Minutes for the regular National Finance Committee meeting August 2, 2011.<br />
<br />
Meeting convened at 8:34 PM (ET) a quorum being present, the Chair and<br />
Secretary being present.<br />
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Attending: Ken Aaron, Jim Boyd, Bill Crosier, Campbell Johnson, Kim<br />
Kaufman, R. Paul Martin, Tracy Rosenberg, Alex Steinberg, Barbara<br />
Whipperman, Lavarn Williams, Bruce Wolf,  also attending were Executive<br />
Director Arlene Englehardt, Director of the Pacifica Radio Archives (PRA)<br />
Brian DeShazor and KPFA General Manager Andrew Philips.<br />
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Agenda:<br />
<br />
1. Approve Draft Agenda (5 minutes)<br />
2. Approve Minutes of July 12th (3 minutes)<br />
3. Approve Minutes Modification for May 24, 2011 (Kaufman) (5 minutes)<br />
4. Chair Report from Closed Session (3 minutes)<br />
5. Act on Proposed Archives Divisional Budget (30 minutes)<br />
6. Act on Proposed KPFT Divisional Budget (30 minutes)<br />
7. Act on KPFA LSB Request for Shared Services Discount (20 Minutes)<br />
8. Pending Waiver Requests - KPFA till 8-20 LSB Meeting, KPFK until 8-17<br />
LSB Meeting, WBAI? (20 Minutes)<br />
9. Set Next Meeting Date. (5 minutes)<br />
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<br />
Motion: (Ken Aaron) "To approve the agenda." (Passed without objection)<br />
<br />
Approve Minutes of July 12th 8:38 PM (ET)<br />
<br />
Motion: (Kim Kaufman) "To approve the minutes of the July 12, 2011,<br />
meeting." (Passed without objection)<br />
<br />
Approve Minutes Modification for May 24, 2011 8:39 PM (ET)<br />
<br />
Motion: (Bill Crosier) "To amend the minutes previously adopted for the<br />
May 24, 2011, meeting with the following:<br />
<br />
'The KPFK Treasurer noted that the Income Statement has different numbers<br />
for listener support from what KPFK Business Manager has sent out in their<br />
financial statements. She reported that KPFK appears to be doing well with<br />
regard to income, but only because of the extra on-air fund raiser in<br />
December.  Listener income in $179,315 higher than last year but overall<br />
revenue is only $51,272 higher than last year at this time.  Because there<br />
was no approved budget for expenses, she is comparing present figures to<br />
actuals of 2010. <br />
<br />
The current on-air fund raiser is set to last for 25 days and has achieved<br />
about 70 to 72% of its goal. She noted that the KPFK LSB didn't approve<br />
last year's budget because expenses had never been cut to accommodate the<br />
lower income expectations, previously approved by the NFC. She noted she<br />
was uncomfortable with the income as stated, as last year the auditor<br />
knocked about $240,000 off KPFK's income at the end of year.<br />
<br />
Salaries are $72,290 (10%) higher than last year.  Administrative expenses<br />
are $51,985 higher than last year (10.1%).  Programming expenses are<br />
$13,399 (9.5%) better than last year.  Arbitrons have been cut back is one<br />
reason.  Development expenses are $4,078 (1.5%) higher than last year. <br />
However, general ledger categories have been moved around from one area to<br />
another by the CFO so these expenses are relative and cannot actually be<br />
compared except overall.  Overall, expenses are a total of $122,529 higher<br />
than 2010.  Expenses are $86,733 higher than 2010 without N.O. expenses. <br />
There is a "surplus" of $243,832 which is $71,251 lower than last year. <br />
Surplus after capital expenses is $224,015 or $76,240 worse than last<br />
year. <br />
<br />
The committee discussed the report. It was noted that a lot of the income<br />
lines are lower compared to FY10, and KPFK couldn't afford to lose more<br />
