Download ppt - - 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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Lunch & Learn

CRTC Reporting

May 17, 2012

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CRTC ReportingCanadian Radio-television and Telecommunications Commission (CRTC)

• created by Parliament in 1968 under the Canadian Radio-television and Telecommunications Commission Act. • reports to Parliament through the Minister of Canadian Heritage.• is vested with the authority to regulate and supervise all aspects of the Canadian broadcasting system, as well as the telecommunications services providers and common carriers that come under federal jurisdiction. •The CRTC’s powers in the area of broadcasting regulation derive from the Broadcasting Act, which states that:

•the Commission shall regulate and supervise all aspects of the Canadian broadcasting system with a view to implementing the broadcasting policy set out in subsection 3(1) (next few slides) and, in so doing, shall have regard to the regulatory policy set out in subsection (2).

•:Regulatory policy•(2) The Canadian broadcasting system should be regulated and supervised in a flexible manner that:

•(a) is readily adaptable to the different characteristics of English and French language broadcasting and to the different conditions under which broadcasting undertakings that provide English or French language programming operate;•(b) takes into account regional needs and concerns;•(c) is readily adaptable to scientific and technological change;•(d) facilitates the provision of broadcasting to Canadians;•(e) facilitates the provision of Canadian programs to Canadians;•(f) does not inhibit the development of information technologies and their application or the delivery of resultant services to Canadians; and•(g) is sensitive to the administrative burden that, as a consequence of such regulation and supervision, may be imposed on persons carrying on broadcasting undertakings.

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CRTC Reporting

Broadcasting Act (http://laws-lois.justice.gc.ca/eng/acts/B-9.01/)

•Broadcasting Policy for Canada (subsection 3(1)) says that:•a) the Canadian broadcasting system shall be effectively owned and controlled by Canadians;•(b) the Canadian broadcasting system, operating primarily in the English and French languages and comprising public, private and community elements, makes use of radio frequencies that are public property and provides, through its programming, a public service essential to the maintenance and enhancement of national identity and cultural sovereignty;•(c) English and French language broadcasting, while sharing common aspects, operate under different conditions and may have different requirements;• (d) the Canadian broadcasting system should:

•(iii) through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society, and•(iv) be readily adaptable to scientific and technological change;

•(e) each element of the Canadian broadcasting system shall contribute in an appropriate manner to the creation and presentation of Canadian programming;•(f) each broadcasting undertaking shall make maximum use, and in no case less than predominant use, of Canadian creative and other resources in the creation and presentation of programming, unless the nature of the service provided by the undertaking, such as specialized content or format or the use of languages other than French and English, renders that use impracticable, in which case the undertaking shall make the greatest practicable use of those resources;•(g) the programming originated by broadcasting undertakings should be of high standard;•(h) all persons who are licensed to carry on broadcasting undertakings have a responsibility for the programs they broadcast;

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CRTC Reporting

Broadcasting Act•(i) the programming provided by the Canadian broadcasting system should:

•(i) be varied and comprehensive, providing a balance of information, enlightenment and entertainment for men, women and children of all ages, interests and tastes,•(ii) be drawn from local, regional, national and international sources,•(iii) include educational and community programs,•(iv) provide a reasonable opportunity for the public to be exposed to the expression of differing views on matters of public concern, and•(v) include a significant contribution from the Canadian independent production sector;

•(j) educational programming, particularly where provided through the facilities of an independent educational authority, is an integral part of the Canadian broadcasting system;•(k) a range of broadcasting services in English and in French shall be extended to all Canadians as resources become available;•(l) the Canadian Broadcasting Corporation, as the national public broadcaster, should provide radio and television services incorporating a wide range of programming that informs, enlightens and entertains;•(m) the programming provided by the Corporation should:

•(i) be predominantly and distinctively Canadian,•(ii) reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions,•(iii) actively contribute to the flow and exchange of cultural expression,•(iv) be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities,•(v) strive to be of equivalent quality in English and in French,•(vi) contribute to shared national consciousness and identity,•(vii) be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose, and•(viii) reflect the multicultural and multiracial nature of Canada;

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CRTC Reporting

Broadcasting Act•(n) where any conflict arises between the objectives of the Corporation set out in paragraphs (l) and (m) and the interests of any other broadcasting undertaking of the Canadian broadcasting system, it shall be resolved in the public interest, and where the public interest would be equally served by resolving the conflict in favour of either, it shall be resolved in favour of the objectives set out in paragraphs (l) and (m);•(o) programming that reflects the aboriginal cultures of Canada should be provided within the Canadian broadcasting system as resources become available for the purpose;•(p) programming accessible by disabled persons should be provided within the Canadian broadcasting system as resources become available for the purpose;•(q) without limiting any obligation of a broadcasting undertaking to provide the programming contemplated by paragraph (i), alternative television programming services in English and in French should be provided where necessary to ensure that the full range of programming contemplated by that paragraph is made available through the Canadian broadcasting system;•(r) the programming provided by alternative television programming services should:

