WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEESOF THE UNIVERSITY OFPENNSYLVANIA
Financial Statements
June 30, 2023 and 2022

WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA
June 30, 2023 and 2022
CONTENTSINDEPENDENT AUDITORS' REPORTFINANCIAL STATEMENTS
Statements of Financial Position
Statements of Activities

1
2-3

Statements of Functional Expenses

4

Statements of Cash Flows5

Notes to Financial Statements

6-16

Audit & Accounting | Tax Strategies | Business Advisory
Technology Solutions | Human Capital Resources

Independent Auditors' Report
The Community Advisory Board of
WXPN-FM Radio Station
Licensed to the Trustees of
the University of Pennsylvania
Philadelphia, Pennsylvania
OpinionWe have audited the financial statements of WXPN-FM Radio Station Licensed to the Trustees of
the University of Pennsylvania, which comprise the statements of financial position as of June 30,2023 and 2022, and the related statements of activities, functional expenses, and cash flows forthe years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of WXPN-FM Radio Station Licensed to the Trustees of the University ofPennsylvania, as of June 30, 2023 and 2022, and the changes in its net assets and its cash flows forthe years then ended in accordance with accounting principles generally accepted in the UnitedStates of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the UnitedStates of America (GAAS). Our responsibilities under those standards are further described in
the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of WXPN-FM Radio Station Licensed to the Trustees of the
University of Pennsylvania and to meet our other ethical responsibilities, in accordance with therelevant ethical requirements relating to our audits. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter – Change in Accounting Principle
As discussed in Note 1 to the financial statements, in 2023, the entity adopted Financial
Accounting Standards Board Accounting Standards Codification 842, Leases. Our opinion is not
modified with respect to this matter.

100 Witmer Road, Suite 350, Horsham, PA 19044-2369 | 215-441-4600 | fax: 215-672-8224 | www.kmco.com

Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statementsin accordance with accounting principles generally accepted in the United States of America, andfor the design, implementation, and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there areconditions or events, considered in the aggregate, that raise substantial doubt about WXPN-FM
Radio Station Licensed to the Trustees of the University of Pennsylvania's ability to continue as agoing concern for one year after the date that the financial statements are issued.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditors' report that includes our opinion. Reasonable assurance is a high level of assurance but
is not absolute assurance and therefore is not a guarantee that an audit conducted in accordancewith GAAS will always detect a material misstatement when it exists. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS, we:xExercise professional judgment and maintain professional skepticism throughout theaudit.

x

Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts anddisclosures in the financial statements.

x

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of WXPN-FM Radio Station Licensed to theTrustees of the University of Pennsylvania's internal control. Accordingly, no such
opinion is expressed.

x

Evaluate the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.

x

Conclude whether, in our judgment, there are conditions or events, considered in theaggregate, that raise substantial doubt about WXPN-FM Radio Station Licensed to theTrustees of the University of Pennsylvania's ability to continue as a going concern for areasonable period of time.

We are required to communicate with those charged with governance regarding, among othermatters, the planned scope and timing of the audit, significant audit findings, and certain internal
control–related matters that we identified during the audit.

Horsham, Pennsylvania
November 27, 2023

WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEES OF
THE UNIVERSITY OF PENNSYLVANIA
STATEMENTS OF FINANCIAL POSITIONJUNE 30, 2023 AND 2022
2023

2022

AssetsCurrent Assets$

Cash and cash equivalents held by the University of Pennsylvania
Memberships receivable, net
Contributions receivable, net
Grants receivable
Underwriting receivables, net
Other accounts receivable, net
Prepaid expenses
Total Current Assets
Other Assets
Right-of-use asset - operating
Memberships receivable, net
Contributions receivable, net
Land
Equipment, net of accumulated depreciation
Intangible Assets
Total Other Assets$

Total Assets

4,131,057 $
21,825
146,850
378,874
13,781
149,819
4,842,206

3,637,604
13,331
201,386
110,500
352,81127,036
10,083
4,352,751

3,204,922
35,10489,095892,521
4,686,047
8,907,689

2,066
47,50789,095
1,032,851
4,686,047
5,857,566

13,749,895 $

10,210,317

Liabilities and Net Assets
Current Liabilities
Lease liability - operating$

565,491 $-Accounts payable and accrued expenses
Deferred rent
Note payable
Promotional underwriting liability
Deferred revenue
Total Current Liabilities

