OPENING THE DOOR.

2008 Annual Report

KNAU is the premier source of balanced, accurate informati on, civilized discourse, and cultural inspirati on in northern Arizona. We refl ect the disti ncti ve qualiti es of our region and operate in effi cient and sustainable ways.

John Stark - General ManagerAnnie Kuchler - Assistant Manager and Finance Director

Administration

Charles Smith, ChairTerra Crampton, Vice ChairRobert BreunigGary BuckleyAnne CrosmanKaren EnyedyEric HowardUrsula MontanoHoMana PawikiClare SchneiderJoe Walka

RadioActivesEmeritusBruce AikenJim BishopTom ChabinJack Doggett Patrice HorstmanKaren Kinne-HermanLaura LynLulu SantamariaDan Williams

Board of RegentsKNAU is licensed to the Arizona Board of Regents for and on behalf of Northern Arizona University

Fred Boice, Board of Regents PresidentJohn Haeger, Northern Arizona University PresidentMason Gerety, Vice President of University Advancement

KNAU is a Nati onal Public Radio member stati on and an affi liate of Public Radio

Internati onal, American Public Media, and the Associated Press. KNAU is a

Corporati on for Public Broadcasti ng qualifi ed public radio stati on.

Phone: 928-523-5628 Toll Free: 800-523-5628Fax: 928-523-7647knau@nau.edu www.knau.org

Contact Information

A public service of Northern Arizona University for 25 years

MISSION

Daniel Kraker - Director of News and ProgrammingTheresa Bierer - Reporter - AnnouncerMark Herz - Reporter - All Things Considered HostGillian Ferris Kohl - Reporter - Morning Editi on HostLaurel Morales, ReporterBrad Nolan - Weekend Editi on HostBrian Sanders - Network Operati ons Manager

News and Programming

Student InternsJon Gustafson - Operati onsWillis Reynolds - Operati onsKatelyn Seabury - Administrati on and Operati ons

EngineersJon Koger - Transmitt er EngineerGreg Lesko - Studio Engineer

Mailing AddressPO Box 5764Flagstaff , AZ 86011

Shipping Address515 E. Pine KnollNAU Building 83Flagstaff , AZ 86011-5764

DevelopmentMoira Clark - Underwriti ng ManagerElta Foster - Membership ManagerLiz Gumerman - Development DirectorAndrea Long - Membership AssistantLisa Skinner - Traffi c Coordinator - WebmasterShelly Watkins - Underwriti ng Representati ve

KNAU and public radio conti nue to be widely-valued public resources even as the State of Arizona is in a deep budget crisis and the U.S. economy is in recession. During fi scal year 2008, an elevated appeti te for informati on about the electi on and the economy drove people to KNAU. We retained the loft y positi on of the number-one-ranked morning drive radio stati on in our region. As other news media in northern Arizona downsized or disappeared, KNAU and NPR remain vital and strong.

Last year, KNAU’s groundbreaking partnership with NPR resulted in the Poverty with a View series in which KNAU reporters documented how locals sacrifi ce income and conveniences to live in our high-amenity communiti es. The series fi rst aired in April 2008 and NPR rebroadcasted select segments nati onally to glowing reviews. The series also won PRPD’s 2008 Award for Creati ve Excellence.

We celebrated KNAU’s 25th anniversary during 2008 with events throughout our coverage area in Show Low, Grand Canyon, Sedona, Prescott , and Flagstaff . Anniversary festi viti es came to a climax in November when Renee Montagne, the nati onal host of NPR’s Morning Editi on, arrived in Flagstaff to help the stati on mark KNAU’s actual 25th anniversary.

To improve access to public radio and enhance signal recepti on, KNAU fi led FCC applicati ons for new stati ons in Prescott , Kingman, Springerville, and Show Low last year. We expect the Arizona Public Radio network will become more reliable with installati on of satellite interconnecti on in 2009.

In fi scal year 2008, KNAU essenti ally broke even, with a ~$5,000 increase in net assets. Membership revenue increased by a healthy 11%. Cellular One of Show Low gave KNAU a substanti al major gift for a satellite interconnecti on and we received two large bequests from listeners. As a result, KNAU maintains cash reserves equivalent to 43% of annual cash operati ng expenses. Fiscal year 2009 is fi nancially challenging with fi scal year 2010 slated to be even more diffi cult. With strong support from the public, KNAU is poised to navigate and report on the economy’s uncharted territories.

Thank you for your support of Arizona Public Radio,

John StarkKNAU General Manager

GENERAL MANAGER’S DESK

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JOURNALISM AWARDS 2008

2008 Regional Edward R. Murrow AwardOverall ExcellenceThe KNAU News Team

2008 Regional Edward R. Murrow AwardBest Feature Reporti ngLead Poisoning in CondorsGillian Ferris Kohl

2008 Regional Edward R. Murrow AwardBest Sports Reporti ngFormer Lost Boy Takes Off Laurel Morales

2008 Regional Edward R. Murrow AwardBest News SeriesClimate Connecti onsThe KNAU News Team

2008 Regional Edward R. Murrow AwardBest Writi ngValenti ne’s Day ChocolateA Flagstaff Local Heads Into the WildExperimental Wildlife CrosswalkGillian Ferris Kohl

Public Radio Program Director’s Associati on(PRNDI)

First Place - InterviewCitrus Valley PlayhouseGeoff Norcross (now with Oregon Public Radio in Portland, OR)

PRNDIFirst Place - SeriesClimate Connecti onsDaniel Kraker, Laurel Morales, Gillian Ferris Kohl, Matt DeLong, Sadie Babits, and Brian Mann

PRNDISecond Place - Spot NewsNavajo Conscienti ous ObjectorDaniel Kraker

The KNAU News Team has once again disti nguished itself with these awards in broadcast journalism - a feat which sets us among the most accomplished in the country.

