December 1998

We have completed a financial audit of the Wisconsin Educational Communications Board Radio Network for the year ended June 30, 1998. We performed the audit at the request of the Educational Communications Board to fulfill audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities to determine future funding levels.

The Educational Communications Board, which is an agency of the State of Wisconsin, operates a radio network of ten FM stations and one AM station, as well as a television network of five stations. The radio network received over $6 million in support and revenue during fiscal year 1997-98, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.

A new accounting standard requires governmental entities to include a note disclosure on their year 2000 readiness, which the Wisconsin Educational Communications Board Radio Network has included in its financial report. However, because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 or thereafter. As a result, we have qualified the independent auditor's report because, in our judgment, it is not possible to obtain sufficient audit evidence to support year 2000 disclosures. The qualification is not intended to raise concerns about the radio network's year 2000 readiness but, rather, to indicate that we do not believe it is possible to verify disclosures about its readiness.