The government has decided that the attached conditions are to apply as appropriation conditions in 2014 for Swedish Radio.

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1 GOVERNMENT OFFICES OF SWEDEN Ministry of Culture For information, the Board/89 Government Decision Ku2013/2310/MFI (partial) Ku2013/2531/MFI Arrived SR/PRS :E02 Swedish Radio Stockholm Appropriation conditions for 2014 regarding Swedish Radio 1 Appendix The government has decided that the attached conditions are to apply as appropriation conditions in 2014 for Swedish Radio. On behalf of the Government [Signature: illegible] Lena Adelsohn Liljeroth [Signature: illegible] Martin Persson Copy to: The Swedish Parliament, The Culture Committee Ministry of Justice/L6 Ministry of Finance/BA Ministry of Enterprise, Energy and Communications/MK Ministry of Culture/KO National Debt Office Swedish Broadcasting Authority Auditors Management Foundation for Swedish Radio, Swedish Television and Swedish Educational Broadcasting Company Swedish Television Swedish Educational Broadcasting Company Radiotjänst i Kiruna AB Mailing address Switchboard ku.registrator@regeringskansliet.se Stockholm Visiting address Drottninggatan 16 Telefax

2 1 APPROPRIATION CONDITIONS REGARDING SWEDISH RADIO Appendix Appropriation Prop. 2012/13:164, reg. 2013/14:KrU3, gov. comm. 2013/14:60 Funding SEK Funds are paid from the broadcasting activity s profit/loss account (broadcasting account) held at the National Debt Office. Funds in the broadcasting account are managed by Radiotjänst i Kiruna AB (RIKAB) in accordance with the agreement between the state and RIKAB (government decision on 4 December 1997). Funds to Swedish Radio (SR) are paid out upon request. The funding is paid out monthly in advance. It can be drawn at the earliest on the 7th day of each month. Conditions Appropriation conditions enter into force on 1 January 2014 and are valid until 31 December The government stipulates that SR s allocation of funds is to be consistent with the following conditions. Financial conditions 1. SR is to within the available economic framework prioritise as appropriate in order to fulfil the task. Activities within the scope of the task are to be carried out efficiently. SR is to take measures aimed at increasing efficiency and productivity on a regular basis. One aspect of this is the establishment of new areas of collaboration with Swedish Television (SVT) and Swedish Educational Broadcasting Company (UR). 2. The funds are to be used towards the company s core activity, that is, the production and transmission of radio programmes to the general public. The funds are also to be used towards supplementary activities where appropriate, that is, activities aimed at developing and supporting the core activity, and enhancing opportunities for the general public to assimilate this. 3. Ancillary activities to SR s broadcasting organisation are to bear their own costs, and be run in a competitively neutral manner in relation to other

3 2 companies providing similar services. Ancillary activities are to submit their own accounts, with an income statement, and if required by good accounting principle, a balance sheet for these business activities. The accounts are to constitute part of the annual report, which is reviewed by the auditors. 4. SR together with SVT and UR are to allocate funds for RIKAB 's costs in proportion to the size of each programme company s funding allocation from the broadcasting account. 5. SR as partner to RIKAB has responsibility for ensuring that RIKAB collects radio and television fees on behalf of the state, and conducts fee inspections as well as having responsibility for managing the broadcasting funds. Activity 6. SR s transmissions are to be able to be received by the general public in the absence of conditions relating to special payment. 7. SR is to participate in the technical development of radio production and distribution technology. To reach listeners, it is essential that the core activity is accessible on different platforms. The offer is to be designed in such a way that as many people as possible are able to assimilate the services and programmes. SR is to exercise caution before investing in unproven technology or technology to which not all listeners have access. 8. SR is to distinguish between core activity and supplementary activity and maintain a sound balance between them. Supplementary activity is to be based on and clearly linked to the core activity. Ancillary activities are not to be of a specific type or nature that they may risk infringing on the core activity or damage confidence in the public service of radio and television broadcasting. 9. New permanent programme services or other more important services within the framework of the core activity and supplementary activity that SR wants to launch are to be reported to the government for approval. This application is also to be sent to the Swedish Broadcasting Authority. The application is to be detailed and clear, and contain all the information deemed necessary for a

