Finance Committee

The Finance Committee provides recommendations and feedback to the board on budgeting, accounting and finance. We review monthly and annual reporting. 

The finance committee meets on the third Tuesday of the month at 4:30 pm at KBOO radio station.

Please e-mail Adin, Treasurer of the Board, with any questions.

2009 FY

The 2009 fiscal year runs from Oct 1st 2008 to Sept 30th 2009. 

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

Finance Committee Minutes - September 15, 2009

KBOO Finance Committee Minutes

Meeting Date:          Tuesday, September 15, 2009

Meeting Time:         6 pm

Meeting Location:  Old Wives’ Tale<?xml:namespace prefix = o />

 

Attending: Bob, Rolf, Steve, Mel, Debbie Chris Merrick (interim Station Manager)

& Paula

 

Absent: Arthur, Genevieve

 

Visiting: Nicole Andrae, Anthony Petchel, Nia Lewis, Judy Fiestal

 

1. Check-in/intro

- There was a check-in and introduction of all meeting attendees.

 

2. FY09 Staff Bonus

-       Judy presented information regarding the staff bonus line item on the FY ’09 budget. Also wanted the FC to consider bonus on FY ’10 proposed budget.

 

-       Discussion about staff salaries, COLAs & definition of “bonus”.

 

-       Vote taken to recommend full bonus amount budgeted ($15,000), an adjusted bonus amount or eliminate bonus amount from FY ’09 budget.

 

-       Bob asked the FC to examine staff pay structure for FY ’10.

 

Motion passed to recommend an adjusted amount of $10,000 staff bonus to Board. Finance Committee will begin reviewing staff pay structure at first meeting of FY ’10 (October 2009).

 

3. Investment/Re-investment Presentation

Debbie presented an overview of investment vehicles used in the last year, as a result of market conditions. <?xml:namespace prefix = st1 />August 25, 2009 was maturity date of CD and only ten (10) days available to make re-investment decision.

Per Anthony, investment strategies were safety measures and to make sure all funds FDIC-insured. The FDIC limit increased to $250,000 and insurance extended through 2013.

Discussions among attendees regarding viable re-investment strategies, other than CD. CD closed out to short-term account, until FC discussion and recommendation.

FC agreed to table decision/further discussion until first meeting in October 2009.

4. FY09 Staff Survey

The FC Staff Survey originally facilitated by Genevieve, before being reviewed by Paula for discussion among and presentation to the FC.

Bob asked how staff felt about surveys. Paula explained that staff viewed this survey separately from the Jim Ayala project and was for use by the FC.

Paula explained that the summaries were mostly for informational purposes; a few factors staff considered were no longer applicable, such as balancing the budget and maintaining staffing levels, as of the meeting’s date.

Comments and results of survey distributed to all attendees and briefly explained.

5. FY10 Budget Presentation

Debbie presented new Budget Narrative summary, which highlights key areas as requested by several Board members. The FC will continue to review financials by line item. The FC acknowledged Budget Narrative made review easier.

Paid memberships increased in the last month and a half, perhaps due to upcoming election.

New Development role a risky proposition for KBOO, but could yield significant benefits.

Debbie presented revenue items highlighted on Budget Narrative, then asked the FC to review revenue items on operating budget line-by-line.

Anthony recommend a more conservative budget for interest (line #34) to $10,000, as interest rates lowered in the last year. He suggested 2%. Debbie to recalculate line item at 2% rate instead.

Debbie to double-check with Andrew Geller (Membership Director) re: KBOO’s GiveGuide status.

Debbie to keep the FC apprised of major giving funds and will most likely treat them similar to grants.

Anthony asked about differences between “Unsolicited”, “Contributions” and “Major Giving”. Both Anthony and Rolf suggested possible renaming, to better communicate types of funds and purposes of funds.

Debbie is looking to streamline chart of accounts with Linda Barkus.

Debbie asked the FC to consider the effectiveness of promotional spending.

Anthony thought strategic planning consultant should be considered. Debbie asked the FC to recommend Board consider that option.

Chris explained replacing the AP newswire with a French service, especially regarding the current/renewing contract options and costs.

