Pacifica National Board
Finance Committee Meeting, February 18, 2005
MINUTES

The meeting convened via telephone conference call at 12:36 p.m. Pacific
Standard Time by Chair Pro Tem Mike Martin.

Mike Martin turned Chair Pro tem position over to David Adelson with no
objections from the committee.

Proposed Agenda:
1. Roll Call
2. Approval of Minutes
3. Confirmation of Chair Pro Tem
4. WBAI Update
5. Review of PNB financial transparency motions and Administrative Council
request for tabling implementation
6. CFO report
7. Review of December Financials


The agenda was revised by unanimous consent to move the WBAI update to after
the CFO report and to add the scheduling of the next meeting to the end of the
agenda.

1. Roll Call
Present: David Adelson, Baruti Bediako, Jane Gatewood, Patty Heffley, Lonnie
Hicks, Mike Martin, Casey McFall, Mark Roberts (joined at 12:50 p.m. pst),
Marnie Tattersall, LaVarn Williams

Absent: Sandy Weinmann

2. Approval of Minutes
Motion by Martin, 2nd by Williams:
That approval of the minutes be postponed to the next meeting.
Passed with no objections

3. Confirmation of Chair Pro Tem
Conformation of Chair Pro tem occurred at the beginning of the meeting, prior
to roll call.

4. Review of financial transparency motions
Lonnie Hicks reported that the GMs held a conference call to develop a
confidential memo that was sent to the Finance Committee, and copied to the
PNB, expressing concerns regarding the implementation of the financial
transparency motions passed by the PNB on December 20, 2004.

Hicks stated that the Administrative Council was composed of the Executive
Director, the CFO, the 5 General Managers and the Archives Director. Hicks
indicated that different stations have varying degrees of difficulty with
providing required information.

Lengthy discussion occurred regarding the request for a conference call with
the "Administrative Council" and the NFC as well as the contents and generation
of the various financial reports.

Hicks agreed that some information is available and would be provided to the
committee "as soon as possible."

Motion by Hicks that the National Finance Committee participate in a conference
call with the 5 GMs to discuss their concerns with the provision of financial
reports, and that any and all available information be provided by the CFO to
the NFC prior to the conference call.
Vote:
Adelson - Meeting Chair
Bediako - yes
Heffley - abstain
Hicks - yes
Martin - yes
McFall - yes
Roberts - yes
Tattersall - yes
Gatewood - yes
Williams - abstain
Motion carried 7 - 2

5. Committee Chair Elections
Motion by Roberts, 2nd by Williams that the committee hold elections for a
Chairperson.
Passed without objection

Candidates for Committee Chairperson are Mike Martin and Mark Roberts. Short
presentations were made by and in support of each candidate. Elections will be
conducted by mail. Ballots will be made available by email and sent in a
double, blind envelope to the Committee Secretary. Deadline to receive ballots
is February 28, 2005. Ballots will be opened and counted in Los Angeles in the
presence of listeners.

David Adelson will continue as Chair Pro Tem until election results are
announced.

6. CFO Report
Hicks reported that he will bring 6 month budget adjustment recommendation to
the committee in March. He also recommended that the committee adopt goals for
the year.

Foundation management is researching options for increasing off-air revenue to
be earmarked for capital improvements. Those options include a 1 million piece
mail drop that coincides with various upcoming station anniversaries.

An asset inventory is currently being conducted.

Elections costs exceeded the budgeted amount by $40,000 - $50,000.

Hicks stated that a bylaws convention will occur in 2006 and there is a need to
begin budgeting for this event.

The costs of implementing the Race and Nationality policies need to be
discussed in the near future.

Fund drive totals to date are:
KPFA - $700,000, expected to reach $1 million goal
KPFK - $785,000, expected to reach $1 million goal
WBAI - two different amounts have been reported - $726,000 and $869,000
over 27 days of fundraising
WPFW - $204,000, ahead of projections for reaching goal
KPFT - $150,000, behind projections for meeting goal

Amounts raised from on-air fund drives have not increased this year. Although
revenues will be close to budgeted amounts, a 3rd year of flat revenue will be
problematic.

Current legal expenses will be paid off this month. However, there are not
adequate reserves to handle potential legal issues or costs.

Concerns surrounding finances at WBAI continue. Hicks reported that:
1. Space costs are too high and discussions are currently occurring with
real estate agents regarding moving the station.
2. The fulfillment rate at WBAI is 10% lower at 75% than the other
stations at 85%.
3. There is a need to reduce staff at the station.
4. There is currently no Development Director. The national Development
Director worked with them prior to the fund drive and continues to
provide assistance. Robert Adams, a Development Consultant is providing
assistance as well.

Hicks stated that the variance in salaries was $15,000 and not $48,000 as
shown, and that the error was a result of a computer software linking error.
Further discussion on the issue indicated that the variance amount was not
completely explained. Hicks will provide a more detailed written explanation of
the variance amounts and reasons by next week.

Discussion related to the variance in salaries included a verbal listing of
staff at the National office and included:
1. Executive Director
2. Chief Financial Officer
3. Financial Analyst
4. Controller
5. Accounts Payable
6. Executive Assistant
7. Web Site Coordinator
8. Affiliates Coordinator

Vacancies that have not been filled include a Human Resources Director, a
National Technology Director, and a National Program Director. In addition to a
lack of funds for salaries, there is not adequate space to house these
potential employees. The hiring of the Human Resources Director at a salary of
$65,000 was budgeted for January 2005 but has not yet occurred. Hicks stated
that a hire date has been moved to June 2005 in order balance the budget.

Hicks stated that part of the variance in salaries could be attributed to the
provision of unbudgeted holiday bonuses to General Managers which were approved
by the former Chair of the iPNB and the outgoing chair of the PNB. Hicks
indicated that he would provide a list of the amounts of bonuses and to whom
they were distributed to the Committee by Wed. February 23, 2005.

The issue of surplus revenues raised by stations in excess of projected goals
was discussed. The Committee will develop proposed policies regarding this for
submission to the PNB for approval.

Hicks stated that January 2005 financial statements would be provided to the
Committee on February 26, 2005.

Next meeting will be March 4, 2005 at 2:00 Pacific Standard Time. The Committee
Secretary will post the meeting notices as appropriate.

Motion to adjourn by Roberts, 2nd by Bediako
Passed without objection

The meeting was adjourned at 3:32 Pacific Standard Time.

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