Community Service Grant 101. Kate Arno, Director, TV CSG Policy and Review Deborah Carr, Director, CSG Radio Administration
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1 Community Service Grant 101 Kate Arno, Director, TV CSG Policy and Review Deborah Carr, Director, CSG Radio Administration 1
2 Almost 600 CSG radio and TV grantees More than 1300 stations Photos courtesy Maine Public Broadcasting 2
3 170 TV Grantees Local State Licensee Type University Community Community 52% University 33% State 11% Local 4% 3
4 410 Radio Grantees Local Licensee Type State Community University University 48% Community 42% Local 7% State 3% 4
5 Federal FY 2014 Appropriation $445,000,000 No less than 6% System Support $26,700,000 75% (of 89%) Television $297,037,500 89% Station and Programming Grants $396,050,000 No more than 5% CPB Operations $22,250,000 25% (of 89%) Radio $99,012,500 75% CSG $222,778,125 Unrestricted CSG $69,308,750 70% 25% Programming $74,259,375 Restricted CSG $22,772,875 Programming $6,930,875 23% 7%
6 The CSG Cycle Financial: 5 months after grantee FY ends SAS/SABS/LCSR submitted by Feb.15 2 nd CSG payment disbursed Grantee submits financial data & surveys Grantee certifies & accepts CSG CPB calculates & offers grants Grantees certify Legal Forms to get 1st of 2 CSG payments Grants calculated late summer Legal Forms and grant amounts offered in October/November Grant data shared with national organizations
7 Community Service Grants Base Grant Flat Amount distributed to all stations Incentive Grant Matches a qualifying station s NFFS Special Grant For particular classes of stations 7
8 TV CSG PROGRAM Photos courtesy Oregon Public Broadcasting 8
9 Eligibility: Public TV stations criteria Nonprofit, FCC-licensed Must comply with FCC requirements for non-commercial educational TV Programming CPB-qualified programming Hours 7 days 52 weeks 58 hours 9
10 Eligibility: Public TV stations criteria Open Meetings Preceded by reasonable notice Timely notice if a meeting closed CAB Community Advisory Board Donor Privacy Per State and Federal regulations 10
11 Eligibility: Public TV stations criteria Record Keeping Financial Records Discrete accounting 10 years AFR and audited financial statement Annual certification Available for public inspection Annual financial and audit reports Other financial information Reports SAS (radio) and SABS (both) Local Content and Services Report Due annually by February 15 11
12 Eligibility: Public TV stations criteria Diversity Diversity Policy, annual goals 500 word statement EEO EEO Report Transparency Signals accountability to stakeholders Requires info kept on website 12
13 Eligibility: Public TV stations criteria Transparency - on website: Accessible Financial Community Board of Directors Community Advisory Board Senior management Open meetings policy and minutes Audited financial statements How to get annual financial reports IRS form 990 or comparable info Local Content and Services Report Annual report of hiring goals, guidelines, employee stats Diversity efforts 13
14 Eligibility: Public TV stations criteria NFFS Non-Federal Financial Support: Defined Qualifying direct, in-direct and in-kind revenue from sources not Federal government Importance Determines level of CSG award Minimum $800,000 3-year average NFFS FY2015 awards computed on FYs 2013, 2012, 2011 average 14
15 Base Grant Incentive Grant Special Grant Standard Base Grant Equals 0.11% of Federal appropriation. FY 2014 base grant: $489, stations received a full base grant. 39 stations in 15 multi-provider markets shared one base grant. 2 stations with 3-year average NFFS above $55.0 M did not receive a base grant. 15
16 Base Grant Incentive Grant Special Grant The Incentive Grant Motivates stations to generate NFFS. Grant calculated on a station s NFFS Public Broadcasting Financing Act NFFS Simplification Review of 1998 In FY 2014, for every NFFS dollar, a TV station received about $
17 Base Grant Incentive Grant Special Grants The Local Service Grant and Small Station Bonus Support for small stations Local Service Grant Coverage area population can t exceed 2.5 M A $3M pool is distributed inversely by a station s NFFS. For stations under $800,000 NFFS, LSG is calculated based upon $800,000. In FY 2014, 48 stations received LSGs. Small Station Bonus The total # of base grants for stations above $55M divided equally among small stations not in multi-provider market In FY 2014, 47 stations received a bonus of $15,
