90,000.00 Grants $70,000.00 Interest & Dividends $- Major Gift Solicitations $45,000.00 Total Memberships $444,880.00 Miscellaneous Income $2,500.00 Program Guide Ad Revenue $- Raffles $1,500.00 Total Special Events $30,000.00 Studio Production Time $3,500.00FY2011 Annual Report 17
    • Boulder Community Broadcast Association Volunteer Training Fees $- Year End Donations $25,000.00 Total Income $801,230.00 Expense Total Grant Expense - Restricted $32,000.00 Bank Charges $11,000.00 Cash Reserves $99,235.28 Total Commissions $13,750.00 Dues & Subscriptions $6,000.00 Employee Benefits $60,619.20 Employee Bonus $1,050.00 Employee Search $- Fund Drive & Premium $7,875.00 Total Fundraising Expense $- Hospitality $1,260.00 Insurance $20,000.00 Interest Expense $- Information Technology (formerly Internet) $5,000.00 Janitorial $2,200.00 Total Labor $1,575.00 Mileage & Reimbursements $- Mortgage Interest $20,500.00 Office $15,450.00 Outreach/Promotion $6,300.00 Postage $8,610.00 Production Supplies $2,625.00 Total Professional Fees $44,000.00FY2011 Annual Report 18
    • Boulder Community Broadcast Association Total Program Acquisition $32,500.00 Total Program Guide Expense $- Rent - AM Tower $32,400.00 Rent - FM Tower $18,437.84 Rent - Denver Studio $3,000.00 Repairs & Maintenance $6,000.00 Total Payroll $277,926.19 Satellite Interconnect $7,500.00 Storage $756.00 Taxes - Other $2,000.00 Taxes - Payroll $22,750.00 Telephone $20,000.00 Travel & Conferences $525.00 Utilities $18,385.50 Total Expense $801,230.00 Net Ordinary Income $-FY2011 Annual Report 19
    • Boulder Community Broadcast AssociationClosing Remarks From The TreasurerKGNU’s value in the community is evident in many ways – over the nearly 34 years of community media, KGNU has taken on many roles, touched many lives, andbeen the medium for expression for a diverse gamut of thoughts, ideas, sounds, and artful expressions.This has only been possible by committed volunteers in every part of KGNU’s operations, skilled and dedicated staffers (who certainly don’t do this for the money!), andengaged supporters (both financially and otherwise) who meld KGNU’s mission their own passions.As we head into FY2012, this dedication from all parts of the KGNU community shows strength worthy of its years & history, even in an environment where individualsare facing tough choices and distracting events. In fact, whether it was being an active community player in responding to local emergencies, being the reliable outletfor news & opinion on the news & topics of the day that represents a voice unheard elsewhere, or being the purveyor of fine music, art, and sounds you can’t findanywhere else – with our strong staff, volunteers, and supporters KGNU’s engagement, support, and relevance grows through time – thick and thin.FY2011 was successful from a financial perspective because of our dedication to the organization and we believe that continuing with this spirit and building on ourheritage in FY2012 is the clearest, most reliable, and most valuable path to success – financial and for our mission.FY2011 Annual Report 20