“In Flagstaff , the medianprice of homes has more than doubled since

2000. The city commissioned an economic study thatconcludes the growing second home market is one reasonwhy houses have gott en so expensive here. Second home-

owners can aff ord lavish houses because their average householdincome is almost 5 ti mes higher than the average Flagstaff resident’s

… so that’s mostly what developers are building.”

-Laurel Morales “Second Homeowners,” Poverty with a View

Left : Laurel Morales holding the PRPD ACE Award

Public Radio Program Directors Associati on (PRPD) 2008 Award for Creati ve Excellence (ACE)Poverty with a ViewThe KNAU News Team

From the PRPD judge: “Amazing work. This entry clearly demonstrates that even smaller stati ons with smaller staff s and budgets can produce stellar-quality journalism by simply focusing on what is most important, achievable, and meaningful.”

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NEWSROOM: KNAU and NPR’s Local News Initiative

Anyone who’s lived in Flagstaff long enough has likely heard the expression “Poverty with a View.” For many, Flagstaff is a great place to live: the view is phenomenal, the downtown is quaint, and there are outdoor

opportuniti es galore. But there’s a downside. As more and more people are drawn to Flagstaff for its ameniti es, housing prices have skyrocketed and jobs and wages have failed to keep pace. The result is one of the largest gaps between income and housing costs in the mountain West. That means real poverty for some and severe economic challenges for many others.

KNAU explored this tension—a growing concern in mountain towns throughout the West—in a groundbreaking, six-day series called Poverty with a View. The series was inspired by our listeners. Over and over, when we asked community members what the big issues in northern Arizona were, we heard the phrase, “Poverty with a View.” So we ran with it. We convened a town hall meeti ng att ended by nearly 200 people including city council members, business owners, students, renters, and the editor of the local newspaper.

The KNAU Newsroom then spent more than two months reporti ng and fact-checking the series. We grounded stories in the economics of business att racti on, land development, and aff ordable housing. But we also featured beauti ful sound, compelling characters, and even music performed by local musicians. The result was journalism that was not only informati ve and far-reaching, but also a joy to listen to.

KNAU Reporter Mark Herz at the Poverty with a View community

brainstorming session

“To succeed in Flagstaff , you have to piece together an

income much the way you makea patchwork quilt. You pull together

diverse things… If something dries up orcollapses… you’re sti ll able to make it.”

-Theresa Bierer “Shrinking Middle Class”

Left : Leah, Grace, Sue, and Ruth Norrisliving under one roof in Flagstaff .

PRODUCED WITH SUPPORT FROM:

“I’m standing on Walkup Drive in University

Heights, just west of NAU. These arenice, middle class homes, tucked on pine

tree covered hillsides. When you look at the street signs, you see the names of the faculty with

the vision and guts to create this place: Troxler Circle, Mehrhoff Place, Litt le Drive…”

-Daniel Kraker “NAU Housing”

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WORLD VIEWS from NPR

Waking up is hard to do, but it’s easier with NPR’s Morning Editi on. Hosts Renee Montagne and Steve Inskeep bring the day’s stories and news to northern Arizona radio listeners on the go. KNAU’s Gillian Ferris Kohl adds local fl avor with regional news and cultural events. Morning Editi on provides news in context, airs thoughtf ul ideas and commentary, and reviews important new music, books, and events in the arts. With Earth Notes, essays by Scott Thybony, and more, Morning Editi on is a world of ideas tailored to fi t into your busy life.

Steve Inskeep (by Debbie Accame)

Wait Wait…Don’t Tell Me! takes a fast-paced irreverent look at the news of the world—and the weird. Now in its sixth year, the show off ers a modern and someti mes raucous twist on the old-ti me radio quiz show, mining NPR news stories for quiz questi ons. The host is award-winning playwright Peter Sagel. America’s favorite newscaster, NPR’s Carl Kasell, is the show’s offi cial judge and scorekeeper. With Wait Wait…Don’t Tell Me! KNAU is doing its part to keep a smile on the face of northern Arizona. Carl Kasell

(2001 by Antony Nagelmann)

Morning Edition - Weekdays starting at 5 AM

Michele Norris (2007 NPR by Stephen Voss)

Wait Wait...Don’t Tell Me! - Saturdays at 11 AM

All Things Considered - Weekdays starting at 3:30 PM

Since its debut in 1971, the aft ernoon radio newsmagazine All Things Considered has delivered in-depth reporti ng and transformed the way listeners understand current events and view the world. Every weekday aft ernoon on KNAU, hosts Melissa Block, Michele Norris, and Robert Siegel present two hours of breaking news mixed with compelling analysis, insightf ul commentaries, interviews, and special—someti mes quirky—features. Closer to home, local host Mark Herz keeps you up to date with local and regional news twice an hour.

