. . . Vasily Vereshchagin, The Apotheosis of War, 1871 . . .
Another scandal is that no-one these days knows of VV. And it’s remarkable that this painting isn’t as pervasive in everyday imagery as the blue & yellow flag – it hasn’t even been recycled by political cartoonists, especially surprising in the case of Steve Bell, a prized victim of his employer, the UK’s Guardian. (The Guardian: the rag that gleefully led the smear that Corbyn et al. were racist towards Jews, rather than opposed to Jewish-Israeli supremacism, the reality of subjugating Palestinians.)
VV made this when he was 29, in the year of the Paris commune. Bigger than a coffin, on its frame he inscribed his dedication: “to all great conquerors, past, present and to come”. Found so shocking, it was banned in Russia, &, when it toured, German & Austrian troops were forbidden from seeing it.
WBAI ran an emergency fundraiser last Friday, 28July. 9am thru midnight. 15hrs. It was, frankly, astonishing. And we’re not referring to the refrain of a Nina Simone song heard that evening at the start of director Shawn’s own brought-forward programme, Midnight Ravers:
The website simply said this was an emergency fundraiser. It gave no financial information – you know, numbers, those handy things for indicating the scale of it all. Oh no. Just certain bills happen to be unpaid. Best not alarm the natives; appear as in full control; business as usual. Ok, throw in the ‘emergency’ word, stir up some enthusiasm, but play it deadpan, don’t be alarmist, keep the contrived ambivalence well & truly under wraps. WBAI, a bit hard up – what’s new. Simply something to get over. Mustn’t appear as Peter who cried wolf.
So station manager Berthold played mum. Not a word on the website. Not a word. No statement from ‘the leader’, an appeal, trying to rally the listeners, members, & staff. And not a word on-air – not even Berthold speaking to the listeners, making a pitch every hour, on the hour. Zilch. Ostrich on Atlantic Avenue.
No fundraising goal was either stated or mentioned – by anyone.
And no info on how things went. As of Monday evening, nothing on the website. How much was pledged? How much cash has cleared?
What does this all mean? Who hasn’t been paid? Who’s not going to get paid? Whose hours have been cut? Whose hours are going to get cut? Who’s been fired? Who’s going to get fired? What arrangement has been made with the studio/office landlord? The tower landlord? The call-centre?
Let’s be real: it’s beyond all this. There’s only one Q: is there any way to not become a repeater station, fed by KPFA & Moe Thomas?
(And removing the WBAI staff allows the breakers to win a new referendum, giving them the Pacifica constitution they themselves write.)
~
Why has it come to this? It’s obvious from the public record that the so-called anti-breakers never effectively challenged the breakers’ mantra of station self-sufficiency, their misrepresentation of what’s in the articles of incorporation (as fully explained, numerous times, on this blog – the latest, https://pacificaradiowatch.home.blog/2023/05/21/10-topics/). And the anti-breakers have proven themselves unable to even think about a vision for Pacifica – let alone present a formulation, or even a sketch. No. They’ve been devoid of ideas. All they’ve managed to come up with this year is being nice to the breakers: Julie Clueless, chair of the Pacifica board, the blob at the top, helping them take over KPFK governance, & she now sits back as they go offense, driving on to oust Michael Novick, the unpaid, temporary station manager. (Enter Ali Lexa, stage left.)
So no surprise the anti-breakers have shown themselves incapable of devising a network development plan, a plan applying the principle of optimising total marginal gain, turning an aggregation of stations into a unitary network – this principle requiring a spatialrevolution in the treatment of money, in the relationship between where funds are raised & where they are spent: making some of the allocation rules those of positive discrimination, mitigating the histories of each station, not least their initial endowment, & focusing on the future by allocating funds where it’s decided they’re most needed. But then they’re so incompetent they can’t even get to meetings, can’t even reach quorum at the PNB Strategic Planning Cttee.
In practice, collusion with the breakers.
Reducing Pacifica to what?
A pile of desiccated skulls.
~
[AI was not used in the making of this post. And neither were any animals harmed or killed. (Has to be said coz WordPress now gives an AI option, including choosing a tone for the composition.)]
~
[Kagarlitsky: “On July 26, the FSB detained Boris Kagarlitsky, a well-known left-wing theorist, activist and commentator. Following his arrest, he was transferred [1 000km, over 600 miles] from his home city of Moscow to a pre-trial detention center in Syktyvkar, the Komi Republic, where he will be held until late September (at least). Kagarlitsky has been charged with ‘justifying terrorism’ and could face up to seven years in prison. His colleagues from the YouTube channel Rabkor [111k subscribers – eat yer heart out, Pacifica!] have also been interrogated in Moscow, Yekaterinburg and Penza, and their apartments searched.” Jailed under Brezhnev, arrested under Yeltsin, now repressed under Putin.
[. . . UPDATE: September turned into December, but the two-day military trial went relatively well for Kagarlitsky: instead of the five-years jail wanted by the prosecutor, he got a fine & a two-year editorial ban. This obviously upset the state managers, so they went to the Military Court of Appeal, & after a hearing on 13Feb2024 the judges came up with the right sentence, five years, plus the two-year ban. (Three days later, Navalny died in jail.) Now it was Boris’ turn to appeal, but 5June saw the Russia Supreme Court’s Military Chamber unmoved. His lawyers plan to appeal to the Praesidium of the Supreme Court & even to the Constitutional Court. He’s 65.
The spokesperson of the Boris Kagarlitsky International Solidarity Campaign is Suzi Weissman. A longstanding broadcaster at KPFK, ‘Beneath the Surface’, she’s also a breaker, & has transplanted her weekly show as ‘Jacobin Radio’, on Apple, etc., with the same music & continuity phrases (sic), but with no mention of either KPFK or Pacifica (sic). Yet again, Pacifica management, intellectual property, & the absence of control.
. . . test launch of the KPFK repeater station, the Ojai Valley, Ventura County, the whole event supervised by local hip-hop sensation, MC False Decorum, PNB Vice-Chair Queen Liz III . . .
~
[UPDATE: with a 22-day drive report given to the W26Oct KPFK Finance Cttee, the original calculations arising from the 12-day report had to be revised (see below). So the numerical portion of the post’s title had to be changed to, ‘current annualised rate of loss-making is $1.3m $1.260m, up $219k $143k on the August FY2023 budget … total revenue now down 20% 13%, covering only 80% 87% of personnel costs, 51% 56% of operating costs, & 40% 43% of total costs’.]
