Minutes for the regular National Finance Committee meeting April 10, 2018.

Meeting convened at 8:46 PM (ET) a quorum being present, the Chair and
Secretary being present.
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Attending: Ken Aaron, Chris Cory, Joseph Davis (Chair), William Heerwagen,
Tony Leon, P.K. McCary, R. Paul Martin (Secretary), Mansoor Sabbagh.
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Agenda:

Roll Call
Agenda approval (10 minutes)
Minutes approval (10 minutes)
FY19 budget timeline (15 minutes)
CFO report to NFC (5 minutes)
Progress reports on station FY19 budget process
KPFT (10 minutes)
KPFA (10 minutes)
KPFK (10 minutes)
WBAI (10 minutes)
WPFW (10 minutes)
National Office (10 minutes)
Discussion of Pacifica Loans/ESRT Settlement (20 minutes)
Schedule next NFC meeting (10 minutes)
Adjourn no later than 10:30 PM (ET)

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Motion: (Mansoor Sabbagh) "To approve the agenda." (Passed without objection as
amended)

Amendment: (Ken Aaron) "To add before 'reports on station FY19 budget process',
'CFO report to NFC. (5 minutes)'" (Passed without objection)

The committee discussed the amendment.

Amendment: (R. Paul Martin) "To add time limits to each agenda item. (Passed
without objection)

Minutes approval 8:57 PM (ET)

Motion: (R. Paul Martin) "To approve the minutes of the February 13, 2018,
meeting." (Passed without objection)

Motion: (R. Paul Martin) "To approve the minutes of the February 27, 2018,
meeting." (Passed without objection)
Motion: (R. Paul Martin) "To approve the minutes of the March 13, 2018,
meeting." (Passed without objection)

FY19 budget timeline 8:59 PM (ET)

The committee discussed the FY19 budget timeline, based on the FY17 budget
timeline.

Motion: (Mansoor Sabbagh) "To move the dates on the FY17 budget timeline back
by two weeks and change all year dates to reflect the FY19 budget times."

The Committee discussed the motion.

Amendment: (William Heerwagen) "To substitute 'make the dates,' for, 'move the
dates' and to substitute, 'two weeks earlier' for 'back by two weeks.'" (Passed
without objection)

Motion as amended: "To make the dates on the FY17 budget timeline two weeks
earlier and change all year dates to reflect the FY19 budget times." (Passed
without objection)

CFO report to NFC 9:29 PM (ET)

The Chair reported that he had sent the CFO messages asking for some
information. The CFO replied that he was very busy, and he never sent the Chair
the information on any budget issues.

Motion: (Ken Aaron) "The NFC asks that if at any time the CFO cannot interface
with the NFC regarding preparation of budgets that the Executive Director do
so."

The Committee discussed the motion.

Amendment: (Ken Aaron) "To add, 'or any other financial issues that must be
addressed in a timely fashion' after 'budgets.'" (Passed 5 for, 2 against, 1
abstention)

The committee discussed the amendment.

Motion as amended: "The NFC asks that if at any time the CFO cannot interface
with the NFC regarding preparation of budgets, or any other financial issues
that must be addressed in a timely fashion, that the Executive Director do so."
(Passed without objection)

Progress reports on station FY19 budget process 9:46 PM (ET)

KPFT - (Reported earlier in the meeting, 9:04 PM (ET), but moved to this
section in the minutes for continuity.) The KPFT Treasurer reported that they
have had three meetings regarding the FY19 budget. She reported that there are
difficulties with scheduling meetings with Staff and Management. They were not
sure that they had the latest numbers, so they have scheduled meetings to get
the latest budget numbers. The station is short staffed at this time and things
are going slowly. KPFT is within budget for what they have to do, but they are
out of budget because more people are needed to do the work. They have
scheduled another meeting on April 26, to try and get up to date on budget
numbers and start approving the numbers in the budget based on income
statements as well as budget projections. The KPFT Treasurer said that all of
the stations should commit to getting out of the current financial disaster and
build toward the future so we can think about security and growth.

KPFK - 9:47 PM (ET) The KPFK Treasurer reported that they have sent to the NFC
Chair the most recent version of their FY18 draft budget which is validated up
through September. He said that they're ahead of budget with higher revenue
than budgeted and lower expenses than budgeted. He said that they haven't done
any work on the KPFK FY19 draft budget, yet. He said that they had analyzed
KPFK's February on-air fund raiser which came in near what was expected.

KPFA - 9:49 PM (ET) The KPFA Director had no report.

WPFW - 9:49 PM (ET) The WPFW Director told the committee that the WPFW
Treasurer had sent a report to the committee about the WPFW FY18 budget. He
said that they had not gotten the financial statements from the National Office
and had no Business Manager; they are tracking their performance to budget as
best they can. He said that they are ahead in revenue projections and on pace
for total expenses as best they can, they are current with all payables except
for Central Services, they have made two Central Services payments toward their
balance in March. He said that to his knowledge WPFW has not begun the process
for the FY19 budget.

WBAI - 9:51 PM (ET) The WBAI Treasurer reported that the CFO has declared that
the WBAI FY18 draft budget is being produced by the National Office. The WBAI
local Finance Committee had met with the WBAI General Manager months ago and he
had offered three different versions of a draft FY18 budget. The local Finance
Committee considered one version that provided for a daily tally of about
$9.500 a day in on-air fund raisers as the most realistic, and then the General
Manager did not show up for a number of local Finance Committee meetings. The
draft FY18 budget proposal with the $9,500 a day tally was never given to the
local Finance Committee in an electronic form. The CFO has sent out a cash flow
projection for FY18 for WBAI, we have not gotten an actual draft FY18 budget
proposal from the CFO. For FY18 WBAI is behind on revenue and the latest Income
Statement from the CFO shows WBAI in the red. WBAI may start doing better in
the coming months because the Empire State Building (ESB) Tower Rent will not
be an expense soon, and the new $12,000 a month Tower Rent will be about 80%
lower than it had been, but the WBAI Treasurer said that the $12,000 rent had
not been paid to the ESB in a timely way when the WBAI General Manager had
considered it to be part of an agreement with the ESB.

Discussion of Pacifica Loans / ESRT Settlement 9:55 PM (ET)

The Chair said that he had consulted with the WBAI General Manager and the
General Manager was very pleased with the settlement of the Empire State Realty
Trust (ESRT) lawsuit. The Chair said that it was very important that the money
owed the ESRT has been shifted to a loan. He said that the PNB is working on
strategic planning, to pay off the loan. He said that Pacifica has to seriously
look at our finances and stations must perform a lot better than in past.

The committee discussed the settlement and the need to pay off the loans. Off-
air fund raising was discussed and the need for change throughout Pacifica was
discussed.

Schedule next NFC meeting 10:23 PM (ET)

Motion: (R. Paul Martin) "To meet on April 24, 2018, at 8:30 PM (ET)." (passed
4 for, 2 against, 2 abstentions)

The Committee discussed the motion.

Motion: (Mansoor Sabbagh) "To adjourn." (Passed without objection)

Adjourned 10:33 PM (ET)

Submitted by R. Paul Martin, Secretary.