2010 FY

The 2010 fiscal year runs from Oct 1st 2009 to Sept 30th 2010. 

* Please note that documents posted here may include drafts and other management materials that are not intended to represent a legal or final record of the corporation.

Finance Committee Minutes - October 20, 2009

Finance<?xml:namespace prefix = o />

October 20, 2009

 

Attending: Paula, Debbie, Arthur, Rolf, Mel, Steve, Bob,

Absent: Genevieve, Anthony

Visiting: Robert Barncord, Nia Lewis

 

 

1)      Check in

2)      Investment/Reinvestment: 

a)      MOTION: move $25,000 from KeyBank to qualify for 1.95% interest at Bank of the Cascades  money market account.  APPROVED by general acclaim. 

b)      Debbie will transfer funds.

c)      Key is only giving .98%   Advantis 1.8% 

3)      GiveGuide: Finance doesn’t really have to do anything.  Andrew is working to promote it and involve other groups in the station to promote it.  We got $14,000 last year, and Andrew hopes for $20,000 this year.  It’s not in the budget, but it can help us reach our budgeted membership goals.  It appears as Unsolicited membership revenue.  Andrew put together our application to Willamette Week.  Paula  will confirm that Andrew is doing on-air promotions.

4)      FY10 Auxiliary budget

a)      Arthur presented auxiliary budget draft from staff.

b)      Discussion of live remote equipment.  We have $24,000 in capital campaign money that can be spent on a limited range of hardware.  This is reflected on the budget.

c)       MOTION: Finance recommends auxiliary budget to board.  APPROVED by general claim.

5)      Year-end financials

a)      Presented by Debbie.

b)      Debbie will add a line to the chart of accounts for Winter Drive for FY10 and FY09.

c)      Arthur  will forward Project Censored KBOO fundraiser e-mail to Finance Committee.

d)      $55,000 cash deficit for last year.

e)      Debbie will post financials and minutes to web.

f)        Discussion of steps for making strategic changes at KBOO by Arthur and revisiting staff pay (increases) by Paula.  Discussion of brining Sun in for Development ideas.  Arthur will ask Sun to come to Finance with work plan and other ideas.

6)      Pacifica Financial Research Project: Mel has a new project to look at Pacifica, what works and doesn’t work for them.  Mel will recruit Finance and Development volunteers.

7)      Finance Committee Chair: Paula is current chair and board agenda will include making Paula a volunteer liason from Finance to Board.

8)      Future Meeting: Pay Structure, Alternative Wealth

Finance Committee Minutes - November 17, 2009

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Finance

November 17, 2009

 

Attending: Paula, Arthur, Rolf, Mel, Bob, Anthony, Nia

Absent: Debbie (sick), Steve (sick), Erin (sick), Genevieve,

Visiting: Sean Ongley, Sun Lee

 

 

1)      Check in.

2)      Strategic Planning.  Paula  will contact Anthony regarding coming in next month to present on strategic planning.

3)      Development update:  David Barsamian event netted $3,700.  Amy Goodman expenses will be about $1,000 and Sun has already raised more than that.  Sun has raised $5,600 in FY10.   Sun is working on the raffle.  John Nichols (The Nation) and Bob McChesney (media issues) will be doing a major donor event.  Sun is going to try The Portland Trailblazers program where we get $5 per ticket sold and the organization sets up in the concourse.  They require us to purchase $200 of tickets.  Sun is planning on Square Dance jan 30th, feb 5th or 6th.  Sun is doing a major donor training program with Jim Lewis.  Dark Horse wants to do something in April, possibly movie night at the Hollywood.  Maybe kid-friendly in afternoon and adult in evening.  They’re also discussing donated artwork to sell on e-bay.  Mambo lounge on Fridays is a monthly music jam.  Sun’s working on $1 per ticket.  Sun will discuss a monthly event idea with microbreweries.  Sun will talk to Marc about making sure all the Finance Committee members are on the e-mail list.  Bob asked if there was a major artist in town who might support KBOO.  Sun is talking with several people. 

4)      Aug/Sep/Oct minutes approved by acclaim.

5)      October Financials.  Arthur and Debbie will touch base with Justin about additional underwriting slots for bluegrass and how that’s working.  We noted that the underwriting price increase was effective since underwriting increased but advertising (no price increase) went down.  Membership is lower than last year.  Andrew hopes to make this up with GiveGuide and the letter that went out to members post-drive.  More on that next month.  Salaries increase is due primarily to moving Underwriting & Advertising commission moving from the contra income line—Debbie will footnote this in the future—and also from increasing finance salaries.  Finance is offset by decreases in professional services bookkeeping.

6)      Historical Analysis of expenses.  Debbie will prepare a report on what has been increasing with the expenses. Will include salaries and salaries that have been moved from auxiliary.

7)      TABLE  Membership Analysis.

8)      Alternative Currency:  Presented by Mel.  Can be like a barter system but it can also be an alternative method of exchange beyond barter systems.

9)      Common Good Bank.  Presented by Sean Ongley.  If this bank opens, Sean would like KBOO to accept the cards, promote to listeners and be a depositor. 

a)      How does KBOO benefit?  i. When we ran their card for people to donate to KBOO, we wouldn’t be charged a fee.  ii. The people with accounts decide where to send the profits.  They could decide to send money back to KBOO.  Don’t know how much.  All profits are sent to nonprofits.  iii. KBOO would also be compensated for signing people up. 

b)      The bank is seeking investors.  Sean gets a commission.  The minimum investment is $1,000 for shares in the company.  Investors get the average inflation rate.  Investors shouldn’t be interested in profit.  They’re supporting the bank more as a philanthropic venture.

c)      Commongoodbank.com  from Massachusetts.  There’s no local corporation; its Sean is acting as a contractor.  He’s aiming for 2011.

10)  Fiscal Sponsorships.  No.Fest: We are doing a fiscal cosponsorship again.  They aren’t doing Underwriting due to the KBOO admin fee plus underwriting commission.   Our nonprofit purpose stated to the IRS is radio broadcast.  We’ll either live broadcast or rebroadcast portions later.  However, the attorney said that if this was going to be a regular thing, we’d have to restate the purpose of our charitable activities.

11)  Finance Committee approvede request for $1,700 EAS unit and endorsed the AFP purchase as proposed by staff and passed by board.  AFP will include on-air material and website headlines.  News services will be $4,500 under budget.

12)  Next meeting is December 15th.  Mel will bring materials.

Finance Committee Minutes - December 15, 2009

 

 

Finance<?xml:namespace prefix = o />

December 15, 2009

 

Attending: Erin, Arthur, Bob, Paula, Debbie, Nia, Mel, Anthony

Absent: Steve, Rolf

Visiting: Alicia Olsen

 

 

1)      Check in.

2)      Minutes:  November minutes approved by acclaim with one change from Mel.

3)      Action Items:  October/November action items reviewed.  See “pending” below.

4)      Alternative Banking:  Discussion of Sean’s alternative banking presentation.  They don’t have a bank yet, so we’re not taking any organization at this time.

5)      Strategic Planning: 

a)      Anthony is on the board at Willamette Valley Development Officers’ Association (WVDO), a membership organization.  It’s been all volunteer, but it tripled in size.  At the end of 2008, they sent out an RFP for strategic planning.  They received about 15 responses.  They picked the Canoe Group for their consultants.  This was a brand new firm that no one on their steering committee was familiar with them.  They were the only group that really offered answers to the questions and also didn’t fit WVDO into their pre-made model.  Canoe got to know the organization before making the plan.  Marta and Michael are from nonprofit arts organizations and had a lot of consulting experience.  It was a ten-month process.  Everything was on the table, even the organization’s name.  The board was very involved; it’s primarily a board-run organization.  They surveyed internal and external stakeholders: members, similar organizations, non-member organizations to find out why they weren’t members.  It was data driven, but they also walked the organization through the process so that they could make their own strategic plan.  They worked through the emotional components of change, navigated heated conversations.  They’ve helped with implementation  They changed their board structure to make it less siloed.  They were able to understand how they benefit members, how to communicate that, what program changes to make, who else is doing this work and what are our gaps.  They work with large groups with lots of differing opinions and they do market research.  We had budgeted $100,000 for the grant application for planning and marketing.  WVDO spent about $50,000.  Anthony recommended doing decision making and organizational structure first.   Arthur discussed the need for understanding our listeners and marketing as soon as we can, but we also need clarity on staff and board roles and participation so we don’t spend the money without results.  It took about 75% of the WVDO’s board’s time over a year.  There was a concern of our organizational capacity and willingness to change but also concern about our budget deficits.  Anthony recommends having them do an initial assessment and have them propose a timeline and steps.  Discussion of not being ready for whole process now, but needing to do foundational work.  Discussion of open bidding process.  Anthony had recommended Canoe because he’s worked with other consultants.  Discussed the need for commitment, deadlines and followthrough.  We applied for  Meyer grant to do a project like this, but we didn’t d the grant.  This was board approved.  However, we still have items like marketing and strategic planning that need to be done.  Finance recommends bringing Canoe group in to speak with a group of board and staff.  Erin  will bring to December board meeting.  Arthur will let staff know Finance is working on it.  Anthony  will bring more documentation of the WVDO RFP process.