[FINAL UPDATE: after the drive ended, an oral report – all of one sentence – was given to the W9Nov KPFK Finance Cttee by GM Michael Novick. The calculations, revised again. So the final post title: ‘current annualised rate of loss-making is $1.260m $1.282m [show it as $1.28m], up $143k $165k on the August FY2023 budget … total revenue now down 13% 15%, covering only 87% 85% of personnel costs, 56% 55% of operating costs, & 43% 42% of total costs’. The original URL remains.]
~
UPDATE (not to be secreted away): The Case of the Entitlement & Arrogance of Cde Chair & Vice-Chair Eileen ‘honestly, with Trump running that year, 2016, I completely forgot I joined the June LSB’Rosin: . . .
(Speaking of chairs, & so of seats, it hasn’t been mentioned in public, but current PNB Chair, ‘Julie Clueless’ Hewitt (WPFW listener-delegate), completes her 6yrs as a delegate in December – the day isn’t obvious coz WPFW didn’t have a delegates’ assembly that mth, so presumably it’s the 31st; by-law Art. 4, Sec. 8 simply says “[a] Delegate’s term of office, shall be three (3) years, beginning in December” – https://pacifica.org/indexed_bylaws/art4sec8.html. It’s irrelevant that, in virtue of being a delegate, she was seated as a LSB member the following mth, on 11Jan2017 – https://kpftx.org/pacalendar/showfile.php?id=4762&type=minutes.) … (Incidently, PNB Finance Cttee Chair James Sagurton (WBAI listener-delegate) terms out in a month or so, 7Dec – https://glib.com/lsb_attendance_ninth_wbai_lsb.html(no minutes or audio at kpftx.org).) . . .
Which brings us to Julie’s co-conspirator, both locally & nationally, Eileen ‘I know I’m the Audit Chair, but as I don’t like the resolution I’ve torn it up & blocked it being sent to the PNB – and yes, I do think I’m a democrat’ Rosin & her dirty lil secret: Eileen Rosin, who is also the Vice-Chair of the WPFW LSB, termed out 22June2022, having been seated 22June2016, & winning in the elections of 2016 & 2019. So far she has improperly – illegally – attended at least 17 Pacifica meetings: PNB Audit Cttee (3 open, 2 closed), WPFW LSB (4 open, 3 closed), WPFW Finance Cttee (3 open), WPFW Financial Stability Cttee (attended at least 1 meeting; one of the five members; Cttee’s existence is missing from kpftx.org), WPFW Communication Standards & Enforcement Cttee (attended at least 1 meeting; one of the three members; Cttee’s existence is missing from kpftx.org), other WPFW LSB cttees (x no.) … Minutes of 22June2016 WPFW LSB, item V: “Motion: Tony Norman[.] I move that we fill two seats where we had resignations advertised. Then wait 30 days to fill the seats for the resignations during this meeting. No objections[.] New LSB members are: Cliff Smith[,] Eileen Rosin.” Eileen was then elected twice as a listener-delegate: 2016, came in 5-6th, the 2nd “count”, certified by True Ballot, Inc., 20Oct2016 (p. 13 of the PDF), with NES Serpe’s final report, if ever written, not publicly available; & 2019, 7th, the 13th “round”, certified 15Nov2019 (NES Peñaloza’s final report, pp. 1 & 6-7; pp. 3 & 8-9 of the PDF). And yes, minutes/audios/suggested agendas across June2016-Oct2022 show her unbroken attendance – also that the above Mr Norman currently sits next to her on the WPFW Finance Cttee … Eileen ‘honestly, with Trump running that year, 2016, I completely forgot I joined the June LSB’ Rosin …https://kpftx.org/pacalendar/showfile.php?id=4410&type=minutes …https://elections.pacifica.org/wordpress/wp-content/uploads/2016/10/0731601-certification-letter-6.pdf… https://mega.nz/file/8IN3RbbI#N2AmLp-WzCIcBaXDcMJ7EJWlEZaNp2YHio7_KHymuCc(Ms P’s report) … https://kpftx.org/archive.php … Last, the unambiguous by-law wording: “[a] Delegate may serve a maximum of two consecutive 3-year terms […] If a Delegate serves as elected or alternate for an incomplete year, those month/s of service must be counted towards the six years cumulative limit” (Art. 4, Sec. 8; all emphases added – especially the heavy-dutied “must“) – https://pacifica.org/indexed_bylaws/art4sec8.html . . . Harby, the carrier pigeon, is readying to fly to Cde First Secretary Vasilieva with the news . . .
~
. . . back to KPFK’s trajectory . . .
The station is currently in fund-drive. The Oct biggie. Michael Novick, hitherto Local Station Board Chair, became General Manager Novick effective M26Sep, replacing Moe Thomas, Magister Pacifica Peripatetica. Two days later he gave drive details to the 28Sep KPFK Finance Cttee: it starts in the dark, at the very beginning of Tu4Oct, & “the plan is probably to be in fund-drive for, urgh, the remainder of the month; ostensibly talking about a $350 000 goal for that, argh, which, unless we can really improve our performance, then the on-air fund-drive [goal] is un-unlikely to be met” (27:58, from 24:38). 350k? Well, thru M31Oct, so 28days, 350k ÷ 28 = $12 500 pledged per day – https://kpftx.org/archives/pnb/kpfkfin/220928/kpfkfin220928a.mp3.
So how’s it going? Unlike recent drives, such as last Dec, there’s currently no progress thermometer on the station’s homepage, https://www.kpfk.org/, or hidden away on the website. And there have been few public details, the latest seems to be thru day #12:
“[D]aily average, so far in this drive, for a week, is $3 600”
KK (2:29:18), Su16Oct KPFK LSB – https://kpftx.org/archives/pnb/kpfk/221016/kpfk221016a.mp3 … presumably thru Sa15Oct, so 12days … so, assume actual pledged 12×3500=pledged $42k (sic), @.78=$32760 cash, @.91=$38220 cash – so doing well if it’s $35k gross proceeds
So falling, slightly, not materially – but ~⅓ below the budgeted $5 333. Oh. But what about that phrase of Kim’s, the drive “making $3 500 a day”? So cash, not pledges? Well, one may think that – as have some minions at PacificaWatch – but there’s killer evidence that shows the talk about drives, whenever it’s ambiguous, it’s almost always about pledges, not the $$$ generated.
