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AFMD-85-31 1 (1984-12-21)

handle is hein.gao/gaobabnon0001 and id is 1 raw text is: UNITED STATES GENERAL ACOUNTING OFFICE 6 WASHINGTON, D.C. 2054 ACCOUNRSING AND FINANCIAL DECEMBER 21, 1984 MANAGEMEN'ST DIVISION B-214761 The Honorable George M. O'Brien Rouse of Representatives Dear Mr. O'Brien: Subject: Corporation for Public Broadcasting's Oversight of Public Television (GAO/AFMD-85-31) This is in response to your letter of July 20, 1983, which requested that we report on the Corporation for Public Broad- casting's (CPB) oversight of public television entities that receive federal funds, particularly, the Public Broadcasting Service (PBS). Discussions with representatives of your office indicated a primary area of concern was the potential for a financial crisis occurring in public television similar to that which occurred at National Public Radio (NPR). CPB's oversight is perceived as an important preventative factor. SUMMARY In our opinion, the risk of a financial crisis jeopardizing public television service in a manner similar to that which oc- curred at NPR is minimal. (See enclosure I, p. 7.) At the time of NPR's crisis, NPR was the primary recipient of CPB's direct radio support; such support represented over half of NPR's total revenues. In addition, NPR provided significant services to public radio. Conversely, federal funds distributed by CPB as direct television support are spread among more than 250 public television entities, reducing the risk associated with concen- trated federal funds. Only 10 of these entities receive more than $I million and, in all but one case, this represents less than 30% of their overall revenue. Unlike NPR, PBS neither re- ceives a substantial part of its revenue from CPB, nor does it provide the same relatively large array of services to public television. Given this difference in relative risk, we believe that the oversight procedures presently described by CPR in re- lation to public television entities receiving federal funds are sufficient. (916880) 'r 7 /, n 1 126026

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