How COVID-19 will impact AAM audits and reporting

Posted

The coronavirus is impacting many AAM clients’ ability to conduct daily operations and adhere to AAM’s rules and guidelines. To help address some of the concerns, the Alliance for Audited Media has created a list of frequently asked questions. AAM will continue to provide further guidance as the situation progresses and it gains a better understanding of how the media industry is impacted.

General Notes

  • Many publications are experiencing reduced circulation due to the impacts of the coronavirus. To provide greater transparency to buyers, publishers may explain how the pandemic impacted their circulation in the applicable publisher’s statements and quarterly data reports.
  • If national or regional mail service is disrupted, AAM will issue further guidance.
FAQs for News Media

Posted 3/27/2020

If I extend past the 90 days allowance for arrears, I’ll eventually be over the 4% allowance. Will I have to adjust for this overage, or will an exception be granted due to the impact of the coronavirus?
Newspapers that exceed the 4% allowance due to service of grace copies beyond the 90-day threshold during the coronavirus pandemic, can claim all copies as paid circulation. When the bad debt is recognized as part of the normal accounting cycles, you may need to modify the 4% disclosure to reflect the impact of the coronavirus in future quarterly data reports.

How will March 2020 quarterly data reports note any changes due to the coronavirus?
Below are explanations to use for filing March 2020 quarterly data reports, if applicable to your circulation.

Miscellaneous — U.S.
Due to the disruption of normal business activities created by COVID-19, the following exceptions to AAM’s qualification and reporting standards are applicable for this reporting period:

  • The 10-day limit for omitted days will not apply for the period of 3/09/20 to 3/31/20 the period-end date, by exception to AAM Rule C2.7.
  • The arrears copies served in excess of 4% for the period 3/09/20 to the period-end date, are allowed by exception to AAM Rule C5.18.
  • The expected distribution or delivery of print copies was negatively impacted for the period 3/09/20 to the period-end date.


Miscellaneous — Canada
Due to the disruption of normal business activities created by COVID-19, the following exceptions to AAM’s qualification and reporting standards are applicable for this reporting period:

  • The 10-day limit for omitted days will not apply for the period 3/09/20 to the period-end date, by exception to AAM Rule C102.5.
  • The arrears copies served in excess of 4% for the period 3/09/20 to the period-end date, are allowed by exception to AAM Rule C105.17.
  • The expected distribution or delivery of print copies was negatively impacted for the period 3/09/20 to the period-end date.


For ZIP code reporting, if a newspaper typically selects a date from the last two weeks of the quarter, can other dates be selected? If my system does not allow for the selection of past dates, can the analysis be projected for a “normal” day(s)?
Yes, newspapers can select any representative day within the quarter or project the analysis based on a “normal” days distribution.


My newspaper has received requests for access to digital NIE copies from teachers and students in districts that have implemented at-home or online learning. Can I provide these copies and claim them as qualified circulation?
Yes. For those school districts that have moved to an at-home or continuous learning model, teachers and students may specifically request digital service. Those copies may be reported as qualified educational copies. For the audit, please maintain documentation showing the school district’s at-home or online learning mandate and the teacher or student request. Once the normal school year resumes, the digital NIE program should cease.


We would like to serve copies to nursing homes in the area. Where is that circulation reported?
Copies served to nursing homes are reported as verified home delivery.


Posted: 3/20/2020

Currently, AAM allows 10 days to be omitted from circulation averages. Will that be expanded?
Yes. Beginning March 9 and continuing until normal business activity resumes, publishers may omit any day from circulation averages provided there is a 5% variance from the preceding typical day. Any omitted days during this period will not apply to the 10-day limit.


Can news media organizations serve grace copies beyond the 90-day limit and beyond the 4% threshold?
Yes. We understand implications of the coronavirus may impact your ability to effectively work expiring subscriptions and renewals in a timely manner. Beginning March 9 and continuing until normal business resumes, the 90-day and 4% limits on grace and post-expire copies is suspended so that copies served on qualifying orders and subscriptions may count as paid circulation.


Many employees are now working from home and are unable to access their print employee copies. Can we serve digital copies to these individuals?
Yes, please serve remote employees digital copies. These copies may be claimed as qualified circulation — employee copies.


Can I substitute digital copies to print subscribers?
Yes. We understand that many production departments and delivery forces are being overwhelmed by the coronavirus and are unable to deliver print copies to paid subscribers. Digital copies may be served as replacements for print paid subscriptions provided the publisher maintains records showing the subscriber was notified of the conversion and is able to access the digital copy. If subscribers decline the digital service, they must be excluded from the circulation claims. Once normal business resumes, the subscription must be reverted to print.

If you have any other questions or concerns regarding Covid-19's impact on your audit or reporting, please contact the Alliance for Audited Media.

Alliance for Audited Media