6)      November Financials:  Review of good news/bad news and financial statements.    Debbie will see how the GSB charges for the EEO report this year compared to last year.  Debbie and Anthony will revisit our banking costs.  Underwriting & Advertising commission were moved off of the contra-income line and into salaries because we weren’t getting an accurate picture of costs.  The CPA’s recommended to move it if we weren’t getting good info because it will now make reconciliations.  Debbie will do an mid-year and end-of-year analysis and presentation for Underwriting, Membership and Development.  Salaries is running under due to commissions being included and being under budget.  Premiums looks high, but it’s actually on track due to the large t-shirt purchase.  The training expense was Sun’s development training that starts in January.  We’ll see $4,300 from OCF in December.  Anthony asked if we’re getting a higher return on endowment versus bank accounts; in that case we may want to cancel distributions and take money out of the bank accounts instead; Debbie will research.  Debbie   will check with John to see if we’ve tracked all the server expenses.  Arthur is meeting with Radio Korea tomorrow.   

7)      Credit card security:  PCI-DSS compliance.  We installed the scanning program and filled out the profile, but there is a long questionnaire that we haven’t completed, so we got a notice of noncompliance.  We have to write a security policy.  Debbie and Arthur will develop a security policy and Debbie will complete the questionnaire with input from Zale.  Anthony said they’re looking to see if the data is protected, what happens to it when its finished, who has access at each step, how long do we keep data.  Anthony said it’s critical to get this done ASAP because having a problem will have serious consequences.  Debbie will talk to them on the phone again to find out the timeline.  She took the webinar a month ago.

8)      TABLE Historical expenses: Tabled to give Debbie more time to prep.

9)      TABLE Membership Analysis:  Arthur and Debbie will get from Andrew in January.

10)  Membership Dues policy:  Presented background and propose policy.  Discussion on whether $20 is too low, perception of low price diminishing value.  Arthur will ask Andrew.  How many members and new members do we get at $20, and do they upgrade over time? Would we lose new members if we increased?  Finance would like board to examine basic and low income numbers as being potentially too low after 20 years.  Finance Committee supports the policy with feedback to the board that the rates may be too low.  Passed by consensus.

11)  Policy 15-ownership and distribution:  Presented background and propose policy.  Finance committee supports policy by consensus.

12)  RACC Grant: Former volunteer Ryan White approached us about doing an opportunity grant with RACC.  This means that we wouldn’t be able to do an opportunity grant for two years, but after speaking with them, it appears highly unlikely that we would qualify during that period for an opportunity grant.  We can still do project grants.   Committee discussed that this is a good opportunity for publicity and developing relationship with RACC.  Also good for Youth Coordinator position.  More next month.

13)  Development committee: Request for development list of upcoming events.  Paula has been to two Development Committee meetings.  Development is doing a lot of activities.  Big 100 Art Sale, DJ benefit tomorrow night at the Report for $5 donation, Square Dance is Saturday, January 30th at Mt Tabor Theater.  Only cost is $100 for sound person, we may also offer square dance ticket premiums on the drive, Bob McChesney and John Nichols major-donor event on January 20th,  Blazer game April 12th—we get $5 per ticket that we sell.  We commit $200 to tickets.  If we sell 50 tickets, we can offer a special item like after-game free throws.  We also get a table near the front door.  Raffle application is being submitted.  Grand prize $2,500 vacation, second airfare to b&b in Mexico, and third prize is New Seasons gift cert--$25 tix.  A restaurant night is also being considered for a  benefit. 

14)  TABLE Alternative currency

15)  Next Finance meeting is January 19th . 

16)  Pending: Paula posting minutes and financials to web, Debbie will do historical analysis, Mel is working on a KPFA finance analysis.

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Finance Committee December 2009.doc26 KB

Finance Committee Minutes - January 19, 2010

Finance Meeting – January 19th, 2010   approved February 16th, 2010

 

 

Meeting starts 6:07pm

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Present:

Arthur Davis

Rolf Semprebon

Mel Reslor

Erin Brand

Nia Lewis

Paula Small

 

Absent:

Debbie Rabidue  (sick)

Anthony Petchel

Steve Weiland

 

Visiting:

Andrew Geller

Scott Forrester

 

 

Check in

 

Note: Scott Forrester asked to audio record the meeting. With no objection, he recorded the meeting in its entirety and offered copies of the recording to anyone interested.

 

Membership AnalysisAndrew presents

 

Fall Membership Drive report created 6 months after drive; down 22% from last year but after follow-up letter, only down 10 or 11,000.

 

Arbitron figures; Metro line is the count in the Tri-County area, Total is for all areas (Gorge, Valley, etc.), on average the metro area is 93% of total, other 7% is for the other areas. The average listenership is just under 49,000.

 

Drive Performance for Weekday Evening; old schedule vs. new schedule (took place in Fall of 2008), percent of total from all pledged dollars has not changed since the change (either up or down)

 

Scott brings up that we are emphasizing higher giving amounts, and may be reflected in the data

 

Arthur believes it is positive that it has stayed relatively flat, with changes and economy

 

Paula was concerned about the impact of adding the winter drive, but is encouraged by the data

 

Analysis of $20 donors;  on average about 1.5% of all donors and 1.5% of all money donated, about a 40% renewal rate after the first year with about 40% of those people increasing their donation to $40 or more, about 27% continue renewing after the 1st and 2nd year

 

Scott asks how many gift memberships there are; Andrew believes it is 1% or less

 

Review December Meeting Minutes

Paula asks to amend the section regarding the credit card security policy to be drafted. It should read that Zale’s input be sought

 

Regarding development committee report and the squaredance event, that we will also consider making tickets to the event a “thank you gift”

 

In the same section, at the Blazer event, “we will get a table near one of the main entrances”

 

Possible restaurant night considered

 

Minutes approved

 

Update on December Action Items

 

Strategic Planning – Arthur brought it to board, still working on Ayala process, unless there is strong support and commitment from board it will be hard to pull off

 

No update on EEO GSB charges- table Debbie’s update

 

Debbie still working on credit card security item

 

Paula posting minutes and financials on web, minutes from August to November 2009 have been posted to the web

 

Mel doing Pacifica finance analysis; not an update at this time

 

Finance Department Update – tabled until next month

 

December Financial Statements Review – Arthur presents

 

Good news is bottom line; a couple of thousand ahead of budget for the quarter, membership has been over budget ($12,000), GiveGuide netted about $10,000

 

To answer Scott’s question, the Listener’s Guide will go out to by request for February and March, probably move to quarterly after that

 

Newswire service is currently $800 under budget

 

Professional services is still over budget but has slowed

 

Bad News; bankcard fees and service charges are up $1,500 from last year

 

Underwriting and advertising revenue was $5,800 under budget

 

Events and Development income is $5,400 under budget. However, it is also up $12,000 from last year YTD, so we are seeing a positive trend

 

Paula noted that there was not a full-time Development position to compare for trends. Current progress in Development department very encouraging.

 

Bottom Line revenues are exactly on budget. Expenses are slightly under budget.

 

 

Further discussion on year to date line items, balance sheet, liabilities and capital, fund balance, auxiliary, grant ledger, accounts receivable and accounts payable, job ledger

 

RACC Grant Discussion #2 – Arthur presents

 

Applied for opportunity grant because KBOO probably wouldn’t qualify for one under other scenarios.

 

The grant is for an oral history project working with Ryan White, Erin Yanke and Roosevelt High School.

 

Sean Ongley Proposal – table until February

 

A Look at the FDIC- Mel presents

 

FDIC insures approx. $5 trillion in bank accounts. ($4.8 trillion in 2009)
They had $30 billion at beg. of 2009, dropped to under $10 billion at end of year. FDIC funds reduced by $20 billion. They have $1 for every $500 insured.

Add'l note: FDIC will have update on their fund bal. at end of Feb.  Last time FDIC borrowed from the treasury was around 1991, during the S&L scandal.

 

FDIC ensures a huge amount more than they have. What’s the chance there will be a serious run on banks?

 

Looked at NCUA, and what their status is, how do they compare to the FDIC

 

FDIC has a line of credit from US Treasury for $100 billion

 



Commitments

 

 

Debbie - add yields to balance sheet

-         present development income summary (car donations, specific events, etc.)

-         check with John about server expenses

-         on ledger report, footnote that the quality grant has an additional $4,000

 

Scott has offered assistance with grant writing for tape archive project, Arthur will notify Bruce Silverman of his interest

 

Sean Ongley will be asked to attend February meeting to discuss his proposal (Paula)

 

 

 

Meeting adjourned at 8:05pm

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Minutes - Jan 2010.doc34.5 KB

Finance Committee Minutes - April 20, 2010

 

Finance Committee – April 20th, 2010
(Approved May 18th, 2010)
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
 
In Attendence
Erin Brand
Paula Small
Debbie Rabidue
Sun Lee
Mel Reslor
Nia Lewis - late
 
Excused Absence
Anthony Petchel
Rolf Semprobon
 
Meeting started at 6:15pm
 
Check-in/intro
 
Review March Meeting Minutes
Approved
 
OCF Endowment Update (Anthony)
Tabled due to the Anthony’s absence, handout was given at March meeting.
 
