2011 FY

The 2010 fiscal year runs from Oct 1st 2010 to Sept 30th 2011. 

* 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.

FY 2011 Budget Documents

The following documents comprise the Fiscal Year 2010/2011 Operating and Auxiliary Budget as passed by the KBOO Board of Director's at the September 2010 Board meeting.

AttachmentSize
FY11 Budget Narrative.pdf65.67 KB
FY11 Budget Notes.pdf28.64 KB
FY11 Operating Budget.pdf73.22 KB
FY 11 Auxiliary Budget.pdf36.39 KB
FY11 Staff Salaries.pdf35.69 KB

Finance Committee Minutes - April 19th, 2011

 

Finance Committee Minutes (approved May 17th, 2011)
April 19, 2011
Commitments are italicized
 
In Attendence
Kurt Lauer
Andrew Geller
Bob Crow
Sun Lee
Azure
Paula Small
Debbie Rabidue
Mel Reslor
Alex Roberts
 
Meeting starts at 6:10pm
 
Check-in/intro
 
Approve March Meeting Minutes
Match minutes are approved.
 
March 2011 Financial Statements Review
Debbie will email March Financial Summary and Financials for Board meeting.
 
Finance and Membership need to do some reconciliation on the year to date actual Membership revenues. Also Development and Finance will do this for Mid-Year projections.
 
Discussion on why Membership is $49,000 over budget. Increased giving by members, not increased membership.
 
Sun comments on increased fulfillment, more EFT’s and larger gifts.
 
Erin wonders if there is a way to track success of major giving, if certain donors are giving more because of Development Director. Andrew discusses creating a report for the entire fiscal year, over 5 years, and amounts given, much like he makes a report for specific drives.
 
Debbie wonders if we just under budgeted we should get a better idea after the next pledge drive.
 
Sun discusses Development projects and Events coming up to raise money. KBrew beer and coffee, summer raffle, book and record sale, etc. Sun will probably be taking some Grant classes after the Strategic Plan gets approved.
 
Debbie asks if Sun can draft up a Development projection list.
 
Paula comments that we should come up with ideas for events/appreciations/etc. for major donors but also continue to have events that include all donor levels.
 
Kurt has development ideas that he will send to Sun.
 
Mel is going to research why Broadcast Equipment and Purchases is over budget.
 
Sun is going to talk to Ras Danny about Reggae Rising tickets.
Upcoming Mid-Year Budget Projections
Debbie will send out Mid-Year Budget Projections.
 
Strategic Plan Draft
Strategic Plan draft and survey regarding draft are on the KBOO website. Finance Committee members are encouraged to review draft and fill out survey.
 
Photo Copier
Andrew is going to look into leasing and servicing a new photocopier because our current one is on the fritz.
 
Safety Deposit Box Update
Judy and Mel opened the safety deposit box at KeyBank and changed it to Bank of the Cascades.
 
The Board President and Board Treasurer will have access to the safety deposit box, at staff it will be Chris Merrick and Mel. Finance will be in charge of handling changing names on access when there is turnover on the Board. Keys will be kept at the station and would be checked out from Finance when needed.
 
Finance Department Update
Debbie will be contacting Kris from Kern & Thompson to be getting preliminary paperwork to start work on the year end prep for the audit.
 
Debbie will be scheduling Linda Barkus of Wilken & Co. to come in and do the Mid-Year Controllership.
 
Erin will be out of town for the May Finance and Board meeting. Paula will handle minutes at the next Finance meeting and relay finance information to the Board at the May Board meeting.
 
Debbie is continuing to train Mel so that she can focus on the year-end prep for the audit, updated desk manual and revamping the chart of accounts.
 
Finance Computer Update
Debbie is asking staff to look at buying a new finance computer during the Mid-Year Budget projection.
Before that Mel, Debbie and Tom will look at a computer in the engineering department that may be able to be used for finance. They will try to get information to the Board by the Monday Board meeting in the event that money would need to be approved for a new computer.
It would be good for all Department computers to be assessed as far as health and replacement of computers. Board members on Finance will bring this up at the Board meeting in a discussion of IT needs at the station.
Items from Staff Meeting
Debbie and Mel talked to staff about the Finance Coordinator position. Staff is leaning towards having Mel do the Finance Assistant position as detailed in that job description. In 60 days the staff would like to look at the position and potentially open up a hire for Finance Coordinator. The benefits of doing this are that it keeps the staff from being overloaded on personnel issues right now. The other benefit is that Mel can train deeper into the position while Debbie is still around.
Paula will work on drafting job descriptions for Finance positions, specifically for internal controls.
Debbie will check in with Linda Barkus to see how she feels about having check logging done within the finance department.
Finance recommends that during supervisor training for membership drive that we have phone answerers write credit card numbers only on the carbon copies.
Staff Salary and Structure
 