money. The possibility of on-air fund raiser burnout might be happening<br />
due to too many days pitched. An analysis of the premiums and on-air fund<br />
raiser income was under way. It was felt that with a new General Manager<br />
coming to the station on June 15, that the station would have a more<br />
disciplined financial department soon. The idea of stations providing<br />
programming to other stations getting some financial consideration for<br />
that was brought up.<br />
<br />
It appears that KPFK is actually about $75,000 worse than in FY10 (for a<br />
year that lost $153,000+).'" (Passed without objection)<br />
<br />
Chair Report from Closed Session 8:43 PM (ET)<br />
<br />
The Chair announced that the NFC had gone into executive session on June<br />
28, to discuss contractual and legal issues, and the NFC went into<br />
executive session on July 12, to discuss contractual, legal and real<br />
estate issues.<br />
<br />
The question of allowing guests to stay while the committee members<br />
debated motions related to the budgets was discussed. It was decided to<br />
allow the guests to stay during debate.<br />
<br />
Act on Proposed Archives Divisional Budget 8:49 PM (ET)<br />
<br />
PRA Director Brian DeShazor talked the committee through the PRA FY12<br />
budget proposal. He reported that CD sales to the public were decreasing<br />
as were sales of PRA materials as premiums. He is requesting a third day<br />
of on-air fund raising for PRA in November. The on-air fund raisers<br />
realize more revenue for PRA than the shared expenses levy does. PRA will<br />
have an ad in the Mother Jones education issue soon and another one in<br />
February 2012. PRA is part of a book deal with City Lights Books that<br />
should earn some more revenue. PRA is pursuing a number of grants. Some<br />
affiliate stations have agreed to do on-air fund raisers for PRA.<br />
<br />
The committee discussed the report.<br />
<br />
Motion: (Tracy Rosenberg) "That the NFC recommend to the full PNB the<br />
approval of the Pacifica Radio Archives FY12 budget submitted by Brian<br />
DeShazor and prepared by Marianna Berkovich." (Passed 10 for, 1 against)<br />
<br />
Act on Proposed KPFT Divisional Budget 9:45 PM (ET)<br />
<br />
The committee discussed the KPFT FY12 budget proposal. Assumptions sheets<br />
were requested. This item will be on the next meeting's agenda.<br />
<br />
Act on KPFA LSB Request for Shared Services Discount 10:27 PM (ET)<br />
<br />
Motion: (Barbara Whipperman) "The NFC recommends to the PNB to reduce<br />
KPFA's shared expenses payments to the National Office by 1% making the<br />
total amount from KPFA 16% to the National Office and 2.5% to the Pacifica<br />
Radio Archives." (Fails 2 for, 6 against, 3 abstentions)<br />
<br />
Pending Waiver Requests - KPFA till 8-20 LSB Meeting, KPFK until 8-17 LSB<br />
Meeting, WBAI? 11:32 PM (ET)<br />
<br />
Motion: (Tracy Rosenberg) "The NFC waives the budget submittal deadline<br />
for KPFA until August 21, on completion of their regularly scheduled<br />
monthly LSB meeting." (Passed without objection as amended)<br />
<br />
Amendment: (Bruce Wolf) "Make date 'August 23.'" (Passed without<br />
objection)<br />
<br />
Motion as amended: (Tracy Rosenberg) "The NFC waives the budget submittal<br />
deadline for KPFA until August 23, on completion of their regularly<br />
scheduled monthly LSB meeting." (Passed without objection as amended)<br />
<br />
Motion: (Tracy Rosenberg) "The NFC waives the budget submittal deadline<br />
for KPFK until September 1, on completion of their special LSB meeting."<br />
(Passed without objection)<br />
<br />
Motion: (Ken Aaron) "To adjourn." (Passed without objection)<br />
<br />
Adjourned 11:48 PM (ET)<br />
<br />
Submitted by R. Paul Martin, Secretary.<br />