Never Mind

 

dove

 

Berkeley-Recovering from a brief 15-minute flirtation with taking action to address the financial crisis, interim executive director Lydia Brazon ignored  a unanimous vote from the board of directors and didn’t pay for the audit. The motion  instructed her to use last week’s $50,000 bequest to KPFK to get the 2014 audit report released, and then use the 2014 audit  to take out a loan on the national office building and pay a long list of pressing items.  Didn’t happen.

never mind

Brazon over-ruled CFO Sam Agarwal and sent $40,000 of the $50,000 KPFK bequest to election vendor True Ballot instead.

The failure to get the audit out of hock means negotiations with the Empire State Building remain stalled. The board’s liability insurance will expire on August 11th and will not be re-issued without the audit report.

Pacifica’s Corporation for Public Broadcasting grant funds have been cut off  and the network loses $2,000 every day in federal funding until  the audit reports are caught up.  (Pacifica is two years behind).

The CFO reported at the finance committee meeting on Tuesday night that Pacifica is in default on the July 15th payroll for WBAI,

Brazon’s Tuesday  diversion of bequest funds to an election vendor while Pacfica remains in default on payroll may be a labor law violation.

The motion language is below.

**
The PNB directs management to:

1. Transfer from KPFK funds to pay enough of Pacifica’s FY2014 audit fees
(approximately $30,000), to secure a signed audit for that year.

2. Use the 2014 audit to pursue and present to the board for approval a mortgage against the property at 1925 Martin Luther King Jr. Way in Berkeley (which currently houses the National Office). Any such loan must have its termsapproved by the PNB to enter into effect.

3. Prioritize the proceeds of the mortgage as follows:

a. Pay off the remaining balance of the FY2014 Audit (approximately $25,000)

b. Pay our auditing firm the tax preparation fee (approximately $20,000) so
Pacifica can file a Form 990 for FY2015 in time to stay legally compliant (August 15).

c. Pay the engagement fee for the 2015 audit (approximately $15,000), so work on that audit can begin, and Pacifica can make progress toward reinstating its CPB eligibility.

D. Replenish the working capital depleted by paying for the 2014 audit. (approximately $30,000).

E. Pay the remaining costs of the 2016 Local Board elections (approximately
$100,000) so Pacifica can comply with its bylaws, and avoid cost increases and legal expense resulting from delays.

F. Create a reserve fund of $85,000 for the sole purpose of paying FY2015 audit fees, so that inability to pay them does not delay Pacifica’s progress toward CPB reinstatement.

G. Pay off any other debt (e.g., from the corporate credit card) accumulating interest charges at a higher rate than the mortgage.

H. Finance the initial costs of phased national direct mail appeals, which shall continue only if, and so long as, the return exceeds the investment.

I.  Upgrade Great Plains (approximately $50,000), to prevent failure of Pacifica’s accounting system.

4. Develop plans for either selling, or renovating and renting out, the
Property at 1925 Martin Luther King Jr. Way in Berkeley, which plans shall include estimated costs and benefits, implementation timetables, and shall require Board approval before being implemented.

Amendment # 1

Locate excess funds at any and all units and, if they are sufficient, use them to pay enough of Pacifica’s FY2014 audit fees (approximately $30,000), to secure a signed audit for that year.

Amendment #2

Amend: by adding making #38,377 available to pay for the 2016 Delegates election mailing costs.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.