Meeting ends at 8:40pm
Next Finance Meeting will be May 17th, 6pm at KBOO.
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Finance Committee Minutes - March 22, 2011

 

Finance Committee Minutes
March 22, 2011 (Approved April 19, 2011)
Commitments are italicized
 
In Attendence
Mel Reslor
Sun Lee
Paula Small
Erin Brand
Bob Crow
Nia Lewis
Azure
 
Absent
Debbie Rabidue
 
Meetings starts at 6:15pm
 
Check-in/intro
 
Approve February Meeting Minutes
February minutes approved.
 
January 2011 Financial Statements Review
 
Financial Summary: January 2011
Debbie Rabidue
 
Balance Sheet Highlights
  • Available fund balance is $347,000 of which $200,000 is the operating reserve.
  • The endowment added $12,593 in funds in December. We received a distribution of $4,703 as well. The net increase in the endowment for the 4th quarter of 2010 was $7,890.
  • The liability balance consists of Accounts Payable paid in February and the Capital Campaign money that will be allocated to FY10 revenue during year end prep.
  • We are holding a $24,000 balance at Key Bank for the time being. The Finance department is in the process of closing the two Key Bank accounts. The two merchant accounts (credit card processing) have been closed at Key Bank.
 
Income Statement Highlights
    Income
  • Membership income is $22,000 over budget. 
    • Membership revenue was reconciled between the Finance and Memberships departments, through January 31st.
    • The Fall pledge drive was at budget. Winter pledge drive money is still coming in and we can tell more on the February Income Statement on how the drive preformed against the budget.. 
  • Events and Development income is $2,800 under budget. 
  • Underwriting and Advertising revenue is close to budget. 
 
   Expenses
  • Employee expenses  are under budget due to upcoming step increases that will bring wages back to budget.
  • Broadcast Equipment Maintenance is $5,000 over budget. I will need to get with Engineering and find out why the costs are high this early in the year. I will report back to Finance on my findings.
  • Premiums appear to be over budget, but should even out. The annual budget for Premiums is $9,500.
  • Postage is $3,600 under budget.
  • Bankcard fees & Bank Service Charges should start seeing savings as soon as we close the Key Bank accounts. We are spending close to $100 a month on service fees, and were paying an additional $70 to $100 a month on the merchant accounts.
 
Operating Bottom Line
  • Revenues are over budget by $19,000, due to Membership income. Expenses are under budget by $7,500, and spending is down by $7,000 from this time last year. We currently have an operating surplus of $31,000, $27,000 better than we budgeted for the end of January. We budgeted for a $48,000 operating deficit. We are still too early in the fiscal year to get a good feel on where we may end up at fiscal year end.
 
Auxiliary Spending
  • Auxiliary spending is $27,000 fiscal YTD, this brings the net to a $4,700 surplus for management purposes, fiscal YTD. Major AUX spending is $11,000 on strategic planning and , $15,000 on broadcast/engineering improvements and repairs. 
 
 
February 2011 Financial Statements Review
 
Financial Summary: February 2011
Debbie Rabidue
 
Balance Sheet Highlights
  • Available fund balance is $338,000 of which $200,000 is the operating reserve.
  • The endowment added $12,593 in funds in December. We received a distribution of $4,703 as well. The net increase in the endowment for the 4th quarter of 2010 was $7,890. The Fund Balance report has been updated with the OCF quarterly statement as of Dec. 31st 2010.
  • The liability balance consists of Accounts Payable paid in March and the Capital Campaign money that will be allocated to FY10 revenue during year end prep.
  • We are holding a $24,000 balance at Key Bank for the time being. The Finance department is in the process of closing the two Key Bank accounts. The two merchant accounts (credit card processing) have been closed at Key Bank. All of the direct deposit donations have been changed to now deposit to the BOTC checking account.
 
