Current rules as at 20/12/2001
RULES AND CIRCULATION AUDIT
GUIDELINES FOR THE NEW ZEALAND
AUDIT BUREAU OF CIRCULATIONS
INCORPORATED
INTRODUCTION
This publication contains the Rules of the New Zealand Audit Bureau of Circulations
(Incorporated) and the New Zealand Audit Bureau of Circulations - Circulation Audit
Guidelines.
Application material and other information about the Bureau is available from:
The Executive Officer
PO Box 2741
WELLINGTON 1
Telephone: (04) 473 4405
Facsimile: (04) 471 0987
RULES AND CIRCULATION AUDIT GUIDELINES OF THE
NEW ZEALAND AUDIT BUREAU OF CIRCULATIONS (INCORPORATED)
RULES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Name
Objects
Membership
Membership Classification
Membership Insignia
Committee
Executive Officer
Officers
Meetings
Voting
Termination of Membership
Reinstatement of Membership
Change of Rules
Finances
Fees and Levies
Auditors and Audit Procedures
Audit Reports
Circulation Summaries
Statements by Members
Common Seal
Copyright in Material
Notices
Appointment of Liquidators
CIRCULATION AUDIT GUIDELINES
1.
2.
3.
4.
5.
Introduction
Scope of the Audit
Auditors Duties
Audit Periods
Audit Figures
A.
Newspapers (daily, non daily and weekly)
B.
Magazines
C.
Community Newspapers
D.
Bulk Distribution
RULES OF THE NEW ZEALAND AUDIT BUREAU OF CIRCULATIONS
(INCORPORATED)
Page 2
1
NAME
1.1
The name of the Society shall be "The New Zealand Audit Bureau of Circulations
(Incorporated)".
1.2
In these Rules the New Zealand Audit Bureau of Circulations (Incorporated) is referred
to as "the Bureau".
2
OBJECTS
2.1
The objects of the Bureau shall be:
(i)
to issue standardised statements of circulations of publications of publisher
members, those statements to be made in accordance with these Rules and the
Bureau's Audit Procedures;
(ii)
to disseminate circulation data for the benefit of members and to publish and
distribute to members circulation summaries of publisher members'
publications; and
(iii)
to do all such other lawful things as are incidental or conducive to the
attainment of the aforesaid objects.
3
MEMBERSHIP
3.1
Membership may be granted to
(i)
any publisher of a publication distributed in New Zealand with a circulation
capable of being audited in accordance with the Rules of the Bureau.
(ii)
any advertiser or advertising agency; and
(iii)
The Association of New Zealand Advertisers Inc and the Advertising
Agencies Association of New Zealand Inc and their members from time to
time shall be deemed to be members of the Bureau upon payment of the fee
determined by the Committee in accordance with clause 14.1.
Page 3
3.2
An applicant for membership who is a publisher shall:
(i)
nominate in writing the publication or publications to be represented by the
membership sought and provide a copy of the publication/s to the Bureau;
(ii)
maintain separate membership to represent each publication with a circulation
audited in accordance with the Rules of the Bureau; and
(iii)
pay the applicable fees and/or levies determined pursuant to these Rules in
respect of each separate membership of the Bureau.
3.3
Membership as a publisher in respect of each publication is conditional upon the
establishment and maintenance of such records as the Committee may reasonably
require to ensure the proper auditing of that publication’s circulation in accordance
with these Rules.
3.4
All applications for membership shall be forwarded with such documentation and fees as
deemed appropriate by the committee from time to time.
3.5
Applications for membership shall be considered by the Committee who may elect
applicants to membership. The Committee’s decision shall be final.
3.6
If membership is refused the Committee shall return to the applicant any fee which
accompanied the application.
3.7
The Committee shall forthwith advise in writing each applicant of its election to
membership, the class to which that member has been elected, the publication to
which the membership relates (where relevant), and the date upon which the
membership commenced. Upon election the applicant shall be bound by these Rules.
3.8
The Bureau shall issue a membership certificate to each financial member. The
certificate shall remain the property of the Bureau and shall be returned to the Bureau
in the event of termination of membership for any reason.
3.9
All member publications are required to submit a completed audit report to the
Bureau for the first applicable full audit period that occurs following confirmation of
their membership with the ABC unless an exemption is granted by the ABC
Committee.
Page 4
4
MEMBERSHIP CLASSIFICATION
For the purposes of these Rules publisher members are classified as follows:
4.1
Newspapers:
Newspapers are classified as follows:
(i)
Daily newspapers 25,000 circulation and above (see note below).
(ii)
Daily newspapers under 25,000 circulation (see note below).
(iii)
Non-daily newspapers: Newspapers published less frequently than
daily but more than weekly, but not including community newspapers.
