[grc] California Attorney General To Audit Pacifica

[Rip Robbins]

A lesson to stations about keeping good financial records, although this problem is mostly convoluted by having 5 stations scattered across country with different management and financial administrations.  To me, a radio network would have one set of leaders, operating all 5 stations.  That's how we do it here for our stations:
Our second station has its own "manager" to handle local volunteer and content administration, but our stations also share important programming (parallel to a national service at Pacifica stations), so the folks at our second station don't get to just make up an entire schedule: it is shared about 50/50.  The "tone" of the second station's programming must align with the values of our overall radio service.  If our overall initiative is to create a new radio program across all our channels, the local group cannot veto.
The challenge now to current Pacifica administration is to collect the details ordered up by the AG office, and that will be difficult given the lack of management of the "Foundation" as a whole.  Contrary to some people on this list and general idea of grassroots, I don't believe that Pacifica should be governed by voter/listeners living in various cities because we have seen how a few have gamed the system to create factions (its not 5 organizations, or, it shouldn't be).
So I don't know if the lessons of Pacifica potential reorganization make any difference to the rest of us, since it is unique in holding such a variety of licenses.
I bet the Foundation cannot provide the following in a coherent (and legally accurate) format by mid-January:
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
The current AG may direct a reorganization once it is seen how mismanaged with regard to finances, and who ever can deliver a recovery plan that is reasoned will win the game of musical chairs: determining who will be given the ownership of the Foundation.
So it could be that whichever group is given control, many folks will not like the result, including me, but that's the way this game has been positioned, sort of like last time.
I thought I liked the previous reorganization in 2000, but it has proven to be just as divisive as the regime that was dissolved.  The Board tried to change this management problem in January 2006 (yes I am bringing it up again....) but through a mismanagement of the subcommittee roster (caused by a current PNB member failing to read the ballots correctly), and a subsequent ruling by the chair that loaded the committee with votes for dismantling the "Foundation Network", that effort was defeated.  That was the last time I can see in the recent past, that a chance existed for creating a national progressive media organization out of the Pacifica Radio service. 
Rip


-----Original Message-----
From: grc-bounces at maillist.peak.org [mailto:grc-bounces at maillist.peak.org] On Behalf Of MichaelP
Sent: Sunday, December 28, 2014 8:00 AM
To: grc at maillist.peak.org
Subject: [grc] California Attorney General To Audit Pacifica


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.




_______________________________________________
grc mailing list
grc at maillist.peak.org
http://maillist.peak.org/mailman/listinfo/grc