KPFA and Pacifica Foundation 6-Month Financial Statements

This data is presented in the interest of financial transparency to KPFA's community.

KPFA's position is greatly improved over the first six months of the 2011 fiscal year, although after two years of $500,000 plus losses in 2009 and 2010, it is more fragile than one would like.

Robust performance at the other 4 stations in the Pacifia network (all posted a surplus except WBAI in New York, which reduced its operating deficit 75% from 2010 numbers) provide a stronger base for the network. The extent of the turnaround, if it can be sustained for the rest of the year, is impressive given the dismal economic conditions in the country as a whole.

Notes on KPFA's income statements:

Year over Year Comparison
March 31, 2010 (Operating Deficit/Surplus) - (-293,000)
March 31, 2011 (Operating Deficit/Surplus) - +79,000

Improvement at KPFA over the last 12-month period - +372,000

Revenue: Revenue is pretty much as expected in the budget with a slight bump in the overall totals from the unplanned week of fundraising in December of 2010. Areas of shortfall from what was expected include a bit less from the December crafts fair than was hoped (which probably has a relationship to rain on the weekend of the event), weakness in website income, and $60,000 in anticipated grant funding that has not arrived. Net over budget equals $163,000

Expenses: Net salaries and benefits are now at approximately 50% of total revenue, which seems manageable and better than the 67% of total revenue that KPFA approached in mid-2009. There is a $10,000 a month overrun in wages that is somewhat offset by savings in reduced health benefit payments. Board meeting and election expenses have been economized, coming in at 67% of budget.

Areas of administrative overrun include telephone expenses higher than anticipated, a tax/filing penalty of some kind and additional legal fees stemming from the 13(?) or so employee grievances filed around the layoffs and associated conflict and 2 election lawsuits filed by Save KPFA. That said, given the 15 different matters, expenses are limited and insufficient to return the station to the six-figure operating deficits of the previous two fiscal years.

In development expense, which in the aggregate is in line with what was anticipated, postage expense for both direct mail and premium shipping are way higher than planned, so the station seems to have sent extra direct mail and underestimated premium shipping costs. The only other significant unplanned expense is a building improvement of $31,000 that was unbudgeted.

Without that presumably emergency outlay, the operating surplus would be $112,00 for the six month period.

Please feel free to email me at the above address if there are any questions regarding the enclosed statements and I will be happy to try to answer or find out the answers to your inquiries. All numbers are of course, preliminary, until the 2011 audit and review is completed in early 2012.

Thank you for your support of KPFA and Pacifica.