416,941
127,375
178,734
1,288,541

461,422
144,252
50,000102,125
196,300
954,099

Other Liabilities
Lease liability - operating
Promotional underwriting liability

2,808,722
100,000

150,000

Total Other Liabilities
Total Liabilities

2,908,722
4,197,263

150,000
1,104,099

Net Assets
Without donor restrictions
With donor restrictions

8,958,321
594,3118,482,813
623,405

Total Net Assets

9,552,632

9,106,218

13,749,895 $

10,210,317$

Total Liabilities and Net Assets

See accompanying notes to the financial statements-1-

WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEES OF
THE UNIVERSITY OF PENNSYLVANIA
STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2023
Without Donor
Restrictions
Support and Revenue
Memberships and contributions
Underwriting
GrantsIndirect support from the University of Pennsylvania
Resource transfer from the University of Pennsylvania
Direct support from the University of Pennsylvania
Other revenue
Net assets released from restrictions
Satisfaction of program restrictions
Expiration of time restrictions$

5,239,516
3,549,823
619,066
305,609
176,559
27,953
943,942

With Donor
Restrictions

$

Total

173,267
316,477-$

5,412,783
3,549,823
935,543
305,609
176,559
27,953
943,942

218,024
300,814(218,024)(300,814)-

Total Support and Revenue

11,381,306(29,094)

11,352,212

Operating Expenses
Program services:
Programming and production
Program information
Broadcasting

3,875,481
2,131,605
782,975-

3,875,481
2,131,605
782,975

Total Program Services

6,790,061-

6,790,061

2,917,902
1,197,835-

2,917,902
1,197,835

Total Support Services

4,115,737-

4,115,737

Total Program and Support Services

10,905,798-

10,905,798

475,508(29,094)

446,414

8,482,813

623,405

9,106,218

Support services:
Membership, underwriting and grant solicitation
General and administrative

Changes in Net Assets
Net Assets, beginning of year
Net Assets, end of year$

8,958,321$

594,311$

9,552,632

See accompanying notes to the financial statements-2-

WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEES OF
THE UNIVERSITY OF PENNSYLVANIA
STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2022
Without Donor
Restrictions
Support and Revenue
Memberships and contributions
Underwriting
GrantsIndirect support from the University of Pennsylvania
Resource transfer from the University of Pennsylvania
Direct support from the University of Pennsylvania
Other revenue
Net assets released from restrictions
Satisfaction of program restrictions
Expiration of time restrictions$

5,244,095
3,266,802
296,270
261,398
173,441
14,052
744,333

With Donor
Restrictions

$

Total

239,868
292,950-$

5,483,963
3,266,802
589,220
261,398
173,441
14,052
744,333

313,556
281,431(313,556)(281,431)-

Total Support and Revenue

10,595,378(62,169)

10,533,209

Operating Expenses
Program services:
Programming and production
Program information
Broadcasting

3,380,298
1,774,234
733,839-

3,380,298
1,774,234
733,839

Total Program Services

5,888,371-

5,888,371

2,620,076
1,299,374-

2,620,076
1,299,374

Total Support Services

3,919,450-

3,919,450

Total Program and Support Services

9,807,821-

9,807,821

787,557(62,169)

725,3887,695,256

685,574

8,380,830

Support services:
Membership, underwriting and grant solicitation
General and administrative

Changes in Net Assets
Net Assets, beginning of year
Net Assets, end of year$

8,482,813$

623,405$

9,106,218

See accompanying notes to the financial statements-3-

WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA
STATEMENTS OF FUNCTIONAL EXPENSESYEARS ENDED JUNE 30, 2023 AND 2022

