[Notes from elsewhere will be consolidated here, esp. those currently at https://pacificaradiowatch.home.blog/auditor-s-reports/auditor-s-reports-from-fy2005/ – these are well worth reading. Other contents will be added. Also tables & graphs, even in colour.]
Contents
A. Explanatory
Overview [incl. list of auditors]
1. Restatements
2.‘Substantial doubt about continuing as a going concern’
3. Auditor’s modified opinion (qualified opinion, also termed a scope limitation; adverse opinion; disclaimer of opinion)
4. The FY2017 & FY2018 financial statements, in not carrying an auditor’s opinion, cannot be relied upon by anyone, not least potential grantors & donors: their material accuracy, & so being a fair representation of Pacifica’s financial position, was NOT vouched for by the auditors
5. How does recent total income compare with the past?
6. How has recent listener support & donations measured up?
7. When did Pacifica last have audited net assets at the balance sheet date?
8. When did Pacifica last have audited net current assets at the balance sheet date, also called working capital or liquidity?
9. $625 235 deficit (audited) of the aggregated permanently-restricted donor endowment fund: what does this mean? what are the implications for directors, past & present?
10. Sundry adjustments to accumulated funds[jargon for the aggregation of the annual net incomes & losses, the cumulative ‘bottom-line’] (the result of non-FY specific restatements)
B. Historical (obvious time series)
1. Annual net income/loss (also as restated, & including the 6 sundry adjustments to accumulated funds)
. Net assets/liabilities at year-end – so also showing total assets & total liabilities
. Net current assets/liabilities (working capital, liquidity) at year-end – so also showing total current assets & total current liabilities
. Annual income
. Annual listener support & donations
. Annual grants from the Corporation for Public Broadcasting (consolidated & per station – & PNO, FY1993 only) [FY1993-FY2007, FY2010, & FY2011; inexplicably, four reports (FY2008 & FY2009, PMB Helin Donovan; FY2012 & FY2013, Armanino) were allowed by the PNB Audit Cttee & the PNB to be opaque, failing to disclose the sums received from the CPB]
. Annual expenses (consolidated & per station, PNO, & PRA)
. Station annual expenses (gross, & net of distorting amounts)
. Personnel expenses (consolidated & per station, PNO, & PRA)
. Consultants expense (consolidated & per station, PNO, & PRA)
. Ratio of station personnel expenses to non-personnel expenses (gross, & net of distorting amounts)
. Number of employees per calendar year (per IRS Form 990)
. Annual payments to individuals (per IRS Form 990)
~
The auditors (by financial year, year-end 30Sep)
1994-99 Getz, Krycler & Jakubovits (Sherman Oaks, CA)
2000 …. T Curtis & Company (Greenbelt, MD)
2001-07 Ross Wisdom (NYC)
2008-09 PMB Helin Donovan (San Francisco)
2010-11 Ross Wisdom
2012-14 Armanino (San Ramon, CA, then San Francisco)
2015-16 Regalia & Associates (Danville, CA)
2017+ .. Rogers & Company (Vienna, VA)
~
. Annual net income/loss (also as restated, & including the 6 sundry adjustments to accumulated funds)
FY1993 thru FY2016: 24 fiscal-years; 8 annual net incomes (FY1993, 1995, 2000, 2002, 2003, 2004, 2005, 2006); 16 annual losses.
The two subsequent net income statements created by NETA, which the auditors found themselves unable to offer an opinion upon, so remaining unaudited statements: FY2017, loss of $86 640 ; FY2018, loss of $7 819.
The FY2019 net income statement created by NETA, used by auditors Rogers & Co. in their 11Aug2020 preparation of the 2018 IRS Form 990 (pp. 1 & 13 of the PDF), currently being audited: loss of $570 570.
So, for the 27-year run, thru to 30Sep2019: 8 annual net incomes; 19 annual losses. The last annual net income was FY2006; so the last 13 fiscal-years have all been losses. The 13yrs totalling $12 874 679 (as restated), so $990 360 a year. ~$12.875m. A sum exceeding x~1.68 the largest net assets Pacifica ever had at year-end, the $7 684 012 at 30Sep2006. Yes, in this dissolution, Pacifica stopped having net assets around about the start of Dec2012; since then, so for over eight years, it’s effectively had nothing, so running on fumes, running up more & more debt with each & every breath. That 13-year period consists in 3 432 director-months (22 directors x 12mths x 13yrs). Hand on heart, are there even 3 director-months, so less than 0.1% of the collective time, when it can be demonstrated that a director did all that was necessary to reduce costs & raise revenues? Is there even one occasion when a director brought a motion to the Board addressing that task & also followed it thru, ensuring it was implemented?
[other obvious questions re these 13yrs, so since 1Oct2006: (1) to what extent did the directors ensure, & did the executive directors exercise executive direction, in imposing the grip of adequate centralised control over reducing expenses & raising revenues, esp. with each successive year failing as a new loss?; & (2) did the directors & the ED’s allow (a) total expenses, & (b) personnel & consultants expenses, to rise in this period?]
. FY . . . . . . Net income/(loss), $
1993 . . . . . . . . . . 369 551
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