Pacifica is the nonprofit that owns KPFA and 4 other radio stations across the country. When this summer started, it was in chaos. Recently-terminated executive Summer Reese had barricaded herself in Pacifica’s offices, blocking elected board members’ access to Pacifica financial records. Her supporters were suing to reinstate her and throw some elected members off Pacifica’s board. And vendors whose bills Reese had left unpaid for more than a year were starting to file lawsuits to collect.
SaveKPFA‘s members and representatives have been hard at work to put things to rights. In May, long-time civil rights attorney (and SaveKPFA member) Dan Siegel took on Pacifica’s legal woes, winning a court decision that rejected each and argument by Reese’s supporters, and securing a court order that forced her to leave the building.
By late June, Pacifica’s chief financial officer, Raul Salvador, whom Reese had also locked out, had re-secured access to all of Pacifica’s accounts and electronic records. In July, Pacifica Board Chair (and SaveKPFA member) Margy Wilkinson became Pacifica’s de facto executive director, a job she’s doing on a volunteer basis while she works to get a permanent replacement into that position.
In a recent report, Wilkinson described an office left in complete disarray. “The staff in the national office is working hard. They are 5 (plus me) at this point – trying to locate files, reconstruct financial records, getting papers in their proper places, fielding calls from anxious vendors and trying to get a fix on how much money we owe and how many bills we can pay.”
The silver lining: by volunteering her time, leaving some recently-vacated positions unfilled, and whittling away at unnecessary bills, Wilkinson has already made significant cuts to spending at Pacifica’s national office. Wilkinson also reports progress resolving union/management conflicts at WPFW in Washington DC, and on making major reductions in the rental costs for the antenna of WBAI in New York, Pacifica’s most financially-distressed station.
Financial committee chair reports
The new chair of Pacifica’s national finance committee, KPFA staff representative (and SaveKPFA member) Brian Edwards-Tiekert, has issued a report on the state of Pacifica’s books. “Most of Pacifica’s cash transactions (deposits and wire transfers, especially transfers between Pacifica’s stations and the national office) have not been recorded in its accounting system since the beginning of the fiscal year (October 2013). Beginning with the National Office takeover in March 2014, all payrolls went unrecorded. There is some evidence that inappropriate and unauthorized payments were made during this time.”
“Meanwhile,” Edwards-Tiekert’s report continued, “it appears few spending controls were in place at Pacifica: during a period when the Pacifica National Office was adding staff and raising salaries, it was also racking up large unpaid bills with vendors, attorneys, and consulting firms — the folks now working in the national office have discovered unpaid bills going back to last year that were never disclosed to the board, many of which were never recorded in Pacifica’s accounting system either. The poor state of the books makes it difficult to determine which past-due bills need to be prioritized. Two vendors have filed lawsuits against Pacifica to collect on what’s owed to them.”
But, Edwards-Tiekert added, he has confidence in the people working to clean things up. Their top priorities: completing a long-overdue audit to help secure the release of Pacifica’s Corporation for Public Broadcasting grants, and publishing long-overdue financial statements for the current fiscal year so that Pacifica can take stock of what it needs to do to bring its budget into balance and start catching up on unpaid bills.
RELATED STORIES: Pacifica: putting the pieces back together (includes financial report) | Lawyer representing board minority jumps ship | Finally, local control at KPFA