(iv)
Weekly newspapers: Newspapers published on a regular weekly basis.
(v)
Community newspapers: Newspapers which have a reasonable content
of local news and advertising as determined by the Committee and
which are not representative of any trade and published more
frequently than monthly. Community newspapers that are obvious
supplements of daily newspapers are not eligible for this category,
even if delivered free into all households.
Note: A daily newspaper is a newspaper that is published at least six days a
week.
4.2
Magazines:
Publications which are:
(i)
magazines or periodicals published regularly and offered for sale
through recognised channels including by directed circulation or
distributed free of charge to the recipient in any manner recognised by
the Committee; and
(ii)
published principally for the readers' interest; and
(iii)
accept paid advertisements; and
Page 5
(iv)
are distributed by one or more of the following methods:
-
4.3
4.4
paid sales of single copies
bulk sales of multiple copies
directed circulation
free bulk distribution (where a proportion of a magazine’s
circulation is distributed in this manner)
The following publications are not defined as magazines for the purposes of these
rules:
(i)
publications distributed internally within any business or organisation
as in house or staff publications; or
(ii)
publications published primarily for the advertising of products or
services produced or sold by the publishers or the principals of
members.
Bulk distribution publications: Publications of any frequency where distribution in
bulk follows a consistent regular pattern and where adequate auditable records of that
distribution are maintained. There is no requirement of transmission after delivery to
the distribution point.
5
MEMBERSHIP INSIGNIA
5.1
There shall be a membership insignia in the form determined by the Bureau.
6
COMMITTEE
6.1
The control and management of the Bureau shall be vested in a Committee consisting
of fourteen (14) members, each of such members to be appointed for a term of twelve
(12) months.
6.2
The members of the Committee shall be appointed from the members as follows:
(i)
6 publisher members of the daily and non-daily newspaper publishers
(appointed by the Newspaper Publishers Association of New Zealand Inc)
(ii)
1 publisher member of the community newspaper publishers
(appointed by community newspaper publisher members)
(iii)
3 publisher members of the magazine publishers
(appointed by the Magazine Publishers Association of New Zealand Inc)
Page 6
(iv)
2 advertiser members
(appointed by the Association of New Zealand Advertisers Inc)
(v)
2 advertising agency members
(appointed by the Advertising Agencies Association of New Zealand Inc)
6.3
In the event of any vacancy occurring during the course of each twelve-month term
the organisation which has appointed the person concerned has the right to appoint a
replacement and the person so appointed shall hold office until the Annual General
Meeting following his/her appointment.
6.4
Any member of the Committee shall have power to appoint in writing a proxy from
the membership of the Bureau with full power to act for and on his/her behalf at any
meeting of the Committee.
6.5
If any association or group fails to appoint the requisite number of members to the
Committee, the other members of the Committee may appoint a member or members
to fill such vacancy or vacancies.
6.6
A quorum of the Committee shall consist of five (5) members of the Committee
present either in person or proxy.
6.7
The members of the Committee may act notwithstanding any vacancy but if the
number falls below five (5) the remaining members of the Committee shall not act
other than for the purpose of filling vacancies.
6.8
The Committee shall have full power to originate, discuss and decide all questions
relating to the business of the Bureau except those questions which must be
determined by an Annual General or Special Meeting.
6.9
Meetings of the Committee shall be held at such times as the Chair of the Committee
thinks fit or as shall be determined by a majority of the members of the Committee.
6.10
The Committee may delegate any of its functions to Sub-committees of such member
or members as are determined at a meeting of the Committee.
7
EXECUTIVE OFFICER
7.1
The Committee shall appoint an Executive Officer upon such terms and conditions as
is determined by the Committee.
Page 7
8
OFFICERS
8.1
The officers of the Bureau shall consist of a Chair and a Deputy Chair, who shall hold
office for a period of one year from the date of their election and/or until the election
of their successors. The Chair and Deputy Chair of the Bureau shall also be the Chair
and Deputy Chair of the Committee.
8.2
The Chair and the Deputy Chair shall be elected by members of the incoming
Committee and shall assume office immediately after the conclusion of the Annual
General Meeting. A meeting of the incoming Committee shall be held immediately
after the Annual General Meeting of the Bureau for the purpose of holding the
election.
9
MEETINGS
9.1
An Annual General Meeting of the Bureau shall be held at least once in every year at
such time and place as may be determined by the Chair or a properly constituted
meeting of the Committee. Fourteen (14) days prior notice in writing specifying the
place, day and hour of the meeting shall be given by the Executive Officer to each
member of the Bureau.
9.2
A quorum of an Annual General or Special Meeting shall consist of five (5) members
of the Committee present either in person or proxy.
