Pacifica: putting the pieces back together

pacifica logoLast month, we reported on the dire state of the books at Pacifica, the nonprofit that owns KPFA. Pacifica’s new CFO Raul Salvador and board chair Margy Wilkinson (a member of SaveKPFA) found an operation in disarray, after being locked out of the network’s National Office next door to KPFA for two months by ousted executive Summer Reese. Bookkeeping entries had not been made for nine months, and there were unpaid bills lying in large, unorganized stacks, some of which were slated to be shredded until Wilkinson intervened.

After weeks spent reconstructing financial data, Pacifica’s new staff have now issued the most complete network financial statements since Pacifica’s 2012 audit.

Stiffing pension to pay consultants

moneyThere was massive overspending at the National Office, which, according to a report from Pacifica National Finance Committee chair Brian Edwards-Tiekert “produced the largest loss the Pacifica National Office has posted since the height of Pacifica’s civil war in 2001.”

Adding injury to injury: while last year’s leadership was running up large bills with temp agencies, consultants, and law firms, they were skipping payments to the pension fund for Pacifica workers, and holding on to payroll taxes that were supposed to go to the IRS.

The good news: the overspending and deficits appear to have leveled out. So far this year, the network is basically breaking even, and there are more savings on the horizon. If Pacifica is able to restore its eligibility for Corporation for Public Broadcasting funding, it should run a healthy surplus. (CPB funding was suspended in 2013 over compliance issues, cutting the network’s revenues by over $1 million per year). | READ financial report, Excel financial spreadsheets (balance sheets, income statements, consolidated monthly sheet)

Crisis management

The biggest challenge facing Pacifica’s new leadership are the angry creditors they have inherited from the Reese era — several of which have initiated lawsuits.

But there is progress on this front as well: new interim executive director Margy Wilkinson negotiated a 21-month interest-free payment plan with an attorney who had been suing Pacifica over unpaid bills. And in early September, the Pacifica National Board voted to approve a 0% interest loan of $156,000 to cover an unpaid tax bill it inherited and head off further penalties. The loan comes from Aris Anagnos, co-founder of the Los Angeles Peace Center and the Humanitarian Law Project, as well as a long-time supporter of Pacifica’s KPFK in Los Angeles. (You can learn more about Anagnos by listening to this interview with him on KPFK). Anagnos had asked that the discussion of the loan and his name both be made public — to inspire other major supporters to join him in helping Pacifica through its current difficulties.

Now that Pacifica’s financial records are getting cleaned up, Wilkinson reports that it’s getting easier to push back on some claims by creditors. Recently, she talked down a vendor threatening to sue over money Pacifica had already paid.

Still unresolved is the money owed to Pacifica’s pension fund, and lawsuits over unpaid bills, including one from a temp agency Pacifica used heavily last year, and another from Free Speech Radio News, which was forced off the air in mid-2013 after Pacifica stopped making payments for its daily newscast.

RELATED STORIES:  Fixing Pacifica (includes financial report) | Lawyer representing board minority jumps ship | Finally, local control at KPFA

KPFA listeners stick around for Uprising at 8AM

uprisingThe new 8AM lineup featuring award-winning Pacifica programmer Sonali Kolhatkar‘s Uprising Radio is doing well. Uprising follows Upfront with Brian Edwards-Tiekert at 7AM. Since the program began in late May,audience retention from the hours of 7 to 8 has improved.

KPFA’s interim general manager Richard Pirodsky said he put Kolhatkar’s show in the 8AM slot for just that reason — to solidly keep KPFA’s audience listening during peak drive time of 7 to 9AM, and it appears to be working. The previous morning hosts have been given airtime in the afternoon.

Pirodsky delivered a report to last Saturday’s LSB meeting describing his reasoning, and asking critics to take a step back and consider the needs of KPFA’s entire listening community. | LISTEN to iGM’s report, READ iGM’s report, LISTEN to LSB meeting: part a, part b, part c

The truth about KPFA’s financial records, from the station’s treasurer

KPFA-radio-dialThis is a statement released on 4/2/14 by KPFA’s elected Local Station Board treasurer, Barbara Whipperman.

“The business manager at KPFA is working on a complicated reconciliation of the KPFA financial records. The complications center around the records of income from credit card donations, many thousands of records. There are statements from credit card processing companies involved, as well as the monthly bank statements.

“The temporary controller from the national office wanted to take all records out of the KPFA office, saying she would complete the reconciliation in the national office. Neither the business manager nor I (KPFA LSB treasurer) agreed to this. In other words, we refused to turn over this function to the national office.

“There has been no refusal to prepare for the necessary audit, the preparations are under way. As treasurer, with many years experience in this kind of work, I have been assisting the business manager where possible. Any claim that all the other stations are completely ready for the auditors is completely false, and those in the national office who are
saying so, know that it is not true.

“I have personally examined the records in the KPFA business office. All records are complete and in order, in preparation for and up to the reconciliation to the bank statements, which, as I have said is well under way.”

Barbara Whipperman
KPFA LSB listener representative and Treasurer

FLYER: An open letter to Reese | FLYER: What’s happening at KPFA & Pacifica?