The FC discussed the need for Arbitron. Chris explained that KBOO could use \ estimates based on historical data retrieved from Arbitron and postpone renewing Arbitron for FY10. He also said staff recommended postponing Arbitron for a year.

The FC will review progress with Andrew Geller during traditional mid-year review.

Debbie and Chris said that staff rescinded offer of 1.5% pay cut. However, staff agreed to an increase in prescription co-pay of medical insurance benefit and addition of a vision rider, which resulted in some savings on the budget.

The FC approved recommending the operating budget to Board.

Debbie presented FY10 auxiliary budget to the FC. The FC to review FY10 auxiliary budget in October.

She included some potential legal fees due to continuing status of lawsuit per attorney.

Chris discussed emergency status for server replacement funds, as quotes received within the same range. Explained that previous repairs made with shortcuts, but proposals included solid changes. Also, no backup to temporary server option currently in use at station.

The FC approved recommending the Board approve the funds for the server repair/replacement estimate, as well as potential legal fees.

6. July/Aug Financials (Management Report)

The FC agreed to table review and discussion of June, July, August & September financials until October, in the interest of time.

**The Finance Committee welcomed Anthony back as a Committee member.**

Summary of Recommendations to the Board for FY10

 

-       Review of staff wage structure

 

-       Payment of FY09 staff bonus at a percentage equal to the deficit percentage, which was under the budgeted deficit. Amount recommended: $10,000.

 

-       Approval of FY10 Operating Budget

 

-       Consideration of a strategic planning consultant, in conjunction with Auxiliary Budget review (pending amount on aux. budget of $20,000).

Post-meeting note: Debbie would like the FC to review potential revenue, in coordination with staff salary review.

Next Finance Committee Meeting: Tuesday, October 20th - 6 pm at Old Wives’.

 

2010 FY

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

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

Finance Committee Minutes - October 20, 2009

Finance<?xml:namespace prefix = o />

October 20, 2009

 

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

Absent: Genevieve, Anthony

Visiting: Robert Barncord, Nia Lewis

 

 

1)      Check in

2)      Investment/Reinvestment: 

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

b)      Debbie will transfer funds.

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

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

4)      FY10 Auxiliary budget

a)      Arthur presented auxiliary budget draft from staff.

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

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

5)      Year-end financials

a)      Presented by Debbie.

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

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

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

e)      Debbie will post financials and minutes to web.

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

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

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

8)      Future Meeting: Pay Structure, Alternative Wealth

Finance Committee Minutes - November 17, 2009

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Finance

November 17, 2009

 

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

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

Visiting: Sean Ongley, Sun Lee

 

 

1)      Check in.

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

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

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

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

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

7)      TABLE  Membership Analysis.

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

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

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

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

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

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

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

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

Finance Committee Minutes - December 15, 2009

 

 

Finance<?xml:namespace prefix = o />

December 15, 2009

 

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

Absent: Steve, Rolf

Visiting: Alicia Olsen

 

 

1)      Check in.

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

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

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

5)      Strategic Planning: 

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

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

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

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

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

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

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

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

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

14)  TABLE Alternative currency

15)  Next Finance meeting is January 19th . 

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

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Finance Committee December 2009.doc26 KB

Finance Committee Minutes - January 19, 2010

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

 

 

Meeting starts 6:07pm

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Present:

Arthur Davis

Rolf Semprebon

Mel Reslor

Erin Brand

Nia Lewis

Paula Small

 

Absent:

Debbie Rabidue  (sick)

Anthony Petchel

Steve Weiland

 

Visiting:

Andrew Geller

Scott Forrester

 

 

Check in

 

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

 

Membership AnalysisAndrew presents

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Review December Meeting Minutes

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

 

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

 

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

 

Possible restaurant night considered

 

Minutes approved

 

Update on December Action Items

 

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

 

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

 

Debbie still working on credit card security item

 

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

 

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

 

Finance Department Update – tabled until next month

 

December Financial Statements Review – Arthur presents

 

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

 

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

 

Newswire service is currently $800 under budget

 

Professional services is still over budget but has slowed

 

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

 

Underwriting and advertising revenue was $5,800 under budget

 

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

 

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

 

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

 

 

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

 

RACC Grant Discussion #2 – Arthur presents

 