Income Statement Highlights
    Income
  • Membership income is $42,000 over budget. 
    • The Fall pledge drive was at budget and the Winter pledge drive is over budget by $11,000. Memberships and Finance will reconcile the membership revenue accounts at the end of March.
  • Overall, Membership revenue is higher than this time last year by $6,500. Memberhsips appears to be maintaining a flat level.
  • Events and Development income is $6,300 under budget. 
  • Underwriting and Advertising revenue remains close to budget. 
 
   Expenses
  • Professional Services went over budget with $8,000 in legal services that were paid in February.
  • Broadcast Equipment Maintenance/Equipment Purchases (not auxiliary) is $5,900 over budget. There is a delay on researching the costs with the termination in Engineering. I will need to get with the Interim Engineering Staff and find out why the costs are. I will report back to Finance on my findings.
  • Premiums will be over budget for the fiscal year. Andrew says that he will go over budget in Premiums but will stay under budget on Postage and Printing costs. Finance should continue to monitor these expenses.
  • Printing & Postage is $7,000 under budget.
  • Bankcard fees & Bank Service Charges are $1,900 over budget. I will research why there is a huge variance from the budget.
 
Operating Bottom Line
  • Revenues are over budget by $34,000, due to Membership income increase. Expenses are under budget by $2,900, and spending is down by $8,000 from this time last year. We currently have an operating surplus of $22,000, $31,000 better than we budgeted for the end of February. We budgeted for a $48,000 operating deficit for the fiscal year. 
  •  
Auxiliary Spending
  • Auxiliary spending is $27,000 fiscal YTD, this brings the net to a $5,700 deficit for management purposes, fiscal YTD. Major AUX spending is $11,000 on strategic planning and , $15,000 on broadcast/engineering improvements and repairs. 
 
 
Engineering Position
Sun gives updates from today’s staff meeting. Staff wants to hire a temp. engineer at part time (20 hours/week) with benefits. KBOO has signed a contract with Mark Viccaro for IT needs. One idea from the contractor is that we could get a student to help with computer needs and Mark could mentor them.
 
Paula is concerned about how long engineering would be an interim position and also that the employee keeps track of comp. time with it being only 20 hours a week.
 
KBOO will be doing multiple hires in the future; Finance Coordinator, Engineer, IT, Development Director.
 
Discussion about planning for replacement of engineering equipment, building/station repairs, major expenses so that costs can be forseen.
 
When doing the FY2012 budget departments may want to do aggressive budgeting for major expenses(especially engineering equipment)
 
 
FY10 Audit/Year-End Update
FY 2009 Audit is not done, taxes are completed, though.
 
Mel hands out information with Audit, Review and Form 990 quotes from CPAs.
 
Mel has checked references for Kern & Thompson LLC and they have given favorable quotes. References were all very good. Mel and Debbie attended a seminar given by Kris Oliviera about audits.
 
Paula mentions that Mark Eklund was the person that counted our ballots from the annual election, we will need to find a replacement.
 
Nominating Committee will need to find someone else to count the ballots for our annual elections.
 
Bob wants to make sure we have done our due diligence in researching and recommending an independent CPA.
 
Finance Committee recommends that the Board retain the services of Kern & Thompson LLC to complete our FY09, FY10 audits, Form 990s and our future audits and/or reviews.
 
Finance Department (maybe with help from Sun) will put together a thank you card/gift for Mark Eklund.
 
Finance Department Work Plan and Update
The Finance Department update will be forwarded to the Board.
 
Finance Department: Debbie Rabidue
Transition work plan: Mel and I have been working on training in the daily operations in the finance department. Mel has now taken over the responsibility of preparing the bank deposits and getting them in the bank. He is also taking on the A/P tasks; gathering the bills, getting the proper authorizations, entering the bills into the accounting system, running checks, getting signatures and mailing out the payments. We remain under budget for the total finance hours and have room for the increase in hours for Mel. I am working on updating the Finance desk manual that I wrote 3 years ago and will use Mel’s help. It’s a little out of date as many changes have occurred in the credit card processing, banking, employee benefits, and so on. This will be an ongoing project over the next couple of months.
Credit card processing; We have closed the Merchant accounts at Key Bank (credit card processing). We have tested the new credit card processing and everything is running fine. The new credit card processing is working well with the website for donation payments. We will be saving a little money each month now.
Banks and safe deposit box:  Mel is continuing to work on getting the 2 Key Bank accounts closed. He is also working on closing the safe deposit box at Key Bank and opening one at Bank of the Cascades where we now have our main banking.
 