Kim herself made it plain during her presentation to the 24Aug KPFK Finance Cttee: “we will start with Listener Support […] The total of umm, revenue, according to that, is $790 245”, & she gave the “that” as 162 drive-days, at $5 333 a day. Well, $5333 x 162 = $863 946 … & 790245 ÷ 863946 = 0.9146, so that’s the fulfilment rate, ~91%. (Not that anyone asked why she hadn’t mentioned the rate, & what it was, & how it compared with, say, the last 10 drives, or how it can be justified – why not 90%? Or 85%? Or 80%? Or the stable 78% from May & Oct 2021? Given the public evidence, in the below calculations it’s prudent to use 78%, & not the budgeted 91% which was neither explicitly disclosed nor even mentioned – and certainly with no attempt made to justify this jump to 91%, justified with the presentation of an evidenced argument.)
Note, & to anticipate details of the FY2023 station budget disclosed below, applying a 78% fulfilment rate restates the budgeted loss as $1 233 525, an increase of $116 367, so +10.4% ≃ +10%. (That shortfall in human terms? $116k leaves unpaid 1.5 full-time workers @$80k pa.)
… the restatement: total revenue = listener support & donations + other sources = $ (5333 x 162 x 0.78) + 312000 = 673878 + 312000 = $985 878 … net loss = total revenue − total expenses = $ 985878 − 2219403 = −$1 233 525
[UPDATE: at the W26Oct KPFK Finance Cttee, GM Novick reported on the drive: “I think [cra ckle: incredibly, WordPress won’t accept that word on its own within square brackets without a space!] the 22nd day of the fund-drive [well, the previous day was that; …] Through today, upto a point today, we’ve raised about $92 000 […] raising about $4 200 a day on average” (52:05; $4200 x 22 = $92 400) – https://kpftx.org/archives/pnb/kpfkfin/221026/kpfkfin221026a.mp3. The below calculations (that used $3 600 as the daily pledge level) have been revised, treating the $92k as pledged thru Tu25Oct. This amounts to an attenuation of the variance by ~$76k: $(4200 − 3600) pledged daily x 0.78 fulfilment rate x 162 days = $75 816. So, for example, the increase of the budgeted annualised rate of loss-making becomes $ 218981 − 75816 = $143 165.]
[FINAL UPDATE: as mentioned, at the W9Nov KPFK Finance Cttee, GM Novick gave a one-sentence oral report on the Oct drive, including “we raised a little over a hundred-and-thirty-three thousand [dollars]” (36:40). So, Tu4Oct-Sa5Nov (ended 1800 PDT), ~33days, & ~$133k pledged, so ~$4 030 pledged per day, & x 0.78 fulfilment rate ≃ $3 144 cash per day, & $103 740 total cash from the drive (133000 x 0.78). What he didn’t say – and no-one pointed it out – is that the daily pledged rate dropped at some point during the last third of the drive, from “about $4 200” to ~$4 030: diminishing returns: with the audience punch-drunk, the drive had reached saturation point. https://kpftx.org/archives/pnb/kpfkfin/221109/kpfkfin221109a.mp3. Remember, the draft FY2023 station budget uses a daily pledged rate of $5 333 – that’s ~32.3% more than achieved for this Oct-early Nov 33day drive.
And what does the $103 740 buy you? For the period of the drive, personnel costs were ~95.9% of that, leaving $4 288 to pay everything else – giving the station a daily budget of $130 (sic), & that’s the during-drive situation, remember. (Daily expenses? $6 081 – with vendors being $4 708 … see the budget below.) So worth repeating: 33 days of drive = personnel costs (for those 33 days) + $130 from each of those 33 days towards paying all the other expenses incurred on those days . . . with KPFK then dropping thru the trap-door intothe out-of-drive situation: total revenue of $855 a day.
One reason why the PNB focusing on selling a building – be it that housing KPFK/PRA or KPFA or KPFT – is missing the point.
All based on the FY2023 station budget, presented by then Treasurer Kim ‘(sigh) yes, Bella (sigh)’ Kaufman to the Su28Aug KPFK LSB:
total revenue……………………………………… $1 102 245
expenses – operating ……….. $1 718 535
expenses – Central Services … $500 868
total expenses ……………………………………. $2 219 403
total loss ……………………………………………. $1 117 158
Note: the Central Services figure is according to two old formulae (adopted by the PNB for FY2015 only (sic) – but used, improperly, since 1Oct2015 to this very day, so 7yrs & counting), not the one adopted (presumably for the PNO only), with immediate effect, by the directors at the Th18Feb2021 PNB: “Motion: ‘That the central services formula be based on 15% of total revenue of the stations calculated quarterly. All revenue is to be included in the calculations; however the cost of air conditioning for Pacifica Radio Archives shall be deducted from KPFK’s revenue, and the tower, studio and office rent for all stations shall be deducted from their revenue.’ There being no objections, the motion was approved.” (unpaginated; page 3 of the PDF) – https://kpftx.org/archives/pnb/pnb210218/pnb210218_7017_minutes.pdf.
(A full note is at the end of this post.)
~
So what?
