Pacifica audit complete
EXECUTIVE DIRECTOR ANNOUNCES AUDIT PUBLISHED
Dear Pacifica Board members, staff, listeners, and community:
I am pleased to announce the publication of the Pacifica Foundation Audit for Fiscal Year Ending 09/30/02 (Oct. 1, 2001, to Sept. 30, 2002).
The audit is available by PDF file on the financial section of Pacifica's web site at:
Also available on the site is the FY01 Audit, FY03 Budgets, and the most recent FY03 Financial Statement.
The FY02 Audit confirms the financial turnaround of the Foundation following the December 2001 legal settlement.
Thanks to amazing work from staff throughout the Pacifica system, as well as tremendous listener support, the network turned a $4.45 million deficit in FY01 into a surplus of $663,701 in FY02 -- a five million dollar swing, according to the audit.
Pacifica's auditor reports that in the first quarter of FY02, prior to the legal settlement, the network registered a one million deficit, making last year's transformation all the more remarkable.
Fueling the turnaround was an increase of two million dollars in listener support.
KPFA 94.1 FM in Berkeley led the way, totaling $3.6 million in FY02 revenue up 44 percent from $2.5 million in FY01. KPFK 90.7 FM in Los Angeles also experienced a sharp rise in listener support, raising a total of $2.6 million in FY02, up 24 percent from $2.1 million in FY01.
Overall, the Audit reveals that network revenues rose 25 percent, from $10.98 million in FY01 to $13.72 million in FY02.
The Audit notes $920,149 in income from insurance proceeds which was to reimburse for professional service fees incurred in FY01. And as the auditors indicated in Footnote 19, legal settlements reduced professional fees by $512,804.
Expenses declined from a total of $15.43 million in FY01 to $13.05 million in FY02. The main expense change was in legal and professional costs which totaled $368,000 in FY02, down from $2.4 million in FY01.
Pacifica's balance sheet improved dramatically in FY02. Accounts payable decreased by $512,053 which includes reductions due to settlements with professional service firms. There have been significant payouts to creditors since, further reducing network liabilities.
My thanks to the national office staff, General Managers, our Board of Directors, network Business Managers, and especially outgoing interim Controller Yhasmine Bryan, who worked so hard on this audit. My thanks also to our CFO Lonnie Hicks, who in a very short period of time has provided excellent leadership in the finance area.
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