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1 - Lunch & Learn CRTC Reporting May 17, 2012. - 2 - CRTC Reporting Canadian Radio-television and Telecommunications Commission (CRTC) created by Parliament

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Text of 1 - Lunch & Learn CRTC Reporting May 17, 2012. - 2 - CRTC Reporting Canadian Radio-television...

Slide 1Canadian Radio-television and Telecommunications Commission (CRTC)
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Broadcasting Act (http://laws-lois.justice.gc.ca/eng/acts/B-9.01/)
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CRTC Reporting
Broadcasting Act
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CRTC Reporting
Broadcasting Act
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CRTC Reporting
Broadcasting Act
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CRTC Licence Renewals
Broadcasters must renew their licences, for each TV and radio station, as well as for Specialty channels, on a regular basis. In the past, the licence terms were for seven years; however, the most recent licence renewals have been for five years. CBC/Radio-Canada’s licences were last renewed in 2000; for multiple reasons, the CRTC has granted ‘administrative renewals’ since 2007.
A licence renewal hearing was scheduled for CBC/Radio-Canada, to be held on September 12, 2011. We submitted the documentation required, including financial forecasts for five years, on May 19, 2011 and the submission was made public shortly thereafter, inviting comments from the public. The hearing was then suspended until June 2012, partly due to a request by the Quebec English-language Production Committee (QEPC), and supported by other groups, for the same data that had been available for the licence renewals for private English-language television broadcasters, held in April 2011. This included ‘Independent Production Reports’ that CBC/Radio-Canada did not have to file. On December 15th, 2011, CBC/Radio-Canada submitted ‘Independent Production Reports’ to the CRTC for the broadcast years that ended on August 31, 2009, 2010 and 2011. We expect that this report, which is prepared by the Network programming areas and Regulatory Affairs, will have to submitted by November 30th each year from now on.
On January 31, 2012, CBC requested that the existing timetable for its licence renewal process be postponed from the June 2012 date, stating that it would not have sufficient time to reflect on and operationalize its plans, given that its budget was expected to be announced late in March 2012, and that cuts in our funding were expected as a results of DRAP. The CRTC approved the request.
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CRTC Submissions due Nov 30th – on a Broadcast year basis
Each year, CBC/ Radio-Canada calculates the operating results for the broadcast year that started in September of the prior year and ended on August 31st , for the main services and for the specialty services, and submits the results using the templates provided by the CRTC:
for each radio licence (ER 50; FR 32): a portion of the operating results for the main services for each television licence (ETV 16; FTV 13): a portion of the operating results for the main services for each specialty service: the operating results relating to each service
We also prepare and submit: ‘Aggregate’ reports for the four main services: ETV, ER, FTV, and FR. New media reports (started with broadcast year that ended August 31, 2010): revenues and expenses related to New Media operations; and the list of our New Media Broadcasting undertakings (websites) that provide audio and/or audio-visual programs to end-users. Audited or reviewed financial statements for each of the Specialty services.
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CRTC Reporting
CRTC Forms
The Commission, in various regulations, decisions, orders and notices, introduced requirements on the Canadian broadcasting and telecommunications industries to help fulfill its mandates under the Broadcasting Act. Some of these requirements involve the filing of data to the Commission on a regular basis. To reduce the regulatory burden on the industry, the Commission introduced its web-based Data Collection System (DCS) in January 2004. DCS employs a secure, encrypted connection between the entity submitting data and the Commission thereby improving the accuracy and timeliness of the data submitted. Statistics Canada also collects information from broadcasting and telecommunications services industries to produce national and regional estimates of activity for these industries. These estimates become an integral part of our national and provincial economic accounts. In order to avoid duplication, minimize response burden, make more efficient use of resources and promote coherence of the Canadian statistical system, the Commission and Statistics Canada have agreed to integrate the requirements of both organizations for industry and market statistics into this data collection. As a result, Statistics Canada will no longer conduct separate Annual Survey of Telecommunications and Annual Survey of Internet Service Providers.
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Component
Action
Corporate
Corporate calculates the average FTEs, by component and by cost centre, using the standard hierarchy as at August 31st. We also calculate the impact of class 6 labor transfers from the Ottawa Production centre to each main service.
Networks
Networks calculate the impact of class 6 labor transfers from their ‘plants’ to their programs to arrive at the FTEs by licence.
Networks
Networks provide the revenues, expenses, and FTEs by station, for each component and specialty service, at the network level, on a broadcast year basis. The revenues and expenses are essentially the budgetary revenues and expenses, plus non-budgetary Annual leave and TOIL.
Corporate
We calculate the revenues, expenses, and FTEs for each corporate component (see list on the following slide), on a budgetary basis, plus non-budgetary Annual leave and TOIL, on a broadcast year basis.