Melissa Block (2002 by Antony Nagelmann)

Robert Siegel (2001 by Antony Nagelmann)

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Renee Montagne (left ) and KNAU’s localMorning Editi on Host Gillian Ferris Kohl

On November 20th, KNAU celebrated its 25th anniversary with the nati onal host of NPR’s Morning Editi on Renee Montagne.

The evening started with a ti cketed recepti on which included event sponsors, Tower Society members, and other guests. Everyone had the chance to mingle with Renee Montagne and Ellen McDonnell, Director of NPR’s Morning Programming, while enjoying hors d’ouevres and beverages.

Over 650 KNAU listeners att ended the public event “Behind the Scenes of NPR,” where Montagne told stories of being a journalist in the early years of NPR, how public radio technology has changed over ti me, and her experiences in Africa

and Afghanistan. NPR’s Morning Editi on is the most widely heard broadcast news program in the United States with over 11 million listeners, and is the number-one rated morning program among KNAU listeners.

RENEE MONTAGNE VISITS NORTHERN ARIZONA

This event would not have been possible without the funding assistance of our sponsors:

• Coconino County Board of Supervisors• NAU Student Acti viti es Council• Mountain Heart• NAU’s President’s Offi ce, School of

Communicati on, Offi ce of the Dean, Social and Behavioral Sciences, Women’s and Gender Studies, Honor’s Program, and Politi cs and Internati onal Aff airs

• Coconino Community College• Horizon Air

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CONTRIBUTORS FY08

KNAU’s fi scal year 2008 was from July 1, 2007 – June 30, 2008. Membership pledged contributi ons and underwriter acknowledgements cover that period and do not refl ect contributi ons made aft er July 1, 2008.

CONTRTower Society$5,000 +Cellular One of Show LowIndependent Chariti es of AmericaJ. W. Kieckhefer Foundati onMargaret T. Morris Foundati on

$1,500-$4,999Deluxe Corporati on Foundati onJack and Kay Doggett Frank and Elizabeth LeiteDeborah LindquistMangum, Wall, Stoops and WardenCarol MimlessNeurosurgical Specialists, Dr. Nathan Avery and Dr. Brad Nicol

$1,000-$1,499Jim and Helene M. Babbitt Bookman’s Entertainment ExchangeRobert Breunig and Karen EnyedyDiane BrickerMark and Linda GieseckeJerilee Grandy and Allan BlairWilliam and Danna HendrixMaury Herman and Karen Kinne- HermanHuff ord, Horstman, Mongini, Parnell & TuckerJaqueline KalbachKinney Constructi on ServicesCraig and Annie Kuchler

Michael Lainoff Laura Lyn and Susan ShawSean McMahanRenaissance in the Pines, Inc.Jeff and Angie RockowCharles and Sandi H. SmithSodexhoSplendid ThingsJohn and Kris Stark$1,000-$1,499 (cont.)State Farm Company Foundati onState Farm Insurance, Melissa Collins-CrippsKris SwansonThe Northern Trust CompanyThe Walton Family Foundati on, Inc.James and Mary Wurgler

Tower Society memberships and bequests provide extra momentum to KNAU to expand its vision of excellence,

develop new programs, and fi nd innovati ve ways of bett er serving northern Arizona. Benefi ts include a Day Sponsorship, private tours of the KNAU studios, on-air thanks, regular updates by the General Manager, and

much more. Contact Liz Gumerman at (928) 523-2334 if you would like to learn more about naming KNAU in your

estate planning or becoming a Tower Society Member.

Bequests$5000 + Susan Coleman (Sedona)Frieda Louise Kaelin (Show Low)

$1,500-$4,999 Captain Frances Wildman, III (Prescott )

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CONTRIBUTORS$500-$999AnonymousPaul and Mary Babbitt Dr. and Mrs. John BaconJanet BalsomBryan and Barbara BatesDavid and Carol BousquetKristy Bryner and Geoff NorcrossGary and Diane BuckleyTom ChabinBeth and Kip ClaxtonCoconino County Career CenterDora CurrenJill M. DiemerJohn Durham and Lisa JobinFidelity Charitable Gift FundHoward FischerFlagstaff Emergency PhysiciansFlagstaff Medical Center Foundati onFloor Coverings Internati onalChris FoleyForest Country AnesthesiaJames R. and Ardeen FredrickFriends of the Posse Grounds, Inc.Ginger and John P. GiovaleGrand Canyon RotaryConnie and Gary Grube

Liz and Wolf GumermanJohn and Cecily HaegerByron and Jennifer HayesDouglas D. JohnsonPaul and Jenny KeimDeborah LedingtonElizabeth MalmDavid Marti nPhil Massey & Deidre HunterSam and Marjorie McClanahanM. J. McMahonDr. & Mrs. M.R. MitchellMortenson TradingKen and Mary Ellen MylreaMark and Deb NeumayrHarry NewmanBradley and Laura NicolJane A. Oski and Steve W. MoulBrenda C. Patt onCynthia R. PerinVance PetersonPlanet NissanKaren Pugliesi and Larry KovachDavid Rudakewich and Debra BlockRon and Carolyn SiegSherman Stephens and Martha TaylorCarl and Holly TaylorPenny Trovillion

