2007-03-23 Finance Committee Report

Officers were elected. The members of the Committee follow:

      1) LaVarn Williams, KPFA, PNB Treasurer, Committee Chair
      2) Terry Goodman, KPFK, LSB Treasurer, Committee Secretary
      3) Dave Adelson, KPFK, Director
      4) Baruti Bediako, WBAI, LSB Treasurer
      5) Brian Edwards-Tiekert, KPFA, LSB Treasurer
      6) Jane Gatewood, WPFW, LSB Treasurer
      7) Lonnie Hicks, Foundation CFO
      8) Thomas Ruffin, WPFW, Director
      9) Sandra Rawline, KPFT, Director
    10) Berthold Reimers, WBAI, Director
    11) Bob Sanborn, KPFT, LSB Treasurer


The following major areas are presented for your consideration:

I. Financial Impact Statement Review
II. Motion for Future Consideration by the PNB
III. Motion for Consideration by the NFC
IV. Preliminary Proposed Goals/Objectives for 2007

I. Financial Impact Statement Review

The PNB Finance Committee has reviewed the CFO's financial impact summary for the DDD project (as amended) and finds the project financially feasible and the impact summary reasonable, but recommends that the PNB carefully ensure compliance with the self-dealing provisions of the California Corporations Code and IRS Tax Codes pertaining to determination of status as an employee versus a contractor. The National Financial Committee is not reviewing or commenting upon the merits of any particular person doing this work.

II. Motion for Future Consideration by the PNB

The PNB approves the process that in addition to existing provisions for contract review and approval, that the Coordinating Committee review all proposed legal settlements, in consultation with the General Counsel. (Motion approved without objection January 10, 2007.)

III Motion for Consideration by the NFC

Whereas, the National Finance Committee with the Chief Financial Officer has the responsibility to review and recommend the annual budget for board approval, the NFC proposes that meetings with Operations shall commence at each in-person PNB meeting to review the budgeting process and the initiatives that Operations and Finance are exploring and the Operations group is implementing in the current fiscal year and plan for future years.

IV. Preliminary Proposed Goals/Objectives for 2007

Finance / Planning Models
Develop an 18 month budget planning outline that allows a forward look at critical cash flow needs of the first quarter of the upcoming fiscal year. (30 days)
Identify the long-term impact of existing salary models within the network and explore options including analyses of productivity. (120 days)

Financial Reporting, Oversight, and Policies
Review and approve a network-wide financial policies and procedures manual. (45 days) Work with CFO to increase Timeliness, Clarity, and Consistency of financial reporting including, but not limited to:
     Review and approve a standard network-wide chart of accounts. (45 days)
     Implement quarterly headcount as approved by the PNB.
     Implement a Foundation wide signature authorization level for bank and investment accounts,
       expenses, capital, and headcount.
     Review and approve budgets for all network units in a timely fashion. (Ongoing, beginning
       now, with completion by Aug 30th - 180 days)
     Review and approve a PNB meeting expense policy. Policy to include Director Responsibility
       for the additional expenses of late reservations, early arrivals, extra stays, and long distance
       phone calls billed to hotel rooms. (90 days)
     Review and approve a policy to guide investment of restricted endowment funds and cash
       surpluses. (120 days)

ONGOING PROJECTS
(as of March 1, 2007)

PNB meeting Expenses
CFO to report on expenditures for last 5 PNB meetings and each future meeting including: transportation (including airfare), hotel lodging and meeting rooms, food and miscellaneous, and estimate of national staff time spent in support of these meetings. National Office, LSB's and Station management: Work to reduce annual meeting cost by 10%, with half of any achieved local savings being devoted to increasing the outreach budgets of stations that meet their portion of this goal.

Legal Expenses
CFO to prepare monthly report on legal expenses including forecast / trends over prior years. NFC to prepare summary of already adopted motions related to legal expenses and procedures. Consider need for PNB to approve major Foundation legal settlements.

New Partners Initiative
(ED and CFO) identify funds in National Office budget to explore outreach with potential new partners for the Pacifica network and propose RFP process for disbursal of these funds. (ED and CFO) identify creative sources within network and in community at-large that support the Mission and have potential to develop additional revenue streams.

Archive Restoration Project
Work with Archives Committee to generate off-air fundraising as a revision to the PNB approved motion authorizing income transfers from the stations whose source of funds is primarily on-air fundraising.

LaVarn Williams
NFC Chair