	Background

Middle East Broadcasting Networks, Inc. (MBN), which includes the  services Radio Sawa and Alhurra, is an independent nonprofit grantee  overseen by the Broadcasting Board of Governors (BBG). However, MBN has not developed a long- term strategic plan that fully addresses its operational and competitive  challenges. MBN operates in the competitive Middle Eastern satellite television market  that has over 140 channels. Although MBN has conducted some planning exercises, it lacks a long-term  strategic plan and a strategic approach that outlines (1) a shared vision of  operations for Alhurra and Radio Sawa, (2) detailed implementation  strategies to achieve measurable outcomes for its goals, and (3) the  competitive challenges it faces and how it plans to address its key  challenges to broadcasting in the Middle East. Further, BBG officials have said  MBN is still learning about the Middle Eastern media market. However, MBN has not fully implemented several of the Grant  Thornton review’s key recommendations related to its control  environment, including (1) establishing an internal control board to  formally develop its controls and coordinate audits, (2) preparing an  internal control plan, (3) conducting a risk assessment to address potential  risks to its operation, and (4) developing a training program for its staff. MBN faced some initial challenges in establishing its internal control  structure. MBN Lacks Comprehensive, Regular Program Reviews to Determine Compliance with Mission and Journalistic Standards

The BBG’s main mechanism to determine whether its broadcasting services  comply with its mission and journalistic standards is a regular program  review, which is designed to improve programming and ensure quality  control. BBG Has Developed Several Performance Indicators, Although Weaknesses in Audience Surveys Call into Question Whether MBN Audience Size and Credibility Targets Have Been Met

The BBG has established several standard performance indicators and  targets for MBN programs, including measures of audience size and  credibility; however, it has not implemented some performance indicators  fully, including a program quality measure. Additionally, we were unable to  determine the accuracy of MBN’s audience size and program credibility  estimates due to weaknesses in MBN’s methodology and documentation. Therefore, it is not clear whether the Radio Sawa and  Alhurra performance targets have been met. Although MBN has developed a number of financial and administrative  controls, it could take additional steps to ensure its system of internal  control is fully implemented. In particular, the BBG did not take certain steps that could have  explained and increased the reliability of its estimates, such as by fully  documenting its research methods, measuring the level of uncertainty  surrounding its estimates, disclosing significant limitations, limiting the  scope of its projections to areas actually covered by its surveys, and  developing and consistently implementing policies and procedures for  verifying data. We did not test MBN’s editorial procedures. 4.
Why GAO Did This Study

The Broadcasting Board of Governors' (BBG) broadcasting services, Radio Sawa, and the Alhurra satellite television networks--collectively known as the Middle East Broadcasting Networks, Inc. (MBN)--currently aim to reach Arabic speakers in 19 countries and areas throughout the Middle East. Annual spending for current activities amounts to about $78 million. GAO reviewed MBN's (1) strategic planning to address competition in the Middle Eastern media market, (2) implementation of internal control, (3) procedures MBN has developed to ensure compliance with its journalistic standards, and (4) performance indicators and whether targets have been met.

What GAO Found

MBN faces a number of competitive challenges in carrying out its mission of broadcasting in the Middle Eastern media market and has taken some steps to address them. However, MBN lacks a comprehensive, long-term strategic plan. As MBN emerges from its start-up mode and faces future challenges, a long-term strategic plan will be important. While MBN has developed financial and administrative controls to manage and safeguard its financial resources, it could take additional steps to strengthen its system of internal control. For example, the MBN has not (1) convened a meeting of its internal control board to formally develop its controls and coordinate audits, (2) completed an internal control plan, (3) completed a risk assessment to address potential risks to its operation, or (4) developed a comprehensive training program for its staff. MBN has procedures in place to help ensure its programming meets its journalistic standards. However, MBN lacks regular editorial training and has not fully implemented a comprehensive, regular program review process to determine whether its programming complies with those standards or with MBN's mission. While the BBG calls for its broadcasters to undergo an annual program review, Radio Sawa has only held one such review, and Alhurra has not completed one to date. The BBG has developed several performance indicators and targets for MBN's Radio Sawa and Alhurra services, including measures of audience size and program credibility. However, it is not clear whether the Radio Sawa and Alhurra performance targets have been met because of weaknesses in MBN's survey methodology and documentation. The BBG did not take certain steps that could have explained and increased the reliability of its estimates, such as by fully documenting its research and estimation methods, measuring the level of uncertainty surrounding its estimates, disclosing significant limitations, and consistently implementing policies and procedures for verifying data.