Meeting With The Auditor – April 4th

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Despite the obstructurama put up by the Siegel/Brazon faction, the audit commitee finally managed to speak briefly to the auditor, Grant Lam from Armanino.

The complete audio is preserved below. About 45 minutes in, the jockeying around stops and the auditor actually gets to say something.

Here’s the beef:

  1.  One of the primary problems remaining with the 2014 audit (for the period 10-1-13 to 9-30-2014) is securing a statement from Democracy Now that Pacifica does not owe another $658,000 for broadcasting the program in FY 2014.  The second five year contract expired on 9-30-2012 but Pacifica continued to accrue the expense through fiscal 2013, for reasons that have never been clearly explained. From 2002 to 2013, Pacifica has accrued over $6 million dollars in charges to broadcast its formerly owned program.
  2. The other primary problem is ascertaining the amount of money owed to the Empire State Building on the 15 year NY tower lease that ends in 2020.
  3. Pacifica’s CFO and Armanino’s grant partner do not agree on the amount that has been billed to date and the amount the total FY 2014 is expected to cost. Lam stated the current balance due to Armanino is $75,000 and the entire audit is anticipated to come in under $100,000. Agarwal, Pacifica’s CFO, stated that the current balance due to Armanino is $100,000 and the entire audit is anticipated to come in at $150,000.
  4. No engagement letter has been signed for the FY 2015 audit (for the period 10-1-14 to 9-30-2015) which indicates that it will be impossible for Pacifica to meet the CPB deadline for AFRS (Audited Financial Statements) of June 30th or to file its audit timely to the State of California which also requires it by June 30th.

 

 

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