1. Introduction
2. Consolidated Statement of Financial Position
   
3. Consolidated Statement of Activities
4. Consolidated Statement of Functional Expenses
   
5. Consolidated Statement of Cash Flows
6. Notes to consolidated financial statements

We have audited the accompanying consolidated statement of financial position of Minnesota Public Radio and subsidiary, an affiliated organization of Minnesota Communications Group (MCG), as of June 30, 1996 and the related consolidated statements of activities, functional expenses and of cash flows for the year then ended. These financial statements are the responsibility of the management of Minnesota Public Radio and subsidiary. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the consolidated financial position of Minnesota Public Radio and subsidiary as of June 30, 1996 and the consolidated results of their activities, functional expenses and their cash flows for the year then ended, in conformity with generally accepted accounting principles.

As discussed in Note 1 to the consolidated financial statements, in fiscal 1996, Minnesota Public Radio and subsidiary changed their accounting for contributions received and their basis of financial statement presentation to conform with Statements of Financial Accounting Standards (SFAS) Nos. 116 and 117.

October 18, 1996