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

 

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

 

Sean Ongley Proposal – table until February

 

A Look at the FDIC- Mel presents

 

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

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

 

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

 

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

 

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

 



Commitments

 

 

Debbie - add yields to balance sheet

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

-         check with John about server expenses

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

 

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

 

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

 

 

 

Meeting adjourned at 8:05pm

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Minutes - Jan 2010.doc34.5 KB

Finance Committee Minutes - April 20, 2010

 

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

Finance Committee Minutes - August 17, 2010

 

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

Finance Committee Minutes - February 16, 2010

 

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

Finance Committee Minutes - July 20, 2010

 

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

Finance Committee Minutes - June 22, 2010

 

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

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

Finance Committee Minutes - March 16, 2010

 

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

Finance Committee Minutes - May 18, 2010

 

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

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

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.
no

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. 

 

no

2012 FY

The 2012 fiscal year runs from Oct 1st 2011 to Sept 30th 2012. 

* 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.

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2011 Finance Committee Minutes - 10-18

Finance Committee Minutes (approved November 15, 2011)

October 18th 2011

 

In Attendance

Rolf Semprebon

Erin Brand

Mel Reslor

Kurt Lauer

Debbie Rabidue

 

Meeting starts at 7:35pm

 

September Meeting Minutes

Minutes are approved.

Finance Reports

Tabled until November meeting.

Finance Department Update

New computer in finance office and is working well and fast. Debbie is learning how to use the updated version of Excel. Currently it is cumbersome to get to the Peachtree archives, Debbie will talk to Tom about fixing this issue. Also an issue with creating reports using Crystal.

Debbie has ordered the 2012 Peachtree version and will reinstall Peachtree using the newer version. The 2012 version comes with fixed asset software that can manage 200 assets. Debbie thinks we can make the fixed asset software work without purchasing anything else.

Mel has volunteered to work on the inventory project, he will work on formatting the information that has been collected.

All but $1,000 of the Bank of the Cascades Money Market was transferred to the BOTC checking account to save money on service fees. The interest rates were so low on the money market that the fees on that account did not make sense. We earn a small amount of interest on our checking account there.

Staffing Work Group Update

Jenka, Judy Fiestal, Bill Michtom, Debbie and Erin Brand are on a work group to consider staffing levels and needs in light of the 2012 budget and the strategic plan. They hope to have a proposal to the Board by the December Board meeting. Research will be done about other stations, as well as gathering work plans from current KBOO staff in regards to the strategic plan.

Meeting ends at 8:00pm

Next Finance Meeting will be November 15th, 6pm at KBOO

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2011 Finance Committee Minutes - 11-15

Finance Committee Minutes

Tuesday, November 15, 2011

(approved December 15, 2011)

6:10 pm – 8:23 pm

Present: Rolf Semprebon, Mel Reslor, Andrew Geller, Debbie Rabidue (by phone), Paula Small

Excused Absences: Erin Brand, Alex Roberts, Kurt Lauer

The Finance Committee members present nominated Erin B. as new Chair of the Finance Committee.

In the event that Erin B. declined the nomination, the Finance Committee members present nominated Kurt to be the Chair.

October Meeting Minutes

The Committee approved the October minutes.

Action item: Paula to post the approved minutes to the KBOO website, under the Finance Committee webpage.

Proforma FYE11 Financials Review

Debbie working on year-end prep for FY11, to get to Kern & Thompson in December; she’ll work with them to get adjustments done and adjusted financials to the Finance Committee.

She stressed that the Committee will need to REALLY keep an eye on cash balance. It’s currently at $101,000.

Andrew & Debbie said that the Membership & Finance were pretty tied closely.

Action Item: On behalf of the Finance Committee, Debbie will work with staff to do more research on the Chehalis CP & on the legal costs associated, including reimbursement and possible collection of reimbursement.

October Financials Review

Andrew provided a summary on the Fall Membership Drive 2011.

Per Andrew, if we hit ~90% fulfillment, as we’ve done often during the past 5 years, then we’ll have a cash shortfall from the Fall Membership Drive of approx. $4,000.

Historically, KBOO’s calculated fulfillment based on the % of pledges paid against, but doesn’t include dollars received versus dollars pledged.