Priscilla TrowbridgeM. Angelo and Lora TrujilloUnitarian Universalist Fellowship of Flagstaff United Way of Northern ArizonaVerkamp’s Inc.Jan WantlandSeldon WassonLaura and Kent Winkler

$250-$499Caroline AbdelkaderActi on AppraisersMarti n and Helen AhleneBruce and Mary AikenAmerican Holisti c Nursing Associati on

Liane Hansen co-hosts NPR’s Weekend Editi on with Scott Simon. It’s like

Morning Editi on, only on the weekends! Airing Saturday and

Sunday starti ng at 6 AM.

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CONTRIBUTORS FY08$250-$499 (cont.)Rosemary Anderson and Frederick AveryEd AndersonJean Anderson and Don HodlerKirk and Diane AndersonBarbara D. AndresPaula AndressArizona School of Integrati ve StudiesLaura ArmstrongArrowhead CarpentryAnnett e and Nate AveryKenneth Babbitt Babbitt ’s Backcountry Outf itt ersDan and Clara BaertleinRodney BakerDoris E. Bancroft and Gary A. ReevesJune BeasleyRandolph C. and Janett a BeaumontAnn Beck and Jim NovakRachel BillowitzJim BishopBrent BitzMartha Blue and Oliver JohnsonDarrell BoomgaardenJay BowersLouis BrousseauMary Lou Brubaker

Tim BudrysDr. and Mrs. Brent BurchJamie and Robin BurgessMr. and Mrs. William BurkeSamuel ButmanSusan CampbellJim CaseCathedral Health Services Richard A. and Doris CellariusChamber Music SedonaCarol Chambers and William NobleMargaret G. ChanlerLee N. ChristensenCity of Flagstaff Jack and Moira ClarkJim ClarkLinda ClewellRichard and Holly CoastCoast and Mountain Properti esCoconino County Democrati c PartyMargo ConleySusan ConleyPatrick ConnellyEdith CopleyBob and Kay Cornett Richard C. and Hanna J. CortnerTerra and Perry CramptonJeanne CrawfordVina Creager

Angela CrossleyBrandon CruickshankDon CurranNancy E. CurreyBob Curry and Vicki GreenCarol Curti s and Sidney BuckmanGarland and Carol DailyDean and Susan DavidsonJoseph and Janice DayElaine de BritoJ. Scott and Kathy DeasySteven DemockerJohn DevlinFrank DrewAgnes DrogiJohn and Kathy EastwoodLorraine ElderCaroline EllermannKate EllisJerry and Pat EllsworthFred EstrellaMr. Richard J. EvansG. Edward EvansExtra Step Painti ng Co.Lorna FalkensteinChris and Rene FausetSusan FavourElaine FinnerFlagstaff Sister Citi es Internati onalMark and Vicky FosterNelson and Rose FrenchFaith K. FullerWilliam Gallen

8

CONTRIBUTORS$250-$499 (cont.)Michelle GallowayGary and Mary GarlandMason Gerety and Marsha ThompsonJames Gibson and Liz GrobsmithJanet GibsonCatherine GimsonNancy and Bill Goff -LaippleElizabeth GoforthEd GogekMichael and Susan GolightlyGeorge and Kimberly GouldTerry GranthamEdward and Shirley GroenhoutMichelle GruaJoe and Ann GuayDr. Jennifer D. Gummo- WagnerKarla B. Hackstaff Pat HaeuserNancy HagermanAndrew HallSteve Hannah and Paula StefaniEstelle HarrisonCraig HartleyHartzell Family Foundati onHassaverde Ent., LLCRichard and Raquel HaysJay HeckertThomas and Shaula Hedwall

Ann R. HeitlandJoanne HelmerVera HendrixRobert and Dee HershbergerChris HeyerFrances HillPaula and Dan HolcombRoger and Jane HoldenNancy HoneychuckPatrice Horstman and Lillian SantamariaDorothy HouseJean E. HoweEarle B. HoytTerry HubbardHelen Hudgens FerrellLaura HuennekeKaren HughesDeirdre and Keith HunterPam IsrealsonElysha IversenKenneth JacksonMark James and Mary PooreRex JenneyChris JensenJoan Carstensen DesignAnn JohnsonHarper and Cynthia JohnsonJo Ann JohnsonKathleen JonesShirley Jones

Dave Jones and Christi na TuchsenAlyce JordanJill Jordan and Roy WardVirginia KaiserPeter and Eva KausToni Kaus and Mary TrevorPeter KenzlerJoan KerrRichard and Claire KerseyVaughn R. and Joyce M. KnappJames KnezDella KurcikKit KuykendallJoann LaneBraham and Phyllis LatchMichael LawClaude Francis Lee, Jr.Troy Levitt Roman and Puka LewickyT.C. and Sue Lewis

The Car Guys - Tom and Ray Magliozzi (photo by Richard Howard). Car Talk is KNAU’s most popular program with widespread appeal to public radio

listeners. Airing on KNAU Saturday mornings at 10.