Program Services
ProgramInformation
Broadcasting

Programming &Production
Salaries & Benefits
Salaries
Employee Benefits$

1,649,513
512,2022,161,715$

767,564
229,164
996,728$

179,962
58,361
238,323

Total Program
Services

General &Administrative$$

2,597,039
799,727
3,396,766

736,774
233,511970,285

Fundraising$

1,560,363
497,6112,057,974

Total Expenses
FYE23$

4,894,176
1,530,849
6,425,025

Activities

99,161141,070
395,989
34,817
632,858
208,169
201,702

TravelSupplies
Rentals
Communication
Services
Operations
Cost of Direct Benefit to Donors (premiums)
Depreciation
In-Kind
Total Functional Expenses$

3,875,481

41,257383,751
53,99849,951
486,971
28,94752,49737,505$$

1,496,561
472,788
1,969,349$

782,975

Program Services
ProgramInformation
Broadcasting

Programming &Production
Salaries & Benefits
Salaries
Employee Benefits

2,131,605

8,668
101,009204,875
20,00832,096
46,389116,326
15,281$

666,225
200,536866,761$

165,937
53,818219,755

149,086
625,830
654,862
104,776
1,151,925
283,505
168,823
254,488
$6,790,061

19,001
31,107
41,9993,016
80,44530,59021,392$

1,197,835

Total Program
Services

General &Administrative$

2,328,723
727,1423,055,865$

750,604
240,680
991,284

109,212592,633
642,718
83,723840,924
154,397
160,370
248,529$

8,973
23,90240,594
2,212
192,70921,403
18,297

5,888,371$

1,299,374

25,50884,487
77,998
154,953
343,488
41,00380,002
12,76039,729$2,917,902

Fundraising$

1,383,518
441,728
1,825,246

193,595
741,424
774,859
262,745
1,575,858
355,098
80,002
181,583
315,609$

10,905,798

Total Expenses
FYE22$

4,462,845
1,409,550
5,872,395

Activities

67,677
128,592
382,744
26,811
510,623
121,979
172,523

TravelSupplies
Rentals
Communication
Services
Operations
Cost of Direct Benefit to Donors (premiums)
Depreciation
In-Kind
Total Functional Expenses$

3,380,298

33,174
338,434
52,192
32,243324,311
17,861
46,32262,936$

1,774,234

8,361
125,607
207,782
24,6695,990
14,557
114,048
13,070$733,839$

16,76278,81675,389100,624
381,864
24,02670,607
12,76033,982$2,620,076

134,947
695,351
758,701
186,559
1,415,497
199,826
70,607
173,130
300,808$

9,807,821

See accompanying notes to the financial statements-4-

WXPN-FM RADIO STATION
LICENSED TO THE TRUSTEES OF
THE UNIVERSITY OF PENNSYLVANIA
STATEMENTS OF CASH FLOWSYEARS ENDED JUNE 30, 2023 AND 2022
2023
Cash Flows from Operating Activities
Changes in net assets
Adjustments to reconcile changes in net assets
to net cash provided by operating activities:
Depreciation
Bad debts
Present value discountAmoritization of right of use asset
Changes in:
Memberships receivable
Contributions receivable
Grants receivable
Underwriting receivables
Other accounts receivable, net
Prepaid expenses
Accounts payable and accrued expenses
Deferred rent
Deferred revenue
Operating lease liability

$

2022

446,414$725,388

181,583(2,013)(1,097)734,783

173,130
88,931(890)-

11,135
202,614(36,350)(29,342)
13,254(139,735)(44,481)(144,252)(17,566)(565,492)

9,605(14,673)
16,090(49,402)
243,223
6,993(30,830)
45,92076,655-

Net cash provided by operating activities

609,455

1,290,140

Cash Flows from Investing Activities
Net increase in cash and cash equivalents
held by the University of Pennsylvania
Purchases of equipment(493,453)(41,252)(664,037)(469,853)

Net cash utilized by investing activities(534,705)(1,133,890)

Cash Flows from Financing Activities
Promotional underwriting
Repayments under note payable(24,750)(50,000)(56,250)(100,000)

Net cash utilized by financing activities(74,750)(156,250)

-

-

-

-

Cash, beginning of year$

Cash, end of year

Upon adoption of ASC 842 on July 1, 2022, WXPN recognized a right-of-use asset on an operating lease in the amount of$3,793,082 and recognized an operating lease liability in the amount of $3,939,705.
See accompanying notes to the financial statements-5-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