Update on Draft Credit Card Security Policy (Debbie)
Policy has gone through staff, Debbie will email draft to the finance committee. It does not need to be approved by finance before going to the Board, it is less about finance and more about station operations. Andrew and Zale helped Debbie draft and Anthony Petchel looked over language.
 
Underwriting Update (Debbie)
Debbie clarified that Underwriting is run through Accounts Receivable which means that revenue is recorded after a contract is signed and according to how the billing is set up, ie: a 12 month contract may be billed each month or it may bill one time for the year. Cash receipts are recorded through Accounts Receivable and do not effect the recorded income. Justin’s commissions are based on cash collected. We have had to write some underwriting off as uncollectable debt, but it is very minimal (maybe less than a half of a percent).
 
Internal Controls Update (Mel)
Linda Barkus came in today and worked with Mel to go through some of the procedures. Mel has been in his position for a few weeks and is working to develop a check list to ensure internal controls. Mel wants to make sure that the work he is doing would translate to whoever may have the position in the future. He hopes we won’t have to work too much with the accountant, as far as the expense goes, but there are a lot of details.
 
Debbie suggested to Linda and Mel that they develop a summary report to bring to staff, finance and board if necessary. She is not sure if this summary report will be done every month, they will figure out how often it is necessary.
 
Mid-Fiscal Year Budget Review (Debbie & Committee)
Debbie would like the YTD financials approved by Finance in May to go to the Board meeting that month.
 
On the balance sheet, one of the discussions is the KeyBank Money Market account. This account had $49,000 at the end of March, it is currently at $35,000. We may need to move cash from Bank of Cascades to KeyBank until pledge drive money comes in. This is something to bring up again at the May finance meeting.
 
Liabilities are low, we don’t have much debt. What shows up as liabilities are payables at the end of a month, these are usually paid in the next week.
 
We have burned through about $50,000 in cash so far this fiscal year. We will also focus on this item in May.
 
Membership department is $20,000 over budget, about $12,000 of that is WW GiveGuide. After the Spring drive we will have a fuller picture of membership revenue. Andrew anticipates a drop in listenership based on trends on the Arbitron (December 2009 was the last time we paid for Arbitron.) There’s a good chance membership will be at or over budget.  Andrew is doing less direct mail, and picking up revenue in other areas, such as unsolicited donations.
 
Underwriting requests usually pick up in the summer months because of summer events. Debbie predicts underwriting may not reach budgeted income.
 
Under expenses, salary is over budget by $2,000, we will be saving money with the closing of the manager position, but for now we had to pay severance and vacation. Over the next 6 months we will find it going under budget.
 
We are saving about $800 a month on what we budgeted for the newswire service. Debbie has not heard from Jenka if we need a satellite feed, we will probably save quite a bit on this line item by the end of the year. Utilities are under budget. Postage and printing is under budget, due to less direct mail in Membership. Pledge premiums are over budget at this point, due to Andrew pre-ordering t-shirts, etc. It will catch up to budget by the end of the year.
 
Our premium for liability insurance went up, we had a change in brokers that reviewed and audited our insurance. The broker is going to look at all of our insurance (D&O, broadcaster’s insurance, etc.). Debbie has a goal to have all of our insurance policies renew in October so that we will be able to budget better.
 
Bankcard fees and services charges have increased quite a bit. Mel is volunteering to gather bids to compare fees and services and will review with Debbie to see what our best option is.
 
Sun asks what ‘Dues’ line item means. Debbie explains that they are things like Sesac, BMI, and other licensing dues.
 
For the first six months, on a cash basis (not our endowment, or depreciation) we have a $37,000 deficit. We budgeted  a deficit of $70,000 for the year, mostly based on legal expenses.
 
Debbie and Sun worked on Development report, for the first six months the net development income is $8,300, for events the net is $6,200. Combined department income of $17,500, with expenses at $3,000, for a net of $14,500, we are double where we were at for FY2009, in the first six months of this year. Raffle still to come.
 
Auxiliary budget will be reviewed by staff in more depth. The server budget may have been over estimated, Debbie has been in contact with John about this.
 
The Forrester lawsuit is probably going to end up with about $40,000 in expenses. Debbie needs to get bills for the time of the summary judgment and trial preparation, she will have Chris contact Scott Pratt.
 
Debbie will email January and February financials and will do a write-up about it.
 
Debbie will get Andrew, Sun and Justin to give feedback on mid-year budget and projections for their departments. They may come up with some recommendations, for instance Dan and Justin working on advertising on the web, Board working more on development promotion to increase development/events income.
 
Debbie will work with Sun and Andrew to clarify printing and mailing costs for monthly flier and quarterly publication to make a more accurate budget projection for these line items.
 
The handout Debbie prepared projects an $18,000 deficit on the Operating Budget, with a projection of spending $49,000 off of Auxiliary that was budgeted at $70,000 (legal expenses will not be as high as predicted). We budgeted for a deficit of $79,000 and projecting a deficit of $66,000.
 
 
Between this meeting and May finance meeting the mid-year controllership will happen in the finance department. The CPA will provide a written report after the controllership is completed.
 
 
Meeting Ends at 8:50pm
 
May’s Meeting Date: Tuesday, May 18th at KBOO
 
 
 
 
Addendum Provided by Debbie Rabidue
 
February Finance Minutes: Update on Debbie commitments
 
Development Department Update(Sun)    DONE
 
Sun asked for clarification about the expenses regarding the Amy Goodman event last November. Debbie will look into this discrepancy, line 35 of development spreadsheet. Debbie also needs to reissue the development income report and send to finance.
 
Update on January Action Items
 
Debbie has not checked with John about server expenses….but will! DONE (The expense was/is correct. John says we will see a consulting bill when the server is done)
Debbie will footnote regarding $4,000 on Pittman Grant.   DONE
Debbie will present the historical income and expense analysis report for the March meeting    reschedule to May meeting
 
Finance Department Update(Debbie)
 
Debbie will talk with Bruce Silverman about getting a locked box for bank statements to be put in. DONE in February
 
January Financial Statements Review(Debbie)
Debbie will look at monthly trends in underwriting over the last year. This will included as part of the historical income/expense report in May
 
 
March Finance Minutes: Update on Debbie commitments
( I had no commitments, just the clarification that was part of the April minutes regarding Underwriting revenue)
 
“There can be a wide monthly variability based on getting timely response from underwriters. Justin’s unofficial goal is $1,000 a week. There have been issues with collection in the past, Justin’s numbers are based on contracts that are signed, not accounts receivable.
 
Jim asked what the outstanding number is for accounts receivable, Justin estimates it’s about a few thousand. Justin feels that if all accounts were paid and online advertising were up and running that we would be ahead of budget.”
 
(Clarified that collecting Accounts Receivable does not effect the recorded income) Therefore, collecting past due accounts, would not put Underwriting on budget.

Finance Committee Minutes - August 17, 2010

 

Finance Committee Meeting Minutes – August 17th, 2010
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
 
In Attendence
Mel Reslor
Sun Lee and Azure
Bob Crow
Rolk Semprebon
Erin Brand
Paula Small
Debbie Rabidue
Louis Sowa
Kurt Lauer
 
Meeting starts at 6:20pm
 
Check-in/intro
 
Review July Meeting Minutes
 Approved July minutes.
 
Update on Strategic Planning
The strategic planning work group had a conference call with PARC today. They were the group that the workgroup selected after receiving request for proposals. Their conference call today was regarding budget. PARC’s budget is below $20,000. This item will now go to the board.
 
June Financial Statements Review
Membership revenue is still slightly over budget in June, same as May. July will be interesting, Andrew did a direct mail in July and it seems to be successful.
 
Development income is behind the aggressive budget we set. $20,000 of the $33,000 we are behind in revenue is development under budget. Events are behind, as well. We will still come out netting higher than last year. Underwriting remains about $9,000 behind budget.  
 
Our total expenses are about $15,000 below budget. 
 
Insurance is over budget, D & O rate increased as did workmen’s comp. Engineering equipment purchases are up, we needed to update emergency remote notification from transmitter (approx. $6,000). Professional services are up, billed $4,800 on investigation into harassment claim. Bank card fees are over budget. Volunteer and development expenses are under budget.
 
We budgeted a deficit of $79,000 for FY10, at the end of June we are running a deficit of about $24,000. The actual deficit on YTD is $55,247, $24,000 is only for the month of June.
 
 
 
 
Additional Note - At the beginning of August, we moved $80,000 from BOTC money market account to our KeyBank money market to cover our operating expenses.
 
July Financial Statements Review 
Tabled until next finance meeting.
 
Updated FY 2011 Operating/Auxiliary Budget Recommendations to Board Discussion
Revenues:
Membership revenue – Andrew wants to budget $525,000, $25,000 less than FY10 budget. Staff has reached agreement on this figure.
 
