FISCAL IMPACT: FY05
Strong community support as well as careful fiscal management enabled WGBH to successfully balance its operating budget for the 25th consecutive year. In response to a soft economic climate, WGBH reduced expenses, including staff and programming costs, while investing in strategic growth opportunities.
This prudent fiscal approach helped WGBH maintain its position as one of the nation's top public media organizations, as a leading producer of high-quality programs for TV, radio, the Web, and other media, and as a provider of media access services for people with vision or hearing impairments. Our broadcast operations serving New England-area audiences were supported primarily by viewers and listeners, local business sponsors, and a federal Community Service Grant from the Corporation for Public Broadcasting (CPB). Program Venture funds augmented major individual contributions to provide bridge funding, enabling WGBH to move forward with the development of new productions for local and national broadcast and our digital cable channels. The sale of our Allston property and anticipated revenue from our Breaking New Ground Campaign have enabled us to finance the construction of our new headquarters in Brighton (move-in date: late 2006).
Our national productions for television and the Internet were funded primarily by restricted grants from corporations, foundations, government agencies, and PBS stations. Our media access technologies for people with disabilities were supported by grants from CPB and the US Department of Education, and by the sale of services.
Fiscal Outlook
WGBH enters FY06 on sound financial footing. We've increased reserves and will carefully monitor our financial activity as the year progresses. Generous membership support allows us to continue to provide important services to audiences across New England. Grants from foundations, corporations, government agencies, and public broadcasting entities enable us to produce programs and Web sites for the nation. Thanks to all our supporters for your generous contributions.
Operations: Sources and Uses
| Sources | FY05 | FY04 |
| Grants and Contracts | $121,061,000 | $119,173,000 |
| Contributions from individuals | $23,062,000 | $22,366,000 |
| Community Service Grants (CSGs) from Corporation for Public Broadcasting | $8,887,000 | $9,175,000 |
| Royalties, video, and foreign distribution | $18,003,000 | $19,324,000 |
| Other (includes Auction and outside captioning and sales) | $14,006,000 | $11,433,000 |
| Net transfers from WGBH program funds for programming and reserves | $8,949,000 | $8,013,000 |
| Total Sources |
$193,968,000 | $189,484,000 |
| Operating Expenses | ||
| Program development and production (includes TV, radio, Web, new media, instructional, and access technologies) | $130,828,000 | $118,895,000 |
| Broadcast (public TV and radio program services) | $10,617,000 | $13,609,000 |
| Educational services and program information | $21,422,000 | $25,505,000 |
| Support services | $31,086,000 | $31,212,000 |
| Total Expenses | $193,953,000 | $189,221,000 |
| Excess of operating sources over expenses and transfers |
$15,000 | $263,000 |
| Fund Balances | ||
| Undesignated | $17,198,000 | $16,254,000 |
| Grants for future programming_* | $46,145,000 | $78,975,000 |
| Capital campaign, debt service, and Board-designated funds_** | $184,032,000 | $172,567,000 |
| Endowment (market value) | $44,516,000 | $39,359,000 |
| Total Fund Balances | $291,891,000 | $307,155,000 |
* In accordance with accounting principles, multi-year grants for production are recognized completely in the year they are received, resulting in significant swings in this balance
** This includes the net present value of future revenue streams