1. Nature of Activities and Summary of Significant Accounting Policies
Organization
As the nationally recognized leader in Triple A radio, WXPN-FM Radio Station ("WXPN") is thepremier guide for discovering new and significant artists in rock, blues, roots, and folk.
Broadcasting from the Greater Philadelphia area, the Lehigh Valley, Lancaster/York, Harrisburg,
Worton/Baltimore, Maryland, and Hackettstown, New Jersey the non-commercial, membersupported radio service of the University of Pennsylvania is committed to its members, the artists
and their music, and the community.
WXPN is owned and operated by the Trustees of the University of Pennsylvania, and as adepartment of the University of Pennsylvania, it is exempt from federal income tax under Internal
Revenue Code Section 501(c)(3).
The major sources of support and revenue are memberships, underwriting, contributions fromindividual corporations and private foundations, and indirect support from the University ofPennsylvania ("University"). WXPN also receives grant funding primarily from the Corporation
for Public Broadcasting ("CPB").
Basis of Accounting
The accompanying financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America ("GAAP").
Financial Statement Presentation
WXPN is required to report information regarding its financial position and activities according
to two classes of net assets: without donor restrictions and with donor restrictions.
Net assets without donor restrictions are not subject to donor-imposed restrictions or the donorimposed restrictions have expired. Net assets with donor restrictions are subject to donorimposed restrictions that permit WXPN to use or expend the assets as specified. The restrictions
will be met either by meeting the purpose of the funding or the passage of time.
Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to makeestimates and assumptions that affect the reported amounts and disclosures. Actual results could
differ from those estimates.
-6-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

Cash and Cash Equivalents Held by the University of Pennsylvania
Cash and cash equivalents held by the University of Pennsylvania are for specific use by WXPN
(see Note 3).
Memberships and Contributions
WXPN receives unconditional pledges of support from its member community to support its
activities. WXPN records all memberships as contributions, therefore, all membership dues are
immediately recognized as revenue without donor restrictions in the period received.
WXPN has a sustainer pledge program whereby individuals pledge a monthly contribution on
an ongoing basis. The revenue is recognized when the cash is received since members have no
obligation to renew and can cancel their sustaining pledge at any time.
Contributions, including promises to give, memberships, and grants, are recorded with orwithout donor restrictions depending on the existence and/or nature of the donor restrictions.
When a donor restriction expires, that is, when a stipulated time restriction ends, or the purposeof the restriction is accomplished, net assets with donor restrictions are reclassified to net assets
without restrictions. Donor restricted contributions that are received and expended within thesame fiscal year are reported as revenue and support without donor restrictions.
Conditional promises to give are recognized only when the conditions on which they depend aresubstantially met and the promises become unconditional. Conditional promises to give arerecorded at fair value, which is estimated at net realizable value and discounted if expected to becollected in more than one year.
Revenue Recognition
WXPN applies the five-step revenue model under Financial Accounting Standards Board (FASB)
Accounting Standards Codifications (ASC) 606, Revenue from Contracts with Customers (Topic 606)
to determine when revenue is earned and recognized. Topic 606 applies to exchange transactions
with customers that are bound by contracts or similar arrangements and establishes aperformance obligation approach to revenue recognition.
Revenue from underwriting is recognized at a point in time when WXPN provides the on-air
acknowledgment. Underwriting payments received in advance for on-air acknowledgements
are recorded as deferred revenue. NPR affiliate fees are recognized at a point in time when the
programs are produced and delivered under the affiliate agreement. Event revenue is recognizedwhen the event occurs. As of July 1, 2021, underwriting receivables, net, were $359,072 anddeferred revenue for payments received in advance was $119,645.

