FISCAL MATTERS: FY06
Strong community support as well as careful fiscal management enabled WGBH to successfully balance its operating budget for the 26th consecutive year. During FY06, we initiated an organization-wide strategic planning process that informed the allocation of budget resources toward our strategic priorities.
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 access services for people with vision or hearing impairments. Our program services for 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 channels. The sale of our Allston property and anticipated revenue from our Breaking New Ground Campaign have enabled us to finance the construction of the headquarters in Brighton to which we will move in mid-2007.
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 FY07 on sound financial footing. Our budget reflects a responsible balance between managing expenses to match available revenue and retaining our capacity to meet the demand for new programs in developing technology. 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 . . . and world. Thanks to all our supporters for your generous contributions.
| Sources | FY06 | FY05 |
| Grants and Contracts | $113,674,000 | $121,061,000 |
| Contributions from individuals | $23,695,000 | $23,062,000 |
| Community Service Grants (CSGs) from Corporation for Public Broadcasting |
$8,859,000 | $8,887,000 |
| Royalties, video, and foreign distribution | $18,683,000 | $18,003,000 |
| Other (includes Auction and outside captioning and sales) | $14,359,000 | $14,006,000 |
| Net transfers from WGBH program funds for programming and reserves | $7,837,000 | $8,949,000 |
| Total Sources |
$187,107,000 | $193,968,000 |
| Operating Expenses | ||
| Program development and production (includes TV, radio, Web, new media, instructional, and access technologies) | $125,250,000 | $130,828,000 |
| Broadcast (public TV and radio program services) | $9,967,000 | $10,617,000 |
| Educational services and program information | $19,729,000 | $21,422,000 |
| Support services | $32,142,000 | $31,086,000 |
| Total Expenses | $187,088,000 | $193,953,000 |
| Excess of operating sources over expenses and transfers |
$19,000 | $15,000 |
| Fund Balances | ||
| Undesignated | $17,604,000 | $17,198,000 |
| Grants for future programming* | $55,160,000 | $46,145,000 |
| Capital campaign, debt service, and Board-designated funds** | $188,672,000 | $184,032,000 |
| Endowment (market value) | $50,568,000 | $44,516,000 |
| Total Fund Balances | $312,004,000 | $291,891,000 |
* 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
