AUDITED FINANCIAL STATEMENTS
AND
SUPPLEMENTARY INFORMATION
Years ended June 30, 2006 and 2005
WAMC
TABLE OF CONTENTS
Page
Independent Auditor’s Report on the Financial Statements 1
Financial Statements
Statements of Financial Position 2
Statements of Activities 3
Statements of Cash Flows 4
INDEPENDENT AUDITOR’S REPORT
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, 2006 and 2005, 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
audits.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of WAMC as of June 30, 2006 and 2005, 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.
Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a
whole. The supplementary information is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
WAMC
STATEMENTS OF FINANCIAL POSITION
June 30, 2006 and 2005
2006 2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents 790,584$ 683,448$
Accounts receivable 444,165 453,139
Total current assets 1,508,305 1,430,449
NET PROPERTY AND EQUIPMENT 5,231,354 2,813,340
INVESTMENTS 721,379 361,796
INTANGIBLE ASSETS 483,998 483,998
Total assets 7,945,036$ 5,089,583$
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Current maturities of long-term debt 116,864$ 109,896$
LONG-TERM DEBT, net of current maturities 2,887,823 738,296
NET ASSETS
Temporarily restricted 2,916 7,917
Unrestricted 4,187,073 3,657,670
WAMC
STATEMENTS OF ACTIVITIES
Years Ended June 30, 2006 and 2005
2006 2005
UNRESTRICTED REVENUES AND OTHER SUPPORT
Programming:
Member dues and fund drives 2,580,098$2,274,769$
Program guide 20,355 16,729
Total programming 2,600,453 2,291,498
Grants:
Total revenues and other support 6,827,721 6,110,943
EXPENSES
Program services:
Programming and production 3,143,499 2,945,333
Broadcasting 875,896 787,982
Program information 127,028 128,930
Total program services 4,146,424 3,862,245
Supporting services:
Fund raising 1,397,578 1,390,312
Management and general 747,142 678,462
Total supporting services 2,144,720 2,068,774
Other:
Net rental property expenses 7,174 –
Total expenses 6,298,318 5,931,019
WAMC
STATEMENTS OF CASH FLOWS
Years Ended June 30, 2006 and 2005
2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Increase in net assets 524,402$ 139,177$
Adjustments to reconcile increase in net assets to net cash
provided b
y
operatin
g
activities:
Depreciation 244,223 226,433
Realized and unrealized (gains ) losses on investments (7,080) 7,827
Changes in:
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (477,651) (327,092)
Proceeds from sale of investments 125,148 84,330
Acquisition/construction of property and equipment (2,662,237) (447,325)
Net cash used in investing activities (3,014,740) (690,087)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term debt borrowings 2,264,500 900,000
Principal payments on long-term debt (108,005) (908,513)
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2006 and 2005
Page 5
NOTE 1 — ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization – WAMC is a nonprofit public telecommunications entity, organized in 1981, with broadcasting
coverage in eastern 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, through the production of national
programming, and under various federal and state grants. WAMC is exempt from income taxes under Section
501(c)(3) of the Internal Revenue Code.
defined by CPB.
Financial Statement Presentation – The financial statements of WAMC follow Statement on Financial Accounting
Standards (SFAS) No. 117, “Financial Statements of Not-for-Profit Organizations.” SFAS No. 117 establishes
standards for external financial reporting by not-for-profit organizations and requires, when applicable, that
resources be classified for accounting and reporting purposes into certain net asset categories according to
externally (donor) imposed restrictions. In addition, in accordance with SFAS No. 116, “Accounting for Contributions
Received and Contributions Made,” WAMC records contributions received as unrestricted, temporarily restricted, or
permanently restricted support depending on the existence and/or nature of any donor restrictions. The recognition
Receivables – Receivables, which are comprised of both member pledges and underwriting, are periodically
evaluated by management for collectibility. At such time as receivables are determined to be uncollectible, such
amounts are written-off to bad debts. When applicable, multi-year pledges are stated at fair value, using the present
value of estimated future cash flows discounted at an appropriate rate.
Other Current Assets – Other current assets include amounts paid to program producers, such as National Public
radio and others, for programming to be provided subsequent to the end of the fiscal year as well as prepaid
insurance costs.
from 5 to 40 years. Maintenance costs and repairs are charged to expense as incurred.
