A Partial Financial Landscape of KPFA

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Compiled by Janet Kobren, including notes by Kobren interspersed 
This article is supplemental to Does the $400K Bequest Belong to KPFA

FY2015 KPFA BUDGET APPROVALS BY KPFA LOCAL STATION BOARD (LSB) AND PACIFICA NATIONAL BOARD (PNB) NATIONAL FINANCE COMMITTEE (NFC)

FY2015 KPFA budget (Approved LSB: 10/18/14; Approved NFC: 10/23/14)

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COMPARISONS OF KPFA BUDGET FIGURES (2013 – 2016)

Kobren notes the following:

The KPFA GM is responsible for preparing and managing the KPFA budget while the KPFA LSB is responsible for approving the KPFA budget. What would also be useful would be to have the listener membership numbers over this same time period.

No Coal in Oakland Rally. Photo by Brooke Anderson

“Speaking to the Crowd” ~No Coal in Oakland Rally~ Photo by Brooke Anderson

Below are KPFA LSB approved budget figures from FY2013 – FY2016:

Budgeted Fund Drive Days (Assumptions)
FY2013 = 89 days

FY2014 = 79 days
FY2015 = 89 days (actual was 65 days because 24 days — April 15 and April 27-May 19 fund drive days were cancelled)
FY2016 = 71 days

Projected (Budgeted) Listener Support Money
FY2013 = $2,680,476

FY2014 = $2,705,000 (up 1%- from FY2013 budget)
FY2015 = $2,741,378 (up 1%+ from FY2014 budget)
FY2016 = $2,655,003 (down 3%+ from FY2015 budget)

Actual Listener Support reported in the following year’s budget (varies depending on what report one looks at)
FY2012 = $2,539,180 (as reported in FY2015 budget as audited amount)
FY2013 = $2,552,174 (as reported in FY2016 budget; note: up 1%+ from FY2012 budget)
FY2014 = $2,529,196 (as reported in FY2016 budget; down 1%- from FY2013 budget)
FY2015 = $2,607,297 (up 1%+ from FY2014 budget)

Total Budgeted Revenue
FY2013 = $3,652,756

FY2014 = $3,461,764 (down 5%+ from FY2013 budget)
FY2015 = $3,486,708 (up .5%+ from FY2014 budget)
FY2016 = $3,337,510 (down 4%+ from FY2015 budget)

Actual Total Revenue (varies depending on what report one looks at)
FY2013 = $3,652,756
FY2014 = $3,461,764 (down 1%- from FY2013 budget)
FY2015 = $3,486,708 (up 1%+ from FY2014 budget)
FY2016 = $3,337,510 (down 1%- from FY2015 budget)

Total Budgeted Operating Expenses
FY2013 = $3,060,229 (Note: FY2013 Audit indicated $2,811,334, which is $3,295,986 minus $484,652 for Central Services)

FY2014 = $2,929,063 (down 4%+ from FY2013 budget)
FY2015 = $3,486,708 (up 19%+ from FY2014 budget)
FY2016 = $2,862,049 (down 17%+ from FY2015 budget)

Total Budgeted Expenses
FY2013 = $3,582,922 (Note: FY2013 Audit lists $3,295,986)

FY2014 = $3,457,903 (down 4%- from FY2013 budget)
FY2015 = $3,409,836 (down 1%+ from FY2014 budget)
FY2016 = $3,333,505 (down 2%+ from FY2015 budget)

Net Income
FY2013 = $69,834 (based on 8/3/12 email attachment from KPFA LSB Treasurer Whipperman)

FY2014 = $3,861
FY2015 = $76,872
FY2016 = $4,005

Surplus (Deficit)
FY2013 = $69,834 (based on 8/3/12 email attachment from KPFA LSB Treasurer Whipperman)

FY2014 = $ 3,861
FY2015 = $50,496
FY2016 = $ 4,005

Some additional notes by Kobren:income

Net Income and Surplus (Deficit), otherwise know as Reserves, budget numbers have fluctuated, with FY2016 being the worst yet regarding having reserves.

Also note that the KPFA LSB is the only LSB that has no Finance Committee which means that the KPFA Business Manager (with input by the KPFA GM) with input from the KPFA LSB Treasurer (who gets perfunctory input from the LSB) has total control of the budget items that are provided to the LSB which is empowered by the bylaws to approve the budget. The other four stations have Finance Committees that allow input from committee members (LSB members, staff and the public) into the budget process and the final draft budget that is presented to the LSB for approval.

