• by Michael Shields , July 12, 2004

Following a series of high profile circulation discrepancies, The Audit Bureau of Circulations' board Monday issued an uncharacteristic censure of three major daily newspapers: the Chicago Sun-Times, Newsday and Hoy for violating its rules and bylaws.

The censuring of the three admittedly non-compliant papers is part of a larger attempt by the ABC to rehabilitate its auditing integrity, as well as confidence in newspaper circulation reports overall. Following a series of meetings held from July 7-10, the ABC board has taken steps to better define its "censure" provision and to outline the associated penalties for censured publications.

Newspapers that experience an adjustment of at least five percent and periodicals that experience two consecutive audit adjustments of at least five percent will be subject to censure.

The Sun-Times, Hoy, and Newsday will each be required to conform with a stricter set of auditing guidelines, including more frequent audits, being publicly identified as "censured" publications, and having to conduct regular meetings with the ABC's governing body after submitting a plan of action, among others.

Separately, the ABC board has initiated a broad examination of its rules and record-keeping requirements to identify those that may need modification.

For example, the board voted to limit the newspaper "omitted day" rule to a maximum of ten annually; and will examine the qualification of newspaper sponsorship sales through "barter" agreements, as well the definition of qualified purchasers for sponsored periodical subscriptions. This review process will be completed and recommendations will be presented to the board at its November 2004 meeting.

In addition, the ABC board took steps to make the ABC audit even more stringent by adopting the principles of the American Institute of Certified Public Accountants Statement on Auditing Standards with regards to fraud. Besides the three newspapers cited, the board also announced the censure of Synapse Group, Inc., a magazine sales agent, for improper record keeping. Synapse will be required to submit a plan for correcting its practice to the ABC board.