New first-time donors still at a low level.

Andrew perceived that web pledges higher at ~15%, instead of 10%.

There was a general discussion about historical fulfillment rates.

At the request of the Committee, after the meeting, Andrew provided a snapshot of the trends in membership drive fulfillment rates (see end of minutes).

Winter Membership Drive 2012 is going to be a long drive, a little over 2 weeks. But, the Spring Membership Drive 2012 will be less than 10 days.

It’s a chance to see if the Winter Membership Drive is a better time for members to give. Over the last few Winter Drives, there has been more membership giving than during Springtime.

Andrew will look at an electronic Oregon Cultural Trust add-on to his year-end letter to members, to hopefully inspire & encourage more year-end giving.

Staffing Needs Workgroup Update

Debbie e-mailed a summary of the temporary staffing cuts and financial effects, in advance of the meeting.

She also updated the Committee on the Staffing Needs Workgroup progress.

Paula mentioned the use of interns, as a possible solution to meeting some needs in the Strategic Plan. She discussed internship options, based on other local non-profits. The other Committee members were interested in exploring those options.

Action item: Paula will research intern options.

Action item: Debbie will relay the recommendation (below) & concerns raised at the meeting to Erin B., who will share that information to the Workgroup, on behalf of the Finance Committee.

Finance Committee recommendation to the Board re: Development Director role:

If the Board chooses to conduct an open hire for the role of Development Director, then the Board can direct the staff to initiate the open hire process by the end of November 2011.


Update on Switching Accounts and Results in Savings

Mel updated the Committee on the switching of accounts & effects.

Most of the money market funds at Bank of the Cascades (BoTC) switched to the checking account at BoTC. The switch would offset account fees. The savings in the account fees offset would be greater than the interest earned, due to low market interest rates.

Mel reported that for October, KBOO Foundation saved over $50, which included offset of fees.

He included a report outlining the savings (see end of minutes).

Interest rate was 0.15% in the checking account compared to 0.10% in the savings account.

Now paying 12 cents for each ACH item, used to be 10 cents. Adds ~$34/mth, due to increased ACH activity. It’s a result of increased membership EFTs.

BOTC charged an FDIC assessment of $20.95 fee. We’ll research options to possibly offset that fee.

Review of OCF & KBOO's Fund

Mel suggested that the Committee look at possible investment options next month. He said it was a good idea & good practice for the Committee to keep options in mind.

Finance Committee Responsibilities & Recruitment

Paula sent an e-mail to Committee members re: recruitment ideas & examples of Committee responsibilities. She mentioned that we always discuss making the Committee more robust, to decrease member burnout and increase knowledge sharing & perspectives.

Mel recommended that Paula draft ~25 – 40 words to use in recruiting new Finance Committee members, to include in the December bulletin.

Action item: Paula will e-mail draft for bulletin to Committee members, before e-mailing to Sun.

There was a general discussion about recruitment.

Action item (ALL): Brainstorm “ideal” Finance Committee members; further discussion in December. Review the e-mail Paula sent.

Andrew reminded everyone that first & foremost, potential Finance Committee members must be KBOO Foundation members.

“Move Your Money” and KBOO

Mel wanted to volunteer with the “Move Your Money” movement, but also thought it would be great to spotlight KBOO’s “Move Your Money” effort: we moved most of our funds to Advantis Credit Union & remaining funds to Bank of the Cascades (local bank).

The Committee supported the idea. Andrew & Rolf suggested including information from our most recent 990.

Action item: Mel will draft a blurb for the December bulletin about KBOO’s “Move Your Money” leap, which was ahead of “the curve”.

 

Bank of the Cascades (BoTC) Account Fees Comparison (presented by Mel)

 

Bank of the Cascades

    KBOO transferred the bulk of the BOTC $ on 8/26/11 from Money Market to main Checking account.   The reason was that KBOO can save more in lower account fees than the interest earned in the Money Market account.

