Finance

At the recommendation of The Finance Committee of the Pacifica National Board of Directors, six directors have proposed an amendment to Article Six, Section One of the Pacifica Bylaws. This amendment would reduce the required number of annual 'in-person' Pacifica National Board meetings from four to three, and would continue the practice of alternating the Board meetings among the 5 Foundation radio station signal areas.

Members of the National Finance Committee and PNB will be provided by their local General Manager with quarterly FTE reports of all individuals by positions, including consultants. A similar quarterly report will be provided to the NFC and the PNB by the National Office. This shall not prevent the NFC from monthly review of this information and in any event a quarterly review shall be presented to NFC.

That, the station General Managers shall provide monthly station financial reports (Income Statements) to their respective Local Finance Committees, when they close their books each month, at the time they transmit their information to the national finance office.

That the National Finance Committee in concert with Pacifica Management and the Elections Committee build or identify an information management system that accurately tracks the number of active members (including persons who have contributed $25 or more or who have volunteered 3 hours or more during the previous 12 months) by the June PNB meeting. The intent of this resolution is to enable a monthly report of active membership.

That the LSB Treasurers in concert with the local General Managers shall receive the key benchmark report (MEMSYS) of membership data, fulfillment rates, pyramid ratios, renewal rates, pledge fulfillment rate, on-air fundraising reports. The GM’s shall also provide a verbal report from the GM to the LSB’s showing the number of days for each fund drive, and the LSB Finance Committees shall receive such monthly MEMSYS reports from LSB Treasurers.

That quarterly expense line items that are at least 10% at least or $10,000 (non including amounts under $1000) whichever is lesser, over budget for the months shall be explained in written notes that accompany the quarterly income statements; the GMs will make these notes for each unit and the CFO will make the notes for the national unit and the PRA. The CFO will make monthly notes for the national office and PRA quarterly. If there is a meaningful financial variance at any station between these periods, the CFO shall provide a short written explanation of same.

That:
a) The National Finance Committee shall be notified of all unbudgeted interdivision transfers of funds, of the reason for the transfer, and of the repayment or reimbursement schedule, if any is applicable;
b) that any unbudgeted interdivision transfer of funds in excess of $5000 shall require approval by the National Finance Committee; and that any unbudgeted interdivision transfer of funds in excess of $20,000 shall require approval by the PNB.

It is hereby reaffirmed that it is the Financial Policy of The Network that each station unit and the National Office shall budget have at the end of the year one month operating reserve. The finance committee will further develop a policy on surplus reserves within this fiscal year.

Whereas the PNB passed a resolution at its Aug. 28, 2004 teleconference meeting requesting that the National Finance Committee develop a policy for unbudgeted inter unit transfers to be brought before the PNB for approval at the October 2004 PNB meeting,

Because of the responsibility of the Pacifica Board to leverage contributions of our listeners, the CFO is hereby instructed to investigate, and report to Pacifica's Finance Committee, the terms and conditions that would attach to a loan of (1) $25 million dollars and/or (2) $50 million.
10/04 Referred to NFC and LSB finance committee for comments