•(i) be innovative and be complementary to the programming provided for mass audiences,•(ii) cater to tastes and interests not adequately provided for by the programming provided for mass audiences, and include programming devoted to culture and the arts,•(iii) reflect Canada’s regions and multicultural nature,•(iv) as far as possible, be acquired rather than produced by those services, and•(v) be made available throughout Canada by the most cost-efficient means;

•(s) private networks and programming undertakings should, to an extent consistent with the financial and other resources available to them:

•(i) contribute significantly to the creation and presentation of Canadian programming, and•(ii) be responsive to the evolving demands of the public; and

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CRTC Reporting

Broadcasting Act•(t) distribution undertakings:

•(i) should give priority to the carriage of Canadian programming services and, in particular, to the carriage of local Canadian stations,•(ii) should provide efficient delivery of programming at affordable rates, using the most effective technologies available at reasonable cost,•(iii) should, where programming services are supplied to them by broadcasting undertakings pursuant to contractual arrangements, provide reasonable terms for the carriage, packaging and retailing of those programming services, and•(iv) may, where the Commission considers it appropriate, originate programming, including local programming, on such terms as are conducive to the achievement of the objectives of the broadcasting policy set out in this subsection, and in particular provide access for underserved linguistic and cultural minority communities.

•Further declaration•(2) It is further declared that the Canadian broadcasting system constitutes a single system and that the objectives of the broadcasting policy set out in subsection (1) can best be achieved by providing for the regulation and supervision of the Canadian broadcasting system by a single independent public authority.

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CRTC Reporting

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 30 th 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.

• Now that the federal budget was announced in March 2012, we expect the CRTC to propose a new date for a revised licence renewal submission to the CRTC.

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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.

• Since broadcast year 2010, some CBC/ Radio-Canada TV stations (ETV 8; FTV 12) have been eligible to receive some funding from the ‘Local Programming Improvement Fund’, created by the CRTC in 2008. The money for the Fund comes from a percentage of cable and satellite companies’ gross broadcasting revenues (1% originally; increased to 1.5% in 2011) and is distributed among eligible broadcasters through the following formula:

• One third is divided evenly among all eligible stations in anglophone and francophone markets; the remaining two thirds is divided so that 70% goes to anglophone markets and 30% to francophone markets, with these amounts allocated on the basis of average spending on local programming over three years by each eligible station.

• CBC/ Radio-Canada must submit financial reports of the LPIF revenues received and the LPIF eligible expenses for each eligible station, accompanied by LPIF qualitative reports prepared by the Networks / Regulatory Affairs, and the audit opinions from Deloitte for each LPIF station.

• In mid April 2012, CRTC held a public consultation to review the LPIF. The review will determine whether the Fund should be maintained, modified or cancelled. CBC/Radio-Canada participated in the hearing.

CRTC Reporting

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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.

• For each radio and television licence, for each Specialty Service, and for each Aggregate report, there are four or five CRTC forms to be entered in to the Data Collection System on the CRTC website. The following slides show sample forms for radio and television licences. The Specialty Service forms and Aggregate forms are similar in nature.

CRTC Reporting

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from to12 Station Location

Contra or other non-monetary transactions3 Local time sales $0 $04 National time sales $0 $05 $0

Canadian Non-Canadian

6 Sales/syndication of programs $0 $0 $0

7 $08 $09 $0

Type of revenue10 Other revenue $011 $0

12

13 $014 $015 $016 $017 $0

18 $019 $020 $021 $022 $023 $024 $025 $026 $0

27 $028 $029 $030 $031 $0

32 0.0033 0.0034 0.0035 0.0036 0.00

37 $0

TechnicalSales and promotionAdministration and generalTotal

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.

TechnicalSales and promotionAdministration and generalTotal

Average number of employees (the typical weekly average of full & equivalent part time employees)Programming and production

Net income (loss) before income taxesProvision for income taxes (recovery)Net income (loss) after income taxes

Total RemunerationSalaries and wages (include sales commissions and talent fees paid to employees), fringe benefits and directors feesProgramming and production

Operating Income (loss) Less: Depreciation (recorded in accounts)Interest ExpenseInvestments, interest and incidental broadcasting income (incl. rental income)Less: Amortization of goodwill, organization and start-up expensesGain (loss) from disposal of fixed assets, investments, etc.

