-------- Original Message --------
Subject: [WBAI-LSB-PUBLIC] Re: PNB Meeting Thurs. 1/8/15 - 8:30pm EST
Date: Thu, 8 Jan 2015 11:37:43 +0000 (UTC)
From: Cerene WBAI firstname.lastname@example.org [WBAI-LSB-PUBLIC]
Reply-To: Cerene WBAI
Below are a report from the Interim Executive Director Margy Wilkinson and some motions from the National Finance Committee (NFC). (The NFC is comprised of the treasurers of the five local boards, a national board member from each station area, and the foundation’s CFO.)
The draft meeting agenda is here: http://kpftx.org/pacalendar/cal_show1.php?eventdate=20150108
INTERIM EXECUTIVE DIRECTOR OPEN SESSION REPORT
The Pacifica National Office is hard at work to gather information and documents in response to the AG’s correspondence audit. For those of you who do not know, the AG has given us an extension to February 17, 2015 to respond to the requests for documents and information. We have assigned responsibility for each of the 23 requests in the AG’s audit. And are beginning to pull together the needed materials which will be submitted electronically. Volunteers are welcome in the PNO to assist. Please contact me at email@example.com
End of the year letter – Pacifica's end of the year letter signed by Ralph Nader with an endorsement by Amy Goodman went out just before Christmas to 15,000 previous donors. The first returns were received on the day after Christmas and brought in enough money to cover the costs of the mailing – approximately $8K. Since then we have received an additional $10K and donations continue to arrive every day.
The difficult financial situation at Pacifica and at the stations in our network is now well known. Station and unit managers are having to make some very hard choices in order to make ends meet. Whatever any of you can do to generate financial support for Pacifica and for our stations and Pacifica Radio Archives is very important. Please consider what you can do and pitch in.
MOTIONS FROM THE NFC with notes from its Chair Brian Edwards-Tiekert.
The National Finance Committee met Monday to discuss crisis management measures for every financial unit facing difficulty paying its bills. We unanimously approved motions recommending the PNB adopt the following resolutions.
I'll put some background at the bottom of the resolutions.
The interim Executive Director shall require the WBAI General Manager to attend the next meeting of both the WBAI Finance Committee and Local Station Board to give a First Quarter Financial Report.
For the next six months, WBAI Management shall require approval from either Pacifica’s CFO or interim Executive Director prior to making any disbursement greater than $500 other than for rent, utilities, payroll and other regular, recurring expenses.
The PNB directs WBAI Management and LSB to prepare within 45 days a recommended contingency plan to the PNB in the event that the station’s deficits cannot be stabilized.
For the next six months, KPFK Management shall require approval from either Pacifica's CFO or interim Executive Director prior to making any financial commitment or disbursement greater than $1,000 other than for rent, utilities, payroll, and other regular, recurring expenses
The PNB directs the Interim Executive Director to direct Management at KPFK to prepare within 30 days a plan for reducing expenses by at at least $250,000 per year in order to bring KPFK's operating deficit under control.”
For the next six months, KPFA Management shall require approval from either Pacifica’s CFO or interim Executive Director prior to making any disbursement or incurring any expense greater than $1,000 for other than for rent, utilities, payroll, and other regular, recurring expenses
The PNB directs the interim Executive Director to direct Management at KPFA to prepare within 30 days a plan for reducing expenses by at at least $250,000 per year in order to bring KPFA's operating deficit under control.” (Passed without objection)
Pacifica Radio Archive
The PNB directs the interim Executive Director to direct Management at PRA to increase revenue from unbudgeted sources or prepare within 30 days a plan for reducing expenses by at least $9,000 per month in order to bring PRA's operating deficit from fund-raising shortfalls under control.
We do not have any recent financial statements from WBAI. We learned on the NFC call that WBAI is three months behind on transmitter rent, has been spending money on an unbudgeted studio build-out, cancelled most of its December Fund Drive, and required assistance from the National Office to cover Payroll and Benefits in December. We also heard that WBAI's General Manager has been uncommunicative to its Local Station Board and local Finance Committee, and has not been attending management conference calls.
We do not have any recent financial statements from KPFK--the bookkeeping has been too deficient there to produce anything useful. Pacifica Management has taken steps to fix that situation by replacing the person doing accounting at KPFK.
We DO know, based on Memsys data on pledge collections and cash receipts, that the 89-90% fulfillment rate KPFK built its budget around is not bearing out, and KPFK is collecting closer to 80% of pledges -- that will produce a bottom-line shortfall in the ballpark of $250,000 over the course of a year.
KPFA's produced an income statement through November that showed KPFK's bottom line falling short of budget by $67,000. We know KPFA outperformed its budget for year-end giving in December, and should have have full accounting of how much ground it made up shortly.
It looks like KPFA ran into three problems:
KPFA management say they're preparing to cut about $250,000/year in personnel spending through layoffs, consolidation of part-time positions (to eliminate extra benefit packages), and hour cuts. However, the savings from that will take time to phase in -- and won't help with KPFA's January cash crunch.
PRA [ed: Pacifica Radio Archives]:
PRA fell $72,000 short of its Fall Fund Drive goal; it is also about $20,000 behind on Central Service payments from stations. The first quarter financial statement PRA sent to the board today indicates it had a bottom line shortfall of $90,000 in just three months.
On Wednesday, January 7, 2015 6:38 PM, Cerene WBAI
The Pacifica National Board will meet on Thursday, January 8, 2015, in open, then executive session. There will be some discussion of our financial situation and the audit by the California Attorney General, as well as other business.
?You can listen live where shown below and/or later, on the archive, at http://archive.kpftx.org/
The full list of governance meetings around the network, including live meetings in your listening area, can be found here: http://kpftx.org/
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