9.3
The Chair may, whenever he or she thinks fit, and shall on a requisition in writing by
any two or more of the organisations that nominated members to the Committee
proceed to convene a Special General Meeting of the Bureau. Notice in writing of the
date and purpose of such meeting shall be sent by the Executive Officer to all
members of the Bureau at least fourteen (14) days prior to the date of meeting.
10
VOTING
10.1
Voting at all meetings shall be by a show of hands unless it is demanded by at least
one third of the members present that a ballot be taken. The Chair shall have a casting
vote.
11
TERMINATION OF MEMBERSHIP
11.1
A member may resign as a member by giving to the Committee at least three (3)
months notice in writing of intended resignation. The subscription for that
membership for the then current financial year is to be paid in full to the Bureau.
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11.2
The Committee may expel from membership or reprimand any member infringing
any of these Rules or any member which, in the opinion of the Committee, is guilty of
conduct which renders him or her unfit to be a member of the Bureau.
11.3
The Committee may expel from membership any publisher member in respect of any
of his/her publications for which an audit is not received in accordance with these
rules over two (2) or more consecutive audit periods.
12
REINSTATEMENT OF MEMBERSHIP
12.1
A member whose membership is terminated for any reason whatsoever may be
reinstated as a member by the Committee upon such conditions as the Committee may
determine.
13
CHANGE OF RULES
13.1
The Rules of the Bureau may be altered, added to or rescinded only at Annual General
Meetings or at Special General Meetings convened for the purpose of which the
required fourteen (14) days notice has been given.
14
FINANCES
14.1
The Committee shall have control of the funds of the Bureau and may open such bank
accounts as are deemed necessary. The Committee shall authorise any officer of the
Bureau or the Executive Officer to operate such account.
14.2
The Committee shall have power to borrow or raise money and to secure payment of
the same in such manner as the Committee shall determine and in particular may issue
a debenture or grant a mortgage, charge or lien upon the whole or any part of the
Bureau's property or assets.
14.3
The Committee may purchase, redeem or pay off any security or securities.
14.4
The income and property of the Bureau shall be applied solely towards the promotion
of the objects of the Bureau and no portion of the same shall be paid or transferred
directly or indirectly by way of dividend, bonus or otherwise by way of profit to any
member or members except for the provisions of Rule 23 (Appointment of
Liquidator).
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15
FEES AND LEVIES
15.1
Each member shall pay from time to time such fees or levies as may be decided and
approved by the Annual General Meeting or by a Special General Meeting convened
for that purpose, the notice for such meeting to specify the amount of the fees or
levies to be considered by the meeting. The annual fees or other levies shall be paid
in respect of each separate membership of the Bureau.
15.2
No member shall be entitled to any service provided by the Bureau or any rights or
privileges of membership unless the fees and levies chargeable to that member are
paid in full.
16
AUDITORS AND AUDIT PROCEDURES
16.1
The Circulation Audit Guidelines are attached to these Rules and shall form part of
the Rules of the Bureau.
16.2
Any auditor that a publisher company shall appoint who shall be a chartered
accountant (holding a current certificate of public practice) to carry out circulation
audits, must be a registered ABC auditor in accordance with Rule 16.2A.
16.2A Auditors wishing to carry out circulation audits in accordance with the ABC Rules
and Audit Guidelines must complete a registration form and acknowledge receipt and
understanding on the ABC Rules and Audit Guidelines.
16.2B No publisher member shall appoint an auditor who is an internal member of staff
employed within the publishing company.
16.3
In the event of any difference of opinion between the auditor and a publisher member,
the matter shall be referred to the Committee for resolution.
16.4
In the event of an audit report being challenged by a member of the Bureau, the
challenger shall set out in full his/her reasons for the challenge and the publisher
member whose audit report is challenged shall have the full opportunity to reply. This
reply must be received within 20 calendar days after it is sent from the office of the
Bureau to the publisher member concerned unless the Committee decides otherwise.
At any time during this process the Committee or the Chairman may authorise
communications to the members of the bureau or the public about the process.
The Committee shall, after considering any statements, decide on appropriate action,
which may include:(i)
A meeting of the members concerned.
(ii)
Appointment of an independent disputes auditor by the ABC.
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16.5
The Committee shall consider the evidence and make a decision on whether the
Bureau will uphold the complaint.
NOTE: The complaint will be deemed to be upheld if there is a difference of greater
than 10% between the audited circulation and the circulation from the independent
auditor. The fee for the disputes auditor will be paid by the party who loses the
complaint.
17
AUDIT REPORTS
17.1
The Committee may from time to time determine:
(i)
the form or forms in which audit reports are to be submitted to the Bureau;
(ii)
the information to be contained in audit reports and the procedures to be
adopted in the preparation of same; and
(iii)
audit procedures to be followed when auditing circulation data for the
purposes of audited reports
provided that no such determination of the Committee shall be inconsistent with these
Rules.