-7-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

Revenue Recognition, Continued
WXPN does not have any significant variable consideration associated with its revenue
arrangements. WXPN does not have any significant financing components as payment isreceived when or shortly after services are billed. NPR affiliate fees are paid on a quarterly basis
for performance obligations satisfied in the prior quarter.
Allowances for Doubtful Accounts
WXPN continually monitors receivables for collectability issues. An allowance for doubtful
accounts for the respective receivable category is based on management's judgment and isestablished based on prior collection history and other pertinent factors.
Land and Equipment
Land and equipment are recorded at cost or, in the case of donated property, at its estimated fairvalue at the date of receipt. Depreciation on equipment is calculated on a straight-line basis overthe estimated useful lives of 5 to 20 years. At the time equipment is retired or disposed of, the costand related accumulated depreciation are removed from the accounts, and any gain or loss on
disposition is credited or charged to operations.
Repairs and maintenance costs are expensed as incurred.
Depreciation expense was $181,583 and $173,130 for the fiscal years ended June 30, 2023, and 2022,
respectively. Accumulated depreciation was $2,236,885 and $2,070,487 as of June 30, 2023, and2022, respectively.
Leasehold Improvements
WXPN's portion of the costs associated with the improvements to the historic Hajoca Building isreported as leasehold improvements. The leasehold improvements are recorded at cost andamortized over their estimated useful lives or lease period, whichever is shorter.
Leasehold improvements have been fully amortized with accumulated amortization of$3,377,145.

-8-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

Intangible Assets
Intangible assets consist of Federal Communications Commission (FCC) licenses for both WXPH
and WXPJ. These assets have been classified as indefinite-lived intangibles. Such intangible assets
are not amortized but instead are subject to annual impairment tests. WXPN evaluates therecoverability of its intangible assets using methodologies as prescribed by GAAP. There was no
impairment on these intangible assets as of June 30, 2023, and 2022.
Other Gifts and In-Kind Contributions
WXPN utilizes donated services and other items, including the direct and indirect support fromthe University of Pennsylvania, for its program activities. Accordingly, the in- kind contributions
and related expenses are reflected in the accompanying financial statements at the estimated fairmarket value.
Direct and Indirect Support from the University of Pennsylvania
Direct support from the University of Pennsylvania consists primarily of expenses incurred by
the University of Pennsylvania on behalf of WXPN and is recorded as support and expense atcost to the University. Total direct support received from the University of Pennsylvania was$27,953 and $14,052 for the years ended June 30, 2023, and 2022, respectively.
During fiscal year ended June 30, 2022, the University of Pennsylvania provided additional
financial support to WXPN in the form of a conditional contribution to fund future capital
expenditures. WXPN had up to $350,000 to spend through June 30, 2025. Revenue of $176,559
and $173,441 was recognized for the years ended June 30, 2023, and 2022, respectively.
Indirect support from the University of Pennsylvania consists of WXPN's allocated portion of
institutional support and physical plant operations and is recorded as revenue and expense at
estimated fair value based upon percentage allocations within the guidelines prescribed by the
CPB. Total indirect support received from the University of Pennsylvania was $305,609 and$261,398 for the years ended June 30, 2023, and 2022, respectively.

-9-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

Income Taxes
As indicated in Note 1, WXPN is owned and operated by the Trustees of the University ofPennsylvania, and as a department of the University of Pennsylvania, it is exempt from federal
income tax under Internal Revenue Code Section 501(c)(3). However, at times, WXPN may besubject to unrelated business income tax based on its activities. No provision for income taxes
has been reflected in the accompanying financial statements.
For the year ended June 30, 2023, WXPN did not identify any uncertain tax positions taken or
expected to be taken, which would require adjustment to or disclosure in the financial statements.
The University of Pennsylvania files informational returns with the Internal Revenue Service that
include the activities of WXPN as a department of the University. The University is potentiallysubject to federal, state, and local examinations for years after June 30, 2019.
Functional Allocation of Expenses
The costs of providing the various programs have been summarized on a functional
basis. Accordingly, certain costs have been allocated among the programs and supporting
services benefited on a reasonable basis that is consistently applied. The expenses are allocatedbased on actual costs incurred and estimates of time and usage.
Accounting Pronouncement Adopted
LeasesIn February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842),
which is intended to improve transparency and comparability among entities by requiring
recognition of lease assets and lease liabilities on the statement of financial position, except forleases with lease terms of 12 months or less. Lease assets represent the right to use the underlying
asset for the lease term, and lease liabilities represent the liability to make lease payments. The
standard also requires disclosure of key information about leasing arrangements. The
Organization adopted ASU 2016-02 with an initial application date of July 1, 2022 using themodified retrospective approach. The results for reporting periods after July 1, 2022 are presented
under Topic 842, while prior periods have not been adjusted. The Organization elected the
package of practical expedients permitted under the transition guidance within ASU 2016-02,
which eliminated the requirements to reassess lease identification, lease classification, and initial
direct costs for leases that commenced prior to July 1, 2022. As a result of the adoption of ASU
2016-02, the Organization recognized a right-of-use asset of $3,793,082 and an operating leaseliability of $3,939,705 in the statement of financial position at July 1, 2022. There was no material
impact to net assets, changes in net assets, or cash flows.