18 Base Grant Incentive Grant Special Grant The Program Differentiation Incentive Promotes diverse programming among stations in multiprovider markets (MPM) Only secondary stations are eligible (don t have the largest NFFS in the market) Stations self-certify that 90% of their programming is nonduplicative against every other station in the market. Program Differentiation Incentive Secondary station s NFFS up to the first $2M is multiplied by 1.75 Secondary station s NFFS between $2M and $4M multiplied by 1.25 $3.6M to 21 stations in FY
19 Base Grant Incentive Grant Special Grant The Distance Service Grant Provides additional help primarily to state networks. For stations operating 3 or more transmitters. Tied to base grant - fluctuates per appropriation. 39 stations received $5,054,088 in FY 2014 grants. Distance Service Grant transmitters 5% 7.5% 10% 20% 30% 40% 50% 60% 70% 80% of standard base grant 19
20 20 The TV Community Service Grant pool calculations Base Grant = 0.11% X Federal Appropriation FY 2014 Base Grant = 0.11% x $445 M = $489,500 TV CSG Pool FY 2014 $234,537,715 minus CSG Advance Pool & Reserve ($16,523,011) Grants Distributed FY 2014: Base Grant & Small Station Bonus Distributed ($72,639,563) Distance Service Grant ($5,054,088) Local Service Grant ($3,000,000) Remaining Funds = Incentive Funds Pool = $137,321,054 FY 2014
21 21 FY2014 TV Incentive Pool based on TV station s adjusted FY2012 NFFS FY 2014 Incentive Rate of Return (IRR) Formula FY 2014 IRR Formula Calculation Incentive Funds Pool Total Adj. FY12 NFFS = IRR $137,321,054 $1,128,144,151 = $ FY 2014 Incentive Grant = $ x Grantee s FY 2012 adjusted NFFS
22 Community Service Grants Base Grant Take average of last 3 CSG base grants $478,399 Incentive Grant Add to your incentive grant: FY2013 NFFS X the average of the last 3 IRRs for TV or = estimated FY2015 CSG Award 22
23 RADIO CSG PROGRAM Photos courtesy WNIN-FM and WNIN-TV 23
24 MINIMUM CRITERIA There are 410 qualifying grantees in FY14 All stations must meet program General Provisions Operational Financial Reporting and recordkeeping Statutory Grantee must have: At least $100,000 non-federal financial support One full-time employee whose salary is not paid by the CSG Grantee must meet one of two Audience Service Criteria Audience Listening Community Financial Support 24
25 MINIMUM NFFS STATION LEVEL FY 2016* FY 2017* FY 2018* Level A - Sole Service Rural/Minority (Level B or C) N/A N/A N/A $100,000 $100,000 $100,000 Level B $175,000 $225,000 $300,000 Level C $250,000 $275,000 $300,000 Level D $300,000 $400,000 $500,000 * Refers to grant year based on two-years prior financial reporting.
26 MINIMUM NFFS/STAFFING FY 2016 FY 2017 FY 2018 Cash NFFS 10% 25% 50% Staffing (Level B) 1 Fulltime 1.5 Fulltime 2 Fulltime
27 MINIMUM NFFS NFFS Year Action Taken 1 Year 1 - Notice to station about status 2 Year 2 - Notice to station about status Year 3 - Station removed from the CSG 3 program
28 AUDIENCE SERVICE CRITERIA FY 2012 Listening Index OR FY 2012 Community Financial Support Index Average AQH *10000 Coverage Area Population (CAP) Community Financial Support *100 Coverage Area Population (CAP) Coverage Area Population Listening Index Goal (LI) News Listening Index Goal (LI) Non-News Community Financial Support Goal (CFSI) News Community Financial Support Goal (CFSI) Non-News > 5 million million ,000 1 m < 500, Minority Audience Service Stations need only meet one half of the applicable index. 28
29 If a station does not meet the Audience Service Criteria, it has several years to meet the minimum level prior to being disqualified from receiving a CSG ASC Year Annual Action Taken Warning letter sent to station in danger of failing 1 Full CSG; 1st 25% Restriction 2 Full CSG; 2nd 25% Restriction 3 Station removed from the CSG program 29
30 30 Minority Audience Service Station will be deemed qualified based on meeting at least one of the criteria below. 1) A measured minority audience composition (cume) greater than 40% (increasing over 5 years) averaged over the previous three consecutive measured quarters*; or 2) The station is licensed to a designated Historically Black College or University; or 3) The station is licensed to Native American Tribe, a consortium of Tribes, or an entity controlled by a Tribe, or is licensed to a community within recognized Tribal Lands and provides a coverage area of which a substantial portion includes Tribal Lands. *In markets where audience measurements are not available or such measurements are based on a total cumulative audience of 5,000 or less, a station can be recognized as a Minority Audience Service Station if its coverage area population minority composition is greater than 50%.