17.2
Each audit report submitted by publisher members to the Bureau shall be signed by
the chief executive of the publisher member concerned or such other officer as may be
duly authorised by the publisher member for that purpose. The publisher member
shall be held responsible for the accuracy of the report.
17.3
Audit reports shall be lodged by publisher members with the Bureau not more than
thirty (30) days after the conclusion of the defined audit period to which they relate.
17.4
An audit report (or any part thereof) will not be circulated to members or other
interested parties if the Committee is of the opinion that the contents of such report
cannot be verified.
17.5
No publisher member who is in arrears with any fees or levies or other monies
payable to the Bureau shall be entitled to lodge an audit report with the Bureau nor
shall his or her audit report be included in the Summary of Audited Circulations nor
shall it receive any other service provided to members by the Bureau.
17.6
If any publication sustains a 15% decrease in net paid sales over a continuous period
of three months the publisher member concerned must immediately inform the
Executive Officer in writing. The Executive Officer shall immediately inform the
members.
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17.7
If any free circulation community newspaper changes its circulation area so that the
number of copies circulated is decreased by more than 15% in the case of newspapers
up to 50,000 circulation and more than 10% in the case of newspapers over 50,000
circulation, then the publisher member concerned must immediately inform the
Executive Officer in writing. The Executive Officer shall immediately inform the
members.
17.8
Where returns have been estimated for an audit report, and actual returns collected after
the end of the audit period affect the reported return by more than 10% of notified net
circulation, then the publisher member must inform the Executive Officer of the correct
average net circulation figure forthwith, and not later than 90 days after the end of the
audit period. The Executive Officer shall, at the end of the 90 day period, inform all
members of this report.
17.9
The Bureau shall issue an audit certificate to a publisher member in respect of each
publication member following receipt of an audit report concerning that publication
provided that the Committee is of the opinion that the contents of the report can be
verified.
18
CIRCULATION SUMMARIES
18.1
The Bureau shall produce a Summary of Audited Circulations (the summary) four times
in each year:
-
two each for magazine, controlled circulation and bulk distribution publications;
and
-
two each for newspapers - daily, non-daily, weekly and community
18.2
The summaries shall be distributed to all members of the Bureau and such other persons,
firms or corporations as are authorised by the Committee to receive such summaries.
18.3
The Bureau may charge such fees for the summaries as agreed by the Committee from
time to time.
19
STATEMENTS BY MEMBERS
19.1
A publisher member may at any time, subject to the remainder of Rule 19, issue a
statement concerning aspects of his/her publication’s circulation provided that the
publisher member does not represent this as a current audited circulation figure as
defined in Rule 19.4.
19.2
No publisher member of the Bureau may use the membership insignia of the Bureau nor
represent that they are a member of the Bureau unless they have a current audited
circulation figure as defined in Rule 19.4.
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19.3
Where a publisher member publishes a circulation figure accompanied by a reference to
the Bureau then that circulation figure must be the current audited circulation figure as
defined by Rule 19.4.
19.4
For the purposes of this rule “current audited circulation figure” means the figure
published in the latest relevant Summary of Audited Circulations or recorded in an
Bureau certificate of audited circulation for the latest relevant audit period.
19.5
The ABC Summary of Audited Circulations will be embargoed for three (3) working
days following the distribution of the summary to publisher members who audited in a
particular audit period. At the end of the three working days, copies of the summary will
be provided to all other ABC members and publisher members who have audited may
publicise current circulation figures.
19.6
No member of the Bureau shall make any statement about circulation matters which
claims the authority or endorsement of the Bureau when this authority or endorsement
has not previously been given in writing. Furthermore no member shall reproduce in
any way letters or correspondence of the Bureau or any extracts from them without the
prior written approval of the Committee.
20
COMMON SEAL
20.1
The Common Seal of the Bureau shall be held in the custody of the Executive Officer or
some other person authorised by a resolution of the Committee. The use of the seal shall
be authorised by a resolution of the Committee and its application witnessed by two
members of the Committee.
21
COPYRIGHT IN MATERIAL
21.1
The members acknowledge and agree that all copyright subsisting in audit reports,
circulation summaries and other material published by the Bureau shall be owned by the
Bureau.
21.2
Notwithstanding Rule 21.1 any member may republish the whole or any part of any
audited report or circulation summary provided that the member shall acknowledge the
Bureau as the source of that material and shall state in any republication of such material
the defined audit period to which the material relates.
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22
NOTICES
22.1
A notice or other communication may be given by the Chair, the Committee or the
Executive Officer to any member either by serving it on that member by sending it by
post the address supplied by him or her to the Bureau for the giving of notices and
correspondence.
