Public Broadcasting Service

“The executive committee of the pbs board of directors has the authority to act on behalf of the board between meetings of the board as needed, and shall timely report such actions to the full board. The executive committee consists of the board chair, the pbs president, the chairs of the four standing committees of the board, and three to five at-large directors to be selected by the board chair. All appointments to the executive committee shall be approved by a majority of the board.”

“Significant changes to governing documents the pbs board of directors approved at its june 14, 2014 session, a series of amendments to the corporations by-laws. The governance counsel confirmed that the amendments conform to appicable law and best practices, and that none required a vote of the pbs membership, per pbs' governance documents. In summary: with respect to members, amendments were approved to recognize the authority of the board to establish, interpret and enforce membership criteria and policies; to reflect the current practice of exempting an "eligible successor organization" that acquires a member station's license from having to demonstrate that an area is unserved; to provide a default rule for designation of member representatives; and to provide more time for transition in a market upon the resignation of a member, to ensure that the market remains served. With respect to member meetings, amendments were approved to provide greater rights for members by ensuring a minimum of two weeks for the submission of petitions and to expand the rules around proxies at meetings. With respect to the board of directors and meetings, amendments were approved to provide for 1) tie-breaking procedures for professional director elections; 2) diversity guidelines for the selection of general director candidates; 3) removal of a director for "cause" , but only after consideration by the board regarding disciplinary action; 4) four, rather than two , one-year terms for the board chair; 5) board meetings by phone in compelling circumstances; 6) action by unanimous written consent; and 7) board approval of all committee assignments. Also approved was a provision requiring pbs to maintain d&o insurance coverage to protect its directors and officers against liability arising from their service to pbs.”

“Pbs' member stations are fcc non-commercial, educational licensees that receive and distribute pbs programming in local markets after having applied for and been granted membership status in pbs by the pbs board.”

“Members of the organization elect 14 of the 27 members of the governing body.”

“Any amendment of the by-laws altering the classes or number of members or directors, or the terms of directors, shall also require the approval of a majority of the members voting.”

“The process for reviewing the pbs form 990 prior to filing includes a review by the ceo, coo, cfo/treasurer, general counsel and the executive committee of the board. In addition, copies of the form are provided to the full board for review prior to filing.”

“In accordance with the pbs conflict of interest policy, all pbs staff at the director level and above are required to complete annually a conflict of interest form. These forms are distributed, collected, retained and reviewed by the office of the pbs general counsel. With respect to the pbs board, officers and directors complete annually a conflict of interest form and these forms are reviewed by the nominating and corporate governance committees and the corporate secretary. In accordance with the policy, potential conflicts arising during the year are reviewed by the chairman of the board, the chair of the nominating and corporate governance committees, and/or the corporate secretary.”

“The executive committee of the board is responsible for executive compensation. The executive committee retains an independent executive compensation expert who supplies comparability data on the ceo and all key employees and submits a written opinion on compliance with intermediate sanctions. The executive committee makes a recommendation on ceo compensation to the full board, which approves any such compensation. The ceo is recused from any discussion and vote. The executive committee approves compensation of the chief operating officer, the chief financial officer, the corporate secretary (chief legal officer) and the chief technology officer.”

“Joint venture policy/ procedure: pbs has not adopted a written policy or procedure regarding joint venture participation, but extensively examines any potential participation in joint venture arrangements in accordance with applicable federal tax law. Pbs takes measures to safeguard the organization's exempt status with respect to any business venture, as part of its due diligence in evaluating new opportunities.”

“Pbs governing documents and conflict of interest policy are made available upon request. Financial statements are available on pbs' website.”