Development revenue – Sun wants to have a $25,000 budget, staff agrees. This is a more realistic figure than the $50,000 from last year.
 
Underwriting – Justin feels a slow down and wants to drop his budget to $55,000 for FY11
 
Events and co-sponsorships – $20,000, $500 more than FY10. Book and Record sale is a drop from $8,000 FY10, to $6,000 FY11.
 
We are looking at a decrease of $63,000 in overall revenue from FY10($726,000) to FY11 ($662,000).
 
Side note: We need to overhaul our chart of accounts to simplify monthly reports. It would still be possible to pull up more detailed reports because of the coding in the accounting software.
 
Debbie will see what grants we received in ’06 and ’07 that made our revenues increase.
 
Debbie is going to check with Anthony Petchel to get his opinion on budgeting for bank interest.
 
Debbie will update the FY10 projected budget.
 
Sun will ask Andrew why he wants to decrease the EFT revenue from FY10 to FY11. Sun will go over each line item of membership revenue and report back to finance.
 
Expenses:
Salaries and Payroll Taxes - $42,000 for station manager position remains in place to provide a salary cushion. Erin Y. is working on an internal staff survey to gauge staffing levels.
 
Health Benefits – At a 15% increase from last year, once Debbie gets the rates from Kaiser whe will be able to adjust this accurately
 
Professional Services – Finance committee recommends increasing the legal fees line item to $10,000 (our deductible on D&O insurance)
 
Utilities – projected 5% increase to $29,400
 
Insurance – an increase due to D&O and industry percentage increase of 3-5%
 
Newswire Service – FY11 budget of $6,000 reflects that savings we have had in FY10.
 
Training – Nothing in the budget so far with no concrete proposals. John is interested in an HD2/HD3 training, about $1,500. Ani wants to look into some volunteer training for conflict resolution. If the staff goes to collective management structure, training would be needed. Staff wants to tie the training for collective management into the strategic planning proposal.
 
Bankcard fees and Bank Service Fees – The preliminary budget was based on our spending at KeyBank. This item would change if the finance recommendation of using SwipeNow is implemented. If we do nothing, it would stay at this figure. We would also save money on our bank service fees if we switch to BOTC.
 
Development Expenses – Sun may increase this line item from $5,000 to $6,500 to $7,000. He is looking at promotional items that would not be premiums, but more of an outreach opportunity, such as designing a t-shirt, hat, poster, etc. Right now the development expenses is budgeted at 20% of development revenue, this could increase to 25 0r 30%.  Sun is going to research how much something like this would cost.
 
FY2011 looking at a $71,000 deficit on the operating budget.
 
Debbie proposes a budget retreat between a mixture of board and staff. Erin will bring this to the board meeting and ask when a good date for board, staff and finance members can have a budget retreat in the next three weeks.
 
Bank Accounts and Debit/Credit Card Provider Comparison Update
 Merchant Cards- Mel checked references for a few of the providers. FFUSA and SwipeNow both have good references. Month to month and a multi-year agreement are options for SwipeNow.
 
Bob and Rolf both support the idea of starting with SwipeNow on a month to month, if we like it, we can sign a multi-year agreement and lock in certain rates.
 
Debbie says we would need to bring Roger Leigh in if we switch services so that the web services are coordinated. 
 
Erin asks if we sign up with one of these merchants, can we then do monthly deductions from credit cards? Debbie says no, the rate for a monthly deduction is regulated by Visa, MasterCard, American Express, not by these vendors.
 
Debbie wants two questions answered before signing up with a new card merchant.
1)      Integration with website software, is it something Roger could do?
2)      Look at the way they deposit into our bank account, does it get batched or does it trickle in? It’s hard to reconcile if it is split up.
 
Mel suggests the finance committee pick top three for merchants and upon further questioning we will make a decision. Finance committee votes for merchant options in this order:
#1 choice – SwipeNow
#2 choice – Bank of the Cascades (BOTC), Is there a month to month option, or only a 3-year agreement
#3 choice - KeyBank
 
Mel will set up an appointment with SwipeNow. Debbie and Mel will meet with them. Debbie will contact Roger Leigh and see what questions he would have for SwipeNow.
 
Sun notes that the next pledge drive starts October 1st so we need to have something in place by then.
 
Bank Checking Account – Our banking fees are more expensive because we process EFT’s, but we generate over $19,000 a month and it keeps growing.
 
Sun asks why we wouldn’t want to change to BOTC. Debbie says location is an issue, not as close as KeyBank, but they have a courier service that is free. They also have an electronic deposit option.
 
The other issue to look at further is that we have a $50,000 line of credit at KeyBank, which we wouldn’t have at a new bank. Debbie and Mel point out that $50,000 only covers 3 weeks of operating costs, so it may not be much of an issue. The banking industry is no longer doing business lines of credit. Rolf asks if the BOTC will overdraft sweep from checking to money market?
 
Finance committee discusses how it would be better to switch to a local bank. Debbie wants good customer service and ease of banking. Debbie would prefer all of our deposits go into one account, now they go into two.
 
Debbie estimates we could save up to $2,000 a year if we change banking and merchant services, as long as they work with KBOO.
 
Finance committee chooses the following options for bank checking account
#1 choice – BOTC
#2 choice KeyBank
 
Debbie will contact BOTC about an automatic sweep.
 
July Action Items/Commitments Update
 Debbie got an invoice from John about the server, but hasn’t opened the email yet.
 
Sun reports that staff has discussed budgeting for a manager as a “just in case”, though staff is not leaning towards having a manager, but using that money to increase other staff hours.
 
Paula reports that Albina Banks ACH fees were not competitive. They did have good customer service.
 
 
Further Update re: Pacifica Project
 
Paula is working with Pacifica to get more data from their last fiscal year. She has been talking to KPFA and learning about their drives and fundraising. Their staffing is changing and still have no station manager at four of their five stations.
 
Paula wants to create a spreadsheet for comparisons. She wanted more complete information on their staff salaries and budget. KPFA gets CPB funding of $30,000 a month.
 
Mel will provide numbers about KPFK for the minutes. KPFK is starting a one week drive today that has a goal of $250,000. Their June drive was a month long and had a goal of $900,000 and they made $700,000. Their fulfillment rate tops out at 80%, ours is around 90%.
 
KPFK has 33 staff, mostly full-time. Their annual budget is over $3million. Pacifica is commercial and underwriting free.
 
Meeting ends at 9:36pm
September Finance Meeting: Tuesday, September 21st

Finance Committee Minutes - February 16, 2010

 

Finance Meeting – February 16, 2010
(Approved March 16th, 2010)
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
 
In Attendence
Rolf Sembrobon
Erin Brand
Arthur Davis
Debbie Rabidue
Mel Reslor
Paula Small
Jenka Soderberg
Sun Lee
Bob Crow
Nia Lewis
 
Excused Absence
Anthony Petchel
 
Meeting begins 6:10
 
Check-In
 
Employee pay reduction proposal (Jenka)
For personal reasons, Jenka asks the finance committee to recommend reducing her salary to $28,500 a year.
 
Paula is concerned that Jenka would be working full-time and not getting full compensation.
 
Erin wants to make sure that Jenka retains her seniority with regards to the pay structure and ensure her eligibility for step increases at the time she is able to collect full compensation.
 
Paula recommends Jenka notify personnel committee about this request.
 
Arthur suggests granting a temporary reduction until Jenka gets back with further information.
 
Finance committee agrees to recommend granting a temporary pay reduction for Jenka. Consensus was reached.
 
Erin will draft motion to bring to the Board meeting on Monday, draft will be sent to finance and Jenka for feedback.
 
 
Discussion on KBOO Board News re: Station Manager Position (Arthur)
 
Arthur’s last day will be tomorrow. He has been layed-off and the position will not be filled. See attached statement from KBOO Board regarding the resolution on this issue.
 
Debbie feels this is a great loss for KBOO. Debbie has appreciated his mentorship.
 
FC Statement re: KBOO Board News re: Station Manager Position (Paula)
 
Paula would like to issue a statement from the Finance Committee clarifying the committee’s role in the resolution regarding Arthur’s lay-off and that the Finance Committee was not consulted on this matter.
 
Paula will include this statement along with the posting of the Board statement and Finance minutes.
 
Discussion re: Treasurer Responsibilities & Advisory Role of Finance Committee (Erin)
At the last Board meeting the Board approved a policy regarding board committee liaison roles and duties. Erin is going to try and get in the habit of better reporting between board and finance, including sending out an email after board meetings with information that is pertinent to finance committee. Erin will take meeting minutes, send draft minutes to committee members, update approved minutes and post minutes. Paula is able to post minutes on the website. Erin is open to additional suggestions about what committee members would like the treasurer/board liaison to be responsible for.
 
Development Department Update (Sun)
 
Sun asked for clarification about the expenses regarding the Amy Goodman event last November. Debbie will look into this discrepancy, line 35 of development spreadsheet. Debbie also needs to reissue the development income report and send to finance.
 
