AUDITED FINANCIAL STATEMENTS
AND
OTHER INFORMATION
Years ended June 30, 2010 and 2009
WAMC
TABLE OF CONTENTS
Page
Independent Auditor’s Report 1
Financial Statements
Statements of Financial Position 2
Statements of Activities 3
Statements of Cash Flows 4
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
WAMC
We have audited the accompanying statements of financial position of WAMC (a nonprofit public
telecommunications entity) as of June 30, 2010 and 2009, and the related statements of activities, and
cash flows, for the years then ended. These financial statements are the responsibility of WAMC’s
management. Our responsibility is to express an opinion on these financial statements based on our
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of WAMC as of June 30, 2010 and 2009, and the changes in its net assets and its cash
flows for the years then ended in conformity with accounting principles generally accepted in the United
States of America.
WAMC
STATEMENTS OF FINANCIAL POSITION
June 30, 2010 and 2009
2010 2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents 636,006$ 605,391$
Pledges receivable 109,414 56,102
Underwriting and other receivables 422,463 472,157
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Line of credit borrowings 95,833$ 120,833$
Current maturities of long-term debt 332,897 297,941
Accounts payable 227,852 92,680
Accrued compensation 219,537 333,532
Deferred revenue 302,252 309,791
WAMC
STATEMENTS OF ACTIVITIES
Years Ended June 30, 2010 and 2009
2010 2009
REVENUE AND OTHER SUPPORT
Programming:
Member fund drives 2,530,555$2,760,046$
Grants:
EXPENSES
Program services:
Programming and production 3,118,416 3,085,569
Broadcasting 1,063,359 1,116,316
Program information 19,141 11,191
Total program services 4,200,916 4,213,076
Supporting services:
Fund raising 1,316,018 1,388,068
Management and general 785,566 828,692
Total supporting services 2,101,584 2,216,760
Total expenses 6,302,500 6,429,836
WAMC
STATEMENTS OF CASH FLOWS
Years Ended June 30, 2010 and 2009
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets 136,593$ (202,814)$
Adjustments to reconcile change in net assets to net cash
provided b
y
operatin
g
activities:
Depreciation 363,389 397,180
Realized and unrealized (gains) losses on investment
transactions
(
67,097
)
263,355
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (608,888) (300,323)
Proceeds from sale of investments 713,943 328,704
Acquisition/construction of property and equipment (220,776) (101,184)
Net cash used in investing activities (115,721) (72,803)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of line of credit borrowings, net (25,000) (4,167)
Principal payments on long-term debt (290,362) (244,396)
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1: ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization – WAMC is a nonprofit public telecommunications entity, organized in 1981, with
broadcasting coverage in New York State and western New England. As a publicly supported radio
station, WAMC receives substantially all of its support and revenue from listeners, underwriters, fees for
the production of programming, and under various federal and state grants.
Financial Statement Presentation – The financial statements of WAMC follow generally accepted
accounting principles which establish standards for financial reporting by not-for-profit organizations and
require that resources be classified for accounting and reporting purposes into certain net asset
categories according to externally (donor) imposed restrictions. Accordingly, when applicable, WAMC
records contributions received as unrestricted, temporarily restricted, or permanently restricted support
depending on the existence and/or nature of any donor restrictions.
Other Current Assets – Other current assets are principally comprised of amounts paid to National
Public Radio and other program producers (for programming to be provided subsequent to the end of
the fiscal year) and certain prepaid insurance costs.
Property and Equipment – As more fully disclosed under Note 3, property and equipment, including
broadcast licenses acquired through the acquisition of property and equipment, is recorded at cost or, if
donated, at fair value determined at date of acquisition. The carrying amounts of assets, and the related
accumulated depreciation, are removed from the accounts at the time of asset disposition. Depreciation
of property and equipment is computed utilizing the straight-line method over the estimated useful lives
of the assets, ranging from 5 to 40 years. Maintenance costs and repairs are charged to expense as
incurred.
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
Page 6
NOTE 1: ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments (Continued) – Interest, dividends and other investment income are included in the
Statements of Activities as a component of other support and revenue.
Revenue and Other Support – WAMC receives substantially all of its support and revenue from
listeners, underwriters, through the production of programming, and under various federal and state
grants. Member contributions, grants, production of programming and underwriting revenues are
recorded as revenue in the period earned.
Income Taxes – WAMC is exempt from income taxes under Section 501-c (3) of the Internal Revenue
Code. Effective July 1, 2009, WAMC adopted certain new guidance regarding accounting for uncertainty
in income taxes. The income tax positions taken by WAMC for any years open under the various
statutes of limitations are that WAMC continues to be exempt from income taxes and that WAMC earns
revenues from certain activities which are considered unrelated business income under the Internal
Revenue Code. In both 2010 and 2009, however, unrelated business income (net of applicable
expenses) resulted in no tax expense. The adoption of this guidance did not impact WAMC’s financial
position or results of operations. WAMC believes that there are no other tax positions taken or expected
to be taken that would significantly increase or decrease unrecognized tax benefits within 12 months of
the reporting date. None of WAMC’s federal or state income tax returns is currently under examination
by the Internal Revenue Service (IRS) or state authorities. However fiscal years 2007 and later remain
subject to examination by the IRS and various state authorities.
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
Page 7
NOTE 1: ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subsequent Events – Subsequent events have been evaluated through September 7, 2010, the date
the financial statements were available to be issued.