ExpensesProgramming and productionTechnicalSales and promotionAdministration and generalTotal

Network Payments to station

Production services soldGovernment Grants & Parliamentary AppropriationCorporate Grants

Total

Does the Licensee operate an AM and FM undertaking in this market and are the combined revenues of these two undertakings in

Filed under the authority of the Broadcasting Information Regulations, 1993 and the Statistics ActFiled in Confidence

If the information in this return is for a period other than 12 months, please indicate

Revenue

Radio – Sample Form 1110

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Radio on the Internet1 Does this station broadcast live on the Internet?2 Does your Internet broadcast activity generate revenues distinct from your on-air broadcast activity?

3 If yes, are the revenues from the internet broadcast activity included in the annual return of this undertaking?

Language of broadcast Percent of time devoted to serving your audience4 English 0.005 French 0.006 Native 0.007 Other 0.00

8 Indicate the type of music format that best identifies your station9 Radio station format


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



Radio – Sample Forms 1120 and 1340

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Programming and Production Expenses News Total1 Salaries and wages $0 $02 Talent fees non-staff $03 News services $04 Royalties (excluding music licence fee) $05 Music licence fee (payments to SOCAN) $06 Neighboring Rights (payments to Re:Sound) $07 Reproduction of musical works (payments to CSI) $08 Reproduction of musical works (payments to AVLA/SOPROQ) $09 Reproduction of musical works (payments to ArtistI) $0

10 Music recordings and transcriptions $011 $012 Other production and programming costs $013 Payments to network for programs $014 Other network expenses $015 Total $0 $0

Amounts included in expenses above16 Staff talent fees $017 Talent fees paid to non-residents of Canada $018 $0

Technical Expenses19 $020 Line, microwave or satellite charges $021 Remuneration $022 Total $0

Sales and Promotion Expenses23 Audience and trade promotion, rating services $024 Sales commission representatives - (non-staff) $025 Sales commission paid to staff $026 Other sales and promotion expenses $027 Remuneration $028 Total $0

Administration and General Expenses

29Entertainment, travel, motor vehicle operating expenses, telephone, fax, computer services and office supplies $0

30 $031 Real estate and business tax $032 Professional services $033 Bad debt expenses $034 CRTC licence fees $035 Management services (non staff) $036 Other administration and general expenses $037 $038 Total $0

39 Total all expenses $0

Remuneration (incl. directors fees)



Amortization of syndicated programs, taped program services, etc.

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.)

Radio – Sample Form 1130

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from to1

2 Station Location

Revenue Contra or other non- monetary transactions3 Local time sales (excluding infomercials) $0 $0

Contra or other non-monetary transactions National Sales Regional Sales

4 National time sales (excluding infomercials) $0 $0 $0 $05 $0

Local Time Sales National Time Sales6 $0 $0 $0

Canadian Non-Canadian7 $0 $0 $08 $09 $0

10 Local Programming Improvement Fund $0Type of revenue

11 Other revenue $012 Total $0

13 $014 $015 $016 $017 $0

18 $019 $020 $021 $022 $023 $024 $025 $026 $0

Total Remuneration

27 $028 $029 $030 $031 $0

32 Programming and production 0.0033 Technical 0.0034 Sales and promotion 0.0035 Administration and general 0.0036 Total 0.00

37 Fringe 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 promotionAdministration and generalTotal

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), fringe benefits and directors feesProgramming and productionTechnical

Less: Depreciation (recorded in accounts)Interest ExpenseInvestments, interest and incidental broadcasting income (incl. rental income)Less: Amortization of goodwill, organization and start-up expensesGain (loss) from disposal of fixed assets, investments, etc.Net income (loss) before income taxes

Programming and productionTechnicalSales and promotionAdministration and generalTotal

Operating Income (loss)

Government grants and parliamentary appropriation

Expenses

Network Payments to stations

Infomercials

Sales/syndication of programsProduction services sold


If the information in this return is for a period other than 12 months, please indicate

TV – Sample Form 1210

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Programming Expenses Sports Others Total

NewsLong Form

DocumentaryOther

Information Drama Music/ Variety

Game Shows

Human Interest (excl. Award

Shows)

Award Shows (not incl. in

Human Interest)Category 1 2b 2a, 3 to 5 6 7 8, 9 10 11 12 to 15

1 Station's production (incl. station contribution to cooperative productions) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $02 Programs produced by an affiliated production company $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $03 Programs acquired from other stations $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $04 Programs of network origination $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $05 Programs acquired from independent producers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $06 Special recognition programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $07 Other Canadian programs from any other source $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $08 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