The 7sec read:
KPFK current annualised rate of loss-making is $1 336 139 ≃ $1.3m . . . an extra $218 981 on the FY2023 budget figure$1 260 323 ≃$1.26m . . . an extra $143 165 on the FY2023 budget figure$1 281 805 ≃ $1.28m . . . an extra $164 647 on the FY2023 budget figure
Working [updated immediately below]: annual loss per FY2023 budget (presented to Su28Aug KPFK LSB) + reduction in fund-drive revenue (evidenced by 12days of current drive) = $1117158 + (((5333 − 3600) x 0.78) 162) = 1117158 + ((1733 x 0.78) 162) = 1117158 + (1351.74 x 162) = 1117158 + 218981 = $1 336 139 ≃ $1.3m
[UPDATE: per the 22-day report, with daily pledge level of $4 200, not $3 600 (a ~16.7% increase): KPFK current annualised rate of loss-making is $1 260 323 ≃ $1.26m . . . an extra $143 165 on the FY2023 budget figure…
Working: annual loss per FY2023 budget (presented to Su28Aug KPFK LSB) + reduction in fund-drive revenue (evidenced by 22days of current drive) = $1117158 + (((5333 − 4200) x 0.78) 162) = 1117158 + ((1133 x 0.78) 162) = 1117158 + (883.74 x 162) = 1117158 + 143165 = $1 260 323 ≃ $1.26m. The change is $ 218981 − 143165 = $75 816]
[FINAL UPDATE: per the after-drive report, with daily pledge level of $4 030: KPFK current annualised rate of loss-making is $1 281 805 ≃ $1.28m . . . an extra $164 647 on the FY2023 budget figure…
Working: annual loss per FY2023 budget (presented to Su28Aug KPFK LSB) + reduction in fund-drive revenue (using GM Novick’s after-drive report) = $1117158 + (((5333 − 4030) x 0.78) 162) = 1117158 + ((1303 x 0.78) 162) = 1117158 + (1016.34 x 162) = 1117158 + 164647 = $1 281 805 ≃ $1.28m. The change is $ 218981 − 164647 = $54 334]
The 13sec read, supplementary info:
[UPDATE: compared with the drop in total revenue per the 12-day drive report, that indicated by the 22-day report is a third less: 1 − (143165 ÷ 218981) = 0.346] [FINAL UPDATE: the report after the drive shows a quarter less, 0.248]
[UPDATE:per the 22-day report,total revenue down 13%… (1102245 − 143165) ÷ 1102245 = 959080 ÷ 1102245 ≃ 0.870] [FINAL UPDATE: per the after-drive report,total revenue down 15%… (1102245 − 164647) ÷ 1102245 = 937598 ÷ 1102245 ≃ 0.850]
• total revenueonly covers 80% of personnel costsonly covers 87% of personnel costsonly covers 85% of personnel costs
… 883264 ÷ 1100000 ≃ 0.802 … (yes, the revised budgeted total revenue doesn’t even cover the single class-item of personnel costs)
[UPDATE: per the 22-day report, total revenue only covers 87% of personnel costs … 959080 ÷ 1100000 ≃ 0.871 … (yes, the revised budgeted total revenue doesn’t even cover the single class-item of personnel costs)] [FINAL UPDATE: per the after-drive report, total revenue only covers 85% of personnel costs … 937598 ÷ 1100000 ≃ 0.852]
• total revenueonly covers 63% of ‘core’ costsonly covers 69% of ‘core’ costsonly covers 67% of ‘core’ costs
… 883264 ÷ 1392000 ≃ 0.634 … (‘core’ = personnel + utilities + tower rent + drive costs = $90k + 14k + 2k + 10k pm = $116k pm = $1 392 000 pa … notes: (a) this excludes the mthly utilities arrearages, keeping Mr Switchman at bay; & (b) no contract for earthquake insurance – a station responsibility – since c. Dec2021 (or praps Oct2021), per the KPFK July2022 mthly net income statement, line 68; also $0 accrued)
[UPDATE: per the 22-day report, total revenue only covers 69% of ‘core’ costs … 959080 ÷ 1392000 ≃ 0.688] [FINAL UPDATE: per the after-drive report, total revenue only covers 67% of ‘core’ costs … 937598 ÷ 1392000 ≃ 0.673]
• total revenue only covers 51% of operating costsonly covers 56% of operating costsonly covers 54.6% of operating costs– so almost half of these debts arising in FY2023 will be unpaid at year-end
… 883264 ÷ 1718535 ≃ 0.513
[UPDATE: per the 22-day report, total revenue only covers 56% of operating costs … 959080 ÷ 1718535 ≃ 0.558] [FINAL UPDATE: per the after-drive report, total revenue only covers 54.6% of operating costs …
in other words, new debt to vendors budgeted to be created in FY2023 is an incredible $780 937.
Another reason why the PNB focusing on selling a building – be it that housing KPFK/PRA or KPFA or KPFT – is missing the point.
• total revenueonly covers 40% of total costsonly covers 43% of total costsonly covers 42% of total costs
… 883264 ÷ 2219403 ≃ 0.3979
[UPDATE: per the 22-day report, total revenue only covers 43% of total costs … 959080 ÷ 2219403 ≃ 0.4321] [FINAL UPDATE: per the after-drive report, total revenue only covers 42% of total costs … 937598 ÷ 2219403 ≃ 0.4224]
• even if the fulfilment rate is 91% (91.47), not 78%, total revenue only covers 43% of total costs, so +3pcp (43.21 − 39.79 = 3.42)only covers 47% of total costs, so +4pcp(47.20 − 43.21 = 3.99)only covers 46% of total costs, so +4pcp (46.06 − 42.24 = 3.82)
… extra cash from a 91% rate = $3600 (0.91 – 0.78) = 3600 x 0.13 = $468 pd, & x 162 = $75 816 pa … hardly worth re-doing the calculation, but rather than write-up the post on Eileen ‘honestly, with Trump running that year, 2016, I completely forgot I joined the June LSB’ Rosin, & given we are where we are … (883264 + 75816) ÷ 2219403 = 959080 ÷ 2219403 ≃ 0.4321
… the 91% rate: 790245 ÷ 863946 = 0.91469
[UPDATE: per the 22-day report, even if the fulfilment rate is 91% (91.47), not 78%, total revenue only covers 47% of total costs, so +4pcp(47.20 − 43.21 = 3.99) … extra cash from a 91% rate = $4200 (0.91 – 0.78) = 4200 x 0.13 = $546 pd, & x 162 = $88 452 pa … ⇒ (959080 + 88452) ÷ 2219403 = 1047532 ÷ 2219403 ≃ 0.47198] [FINAL UPDATE: per the after-drive report, even if the fulfilment rate is 91% (91.47), not 78%, total revenue only covers 46% of total costs, so +4pcp(46.06 − 42.24 = 3.82) … extra cash from a 91% rate = $4030 (0.91 – 0.78) = 4030 x 0.13 = $523.90 pd, & x 162 = $84 871.80 pa … ⇒ (937598 + 84872) ÷ 2219403 = 1022470 ÷ 2219403 ≃ 0.4606]
• even in eternal drive, total revenue only covers 60% of total costsonly covers 68% of total costsonly covers 66% of total costs
… per budget, revenue = drive + others ⇒ 1102245 = 790245 + others ⇒ others = $312 000 … revenue in eternal drive = $(365 (3600 x 0.78)) + 312000 = 1024920 + 312000 = $1 336 920 … & ÷ 2219403 ≃ 0.6023 (on top of the infeasibility, this also assumes no extra fundraising costs)
