[grc] California Attorney General To Audit Pacifica

MichaelP papadop at peak.org
Sun Dec 28 07:59:40 PST 2014


I'm posting this in the interest of transparency.

  it originates because several Pacifica members complaiined to the
Cal AG Charities division, The Cal AG has responed by demanding 23 listed 
Pacifica Foundation documents which are in any case mostly subject tto 
inspection by Pacifica Foundation members

MichaelP

GRC's alien, anarchist and atheist ex-listcop



United for Community Radio The Latest with Context



>From Richard Uzzell, Pacifica Board of Directors, KPFT Listener Rep. 
Announced publicly on December 23, 2014

The Pacifica Board of Directors was informed today by IED, Margy Wilkinson 
of a December 17, 2014 letter (sent almost a week earlier) from California 
Deputy Attorney General, Julianne Mossler, 
for Kamala D. Harris, Attorney General.

  This was the first that the Board (as a whole) was informed of this 
letter the California Attorney General and the action it is taking toward 
the Pacifica Foundation Radio.

It is the Cal AG's duty to supervise charitable organizations under 
California Corporate Code section 5250, and Government Code section 12580 
through 12599.8.
    One of the ways the AG  performs this duty is by 
conducting audits of charitable organizations.by
  requiring Pacifica to provide multiple documents. specifically for the 
years 2010 thru 2014



1. Articles of Incorporation and any amendments

2. Bylaws, and any amendments

3. Names, addresses, telephone numbers and email addresses of all members 
of the national board of directors and all corporate officers from January 
1, 2010, identifying each by position and term.

4. IRS form 1023 and proof of tax-exempt status from the Internal Revenue 
Service and CA Franchise Tax Board

5. Complete minutes, including attachments and reports, of all meetings of 
the board of directors and board committees, including any resolutions 
passed, from January 1, 2010 to the present.

6. 990 forms from January 1, 2010 to the present.

7. Form RRF-1 and filings with the CA AG from January 1, 2010 to the 
present

8. Financial statements, including income statements and balance sheets 
from January 1, 2010 to the present.

9. General ledgers (if maintained electronically, please send electronic 
files) from January 1, 2010 to the present

10. Bank statements for all checking, savings, and investment accounts 
from January 1, 2010 to the present.

11. Canceled checks for all checking, savings and investment accounts from 
January 1, 2010 to the present.

12. Records of all donations and grants received by PFR, including but not 
limited to donations received via Twitter, Facebook and Pacifica's 
websites, from January 1, 2010 to the present.

13. Receipts and itemized expenditure journals documenting expenses, from 
January 1, 2010 to the present

14 All written policies, procedures, internal training manuals and 
documents related to solicitations including solicitation scripts, 
question and answer sheets, brochures or promotional materials used in 
soliciting donations and audio records of fundraising solicitations from 
January 1, 2010 to the present.

15. Correspondence and documents related to donations from the public, 
including restrictions on the use of those donations from January 1, 2010 
to the present.

16. Identify and produce all complaints and donation cancellation requests 
along with the name, address, telephone number and email address of the 
requesting party from Jan 1, 2010 to the present.

17. A list of any loans made by PFR and documents related to those loans, 
including name, date, amount, purpose, copy of the note, terms of the 
loan, board minutes detailing the discussion of the loan, and a payment 
schedule, from January 1, 2010 to the present.

18. A list of any loans made to PFR and documents related to those loans, 
including name, date, amount, purpose, copy of the note, terms of the 
loan, board minutes detailing the discussion of the loan, and a payment 
schedule (from January 1, 2010 to the present).



19. A list of any self-dealing transactions (transactions in which a 
member of the board or an employee has a financial interest, with the 
date, parties, amount and purpose and board minutes of the discussion from 
inception.

20. W-2 forms of all employees including board officers from January 1, 
2010 to the present.

21. A list of employees, consultants, officers and board members and the 
amount of salary and wages paid to each from Jan 1, 2010 to the present.

22. All policies and procedures related to fiscal controls

23. All policies and procedures related to governance.






BERKELEY-In response to a March 2014 complaint from 8 former board members 
who served on the Pacifica National Board between 2008 and 2013, the 
Registry of Charitable Trusts, the division of the California AG that 
supervises California nonprofit organizations, has launched a 
comprehensive audit of Pacifica Radio's accounting and compliance 
functions. The scope of the initial document request is broad and 
encompasses most financial records from the past five years of operations. 
(see list below).

         The Attorney General defines their charity oversight purpose as: 
The Attorney General regulates charities and the professional fundraisers 
who solicit on their behalf. The purpose of this oversight is to protect 
charitable assets for their intended use and ensure that the charitable 
donations contributed by Californians are not misapplied and squandered 
through fraud or other means.

