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.”

“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 committee 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 committee, 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 executives at the "chief" level, including the chief operating officer, the chief financial officer, the general counsel (chief legal officer), the chief technology officer, and the chief digital & marketing officer.”

“JOINT VENTURE POLICY/ PROCEDURE: PBS HAS NOT ADOPTED A WRITTEN POLICY OR PROCEDURE SPECIFICALLY REQUIRING THE EVALUATION OF ITS PARTICIPATION IN JOINT VENTURES UNDER FEDERAL TAX LAWS BUT, PURSUANT TO THE BOARD OF DIRECTORS DELEGATION OF AUTHORITY RESOLUTION, THE APPROVAL OF THE BOARD OR AN AUTHORIZED COMMITTEE OF THE BOARD IS REQUIRED TO ENTER INTO ANY PARTNERSHIP OR SIMILAR Business ARRANGEMENT WITH THIRD PARTIES, WHICH FACILITATES THE BOARDS DUE DILIGENCE REGARDING TAX AND OTHER IMPLICATIONS OF THE TRANSACTION. IN ADDITION, THE BOARD HAS CREATED A BOARD ADVISORY COMMITTEE TO REVIEW AND MAKE RECOMMENDATIONS WITH RESPECT TO REVENUE GENERATING OPPORTUNITIES AND THE IMPACT ON PBS NONCOMMERCIAL MISSION.”

“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 2015 FORM W-2 FROM THE FILING ORGANIZATION WAS 583.”

“Member services represents other services provided in support of pbs' member stations, including digital products and services, development, and copyright administration. Revenues are derived from member station dues assessments. Expenses $10,061,698 including grants of $ 794,560 revenue $ 24,051,041 educational grants represents activity related primarily to grants received from the corporation for public broadcasting. Expenses $6,510,886 including grants of $ 2,245,521 revenue $ 349,623. 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 $ 4,704,206 including grants of $ 0 revenue $ 37,454,655. 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 $ 2,411,472 including grants of $ 0 revenue $ 3,003,132.”

“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: RETURN OF GRANT FUNDS (PRIOR YEAR) 14,807 MISCELLANEOUS ADJUSTMENTS 152,609 --------- TOTAL FORM 990, PART XI, Line 9 $167,416 =========”

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