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<p><span style="font-family: 'Courier New', monospace;">Dear Mr. Coate,</span><br>
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<p><font face="Courier New, monospace">The policy not to review five years worth of Form 990s with the organization </font></p>
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<p><font face="Courier New, monospace">wasn't a line from the </font><font face="Courier New, monospace" size="3">auditor. That policy came from </font><font face="Courier New, monospace">the person who filed</font></p>
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<p><font face="Courier New, monospace">them. And according to the Form 990s, it was you:</font></p>
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<p><span style="font-family: 'Courier New', monospace;"><a href="http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/680050440/popup/1" class="OWAAutoLink" id="LPlnk305266">http://nccsweb.urban.org/communityplatform/nccs/organiza</a></span><span style="font-family: 'Courier New', monospace;"><a href="http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/680050440/popup/1" class="OWAAutoLink" id="LPlnk305266">tion/profile/id/680050440/popup/1</a></span><a href="http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/680050440/popup/1" class="OWAAutoLink" id="LPlnk305266"></a><font face="Courier New, monospace"><br>
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<p><span style="font-family: 'Courier New', monospace;">Your 2014 Form 990 was twenty-one pages long, Mr. Coate. Only ten of </span><font face="Courier New, monospace">those </font><br>
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<p><font face="Courier New, monospace">pages had dollar amounts on them. The rest had policy statements. That your </font></p>
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<p><font face="Courier New, monospace">board </font><span style="font-family: 'Courier New', monospace; font-size: 12pt;">of directors never saw. Because of some very specific language. "No</span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">review (of the Form 990) was or will be conducted." Allowing one individual</span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">to set policy for Mendocino County's only </span><font face="Courier New, monospace">high power public radio station.</font></p>
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<p><font face="Courier New, monospace">Now you're saying the accountant did that. For five years in a row. Right.</font></p>
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<p><font face="Courier New, monospace">Look at the bylaws, Mr. Coate:</font></p>
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<p><span style="font-family: 'Courier New', monospace;"><a href="http://www.kzyx.org/images/pdf/MCPBBYLAWSAdopted12July2010.pdf" class="OWAAutoLink" id="LPlnk820617">http://www.kzyx.org/images/pdf/MCPBBYLAWSAdopted12July2010.pdf</a></span><font face="Courier New, monospace"><br>
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<p><span style="font-family: 'Courier New', monospace;">Specifically Article VI, Section 6.01. Powers and duties of the board of</span><br>
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<p><span style="font-family: 'Courier New', monospace;">directors. Item number 4. "The Board shall develop and maintain written</span></p>
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<p><span style="font-family: 'Courier New', monospace;">such policies and procedures as the Board deems necessary." The _Board_</span></p>
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<p><span style="font-family: 'Courier New', monospace;">is supposed to set policy, Mr. Coate. Not an accountant. So let me get</span></p>
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<p><span style="font-family: 'Courier New', monospace;">this straight. You stood by while the bylaws were broken for five years</span></p>
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<p><span style="font-family: 'Courier New', monospace;">in a row. By a licensed accountant. It's your lucky day, Mr. Coate. I</span></p>
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<p><font face="Courier New, monospace">found his email address right here:</font></p>
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<p><a href="http://legal-professionals.credio.com/l/103228/Frank-Xavier-Gloeggler" class="OWAAutoLink" id="LPlnk670818"><span style="font-family: 'Courier New', monospace;">http://legal-professionals.credio.com/l/103228/Frank-Xavier-Gloeggler</span></a><font face="Courier New, monospace"><br>
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<p><span style="font-family: 'Courier New', monospace;">Its fxgcpa (at) aol.com. Do you see that? Mr. Gloeggler's license is</span><span style="font-family: 'Courier New', monospace;"><br>
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<p><span style="font-family: 'Courier New', monospace;">clear, Mr. Coate. It's right here:</span></p>
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<p><span style="font-family: 'Courier New', monospace;"><a href="http://www2.dca.ca.gov/pls/wllpub/WLLQRYNA$LCEV2.QueryView?P_LICENSE_NUMBER=21840&P_LTE_ID=783" class="OWAAutoLink" id="LPlnk197852">http://www2.dca.ca.gov/pls/wllpub/WLLQRYNA$LCEV2.QueryView?P_LICENSE_NUMBER=21840&P_LTE_ID=783</a></span><span style="font-family: 'Courier New', monospace;"><br>
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<p><font face="Courier New, monospace">Mr. Gloeggler got his accounting license way back in 1975. So I don't</font></p>
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<p><font face="Courier New, monospace">see how violating bylaws would serve him. Especially for five years in</font></p>
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<p><font face="Courier New, monospace">a row. It's equally puzzling to imagine how he could have missed audits</font></p>
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<p><font face="Courier New, monospace">for five years in a row. When they appear on the KZYX website. With his</font></p>
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<p><font face="Courier New, monospace">own signature on them:</font></p>
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<p><a href="http://www.kzyx.org/index.php/about-us/station-business/mcpb-bylaws-and-financial-statements" class="OWAAutoLink" id="LPlnk651014"><span style="font-family: 'Courier New', monospace;">http://www.kzyx.org/index.php/about-us/station-business/mcpb-bylaws-and-financial-statements</span></a><font face="Courier New, monospace"><br>