         The reckless and foolhardy actions of the rogue board majority, 
who threw out an executive director with a 3 year contract and rehired a 
CFO who had been removed for poor performance, were followed by 10 months 
of aggressive non-compliance with legal reporting requirements including 
the failure to produce an audit [1] 15 months after the close of the 
fiscal year (in violation of the Nonprofit Integrity Act [2]), failing to 
amend erroneous tax returns [3], and the issuance of only one incomplete 
profit and loss statement.
  [4]

         The inability of the 2014 board
  to supervise the executives they installed (unelected board chair 
Wilkinson and CFO Salvador) in the basics of legally operating a nonprofit 
organization has opened the door for government interference in Pacifica's 
operations.
  The ongoing audit is likely to prevent any immediate action towards 
network dissolution or the sale of license and/or real estate assets.


         Here is a list of the 23 sets of documents requested by the 
California Attorney General






BERKELEY-In response to a March 2014 complaint from 8 former board members 
who served on the Pacifica National Board between 2008 and 2013, the 
Registry of Charitable Trusts, the division of the California AG that 
supervises California nonprofit organizations, has launched a 
comprehensive audit of Pacifica Radio's accounting and compliance 
functions. The scope of the initial document request is broad and 
encompasses most financial records from the past five years of operations. 
(see list below).

                The Attorney General defines their charity oversight 
purpose as: The Attorney General regulates charities and the professional 
fundraisers who solicit on their behalf. The purpose of this oversight is 
to protect charitable assets for their intended use and ensure that the 
charitable donations contributed by Californians are not misapplied and 
squandered through fraud or other means.

         The reckless and foolhardy actions of the rogue board majority, 
who threw out an executive director with a 3 year contract and rehired a 
CFO who had been removed for poor performance, were followed by 10 months 
of aggressive non-compliance with legal reporting requirements including 
the failure to produce an audit [1] 15 months after the close of the 
fiscal year (in violation of the Nonprofit Integrity Act [2]), failing to 
amend erroneous tax returns [3], and the issuance of only one incomplete 
profit and loss statement.
  [4]

   The inability of the 2014 board
  to supervise the executives they installed (unelected board chair 
Wilkinson and CFO Salvador) in the basics of legally operating a nonprofit 
organization has opened the door for government interference in Pacifica's 
operations.
  The ongoing audit is likely to prevent any immediate action towards 
network dissolution or the sale of license and/or real estate assets.


         Here is a list of the 23 sets of documents requested by the 
California Attorney General

         1. Articles of Incorporation and any amendments

         2. Bylaws, and any amendments

         3. Names, addresses, telephone numbers and email addresses of all 
members of the national board of directors and all corporate officers from 
January 1, 2010, identifying each by position and term.

         4. IRS form 1023 and proof of tax-exempt status from the Internal 
Revenue Service and CA Franchise Tax Board

         5. Complete minutes, including attachments and reports, of all 
meetings of the board of directors and board committees, including any 
resolutions passed, from January 1, 2010 to the present.

         6. 990 forms from January 1, 2010 to the present.

         7. Form RRF-1 and filings with the CA AG from January 1, 2010 to 
the present

         8. Financial statements, including income statements and balance 
sheets from January 1, 2010 to the present.

         9. General ledgers (if maintained electronically, please send 
electronic files) from January 1, 2010 to the present

         10. Bank statements for all checking, savings, and investment 
accounts from January 1, 2010 to the present.

         11. Canceled checks for all checking, savings and investment 
accounts from January 1, 2010 to the present.

         12. Records of all donations and grants received by PFR, including 
but not limited to donations received via Twitter, Facebook and Pacifica's 
websites, from January 1, 2010 to the present.

         13. Receipts and itemized expenditure journals documenting 
expenses, from January 1, 2010 to the present

         14 All written policies, procedures, internal training manuals and 
documents related to solicitations including solicitation scripts, 
question and answer sheets, brochures or promotional materials used in 
soliciting donations and audio records of fundraising solicitations from 
January 1, 2010 to the present.

         15. Correspondence and documents related to donations from the 
public, including restrictions on the use of those donations from January 
1, 2010 to the present.

         16. Identify and produce all complaints and donation cancellation 
requests along with the name, address, telephone number and email address 
of the requesting party from Jan 1, 2010 to the present.

         17. A list of any loans made by PFR and documents related to those 
loans, including name, date, amount, purpose, copy of the note, terms of 
the loan, board minutes detailing the discussion of the loan, and a 
payment schedule, from January 1, 2010 to the present.

         18. A list of any loans made to PFR and documents related to those 
loans, including name, date, amount, purpose, copy of the note, terms of 
the loan, board minutes detailing the discussion of the loan, and a 
payment schedule (from January 1, 2010 to the present).


         19. A list of any self-dealing transactions (transactions in which 
a member of the board or an employee has a financial interest, with the 
date, parties, amount and purpose and board minutes of the discussion from 
inception.

         20. W-2 forms of all employees including board officers from 
January 1, 2010 to the present.

         21. A list of employees, consultants, officers and board members 
and the amount of salary and wages paid to each from Jan 1, 2010 to the 
present.

         22. All policies and procedures related to fiscal controls

         23. All policies and procedures related to governance.






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