[UPDATE: per the 22-day report, even in eternal drive, total revenue only covers 68% of total costs … revenue in eternal drive = $(365 (4200 x 0.78)) + 312000 = 1195740 + 312000 = $1 507 740 … & ÷ 2219403 ≃ 0.6793] [FINAL UPDATE: per the after-drive report, this becomes 66%: $(365 (4030 x 0.78)) + 312000 = 1147341 + 312000 = $1 459 341 … & ÷ 2219403 ≃ 0.6575]
• current rate of loss-making is 6.0% more than the rate at 6Nov2021 estimated by PacificaWatchis the same as the rate at 6Nov2021 estimated by PacificaWatch is 1.6% more than the rate at 6Nov2021 estimated by PacificaWatch
per the 12-day report, current rate of loss-making is $1 336 139 pa … at 6Nov2021, it was estimated as $1 261 397 pa … the difference, +$74 742 pa, +5.925% – so despite all the cuts over the last year (~25%), materially scaling back the operation, the station is effectively generating losses at the same rate: ~$1.3m a year. But this is happening to, & by, a radically different structural organism, in the double-sense of being structured in the present with the orientation of structuring itself into the future: since Nov2021, the ratio of total costs to total revenue has cranked up from 1.75 to 2.51 (2936208 ÷ 1674811 compared with 2219403 ÷ 883264): the station was slashed, but also butchered was its capacity to generate revenue. Hence the material relative deterioration. So although the rate of incurring costs has fallen 24.4% ($2 936 208 → $2 219 403), that of revenue-generation has collapsed by 47.3% ($1 674 811 → $883 264): almost twice the rate (x1.94) … Pacifica’s lack of strategic governance (by the directors sleepwalkers) has allowed a lack of strategic management (by their available instrument: ED Brazon & then ED Wells): in the parlance of the management of personnelhuman resources variable capital (the scientific concept), KPFK lacked a safeguarding policy – and all associated with it are suffering the consequences, not least the stressed-out GM Michael Novick … sleepwalking into the chainsaw … https://pacificaradiowatch.home.blog/2021/11/19/today-kpfk-is-losing-money-at-a-rate-of-3500-dollars-a-day-105k-a-month-1-point-26m-a-year-as-per-the-docs-publicly-why-does-no-one-recognise-the-scale-the-urgency-qm/
[UPDATE: per the 22-day report, current rate of loss-making is $1 260 323 pa … at 6Nov2021, it was estimated as $1 261 397 pa … the difference, −$1 074 pa, −0.085%, so well below −1%. . . so despite all the cuts over the last year (~25%), materially scaling back the operation, the station is generating losses at the same rate: $1.26m a year. So, the size of the annual loss is the same – ‘loss’ is an accounting term, but understood dynamically, & socially, it’s the creation of new debt – experienced in an inter-group & interpersonal way as extra pressure from creditors. (Hence Markisha’s current distress – of which more anon.) Since Nov2021, the ratio of total costs to total revenue has cranked up to 2.31 (2219403 ÷ 959080) … so although the rate of incurring costs has fallen 24.4% ($2 936 208 → $2 219 403), that of revenue-generation has collapsed by 42.7% ($1 674 811 → $959 080): the difference between the rates increasing x1.75.
[FINAL UPDATE: per the after-drive report, current rate of loss-making is $1 281 805 pa … at 6Nov2021, it was estimated as $1 261 397 pa … so despite all the measures taken, the rate has increased very slightly, by $21 482 pa, +1.617%.The ratio of total costs to total revenue has cranked up to 2.37 (2219403 ÷ 937598) … so although the rate of incurring costs has fallen 24.4% ($2 936 208 → $2 219 403), that of revenue-generation has collapsed by 44.0% ($1 674 811 → $937 598): the difference between the rates increasing x1.80.]
~
At 7+13secs, 20secs, that read is a ⅕ of the time Markisha took when she debuted as Pacifica’s NBM CHC, at the 25Oct PNB Finance Cttee:
after the removal of the last wisp of cotton wool, Markisha was led into the room by Steph, to make her first public appearance, the Tu25Oct PNB Finance Cttee (54:48). She spoke for exactly 100secs, 100secs, so Pacifica members are really getting their money’s worth (55:21-57:01). She said two things, and two things only, but they spoke volumes: she doesn’t have a report, & in fact she isn’t the NBM but the CHC, the Creditor Hotline Clerk. CHC Markisha. Apparently she can’t do any national, or local, business managing coz she spends all day getting calls from creditors, angry calls – all day long. Markisha really needs to tell her union steward she has to file a misrepresentation claim against her employer – and for displaying the truth, yet again, of the Peter Principle. https://kpftx.org/archives/pnb/finance/221025/finance221025a.mp3
~
CHC Markisha came in to fill a new post – the chief financial officer position has been left vacant. But does a corporation incorporated in California have to have a CFO? It may be advisable, a good idea, but is it mandatory, say by law? Yes:
“312. (a) A corporation shall have (1) a chairperson of the board, who may be given the title of chair of the board, chairperson of the board, chairman of the board, or chairwoman of the board, or a president or both, (2) a secretary, (3) a chief financial officer, and (4) such other officers with such titles and duties as shall be stated in the bylaws or determined by the board and as may be necessary to enable it to sign instruments and share certificates.”
Seems a bit odd to ask, but if a corp doesn’t have someone with that job title (form), or doesn’t have someone doing that work (substance), does the law recognise someone as the CFO? Yes:
“5213. (a) A corporation shall have (1) a chair of the board, who may be given the title chair, chairperson, chairman, chairwoman, chair of the board, chairperson of the board, chairman of the board, or chairwoman of the board, or a president or both, (2) a secretary, (3) a treasurer or a chief financial officer or both, and (4) any other officers with any titles and duties as shall be stated in the bylaws or determined by the board and as may be necessary to enable it to sign instruments.”