Needs Finance Committee recommendation and will need to be an Action Item on the upcoming Board meeting.   We need approval to spend up to an additional $10,000 for the year end audit with a new CPA. We most likely will spend much less, but have not elected the CPA that will replace Mark Eklund yet.  
Audit costs: Mel is continuing to work on researching a new CPA firm to perform our annual accounting audit and filing of the 990 and CT12, as Mark Eklund will be retiring. Mel, Erin Brand and I have met with one CPA firm.   Mel has met with two and has obtained a few additional estimates. We are getting estimates that are ranging from $9,000 up to $20,000. We were paying around $4,000 for Mark’s services. We will need the Board to approve an additional $5,000 to $10,000 to be spent on the audit for FY10 since it does not look like Mark will be able to take on one last year for us. The quality of the year end prep work will be a factor in helping to drive the audit costs down. Geffen Mesher lowered their estimate by $4,000 after looking at the year-end prep package that I did previously. Geffen Mesher is one of the highest in cost.   Finance Committee will tease out the costs and bring it to the Board for a decision. (Thank you Mel for your attentive and hard work on the CPAs and the costs for audit and review. Mark filed an extension on the 990/CT12. The file date is May 15th. We will file another extension since we will need more time to prepare with a new CPA. The new file date will be Sept. 15th.
Mel and Debbie attended an event at NAO (TACS) on Newer Audit Standards: Higher Costs, More Findings, an information sharing and CPA presentation on how to help lower audit costs.
Annual election ballots:   Mark Eklund has also said that he will most likely not be doing the ballot counting for this upcoming Board election. He has suggested an intern(s) from a local accounting school that he has used to help him in the past. 
 
Upcoming Mid-Year Budget Review Process
Debbie is open to feedback for what the Board or Finance wants to see in the Mid-Year Budget process.
 
Mel suggests a detail on Engineering and IT expenses for the past few years, including examples of what falls under ‘computer’, ‘equipment purchases’, ‘broadcast equipment maintenance’, etc.
 
Safety Deposit Box Update
Finance has talked with Anthony about opening a safety deposit box at BOTC. It will be $55 a year, plus $5 a key.
Finance recommends getting at least two keys to the safety deposit box.
Mel will make copies of any of the paperwork in the safety deposit box and give papers to the Board.
Finance Coordinator Position
Discussion about when a job posting and hiring committee would be formed. How many hours would a new Finance coordinator have?
 
Finance Committee would want to keep a separate position for internal controls.
 
Next month Finance will make recommendations to the Board about a future Finance hire, what the position would entail and how many hours the position would be.   
Meeting ends at 8:05pm
Next Finance Meeting will be April 19th, 2011 at 6pm
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Finance Committee Minutes - Nov. 16, 2010

 

Finance Committee
November 16, 2010
(Approved January 18th, 2011)
Commitments are italicized.
 
In Attendence
 
Mel Reslor
Paula Small
Erin Brand
Rolf Semprebon
Kurt Lauer
Nia Lewis
 
Absent
 
Sun Lee
Debbie Rabidue
Bob Crow
Meeting starts at 6:22pm
 
Should next month’s meeting be postponed until January?
Our next meeting will be January 18th, 2011. Hopefully the winter drive will not fall on this date. We would like an update about strategic planning at January meeting.
 
 
Finance Committee Chair
Can revisit in the future but at this time Erin is fine being secretary and Paula is fine being chair that sets the agenda and facilitates meetings.
 
 
Development Update
Raffle ends Monday the 22nd
 
Blazers game versus the Knicks in January. $5 of each ticket to KBOO and a tabling opportunity.
 
Square dance will be in February. Need to find a venue.
 
Maybe a March Mardi Gras event at Mt. Tabor Theater.
 
Fall Membership Update
 
Hopefully we will get a full report from Andrew at January FC meeting. Debbie will get a written report or ask him to attend. If the January meeting is right before or during the Winter Drive, we do not expect him to attend.
2011 Potential Finance Projects (list in progress)
 
-       Complete inventory list to track depreciation. Debbie, does this involve buying additional software for Peachtree? What do you need to complete this project? (Such as volunteers). Finance is also concerned about the security of things being stolen or mis-used.
-       Mel suggests someone to scout out pledge premiums. At KPFK they have a staff person that looks out for pledge premiums and develops programming around it. (More of a development project)
-       Mel would like someone from FC or Board of Director’s watch what he is doing for internal controls and give a report back to Finance and the Board. Erin says she can do this, will set up a meeting time with Mel. Paula mentions that we could also observe what Zale is doing.
-       More Board responsibility for fundraising. Kurt notes that many boards are responsible for 10% of an organization’s budget.
-       Rolf wonders about having a “KBOO Store” on the website to sell in-house merchandise. We would be able to display t-shirts and other premiums so donors can look at gifts.
 