Sun explains how the budgeting was done for events income. The raffle application has been submitted. Blazers night is March 31st. Dine out for KBOO Night will be Wednesday, March 24th, participating restaurants for this month will be in the surrounding Burnside area. In the future Development would like to plan these restaurant nights in different neighborhoods each time.
 
Sun is training with Jim Lewis to develop different giving levels. For example, a $250 to $499 level, $500 to $999, etc. He will be working with volunteers to decide what kind of benefits each level of donation would receive; recognition and access are what to keep in mind when deciding incentives.
 
Jim Lewis is a national fundraising consultant that is based in Portland and has worked with many public and community radio stations. He was part of the NFCB station assessment a few years ago.
 
Arthur stated that the development income goals are very ambitious, Sun is doing a great job trying to meet these goals. Arthur also highlights the successful promotions that have gone into the development events.
 
Bob sought clarification on development income being divided between ‘events’ and ‘development income’. He also stated that events and programs in this first year can be built upon and anticipated in subsequent years, which will also indicate a successful development position.
 
Debbie is seeing positive movement in Development and says we should all be excited about it.
 
Review January Meeting Minutes
 
Paula and Mel will send Erin minor changes; upon update the minutes will be approved. Debbie was absent from the last meeting and abstained from approval.
 
Update on January Action Items
 
Paula checked with Sean Ongley about his proposal but it has changed and he will come back once his plans have been revised.
 
Arthur informed Bruce Silverman of Scott Forrester’s interest in helping with a grant writing project.
 
Debbie added yields to the data sheet.
 
Debbie has not checked with John about server expenses….but will!
 
Debbie will footnote regarding $4,000 on Pittman Grant.
 
Debbie will present the historical income and expense analysis report for the March meeting.
 
 
Strategic Planning Update (Arthur)
 
A group of staff and board met with members of the Canoe Group to discuss different options regarding strategic planning. They discussed the possibility of conducting a workshop to educate board and staff about what strategic planning is.
 
The Canoe group put together a proposal about next steps if we wanted to move forward with a workshop. Their proposal for a pre-planning piece and a training element comes to $2,800. They didn’t see KBOO ready for a start to finish project so it would be a step by step process. Canoe group suggests starting the components of this proposal in March.
 
Erin would support this proposal if there is a resounding yes from staff, board and committees. If not, this is not the best way to use our money.
 
Paula asked who would be picking a pre-planning group. Arthur responded that the board would pick members of this group and that the board is the driver of strategic planning, the staff would implement it.
 
Arthur recommends that we do this first step, there could be benefit in having common language and frame of reference for the future.
 
Bob recommends that a pre-planning group lean toward being composed with more staff than board. Bob says this preliminary workshop sounds good because of the cost of the initial proposal and that it can be a real motivator, without being fully committed.
 
Debbie says it is good that after an initial workshop we would have the option of exploring other consultants. Debbie supports the idea of planning for future stability.
 
Paula wants to know where the money would come from. Arthur says it would come from the fund balance and be a one-time expense on the auxiliary budget.
 
The Finance Committee recommends moving forward with accepting this proposal and spending an estimated $3,000 to do the preliminary planning and workshop with board and staff. This support will be communicated to board and staff.
 
Board Note (Paula)
 
For an update on the status of a listener’s guide, Paula suggested people go to board. The March guide will be the last in its present form. Erin stated that the board approved the budget for the guide, but staff would be the appropriate people to ask about the future of the guide. Debbie and/or Sun will take this information about communication to the staff meeting on Tuesday.
 
Finance Department Update (Debbie)
 
Debbie proposes that in the absence of a station manager, Mel Reslor work 5 hours a week to verify the cash activity for internal control. In this position Mel would also take on the job of receiving banking and any other financial statements to do the front end work of reconciliation. This would be through the end of the fiscal year to give the board and staff time to figure out the management structure at the station. Debbie also requests $500 to make a proposal to Wilken and Company to train Mel in doing this work. Mel will come back to finance with an update about how effective this position is within a two months of his start date. Personnel committee will be asked to come up with a title for this position and a job description. Finance committee approves and will recommend this proposal to the Board.
 
Debbie would like Mel to start on March 1st. Debbie will come up with tasks for the interim hire to present at the board meeting on Monday. She will work with Linda from Wilken and Co. to come up with job duties.
Arthur quotes policy #53 on hiring practices regarding temporary and interim employees to support Chris appointing Mel, instead of opening a hiring practice at this time, especially in light of this position possibly changing throughout the year.
 
Mel would need to report to Chris, it is inappropriate for him to report to Debbie, though he will work with her.
 
The staff recommended that if the finance committee and board approve this idea, to notify the personnel committee of any changes. If approved, Chris as acting Station manager could appoint Mel as an interim hire.
 
Debbie will talk with Bruce Silverman about getting a locked box for bank statements to be put in.
 
January Financial Statements Review (Debbie)
 
All Committee members need to review the January financials and get back to the committee with any questions and comments. Debbie recommends focusing on line 15 on page 5, which is the winter pledge drive income.
 
Good news. Membership is over budget by $9,600, even without the GiveGuide added to totals. Newswire under budget.
 
Bad news. Underwriting and advertising is under budget, Arthur recommends checking in with staff about this. Paula notes that advertising revenue is still being brought in by the program guide.
 
Finance asks that we get an update from staff about the status of Underwriting. Paula will contact Chris and/or Justin in this regard.  Debbie will look at monthly trends in underwriting over the last year.
 
Paula will ask Andrew to forward his regular monthly membership report to the finance committee.
 
KBOO Wins RACC Grant (Arthur)
 
Ryan, Arthur and Debbie will be meeting so Debbie can get a better understanding of the grant. Ryan and Erin Yanke will be working with Roosevelt High School to do an oral history project.
 
Sun will oversee grant projects, including this one, from now on. Exception being NTIA grants which Chris will manage.
 
Meeting Ends at 9:08pm
 
 
Attachment regarding the Station Manager Position
Arthur Davis and Station Manager Position
 
At the January 25th KBOO Board meeting, the Board of Directors accepted the recommendation from Arthur to lay him off. This was done in order to affect budgetary savings which will decrease the deficit, and in light of the unsustainable nature of the station manager position in its current form. This was a very difficult decision to come to. Arthur has provided valuable guidance and insight to the Board, and in collaboration with the KBOO community has accomplished a great deal.
 
Though Arthur’s service at KBOO precedes his time as station manager, his three-and-a-half plus years in the position have brought positive changes with tangible results. Arthur’s priorities during his tenure have been to improve behavioral expectations and conflict resolution; as seen by the adoption of the KBOO House Rules and subsequent trainings related to this matter. He has also worked with the programming committee to enhance program quality and scheduling, reconfigured Finance to bring about a more simplified and efficient department, and worked with Sun to create a viable and productive Development Department as an additional stream of revenue and public relations for the station.
 
Arthur’s final date of employment is yet to be set, but will occur sometime in mid-February. No decision has yet been made about station management in the interim. We will be working with Arthur and the staff over the next few weeks to further a transition that is effective and congenial; there are a lot of bases to cover.
 
A permanent replacement for Arthur will not be sought at this time. We are approaching this situation as an opportunity to evaluate KBOO’s annual operating expenses, organizational structure, decision-making process and the culture at the station that, at times, can be very challenging. We see this as a chance for everyone at KBOO to commit to deep reflection, not only to identify our shortcomings and areas for improvement, but also to reaffirm the inspiring and empowering mission at KBOO and set common goals for the future.
 
We hope that after he leaves as station manager, Arthur will return to the radio station volunteering in the areas of strategic planning, fundraising, and finance. We truly wish him all the best in whatever life brings, and thank him for his long years of service to the station.
 
KBOO Board of Director’s – January 27th, 2010

Finance Committee Minutes - July 20, 2010

 

Finance Committee Meeting Minutes – July 20th, 2010
(Approved August 17th, 2010)
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
In Attendence
Debbie Rabidue
Paula Small
Erin Brand
Sun Lee
Rolf Semprebon
Kurt Lauer
Bob Crow
 
Excused Absence
Jenna Goldin
Mel Reslor
Nia Lewis
Meeting started at 6:20pm
Check-in/intro
 Review June Meeting Minutes 
Finance approves June meeting minutes.
May Financial Statements Review
 Debbie did not do a summary this month, she wants to combine a May/June summary and email it out.
Balance sheet – Money market interest at Advantis and Bank of the Cascades has remained constant. KeyBank interest has dropped once again. We need to keep $200,000 as an operating reserve, which is in the Advantis money market. When funds are low in the operating account we will transfer money from money market to operating for payroll, until EFT’s and credit cards are deposited.
Deferred revenue that is now under Liabilities and Capital will be moved into Income line once Debbie has confirmed with John that live remote equipment is all purchased. The restricted funds from capital campaign (deferred revenue) will be moved into Development income line item.
Our cash reserves at the end of May this fiscal year ($446,007) is about $140,000 less than last fiscal year at the end of May ($599,009). This is due to spending the cash down, ie. deficit. Our cash deficit at the end of less fiscal year was about $107,000. We are burning less cash this fiscal year than what we budgeted. We have $422,029 in cash, but $200,000 is emergency operating reserve.
Income Statement – Membership is still over budget, right now it is $1,200 over budget. Unsolicited income is way over budget (+$18,000) due in large part to the Willamette Week GiveGuide $11,875. Direct Mail income will increase in July, Andrew has sent out a summer letter.
Kurt had a question about the history of Development revenue. Debbie explains that we budgeted $50,000 as income because we looked at how much Sun raised at half-time on the capital campaign (about $25,000).
Underwriting is under budget but virtually the same income as this time last fiscal year. Summer months tend to see more active underwriting.
Our total revenues are $33,000 less than budgetd.
Expense Statement – Under Salaries, it is $22,000 over last year because Underwriting commissions have been added to this line item, it used to be reported as contra-income in the income statement.
Newswire service continues to be way under budget, almost $6,300. We did not have to get the satellite feed, the internet service works. Debbie spoke with Jenka before she left and was assured that we will be able to budget for much less next year.
Bankcard fees remain to over budget. Finance department still actively working on our options for this.
Auxiliary Budget – Debbie says there won’t be much more spent in Aux. Debbie needs to check in with John about spending on the server, there’s still about $4,900 left to spend.
 
