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254 the primary reason for CPB's existence. The federal government IS prohibited under the U.S. Constitution from engaging in actlvitles uhlch could constraIn the First Amendment rights of broadcasters. Because of the potential for such prior restraint that is associated with providing money to public broadcasters in the United States, the federal government was forced to create a totally private organization through which to channel the federal contribu-bution and to which to give instructions on how that contribution was to be used. That entrty IS the Corporation for Public Eroadcastlng and its status as a non-governmental entity is paramount In Its ability to execute the obligations of the Public Broadcasting Act. Flnally, in 47 U.S.C. 398(a) the Public Broadcasting Act addresses exactly the point that is relevant to the exercise of control by federal law or federal agencies over CPB. That provtsion provides that "[nlothing contained in section 390 to 399 of this title shall be deemed . ..to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over public telecommunications, or over the Corporation or any of Its grantees or contractors, or over the charter or bylaws of the Corporation, or over the curriculum, program of instruction, or personnel of any educational institution, school system, or public telecomunfcations entity.' Similarly, in 47 U.S.C. 398(c) provides: "Noting in this section shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any dlrection, supervision, or control over the content or distribution of public tele- corrmunications programs and services, or over the curriculum or program of instruction of any educational institution or school system.' The legislative history that accompanies the passage of the 1961 Act and its amendments is replete with references to the absolute necessity for CPE to be a non-governmental entity. These references reflect the basic philosophy undergirding the creation of the Corporation as described In the Report of the Carnegie Coemsission on Educational Television entitled: Public Television - A Program for Action, that formed the basis for the Public Broadcasting Act. In sunnary, these multiple references to CPB's statutory authority make it clear that CPB is not to be an entity of the federal government or subject to those laws and regulations which are prescribed for federal entities. Instead, when Congress felt the need to impose certain restrictions or regulations on CP6, it chose to do so by specific amendment to the Public Broadcasting Act, not by extension of federal law to public broadcasting. Therefore, in responding to the specific questions of Enclosure I, I will be referring to this cover letter as a means to explain the reason for CPB's position that the Corporation is not subject to the statutory requirements listed in each question. -1 .4
-..- .- 1 II. ,- c 255 In addition, I am providing a document which reflects the review of Enclosure II (items 16.a. through 34) by CPB's Director of Financial nanagement, Richard M. Morrison. Since the original Enclosure II questionnaire was prepared by someone other than CPB (presumably by GAO), Mr. Morrison could not verify or update responses -- the origin of which was unclear to him. The balance of Enclosure II is revlewed at the end of CPB's responses to Enclosure I. please feel free to call me directly if you have any questlons Sincerely, , Paul E. Symczak / J' Vice President, General Counsel and Secretary
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i -=----A 1ooTIi CONGRESS ( 2nd Sew
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. . PREFACE TO assist In fulfilling
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. . r-- 1 q The Honorable Jack Broo
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- _- -_ r I PROPILRS OF EXISTING GG
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- _. -~ .-.- -.r February 24, 1945,
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. dmvalopad the inVOntOry Of gOvOmm
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Savoral fadaral antitime v8re omitt
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.-- . -.- ._ _ r .A . varioua iaau~
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11 GAO concluded in its rapoti that
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13 (2) the organization of the exec
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Maal statu wholly owned corporation
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Central Bank for Cooporativas Commo
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Rural Tmlmphono Bank 19 Saint Lavro
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_ ..-- -_-.. _ .- IT==- -7 21 CORPO
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B Ram: Norm RBPAmmlT To wvmlamm: No
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25 CORPORATION PROFILE APF'ILIATED
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._ -- -_- - r- 4 . INsuRANcN SOLD:
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-~ _/ -. -_- _ r=- ‘a . 29 NANE:
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IOANS OUTSTANDING: None 31 IBAN UNI
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. 33 NANE: Consolidated Rail Corpor
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p: . L - 35 CORPORATION PROFILE LIT
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. mw BORROKING: Nom 37 REPA- To Cog
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39 CO~RATION F’ROIII.8 h. In Apri
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c d . 41 CORPORATION PROFILE CPB mD
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. LIABILITIES: $54,261,096 TOTAL DE
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- _~ --- - 45 CORPORATION PROFILE ~
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47 CORPORATION PROFILE EXIM INSURAN
