Berkeley – Every January, according to Pacifica’s badly written bylaws, the Pacifica National Board resets itself. This leads to regular chaos and 2018 was no disappointment in that regard. So the business of financial recovery has gone on almost exclusively in closed sessions of the board. We will fill you in on all the craziness below, but in deference to the seriousness of the situation, we are going to cover a few things of more significance first.
Pacifica’s financial audits, the subject of so much suffering for so long, seemed to be within shooting distance of finally getting current in mid-2017, when the FY 2015 audit was completed in August in record time. But 7 months later, the FY 2016 audit, which needed to be done by June 2017 or as soon thereafter as possible, hasn’t gone anywhere. Pacifica in Exile readers will remember that an audit fundraiser was held in March of 2017 to raise funds to pay for the two back audits with great success. Pacifica remains under some pressure to get the FY 2016 audit done with an original deadline from the CA Attorney General of mid-February 2018. Pacifica’s first attempt to get an extension was rejected, and a second attempt is underway. The ability of all the stations to accept charitable donations would be at risk if Pacifica’s tax-exempt status were pulled, a possible consequence of failing to submit timely financial audits. Continue reading The Return of Self-Selected Boards or Control At Any Price→
Berkeley – On the evening of January 18, the Pacifica Foundation board formally approved and accepted a loan put together by the organization’s members in Southern California to pay off a pending judgment to the Empire State Building and keep the organization out of a Chapter 11 bankruptcy filing.
The member loan is a short-term bridge loan intended to pay off the judgment immediately and transition the organization into a 3-year line of credit that will follow.
The three to three and a half year timeline will allow Pacifica to explore several options to pay off long-term debts and finally get clear of the extortionate Empire State deal that swallows so much revenue without having to engage in fire sales, and retains the organization’s independence. Continue reading The End Less Near – Pacifica Board Approves Loan→
Friends of Pacifica in Southern California have now secured bridge loan funds of $2 million dollars to pay off the summary judgment amount to the Empire State Building. An escrow account has been set up and full payment will follow shortly afterwards. Full payment of the judgment due will remove the threat of asset seizure.
Berkeley – When making decisions about how to go forward, we believe it is always helpful to look at the actual numbers. The adage “follow the money” applies to well, just about everything. Pacifica has released a draft profit and loss statement for the last fiscal year that ended on September 30, 2017. (Finally).
We need to disclose that it is a “draft” financial statement, so the numbers are not finalized, but at 95 days after the end of the fiscal year, most financial transactions should have been recorded in the books by now.
