Minutes for the regular National Finance Committee meeting January 14,<br />
2010.<br />
<br />
Meeting convened at 8:36 PM (ET) a quorum being present, the Chair and<br />
Secretary being present.<br />
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Attending: Grace Aaron, Sherry Gendelman, Mike Jones, Luzette King, Fred<br />
Klunder, R. Paul Martin, Jamie Ross, Lavarn Williams, Susan Young, also<br />
attending were Executive Director Arlene Engleheart, National Technical<br />
Director Jon Almeleh and Berthold Reimers.<br />
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Agenda:<br />
<br />
1. WPFW budget<br />
2. National Office budget<br />
3. Revenue policy<br />
4. Response to auditor's letter<br />
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<br />
The Chair welcomed R. Paul Martin back to the committee.<br />
<br />
Motion: "To approve the agenda." (passed without objection) 8:42 PM (ET)<br />
<br />
WPFW budget 8:42 PM (ET)<br />
<br />
The committee discussed the WPFW FY10 budget proposal. It was noted that<br />
the CPB is granting some extra stimulus money and that's in this budget. <br />
National Technical Director Jon Almeleh outlined the problems with WPFW's<br />
transmitter and other equipment.<br />
<br />
Motion: (Jamie Ross) "Based on minimal review, the NFC recommends that the<br />
PNB approve the WPFW budget. The NFC notes that this budget calls for an<br />
increase in revenue of 35% over last year's actuals. Therefore, The NFC<br />
recommends that the PNB request that WPFW Management produce a contingency<br />
plan by February 20, 2010, regardless of income received up to that point."<br />
(Passed without objection)<br />
<br />
National Office budget 9:49 PM (ET)<br />
<br />
The committee discussed the National Office FY10 budget proposal. After<br />
the discussion it was decided to postpone further consideration of it to<br />
the next meeting.<br />
<br />
Revenue policy 10:22 PM (ET)<br />
<br />
Pacifica Executive Director Arlene Engleheart brought to the committee the<br />
draft of a document named "Pacifica Foundation Fiscal Accountability." Part<br />
of it is confidential, but the below part is not confidential.<br />
<br />
"How would the system work?<br />
	<br />
The National Office would create 6 "Station Revenue Accounts" – one for<br />
each of the five stations and one for the archives in the cities where<br />
they are located.  Both the National Office and designated station<br />
personnel could monitor their respective accounts, e.g., WBAI and National<br />
Office could monitor the WBAI Revenue Account, the Archives and National<br />
Office could monitor the Archives Revenue Account, etc.  Only the National<br />
Office could transfer funds out of these Revenue Accounts. <br />
<br />
- All revenues received by the station would be deposited in the revenue<br />
account.  <br />
- On the first of each month, the National Office would transfer the<br />
budgeted funds for each station to the station Operating Account<br />
(excluding payroll expenses).   Stations would have total control of their<br />
Operating Account.<br />
- Payroll expenses for each station would be transferred to the National<br />
Office Payroll Account (National Office issues all payroll checks).  <br />
- Central Services allocation for each station would be transferred to the<br />
National Office Account.  <br />
- Restricted funds would be transferred to the Station Restricted<br />
Account(s).  Restricted Accounts would belong to the respective stations,<br />
e.g., KPFA Restricted Account, Heath Fund; WPFW Restricted Account, Dr.<br />
Leonard Fund, etc.  The National Office would control the Restricted<br />
Accounts.<br />
- Any exception to the above would require the approval of the NFC and/or<br />
the PNB.<br />
<br />
<br />
This system will provide fiscal accountability in the areas of 1)<br />
Collection, 2) Deposits, and 3) Expenditures.<br />
<br />
- All funds collected will be deposited in the Station Revenue Account. <br />
This includes: checks, credit card contributions, Pay Pal, Lock Box,<br />
Federal and other grant income.  I will institute a study to determine<br />
that we are using the most expeditious means of collection.<br />
- Deposits will be monitored and reconciled by the National Office.<br />
- Expenditures will be limited to the monthly deposit to the Operating<br />
Account.  This will ensure that each station operates within its budget. <br />
In order to be accountable to the board, the National Office has to<br />
control the purse strings.  There will be a "contingency amount" in each<br />
Station Operating Account to allow for emergency and unexpected expenses. <br />
The station will have to account for these contingency funds before they<br />
will be replenished."<br />
<br />
The Executive Director said that she wanted feedback from the committee<br />
regarding the document. She noted that at KPFA a check for $375,000 had<br />
been found sitting in a desk drawer after 14 months, the $1,000,000 gift<br />
to WPFW had only been one fifth fulfilled, at WBAI there were problems<br />
with receiving revenues due to mistakes made with P.O. Boxes and that<br />
there were other problems that could have been prevented if the National<br />
Office were to get the first look at actual developments. She said that<br />
things were running amok, and that a confidential Management letter from<br />
the auditor made Pacifica even more liable for lapses. The committee<br />
discussed this proposal.<br />
<br />
Motion: (Susan Young) "That the committee endorse the policy." (passed 5<br />
for, 1 against, 1 abstention)<br />
<br />
Amendment: (Mike Jones) "The NFC recommends that this motion be referred<br />
back to the Executive Director and for the inclusion of a standard<br />
business case that starts with problem analysis presents options, issues,<br />
risks, impacts and analysis and which references the current environment,<br />
and precedes the recommendation ." (Fails 1 for, 6 against)<br />
<br />
Motion: (Jamie Ross) "To adjourn" (passed without objection)<br />
<br />
Adjourned 11:38 PM (ET)<br />
<br />
Submitted by R. Paul Martin, Secretary<br />