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$250-$499 (cont.)Dr. and Mrs. Todd LewisTheodore LewisMatt LivingstonDavid LovejoyCarole B. MacklerMain Street CateringMitchell MajorWilliam R. MakelaGlenna ManymulesbitsoiRobert Mark and Evelyn BilloKevin MarshalHeather MarshallLouisa Marti nDr. James MarzolfCharles MatheusMarsha McCalebKevin McClureDonovan McDonaldJames and Susan McEvoyEileen McGeeMichael McGuinnDavid G. and Kay McKayNolan McKelveyKirsten and Mark MellingerLeroy Michael, Jr. and Joanne MichaelJoanne MillsThomas MilsonWilliam H. MitchellDennis MitchemAnn MontgomeryCharles Y. Moody and Stephanie Yard

Rick MorganSusan MorleyDan and Nita MorrisCaroline MorseMountain SchoolDianne MuchowSara MushroNati onal Weather Service Flagstaff Sigurd and Darleene NelsonKathleen NelsonAnita NordbrockRose and Kyle NorrisDeborah Northcutt Annett e NystedtJanet O’ConnellDr. & Mrs. Ken OgilvieWilliam OrmanDenis and Bett e O’SullivanBeth A. Ott erstein and Steve PeruSteve and Cecelia OverbyRandall PairCindy ParkerEllen PartchSamuel T. Patt ersonGary and Lori Pearlmutt erRobert E. and Lorett a J. PenaRichard D. and Carol M. PenningtonPerformance Staffi ngCarl Perry and Amanda LeibKaren S. and Douglas B. Peters

Gary PlankPrevent Child Abuse, Inc.Tobin and Christi PurslowMary L. and Richard D. QuartaroliBarbara RalstonHarry RamseyJean RathgeberWayne Regina and Janet BickneseGordon W. ReiterJim and Melissa RhodesMarianne RichardsonRidge Top Constructi onJim RobertsHenry and Laura RoeCharlot RootDon RosalezLinda and David RozemaSage Brush Traders, LLCDr. Bernard SakowiczMichael Saks and Roselle WisslerKimberly Sargent and Joe MurrayJohn and Mary M. SatherLaurie SchaalRiley Schaeff erDavid SchlosserClare Schneider and Drew BarringerSusan SchroederStephen SchusterSchwab Charitable Fund

CONTRIBUTORS FY08

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$250-$499 (cont.)Hugh Scott Janice N. Shaff erJoseph and Cynthia R. Shaff erShane Knight GalleryJohn and Patricia SharpeWilliam and Carleton SheppardLaura ShermanDavid Sherry and Jeanne AmbrusterScott and Jackie ShraderShrader & Marti nez Constructi on, Inc.Thomas and Helen R. SiskMichael and Carol SmithRoger L. SmithKaren SorensenDavid Spence and Cruz BegayPatti SpenrathVince Stack and Sarah HudelsonFrank StartzellTim Steff enElizabeth StegallMary StephensonLarry StevensRobert and Julie StoutSummit Fire DepartmentJames Sutcliff eWendy SwartzMark Swift Sumner Sydeman

Pam SymondT2 General Contracti ng, Inc.Elizabeth TaylorMargaret L. TaylorKaren B. TaylorThe Community Foundati on, FLFred and Alexandra TheveninGenevieve ThieleNorma Z. ThimotMichelle ThomasWilliam and Carolyn TimmermanJ.A. TyburczyPaul J. UmhoeferJames R. and Candice UnruhDemica VigilArin Waddell and John HeynemanEllen and Bill WadeTillie WaltonPeter WardTom WarzeckaKathleen WegeJohn WeissMarilyn Weissman and Marlene RickgarnDuffi e Westheimer and Charlie SilverMr. and Mrs. Tom WhithamMilton and Diane WilcoxJean P. WilkinsDan WilliamsWinter Sun Trading Company

Donald and Liz WiseAnne Witt keJack and Mariana WoodMichael WoodburneYavapai College Osher Lifelong Learning Insti tuteDavid and Laura YostRobert ZaccariaGuy and Heather ZeiglerEric Zeliff Matt Ziegler

We thank all 3,780 members who generously

support KNAU with an average contributi on of $117. We appreciate

your fi nancial support.

CONTRIBUTORS

Diane Rehm in her studio at WAMU in Washington, D.C. The Diane Rehm Show off ers listeners thoughtf ul and lively conversati on on an array of topics with many of the most disti nguished people of our ti mes. (Photo by Glogau Photography)

k

11

BUSINESS PARTNERS (AS OF 6/30/08)