June Financial Statements Review
 June and July will be reviewed together in August.
Updated FY 2011 Budget Recommendations to Board Discussion
Debbie hands out FY 2011 Staff Budget worksheet. This budget will be staff driven, not management driven so they will need to be much more involved on the fine details.
Debbie will have a working copy of worksheet for staff and finance. She will create budget proposal highlights for board to review.
Andrew is still working on membership revenue budget for FY11. Sun’s preliminary Development budget is $25,000, Events at $20,000. Question on where to put income from tiered giving program, development or membership? Finance will revisit income reporting of tiered giving in the next few months.
Debbie worked with Justin on FY 11 underwriting budget of $55,000. When we get to the point of web advertising, the line item of “program guide ads” will be changed to “program guide/web advertising”. Staff was in consensus that $55,000 for underwriting is good.
Health benefits will be budgeted for an increase of 15% to $60,590.
Board will need to look at what may need to be budgeted for Professional Services.
Operating Income budget : Preliminary $687,400 (decrease of $38,650 from FY10)
Operating Expense budget: Preliminary $689,449 (decrease of $46,150 from FY 10)
Staff needs to discuss a recommendation to the Board about Mel, Zale and Erin’s temporary hours, and whether or not to fund those hours in FY11. Staff has not made a decision about funding a station manager position. Debbie and Sun will get clarification on staff recommendations about budgeting for management.
Finance committee requests the staff make a recommendation about how they want to budget for management duties. Finance recommends keeping money in the budget for a management position, whether or not it is for an individual position or dispersed amongst multiple staff (such as Mel, Zale and Erin Y.)
 
Debit/Credit Card Provider Comparison Update
Paula is still waiting for information from Albina Bank, wants to get their rates on ACH transactions.
Tabled full discussion until August.
 June Action Items/Commitments Update
 Further Update re: Pacifica Project (tabled until August meeting)
Meeting Ended at 8:45pm
Next Finance Committee Meeting is August 17th, 6pm at KBOO

Finance Committee Minutes - June 22, 2010

 

Finance Committee Meeting Minutes – June 22nd, 2010
(Approved July 20th, 2010)
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
 
In Attendence
Paula Small
Sun Lee
Erin Brand
Andrew Geller
Jenna Goldin
Bob Crow
Mel Reslor
Rolf Semprebon
 
Excused Absence
Nia Lewis
Debbie Rabidue
Steve Weiland
Anthony Petchel
Check-in/intro 
Steve Weiland is going to take a leave of absence from being on the committee. Thanks for your past committee work, Steve!
Review May Meeting Minutes
Finance approves May meeting minutes.
 April Financial Statements Review
Financial Summary for April 2010
(Revised 6/28/10)
 
Balance Sheet Highlights
  • Liquid cash balance is $410,000 of which $200,000 is the operating reserve.
  • Endowment has increased by $35,000 from 1 year ago
 
Income Statement Highlights
    Income
  • Membership income is on budget. 
  • Events and Development income is $19,000 under budget. However, it is also up $12,000 from last fiscal YTD, so we continue to see a positive trend.[1] 
  • Underwriting and Advertising revenue is $10,000 under budget[2], but is only $2,600 down from this time last year. The summer months usually bring in more underwriting. 
  • SCA Contract income is below budget due to renegotiating the FM Korea at a 35% discount.
  • Interest income is declining due to the bank yield % decreasing each month.
 
   Expenses
  • Employee expenses  will begin to decrease monthly with a savings of $2,000 a month.
  • Newswire service is currently running $800 per month under budget with using AFP3. We expect to add a local use agreement this fiscal year.
  • Printing and Postage is currently under budget by $8,300, but will begin to be used when the Listener Guide’s replacement promotion starts this summer.
  • Premiums is currently over budget from T-shirt purchases, but will meet budget at FYE.
  • Bankcard fees & Bank Service Charges are up $2,300 from last year.
  • Dues is currently over budget, but will meet budget at FYE.
 
 
Operating Bottom Line
  • Revenues are under budget by $32,000, and down by only $14,000 from last year. Expenses are over budget by $4,000, but less than last year by $900. We currently have an operating deficit of $22,000, largly due to unexpected legal expenses and no Spring Sweeps that we budgeted $16,000 for.
 
Auxiliary Spending
  • Auxiliary spending adds $47,000 to the deficit, bringing the net to a $69,000 deficit for management purposes, fiscal YTD. Major AUX spending was $28,000 on the lawsuit, $6,000 on the server and $11,000 on broadcast/engineering improvements and repairs. 
 
Note: We budgeted for a $79,000 deficit and at mid year (3/31/10) we had a deficit of $37,000. Spring Drive funds will show on May’s management report. We met the pledge goal, so we should see a major change on the YTD deficit.
 
 
May Financial Statements Review
 Tabled until July meeting, Debbie will present.
FY 2011 Budget Recommendations to Board Discussion 
Chris Merrick provided a statement to finance with some items that he thought we should consider.
Here are a couple more items for future consideration, both for the rest of FY-2010, and beyond:
 
1) Additional Pendleton FM expenses.  Debbie says they already owe KBOO $1,900, and they have done no fundraising yet.  We are inviting the Pendleton group to the June board meeting where we may work out a three-year timeline on what each group needs to do (technical, fundraising, studios, legal, etc). The Pendleton station is supposed to be on the air by February, 2013.
 
 
2) Sue Ryan legal fees. (Attorney) handling the December harassment complaint, we just got her first bill for $3,700.  I do not know how much more work she has to do to finish, but we hope to have her final report for the May 24 board meeting and finish this investigation.
 
 
3) HD2 and HD3.   We had a meeting with a member of a Russian business who proposes leasing one of our HD channels.  HD2 and 3 are digital sidebands that require a special radio receiver. They are the equivalent, however, of two FM radio frequencies.  John Mackey estimates $37,000 in hardware and engineering expenses for KBOO to set up these two sidebands.  The client "suggests" that he would front us this money, and $4,000/month in rent. (His business would sell advertising, which is allowable).  If this is a legitimate business proposition, the board will look at it next week.  However, if this doesn't pan out, we should certainly research what the value of these two digital sidebands are.  We could rent them both out for going rates ($4,000/month?), give them away for free (such as Radio Bilingue for a Spanish channel), or create a second KBOO radio station of all music or all public affairs, etc.  (By the way, this is not internet streaming, this is FM broadcasting).
 
 
4) Moving the $200,000 reserves to a socially-conscious mutual fund(s).  If the money market rate is now 1% or less, why not consider investing this money elsewhere?  It could go into the same funds as the endowment, or we could simply pick our own funds.  Policy #25 (operating reserves) states that the board "shall place [such reserves] in a separate interest-bearing, board-designated account or instrument (to be used only for emergencies).
 
5) Increase in insurance.  We are waiting to hear back from Bliss-Sequoia and Great American Insurance about our new rates for several KBOO policies (liability, D & O coverage, libel, etc).  We have reported four potential liability claims that could cause rates to go up. 
    - Papadopoulos and Forrester lawsuit (now moot, as they dropped the suit and we are no longer liable)
    - Papadopoulos second legal threat about not being reinstated on the board in February (nice guy isn't he?)
    - Nia Lewis may have a claim for harassment if she is not satisfied with the outcome of the Sue Ryan investigation
    - Arthur Davis has until February, 2012, to file a claim for "hostile workplace" leading to his request for a layoff.
 
Also, Arthur filed for unemployment with Oregon, granted, and Marc de Giere just filed as well (under review by OED).  This may lead to increase in unemployment insurance premiums as well.
 
