Minutes for the regular National Finance Committee meeting February 28,<br />
2012.<br />
<br />
Meeting convened at 8:40 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, Marcus Jetter, Campbell<br />
Johnson, Kim Kaufman, R. Paul Martin, Tracy Rosenberg, Barbara Whipperman,<br />
Lavarn Williams, also attending was Executive Director Arlene Englehardt.<br />
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Agenda:<br />
<br />
1.	Approve Draft Agenda<br />
2.	Approve Minutes<br />
3.	Briefing on Financial Recovery Plan Status (Bill)<br />
4.	KPFT 1st Quarter Review<br />
5.	KPFK 1st Quarter Review<br />
6.	KPFA 1st Quarter Review<br />
7.	Continuation of Confidentiality Discussion<br />
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<br />
The Chair directed that the minutes note that Alex Steinberg could not<br />
attend this meeting due to a family emergency.<br />
<br />
Motion: (R. Paul Martin) "To approve the agenda." (Passed without<br />
objection)<br />
<br />
Approve Minutes 8:43 PM (ET)<br />
<br />
Motion: (Bill Crosier) "To approve the minutes of the February 14, 2012,<br />
meeting." (Passed without objection)<br />
<br />
Briefing on Financial Recovery Plan Status 8:44 PM (ET)<br />
<br />
The recovery plan should be considered by the PNB tomorrow night, and it<br />
may be passed then. The Financial Recovery and Audit Task Force (FRAT) was<br />
set up at the suggestion of the auditor who had problems with Pacifica's<br />
cash reserves being depleted and big bills not being paid. The recovery<br />
plan contains suggestions with regard to increasing Pacifica's revenue and<br />
reducing expenses.<br />
<br />
The committee briefly discussed the recovery plan and the FRAT.<br />
<br />
KPFT 1st Quarter Review 8:55 PM (ET)<br />
<br />
The KPFT Treasurer reported that KPFT had brought in about $94,000 in<br />
listener support revenue, some of which came from an event in late August.<br />
A restaurant they do events with gave the station a $10,000 grant. There<br />
was a question about $6,500 in health charges from December. This is being<br />
looked into. There are some questions regarding some lines in the FY12<br />
budget. The two repeater stations are costing more to maintain than was in<br />
the FY12 budget. There was a question regarding where Arbitron ratings were<br />
in the budget. The station got more from the CPB grant that goes to Free<br />
Speech Radio News (FSRN), so that income was evened out by the passing<br />
along of that grant money to FSRN. The Treasurer plans to go through the<br />
budget line by line and compare it to the draft that came out of the NFC to<br />
see if some items are mis-categorized.<br />
<br />
The committee discussed the report. The station's Winter on-air fund raiser<br />
came in with about 88-90% of its goal, and lasted 16 or 17 days.<br />
<br />
KPFK 1st Quarter Review 9:11 PM (ET)<br />
<br />
The KPFK Treasurer reported that KPFK was budgeted to have a $174,540<br />
surplus for the first quarter, but it's $146,664 short of that projection.<br />
There is an error on capital items. $20,000 was supposed to be in the<br />
budget for this but this but the budget shows nothing, this makes the first<br />
quarter look $20,000 worse than budget. Donations revenue is about $17,000<br />
higher than budgeted. There are some items in the budget spreadsheet that<br />
don't look correct. The big problem for KPFK is lack of income. The station<br />
is spending more and the Treasurer is still trying to find out for what.<br />
KPFK is still having transmitter issues, and there are technical expenses<br />
that she's trying to find out about. She is unsure about KPFK's insurance<br />
being paid. There are still people on payroll whose salaries are listed<br />
under "Programming Expenses." Community Events Expenses are running<br />
significantly higher because the station has plans for a big event in May<br />
and unbudgeted consultants are being paid for there. The Treasurer has<br />
spoken to the General Manager about under-performance issues and he's<br />
working on it. The station has planned for a strategy session with Staff<br />
and Management and LSB members on a volunteer basis to see what ideas that<br />
combination can come up with.<br />
<br />
The committee discussed the report. There was some question about how<br />
figures from the budgets are not in the first quarter statement. The<br />
maintenance categories were discussed. There is a backup generator and<br />
equipment on Mount Wilson, KPFK is still spending money on the old<br />
transmitter. There is a question about what KPFK bought for $92,000. The<br />
station has all sorts of equipment, the Treasurer is trying to get an<br />
actual inventory of it.<br />
<br />
The CFO said that the National Office is reviewing each item on the profit<br />
and loss statement and she will go over the expenses with the Treasurer.<br />
She said that the committee should discuss some of these issues at a future<br />
meeting.<br />
<br />
There were questions about the very high computer expenses at KPFK. A<br />
request has been made to KPFK Management for an itemization of the<br />
station's equipment, the information has not been forthcoming. It was<br />
requested that the CFO and the KPFK Treasurer look into some of these<br />
expenses.<br />
<br />
KPFA 1st Quarter Review 9:44 PM (ET)<br />
<br />
The KPFA Treasurer reported that the station is behind in revenue and over<br />
budget in expenses. There is a question regarding where the property tax<br />
refund will show up. She discussed the property tax situation at KPFA. A<br />
$10,000 revenue item is being reclassified from the Grants Income line to<br />
the Major Donor line. The donor had called it a grant, but it's a donation.<br />
Salaries are over budget, the KPFK Business Manager has restored some<br />
salary lines that had been cut in 2011. KPFA has some bequests that are<br />
maturing, they are going into inter-unit accounts and KPFA is getting<br />
credit for this. At this point KPFA has over paid the amount due for Shared<br />
Expenses by $93,000. KPFA has also paid out a sizeable loan for WBAI<br />
expenses. Bequests are helping KPFA with cash flow at this point. This is<br />
not ideal. The problem of staffing needs more of a discussion. With regard<br />
to state filing fees $8,000, was in the wrong line and will be given a new<br />
account number. The Web site expenses were approved by KPFA Management.<br />
Some information about these expenses is on a KPFA Wiki. Station Management<br />
is working on the expense overrun for the Community Events and Crafts Fair<br />
lines.<br />
<br />
The committee discussed the report. The payroll problem was discussed, the<br />
expense overruns on the Web site were discussed. There were questions about<br />
the premium expenses and credit card fees. The CFO said that KPFA has a<br />
full time person working on their Web site and the station also has an<br />
internal Web site, the KPFA General Manager is looking into the value of<br />
all of this. The CFO explained that some stations still have large,<br />
outstanding Shared Expenses lines owed from previous years, those arrears<br />
are not wiped out with the start of a new fiscal year. The reasons for the<br />
low credit card fees after an increase in credit card pledges during the<br />
on-air fund raiser were discussed.<br />
<br />
The goal for the on-air fund raiser was $800,000, pledges were $628,757.<br />
The on-air fund raiser lasted for 24 days.<br />
<br />
Continuation of Confidentiality Discussion 10:31 PM (ET)<br />
<br />
The committee resumed its discussion of this item from the last meeting.<br />
The provisions of Robert's Rules of Order with regard to committees were<br />
discussed. It was suggested that this item be discussed in executive<br />
session at the next meeting.<br />
<br />
Motion: (Ken Aaron) "To adjourn." (Passed without objection)<br />
<br />
Adjourned 10:37 PM (ET)<br />
<br />
Submitted by R. Paul Martin, Secretary.<br />