A RUNNER’S HIGH

ABSOLUTE BIKES

ALPINE ANIMAL HOSPITAL

AMERICAN PHYSICAL THERAPY ASSN: ARIZONA CHAPTER

AMERICAN SLEEP DISORDERS FACILITYANN HEITLAND of RE/MAX PEAK PROPERTIES

APS

ARBORETUM AT FLAGSTAFF

ARCHITECTURAL AND ENVIRONMENTAL ASSOCIATES, INC.ARIZONA CLASSICAL THEATRE

ARIZONA ONCOLOGY

ARIZONA RAFT ADVENTURES

ARIZONA SCHOOL OF INTEGRAL STUDIESART FOR SEDONA’S SAKE

ARTIST’S GALLERY

BARNET DULANEY PERKINS

BATTERIES PLUS

BATTERMAN’S AUCTIONS

BEAVER STREET GALLERY

BOOKMAN’S ENTERTAINMENT EXCHANGEBRIX

BUSTED KNUCKLE GARAGE

CAFE ESPRESS

CANYON PET RESORT

CARDIAC CARE

CARPETS OF DALTON

CHAMBER MUSIC SEDONA

CHOICES INTEGRATIVE HEALTH SERVICES

CITY OF FLAGSTAFF SUSTAINABILITY AND ENVIRONMENTAL MANAGEMENT DIVISION

COCONINO COMMUNITY COLLEGE

COCONINO COUNTY HEALTH DEPARTMENT

COCONINO COUNTY PARKS & RECREATION

COCONINO RURAL ENVIRONMENT CORPSCOMPASS BANK

CONNIE B. GRUBE, CPA

COTTAGE PLACE

CROWN RAILROAD CAFE

CULLIGAN WATER

DEBORAH LINDQUIST, M.D.

DeROSA PHYSICAL THERAPY

DESERT CANYON TREATMENT CENTER

DR. JOHN BACON

DURANGO BLUEGRASS MELTDOWN

ELKS OPERA HOUSE

ENVIROSYSTEMS MANAGEMENT INC.

ERIC SOUDERS

EV SOLAR PRODUCTS

FINE JEWELRY STUDIO

FLAGSTAFF ATHLETIC CLUB

FLAGSTAFF BONE & JOINT

FLAGSTAFF BREWING COMPANY

FLAGSTAFF CULTURAL PARTNERS

FLAGSTAFF EYE CARE

FLAGSTAFF FESTIVAL OF SCIENCE

FLAGSTAFF INSURANCE

FLAGSTAFF MEDICAL CENTER

FLAGSTAFF PIANO, CLOCK & FINE ART

FLAGSTAFF SKI CLUB

FLAGSTAFF SYMPHONY

FLAGSTAFF UNIFIED SCHOOL DISTRICT

FLORAL ARTS LTD

FOREST VILLAS HOTEL

FRIENDS OF HUBBELL TRADING POST

WATTER’S GARDEN CENTER

GEM MORTGAGE

GEOFFREY ROTH LTD

GRAND CANYON ASSOCIATION

GRAND CANYON TRUST

GRAYLEAF GALLERIA

GREENHOUSE PRODUCTIONS

HASSAYAMPA INSTITUTE FOR CREATIVE WRITING

HORIZON AIR

HOWLING COYOTE SONGWRITERS SHOWCASEHUFFORD, HORSTMAN, MONGINI, PARNELL, & TUCKERHUMPHREY SUMMIT SKI

JAMES DAY, DDS

JAY’S BIRD BARN

JEFF KARL JEWELERS

JEROME ART WALK

JKC, INC

JOHN TREBON, P.C.

JOSEPHINE’S RESTAURANT

JUNE’S CUSTOM HOUSE

JUNIPINE CREEKSIDE

LA POSADA

LARSON REHABILITATION SERVICES

LINDA CHAN FINANCIAL SERVICE

LINDA RAE WESTBROOK, DVM

MANZANITA OUTDOOR

MARCHESA’S FINE SHOE SALON

Garrison Keillor - Host of A Prairie Home Companion, the only live music

and variety show aired nati onwide today. Airing on KNAU Saturday nights

at 6 PM with encore broadcasts on Sundays.

