With regard to the committee actions for consideration by the PNB, the NFC met twice with the Pacifica Administrative Council to discuss financial disclosure resolutions. The NFC and the Administrative Council reached compromise agreement on financial disclosure resolutions for consideration by the PNB. The compromise resolution and the previously adopted PNB resolutions are enclosed in this report. The NFC also passed a feasibility report on the implementation of the Anti-Racism and Diversity Resolutions which is attached to this report. The NFC also passed several motions relating to the formatting of the Financial Reports (Income Statements & Forecasts) to make them more user friendly and consistent with best accounting practices. The NFC also passed a motion recommending that the one-month station reserve/surplus by each fiscal year end approved by the iPNB, be maintained as policy of this network. These matters are attached and submitted for consideration to the PNB.
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NATIONAL FINANCE COMMITTEE PROPOSED FINANCE RESOLUTIONS AFTER JOINT MEETING WITH GENERAL MANAGERS
1) Inter-Unit Transfers (no objection 3-21-05)
Resolved 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. In the even of an emergency where it is not possible to gain NFC or PNB approval in advance of the transfer, the NFC or PNB shall be notified by email prior to the transfer and the transfer shall be presented to the NFC or PNB for subsequent ratification after the fact.
2) Monthly Expense Line Items (motion to amend by Hicks, seconded by Tatersall)
Resolved that monthly expense line items that are 10% 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. The CFO will make notes for the national office and PRA monthly. If there is a meaningful financial variance at any station between these periods, the CFO shall provide a short written explanation of same. (passed without objection, Heffly abstained). (Intent: meaningful variances are left to the discretion of the general managers and the CFO)
3) Policy on Reporting Fundraising Information (committee substitute motion by Hicks, seconded by Bediako)
Resolved, 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. (passed without objection).
4) Policy on Reserves (referred to NFC working group)
Resolved that the NFC recommends that policies be developed concerning the accumulation and use of station reserves for purposes other than operating expenses, including but not limited to, reserves for capital projects, equipment purchases, severance obligations.
5) Active Membership (committee substitute motion by Tatersall, seconded by Hicks)
Resolved 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. (passed without objection)
6) Policy on Monthly Reporting of Financial Information to LSB's.
First motion to was to take no action on Resolution 6 and to study number 6. (moved by Hicks seconded by Tatersall, motion fails 4-3).
Second motion was to Amend by removing the word "preliminary" from the originally approved PNB motion. (moved by Tatersall, seconded by Hicks, motion passed 4-3). Motion was presented as follows:
Resolved 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. (passed 4-3; moved by Tatersall, seconded by Hicks) (Hicks clarified that this motion would maintain the status quo in terms of procedures currently in place before the vote was taken, no objection to that clarification).
7) Policy on Monthly Reporting of FTE's (Full Time Equivalent Positions)
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. (passed 4-3; moved by Hicks, seconded by Tatersall)
ORIGINAL NFC RESOLUTIONS ADOPTED BY THE PNB - DECEMBER 2004
1) Inter-Unit Transfers
Resolved 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. In the even of an emergency where it is not possible to gain NFC or PNB approval in advance of the transfer, the NFC or PNB shall be notified by email prior to the transfer and the transfer shall be presented to the NFC or PNB for subsequent ratification after the fact.
2) Monthly Expense Line Items
Resolved that monthly expense line items that are 10% 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 monthly income statements; the GMs will make the s for each unit and the CFO will make the notes for the national unit.
3) Policy on Reporting Fundraising Information
Resolved that the National Finance Committee shall receive monthly MEMSYS on-air fundraising report showing the number of days for each fund drive, the total amount pledged, the total amount of fulfilled pledges and the fulfillment rate, for each station fund drive for the previous 5 quarters, and the LSB Finance Committees shall receive such monthly reports for their respective station.
4) Policy on Reserves
Resolved that the NFC recommends that policies be developed concerning the accumulation and use of station reserves for purposes other than operating expenses, including but not limited to, reserves for capital projects, equipment purchases, severance obligations.
5) Active Membership
Resolved that the National Finance Committee will receive a monthly report from the GM of each station of the number of active members (persons who have contributed $25 or more or who have volunteered 3 hours or more during the previous 12 months.
6) Policy on Monthly Reporting of Financial Information to LSBs
Resolved that, the station General Managers shall provide monthly preliminary 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.
7) Policy on Monthly Reporting of Headcount and Salary Expenditures
The National Finance Committee will be provided by their local business manager with monthly headcount reports that show the names of all individuals paid by the station those months, including their positions, hours worked and amounts paid, including all individuals whose earnings are reported on either W-2 and 1099 forms. A similar monthly report will be provided to the NFC by the National Office. This information shall be restricted to the members of the National Finance Committee and shall be discussed in executive session only.