 

Savings (Money Market Business account)

     balance 10/31/11: $1,022.79

 

Interest for October 2011:  $0.13

     interest rate: 0.15%  (APY earned)

 

 

Main Checking (Non-Profit Interest Checking)

     balance 10/31/11: $135,987.70

 

Interest for October 2011:  $10.32

     interest rate: 0.10%   (APY earned)

 

Service charge for checking account: $347.94

       minus a balance earning  (of .7%):   65.01

                        actual net charge:          282.93

 

-----------------------------------------------------------------------------------

 

If the money was kept in the Savings account,

   the interest earned would have been: $13.67

 

   the interest in the checking account would have been: $1.25

   the balance earnings (fees reduction) would have been: $8.75

a total of $23.67

 

By transferring to the Checking account, the total is: $75.46

       a net of $51.79 for the month of October

 

(this is figured with an average balance of $15,000 in the checking account)

 

 

note:

We are paying 12¢ per ACH item, raised from ten cents over the summer.  With 1,735 EFT's this is $34.70 more per month, $416.40 more per year.

Each deposit costs 40 cents.  Up from 35 cents.  Each item (check) deposited costs 7 to 10 cents each, a total of $24.94 in October.

 

BOTC charges a FDIC assessment fee of $20.95, or $250 a year.

      Advantis does not charge a NCUA fee.

 

 

Trends in Membership Drive Fulfillment Rates (presented by Andrew)

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2011 Finance Committee Minutes - 12-15

Finance Committee Minutes

December 15, 2011

In Attendance
Rolf Semprebon
Erin Brand
Andrew Geller
Debbie Rabidue
Alexander Roberts
Paula Small
Kurt Lauer
Mel Reslor


Meeting starts at 5:05 pm

Staffing Needs Work Group Update

Finance recommendations have cut an additional 14 hours from work group recommendation, with Andrew and Debbie as stand-asides for some.

To go to Board meeting on Monday the 19th
- Temp. for 12 weeks of maternity leave
- Need to start hire for Development position
- Approve money for contract (approx. $2,450)

November Minutes
Approved with edits from Andrew.

Meeting ends at 6:40pm

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2012 Finance Committee Minutes - 01-26

Finance Committee Minutes – January 26th, 2012

Commitments and recommendations in bold italics.

In attendance

Kurt Lauer

Alexander Roberts

Rolf Semprebon

Andrew Geller

Paula Small

Erin Brand

 

Absent

Debbie Rabidue

Mel Reslor

 

Meeting begins 4:15

 

Check In

Financials Review for the 3 months ending December 2011

Revenue is over budget and expenses are under budget.

Paula reminds us that April is the mid-year budget review time

Kurt wonders why dues are so far under budget. Rolf projects that they are not on a 12 month

pay cycle so they haven’t needed to be paid yet.

Paula points to ‘development’ line items and as of the last Board meeting the interim

Development/PR position was eliminated. There will be an open hire for a Development Director

immediately, it will be within the same salary structure. Andrew points out that Board (Paula and

Hadrian) and Volunteer (Nia Lewis) reps have been confirmed, Andrew and Debbie are chairing

the hiring committee. They are still trying to figure out how to announce the pay, probably a

range based on experience.

Personnel and Governance will be working on a job description for Finance/Admin

position once Finance gives them information. We have decided to complete this task by

email. Finance suggests having a consolidated title for the job, not a hyphenated title.

Erin will email out the report done last year about how the Finance and Admin positions

function and relate to one another.


Ads are now enabled on the web site, hopefully we will be able to see this reflected in future

financial statements. Paula suggests asking Justin for a report around mid-year review to

assess the success of online ad clients and how that relates to underwriters.

 

Paula asks about SCA contracts. Andrew reports that he is still getting old contracts to review in

order to get new month to month contracts in place.

 

Financial Summary for 1st Quarter FY2012

(October through December 2011)

Debbie Rabidue

Balance Sheet Highlights

• Available fund balance is $349,500 of which $200,000 is the operating reserve.

• Accounts Payable to be paid in January is $4,664

• The OCF Endowment value is $190,308 and has had a small gain in the 1st quarter of FY12. We

received the semi-annual disbursement in December which was around $4,600.

Income Statement Highlights

Income

• Membership income is $26,000 over budget, showing a real good fiscal start in revenue. The

finance and membership departments still need to reconcile membership revenue through

December and the income will be reclassified within the membership categories. Revised

financials will be sent to the committee.