22.2
Where a notice is sent by post, service of the notice shall be deemed to be effected by
properly addressing, prepaying, and posting a letter containing the notice, and to have
been effected forty-eight (48) hours after the date of its posting.
23
APPOINTMENT OF LIQUIDATOR
23.1
The Bureau may resolve to put the Bureau into liquidation by a resolution to appoint a
Liquidator passed by two-thirds of the members voting at any Annual General Meeting
or Special General Meeting either in person or by proxy, due notice of such resolution
having been given, provided that the resolution is confirmed at a subsequent general
meeting called for the purpose and held not earlier than 30 days after the date on which
the resolution to be confirmed was passed.
23.2
In the event that a resolution to appoint a Liquidator is passed, the Committee shall
forthwith realise the property of the Bureau, and after the discharge of its liabilities, shall
pay the balance of its funds, if any, equally to the then members of the Bureau and the
Bureau shall then be deemed to be liquidated.
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CIRCULATION AUDIT GUIDELINES OF THE NEW ZEALAND AUDIT BUREAU
OF CIRCULATIONS (INCORPORATED)
1
INTRODUCTION
The New Zealand Audit Bureau of Circulations Incorporated (the “Bureau”) is a
non-profit co-operative association incorporated under the Incorporated Societies Act
1908. Membership may be granted to any advertiser, advertising agency or publisher of
a publication distributed in New Zealand with a circulation audited in accordance with
the Rules of the Bureau.
The Bureau Rules and Circulation Audit Guidelines help to provide an industry standard
for measuring circulation. Audited circulation figures are intended to supply advertisers
and agencies with information based on a standard accepted by the industry, showing
how many copies of value of each publication are actually available in the market place.
Each publication must be represented as a separate member of the Bureau.
The Bureau Circulation Audit Guidelines are based upon the relationship between the
publisher and the Bureau, namely that the publisher has voluntarily joined the Bureau on
the understanding that it will produce and have audited accurate and supportable
circulation figures.
The payment of the auditor is a matter between the auditor and the publisher.
2
SCOPE OF THE AUDIT
2 (a)
Auditors are required to obtain a copy of the current Rules and Circulation Audit
Guidelines from the Bureau or the publisher before commencement of audit
work. The audit must be carried out in accordance with the Rules and
Circulation Audit Guidelines.
2 (b)
It is a condition of Bureau membership that a publisher member will co-operate
with the auditor and permit full and free access to circulation, distribution,
publishing and financial records.
2 (c)
Each audit for and on behalf of the Bureau must include as a matter of routine
practice, both statistical and financial aspects of the publication.
2(d)
The financial part of the audit shall however, be restricted to ascertaining,
supporting and checking the circulation figures and shall not probe into the
affairs of the publisher which have no bearing on circulation.
2(e)
Where deemed necessary the auditor shall have the right to examine any and all
records relating to a period prior and subsequent to the period of audit.
Page 15
3
2(f)
An important part of a circulation audit of publications is to check the cash
received for copies purporting to have been sold and to ensure that it has been
banked regularly and intact.
2(g)
Any lack of co-operation on the part of publisher members could result in an
audit report not being accepted, and termination of membership as provided in
Rule 11.
2(h)
The auditor appointed must be a chartered accountant, holding a current
certificate of public practice and be registered with the ABC under Rule 16.2A.
AUDITORS DUTIES
(a)
(b)
Where dependence is placed on internal records, an evaluation of the publishers
sales, circulation and distribution systems should be performed to ascertain
whether reliance may be placed on these systems to verify circulation audit data.
-
If the circulation auditor is also the general organisation auditor
procedures performed during the course of the general audit may provide
the necessary assurance for the circulation audit.
-
If the circulation auditor is not also the general auditor then the
circulation auditor should either:
-
Obtain a representation from the general organisation auditor as
to the effectiveness of the systems to be relied upon, or
-
Establish audit procedures that will facilitate a systems
evaluation to the satisfaction of the Bureau.
It is the duty of the publishers to install, maintain and keep available for
circulation auditors, true and correct records of circulation, capable of being
audited in accordance with these Guidelines.
If adequate records or systems of control have not been maintained the auditor
should notify and discuss the issues with the appropriate staff of the publisher.
Where appropriate a report to management summarising the findings of the audit
should be issued.
(c)
Circulation audit procedures should be restricted to ascertaining, supporting and
checking the circulation figures and should not extend to the activities of the
publisher which have no bearing on circulation.
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(d)
Audits are to be performed twice yearly for each publication or as otherwise
required in Guideline 4. Closing dates for receipt of audit reports by the Bureau
are:
Magazines/Bulk Distribution
Newspapers/Community
(e)
4
End of Period
30 June
31 December
Closing Date
end of July
end of January
31 March
30 September
end of April
end of October
Audit reports are to be signed by both the publisher and the approved auditor.