 
Andrew has been tracking listenership and membership. We are not buying Arbitron data for this FY and that may or may not be a mistake. Andrew suspects that the program changes may not have done anything to increase listeners. He is preparing himself to possibly cut the revenue for the next budget year by $100,000 and has told staff that there may be a need to cut $75,000-$100,000.
Bob had questions about Arbitron and how they gather information. Discussion followed on people meters and how they track what people hear, rather than what people have tuned into.
Andrew presented a few graphs that he has been creating. The membership is holding very steady, it is the listenership that is worrying. The downward trend of listenership in the last two years, leads him to predict that we will shed members soon. There is a 10-year average of membership being about 10% of listenership.
Bob wondered if we have tracked what shows or times generate the most EFT donations. Andrew has done a draft of this kind of report, at this point it seems like the shows with the highest amount of donations have higher amounts of EFT donations (more phone calls, heavier listenership).
Andrew says that Programming staff is going to present a report on the programming changes at an upcoming staff meeting. Finance would like to see whatever information might be relevant to the budgeting process and see if Chris is available for questions.
Debit/Credit Card Provider Comparison  
Mel did research and created a report to see if we want to change merchants for our credit cards and try and reduce our bank fees. SwipeNow is a considerably cheaper option than the others.
Bob wondered where our bank fees went up. Mel answered that is in our checking account fees.
Comparing Bank of the Cascades, Keybank and Advantis Credit Union for our checking account. Advantis has a very high ACH per item fee. Andrew says we have 1,800 ACH transactions a month. Paula and others suggest trying to negotiate different fees depending on the number of transactions we have.
Andrew would like to see us approach Advantis and tell them that our sticking point is the ACH per item fee. Finance recommends Mel approach Advantis to try and negotiate ACH fee. He’s already asked twice so we’ll see what happens.
Finance asks Mel to do more background checks on SwipeNow and confirm terms of what a contract with them would be. Mel will ask SwipeNow and TMC if they can handle ACH.
Andrew will post something on NFCB to see what other stations do about ACH transactions, whether they use a bank or a third-party vendor. Andrew also will call OPB about who they use for a banking merchant.
Mel will do more checking account research at Albina and Unitus. Rolf will check at Oregonian. Paula is checking at Rivermark.
Update re: Pacifica Project
Mel and Paula will give a full report next month. An attachment will be provided next month.
 May Action Items/Commitments Update
Paula presents Debbie’s Finance Update
Finance Department update – Debbie Rabidue, Finance Coordinator (June 18, 2010)
1.       PCI DSS (Credit Card storage compliance). The Board has approved the Security Policy for Credit Card Processing in May. Erin Brand has electronically signed the company profile questionnaire for PCI through Elavon.
 
Final step is to download the Trustkeeper security certificate which can be added to the donor payment page on the website. I will work with Dan to get this done.
 
2.       Paychex and 401(k). The Board has passed a resolution removing Arthur Davis and electing Chris Merrick as Trustee/Administrator for the KBOO 401(k) retirement plan. Becky, Chris and Arthur have notarized all the Paychex/I.R.S. required paperwork with a guaranteed signature. These have been mailed to Paychex.
 
Final step is for me and Chris to proof read the 401(k) Amended Plan Adoption Agreement. Chris will sign it and I will mail out the paperwork to Paychex.
 
  1. Filing form 5500-SF for the 401(k) plan year 2009, this is due in August. I have verified the form 5500-SF from Paychex to be correct. The form is required to be filed electronically. Arthur was required to electronically authorize the form as Trustee for the 2009 plan year. I worked with Paychex retirement and Arthur. I was able to set up the electronic file with Arthur as Trustee for 2009. Arthur reviewed the 5500-SF with me and emailed me an approval to use his electronic signature to file. I have successfully filed the form electronically with the DOL. 
 
The account for electronic filing will be changed to: Remove Arthur and add Chris as Trustee for the 2010 filing.
 
4.      The research project on banking and credit card processing is nearing an end. Mel Reslor has been key in donating his time to gather data to see if we can find a way to save money. 
 
Mel will have a report for Finance to review next week. I will update the staff on what the Finance Committee recommends.
 
  1. Upcoming event: I will be meeting with Mark Eklund, CPA within the next 2 weeks to finalize my year end work and he will finish the annual audit and file the corporate tax returns for last fiscal year. I will update everyone after this process is complete. 
 
Copies of the Audited Financials and tax returns will be made for each Board member. Audited financials will be emailed to the staff and the Finance Committee. 
 
Becky will need to sign the tax returns for Mark. Chris may need to sign new bank account audit forms for Mark. Mark had gotten Arthur’s signature last September, but may need to re-submit the audit request to 1 or more banks. I will get an status update from Mark.
 
  1. Upcoming event: FY 2011 budgeting process will begin with the staff in July. I will be asking the Finance Committee for input and recommendations for the staff at the June 22nd committee meeting. The staff will work on the budget proposal in July and I will update the Finance Committee at the July meeting. I will work with Erin B., if needed, on a Board report (update) on the FY11 budget for the July BOD meeting. I plan on attending the Board meeting in July in order to get Board feedback and answer questions and accept finance tasks if needed.
 
 
Next Finance Meeting – July 20th, 6pm at KBOO

[1] Development & Event Income is $19,667 and the Development & Event Expenses are $3,238, with a net of $16,429 FYTD.
[2] This includes $2,900 in unexpected Guide Advertising. We budgeted for the Guide to quit publishing as of October, but we will not make any changes until February. 
3 Newswire is currently $5,500 under budget and may end up $9,000 under budget for the year.

Finance Committee Minutes - March 16, 2010

 

Finance Committee – March 16th, 2010
(Approved April 20th, 2010)
 
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
 
Meeting started at 6:16pm
 
In attendance
Bob Crow
Mel Reslor
Nia Lewis
Erin Brand
Kurt Lauer
Jim Craven
Paula Small
 
Excused Absence
Debbie Rabidue
Anthony Petchel
 
Check-in/intro – 10 minutes (depending on attendees)
 
Review February Meeting Minutes – 10 minutes (please review minutes ahead of meeting)
Approved pending a few clarifying questions Paula has for Debbie.
 
Additional Staff Hours Presentation(Ani) – 10 minutes
Board approved this concept with direction to Personnel and Finance to approve. Personnel has drafted job tasks, for Zale it would be included in job description, for Erin Yanke it would be new job. These additional hours and duties would be until the end of the fiscal year, or until these duties are covered by further management changes.
 
Zale’s current rate of pay is $14 an hour, she would get an additional 40 hours between now and the endof the fiscal year. Erin is requesting an additional 7 hours a week at $14.50 to take on some of Ani and Chris’s duties, she will also be responsible for staff evaluations and CRC staff liaison.
 
Ani feels that both of these employees will excel in new duties. Much of what Zale would take on she had already assisted Arthur in doing. For Erin it is a chance for professional growth.
 
Approved Personnel proposals regarding Erin Yanke and Zale Chadwick ( Ani  will be formatting the language into the job description template.)
 
Underwriting Department Update (Justin) – 10 minutes
Issues facing Underwriting (in no particular order): End of Listener’s Guide, Crapped Economy, More Underwriters means more support work, Monthly variability, Staffing changes, and Volunteer issues
 
Finishing touches are being put on online advertising. Goal of converting listener guide advertisers to underwriters and/or online advertisers. New web coordinator was hired and Justin talked with him about these issues.
 
There can be a wide monthly variability based on getting timely response from underwriters. Justin’s unofficial goal is $1,000 a week. There have been issues with collection in the past, Justin’s numbers are based on contracts that are signed, not accounts receivable.
 
Jim asked what the outstanding number is for accounts receivable, Justin estimates it’s about a few thousand. Justin feels that if all accounts were paid and online advertising were up and running that we would be ahead of budget.
 
Jim asked for clarification about how Justin is paid. Hourly wage plus commission on accounts receivable.
 
Bob asked how clients are asked to pay on their contracts; do we collect some up front? What is the policy on payment? Justin explains that it is rare to get pre-payment. He tries to rely on credibility to ensure payment.
Paula expresses past concerns that finance, and she personally had about news about the listener’s guide. It’s been unclear what the timeframe and format will be, looking to staff for answers and development in working on how to get publication and promotions out.
 
Paula asked about trade agreements. Justin points out that $16,000 went for trade; he gets a one-time 5% commission on value of trade, if contract is renewed annually he would get that 5% each year. Examples of trade would be cross-promotions, coffee, etc.
 
Development Department Update
Dine out for KBOO, March 24th
Nia will talk to Sun about changing IR to say that diners should say that they are there for KBOO.
 
Trailblazers game is March 31st.
 
Membership Department Update (Paula) – 10 minutes (please review attached ahead of meeting)
Winter membership drive report from Andrew. Pledges exceeded goal, current fulfillment rate is 84% with projected collections of $46,525.
 
Update on February Action Items– 10 minutes
 
OCF Endowment Update (Paula to distribute material on Anthony’s behalf) – 10 minutes
Committee members should read information handed out and email questions to Anthony, or wait until next meeting.
 
Internal Controls Discussion (Paula) – 10 minutes
Paula has concerns about internal controls and KBOO as a whole and how things go in and out of the station. She does not have concerns about a specific person, just about the systems. Mel will be addressing some of these concerns when he gets trained by Wilken & Co. and starts getting paid for these duties.
 