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<p><font face="Courier New, monospace">Do you remember who recommended that accountant, Mr. Coate? It's right </font></p>
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<p><font face="Courier New, monospace">here:</font><span style="font-family: 'Courier New', monospace;"><br>
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<p><span style="font-family: 'Courier New', monospace;"><a href="http://www.kzyx.org/images/pdf/gm_reports/December%2008%20GM%20report.pdf" class="OWAAutoLink" id="LPlnk90452">http://www.kzyx.org/images/pdf/gm_reports/December%2008%20GM%20report.pdf</a></span><font face="Courier New, monospace"><br>
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<p><span style="font-family: 'Courier New', monospace;">It looks like you brought Mr. Gloeggler in. Because he'd done a good job</span><br>
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<p><span style="font-family: 'Courier New', monospace;">for KMUD. So I looked up their Form 990s:</span></p>
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<p><a href="http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/942789780/popup/1" class="OWAAutoLink" id="LPlnk78106"><span style="font-family: 'Courier New', monospace;">http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/942789780/popup/1</span></a><span style="font-family: 'Courier New', monospace;"><br>
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<p><span style="font-family: 'Courier New', monospace;">Gee, Mr. Coate. KMUD reports having audits done on every single Form 990.</span><br>
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<p><span style="font-family: 'Courier New', monospace;">All the way back to 2002. It looks like KZYX missed a few years. Like the</span></p>
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<p><span style="font-family: 'Courier New', monospace;">entire time you were here.</span></p>
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<p><span style="font-family: 'Courier New', monospace;">Here's what I don't understand. According to your GM report from December of</span></p>
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<p><span style="font-family: 'Courier New', monospace;">2008: "Every year the CPB requires we conduct a proper audit from a CPA."</span></p>
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<p><span style="font-family: 'Courier New', monospace;">Wouldn't a 'proper audit' show up on a Form 990? They did for KMUD. But not</span></p>
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<p><span style="font-family: 'Courier New', monospace;">for KZYX. Why not?</span></p>
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<p><span style="font-family: 'Courier New', monospace;">There's just one more thing bothering me, Mr. Coate. In that same GM report,</span></p>
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<p><span style="font-family: 'Courier New', monospace;">you said, "Frank does the CPB audit for KMUD, who was pleased with his work."</span></p>
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<p><span style="font-family: 'Courier New', monospace;">It's true that Mr. Gloeggler prepared KMUD's Form 990s until 2008. But not</span></p>
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<p><span style="font-family: 'Courier New', monospace;">after. And I haven't been able to find a single KMUD audit with his name on</span></p>
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<p><font face="Courier New, monospace">it. Even stranger is the fact that Mr. Gloeggler supposedly prepared KZYX's</font></p>
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<p><font face="Courier New, monospace">Form 990s _and_ audits during your employment here. The so-called audits</font></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">were reported to the CPB. But not the IRS. Why not?</span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">And finally. After looking through eight years of minutes and GM reports for </span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">KZYX. I couldn't find one instance where the audit committee presented one of</span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">the so-called audits on the KZYX website to the board of directors. And half </span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">of the things from Mr. Gloeggler have the wrong address on them. So where'd</span></p>
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<p><span style="font-family: 'Courier New', monospace; font-size: 12pt;">they come from?</span></p>
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<p><font face="Courier New, monospace">Sincerely,</font></p>
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<p><font face="Courier New, monospace">Scott M. Peterson</font></p>
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<p><font face="Courier New, monospace">Mendocino</font></p>
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<p><font face="Courier New, monospace">- - - - - - - - - - - - - - - - - </font></p>
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<p><span style="color:rgb(33,33,33); font-family:wf_segoe-ui_normal,'Segoe UI','Segoe WP',Tahoma,Arial,sans-serif; font-size:15px">>If you think that line from the auditor constituted a “policy” then I imagine it was a standard statement pertaining to his audit,
not other MCPB policies. As for me, I didn’t think about it much one way or another because the goals of such scrutiny were served in other ways. If the Board asked for it, I gave it. But even when they didn’t ask me for information, I supplied as much
detail in all areas of the organization that I thought merited it, delivered in language I believed was easiest to digest. </span></p>
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I still think you are fishing for something you aren’t coming clean about. And by the logic you supplied, one could surmise that the EFF does better than MCPB because they appoint, rather than elect, their Board members.</div>
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Anyway, have a good life. Over and out.</div>
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<div class="">John Coate</div>
<div class=""><a href="mailto:tex@well.com" target="_blank" class=""><span class="currentHitHighlight" id="0.1663477853871882" name="searchHitInReadingPane">tex@well.com</span></a></div>
<div class=""><a href="mailto:john@edgeryders.eu" target="_blank" class="">john@edgeryders.eu</a></div>
<div class=""><a href="http://johncoate.com/" target="_blank" class="">johncoate.com</a></div>
<div class="">707-357-2223</div>
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