Investments – Investments are comprised of common stocks and other marketable securities, and are stated at fair
market value as of the date of the statement of financial position. Investment income, including realized and
unrealized gains and losses, is included in the statements of activities as a component of other revenue and
support.
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2006 and 2005
Page 6
NOTE 1 — ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accrued Compensation – It is the policy of WAMC to accrue all employee benefit costs, including vacation time
earned, as a liability. Accordingly, the liability account “accrued compensation” includes salaries and other benefit
costs earned by employees, but not yet paid, as of WAMC’s year end.
Rental Property Activities – During the fiscal year ended June 30, 2006, WAMC acquired commercial rental
property in Albany, New York. For financial statement reporting purposes, the statement of activities reflects rental
property income as an offset against related rental expense. Rental property income approximated $63,000 for
2006. Rental property expenses, inclusive of depreciation expenses, approximated $70,000 for 2006.
NOTE 2 — PLEDGES RECEIVABLE
Pledges receivable, which includes obligations from various businesses, foundations, and individuals, are
comprised of the following at June 30:
2006 2005
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2006 and 2005
Page 7
NOTE 3 — PROPERTY AND EQUIPMENT
Property and equipment is comprised of the following at June 30:
2006 2005
Land 487,350$ 224,959$
Buildings and improvements 4,337,857 2,538,340
Studio and other broadcast equipment 3,053,347 2,574,801
NOTE 4 — LONG-TERM DEBT
Long-term debt is comprised of the following at June 30:
2006 2005
First Niagara Bank, term note dated December 2004, collateralized by
substantially all WAMC’s assets, payable in monthly installments of
$13,256, including a fixed interest rate of 6.25%, maturing in February
2011. $ 740,187 $848,192
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2006 and 2005
Page 8
NOTE 4 — LONG-TERM DEBT (Continued)
Future principal maturities under the term notes are as follows:
Years Ending
June 30
2007 116,864$
NOTE 5 — LEASES
WAMC leases various properties in connection with their operation of towers and transmitters at locations in New
York and Massachusetts. These leases expire at various dates through the year 2017. The approximate future
minimum rental obligations are as follows:
Years Ending
June 30 Amount
2007 100,000$
NOTE 6 — RETIREMENT PLAN
WAMC participates in a salary reduction defined contribution retirement plan sponsored by TIAA-CREF, which
WAMC
NOTES TO FINANCIAL STATEMENTS
June 30, 2006 and 2005
Page 9
NOTE 7 — NET ASSETS
Temporarily restricted net assets, which are comprised of gifts to WAMC’s capital campaign are classified on the
statements of financial position as follows:
2006 2005
Temporarily restricted net assets, beginning of year 7,917$ 48,664$
2006 2005
Unrestricted-Board Designated First Amendment Fund 482,577$ 203,672$
Unrestricted 3,704,496 3,453,998
Total unrestricted net assets 4,187,073$ 3,657,670$
NOTE 8 — 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
SUPPLEMENTARY INFORMATION
Page 10
WAMC
SCHEDULES OF OTHER SUPPORT AND REVENUE
Years Ended June 30, 2006 and 2005
2006 2005
Interest and dividend income 27,860$ 15,587$
Administrative support 14,464 14,282
Corporate matching gifts 39,078 32,038
Page 11
WAMC
SCHEDULE OF FUNCTIONAL EXPENSES
Year Ended June 30, 2006
Total
Program Fund
Services Raising Totals
Salaries 1,159,306$ 362,425$ 11,010$ 1,532,741$ 956,778$ 230,819$ 2,720,338$
Other payroll related expenses 278,298 98,463 795 377,556 199,769 27,812 605,137
Donated services – 10,800 3,664 14,464 – – 14,464
Professional and consulting services 1,543 38,235 – 39,778 14,262 66,093 120,133
Travel 10,812 1,861 – 12,673 25,222 9,158 47,053
Program acquisition and production costs 1,321,864 – – 1,321,864 – – 1,321,864
Printing and publications – – 43,969 43,969 2,852 – 46,821
Utilities 61,708 68,045 – 129,753 193 56,478 186,424
Insurance 39,722 10,212 1,220 51,154 18,674 8,218 78,046
Depreciation 98,877 101,641 – 200,519 – 20,633 221,152
and Management
and
General
Program Services Supporting Services
Production Broadcasting Program
Information
Programming