One copy of the report is to be forwarded by the auditor to the publisher on
completion of the audit and a further two copies to the Bureau. See Rule 19
which outlines when audit figures may be released by publishers.
AUDIT PERIODS
The following are the audit periods:
(a)
Daily newspapers 25,000 circulation and above and weekly newspapers:- the
periods from 1 April to 30 September inclusive and 1 October to 31 March
inclusive (or 26 weeks in each period of six months nearest the period referred to
above.)
(b)
Daily newspapers under 25,000 circulation and non-daily newspapers (not
including weekly newspapers):- the period from 1 April to 31 March inclusive
(or 52 weeks in each period of 12 months nearest the periods referred to above.)
(c)
Community newspapers that choose not to audit bulk distribution copies within
their home circulation area: - The period from 1 February to 31 March inclusive
(or eight weeks in each period of two months nearest to the period above).
(d)
Community newspapers that choose to include bulk distribution copies within
their home delivery area:- the period from 1 April to 31 March inclusive (or 52
weeks in each period of 12 months nearest the periods referred to above.)
(e)
Magazines and bulk distribution publications:- the periods from 1 January to 30
June inclusive and 1 July to 31 December inclusive (or 26 weeks in each period
of six months nearest the periods referred to above.)
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5
AUDIT FIGURES
A.
Newspapers (daily, non daily and weekly)
1.
For audits of issues published during any audit period the following details to
support the audit are to be provided (usually systems generated reports):
NOTE:
-
Net paid sales (see below (i))
-
Net circulation (see below (ii))
-
Number of issues published in the audit period
(i)
For the purposes of audit reports 'Net paid sales' are copies of the
publications which:
(a)
are sold through retailers, magazine or wholesale distributors,
and other recognised distribution channels who pay the
wholesale price for single copy sales and claim credits for
unsolds;
(b)
are sold direct to the public at the full advertised price for a single
copy of the publication;
(c)
if term orders and/or subscriptions are offered, are accepted at the
full advertised price of that term; or
(d)
are sold at a concession price if such concession price is not less
than 50% of the cover price. Copies sold at concession rates to
hospitals, hotels, motels, hostels, airlines, educational institutions
and prisons, or similar may be included as net paid sales if the
concession price is not less than 50% of the cover price.
(A)
Copies purchased within the publishing company or by a
subsidiary for free onward distribution cannot be included in
net paid sales. These copies are to be treated as free copies and
must fall within the allocated ratio for total free copies based on
net paid sales of the publication in order to included.
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(ii)
‘Free copies’ are defined as copies of a publication which are actually
distributed free on a regular basis by name or title up to but not
exceeding the following:
Net paid sales 50,000 and over
Net paid sales from 40,000 to 50,000
Net paid sales from 30,000 to 40,000
Net paid sales from 20,000 to 30,000
Net paid sales from 10,000 to 20,000
Net paid sales from 5,000 to 10,000
Net paid sales from 2,000 to 5,000
Net paid sales of 2,000 and under
(iii)
2%
2.5%
3%
3.5%
4%
5%
7.5%
10%
‘Net circulation’ is defined as actual net paid sales plus actual free copies
distributed.
Net circulation and net paid sales excludes the following:
2.
-
Voucher copies (those used for checking purposes in the
publishers office, exchanges, advertising agencies, advertisers
and other copies of a similar nature).
-
Individual subscriptions more than six months in arrears.
-
Exchange copies, ie copies exchanged with other publishers for
comparison purposes.
-
Office file and record copies.
-
Press and publishing machinery mishaps.
-
Other exceptional circumstances resulting in a disruption to sales
of more than ten percent of the average net circulation.
Exclusions of this kind are to be approved by the ABC
Committee
-
Statutory holidays in the region of the publication (if requested by
the publisher).
Calculate:
(a)
Average net paid sales for the period by dividing the sum of the total net
paid sales by the total number of circulation days.
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(b)
B.
Total net circulation per issue for the period by dividing the cumulative
sum of the total net circulation by the total number of circulation days.
3.
Compare average net paid sales and total net circulation with prior periods.
Investigate unusual or unexpected variances by discussion with the publisher.
4.
Verify and document in the audit report the cover price for newspapers
5.
The net paid sales average and the total net circulation per issue (as calculated in
2 above) are those entered on the audit report. Number of issues audited should
be the number of issues published (less exclusions).
6.
Where actual returns for the previous audit period vary significantly from the
publisher’s estimate the Bureau should be informed so that the relevant figure
can be amended in the summary.
Magazines
1.