• Events and Development income is slightly under budget by $1,900. Events during the 1st

quarter included the Greg Palast event and the Grateful Dead Benefit.

• Underwriting and Advertising revenue is under budget by $3,200.

• SCA Contract income was not budgeted for FY12, but we got $1,800 in the 1st 3 months.

Expenses

• Employee expenses Wages & Taxes are slightly under budget due to the temporary budget cuts

that the Board put in place through the end of January. Health insurance is over budget due to

funding an extra set of benefits through the end of January. Debbie needs to report to the

committee a new salary budget worksheet and analysis of the 1st 4 months of FY12 effects on

the overall fiscal budget. The Board approved a final budget for employee costs in December by

department. The Staffing Needs Work Group finalized the dept budgets in January.

• Premiums are within the full year budget of $7,000 and will even out on the actual-to-budget in

the next few months.

• Bankcard fees appear over budget, but this is due to allocating the annual budget evenly

through 12 months and having increased credit card payments during the Fall membership

drive. Debbie can look at making the fees more seasonal in the budget layout.

Operating Bottom Line

• Revenues are over budget by $22,000, due to Memberships. Expenses are under budget by

$9,800, and down by $10,000 from last year. We currently have an operating surplus of

$52,000.

Upcoming financial information:

• We anticipate legal bills of over $6,000 to come in due the appeal on the Chehalis frequency.

• We anticipate wages and taxes to take a sudden increase over budget due to accrued vacation

to be paid out in January.

• The hiring process for the new development position is starting. The hiring committee has

been selected and the job ad will be posted within a week.

• The Winter membership drive will last longer than it traditionally has, so we can review that

in the February financials.

Debbie adds that the CPA filed an extension for our 990 Review, it will be completed in April.

Board Update from Paula

See above discussion on Development Position.

Kurt says Comp time is killing us, it defeats the salary versus hourly difference.

A Board retreat is planned to discuss Staff Management and Board Fundraising. A Board/Staff

retreat will follow.

Membership Update from Andrew

We raised over $14,000 online in December, the best month in a non-membership drive appeal

in history, over half the money was raised in the last 7 days of the year. December 2011 did

30% better than the previous December, it is 4% over the first quarter of last fiscal year.

The Winter Drive starts in a week and the goal is about $100,000. Hopefully the Winter Drive

does well enough to limit the Spring Drive to 7 to 9 days.

Discussion about compiling data and an online ad ‘kit’ by the end of the fiscal year to provide

prospective advertisers with information regarding online traffic, web pledges, listeners, etc.

Paula is going to request more information and a possible meeting time with OCF to get

more information about the socially responsible fund.

Meeting ends at 5:20

Next Finance Meeting will February 21st at 6pm at KBOO.

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2013 FY

2013 FY

The 2013 fiscal year runs from Oct 1st 2012 to Sept 30th 2013. 

* 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.

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2012 Finance Committee Minutes - 11-20

Finance Committee meeting:  11-20-2012

Attendance:

Debbie Rabidue, Erin Brand, Rolf Semprebon, Kurt Lauer, Paula Small, Alex Roberts, Matthew Bristow

Guest: Paychex HR Services: Mitchell Blake

Check In

Paychex HR Services:  Mitchell explains what is included with the monthly fees for the HR services.  This would replace our current price structure for payroll and 401(k).  Set up fees are $1500.  For an additional $500 a  month they would include HR services:

Employee handbook with company policies and full state, federal and local law compliance language.. The handbook is updated quarterly as needed to keep it compliant.

Review and input on job descriptions and employee FSLA classifications.

Employee Assistance Program and S125 with FSA elections.  Employee benefit program, unemployment and WComp administration.

Management and staff training in a hiring/firing, safety, OSHA, etc….

The Finance Committee does not have an official recommendation for the Board, but is impressed with and sees the need for HR professional support.

Internal Controls (Alex):  Alex hands out monthly Internal Controls report and check list.  He explains the procedures he uses for reviewing and verifying deposit activity to the check logs and to the bank statements online.  He explains other internal cash control procedures such as payroll review, checking the online bank activity for disbursements and verifying authorized bills to checks written.