Mel will talk to Bruce about mail security and lock box.
 
Finance Committee Meeting Discussion re: April– 10 minutes
Debbie wants to discuss mid-year budget at next meeting and use the entire time to do historical analysis.
 
Paula noted that some of the tabled items will be rolled into the mid-year budget discussion. The credit card security policy will be separate.
 
Meeting ends at 8:28pm
 
FDIC Update from Mel
FDIC states that 55 days after a quarter ends, that the financial data is produced.  This includes the deposit insurance fund.  They didn't have end of 2009 DIF balance on March 16 - more than 70 days since last quarter.
I sent an e-mail asking about the balance, have not received a reply.
This is what the FDIC has on their webpage: (emphasis is mine)
Due to recent disruptions in the financial markets and the large numbers of bank failures in the last year, the DIF reserve ratio has fallen below 1.15 percent and is expected to be negativeas of September 30, 2009.
http://www.fdic.gov/deposit/insurance/index.html
          So if a bank fails and the depositors have trouble getting recompensed, FDIC can claim -- it's not a secret, it was right there on our website!
Actually, they would borrow from the Treasury, which they have not done since 1992.
      
Not one of our banks -
The FDIC maintains a list of failed banks.  There are eight so far in March.  17 in February.  For the entire year of 2005 and 2006, no banks on their list were closed.
 
Tabled Items
 
Finance Department Update
 
January Financial Statements Review 
 
February Financial Statements Review 
 
Draft Credit Card Security Policy
 
 
April’s Meeting Date: Tuesday, April 20th

Finance Committee Minutes - May 18, 2010

 

 
Finance Committee Meeting Minutes – May 18th, 2010
(Approved June 22nd, 2010)
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
 
In Attendence
Debbie Rabidue
Paula Small
Erin Brand
Mel Reslor
Dan Gurin
Rolf Semprobon
Sun Lee
Nia Lewis
Bob Crow
 
Excused Absence
Anthony Petchel
 
Meeting started at 6:10
 
Check-in/intro
 
Review April Meeting Minutes
Approved by consensus
 
March Financial Statements Review (Finance Committee)
See attached financial summary
 
Mel will look into ACH fees for monthly credit card charges while he investigates credit card vendors. 
 
Finance approves sending March Financial Statements and Summary to the Board.
 
 
April Financial Statements Review  (Debbie)
Tabled until June, will be emailed out by Debbie ahead of time
 
Strategic Planning Discussion (per Erin Yanke’s request, Debbie gives update)
Debbie and Erin Yanke are staff point people for strategic planning. An RFP has been drafted and has been sent out to various firms and posted. One consultant suggested that KBOO publish a minimum and maximum for what we want to spend, this is not something we want to do at this point.
 
Once the strategic planning group receives RFP’s and reviews them, the board will need to be actively involved in discussing a budget for what we want to spend on strategic planning. The deadline for bids is June 16th.
 Erin will bring this update to the May Board meeting.
 
Mid-Year Budget Projection (Finance Committee)
– Review final draft for Board Approval
Staff reviewed the mid-year budget at staff meeting today. This is a projection for the next 6 months, based on the actual from the first six months of this fiscal year.
 
Revenues Membership lines 6 through 15 are projected to meet budget, the change may be within line items of membership revenue but not for the overall membership revenue. Spring drive was only $1,200 under the $95,000 goal. With our fulfillment rate for pledges we should reach the spring drive budget of $74,000.
 
Development is projected to come out $20,000 under the $50,000 budget, but this is a very ambitious goal, so we still feel good about it. We will be able to gauge the development income better once we are able to look at the May financials.
 
Total revenues are projected to be about $15,000 under budget, or $701,000.
 
Expenses Telephone expenses will probably be over budget. The newswire service is way under budget and Jenka and John don’t feel like we need the satellite service at this point (which was budgeted at $8,100). We haven’t spent money on a local news service at this point in the fiscal year.
 
Total expenses, including auxiliary spending, are budgeted to be about $30,000 under budget, or $765,000.  Budgeted deficit of $80,000, projecting $64,000.
 
Auxiliary Didn’t spend money on Sun’s parental leave. The live remote gear and other capital campaign money is just about spent, matching NTIA grant to come in. Haven’t spent $3,300 on two-week programming back up on web, Dan is not sure if we will need to spend it.
 
Dan will follow-up with Roger Leigh to get bill for his web upgrade services, we want to be able to close this line item by the end of the year.
 
Finance approves sending the Mid-Year Budget projections to the Board.
 
OCF Endowment Update (Anthony)
Debbie received the OCF fund balance sheet from January 1st through March 31st. The fund balance started the year at $191,812 and by the end of March it is at $196,723. Good news that there has been a gain on investments. 
 
Key Bank/Bank of the Cascades Cash Accounts Discussion (Debbie/Anthony) 
 
 
Mid-Year Controllership Update (Debbie/Erin)
Discussion about recommendations that Linda has made regarding internal controls. Sun suggested that people could write credit card numbers on just the yellow and pink forms and put the last four digits on the white copy so that members know that their information was received.
 
Wilken & Co. also recommends the continuation of the funding of the internal controls position (ie. Mel’s position).
 
Debbie has been looking in to getting asset software that is compatible with Peachtree to track depreciation of assets. Linda recommends that we pursue this so that it we will be able to produce more accurate monthly financial reports. Debbie suggests involving volunteers (ie. Engineering volunteers) to do a complete inventory of our assets.
 
Erin will bring the mid-year controllership report to the board and convey Finance committee’s discussion about Linda’s recommendations.
 
Lawsuit Expense Update (Erin)
– Recap April Finance Report to the Board
 
 
January – April Action Items/Commitments Update
Debbie provided an addendum of Jan.- March that is added to the April minutes.
 
April follow-up
- Debbie has worked with Zale to get a policy proposal to the board for approval at the May meeting regarding credit card security.
-KBOO did not move any cash to the money market account yet, between EFT and pledge drive that has not been necessary. The discussion has been to move $80,000 in the future, out of Bank of Cascades to Keybank money market so that we can make draws. 
-When we go over April and May financials next month we will look at the trends with the fund balance. The May financials will show the final bill from Scott Pratt, just under $12,000.
-Andrew wants to revisit his budget projections once he has caught up with Spring Drive work.
-Justin wants to meet with Dan to discuss web advertising. Justin has clients that are interested, 8 of them in fact. Dan will bump up web advertisements and referral links on his priority list.
-Andrew wants to get a quarterly publication out in June, this is the replacement to the monthly listener’s guide. Debbie didn’t have numbers to go by for this publication, so she just used what was budgeted for the mid-year review.
 
 
 
June’s Meeting Date: Tuesday, June 22nd
We will be looking at Chris’s items for future budget considerations at the June finance meeting.
 
 
 
 
 
Attachments
 
Financial Summary for March 2010
 
Balance Sheet Highlights
  • Liquid cash balance is $450,000 of which $200,000 is the operating reserve.
  • Endowment has increased by $26,000 from 1 year ago
 
Income Statement Highlights
    Income
  • Membership income overall is $20,000 over budget. 
  • Events and Development income is $12,000 under budget. However, it is also up $6,000 from last fiscal YTD, so we continue to see a positive trend.[1] 
  • Underwriting and Advertising revenue is $7,500 under budget[2], but is only $1,700 down from this time last year. The summer months usually bring in more underwriting. 
  • SCA Contract income is below budget due to renegotiating the FM Korea at a 35% discount.
  • Interest income is declining due to the bank yield % decreasing each month.
 
   Expenses
  • Employee expenses  will begin to decrease monthly with a savings of $2,000 a month.
  • Newswire service is currently running $800 per month under budget with using AFP3. We expect to add a local use agreement this fiscal year.
  • Printing and Postage is currently under budget by $6,800, but will begin to be used when the Listener Guide’s replacement promotion starts this summer.
  • Premiums is currently over budget from T-shirt purchases, but will meet budget at FYE.
  • Bankcard fees & Bank Service Charges are up $2,000 from last year.
  • Dues is currently over budget, but will meet budget at FYE.
 
Operating Bottom Line
  • Revenues are under budget by $7,000, but down by only $2,000 from last year. Expenses are over budget by $4,000, but less than last year by $7,000. We currently have an operating deficit of $3,200.
 
Auxiliary Spending
  • Auxiliary spending adds $34,000 to the deficit, bringing the net to a $37,000 deficit fiscal YTD. Major AUX spending was $16,000 on the lawsuit, $5,600 on the server and $11,000 on broadcast/engineering improvements and repairs.
 
Note: We budgeted for a $79,000 deficit and at mid year we have a deficit of $37,000.

[1] Development & Event Income is $17,569 and the Development & Event Expenses are $3,557, with a net of $14,012 FYTD.
[2] This includes $2,050 in unexpected Guide Advertising. We budgeted for the Guide to quit publishing as of October, but we will not make any changes until February. 
3 Newswire is currently $4,700 under budget and may end up $9,000 under budget for the year.