indirect administrative support method … · 13/02/2020 · indirect administrative support...
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Indirect Administrative Support Method
Kate Arno, VP, CSG and Station InitiativesBiniam Debebe, Sr. Financial Review Specialist
Ken Goulet, Sr. Financial Review Specialist
WebinarFebruary 13, 2020
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Press Q&A button in the top right of screen.
At bottom right, choose Q&A. Type question in field at bottom of screen.Hit send.
Submitting Questions
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Today’s Objectives
Introduce the new method.Practice and submit now, using your 2018
data.Be ready to start reporting FY 2020.
Today’s Agenda
2:00 Welcome, introductions, background
2:15 Introduce and walk through new method
3:00 Demo of the practice online reporting form
3:20 Resources and next steps
IAS Background
240 grantees report IAS Totaling $111M in NFFS = $12M+/-CSG Small portion of total NFFS but important
to grantees that report it.
IAS Background
Principle: Acknowledge the value of indirect administrative support that institutional licensees provide to their stations
Current methods are complex, time-consuming, and error-prone.
A re-set is necessary.
IAS Background
2019 Radio and TV CSG Review PanelsJoint IAS subcommitteeRecommendations approved by Board.
New Method
Reduces time and errors.Provides consistency in reporting.Can be more fully reviewed at the desk
review level.
IAS Practice
Practice activities include:Attending one CPB online webinar, Practice using an excel sheet,Submit to CPB your final calculation for FY 2018
with an online tool.
IAS Practice
Practice will:Prepare you to use new method to report FY 2020
IAS.Provide early read on the impact of transitioning to
the new method. Inform CPB re: AFR and any transition steps required.
IAS Practice Timeline
Feb. 2020 Training and practice new method
Mar. 31, 2020 Final date to submit IAS practice
April 2020 Analysis
May 2020 Update at PMBA Conference
June 2020 Final guidance for new method
Nov. 2020 Start to complete FY2020 AFRs
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Submitting Questions
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Today’s Agenda
2:00 Welcome, introductions, background
2:15 Introduce and walk through new method
3:00 Demo of the practice online reporting form
3:20 Resources and next steps
Simplified Method
General IAS Formula
Rate X Base = IAS
Simplified Method
5-steps1. Compute the rate.2. Identify the base.3. Multiply the rate by the base. 4. Compute occupancy value, if applicable.5. Deduct fees paid to licensee, if applicable
Simplified Method – Step 1
Rate: licensee’s indirect costs divided by its direct costs
Step 1 - The Rate
Licensee’s Indirect Costs* Licensee’s Direct Costs• Institutional support• Physical plant support
* Include only the component (s) you benefit from.
Indirect Costs ÷ Direct Costs = Rate
Step 1 - The Rate
Licensee’s Indirect Costs* Licensee’s Direct Costs• Institutional support • Total operating expenses
minus only institutional support and physical plant support
• Physical plant support
* Include only the component (s) you benefit from.
Indirect Costs ÷ Direct Costs = Rate
Step 1 - The Rate
College and University Licensees: Must use the system’s audited financial statement.
IAS Calculation Worksheet: Step 1 The Rate
Step 2 - The Base
To identify station’s net direct expenses: Total operating expenses minus indirect expenses.
See 2018 AFR Schedule E Line 8.
Step 2 - The Base
Total operating expenses per Schedule E Line 8 minus: 1. total depreciation and amortization, 2. in-kind contributions, 3. indirect administrative support, 4. expenses for non-broadcast activities and UBIT, and 5. expenses not supported by licensee – example, some
consolidated entities like Friend’s Group, foundations, and component units.
= Net direct expenses.
IAS Calculation Worksheet: Step 2
Step 3 – Apply the Rate to the Base
Multiply rate by the station’s net direct expenses. 15% X $1,870,000 = $280,500.
IAS Calculation Worksheet: Steps 2 & 3
Step 4 - Occupancy Value
The value of a station’s pro-rata share of the annual depreciation of a licensee-owned building or land associated with tower facilities that is fully or partially occupied by the station.
Not applicable to all grantees No revisions are being made to the calculation If recognized in FY2018, enter amount in Step 4 If not, do not include an amount in Step 4
IAS Calculation Worksheet: Step 4
Step 5 – Deduct Fees Paid to the Licensee
Deduct any fees that you have paid directly to the licensee for such things as overhead recovery, assessment, use fees or management fees.
May not be applicable to all grantees
IAS Calculation Worksheet: Step 5
Recording IAS as NFFS in AFR (FY2020)
As with all amounts reported as NFFS, IAS must be included in your station’s AFS.
The final amount that you calculate using this method may be reported as NFFS if it doesn’t exceed the IAS reported in your station’s AFS. If it does, you must make an adjustment before you report it as NFFS. The IAS you report as NFFS may not exceed the amount audited in your financial statement.
Not applicable for the IAS practice session.
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Submitting Questions
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Today’s Agenda
2:00 Welcome, introductions, background
2:15 Introduce and walk through new method
3:00 Demo of the practice online reporting form
3:20 Resources and next steps
IAS Practice Form Email
IAS Practice Form Email Delegation to the person completing IAS form
IAS Practice Form Email
IAS Calculation Worksheet: Step 1
IAS Calculation Worksheet: Step 2 and 3
IAS Calculation Worksheet: Step 4 and 5
Final Steps to Submitting IAS Form
Additional Steps to Submitting IAS Form
Additional Steps to Submitting IAS Form
Additional Steps to Submitting IAS Form
Sample email for signed/completed IAS form
Final Thoughts and Next Steps
https://www.cpb.org/stations Step by step directionsExcel sheet for practiceToday’s slides (PDF)Today’s session recordedHelp DeskEmail: [email protected]: (866) 635-4747
CSG Resources
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Upcoming Training
Additional IAS Training Dates: February 20, 2020 February 27, 2020 All training sessions will be recorded and
made available on the CPB website.
Indirect Administrative Support Method
Kate Arno, VP, CSG and Station InitiativesBiniam Debebe, Sr. Financial Review Specialist
Ken Goulet, Sr. Financial Review Specialist
WebinarFebruary 13, 2020