 

Financial Statements (Debbie):  The Finance Committee reviews the FY12, September financial reports. (Financial summary is at end of minutes).  The Finance Committee discusses keeping an eye on development income streams and looking at the amount of the Board designated operating reserve and what financial reserves should be budgeted for a disaster preparedness plan.

Erin:  KBOO Operating Reserve Fund

My understanding is that this fund was established to provide financial security in the event of a major disaster or engineering meltdown at the station. Finance Committee is in the process of evaluating whether the current $200,000 (plus interest gained) is adequate. Here are some additional thoughts on the matter: 

-       This fund may be used in the time between an emergency situation (ie. Extreme equipment failure) and an insurance claim being made and money recouped. Is this fund adequate in this scenario given what we are insured for and the time it takes for insurance money to come our way?

-       KBOO Disaster Plan, do we have a basic idea of what needs to happen in the event of major damage to the station? What staff are necessary during this time? What equipment? Do we have access to a generator and fuel? What size generator would KBOO need to run for a day, a week, etc.? Other things to consider for staff and volunteer needs; food, transportation, portable toilets.

-       Beyond damage to the station itself, what is KBOO’s role in a major citywide or regional disaster? What would it look like for KBOO to provide information and resources to our listeners and web patrons during/after a major flood, earthquake, etc.? What are the absolute essentials for staff and engineering equipment? How far would $200,000 go?

 

There will be no finance meeting in December.

 

Commitments and assignments:

 

·         Finance Committee will work on researching what extra costs would be incurred in the event of a natural disaster (such as generators, etc).  Debbie will see if the staff has a disaster preparedness plan.

·         Matt will work on reviewing the 3 month operating reserve amounts based on historical numbers.  Debbie will send Matt historical financial material for analysis.

·         Debbie will send Kurt and the FC a report on full time and FTE numbers for as many of the past years as she can locate.  FC would like to look at the change in FTE and how many used to operate the station.

 

 

Financial Summary: September 2012

Debbie Rabidue, Finance Coordinator

 

Balance Sheet Highlights

  • Available fund balance is $282,027 of which $200,000 is the operating reserve, which is pretty close to what the cash in the bank was at this time last year.  Budget cuts for FY12 and decreased spending in engineering have helped to stabilize the cash reserves.
  • The OCF Endowment balance is $198,511.  Market activity continues to fluctuate up and down, but overall the endowment is showing better strength by almost $12,000 compared to this time last year.
  • Accounts Receivable is low and represents current collectibles.  The Accounts Payable consists of bills due at the end of September that was paid in early October.  $253 in the over 90 column represents stale dated checks that were voided at fiscal year end.  New checks will be written for these in FY13.
  • The Balance Sheet remains healthy with no significant short or long term liabilities.  Although our fixed assets are greatly depreciated.  The Grant Receivable reflects the money that the Pendleton (KBLU) group still owes us for expenses we paid out on the construction permit/license.

 

Income Statement Highlights

    Income

  • Membership income was close to last year at this time.  This fiscal year, membership income is about $7,400 over what was budgeted.  The Fall Sweepstakes was cancelled. Membership revenue will be reconciled as part of the fiscal year end prep, so the item amounts will change, but the overall revenue should be the same.
  • Events and Development income was $20,000 under budget for FY12.
  • Underwriting and Advertising revenue is close budget, and almost $8,000 more than last year at this time.
  • SCA Contract income was not budgeted for FY12, but we received $6,400 which helps to make up for some of the other income that was under budget.
  • Board Led Fundraising was below budget expectations by $4,200 and will add to the deficit.

 

   Expenses

  • Employee expenses are under budget.
  • Professional Services was over budget by $8,500.  This was largely due to over spending on legal services:

$2,602.55

 

Legal:  General FCC

$8,931.48

 

Legal: FCC regarding Chehalis frequency

$1,160.90

 

Legal: General employment- Staff

$4,057.52

 

Legal: Employment - Board or Pers. Com

 

 

 

$16,752.45

 

Total

  •  
  • Engineering Expenses are under budget by $5,600 due to cost controls on repairs.
  • Postage was under budget by almost $10,000.
  • Development/Promotional Expenses were under budget by $5,400.
  • Bankcard/Bank fees wereover budget, but this is due mainly to having increased credit card payments during the membership drives, increased monthly EFTs and a substantial increase in online giving in December.  Bankcard fees were budgeted at around 1.15% of membership income and the actual cost is running at 1.4% of membership revenue.