For audits of issues published during any audit period the following details to
support the audit are to be provided (usually systems generated reports):
-
Net paid sales of single copies(see below (i))
-
Bulk sales of multiple copies(see below (ii))
-
Directed circulation (see below (iii))
-
Free single copies (see below (iv))
-
Net New Zealand Circulation (see below (v))
-
Free bulk distribution copies (if a proportion of magazines are distributed
in this manner, this distribution may be recorded in the audit report but
does not form a part of the publication’s total net circulation) (for audit
instructions see D below)
-
Number of issues published in the audit period
(i)
For the purposes of audit reports 'Net paid sales' are copies of the
publications which:
(a)
are sold through retailers, magazine or wholesale distributors,
and other recognised distribution channels who pay the
wholesale price for single copy sales and claim credits for
unsolds;
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NOTE:
(ii)
(b)
are sold direct to the public at the full advertised price for a single
copy of the publication;
(c)
if term orders and/or subscriptions are offered, are accepted at the
full advertised price of that term; or
(d)
are sold at a concession price if such concession price is not less
than 50% of the cover price. Copies sold at concession rates to
hospitals, hotels, motels, hostels, airlines, educational institutions
and prisons, or similar may be included as net paid sales if the
concession price is not less than 50% of the cover price.
(A)
Net paid sales do not include “bulk sales” which must be
recorded separately.
(B)
Copies purchased within the publishing company or by a
subsidiary for free onward distribution cannot be included in net
paid sales. These copies are to be treated as free copies and must
fall within the allocated ratio for total free copies based on net
paid sales of the publication in order to included.
For the purposes of audit reports “bulk sales” are copies of a magazine
which:
(a)
Make up more than 5% of the magazine’s total New Zealand net
circulation; and
(b)
Do not require returns to be recorded; and
(c)
Are sold as multiple copies to one person or location at 50% or
more of the cover price; and
(d)
Are intended for onward distribution (where the purchaser is not
the intended recipient).
(e)
Bulk sales sold at less than 50% of the cover price are to be
defined as bulk distribution.
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(iii)
For the purposes of the Bureau Rules directed circulation is defined as: single
copies of a magazine distributed to an individual; addressed by title or name and
sent direct to them (for example) to a verifiable post or mail box address. The
magazine may or may not be purchased by the person it is addressed to, it may
be purchased by the company/organisation on their behalf.
In the case of single copies of publications being sent to rural mail boxes or post
office boxes, these copies may be un-addressed if an acceptable level of
documentation regarding delivery is available. No more than one copy should be
sent to each person at an address. Proof of transmission will be required to be
audited.
For the purposes of audit reports “directed circulation ” are copies of a magazine
that are supplied:
-
As part of a primary product or service; or
As part of a society or association membership; or
To an identifiable interest group; or
Pursuant to a mailing list.
Where directed circulation occurs then it is to be reported in the following way:
(a)
(b)
Directed circulation requested: Either requested by an individual or an
organisation on an individual’s behalf by a deliberate action. For
example ticking a box, filling in a form, signing a request or similar.
Copies will be paid or unpaid as defined below.
(i)
Directed circulation paid: Single copies that are paid and therefore
sold to the recipient at not less than 50% of the cover price.
(ii)
Directed circulation not paid : Single copies which are not paid and
therefore are available at less than 50% of the cover price or free to
the recipient. This definition also includes copies of a magazine
provided as part of a primary product or service where the
magazine is either free or paid at less than 50% of the cover price.
Directed circulation not requested: Single copies which are not requested
by an individual but sent to them by name or title at a verifiable post or
mail box address. Single copies that are not addressed may be counted in
this category if the copies have been delivered to verifiable post office
boxes or rural mail delivery boxes.
For all directed circulation copies:
-
If the publication is distributed by an external organisation confirm
with these distributors the average number delivered per issue
(excluding any returns) for all issues in the audit period.
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(iv)
-
Where mail is un-addressed, ensure that proof of onward
transmission from the external organisation to the mail delivery areas
is available.
-
Conduct random tests to ensure that un-addressed copies delivered to
rural or post office boxes have been received by box holders
-
Where directed circulation paid is claimed, reconcile the paid
circulation figure with financial records.
-
Obtain the internal print run reports for the period and agree to
supporting documentation
-
Compare the print reports to the distribution confirmation or mailing
lists, investigate unusual variances (variance may result from
wastage, internal usage etc).
-
Compare current and prior period distributions, investigate unusual
variances.
-
Form an opinion as to the minimum level of circulation and report on
a figure that may be supported objectively.