September Finance Minutes
Finance committee approves September Finance minutes.
 
Meeting adjourns at 7:20

Finance Committee Minutes -Febraury 22, 2011

 

Finance Committee Minutes
February 22, 2011 (minutes approved March 22, 2011)
Commitments are italicized
 
In Attendence
Bob Crow
Mel Reslor
Paula Small
Erin Brand
Nia Lewis
Debbie Rabidue
 
Meeting starts 6:22pm
 
Check In/Intro
 
January 2011 Financial Statements Review
Tabled-Debbie did not complete the packet due to illness the previous week and a long staff meeting this afternoon.
 
January Minutes
Finance Committee approves the January 2011 meeting minutes.
 
Brief discussion about who would lead a cost of living increase workgroup. Board has had a full plate and didn’t have time to discuss this project at the last meeting.
 
Finance Department Update
Debbie gave notice at the staff meeting today. It is not a two week notice, more like 90 days or however long it takes to find and train a replacement and finish the prep work for the year-end audit.
 
Debbie and Mel worked together to develop the transitional work plan below.
 
Accounting Transition Work Plan
February 21, 2011
Dear Staff, Finance Committee and Board,
I am giving my notice, but would like to start by cutting my hours and increasing Mel’s while the hiring committee is formed and process takes place. I do not need to leave in a short time and am willing to continue doing some work, training and helping with the hiring process. If this takes 90 to 120 days, I am fine with that and am flexible but cannot put in 30 to 40 hours a week right now. I’m not actively seeking other employment at this time, so there are no restrictions on my availability other than the weekly hours. I need to be at home more with my youngest daughters as we are looking at both of them going through surgical procedures over the next few weeks or possibly months. There are other personal things happening that make it better for me to be more accessible to my daughters and to lessen external stresses. Mel is fine with doing the daily finance work as long as into September. We are sure it will not take this long, but this allows KBOO to do it’s due diligence in hiring for this particular position.
 
Our proposal is as follows:
Mel’s interim duties:
ü Bank deposits and deposit data entry (Mel).
ü Processing credit card payments (Mel).
ü Generating checks, collecting signatures, paying bills and the data entry (Mel).
ü Payroll (Mel)
ü A/R invoicing and monthly credit card memberships (Mel)
 
Debbie and Mel shared duties and training opportunity:
ü A/R collection (working with Justin) – (Mel and Debbie if needed)
ü Insurance and Employee Benefits (Mel and Debbie).
ü Filing (Mel and Debbie).
 
Debbie’s duties with some training opportunity for Mel:
ü Internal controls with no cash handling (Debbie). Temporary transfer of duties from Mel to Debbie. Mel will return to this position after a new hire is put in place.
ü Year end reconciliation and prep for Auditor (Debbie, work to be shared with Mel)
ü Update and make usable the Finance desk manual (Debbie with Mel to review and help).
ü Mid –year CPA Controllership & mid-year budget review (Debbie, work to be shared with Mel)
 
Training: (Items I can train Mel on while I’m doing the work pending a new hire)
ü Brush up training on daily duties and using the accounting software
ü Monthly close and reconciliations. Financial statement preparation, reports and projections.
ü Grants and grant budgets. Tracking restricted grants.
ü Reconciling general ledger accounts.
 
Upcoming projects that need addressed:
ü Inventory project for insurance and fixed asset control.
ü PCI DSS: Re-certifying with new credit card processor. This will require going through the process again. Self Assessment test, setting up vulnerability scan, and reviewing the current security policy. Removing the finance computer from the network or setting up a dedicated server (not shared).
ü Mid-year budget review process.
ü Filing the CR5500 for the 401(k) plan.
ü Insurance renewals: some will renew in April. 
 
