2008-01-27 Finance Committee Report

The members of the Committee in the 2007 term follow:

      1) LaVarn Williams, PNB Treasurer and Chair, KPFA
      2) Terry Goodman, LSB Treasurer and NFC Secretary, KPFK
      3) Dave Adelson, KPFK Director
      4) Baruti Bediako, LSB Treasurer, WBAI
      5) Brian Edwards-Tiekert, LSB Treasurer, KPFA
      6) Jane Gatewood, LSB Treasurer, WPFW
      7) Lonnie Hicks, Chief Financial Officer
      8) Mike Martin, LSB Treasurer, KPFT
      9) Sandra Rawline, KPFT Director
    10) Berthold Reimers, WBAI Director
    11) Vacant, WPFW Director

Summer Reese, the new LSB Treasurer from KPFK joined the Committee at its January 23 meeting.
Alberto Luera, the new KPFT Treasurer, replaces Mike Martin.

At its meeting of November 29, 2007, the NFC established a WBAI Recovery Workgroup including the CFO, the Foundation Treasurer, and the WBAI LSB Treasurer from the Committee. This workgroup has met frequently on issues of planning and monitoring and has included the participation of the WBAI Interim General Manager, the WBAI Program Director, the Pacifica Special Projects Director, and Pacifica's FCC Attorney.

At its December 10, 2007 meeting, the NFC adopted the following motion:
Resolved, that the Finance Committee's WBAI workgroup shall review WBAI's overall situation and produce a 90-day plan for presentation to the Finance Committee that will include recommendations for best use of available funds in a sustainable manner.

At its January 23, 2008 meeting, the NFC adopted the following motion:
Resolved, that the WBAI Recovery Workgroup of the PNB Finance Committee shall make semi-monthly reports by email to the members of the PNB Finance Committee and the Pacifica National Board on its progress, including but not necessarily limited to comments from the Executive Director, the WBAI General Manager and the WBAI LSB Treasurer.

At its December 10, 2007 meeting, the NFC adopted the following motion:
Resolved, that the Finance Committee approves the draft Policies and Procedures Manual and supports Audit Committee referral to the Board.

Also at its December 10, 2007 meeting, the NFC postponed indefinitely consideration of a referred PNB motion on a Pacifica/WBAI Development Director, with the understanding that the CFO would review this proposal with the incoming Executive Director.

At its Meeting in September 2007, the PNB resolved that "WBAI, PRA and the National Office shall submit budgets with all supporting detail; and the CFO shall initiate internal financial audits at all units within the next 30 days for review and approval by the National Finance Committee. At the end of the 90-day period, WBAI, PRA and the National Office budgets and recovery plans to comply with budgets targets-- including the requirement for a one-half month surplus -- shall be considered for approval or for a continuing resolution."

The NFC review of the Pacifica Radio Archives and National Office FY'08 budgets is currently scheduled to take place on or before March 26, 2008.

MOTIONS FOR CONSIDERATION BY THE PNB

The NFC advises the National Board and national executives that it finds the Pacifica network's financial situation precarious, that the Pacifica National Office's budget is based on optimistic income assumptions in several local station budgets, that there is a significant probability the Pacifica National leadership will have to make significant expense reductions in multiple network divisions in the near future, and that they should plan accordingly.

With due consideration of the financial and operational realities and governance challenges that have confronted the Foundation in recent years and are expected to continue, the PNB Finance Committee recommends PNB adoption of the following resolution.

1. Resolution on Staffing Reductions (Adopted by NFC 12/10/07)

Whereas, the Pacifica Foundation is a non-profit corporation which depends for its survival and the fulfilment of its Mission primarily upon the donation of funds from Pacifica listeners and upon the voluntary contribution of labor from Pacifica's unpaid workers,

And Whereas, the Pacifica Foundation's usable income has declined while its expenses have increased, seriously threatening its financial reserves,

And Whereas, the employees at several Pacifica units have not been reduced in sufficient number to compensate for revenue shortfalls,

Be It Resolved, that the Pacifica National Board gives specific authorization to its permanent Executive Director to effect such staffing reductions at any Pacifica unit as he or she deems necessary for the financial health of the Foundation, pursuant to the normal authorities and responsibilities of a chief executive officer and in compliance with established Foundation policies and procedures.

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The NFC also recommends PNB adoption of the following motion:

2. Resolution on FY'08 Operating Expense Limits (Adopted by NFC 01/23/08)

Resolved, that all Pacifica units shall hold their total operating expenses to at or below FY'07 levels in FY'08, unless waivers are approved by the CFO and the Executive Director after notice with supporting documentation to the PNB Finance Committee. This policy does not supersede spending levels already approved by the Pacifica National Board in FY'08 budgets or existing board policy requiring formal budget adjustment for major variances.


LaVarn Williams
NFC Chair