To increase the credibility of Verified Circulation and to bring VC in line with other circulation auditing services, a full 12 months of circulation data must be audited for each member publication. This means that both Interim and Annual reports must be audited. The first members that are affected are those whose Interim reports are due at the end of March.
Q: Why has VC switched from six-month audits to 12-month audits?
A: Under the previous system, only Annual reports were being audited. This meant that only half of each yearÔÇÖs circulation data was being scrutinized by the VC auditor or a chartered accountant. Advertisers and other industry stakeholders, including the Publications Assistance Program, have indicated that while they are happy with the program, they need its auditing practices to be brought in line with the industry standard. This means that audits must cover a full year.
Q: How does this change affect our reporting procedures?
A: The only procedural change will be in the preparation and submission of your six-month reports. How you record your circulation data for each issue remains unchanged. Rest assured that the VC office will send you clear instructions and be available to assist you every step of the way. There will be different procedures depending on whether you have your data audited by the VC auditor or an independent chartered accountant.
If you use the VC Auditor, send each six-month report to the VC office, not the VC auditor. Prepare each report like an Annual report, with backup documentation as required. Include the VC Auditor fee payment with the annual report submission only. After verifying the reports, the VC office will forward them to the VC Auditor.
If you use an independent chartered accountant, prepare each report as you would an annual report. Retain your interim report at your office for later submission to the accountant, but send a copy to the VC office.
Furthermore, if your circulation has changed by plus or minus five percent since your last report, submit copies of your supporting documentation to VC as well. Six months later, after preparing your subsequent annual report, send a copy of it to the VC office. Then forward both your interim and annual reports, along with supporting documents, to the accountant for auditing.┬á After the audit is complete, the accountant will send the results to the VC office for processing.
You can find a detailed set of instructions on the VC web site at www.verifiedcirculation.ca.
Q: Do I have to pay twice the VC membership fee and audit fee?
A: No. You only need to pay the VC membership fee and audit fee once a year. The VC annual membership fee is payable to CCNA, while the audit fee is payable to the VC Auditor and must accompany your Annual report submission. Please note that new rate cards were issued for both fees on January 1, 2007ÔÇövisit the VC web site at www.verifiedcirculation.ca to view the rate cards and to obtain more information.
Q: What documents will we be receiving from the VC office?
A: Since you are still submitting two reports per year, you will continue to receive two documents from the VC office, but will also receive a report that states that 12 months have been audited.
The VC office will continue to conduct verifications of Interim and Annual reports, issuing a PublisherÔÇÖs Statement upon successful completion. This statement will resemble the current Verified Circulation Report, but will bear the phrase, ÔÇ£Subject to Audit.ÔÇØ┬á When the VC Auditor or chartered accountant successfully completes an audit, the VC office will process the audit results and issue an Audit Report.