This is in the specific law applied to non-profit public benefit corps, such as Pacifica. In the same passage, it has something else to say about this figure, the “treasurer”:
“Unless otherwise specified in the articles or the bylaws, if there is no chief financial officer, the treasurer is the chief financial officer of the corporation.”
So PNB Finance Chair James Sagurton (WBAI listener-delegate) has been the CFO, per California law, since Th22Sep, when NETA left?
This is the rub: no. Pacifica by-law Article 8, Section 3:
“[…] The chair of the Finance Committee shall be a Director who may be referred to as the Board ‘Treasurer’. However, the Board Treasurer shall not be an officer of the Foundation. The Foundation’s Chief Financial Officer shall be an employee of the Foundation and shall not be the Board Treasurer. […]”
So Mr Sagurton can’t be Pacifica’s CFO, in the eyes of Pacifica law, & hence in California law. Which . . .
. . . means . . .
. . . that given having a CFO is legally mandatory for Pacifica, & Pacifica doesn’t have one – by either of the two legal routes – this means that Pacifica is breaking state law, yes?
And remember, in California law it is the directors who, ultimately, are responsible for protecting Pacifica’s assets, responsible for the organisation being in good order, re its financial management system, & otherwise. It’s because it’s not easy to achieve this standard of performance that directors authorise the hiring of expertise, like certified public accountants, & other suitably qualified & experienced accounts & internal audit staff. People who know what they’re doing. Effectively, protecting the directors from the consequences of their ignorance. But . . . if the directors think they can get by on their own, or they run out of perceived options (not imagining that KPFA’s ~31 full-time equivalents can be reduced in order to fund a CPA) . . . Well, that’s a different matter. With likely different results. Such as personal liability. When, for example, deficit endowment accounts, of hundreds of thousands of dollars, come before the court.
~
On the 21st-century funding of Central Services: is the centre/periphery relationship nominal or real, in both senses?
The current funding policy was adopted by the 18Feb2021 PNB. Even after 20mths (sic) this has never been implemented, & not even mentioned in public (except by PacificaWatch minions) – the new reality has never been recognised by any member on any of a station Finance Cttee, an LSB, the PNB Finance Cttee, or the PNB. Yes, the PNB Finance Cttee repeatedly recommended to the PNB that they adopt budgets using a known false CS figure, & the directors sleepwalkers duly complied, like sheep, amnesiac sheep.
“National Office Shared Services Formula: To meet the budgeted expenses of the National Office not covered by other sources of income in fiscal year 2015, Central Services shall be a fixed cost set at 15% of the prior 4 years’ (2010-2013) average annual listener support. For WBAI, Central Services shall be set at 8% of that average[.]”
“[P]assed[:] 9 Yes, 7 No, 1 Abstention; Y – Edwards-Tiekert, Wilkinson; Brazon; Casenave, Reiter; Roberts; Brown, Diaz, Norman […] N – Kobren; Argueta, Kaufman, Reyes; Lamb; Birden; Gray […] Abs. – Fuentes-Roman”
“To meet the budgeted expenses of the Pacifica Radio Archive [sic] not covered by other sources of income in fiscal year 2015, PRA Assessments shall be a fixed cost set at 2.0% of the prior 4 years’ (2010-2013) average annual listener support for each station.”
Comparison of those FY2015 charges with the audited data . . . the FY2012 auditor’s report is dated 6Sep2013, so those figures could have been used. But the FY2013 auditor’s report is dated 18Mar2015, almost the end of the 2nd quarter. It seems this wasn’t used to make adjustments (see doc distributed to 25Feb2017 KPFA LSB, p. 3 – http://pacifica.org/documents/financial/kpfa_2017/AccountingGlossary.pdf). Anyway, the audited figures for FY2010 thru FY2013, of ‘Listener Support and Donations’ (LSD), generate station figures that are within 0.915% ≃ 1% (14474 ÷ 1580998) of the annual charges applied from 1Oct2014 to this very day. Note that this is achieved using inconsistent data: the FY2013 LSD totals are different in being net of “premium incentives”, of the material sum of $1 221 694 (sic), 11.2% of the gross – https://pacifica.org/finance/audit_2013.pdf (note 12, p. 16, being p. 18 of the PDF). I wonder if anyone even noticed, let alone complained?
Re charging, how much of a distortion results from still using the LSD 4yr-average of FY2010-FY2013? What’s been the drift, how big’s the disparity? So at the end of the table the latest audited LSD figures, FY2021, are given, & then contrasted with the average now corrected as ‘all-gross’ (making KPFA $2 862 995, KPFK $3 026 252, KPFT $966 340, WPFW $1 231 257, WBAI $2 557 101, total $10 643 945). However, the problem here is that starting FY2017, station annual gross LSD has never been disclosed – not least because none of the 22 directors, & the other 10 on the PNB Audit Cttee, made a sound in public when the new auditors, Rogers & Co., presented their report only disclosing the Pacifica total. (Everyone was also silent when, astonishingly, in the same report, “current liabilities” disappeared – unlike “current assets”. Probably no-one noticed . . . ships in the night . . .) (Also, thru FY2012, LSD had been given as gross in the two net income statements, with unit-level disclosure of “Premiums and shipping (for donations)” amongst expenses. But effective FY2013, this changed to net: self-injurious because it showed to the world a number ~$1m less than that handed over by the supporters of Pacifica. The saving grace is that for FY2013-FY2016, disclosure of the unit-level expense persisted, in a Note: #12 for the first two years, #6 for the last two. However, for FY2017-FY2021, the only disclosure is the Pacifica total – see Note 2: Revenue Recognition. So given that in the past only ~2% of premiums cost was incurred by PNO & PRA, below it’s assumed stations consumed the whole FY2021 expense.) Note, the percentages would be even lower if adjusted for inflation (+30.8% re from the mid-point, Sep2011, to Sep2022, per Consumer Price Index, so not one tailored to the radio industry – https://www.bls.gov/data/inflation_calculator.htm):
KPFA
KPFK
KPFT
WPFW
WBAI
total
LSD 4yr-total (FY2010-FY2013)
11 211 455
11 467 968
3 821 548
4 764 469
10 088 647
41 354 087
LSD 4yr-average
2 802 864
2 866 992
955 387
1 191 117
2 522 162
10 338 522
15% (8% WBAI)
420 430
430 049
143 308
178 668
201 773
1 374 228
2%
56 057
57 340
19 108
23 822
50 443
206 770
total
476 487
487 389
162 416
202 490
252 216
1 580 998
actual PNO (15%; 8% WBAI)
415 992
441 948
142 608
183 684
202 680
1 386 912
actual PRA (2%)
55 464
58 920
19 020
24 492
50 664
208 560
actual annual total charge
471 456
500 868
161 628
208 176
253 344
1 595 472
actual: excess/(saving)
(5031)
13 479
(788)
5 686
1 128
14 474
FY2021 compared w/ ‘all-gross’ 4yr-av.:
new 4yr-av., ‘all-gross’ (FY2010-FY2013)
2 862 995
3 026 252
966 340
1 231 257
2 557 101
10 643 945
FY2021 LSD (net)
2 409 334
1 457 370
463 706
1 311 369
1 131 507
6 773 286
FY2021 LSD (net) as % of new 4yr-av.