But also when it comes to KPFA, the LSB is only provided the version to be approved either in the middle of the night the night before the LSB meeting or at the LSB meeting itself, and never with formulas, providing little if no time for LSB members to independently and responsibly review what they are expected to vote on. What happens in the end is that the LSB gets snowed under with multiple types of related documents distributed during the meeting by the Business Manager who proceeds to explain them, with little if no opportunity for LSB members to thoroughly review and critique the documents.

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FY2015 KPFA BUDGET APPROVAL BY PNB WITH FINANCIAL CRISIS MANAGEMENT PROVISOS AND AN AMENDMENT

FY2015 KPFA budget with Financial Crisis Management provisos and as amended (Approved PNB:1/8/15)

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FY2015 KPFA – Financial Crisis Management provisos (Approved NFC: 1/5/15; Approved PNB: 1/8/15)

For the next six months, KPFA Management shall require approval from either Pacifica’s CFO or interim Executive Director prior to making any disbursement or incurring any expense greater than $1,000 for other than for rent, utilities, payroll, and other regular, recurring expenses.

The PNB directs the interim Executive Director to direct Management at KPFA to prepare within 30 days a plan for reducing expenses by at at least $250,000 per year in order to bring KPFA’s operating deficit under control.” (Passed without objection)

FY2015 KPFA budget amendment (Approved PNB: 1/8/15)

Before any union and line staff reduction in force occurs, a formula for concurrent management cuts must be approved by the PNB

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KPFA GENERAL MANAGERS STATE OF THE STATION REPORT

Dated: January 29, 2015

Excerpts:

“The PNB Resolution:

The PNB has requested that the KPFA management create a plan to make $250 thousand dollars in cuts, which would include a formula for reduction in management salaries”. . .

“The management team has met with the union and proposed a cut to our benefits package, with a change in co-pay from $10 to $20. That would be a yearly savings of $42 thousand dollars a year. Since this would alter the contract, the union must have a secret ballot vote on the proposal.”

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TWO LARGE BEQUESTS IN THE PIPELINE

Save East 12th St Rally. Photo by Brooke Anderson.

Save East 12th St Rally. Photo by Brooke Anderson.

Kobren notes the following:

There apparently had been leaks from within KPFA and/or the national office regarding the two large bequests totaling $958,000 that had been in the pipeline, one since to 2012 and the other since 2014.

Once both bequests were probated, the checks were deposited in KPFA’s bank account in March 2015.

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APRIL AND MAY 2015 KPFA GENERAL MANAGERS REPORT

Kobren notes the following:

In KPFA GM McCoy’s April and May 2015 General Manager’s Report (also sent to the PNB for the June in-person meeting) he spelled out plans for spending the two bequests, as follows:

Of the total $958,000 (see chart below for reference),

$149,720 had already been spent on KPFA (96,400+38,070+9,000+6,250) — see column 1,

and an additional $9,000 was “committed” to be spent on KPFA — see column 2,

which comes to a total of $158,720 allocated.

Then there is a total of $233,396 that went towards KPFA’s Central Services ($198,979 to PNO/$34,417 to PRA) — see column 1,

which comes to a total of $392,116 allocated.

And then you have $118,976 that “KPFA” loaned to WBAI and KPFT (100,000+18,976) — see column 1 and column 2,

which comes to a total of $511,092 allocated.

Which leaves a balance of $446,908 from the total $958,000.

This was back in June.

But $350,000 had also been “reserved” for KPFA salaries — see column 1. Is that still in reserve or has that been spent?

If spent, that would leave a balance of $96,908 of the total $958,000.

There might have been more expenditures on that balance since June as well.

Note that part of the two bequests was being applied as “reserves” (at least to paid staff salaries thus the decision to forego the 2015 Spring fund drive), however it is not clear if the two-month salary reserves have already been exhausted, i.e., are there still any reserves? But since KPFA left itself dependent on the two bequests, it is not known what the financial situation within KPFA currently is or will be once the October 29, 2015 motion passed by the PNB is executed.

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APRIL/MAY 2015 KPFA GM REPORT EXCERPTS

Quincy Chart

11-3-15

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