Corporate
For non-budgetary adjustments affecting the broadcast year results, we use the reconciliations prepared by the Corporate Reporting group, between budgetary results and financial statement results. We must use the fiscal year end reconciliation items (April to March), subtract the August year-to-date reconciliation items from the prior year, and add the August year-to-date reconciliation items from the current year.
Corporate
We allocate the corporate revenues and expenses, budgetary and non-budgetary, to the components based on historical percentages (58% English Services; 42% French Services). Those results are then allocated between each service using percentages (ES=ETV 80%; R1 19%; R2 1%) (FS=SRC 82%; PC 15%; EM 3%). Those results are then prorated among stations using the total network costs per station.
Corporate
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Salary Information (Full-Time Equivalents FTEs)
For each radio, TV, or specialty service licence, the CRTC asks for the following Salary and Benefits information: ‘Total Remuneration’ for each expense bucket, ie. Programming and Production, Technical, Sales and Promotion, and Administration and General, as well as the ‘Average Number of Employees’.
For the broadcast year ending August 31, 2011, we adopted the following methodology to calculate the ‘Average number of employees’, using Excel and Access: Obtained payroll information for all 26 pay periods paid during the broadcast year. Assigned the ‘budget cost centre’ from SAP to the employees charged to projects or WBSs, in order to get to the average FTEs based on the cost centre hierarchy for that broadcast year. For full-time employees, determined an FTE by the number of pay periods they were part of, for example, a full-time person who has worked all year long would show up in 26 pays; therefore, by dividing the number of pays for that person by 26, we get 1 FTE. For part-time employees, determined an FTE by the number of hours worked in a pay period divided by the normal number of hours; the answer for each pay period is then divided by 26 pays. Consequently, if a person only worked 20 hours of one pay period in one year, they would represent .53 (20/37.5) of an FTE for that pay period, and .021 for the whole year.
Corporate calculates the impact of class 6 transfers, from Ottawa Production Centre and the Mobile Division, to assign FTEs to the proper component.
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February 15th, 2012
Regulatory Affairs sent CBC/ Radio-Canada’s submission in response to the CRTC’s Broadcast Notice of Consultation 2011-788 Review of the Local Programming Improvement Fund. The networks were involved in preparing the submission.
April 16th, 2012
CBC/ Radio-Canada appeared at the consultation hearing for the ‘Review of the Local Programming Improvement Fund’.
April 25th, 2012
Regulatory Affairs sent a response to CRTC, relating to the questions that were brought up during the consultation hearing, including some financial information that was requested.
Next steps
We will deal with the CRTC decisions that will come out of the review.
Advertising and sponsorship
April 4th, 2012
Part of the DRAP measures that were announced by the President during the town hall on April 4th, 2012 involved the addition of advertising and sponsorship on Radio 2 and Espace Musique stations. A submission was made to CRTC on April 20th, 2012, including financial estimates of the impact over the next three years, seeking a change to our existing licences to allow advertising on those stations.
Next steps
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Licence Renewal
Now that the federal budget was announced in March 2012, and we have a three year plan to deal with DRAP, we expect the CRTC to propose a new date for the hearing to renew our licences. We will have to prepare a revised licence renewal submission to the CRTC once a date is announced.
System Improvements
Ongoing
Nathalie Forgette’s group is working on a project to provide COPB details, by cost element 5 and 6, in order to help us with the CRTC exercise. We hope to test the data and have the information available before the broadcast year ends on August 31, 2012.
Future projects
Automate the CRTC reporting process further, through assessments or special GL, etc…
Other important deadlines
July – Aug 2012
Hold LPIF planning meetings with Deloitte/ networks for broadcast year 2011-2012.
Sep – Nov 2012
Work on the annual CRTC submission for the broadcast year 2011-2012.
fromto
1
3Local time sales$0$0
4National time sales$0$0
Fringe benefits
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have supplied on this form.
Technical
Total
Average number of employees (the typical weekly average of full & equivalent part time employees)
Programming and production
Provision for income taxes (recovery)
Net income (loss) after income taxes
Total Remuneration
Salaries and wages (include sales commissions and talent fees paid to employees), fringe benefits and directors fees
Programming and production
Operating Income (loss)
Interest Expense
Less: Amortization of goodwill, organization and start-up expenses
Gain (loss) from disposal of fixed assets, investments, etc.
Expenses
Total
Does the Licensee operate an AM and FM undertaking in this market and <br>are the combined revenues of these two undertakings in
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
If the information in this return is for a period other than 12 months, please indicate
Revenue
2Does your Internet broadcast activity generate revenues distinct from your on-air broadcast activity?
3If yes, are the revenues from the internet broadcast activity included in the annual return of this undertaking?
Language of broadcastPercent of time devoted to serving your audience
4English0.00
5French0.00
6Native0.00
7Other0.00
8Indicate the type of music format that best identifies your station
9Radio station format
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
Radio - Language - Format - Type
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have
Number of times alcohol advertising was aired
Number of times alcohol education messages were aired
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have supplied on this form.