84.2
48.2
48.0
106.5
44.2
63.6
FY2021 LSD (gross)
these
station
figures
not
disclosed
7 228 103
FY2021 LSD (gross) as % of new 4yr-av.
–
–
–
–
–
67.9
. . . today’s CS charges spring from the early months of the Tea Party: fair? . . .
These Central Services policies were solely for FY2015. There has been no mention in the last 5yrs that the PNB extended their life. It seems these policies have been applied improperly since 1Oct2015 to this very day, for all of 7yrs & counting.
Prior to this, eons ago, perhaps from the first-third of 2004, the policies seemed to have been 17% & 2.5%: “[t]he first two motions from the Finance Committee concern the formula by which Central Services are assessed. For the past decade, all stations have been charged 17% of their Listener Support to cover National Office Expenses, and 2.5% of Listener Support to cover Pacifica Radio Archive Expenses. (A few years ago, WBAI’s National Office charge was lowered to 7%[.])” (Brian Edwards-Tiekert, PNB Finance Cttee Chair & KPFA staff-delegate – 13Nov2014 PNB minutes, p. 6).
So it seems it is these early 2004 policies that should have been applied from 1Oct2015 thru 18Feb2021.
An ancestor of this has been spotted in the minutes of the 9Jan2004 PNB Finance Cttee, with talk of “20%” being deducted from the stations, 17% to PNO & 3% to PRA, making that the extant policy. (Presumably of LSD rather than total revenue.) It’s also heartening to know that conflict was alive & well, with the Big Guys trying to squeeze the Lil Guy, & give him a shave: “the Policies and Procedures manual that Lonnie [Hicks, the CFO] and Dan [Coughlin, the ED] are asking us to approve shows lowering that to 2.5%” (unpag., p. 2 of the PDF) – https://kpftx.org/archives/pnb/finance/040109/finance040109_1844_minutes.pdf. Nice. Don’t y’just luv these NGO’s?
To summarise the chronology of Central Services policy, as voted by the directors (& what was implemented appearing in brackets):
• upto the first-third of 2004: 17% & 3%, presumably of ‘Listener Support and Donations’, re PNO & PRA respectively;
• from the first-third of 2004: 17% (7% for WBAI, from c. 2011/2012 to 30Sep2014) & 2.5% (2% for KPFK – guess the air-conditioning argument held sway even then) of LSD;
• FY2015: 15% (8% for WBAI) & 2% of the 4yr-average of “listener support”, FY2010-FY2013;
• from 1Oct2015: by default, the continuation of the 2004-30Sep2014 policy (but this never happened: instead, the FY2015 tariff kept ticking); &
• from 19Feb2021: 15% of “total revenue of the stations calculated quarterly” (sic), with some station-specific deductions, this described as “the central services formula” but being 15% it presumably only refers to the PNO charge (policy never implemented: the ticking just carried on ticking)
• [UPDATE … from 19May2023: again presumably only for the PNO charge, “the central services formula shall be 15% of total station revenue (all inclusive) calculated every month on a six[-]month rolling average, starting nine months before the current month, with the exception of any station suffering acute financial distress (as determined by the PNB), for which central services shall be 8%, for a period of no more than one year, with the remaining 7% to be accrued.” (policy never implemented, as of early Oct2023: the ticking just carried on ticking)]
And you need to be careful about changes in terminology. The auditor’s reports this century always refer to “Central services”; as did NETA in their monthly net income statements. But, in some of the Pacifica docs & discussions, ‘Central Services’ is also used as a synonym for the PNO, sometimes ambiguously.
One can end by returning to the title of this note, the two senses of the centre/periphery relationship being nominal or real: does money come thru?; is the centre king, or is the periphery fiefdoms? Who’s in charge? Who’s in control? The directors, or the station managers? Or is no-one in control, just flying blind? It’s why a focus of this blog is on the money dimension of the politics of control – placing boring accountancy centre stage as possibly the supreme technique for controlling an organisation. By contrast, in the conditions that are Pacifica, is it rational for the directors, in practice, to place their ultimate responsibility – and legal liability – in the care of the managers, to trust the managers to act in the directors’ best interests? Especially now with the directors having given up the ghost on financial management?
Despite Pacifica’s 5 x Oct fund-drives, with the cash draining away, will it be payroll deadline 25Nov? or 9Dec? Either way, 6Jan really does look off-limits, with $52 235.23 due 31Dec, at the new rate of 9.25% on the $2 258 821 principal, to FJC – or will it have already sold on the debt to the Marty & Dorothy Silverman Foundation? The die is cast. And the court number is . . .
[UPDATE: the interest rate rose to 10% effective Th3Nov. The charge falling due 31Dec = ((2258821 x 0.0925 x 33) ÷ 365) + ((2258821 x 0.1 x 59)÷ 365) = 18890.550 + 36512.449 = $55 402.99.]
. . .
[UPDATE: new policy adopted Th18May2023 for the PNO charge alone . . .
[Even though on 19Feb2021 the directors sleepwalkers adopted a new CS policy that was never implemented, they tried again on 18May2023. This time, a rolling average; no exclusions, but helping out a station for 12mths only. Note, heed this semantic warning sign: the resolution is confusing coz it uses the phrase ‘central services’ quite differently from its usage in the discourse on Pacifica’s finances: the resolution used it to denote solely the PNO charge, whereas in both the monthly net income statements & the audited financial statements it also denotes the PRA charge. No surprise this formulation passed thru as a ship in the night.