-10-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022
The Organization determines if an arrangement is a lease at inception based on various facts andcircumstances.
Effective with the implementation of ASU 2016-02 on September 1, 2022, operating leases arerecorded as right-of-use assets and lease liabilities in the statement of financial position. Leases
with a term of 12 months or less are considered short-term leases and are accounted for as an
expense in the statement of activities as rental payments are incurred.
Operating lease assets represent the Organization's right to use an underlying asset for the leaseterm and lease liabilities represent the Organization's obligation to make lease payments arisingfrom the lease. At the lease commencement date, the Organization recognizes operating leaseassets and lease liabilities based on the present value of lease payments over the lease term. In
accordance with the lease policy set by the University of Pennsylvania, the Organization uses anincremental borrowing rate sourced from the "High Quality Market (HCM) Corporate Bond Yield
Curve" published monthly by the U.S. Treasury in determining the present value of lease
payments. The lease term represents the non-cancellable period of the lease and may include
options to extend or to early terminate the lease. These options are included in the lease termwhen the Organization determines that it is reasonably certain that the options will be exercised.
Operating lease expense for lease payments is recognized on a straight-line basis over the leaseterm and is recorded in operating expenses in the statements of activities.
Accounting Pronouncement Not Yet Adopted
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) (ASU
2016-13), which requires entities to measure credit losses on most financial assets using a current
expected credit loss model (the CECL Model). Under the CECL Model, entities will estimate theexpected credit loss over the entire contractual term or life of the financial asset from the date ofinitial recognition (i.e., origination or purchase). The methodology applied in the CECL Modelrequires consideration of a broader range of reasonable and supportable information that focusses
on forward-looking information to inform credit loss estimates. Entities will record the initial
measurement of the expected credit loss, as well as any subsequent changes in the estimate, as acredit loss expense (or reversal) in the current period of the statement of activities. The
amendments of ASU 2016-13 affect loans, debt securities, trade receivables, net investments inleases, and other financial assets that have the contractual right to receive cash. The primaryobjective of ASU 2016-13 is to provide financial statement users with more information about the
expected credit losses on financial assets and other commitments to extend credit. ASU 2016-13
is effective for the Organization's fiscal year ending June 30, 2024.

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WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

Subsequent Events
Subsequent events have been evaluated through November 27, 2023, the date that the financial
statements were available to be issued.

2. Liquidity and Availability
In addition to WXPN's cash reserve held by the University of Pennsylvania and available uponrequest, WXPN operates with a balanced budget and anticipates collecting enough revenue tocover general expenditures.
2023

2022

Cash and cash equivalents held by the
University of Pennsylvania$

4,131,057$

3,637,604

Membership receivable, net-

13,331

Contributions receivable, net

21,825201,386

Grants receivable

146,850

110,500

Underwriting receivables, net

378,874

352,811

Other accounts receivable, net

13,781

27,036

4,692,387

4,342,668(594,311)(623,405)

Contractual or donor-imposed restrictions
Financial assets available to meet cashneeds for general expenditure within one year$

4,098,076$

3,719,263

3. Concentrations of Risks
Cash and Cash Equivalents Held by the University of Pennsylvania
Since funds are held by the University of Pennsylvania, management of WXPN is unaware of how
funds are invested and is unable to determine the extent of significant credit risk to which WXPN
may be exposed. Because cash and cash equivalents are held by the University of Pennsylvania,
they are excluded from cash and cash equivalents on the accompanying statements of cash flows.