Programming and Production ExpensesNewsTotal
5Music licence fee (payments to SOCAN) $0
6Neighboring Rights (payments to Re:Sound) $0
7Reproduction of musical works (payments to CSI) $0
8Reproduction of musical works (payments to AVLA/SOPROQ) $0
9Reproduction of musical works (payments to ArtistI) $0
10Music recordings and transcriptions $0
11 $0
14Other network expenses $0
16Staff talent fees $0
18 $0
Technical Expenses
19 $0
21Remuneration $0
24Sales commission representatives - (non-staff) $0
25Sales commission paid to staff$0
26Other sales and promotion expenses $0
27Remuneration $0
30 $0
32Professional services $0
36Other administration and general expenses $0
37 $0
39Total all expenses $0
Remuneration (incl. directors fees)
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have supplied on this form.
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
Canadian content development (CCD) initiative
Transmitter, studio, parts, tapes, supplies, technical consultant services, technical repairs and maintenance, and other technical costs
Cost of premises (rent, repairs and maintenance, insurance, utilities, etc.)
fromto
1
3Local time sales (excluding infomercials)$0$0
Contra or other <br>non-monetary transactionsNational SalesRegional Sales
4National time sales (excluding infomercials)$0$0$0$0
5$0
6$0$0$0
CanadianNon-Canadian
7$0$0$0
8$0
9$0
37Fringe benefits$0
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have
Sales and promotion
Administration and general
Total
Average number of employees (the typical weekly average of full & equivalent part time employees)
Provision for income taxes (recovery)
Net income (loss) after income taxes
Salaries and wages (include sales commissions and talent fees paid to employees), <br>fringe benefits and directors fees
Programming and production
Interest Expense
Less: Amortization of goodwill, organization and start-up expenses
Gain (loss) from disposal of fixed assets, investments, etc.
Net income (loss) before income taxes
Programming and production
Expenses
Sales/syndication of programs
Production services sold
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
If the information in this return is for a period other than 12 months, please indicate
Programming ExpensesSportsOthersTotal
3Programs acquired from other stations$0$0$0$0$0$0$0$0$0$0$0
4Programs of network origination$0$0$0$0$0$0$0$0$0$0$0
6Special recognition programs$0$0$0$0$0$0$0$0$0$0$0
8$0$0$0$0$0$0$0$0$0$0$0
11Loss on equity Investment/loan principal - Canadian programs$0$0$0$0$0$0$0$0$0$0$0
12Other$0$0$0$0$0$0$0$0$0$0$0
13$0$0$0$0$0$0$0$0$0$0$0
14$0$0$0$0$0$0$0$0$0$0$0
16Program inventory write-downs - programs not telecast$0$0$0$0$0$0$0$0$0$0$0
17Other$0$0$0$0$0$0$0$0$0$0$0
19$0$0$0$0$0$0$0$0$0$0$0
Amounts included in total Canadian programs telecast for:
Amounts included in total other programming for:
Amounts included in total non-Canadian programming for:
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have supplied on this form.
CANADIAN PROGRAMMING EXPENSES
Canadian programs telecast
TOTAL CANADIAN PROGRAMMING EXPENSES
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
InformationMusic and Entertainment
13Music licence fee (payments to SOCAN)$0
14Payments to network for programs$0
15
Other network expenses <br>(If greater than 10% of Total Programming Expenses, please provide details in space
below)$0
17 $0
18 $0
19 $0
20 $0
21 $0
22 $0
24 $0
25 $0
26 $0
27 $0
28 $0
29 $0
30 $0
31 $0
32 $0
33 $0
34 $0
35 $0
36 $0
37 $0
1) If Greater Than 10% of Total Production Expenses, please provide details.
2) If Greater Than 10% of Total Programming Expenses, please provide details.
Other administration and general expenses
Remuneration (incl. directors fees)
Total all expenses
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have supplied on this form.
Cost of premises (rent, repairs and maintenance, insurance, utilities, etc.)
Real estate and business tax
Professional services
Remuneration
Total
Line, microwave or satellite charges
Remuneration
Total
Infomercials
Other (Including music license fees)(if greater than 10% of Total Production Expenses, please provide details in space below)
Total Production Expenses
Amounts included in Grand Total Programming and Production expenses for:
Technical Expenses
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
Cost of program sales/syndication Canadian
Cost of program sales/syndication non-Canadian
Cost of production services sold
Number of times alcohol advertising was aired
Number of times alcohol education messages were aired
Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics Act
Filed in Confidence
Please use the space provided below to supply any comments, explanations, methodological notes, qualifiers or other important information about the data you have supplied on this form.
Corporate Allocation
80% Building
D - Sales & Promotion Expenses
VP People Culture
Financing Revenues
Taxes