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. h. calculated as: 49 Repayment8 o
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. _.A - r- -4 . 51 CORPORATION PROF
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_ . I-=- ‘4 c- 53 ~RF'ORATION PXO
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.- - -. - r 4 . TOTAL EQUITY: Sl.sa
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57 CDReoRATIOd PROFILE PcB*(Fl58~ A
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-. K 59 COWORATION PROFILE PCBslPLB
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1 61 CORFORATION PROFIIA PANC REPOR
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63 TREASURY STATQS: None specified
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TOTALI~ T EXPENSE: $544,526 INTXRES
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4 . . CDRPDRATION PROFILE PCIC AFFI
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. I---. 4 LDANS OUTSTANDING: Nona 6
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A . e. Total revenue ie comprised o
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---=--d L 73 CORPORATION PROFILE AF
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-.- 75 INSURANCE OUTSTANDING: $1,70
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77 NANR: Federal Financing Bank (FF
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. -. A . GNANTS ISSUED: None LOANS
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NOTES : 81 CORPORATION PROFILE FFB
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83 CORPORATION PROFILE AFFILIATED A
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I --i L GUARANTEE LIXIT: Nons speci
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8’7 NANE: Fedsral Home Loan Mortg
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c 92-133 IBM.5 OUTSTANDING: $12,258
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-. -.- . IL- i . . . f. 9. h. 1. k.
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I c 93 CORPORATION PROFILE EiA BtJX
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P . TOTAL DEBT: $4,112,600,000 GOD
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--- c . CORPORATION PROFILE PLE!& F
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. NOIZS: a. Although l mtmblimhmd J
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r .--1 . c 101 CORPORATION PROFILE
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. I 4 . 103 CORPORATION PROFILE cov
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I ---1 . c 105 NAbDZ: Federal Primo
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EXPENSES: $306,547,300@ HET INCOXE
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I: c 109 NANE: Federal Ro88~e Banks
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I L ---+ . APPRDPRUTIONS KXPQ#DBD:
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c.Calculated as: 113 Total current
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~- --_ I. -4 -i L . 115 CORPORATION
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c ---i L 117 coRpoRATI0N PRDPILS F-
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119 c-The Corporation ha8 establish
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-- -_-. .- r .--- L 92-133 121 CORP
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GOD EQUITY: Nona APPNOPN.UTIONS To
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NANR: Gallaudat University (CL')" 1
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I c . 127 CO~RATIDNPROIILE ACWONTIN
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c 129 CORPORATION PROFILE C. In acc
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131 NM: Government National Mortgag
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-- - I. c 133 CORWRATION PROFILE AC
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135 --Gm periodically monitors the
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. 137 CORFORATION PROFILE AF?IL,IAT
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I .J c APPROPRIATIONS To XQUITY: No
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I : c - . 141 COWORATION PROFILE IM
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f 143 cQRPORATIOW PPDPILS IM CovHIl
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145 support CORPORATION PROFILE. Is
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c . LOANS OUTSTANDING: None 147 IBA
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149 NAME: National Consumer coopera
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. Itxvmas: S24,580,915 APPRDPRSATIO
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; 2 c 92-133 . 153 ~R,PORATION PROF
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c ; c 155 CORPORATION PROFILsE RKPO
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1-T PNDW%XRS: None INTPLRSST RECEIV
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c 159 CORPORATXON PROFILE ae REPORT
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. AppRopRuTI0149 To EQux7-r: None O
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-i L 163 CGRPOPATION PROFILE NED PI
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c . 165 NANE: National Fish and Wil
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_- .-_--- I MSDRANCB LDQT: Non0 am
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169 APPILIATRDACWCIRR: Npp may util
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c LIABILITIES: $578,447 T'XAL DEBT:
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II , c 173 Nm: National Railroad Pa
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c 175 CORPORATION PROPILE RxPoRTRlG
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I: - c GOVENKENT LI)AN LIMIT: us.d)
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I ; -4 c 179 CORTORATION PROFILE g.
