Pacifica National Board
Finance Committee Meeting
October 13, 2005

The meeting was called to order at 3:30 p.m. pacific standard time by David
Adelson, Chair.

Attendance
Present: David Adelson, Teresa Allen, Baruti Bediako, Jane Gatewood, Pattey
Heffley, Lonnie Hicks, Casey McFall, Mark Roberts (joined at 5:55 p.m.), Marnie
Tattersall, Sandy Weinmann (joined at 6:40 p.m.), LaVarn Williams (joined at
4:15 p.m.)

Guest: Ambrose Lane

Proposed Agenda
1. Roll Call and Approval of Agenda
2. Approval of Minutes
3. Budget Calendar
4. Review of NFC committee report to the PNB
5. Review of available financial reports
6. Accounting standards, including accounting for reserves
7. Setting next meeting date
8. Adjournment

Approval of Agenda
Moved "review of available financial reports" and "setting next meeting date"
to immediately after approval minutes.

Approved without objection

Approval of Minutes
Motion by Allen to table approval of minutes until next meeting.

Approved without objection

Scheduling of Next Meeting
The next meeting was scheduled for Thursday October 20, 2005 at 3:00 p.m.
pacific standard time.

Motion by Williams that the National Finance Committee schedule an in-person
committee meeting to discuss committee goals and processes, and that the NFC
request PNB approval for expenditure of funds for the attendance of station
Treasurers.

Motion tabled until next meeting

Budget Calendar
The Interim Executive Director will request that the Chief Financial Officer
submit a proposed budget calendar to the National Finance Committee.

Report of NFC to PNB
Motion by Adelson to adopt the National Finance Committee report to the
Pacifica National Board as transmitted to the committee by Gatewood,
incorporating the agreed upon changes, and authorizing the Chair to make
adjustments for clarity and accuracy with respect to the KPFA and KPFK cash
analysis, and to delete Item #7 in Attachment C, Accounting for Surpluses and
Reserves.

Adelson - Yes
Bediako - Yes
Gatewood - Yes
Heffley - Yes
McFall - Yes
Roberts - No
Tattersall - Yes
Weinmann - Abstain
Williams - Yes

Motion carried


Motion by Tattersall to adjourn
No objections

Meeting adjourned at 6:52 p.m. pacific standard time

Respectfully submitted,
Casey McFall
Secretary
These minutes were approved on 11/29/07.

Attached: NFC Report to PNB













To: Members of the Pacifica National Board
From: National Finance Committee
Subject: FY2006 Budget Recommendations and Background Information
Date: October 10, 2005

The National Finance Committee met on several occasions, most recently on
September 18, 2005, to review and consider the 5 approved station budgets as
well as the proposed National Office and Pacifica Archives budgets. A summary
of the NFC motions and budget narratives provided by the GM's and/or
treasurer's for each of the stations is attached to this document for the
record (see Attachment A "Budget Recommendations/Narratives").

< The NFC recognizes that the proposed budgets do not include funding for
National Spanish Language Programming and it is the intention of the NFC
to address this issue prior to the 1st quarterly budget forecast.

< The NFC disagrees with the cash analysis provided in the CFO report
distributed to the PNB on 9/26/05. The implication is an additional $1.1
million in projected cash balance 9/30/06 for KPFA and KPFK. A detailed
explanation of this item is provided in Attachment B.

Background Information

1) The CFO has raised concerns about the potential threat to the network that
is posed by budgets that do not adequately provide for unexpected
contingencies.

( The NFC (as a body) shares this overall concern, although we find
the mechanisms for accounting for these issues is inadequate.
Additional information on this topic is provided in Attachment C
"Accounting for reserves and surpluses."

2) During this budget development and approval process, the work of the NFC
and the LSB's was seriously hampered by the lack of clearly defined
expense categories and standardized templates that show current (proposed)
annual budgets compared with prior year budget line items, including
projected actual income and expenses for the current year.

WBAI and KPFK local finance committees were unaware of ANY templates until
very late in the budget generation process. The KPFA and WPFW treasurers
independently generated comparison spreadsheets for the use by their local
finance committees. Similar efforts by other treasurers were met, at
times, with criticism.

Despite these handicaps, all 5 LSB's met to consider and approve budgets
for submission to the NFC. Unfortunately, two of the station budgets were
submitted well past established deadlines, a factor which created
unreasonable obstacles to the work of the CFO and the NFC.. (Attachment D
provides information about these delays provided by the treasurer's of the
respective stations). While the CFO and treasurers began dialoguing in
February concerning a workable timeline, this effort was clearly a "work
in progress" for the current budget cycle.

( It is the intention of the NFC to focus its work in the immediate future
on:

a) developing a proposed budget timeline with the possible inclusion of
sanctions against LSB's that fail to act in a timely fashion; and

b) developing proposals for revised formats and streamlined production
procedures for our financial statements.
ATTACHMENT A - FY2006 BUDGET RECOMMENDATIONS

The National Finance Committee recommends that the Pacifica National Board:

1) adopt the KPFA budget approved by the LSB, with the provision that the GM
develop and present an 18-month plan to reduce salaries as a percentage of
listener support to bring the ratio of salaries to listener support in
line with that of other units in the network;

2) adopt the KPFK budget approved by the LSB, with the correction of a
scrivener's error which will allocate $8,000 for LSB expenses as opposed
to $10,000; such correction to be documented by an email from the LSB
Chair to the CFO and the NFC;

3) adopt the KPFT budget approved unanimously by the LSB;

4) adopt the WPFW budget as approved by the LSB with revisions to CPB grant
income and Free Speech Radio News expenses provided by the CFO as follows:
(a) Grants income increased $262,548 to $294,708; and (b) FSRN expenses
increased $71,260 to $81,046

5) adopt the WBAI budget as approved by the LSB with the changes of the
subsequent increase to CPB funding to $517,610, major donations to
$325,000, and salaries and related expenses to $1,356,178 [subject to
confirmation from the LSB Chair to the CFO and the NFC that such changes
are consistent with LSB recommendations];

and that the WBAI General Manager be required to produce a 9-month cash
flow statement to be submitted to the CFO and the NFC by November 2, 2005
that demonstrates that the station is fiscally sound.

This motion was subsequently amended to state, "That the increase in CPB
funding of $27,770, minus the restricted amount of the CPB grant be
allocated to the Development Consultant, and the balance of $4,867 be
raised by community events as indicated in the initial proposal from the
GM. Major donations will remain at $300,000."

6) adopt the National Office budget as presented.

7) adopt the Pacifica Radio Archives' budget as presented.

In addition, a motion (by Hicks) was approved recommending:

"that the Pacifica National Board shall have an operating policy that
requires changes to budget categories that exceed 10% or $50,000 be
forwarded to the appropriate LSB for approval and to the PNB for adoption
at each quarterly in-person meeting."

These recommendations were approved by a majority of committee members present
and voting in a special National Finance Committee meeting held via
teleconference on September 18, 2005.