[Wpfw-lsb] THE QUESTION OF INTENT AND THE AUDIT VOTE

[DcProud at aol.com]

Greetings,

    As Chair of the National Finance Committee (NFC), and as someone who 
voted "No" on the main motion to conduct an audit of inter-station transfers 
during the period from 01-09/2002, I wanted to address my concerns about this 
matter which has, for whatever reason, been swirling to a climax in recent weeks, 
dwarfing much of the fiscal progress Pacifica has made.

    As we near the historic passage of the proposed FY '05 budget (and 
remember the budget we are currently using was NEVER passed), local station boards 
in all five listening areas are meeting, adjusting, and studying the fiscal 
blueprint for Pacifica's immediate financial future.  By the end of the month, 
all FIVE station LSBs will have completed this vital process.  KPFT has already 
approved their budget.

    Financial reporting throughout the network has never been more explicit, 
or more transparent.  Monthly financial statements, reporting both actual and 
budgeted income and expenses, are being released, reviewed, and posted on our 
website for every station and national unit.  Additional requests from the NFC 
for a breakdown of all governance costs (how much is this democracy costing?) 
have been provided.  All legal billings (how much did the mistakes of the 
past cost us in legal bills?) have been completely extracted and accounted for 
with the exception of two firms from 2002 which are being tracked now to 
complete the record.  A solid debt-retirement plan should see all past settlements 
finally off the books and off our backs by the end of the '05 fiscal year.  

    We are in the midst of our second cycle of elections to our local station 
boards and are coping with the unanticipated expenses (almost $200,000) 
surrounding our new democracy.  The elected Pacifica National Board is meeting 
regularly, as are its standing committees.  With the exception of a few executive 
sessions, all meetings are webcast and archived for all to hear.  Local 
station boards are either in the midst of searching for GM and/or PD candidates, or 
are evaluating the performances of those in place.  A national committee drawn 
from all five stations has begun the evaluation process for the Executive 
Director, something which has never been done before, to be followed by an 
evaluation of the CFO. The Foundation is in the midst of relaunching a National 
Programming unit and expanding its affiliate reach.  What an extraordinary 
operation we have become.

    We have much to celebrate--and yet charges of moral bankruptcy and 
"Cheneyism" continue to obscure this record.  To what end?  In this latest flare-up, 
the core question is NOT how much each station paid to dig the Foundation out 
of the quicksand of 2002, but rather what to do about it now?  We voted on 
TWO motions yesterday.  

    The first called for an audit of this designated period for all station 
transfers (despite the additional expense) with the designated end result being 
a letter of acknowledgment to any stations which shouldered a 
disproportionate fiscal burden during that critical time.  In particular, concerns have been 
raised that KPFA, and possibly KPFK, paid more than their fair share (a 
formula for debt repayment apparently set goals of 25% for KPFA, KPFK, and WBAI, and 
12.5% for KPFT and WPFW).  Additional concerns were raised that some funds 
directed to the National Office to stave off bankruptcy and the associated 
turbulences from that period might have been considered "loans" to be repaid at a 
later date.  Since their are no national funds for any such repayment, the 
letter of acknowledgment (which one key member stated, at one point, would be 
sufficient) following the audit was offered as remedy.  I voted for this motion, 
but it failed.

    The second motion also called for an audit, but refused to address the 
question of remedy.  Previously, ideas have been raised about reducing the 
central services fee for some stations and increasing it for others in order to 
"right the wrong."  Given the still tenuous fiscal position of most of our 
stations, coupled with the PNB requirement that each station hold a cash reserve of 
one month operating income, the notion of "taxing" some stations in order to 
repay others did not seem workable to me.  But that is not the primary reason I 
voted against this motion.  I did so because, at its core, a bad precedent 
would be created.

    Let me explain:  to me, Pacifica is like five fingers on one hand 
struggling to become a fist, one fist attacking reactionary forces in this country 
and around the world.  All of our stations are owned by the Foundation.  We are, 
in essence, a family bound to one another.  During the hard times of the 
past, we have leaned on one another for moral and financial support.  Not just in 
2002, but well before.  Whether it was a transmitter problem here, or a bad 
fund drive, or an unexpected bump in the road, or a new station--we have rallied 
together, and that is why we have survived.  Who knows which of us will need 
the support of the others in the future?

    Now, like a family gathering to celebrate the end of a dark day, we sit 
under the glow of a deed well-done, and, rather than sip wine together, we turn 
to each other and ask, "OK, who had the steak?"  Anyone who has ever been to 
a gathering where bickering over the check ended the meal knows how it ruins 
the occasion.  None of us can undue what happened before, but all of us have 
played a part in this wonderful reconstruction.  Yes, we need to toast--to 
acknowledge--those who had more to give.  We need to thank them and their donors 
for coming through in the pinch.  But all the stations contributed.  Everyone 
has bruises still trying to heal.  Everyone suffered and gave what they could.  
Our strength today is the byproduct of that giving.  We need to know how much 
this whole episode has costs us (the historic record demands it), but we 
should not, in my opinion, seek redress for some to the detriment of others.

    I think it would be a mistake to hold up approval of the proposed '05 
budget on these grounds.  I believe we need to be vigilant in the future to 
ensure that Pacifica grows even stronger and that nothing like 2002 ever happens 
again.  We need to remember we are five fingers on one hand trying to make a 
lasting fist. 

    Mark Roberts, Chair
    National Finance Committee

    P.S.  Article Eight, Section 3 of the new by-laws clearly states that the 
Chief Financial Officer (CFO) shall be a full member of the National Finance 
Committee.
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