9 Program inventory write-downs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $010 Script and concept development (programs not telecast) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $011 Loss on equity Investment/loan principal - Canadian programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $012 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $013 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

14 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

15 Non-Canadian programming expenses - Programs telecast $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $016 Program inventory write-downs - programs not telecast $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $017 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $018 Total non-Canadian programming expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

19 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

20 Canadian Media Fund credit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

21 Close captioning $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $022 Dubbing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $023 Program development $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $024 Children's programming $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $025 Ownership transfer tangible benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $026 Described video $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

27 Ownership transfer tangible benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

28 Dubbing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

NON-CANADIAN PROGRAMMING EXPENSES

TOTAL PROGRAMMING EXPENSES - CANADIAN & NON-CANADIAN

Amounts included in total Canadian programs telecast for:

Amounts included in total other programming for:

Amounts included in total non-Canadian programming for:


CANADIAN PROGRAMMING EXPENSESCanadian programs telecast

Total Canadian programs telecast

Other Canadian programming expenses:

Total other Canadian programming expenses

TOTAL CANADIAN PROGRAMMING EXPENSES


Information Music and Entertainment


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1 $0

Production Expenses2 $03 $04 $05 $06 $07 $08 $0

9 Remuneration $010 Talent fees non-staff $011 News services $012 Royalties (excluding music licence fee) $013 Music licence fee (payments to SOCAN) $014 Payments to network for programs $0

15Other network expenses (If greater than 10% of Total Programming Expenses, please provide details in space below) $0

16 Talent fees paid to non-residents of Canada $0

17 $018 $019 $020 $0

21 $022 $023 Sales commission paid to staff $024 $025 $026 $0

27 $028 $029 $030 $031 $032 $033 $034 $035 $036 $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 expensesRemuneration (incl. directors fees)Total

Total all expenses


Cost of premises (rent, repairs and maintenance, insurance, utilities, etc.)Real estate and business taxProfessional servicesBad debt expensesCRTC licence feesManagement services (non staff)

Sales commission representatives - (non-staff)

Other sales and promotion expenses RemunerationTotal

Administration and General ExpensesEntertainment, travel, motor vehicle operating expenses, telephone, fax, computer services and office supplies

Transmitter, studio, parts, tapes, supplies, & and other tech costsLine, microwave or satellite chargesRemunerationTotal

Sales and Promotion ExpensesAudience and trade promotion, rating services

Infomercials Other (Including music license fees)(if greater than 10% of Total Production Expenses, please provide details in space below)Total Production ExpensesGrand Total- Programming and Production Expenses

Amounts included in Grand Total Programming and Production expenses for:

Technical Expenses


Total programming expenses Canadian and Non-Canadian

Cost of program sales/syndication CanadianCost of program sales/syndication non-CanadianCost of production services sold


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Number of times alcohol advertising was aired

Number of times alcohol education messages were aired




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CRTC Reporting – Annual process

Component ActionCorporate 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 We consolidate the network results and the corporate allocations, by station, and balance the overall net results to the Financial statement results for the broadcast year.

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Corporate Allocation

NOTES

A - Revenus

Operating appropriation

Deferred capital funding

Corporate revenues

B - Programming and Production

80% MTS excluding T&D, TSB

80% Building

C - Technical Expenses

T&D , OPC and Telesat lease

D - Sales & Promotion Expenses

Audience Rating

Merchandising

E - Adm & General Expenses

Office of the Chairperson

Corporate Priorities

President Office

VP and Chief Financial Office

VP People Culture

Regulatory Affairs

Journalism Policy and OMBUDSMAN

Mobile Division

Corporate reserve

Research

Corporate Communication

General Counsel & Corp Sec.

Galaxie

International Relations

Corporate Allocation

NOTES

F - Other

Amortization

Interest Expense (TBC and Telesat)

Financing Revenues

Gain (loss) from disposal of fixed assets, investments, etc…

Taxes

II - Allocation

Corporate revenues and expenses are allocated based on the

percentages used in the licence renew al exercise, and then

prorated among stations using the total netw ork costs per station.

CRTC Reporting – Corporate Allocation

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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.

• Networks calculate the impact of class 6 transfers to assign FTEs from ‘plant’ type cost centres to the proper station, based on the programs worked on. FTEs in network support services cost centres (Finance & Admin, Communications, etc…) are allocated to stations in the same proportions as were used to allocate the costs.

CRTC Reporting

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Upcoming CRTC issues

Review of the LPIF

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 on Radio 2 and Espace Musique

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 20 th, 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 We will deal with the CRTC decisions that will come out after their review of our submission.

CRTC Reporting

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CRTC Reporting

Project StatusLicence 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.