 

Operating Bottom Line

  • Revenues are over budget by $7,400, but almost $30,000 less than FY11.  This is mainly due to development/events not meeting budget, the loss of one subcarrier lease, and the PTFP/NTIA grant we received in FY11.  Expenses were under budget by $18,000, and down by $73,000 from FY11.  Major areas of decreased spending for this FY compared to FY11, are in budget cuts to employee expenses and we spent $20,000 in FY11 for the development of the Strategic Plan.  We currently have an operating deficit of $11,000 which is better than budget by just under $4,000 and better than last year by $44,000.  The Board could have eliminated the FY12 deficit if the Board would have been able to meet the fundraising goal and would not spent extra money in legal services.  The FY12 budget cuts to employee costs are the main reason for the large difference on the deficit for FY12 compared to FY11 and previous years.

Upcoming financial information:

·         KBOO received a restricted grant of $25,000 from Meyer Memorial Trust.  This will fund Board Training and Policy Development in FY13. The expenses will go in to next fiscal year.  This will not affect the bottom line since the income will have matching expenses that were not budgeted.

 

Note:  Numbers in the highlight summary have been rounded for ease of the reader; refer to financial statements for actuals

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Finance Committee meeting 11-20-12.pdf85.98 KB

Finance Committee Mid Year Budget Review 2013

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MidYearReview_05072013.pdf51.64 KB

Finance Committee Minutes February 19, 2013

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2013 Finance Comm Minutes - 02_19.pdf59.09 KB

Finance Committee Minutes January 12, 2013

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FinanceCommittee012213.pdf58.6 KB

Finance Committee Minutes May 14, 2013

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FinanceMinutes _05142013.pdf56.44 KB

Finance Committee Minutes September 17, 2013

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FinanceCommittee_09172013.pdf35.39 KB

Finance Statement October and November, 2013

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Oct_Nov_Budget_vs_Actual-2.pdf42.12 KB

Finance Committee Agenda Nov 19, 2013

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kboo_finance_committee_meeting_agenda.doc23 KB

Finance Committee Agenda Dec 11, 2013

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kboo_finance_comm_agenda_12-11-13.pdf52.84 KB

Finance Committee Minutes December 11, 2013

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finance_committee_minutes_12-11-13.pdf76.28 KB

CPA Audited / Reviewed Financial Statements

Per KBOO's By-laws, the Foundation requires an audit or review, which is a professional examination of the financial transactions of the Foundation by a CPA.

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FY 2011 CPA Review of Financial Statements

Visibility
Site category: 
KBOO Station News

Independant CPA Review of the fiscal year 2011 financial statements

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FY2011-CPA Reviewed Financial Statements.pdf597.72 KB

FY 2008 Audited Financials

For FY 2008, KBOO's bylaws required an audit. Attached is the result of that audit for FY2008.

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FY2008 - KBOO Foundation Audit.pdf67.13 KB

FY 2009 & 2010 Audited Financials

For FYs 2009 & 2010, KBOO's bylaws required an audit. Attached are the results of that audit for both FY 2009 & FY2010.

- Management Letter

- Audit Letters

- Audited Financial Statements

 

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KBOO Final Management Letter 9.30.2010 COLOR.pdf232.38 KB
KBOO Final Audit Letters 9.30.2010 COLOR.pdf2.6 MB
KBOO Final Financial Statement 9.30.2010 COLOR.pdf2.58 MB

990 Tax Returns

Visibility
Site category: 
KBOO Station News

990 and CT12 filings for the KBOO Foundation

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KBOO Foundation- Final 990 2010.pdf2.46 MB

KBOO Foundation Form 990s

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KBOO Foundation - Form 990 - 2009.pdf667.9 KB
KBOO Foundation - Form 990 - 2011.pdf985.91 KB

2014 FY

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Budget_2014.pdf134.37 KB
Budget_Notes_2014.pdf134.37 KB
kboo_treasurers_report_January-2014.pdf122.75 KB