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t 181 ADVISORY BOARD IIQIBgR9: Not
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---- I -4 B INVEST: Nom LIABILITIES
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I c 92-133 . BUDGET STATUS: On-budg
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AS3El-S: 51,207,493,000 187 Go- 1wv
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I - . 189 NANR: Pennsylvania Avenue
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- .-- c 191 APS~ROPRUTIONS -ED: $2,
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c r -- I . 193 NANB: Pension Benefi
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195 CORRXATION PROPILB PBGC FINANCI
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c I I -- NOTES: 197 CORPORATION PRO
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. 199 CORPORATION PROFILE Pea FINAN
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NCTES : 201 CORPORATION PROFILE a.A
Page 211 and 212: 203 COmRATION PROFILE ecra TREASURY
Page 213 and 214: NANR: Rural Telsphone Sank (RTB) 20
Page 215 and 216: - --a r. .1 L 4 m: $119,422,986 APP
Page 217 and 218: i c. c 209 CORPORATION PROFILE HAHN
Page 219 and 220: --.-- [:. . 211 CDRPOpATION PROFILE
Page 221 and 222: c 213 INTEREST RECXIVED: 5594,437 (
Page 223 and 224: c c 215 CORWRATION PROFILE REPORTIN
Page 225 and 226: I F~-- z c 92-133 . TOTAL INTaB T E
Page 227 and 228: I -- c . 219 CORPORATION PROFILE AP
Page 229 and 230: c . B BORROWING: Nom 221 RBPAYWWT T
Page 231 and 232: c 223 NANR: T~~A8888 VAlhy Authorit
Page 233 and 234: 225 CO-RATION PROFILE REPORTING STA
Page 235 and 236: 227 CORFORATION PROFILE GOVEMHENT I
Page 237 and 238: 229 k. Gov't Borroving is calculate
Page 239 and 240: I. ‘ 231 CORPORATION PROFILE USPS
Page 241 and 242: APPRoPIuATI0N8 NxPmmND: $650,000,00
Page 243 and 244: c l . Calculated as: 235 CORPORATIO
Page 245 and 246: I. --1 c 6. Trmvol and submiatanca
Page 247 and 248: 239 20. The Idual Wetar Pollution c
Page 249 and 250: 241 Llys Privacy Act of 1971 ftimbu
Page 251 and 252: 243 TahlmB. 1: N N N N N N N N N N
Page 253 and 254: I -- . 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Page 255 and 256: c S S S A S N A N A S A A S N S N S
Page 257 and 258: c 92-133 - 89 - 9 N N N N N N N N N
Page 259 and 260: I -- . w 0. 1: 251 -7
Page 261: I I - . c . 253 Volume 2 of the Man
Page 265 and 266: I. I 4 a. 5.a. 6.a. b. d. b. c. 7.a
Page 267 and 268: 1l.a. b. C. 1Z.a. d. b. c. d. 13.a.
Page 269 and 270: c . 19.a. 20.a. d. 21.a. b. C. 22.a
Page 271 and 272: t 263 the first day of the fiscal Y
Page 273 and 274: - _ c BUM;ET STATUS TREASURY STATUS
Page 275 and 276: -- L . LOANS ISStKD LOANPAYMENTS RE
Page 277 and 278: i L TOTAL EQUITY GO- EQUITY APPROPR
Page 279 and 280: . 271 Export-Inport Ban)LoF the Uni
Page 281 and 282: c 92-133 Fedaral Houaing Addnistrat
Page 283 and 284: IntU-AwriCm Foundation 1515 WileOn
Page 285 and 286: i I 4 . i Neighborhood Reimeetmnt C
Page 287 and 288: Tennessee Valley Authority 400 w. S
Page 289 and 290: Little r , --4 , . 281 League Baseb
Page 291 and 292: I i . c Gallaudot Uniwr8ity........
Page 293 and 294: APPENDIX G GOVERNMENT CORPORATION C
Page 295 and 296: _ _. .~-- I c .
Page 297 and 298: c 289 ((It6 lTILE SI-MONEY AND RNAN
Page 299 and 300: . 291 O~IOI TITLE ll-MONEY AND FINA
Page 301 and 302: - - . 293 UNITEDSTATESCODE 1982 EDI
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t . (Added Pub. L. 00-571. Utlc II.
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t . 31 0 7506 MOSEEY AND F[yASCE 80
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I- .& II 299 31 8 9105 MONEY AND FI
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i L [I 301 . 31 #9110 MONEY -AND FI
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