We are estimating that we could move Mel to 20 to 25 hours a week and cut me back to 20 hours. I keep track of my budgeted hours and they are under budget right now. I would normally be going to a 40 hour week while working on year end prep. I would keep my benefits until the finance transition is complete and satisfactory to the Staff and Finance Committee. Once the new hire is trained in, if KBOO wants to have me continue to be involved in the finance area for awhile, we could look at independent contracting like I did for KBOO before. Naturally, this would not be a staff position and there would be no benefits. After the year end prep work and mid-year budget review work is done and if it seems realistic for me to work less than 20 hours until a new hire is put in place, then I would look at IC instead of a staff position. My goal is to help KBOO hire and train a qualified Finance Coordinator with proven skills to take over the job completely.
I would highly recommend that the internal controls staff position be continued after I leave. This has been an inexpensive proactive procedure that helps to keep the Foundation less of a target for fraud.
I am committed to my profession and the overall health of the Foundation even if I am not able to stay on as a staff member at this time. I am happy to actively help with the transition since we do not have a station manager that can oversee the finance department, the transition and training. Mel has improved his bookkeeping skills by taking and passing a bookkeeping certification class. However, he has not done the higher level of accounting work for KBOO. I can train him and/or the new hire.
Debbie Rabidue
 
 
Paula asks Debbie about how to make the position more flexible for her. Discuss when she was an independent contractor for KBOO and didn’t need to attend staff meetings and collective management meetings.
 
Discussion around filling the finance position at 30 hours per week at the current pay rate. Without a station manager the position is more realistically a 40 hour a week position.
 
How do we get Debbie to stay?
 
Paula proposes that Debbie and Mel hash out their responsibilities and propose a plan at the board/staff retreat.
 
 
Research Summary on CPA Costs – Audit vs. Review
Mel has been researching costs on CPA annual reviews, as opposed to an annual audit. Our bylaws require an audit, harkening back to days when we received substantial federal funding. Debbie is hoping that by doing extensive prep work for the audit, Mark Eklund will still want to complete the audit.
 
There would need to be a bylaw change to change from an audit to a review. Finance would need to take the lead in proposing a bylaw change and providing supporting arguments for it.
 
One idea is to change the bylaw to require at least an annual review, though an audit could always happen (particularly if we got a major grant or federal funding that requires it.)
 
We have filed for an extension for our 2010 federal tax forms.
 
Nominating Committee needs to find someone else to replace Mark Eklund to count our ballots during the annual election.
 
Debbie will ask Mark about filing another extension, if we don’t need that much time, that is okay. Another CPA firm had suggested we do this in case we do find ourselves needing to work with a different Auditor if Mark isn't able to do it. If this happens, it could impede the process and make it to where a new CPA wouldn't have time to audit and file tax returns by May 15th because they would need to become familiar with the KBOO accounts first.  Mark knows them, since he's been doing the Accounting and returns for over 20 years.
 
Debbie believes that an annual review would be appropriate for KBOO. Financially it would save money and with a mid-year controllership we also have an independent set of eyes looking at our finances.
 
Board members will take Debbie and Mel’s recommendation for how they want to handle the next 30 to 60 days of the finance department at the February 28th Board meeting.
 
KeyBank Bank and Merchant Accounts
KeyBank used to be our main checking account and our largest savings account. Our largest savings is now at Advantis Credit Union and our main checking is at Bank of the Cascades. We also changed our card processer from KeyBank to SwipeNow. We have a safety deposit box at KeyBank.
 
Mel and Debbie are thinking that we could close KeyBank. We have a line of credit with them but it is would only be enough money to operate KBOO for about 22 days. If we drop the accounts we would save money on the fees that keep them open, and also by not having to monitor them (internal controls, controllership, audit, etc.)
 
Finance Committee recommends closing the KeyBank accounts.
 
Finance recommends getting a new safety deposit box at BOTC to hold our Articles of Incorporation and whatever else is in the box.
 
Update on Inventory Project
Our Bliss Sequoia Insurance broker met with the staff today to talk about inventory in regards to insurance coverage. This inventory may be teamed with an inventory for financial records.
 
Debbie and Mel will give Finance an update on the status of the inventory project to take to the Board meeting.
 
Membership Drive Goals
Finance Committee recommends continuing a membership drive through the scheduled drive period if it has reached the drive goal early, especially when we are operating in a deficit. This would help to increase donations and build our membership.
 
Meeting ended at 8:30pm
 
The March Finance Committee meeting will be March 22nd at 6pm at the station.
 
 
 

 

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Finance Committee Minutes -January 11, 2011

 

Finance Committee Minutes
January 18th, 2011
(minutes approved February 22nd, 2011)
Commitments are italicized.
 