12

BUSINESS PARTNERSMcCARTHY WESTON LAW OFFICE

McCLURE’S TRANMISSIONS

MELISSA COLLINS CRIPPS - STATE FARM INSURANCEMIKE DAHL CHIROPRACTIC

MORTIMER NURSERY

MOUNTAIN ARTISTS GUILD

MOUNTAIN LINE TRANSPORTATION

MOUNTAIN VIEW PEDIATRICS

MOUNTAIN WAVES HEALING ARTS

MUSEUM OF NORTHERN ARIZONA

NARBHA

NAU AZUN

NAU BOOKSTORE

NAU DISTANCE LEARNING

NAU SOCIETY OF PROFESSIONAL JOURNALISTSNAU THEATRE DEPARTMENT

NEW FRONTIERS NATURAL MARKETPLACE

NORTH COUNTRY HEALTHCARE

NORTHCENTRAL UNIVERSITY

NORTHERN ARIZONA BOOK FESTIVAL

NORTHERN ARIZONA DERMATOLOGY CENTERNORTHERN ARIZONA NEUROPSYCHOLOGY, PCNORTHERN ARIZONA YOGA CENTER

NORTHLAND HOSPICE

OAK CREEK BREWING COMPANY

ODEGAARD’S SEWING CENTER

ONE THE PROJECT

ORPHEUM PRESENTS

OUTBACK CONCERTS

PASTO

PICKIN’ IN THE PINES

PINE MOUNTAIN AMPHITHEATRE

PLASTIC SURGEONS OF NORTHERN ARIZONA

PONDEROSA PET CREMATORY AND MEMORIALS

POWELL MUSEUM

PRESCOTT COFFEE ROASTERS

PRESCOTT FINE ARTS ASSOCIATION

PRESCOTT HONDA

PRESCOTT INVESTOR SERVICE

PRESCOTT VALLEY PARKS & RECREATION

RADISSON WOODLANDS HOTEL

RED ROCKS MUSIC FESTIVAL

RESIDENCE INN BY MARRIOTT

RHYTHM & ROOTS CONCERT SERIES

SEDONA JAZZ ON THE ROCKS

SEDONA MIRACLE

SHEPHARD WESNITZER

SONORA QUEST LABORATORIES

SOUTHWEST WINDPOWER

SPLENDID THINGS

SPRINGHILL SUITES BY MARRIOTT

SQUARE PEG CONCERTS

ST. OLAF ORCHESTRA

TELLURIDE JAZZ CELEBRATION

THE PALACE RESTAURANT & SALOON

THE PEAKS

THEATRIKOS

TIM’S TOYOTA CENTER

VISIBLE DIFFERENCE

WALK-IN MEDICAL CARE OF FLAGSTAFFWARNER’S NURSERY

WEST OF THE MOON

WEST YAVAPAI GUIDANCE CLINIC

WESTSIDE VETERINARY CLINIC

WILLIAM P. RING, P.C.

YAVAPAI COLLEGE

YAVAPAI REGIONAL MEDICAL CENTER

KNAU thanks our Business Partners for their generous

support. Program Underwriting identifi es your company as a civic-

and community-minded organization with a sincere

interest in the public...an interest that goes beyond simply selling a

product or service.

Contact KNAU’s Underwriting Department

928-523-5628.

KNAU’s State Capitol Correspondent Howard Fischer. Howie keeps KNAU listeners up-to-date on new laws and policy debates at the state legislature and from the

Governor’s offi ce that impact northern Arizona.

13

NET ASSETS (For years ended June 30, 2008 and 2007)

ASSETS 2008 2007Current assets: -- Cash and cash equivalents $943,308 $809,412

-- Restricted cash $77,396

-- Accounts receivable, net $80,555 $90,157

-- Other current assets $7,786 $8,881 Total current assets $1,109,045 $908,450 Noncurrent assets: -- Capital assets, net $239,809 $336,411

-- Restricted investments $17,631 $16,905 Total noncurrent assets $257,440 $353,316 Total assets $1,366,485 $1,261,766 LIABILITIESCurrent liabilities: -- Accounts payable $9,710 $4,230

--Accrued vacati on $34,883 $27,066

-- Deferred revenue $97,172 $10,719 Total liabilities $141,765 $42,015 NET ASSETSInvested in capital assets $239,809 $336,411

Restricted:

-- Nonexpendable $14,471 $14,471

-- Expendable - operati ons $77,396

Unrestricted $893,044 $868,869 Total net assets $1,224,720 $1,219,751 Total liabilities and net assets $1,366,485 $1,261,766

Host of American Public Media’s Marketplace Kai Ryssdal.

Marketplace is public radio’s daily magazine on business and economics news “for the rest of us.” Airing on KNAU weekday

aft ernoons at 3 with an encore broadcast at 7 PM.

KNAU’s complete audited fi nancial statements are available at www.knau.org.

KNAU had positi ve fi nancial performance in fi scal years 2008 and 2007. In 2007, revenues exceeded expenditures by $54,027, with two noteworthy events, the sale of translator permits and management fees from KAWC Yuma, contributi ng over $158,000 in one-ti me revenue. In 2008, revenues exceeded expenditures by $4,969. During the year, KNAU received bequests and restricted major gift s of $124,797, which substanti ally contributed to our positi ve fi nancial performance. KNAU faces signifi cant fi nancial challenges in 2009 and 2010. Our goal is to maintain the highest quality of news and programming to serve northern Arizona.

14

REVENUES AND EXPENSES (For years ended June 30, 2008 and 2007)

In-kind contributions

2%

Membership21%

Bequests/Major Gifts6%

Grants and contracts

13%

Other income<1%

NAU donated facilities &

admin15%

Underwriting22%

21%appropriation

NAU

Programming & production

42%

Broadcasting12%

Management & general

13%

Management & general donated

13%

Fundraising10%

Underwriting10%

REVENUES 2008 2007

Operating Revenues:-- Underwriti ng $488,344 $470,611

-- In-kind contributi ons 36,903 49,295

-- Grants and contracts 293,006 291,468

Total Operating Revenues $818,253 $811,374 EXPENSES

Operating expenses:

-- Program services

-- Programming and producti on $934,218 $900,866

-- Broadcasti ng 273,237 216,027

-- Public radio stati ons assistance 1,062 89,098

--Total program services $1,208,517 $1,205,991

-- Supporting services

-- Management and general $567,951 $510,893

-- Fundraising 218,431 170,007

-- Underwriti ng 210,428 210,002

--Total supporting services $996,810 $890,902 --Total Operating Expenses $2,205,327 $2,096,893 Operating Loss ($1,387,074) ($1,285,519)NON-OPERATING REVENUES