4 3 preliminary trial. It is to, as far as possible, be designed to serve as a basis for open consultation. The application is to contain: - a detailed description and justification of the service based on the value of the service to the general public and relevance of the task as a public service - an account of what the service provides in relation to own existing offers and those of others, - a description of how the service affects the rest of the business activity, for example in relation to financial consequences - an account of the target group and predicted consumption by the population, - details of the planned launch and expansion, - an assessment of the service s market impact, for example, in regards to which players are affected and how, and - a brief summary of the aforementioned. Application for a preliminary trial is not required: - if the activity runs for a maximum of 12 months, - if the service is limited geographically or in relation to the public, or - if the aim of the service is to gain experience or knowledge of a new technology or innovative service. 10. Agreements between SR, SVT and UR concerning investments into minority languages and sign language as well as for people with impairments are to be sent to the Government Offices (Ministry of Culture) and the Swedish Broadcasting Authority before the start of the financial year. 11. SR is to run the concert house activities in Berwald Hall through Swedish Radio s symphony orchestra and the Swedish Radio Choir. The quality of these activities is to be enhanced. Organisation 12. SR is to run a decentralised organisation which creates favourable conditions for independent decision-making on a regional and local level. The local and regional organisations are to be given sufficient resources to effectively reflect each area s character and individuality. The organisation is to be designed

5 4 with the aim of allowing a high presence of people from the countryside with knowledge of and connection in the different regions. 13. The proportion of public production of SR's nationwide broadcasts produced outside Stockholm is to reach at least 55%. 14. SR is to, in dialogue with external production companies, ensure that the company organisation for purchasing and ordering of external production is characterised by clarity. 15. SR is to strengthen its cooperation with UR regarding the allocation and placement of air time for UR 's programmes so that they achieve a broader impact. If disagreements between the companies arise, the issues are to be dealt with through an arbitration board in accordance with the Swedish Arbitration Act (1999:116). 16. The State may, in the event of a termination of SR s licensing, redeem buildings, furnishings, equipment, fixtures and installations that belong to SR. If it is not possible to reach an agreement about the redemption amount, a decision is to be reached by three appraisers appointed under the Swedish Arbitration Act (1999:116). SR is to ensure that any company decided by the State is able to take over the premises rented by SR without special compensation. SR acknowledges that staff employed within programme activities may enter into employment in such a company at the latest by the time authorisation has expired. Accounting and auditing 17. SR is to, by 1 March 2014, submit budget figures to the Government Offices (Ministry of Culture) prior to the Government s proposal to the Swedish parliament regarding the allocation of funds for The budget figures are to contain the accounts for business carried out and for SR s business plans. SR together with other partners of RIKAB is responsible for also ensuring that accounts regarding RIKAB s business activity are enclosed with the budget figures. RIKAB is to, no later than 1 March 2014, submit an annual report for its radio broadcasting in 2013 to the Government Offices (Ministry of Culture). The report is to contain an account of the effects of fee inspections. SR is also to specify within the budget figures to what extent the company plans to invest in external radio production. 18. SR is to follow up and account for how the public service task has been fulfilled during 2014, according to the licensing conditions, appropriation

6 5 conditions and other decisions by the government communicated with the support of the Radio and Television Act (2010:696). The accounts are to be submitted to the Government Offices (Ministry of Culture) and the Swedish Broadcasting Authority by 1 March SR is to account for all operational and programme areas and how it ensures that all operations meet the requirements specified in the licensing and appropriation conditions. SR is to in particular account for: - the company s income besides fees - how the company has ensured its independence in indirect sponsorship, - which commercial collaborations the company has participated in and the income they have generated, and - any ancillary activity conducted by the company. SR is to report new programme services or other services of greater importance within the framework of its core activity and supplementary activity launched during the course of the year. This applies regardless whether or not the services have been registered for authorisation in accordance with paragraph 9. For services that have been launched on a trial basis, the extent of the intended trial period is to be stated. SR is to report and comment on how the task has been executed with respect to volume, expenditure, income and key ratios of efficiency and productivity. Cooperation and efficiency measures are to be reported in the accounting records. Programme statistics are to be designed in such a way that comparisons can be made over time. The accounts are to indicate the different programme categories share of total transmission time, when different programme types are transmitted, and resource consumption for each category. The accounts are to also indicate the number of listeners and public reaction as well as the company s plans for the coming years. SR, SVT and UR are to collectively prepare their accounts focusing as far as possible on achieving a uniform reporting platform which can be implemented for the 2014 accounts. The work is to include the definition and operationalisation of key concepts in the licensing and appropriation conditions, development of concrete and monitorable result measures based on these, and to develop efforts to measure and account for different indicators of quality and distinction in their programme offering. The result measure is to be designed to provide significant information about the task

7 6 and convey important business experiences. The programme companies are to in different ways stimulate an on-going public debate about the business. 19. SR is to ensure that the company s auditors are given the opportunity to review the company's accounts in accordance with paragraph 18, the budget figures and, where appropriate, specific accounting of special government decision tasks. Statements about such audits are to be made in a specific auditor attestation submitted to the Government Offices (Ministry of Culture).

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