In Attendence
Mel Reslor
Debbie Rabidue
Sun Lee
Azure
Erin Brand
Paula Small
Rolf Semprebon
Kurt Lauer
Bob Crow
Nia Lewis
 
 
Meeting starts at 6:10pm

Check-in/intro

Approve November Meeting Minutes
November minutes are approved.
 
Fiscal Year 2010 Year-End Financial Statements Review
Debbie will send summary for inclusion in the Finance minutes and for Erin to pass on to the rest of the Board.(Below)
 
Financial Summary for 4th Quarter 2010
Debbie Rabidue
Balance Sheet Highlights
  • At the end of the FY, the liquid cash balance is $375,000 of which $200,000 is the operating reserve.
  • Endowment has increased by $6,000 from 1 year ago. We’ve taken $9,556 out as endowment distributions. Overall the endowment gained over $15,000 over the last 12 months.
 
Income Statement Highlights
    Income
  • Membership income is $$11,000 under budget. 
  • Events and Development income is $40,000 under budget. This was the first year for a Development department, so the revenue budget was a guess and ended up being a little too aggressive. However, this revenue source is up over $16,000 from last fiscal YTD, so we have been able to have success with an additional income source.[1]
  • Book & Record Sale was under budget by $2,400. Promotional Sales were over budget by $2,100, due mostly to the new t-shirt logo and high sales at the Blues Fest. 
  • Underwriting and Advertising revenue is $14,000 under budget[2], and $3,400 down from last year. 
  • 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  were under budget $14,000.
  • Newswire service is $9,000 under budget with using AFP3. We expect to add a local use agreement this fiscal year.
  • Equipment Purchases & Broadcast Equipment Maintenance went $7,000 over budget due to an unexpected remote monitor equipment failure at the transmitter.
  • Printing and Postage is currently under budget by $8,900.
  • Bankcard fees & Bank Service Charges are up $8,700 from last year. We changed our main banking to another bank in October 2010, and we changed our credit card processor in January 2011. These switches should help us lower the costs.
Operating Bottom Line
  • Revenues are under budget by $66,000, and down by $99,000 from last year. Membership revenue was down $89,000 from last year and Interest was down $9,000. Expenses are under budget by $13,000, and down by $66,000 from last year. We currently have an operating deficit of $52,000, largely due to unexpected legal expenses and no Spring Sweeps that we budgeted $16,000 for.
 
Auxiliary Spending
  • Auxiliary spending adds $56,000 to the deficit, bringing the net to a $117,000 deficit for management purposes, fiscal YTD. Major AUX spending was $28,000 on the lawsuit, $7,000 on the server and $11,000 on broadcast/engineering improvements and repairs. 
 
Note: The year-end work still needs to be finished. We deferred $24,000 of revenue in FY09 from the Capital Campaign, and spent $11,000 of that in FY10 on the Tie Line. I will move $11,000 into Development revenue. Most, if not all, of the $11,000 we spent were for asset acquisition. So that $11,000 will show up on the Balance Sheet as an asset, thus lowering our deficit to around $
 
 
 
 
 
 
Should we stop taking the endowment distributions and let it gain a higher yield by staying with OCF.
 
 
KBOO will need to file an extension for our Federal 990. If Mark Eklund isn’t able to do this Rolf has offered to. Mark is interested in doing a less labor intensive audit and switching to an annual review. Mel’s next finance research project is looking into the positives and negatives of an audit vs. a review and getting quotes for these.
 
Discussion re: KBOO Employee Retirement Contribution for Calendar Year 2010
The Board needs to make a decision about whether or not we will make a retirement contribution for staff. Not all staff is eligible for retirement contributions. The policy about retirement was updated in 2009, it is policy #26 ‘Employee Benefits’.
 
Paula recaps previous Board discussions about a Staff Bonus, which the board did not vote to approve.
 
Kurt would like to see a cost of living increase for staff wages so that the bonus and retirement aren’t trying to make up a difference.
 
Sun feels that staff would appreciate a cost of living increase but would say no to it in light of the large deficit.
 
If the Board does not approve retirement dispersal, it will be the first time since 2002.
 
Bob says the cost of living increase sounds the most rational.
 
Finance recommends the Board not make retirement dispersals for 2010.
 