‘Free copies’ are copies of a publication which are actually distributed
free on a regular basis to a name or title. The number of free copies
included may be up to, but not exceeding the following percentage of net
paid sales:
Net paid sales 50,000 and over
Net paid sales from 40,000 to 50,000
Net paid sales from 30,000 to 40,000
Net paid sales from 20,000 to 30,000
Net paid sales from 10,000 to 20,000
Net paid sales from 5,000 to 10,000
Net paid sales from 2,000 to 5,000
Net paid sales of 2,000 and under
(v)
2%
2.5%
3%
3.5%
4%
5%
7.5%
10%
‘Net New Zealand Circulation’ is defined as net paid sales plus bulk
sales plus directed circulation plus actual free copies distributed.
Net circulation, net paid sales, bulk sales and directed circulation exclude
the following:
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2.
3.
-
Voucher copies (those used for checking purposes in the
publishers office, exchanges, advertising agencies, advertisers
and other copies of a similar nature).
-
Individual subscriptions more than six months in arrears.
-
Exchange copies, ie copies exchanged with other publishers for
comparison purposes.
-
Office file and record copies.
-
Press and publishing machinery mishaps.
-
Other exceptional circumstances resulting in a disruption to sales
of more than ten percent of the average net circulation.
Exclusions of this kind are to be approved by the ABC
Committee
-
Statutory holidays in the region of the publication (if requested by
the publisher).
-
Copies of all magazines that are sold in Australia or elsewhere in
the world. However, such sales may be recorded separately and
reported in the Summary of Audited Circulations.
Calculate:
(a)
Average net paid sales for the period by dividing the sum of the
total net paid sales by the total number of circulation days.
(b)
Average bulk sales for the period by dividing the sum of the total
net bulk sales by the total number of circulation days.
(c)
Average directed circulation copies for the period by dividing the
sum of the total net directed circulation copies by the total
number of circulation days.
(d)
Total net circulation per issue for the period by dividing the
cumulative sum of the total net circulation by the total number of
circulation days.
Compare average net paid sales, average bulk sales, average directed circulation
copies and total net circulation with prior periods. Investigate unusual or
unexpected variances by discussion with the publisher.
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4.
C.
Verify and document in the audit report:
-
cover price
-
date first published
5.
The net paid sales average, the bulk sales average, the average directed
circulation copies and the total net circulation per issue (as calculated in 2 above)
are those entered on the audit report. Number of issues audited should be the
number of issues published (less exclusions). Bulk distribution copies may also
be recorded separately in the audit report, but do not form part of the total net
circulation figure.
6.
Where actual returns for the previous audit period vary significantly from the
publishers estimate the Bureau should be informed so that the relevant figure can
be amended in the summary.
Community Newspapers
1.
Circulation figures are only to include:
-
complete copies of the issues to be audited
-
copies distributed to households
-
rural mail deliveries
-
single copies delivered to offices and shops within the circulation area
-
copies distributed from shops in areas outside household deliveries
-
copies delivered from the publisher's premises.
-
copies distributed from shops in areas inside or outside household
circulation area may be included in the audit report if the community
newspaper is auditing every issue in a twelve month period pursuant to
Guideline 4 (d).
Circulation figures are to exclude:
-
voucher copies for advertisers, exchanges, offices, office use, sample
copies
-
all other copies distributed except as defined in the list above.
-
waste copies, spoils, over-runs and replacement copies of all descriptions
Page 25
-
D.
subscription copies more than six months in arrears.
2.
If the publication is distributed by an external organisation confirm with these
distributors the average number delivered per issue (excluding any returns) for
all issues in the twelve month period.
3.
Obtain the internal print run reports for the period and agree to supporting
documentation.
4.
If applicable compare the print reports to the distribution confirmation.
Investigate unusual variances. (Variance may result from wastage, internal usage
etc).
5.
Compare current and prior period distributions. Investigate unusual variances.
6.
Form an opinion as to the minimum level of circulation and report on a figure
which may be supported objectively.
7.
Where actual returns for the previous audit period vary significantly from the
publishers estimate the Bureau should be informed so that the relevant figure can
be amended in the summary.
Bulk Distribution
1.
Circulation figures are only to include complete copies of the issues to be
audited.
Circulation figures are to exclude:
-
Voucher copies (those used for checking purposes in the publishers
office, exchanges, advertising agencies, advertisers and other copies of a
similar nature).
-
waste copies, spoils, over runs and replacement copies of all descriptions
-
where payment for copies is more than 6 months in arrears
2.
If the publication is distributed by an external organisation confirm with these
distributors the average number delivered per issue (excluding any returns) for
all issues in the audit period.
3.
Obtain the internal print run reports for the period and agree to supporting
documentation.
Page 26
4.
If applicable, compare the print reports to the distribution confirmation,
investigate unusual variances (variance may result from wastage, internal usage
etc).
5.
Compare current and prior period distributions. Investigate unusual variances.
6.
Form an opinion as to the minimum level of circulation and report on a figure
that may be supported objectively.
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