31 31 Minority Audience Service Station Support CPB will multiply the MASS-qualified station s base grants and NFFS (up to $5,000,000) by 1.5 In addition, stations that meet the MASS criteria will have their Audience Service Criteria reduced by 50% and may use part time employees to meet the minimum employment requirement
32 32 Rural Audience Service Station (RASS) Qualification Coverage area population density is less than 40 people per square kilometer. RASS Support CPB will multiply the RASS-qualified station s NFFS by 1.25.* RASS qualified stations are also be eligible for the Rural Support Grant (RSG).* *Any station that qualifies under both MASS and RASS criteria, will receive a 1.5 multiplier to its base grants and a 1.75 multiplier to its NFFS. In addition, such a qualified station would be entitled to receive all the other related benefits.
33 33 Public radio stations fall into one of four levels Level A B C D Station Type Sole Service Stations: Only radio/tv station within 50 miles Small Stations: NFFS under $200,000 or with less than 4 FTE (small stations may include Rural Audience Service Stations (RASS)) Large Rural Audience Service Grantees: NFFS greater than $200,000 with at least 4 FTE and population density less than 40 people per square km Large Stations: NFFS greater than $200,000 with at least 4 FTE and population density greater than 40 people per square kilometer
34 Base Grant Incentive Grant Special Grant The standard base grant amount is determined by the station level Level Station Type FY 2014 Base Grant Amount A Sole Service Stations $100,000 B Small Stations $72,313 C Large RASS Stations $72,313 D Large Stations $57,850 MASS grantees may have their base grants multiplied by
35 Base Grant Incentive Grant Special Grant Only Levels C & D stations receive incentive grants In FY 2012, for every NFFS dollar raised, a radio station received $ (incentive rate of return (IRR) The incentive grant is based upon a station s adjusted NFFS Currently, only MASS and RASS grantees receive an NFFS multiplier Level Station Type Incentive Grant Amount A Sole Service Stations None B Small Stations None C Large RASS Stations NFFS X 1.25 X IRR D Large Stations NFFS X IRR MASS grantees may have their NFFS multiplied by 1.5 (up to $5,000,000) 35
36 Base Grant Incentive Grant Special Grant RSG provides additional funds to RASS grantees RSG: Rural Support Grant Rural Audience Service Stations (RASS) are defined as those with coverage area population density less than 40 people per square kilometer In FY 2014, 158 stations qualified as RASS and were eligible for the RSG Flat grant amounts awarded to qualified stations based on their existing status with the CSG program, with Minority Audience Service Stations (MASS) receiving a larger grant. MASS stations grants would be 1.5 times the non-mass stations, consistent with MASS treatment across the CSG program ($36,858 and $24,572 respectively). About $ 4.5 million was distributed in FY
37 37 The Radio Community Service Grant pool calculations Radio CSG Pool FY 2014 $87,874,493 minus Grants Distributed FY 2014: Base Grants ($29,757,067) Rural Support Grants (RSG) ($4,570,426) Remaining Funds = FY 2014 Incentive Funds Pool = $58,117,426
38 38 FY 2014 Incentive Pool distribution is based upon level C and D stations adjusted FY 2012 NFFS FY 2014 Incentive Rate of Return (IRR) Formula FY 2014 IRR Formula Calculation Incentive Funds Pool Total Adj. FY12 NFFS = IRR $58,117,426 $950,477,417 = $ FY 2014 Incentive Grant = $ x Grantee s FY 2012 Adj. NFFS
39 Community Service Grants Base Grant Take average of last 3 CSG base grants Incentive Grant Add your incentive grant: FY2013 NFFS X the average of the last 3 IRRs for radio or = estimated FY2015 CSG Award (excluding RSG) 39
40 FOR ILLUSTRATION PURPOSES ONLY EXAMPLE STATION LEVEL BASE GRANT INCENTIVE GRANT RURAL SUPPORT GRANT TOTAL CSG Level A $100,000 N/A $24,572 $124,572 Level A MASS $150,000 N/A $36,858 $186,858 Level B $72,313 N/A N/A $72,313 Level B RASS $72,313 N/A $24,572 $96,885 Level B RASS/MASS $108,470 N/A $36,858 $145,328 Level C $72,313 $38,216 $24,572 $135,101 Level C MASS $108,470 $53,503 $36,858 $198,831 Level D $57,850 $30,573 N/A $88,423 Level D MASS $86,775 $45,860 N/A $136,635
41 41 Summary of Radio Level and Qualifications Designation Requirements FY 2014 CSG Level Description Minimum NFFS Staff Must meet ASC? Population Density Base Grant NFFS Match? A Sole Service none none no Only Radio/TV within 50 miles $100,000 no B Small Stations $100,000 1 FT yes various $72,313 no C Larger RASS Grantees $200,000 4 FTE (min 2 FT) yes PD <= 40 $72,313 Yes (1.25 x NFFS) D Larger Non-RASS Grantees $200,000 4 FTE (min 2 FT) yes PD > 40 $57,850 yes
42 Community Service Grant 101 Kate Arno, Director, TV CSG Policy Deborah Carr, Director, CSG Radio Administration
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