[The chronology: recommended by Tu11Apr2023 PNB Finance Cttee; adopted by Th18May2023 PNB.
[At Cttee, moved by Beth ‘Queen Liz III’ Gunten (sleepwalker & KPFK listener-delegate); no amendments offered; passed 6-3 (no names disclosed in the minutes – sic . . . the business ethics of the mafia).
[The resolution: “The NFC recommends that the PNB pass the following motion, ‘That the central services formula shall be 15% of total station revenue (all inclusive) calculated every month on a six[-]month rolling average, starting nine months before the current month, with the exception of any station suffering acute financial distress (as determined by the PNB), for which central services shall be 8%, for a period of no more than one year, with the remaining 7% to be accrued.’” – https://kpftx.org/archives/pnb//230411/230411_8367_minutes.pdf(p. 3)
[But, re the 6-3 vote, we have the audiofile: in support were James ‘I may formally be an anti-breaker, but by also piling in on KPFK, even without a plan, I protect KPFA’ McFadden (sleepwalker & KPFA listener-delegate), Kamau ‘I know Pacifica is out of financial control, but I won’t rock the boat’ Harris (WPFW Treasurer & staff-delegate), Julie Clueless (WPFW listener-member, & squatter on the PNB & WPFW LSB), Queen Liz III, R Paul Martin (WBAI Treasurer & staff-delegate), & Chair-Squatter James Sagurton (WBAI listener-member, & squatter on the PNB & WBAI LSB); & against were Sharon ‘if you think I’m nasty, you should see the other Berkeley hillbillies’ Adams (KPFA Treasurer & listener-member; was elected in the delayed 2018 pseudo-election, results certified 18Mar2019, as a listener-delegate), Teresa ‘I’m so vicious I can slice you with my eyes, & as I’m so rich I shall mock you for being so poor‘ Allen (sleepwalker & KPFT listener-delegate), & Sean ‘I think I’m so funny, & I’ll talk down to you, especially if you have a Japanese name’ McPherson (KPFT Treasurer & listener-delegate) – ‘b-file’, 1:07:57, https://kpftx.org/archives/pnb/finance/230411/finance230411b.mp3.
[At 18May PNB, adopted 15 – 1 (against was Fred ‘foul-mouthed nasty’ Dodsworth, KPFA listener-delegate) – 1 (abstainer was Marianne ‘anodyne’ Martinez, KPFT listener-delegate). No minutes at https://kpftx.org; but the audiofile discloses those in support – item is 16:26-35:40, https://kpftx.org/archives/pnb/pnb230518/pnb230518a.mp3
[As the formula uses a 10-mth block, it’s reasonable to say the policy became effective not the next day but with the June2023 charge. Obviously, just as with the Feb2021 policy, it’s been ignored by management – ED Steph ‘The Breeze’, Creditor Hotline Clerk Markisha, & the station managers – and the PNB & all 5 local station boards. So not implemented in June2023, or July2023, or Aug2023, or Sep2023, . . .
[How does this policy work? Clearer than you think. It’s a 10-mth block, arranged from the back as 6-3-1, shuffling forward every month: so the last month drops off, replaced by the month ahead, as the munching caterpillar just munches on. And there’s a 3mth gap, ~100days, to give Markisha enough time to get unit info to generate the monthly net income statements. (Info: it would be misleading to deem it data.)
[As example, here are the station PNO charges for June2023 & July2023:
July 2023 PNO charge = ((revenues of Oct2022 + Nov2022 + Dec2022 + Jan2023 + Feb2023 + Mar2023) ÷ 6) x 0.15
The change = ((revenue Mar2023 – revenue Sep2022) ÷ 6) x 0.15 = a fortieth of the increment (sic) … As Trump said of Rubio …
It hardly seems worth it – in either direction: (1) if the new month isn’t fund-drive but the one dropping off was, then the 6-mth total may go down say $150k, & (÷ 6) x 0.15 = the charge goes down by $3 750 (sic); & (2) if a Golden Corpse arrives, a bequest, then the station gets hit, say ($1m ÷ 6) x 0.15 = $25k extra, straight away.
[Can anyone seriously believe that those on the PNB Finance Cttee & especially the PNB thought this thru?
[. . . this is what sleepwalking looks like . . .]
~~~
[Working notes on CS policy:
PNB Finance Cttee minutes: 2004: [… then do 2004 PNB minutes …]
21May: so PRA charge not 3% (as per 9Jan2004 PNB FinC minutes, as mentioned in the post) but 2.5% (but KPFK’s is 2%): “A discussion was held on […] the formula for funding Central Services. [new para.] Next we discussed the situation at Pacifica Radio Archives, which are funded by a levy of 2.5% of listener donations except for KFPK which pays 2%.” (unpag., p. 1 of PDF; hereafter, -/1) – https://kpftx.org/archives/pnb/finance/040521/finance040521_1848_minutes.pdf (no audio recording at kpftx.org – the 2004 ones of this Cttee are later in the year, starting with the 29Oct meet)
29Oct:
(1) “Lonnie described five examples of monetary ‘transfers’ between local stations and the National Office” (but, oddly, fails to mention ‘inter-divisional reversible transfers’, what in the station chauvinistic proprietary ideology, regrettably the common sense for quite a few, is termed ‘loans’);
(2) schedule of actual Fall Drives (KPFA, “22 days @ $44,400 per day for a total of $976.9K”; KPFK, “13 days @ $81,500 per day for a total of $1,060K”, so x~20 (re 5%) that of 2022/early 2023; WBAI, “to-date: 10 days @ $37,400 per day for a total of $374.0 K”) – all emphases added; &
(3) “PROPOSAL FOR $25-50 MILLION CREDIT LINE After a discussion of Ambrose Lane’s proposal for a $25-50 million line of credit, Henry Cooper agreed to draft a motion for the next meeting that would ask Ambrose to explain the purpose and motivation of his proposal.” (sic; emphases added) – and peeps were upset by how he almost single-handedly signed the 2005 ESRT 15-year contract behind the backs of his fellow directors &, somewhat less surprisingly, blindsiding the WBAI GM & WBAI LSB. https://kpftx.org/archives/pnb/finance/041029/finance041029_1834_minutes.pdf
PacificaWatch 