General appropriati on from NAU $471,738 $446,745

Donated faciliti es and administrati ve support from NAU

318,714 282,963

Subscripti ons and memberships 469,042 424,486

Bequests and restricted major gift s 124,797

Other income 7,752 185,352

Total Non-operating Revenues $1,392,043 $1,339,546 Increase (Decrease) in Net Assets $4,969 $54,027 Net Assets - Beginning of Year $1,219,751 $1,165,724 Net Assets - End of Year $1,224,720 $1,219,751

(Note: Depreciation expense FY08 - $96,602; FY07 $82,576)(Note: Other income FY07 includes $85,551 KAWC Yuma management and $72,817 from sale of translator permits)(Note: Management & general expenses inclusive of $282,158 & $250,425 FY08 & FY07 respectively, in NAU indirect administrative support)

Revenues

Expenses

15

KNAU is honored to partner with the following community businesses and organizati ons and gratefully acknowledge their help in making public radio available throughout northern Arizona.

COMMUNITY PARTNERSHIPS

Afi cionado FramingAlbertsonsAlti tudes Bar and GrillAlyeska ResortArboretum at Flagstaff Arizona Classical TheatreASU GammageAVDomoti csBasha’sBest BuyBiff ’s BagelsBig Brothers Big SistersBig Foot BBQBlack Bean BurritoBookman’s Entertainment ExchangeBrixBuster’s RestaurantCafé EspressCampus Coff ee BeanCellular One of Show LowChamber Music SedonaCoconino County Parks & Recreati onCrown Railroad CaféDeluxe Corporati onFlagstaff Alpine and Snowboard TeamFlagstaff Chamber of CommerceFlagstaff Festi val of ScienceFlagstaff HondaFlagstaff Medical CenterFlagstaff Medical Center Foundati onFlagstaff SymphonyFratelli’s PizzaGrand Canyon Associati on Grand Canyon Music Festi valGrand Canyon Nati onal ParkGrand Canyon Railway (Xanterra)Grand Canyon RotaryHassayampa Insti tute for Creati ve Writi ngHorizon AirJ.W. Kiekhefer Foundati onJosephine’s RestaurantLiteracy Volunteers of Coconino CountyMacy’s European Coff ee HouseMain Street CateringMargaret T. Morris Foundati onMountain HeartMountain Oasis

Museum of Northern ArizonaNati onal Bank of ArizonaNAU BookstoreNAU Marketi ngNAU University AdvancementNon-Profi t Resource Center of Northern ArizonaOrpheum PresentsPepsi-Cola Bott ling CompanyPickin’ in the PinesPine Mountain AmphitheatrePrescott Chamber of CommerceRadisson Woodlands HotelRed Rocks Music festi valResidence Inn by Marriott , Prescott Rhythm and RootsSalsa BravaSedona Chamber of CommerceSedona Film Festi valSedona Jazz on the RocksSedona Public LibrarySpringhill Suites by Marriott Telluride Jazz Celbrati onThe Rose Restaurant

RadioActi ve Anne Crossman driving the KNAU Earth Notes Honda Civic Hybrid (Courtesy of Flagstaff Honda) in the Flagstaff 4th of July parade.

AU is honored to partratefully acknowledge th

AfiA

ltiye

oretClassical Theatre

co

c

TheatrikosToucanet Coff eeUnitarian Universalist Fellowship of Flagstaff Village Inn

KNAU also wishes to thank the many businesses and organizati ons throughout

northern Arizona that parti cipate in our pledge

drives through donati ons of thank-you gift s, answering phones, and coming on-air.

Special thanks to Flagstaff Medical Center for their conti nued support.

16

KNAU shares programming with two powerful tribal stati ons. KGHR in Tuba City on the Navajo Nati on and KUYI on the Hopi Reservati on rebroadcast porti ons of KNAU’s day, allowing the citi zens of northeast Arizona regular access to NPR News. We off er them technical and organizati onal support and are proud of our relati onship with Nati ve broadcasters.

Cottonwood

91.7103.3102.789.3

88.7 102.5 90.389.3 93.5106.1 90.7 105.3

Flagstaff & SedonaCott onwood & Verde ValleyGrand CanyonKingmanPaysonPrescott Show Low & White MountainsVernon/Concho

Classical Music

News and Talk

Flagstaff & PageCott onwood & Verde ValleyPagePrescott

Arizona Public Radio Network

REACHING RESERVATION LANDS

Rebroadcast

88.191.3

KUYI Hopi Radio, Keams CanyonKGHR, Tuba City

Commentator Scott Thybony writi ng on the Navajo Reservati on. Each month Thybony gives Arizonans an enhanced understanding of our unique region - the land, people, cultures, languages, and traditi ons - through vibrant storytelling and thoughtf ul refl ecti on.

KNAU Staff - From left : Gillian Ferris Kohl, Mark Herz, Brian Sanders, Moira Clark, Lisa Skinner, Daniel Kraker, Annie Kuchler, Laurel Morales, and John Stark. Front Row: Elta Foster, Liz Gumerman, and Andrea Long. (not pictured: Theresa Bierer, Brad Nolan, and Shelly Watkins) (Photo by NAU Marketi ng)

Graphic Design: Lisa SkinnerFebruary 2009

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