NOTE 2: PLEDGES RECEIVABLE
Pledges receivable principally include contributions and other commitments from various businesses,
foundations, and individuals received in connection with WAMC’s member fund drives. During the years
NOTE 3: PROPERTY AND EQUIPMENT
Property and equipment is comprised of the following:
June 30
2010 2009
Land 615,780$ 615,780$
Buildings and improvements 4,763,173 4,727,842
Studio and other broadcast equipment 4,477,579
4,428,984
NOTE 4: INVESTMENTS
WAMC follows Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC)
820, Fair Value Measurements and Disclosures, which provides the framework for measuring fair value.
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
Page 8
NOTE 4: INVESTMENTS (Continued)
Level 1 inputs are unadjusted quoted market prices in active markets that are accessible at the measurement
date for identical assets.
The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. Valuation techniques used need to maximize
the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There
have been no changes in the methodologies used at June 30, 2010 and 2009.
Common stocks, corporate bonds and U.S. government securities: Valued at the closing price
reported on the active market on which the individual securities are traded.
Mutual funds: Valued at the net asset value (NAV) of shares held by the plan at year end.
All of WAMC’s investments at both June 30, 2010 and 2009 were classified utilizing Level 1 inputs.
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
Page 9
NOTE 5: LINE OF CREDIT BORROWINGS
WAMC periodically borrows working capital under a secured line of credit agreement with First Niagara
Bank which provides for maximum borrowings of $200,000. The agreement, which is reviewed
periodically by the bank, provides for borrowings at .25% under the prime lending rate, but In no event
less than 4.0% (currently 4.0%).
NOTE 6: LONG-TERM DEBT
Long-term debt is comprised of the following:
June 30
2010 2009
First Niagara Bank, term note dated December 2004, payable in
monthly installments of $13,256, including interest at a fixed rate of
6.2%, maturing in December 2011. $ 230,815 $ 370,395
First Niagara Bank, mortgage note dated December 2005, payable in
monthly installments of $16,066, including interest at a fixed rate of
6.8% (subsequent to year end, in July 2010, the interest rate was
reduced to 5.5% through maturity), with a balloon payment
Total 2,470,738 2,761,100
Less current portion (332,897) (297,941)
Long-term portion 2,137,841$ 2,463,159$
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
Page 10
NOTE 6: LONG-TERM DEBT (Continued)
Future principal maturities of the First Niagara Bank obligations are as follows:
Years Ending
June 30 Amount
2011 332,897$
2012 271,112
NOTE 7: LEASE OBLIGATIONS
WAMC leases various properties in connection with their utilization of towers and transmitters at
locations in New York and Massachusetts. Leases expire at various dates between 2011 and 2018. The
approximate future minimum rental obligations are as follows:
Years Ending
June 30 Amount
2011 140,000$
2012 96,000
NOTE 8: RETIREMENT PLAN
WAMC participates in a salary reduction defined contribution retirement plan sponsored by TIAA-CREF,
which covers all full-time employees. Through December 31, 2008, it was the policy of WAMC to
contribute 7% of each eligible employee’s salary into the plan. Beginning January 1, 2009, the plan was
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
Page 11
NOTE 9: NET ASSETS
Unrestricted net assets are comprised of the following:
June 30
2010 2009
Board Designated First Amendment Fund 381,645$ 444,755$
Unrestricted 4,065,371 3,865,668
NOTE 10: DEFERRED GIVING ARRANGEMENTS
WAMC enters into deferred giving agreements with donors to accept and administer various charitable
gift annuities. WAMC manages and invests these assets until the agreement expires and the assets are
distributed. Split-interest agreements provide for payments to the donors or their beneficiaries based
upon either the income earned on related investments or specified annuity amounts. Assets held under
these arrangements approximated $374,000 and $361,000 at June 30, 2010 and 2009, respectively, and
are reported as investments in the accompanying Statements of Financial Position (see Note 4).
SUPPLEMENTARY INFORMATION
Page 12
WAMC
SCHEDULES OF OTHER SUPPORT AND REVENUE
Years Ended June 30, 2010 and 2009
2010 2009
Interest and dividend income 32,253$ 47,647$
Administrative support 10,950 10,800
Income from rental property (net) 40,554 44,243
Page 13
WAMC
SCHEDULE OF FUNCTIONAL EXPENSES
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2009)
Year Ended June 30, 2010
Total June 30 June 30
Program Fund 2010 2009
Services Raising Totals Totals
Salaries 1,000,534$ 352,204$ 7,634$ 1,360,372$ 966,038$ 179,886$ 2,506,296$ 2,664,532$
Other payroll related expenses 262,056 105,037 2,049 369,142 154,946 33,456 557,544 589,456
Donated services – 10,800 – 10,800 – – 10,800 10,800
Professional and consulting services 100,784 59,394 – 160,178 10,856 56,316 227,350 155,468
Office supplies 8,673 3,096 – 11,769 14,946 18,722 45,437 36,083
Telephone 37,312 40,102 – 77,414 10,698 26,411 114,523 82,133
Rentals – 139,557 – 139,557 7,526 8,457 155,540 161,268
Building supplies and expense – 7,605 – 7,605 12,888 58,764 79,257 71,364
Travel 47,210 2,245 – 49,455 24,165 17,095 90,715 49,287
Supporting ServicesProgram Services
Production Broadcasting Program
Information
Programming
and Management
and
General