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WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

4. Membership and Contributions Receivable
WXPN receives unconditional promises to give to fund programming and community outreach,building expansion, and technology and strategic investments. These receivables have payments
due through 2027. The Special Funds receivables have been discounted at an implicit rate of interestof 1.89%.

The amount due from all donors consists of the following:
Year Ended June 30,
2024
2025
2026
2027

$

26,52912,50012,50032,594

Total contributions receivable

84,123

Less: discount to net present value
Less: allowance for uncollectible amounts

9,243
17,951

Net contributions receivable

56,929Less: current portion, net of allowance and discount

21,825

Non-current portion, net of allowance and discount$35,104

5. Promotional Underwriting Liability
Under the terms of the June 2016 asset purchase agreement for WNTI (now WXPJ) station, WXPN
is to provide $500,000 of promotional underwriting to the seller of the station. The promotional
underwriting will be aired in annual installments for a period of ten years through 2026.
2023

2022

Current
Long Term$

127,375
100,000$

102,125
150,000

Total$

227,375$

252,125-13-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

6. Note Payable
In 2016, WXPN signed a note payable to the University of Pennsylvania in the amount of $500,000.
The note is payable in five annual installments in the amount of $100,000 per year, includinginterest at 2.5%. During 2021, the University extended the maturity date of the note payable to
January 2023.
2023
2022
Current$-$

50,000

Total

$

-

$

50,000During the year ended June 30, 2023, the note was paid in full.

7. Net Assets with Donor Restrictions
Net assets with donor restrictions as of June 30, 2023 and 2022 were donor restricted for thefollowing purposes:
2023
2022
Special programming (purpose restriction)$

General operations (time restriction)$

259,087Total

8.

335,224$594,311

264,001
359,404$

623,405

Direct Support from the University of Pennsylvania

Direct support from the University of Pennsylvania for the years ended June 30, 2023, and 2022
consisted of the following:
2023
2022
Work Study Department
Central Gifts Department

$

4,691
23,262$691
13,361

Total$

27,953$

14,052-14-

WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

9. Other Revenue:
Other revenue for the years ended June 30, 2023, and 2022, consisted of the following:
2023
2022
NPR affiliate fees
XPHD affiliate fees
Retail sales
XPoNential Music Festival
Subsidiary Communications Authorizations leases
AAA Non-Comm
Musicians on Call 5K Run
Black Music City
Interest Income
Other

$

437,497
22,39012,848199,013
22,200104,424
31,522
111,798
2,250$

393,307
17,64016,920150,989
21,42083,68031,882
21,312
4,718
2,465

Total

$

943,942$744,333

10. Retirement Plan
The University of Pennsylvania provides retirement benefits for WXPN employees through adefined contribution plan. The University's policy with respect to its contribution is to provide
up to 10% of eligible employee salaries. The University's contribution amounted to $355,171 and$297,038 during fiscal years 2023 and 2022, respectively. These amounts are reflected in WXPN's
operating expenses.
11. Lease
WXPN leases office space at the Hajoca Building located at 3025 Walnut Street, Philadelphia.
WXPN entered into a lease agreement with the University of Pennsylvania through October 2029.
Rental expenses were $598,374 and $598,783 for the years ended June 30, 2023 and 2022,
respectively.
The weighted-average remaining lease term as of June 30, 2023 is 76 months. The weightedaverage discount rate used to determine the operating lease liability as of June 30, 2023 was
3.88%. Future minimum rental payments under noncancellable operating leases as of June 30,2023 were as follows.

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WXPN-FM RADIO STATION
Licensed to the Trustees of the
University of Pennsylvania
Notes to Financial Statements
June 30, 2023 and 2022

Operating Lease
AmountYear Ending June 30,
2024
2025
2026
2027
2028
Thereafter
Total minimum lease payments
Amount representing interest
Present value of net minimum lease payments
Current portion
Non-current portion

592,791
604,647
616,740
629,074
641,656874,087
3,958,994(584,781)
3,374,213(565,491)
2,808,722$$

Under the prior accounting guidance, the future minimum rental payments under the
noncancellable operating leases as of June 30, 2022 were as follows:Year Ending June 30,
2023
2024
2025
2026
2027
Thereafter

$

-16-

575,705
592,791
604,647
616,740
629,074
1,515,743