Finance will be undertaking a project to research and make recommendations regarding cost of living adjustments for staff for FY2011, definitely for FY2012. Input will be solicited from Board and Staff on this project.
 
Discussion re: FM Korea & SCA Rental
FM Korea is having trouble making payments. They currently pay $875, but will stop paying in February, thus increasing our deficit.
 
 
Review Financial Analysis of the Web Coordinator Position
In summary, the staff would like the Board to fundraise any increase in the Web Coordinator salary. Staff is a bit uncomfortable with paying full salary for a ¾ time position, though some support ¾ time for ¾ pay. Staff would like to see a plan from the Board about how to raise the money for this position and a new work plan. Staff also discussed the need to do a new open hire if the position changes.
 
Staff idea is to have ¾ pay at ¾ time until the mid-year review and then assess what has been accomplished in the web department and revisit if we would like to keep it at ¾ time.
 
Erin supports having the Board fundraise for the position, $10,000 would be enough to increase to ¾ pay. She also sees having a better, more usable website as a way to generate more listeners and donations.
 
Bob asks about outsourcing web maintenance. Discussion about how having someone in house is necessary to train staff, programmers and volunteers on how to use the site.
 
Finance recommends temporarily increasing the Web Coordinator position to ¾ pay for 30 hours a week for 90 days. After 90 days the position at ¾ time will be reviewed along with the Mid-Year Review to assess what has been accomplished.
 
The Board will need to clarify how a work plan and a review will happen, as well as a plan for fundraising for this position and other future projects that increase the quality of what KBOO has to offer.
 
Debbie also wants to remind everyone that this is an opportunity to remind everyone about our depleting cash balances.
 
From Staff Meeting
Our live remote equipment is currently insured off-site but not in transit. To insure it for a full year is $191.
 
KBOO has been looking into accident insurance for volunteers would be similar to Worker’s Comp. for employees. The cost for a year is $350 for up to 100 volunteers at any one event or time.
Debbie will ask if the amount would increase if a lesser of number of volunteers at any one event would decrease the premium.
 
1st Quarter FY 2011 Financial Statements Review
Debbie will send financial summary to include in the minutes.(Below)
 
Financial Summary for 1st Quarter FY2011
Debbie Rabidue
 
Balance Sheet Highlights
  • Available fund balance is $413,000 of which $200,000 is the operating reserve.
  • The liability balance consists of Accounts Payable paid in January and the Capital Campaign money that will be allocated to FY10 revenue during year end prep.
  • We moved our main banking to BOTC in October, and moved the credit card processing to another merchant in January. So there were transfers of funds from KeyBank into BOTC. We are holding a $10,000 balance at Key Bank for the time being. Finance will need to discuss the option of closing the Key Bank accounts.
 
Income Statement Highlights
    Income
  • Membership income is $33,000 over budget. This is mainly from successful direct mail programs. The Fall Pledge was at budget.
  • Events and Development income is close to budget. 
  • Underwriting and Advertising revenue is close to budget. 
  • SCA Contract income: to be discussed
 
   Expenses
  • Employee expenses  are under budget due to upcoming step increases that will bring wages back to budget.
  • Premiums appear to be over budget, but is not. The annual budget for Premiums is $9,500.
  • Bankcard fees & Bank Service Charges should start seeing savings as we changed banks and merchant providers.
 
Operating Bottom Line
  • Revenues are over budget by $33,000, mainly due to Memberships. Expenses are under budget by $12,000, and down by $18,000 from last year. We currently have an operating surplus of $55,000.
 
Auxiliary Spending
  • Auxiliary spending was $32,000 in the 1st Qtr of FY11, bringing the net to a $19,000 surplus for management purposes, fiscal YTD. Major AUX spending is $9,500 on strategic planning and , $15,000 on broadcast/engineering improvements and repairs. 
 
 
Debbie will research what to do with the KeyBank account, the potential $50,000 line of credit, and how to eliminate merchant fees.
 
Future Finance topic to discuss if we want to keep collecting the OCF endowment distributions.
 
Discussion re: Treasurer’s Report
Debbie and Mel will discuss further Mel handling all deposits and credit card transactions, and free up Debbie to work on other projects.
 
Brief Discussion about February Meeting
 
 
Meeting ends at 9:28pm
 
Next Finance Meeting will be February 15th, 6pm at KBOO

[1] Development & Event Income is $29,490 and the Development & Event Expenses are $4,600, with a net of $24,890 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. 

 

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