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NFC BUDGETARY PROCEDURE MOTIONS
1) Motion: 2005 "BUDGET" (passed as amended, McFall objected, Adelson and Heffly abstained)
Whereas, the board at it's October 1, 2004 meeting in Washington D.C. authorized a 2005 Budget with provisos:
Whereas those provisos included changes to accommodate the following:
1. The WBAI Budget
2. Changes in the training line item for National Board expenses.
3. Changes in the funding for legal expenses.
And whereas also incorporated in the Budget there were 2 items that changed due to new information:
4. KPFA Total Income was corrected to accommodate an error that added $39,309 in additional revenue
5. PRA Total Income reduced by $39K, and Capital was reduced by $24,548
Be it resolved that this Finance Committee recommend to the PNB that the November 11, 2004 presented budget as stated above be ratified as the Network Budget for review and approval by the PNB at the April 2005 Meeting in New York City.
2) Motion: Network Budget Monitoring Policy (adopted as a substitute, no objection)
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.
*Motion was approved by the iPNB at the 2003 New York City meeting.
3) Motion: Balancing Budget Categories and Bottom Line Requirements (referred back to working group)
It shall be the financial policy that each station unit and the National Office shall maintain a balanced budget among the following major categories within 10% of the Fiscal Year's Budget amounts:
a) Salaries and Related
b) Administrative
c) Programming
d) Development
Significant exceptions and waivers to these requirements can be made by the PNB after review and upon the recommendation of the Finance Committee and the CFO.
4) Motion: Quarterly Forecasting and Reforecast (adopted, no objection)
It shall be the policy of the PNB in the budget monitoring policy that each quarter the budget is to be re-forecast when:
a) Any variance from the Board approved budget greater than 10%, and shall include a written comment explaining the variance.
b) Any re-forecasted budget or line item shall not alter the requirement that each station unit and the National Office retain 1 months operating reserve by the end of each fiscal year.
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THE HIRING OF TWO ANTIRACISM AND DIVERSITY COORDINATORS AND THE FEASIBILITY OF A NATIONAL DAY OF FUNDRAISING
Report from the National Finance Committee
passed without objection**
The National Finance Committee was asked by the PNB to evaluate the feasibility of hiring two antiracism and diversity coordinators and the feasibility of a national day of fundraising along with further implementation of the antiracism and diversity resolutions. The following is the analysis of the Committee.
I. Antiracism and Diversity Coordinators
The PNB asked the NFC to evaluate two part time coordinators one headquartered on the west coast and one on the east coast. Based upon this limitation, the following definition of the job responsibilities of these coordinators is offered:
A. Job Description: The coordinators will be responsible for anti-oppression and antiracism policy implementation, diversity training and COI interaction and coordination. In the context of training, the coordinators will assist in the implementation to town hall meetings and training of staff on these issues. The west coast coordinator will also be responsible for coordinating KPFT, Houston.
B. Budget For Coordinators:
Two FTE's will be created. One FTE will be weighted at .75 (west coast because of the Houston responsibility) and the east coast FTE will be .50.
Estimated costs - Coordinators
Salary (1.25 FTE's) $50,000 - 65,000*
Search $1,000
Office support $2,000
Travel (9 trips) $10,000
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Total 63,000 - $78,000
*This figure includes health benefits which are calculated at 30% of base salary. Therefore a .5 FTE with a base salary of $20,000 adds $6000 for benefits. A .75 FTE at a $30,000 base salary add $9000 yielding the range of $50,000 - $65,000.
C. Budget for Programming
The resolutions also contemplate initiation of network programming on antiracism and diversity including a Spanish language program. The NFC recommends the creation of an intra-network organizing team to facilitate the creation of this programming. The mandate of this team would be to 1) organize the program 2) create the programming 3) and insure that training for on air programming occurs. Obviously, once created the west/east coast coordinators would become part of this team, once hired. It is generally estimated that production and programming costs for this endeavor would be approximately $100,000.
Salary: 1.5 FTE: $45,000
Benefits: $13,500
Production Expenses: $40,000
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Total: $98,500
TOTAL PROJECTED BUDGET: $175,000 - 200,000
II. National Fundraising Day
As a predicate to implementation of the above general outline, a National Day of fundraising should take place. A suggested target date for such an effort would be the middle of June. The National Day of Fundraising should be carefully planned by the organizing team and creatively presented. The National Fundraising Day should provide special programming on historical and cultural perspectives of race and to raise listener interests. Utilization of the archives would be important in this effort. Premium packages would need to be created. The cost of these premium packages is not included in this estimate. The implementation of the program should not go forward until the National Fundraising day is complete and if the National Fundraising Day does not meet expected goals, a contingency plan should be developed to determine how to fund the project on a sustainable basis in both the short and the long term before implementation. The funds should be held in a segregated escrow account.
The organizing team should also develop strategies for grant writing.
Projected revenue from National Day of Fundraising - $150,000 - $200,000
** Tatersall objected to the hiring of two race and nationality coordinators before hiring one full time human resources coordinator at the National Office.
Finance 