“(CONTINUED FROM PAGE 1) THE PUBLIC BROADCASTING SERVICE (PBS) IS A MEMBERSHIP ORGANIZATION THAT IN PARTNERSHIP WITH ITS MEMBER STATIONS SERVES THE AMERICAN PUBLIC WITH CONTENT AND SERVICES OF THE HIGHEST QUALITY, USING MEDIA TO EDUCATE, INSPIRE, ENTERTAIN AND EXPRESS THE DIVERSITY OF PERSPECTIVES. PBS EMPOWERS INDIVIDUALS TO ACHIEVE THEIR POTENTIAL AND STRENGTHENS THE SOCIAL, DEMOCRATIC AND CULTURAL HEALTH OF THE UNITED STATES. Form 990, Part I, Line 5 and Part V, Line 2a: THE TOTAL NUMBER OF PBS EMPLOYEES WHO RECEIVED A 2014 FORM W-2 FROM THE FILING ORGANIZATION WAS 574.”

“Member services represents other services provided in support of pbs' member stations, including digital products and services, development, and copyright administration. Expenses $9,707,696 including grants of $1,337,465 revenue $42,929,452 educational grants represents activity related primarily to grants received from the corporation for public broadcasting. Expenses $8,808,186 including grants of $4,658,288 revenue $1,120,893 ventures - represents activities associated with the sale of dvds, digital content, and program-related products that are sold to educational institutions, libraries, businesses, government agencies and individuals; the licensing, development, and distribution of interactive products, such as online video games; the licensing of video content to commercial online and mobile service providers; and online sponsorship activities. Expenses $4,393,339 including grants of $0 revenue $38,291,737 royalties - represents amounts distributed to public broadcasting stations and producers from licensing fee revenues received from cable and satellite providers, and administrative costs associated with the oversight of these activities. Revenues are dervived from the exploitation of some digital products and course materials developed for educators. Expenses $1,986,933 including grants of $0 revenue $2,855,827”

“Audit of financial statements: pbs undergoes an annual audit as a consolidated entity and therefore is not audited on an individual basis. Audits are conducted by an independent accounting firm.”

“FUNDRAISING COSTS REFLECTED IN PART IX, COLUMN D, RELATE TO TIME SPENT BY STAFF IN WRITING PROPOSALS AND SOLICITING SUPPORT FROM GOVERNMENT AGENCIES. THE ASSOCIATED REVENUE AS A RESULT OF THESE EFFORTS IS REFLECTED IN PART VIII, LINE 1e, GOVERNMENT GRANTS AND / OR CONTRIBUTIONS. PBS DOES NOT INCUR FUNDRAISING EXPENSES RELATED TO GRANTS AND / OR CONTRIBUTIONS LISTED IN PART VIII, LINE 1f. THE AMOUNTS IN THIS LINE ITEM ARE MADE UP OF THE FOLLOWING: CORPORATION FOR PUBLIC BROADCASTING (CPB): THE PUBLIC BROADCASTING ACT REQUIRES THAT A SET PERCENTAGE OF THE CPB FEDERAL APPROPRIATION BE USED FOR NATIONAL PUBLIC TELEVISION PROGRAMMING, PURSUANT TO A PLAN DEVELOPED BY CPB IN CONSULTATION WITH PBS AND SIMILAR ORGANIZATIONS, WHICH IS REGULARLY REVIEWED AND ADJUSTED. PBS DOES NOT SOLICIT THESE FUNDS FROM CPB. DONATED BROADCAST RIGHTS: THESE ARE CONTRIBUTIONS FOR CONTENT DEVELOPMENT MADE BY ORGANIZATIONS DIRECTLY TO PRODUCERS. THESE FUNDS ARE NOT SOLICITED BY PBS. OTHER CONTRIBUTIONS: PBS FOUNDATION SOLICITS FUNDS THROUGHOUT THE COUNTRY IN SUPPORT OF PUBLIC BROADCASTING. THE MAJORITY OF THESE FUNDS ARE THEN GRANTED TO PBS TO ENSURE PBS' CONTINUED EXCELLENCE AND TO PROMOTE AND ENHANCE OUTSTANDING PUBLIC BROADCASTING PROGRAMS AND SERVICES.”

“Other changes in net assets: adj related to investment in subsidiary: pbse inc. $ 41,397 return of grant funds (prior year) 10,224 miscellaneous adjustments 3,608. --------- total form 990, part xi, line 9 $ 55,229 =========”

“There have been no changes during the year in the process for oversight of the audit of the organization's consolidated financial statements.”