[Kzyxtalk] Finances

[sako4 at comcast.net]

Looking at the audited financials, total income for MCPB in the FY ending June 30, 2013 was $652,670. 


My contention has always been that MCPB has been a jobs program for the people who work there. We could probably get along with half the staff. When you really think about it, all we really need at the station are technical people to keep the signal humming. Everything else is secondary. I could do compliance with the FCC, CPB, and IRS in my sleep. It's all pro forma. As things are presently structured, staff really spends much of their time not working, per se, but raising money for their own salaries and benefits -- singing for their supper, as it were. They're presently doing it now during this Winter Pledge Drive. 


So all this raises the question: What part of of total income of $652,670 is expensed to salaries and benefits? 


Ah, that is the rub! 


Salaries and benefits are not reported as such. They're folded into other budget line items. Very deceptive. Very clever. Salaries and benefits are expensed as parts of "program services" and "supporting services". 


Take a look (again, from the audit): 


- - - - - 



EXPENSES 


Program Services: 
Programming and production $ 74,314 $ - $ 74,314 
Broadcasting $106,393 - 106,393 
Program information and promotion$ 58,614 - 58,614 


Supporting Services: 
Management and general $ 163,594 - 163,594 
Fundraising and membership development $ 100,080 - 100,080 
Underwriting and grant solicitation $ 44,140 - 44,140 


TOTAL EXPENSES $547,135 $ - $547,135 


- - - - - 


If you were to think that you could go to MCPB tax filings for what we spend on salaries and benefits, think again. Salaries and benefits are not separated out. Everything is lumped together, as it was in our audit. The following line items are from MCPB's Form 999 for 2012, the last year on file in the public domain. 


- - - - - 


Part IX, line 5, "Total Expenses for Key Employees" - $54,000 


Part IX, line 7, "Other Salaries and Wages" - $242,390 


Part IX, line 13, "Office Expenses, Including Program Service Expense, Management annd General Expense" - $158, 284 


- - - - - 


Confused? 


Well, that's the whole point! 




----- Original Message -----
From: nsi at mcn.org 
To: "doug mckenty" <dougmck at gmail.com>, Kzyxtalk at lists.mcn.org 
Sent: Friday, February 28, 2014 4:34:26 AM 
Subject: Re: [Kzyxtalk] Finances 

Does that mean David Steffen is eating up the current underwriting income in salary and benefits? beth 




----- Original Message ----- 


From: "doug mckenty" <dougmck at gmail.com> 

To: "Kzyxtalk at lists.mcn.org" <Kzyxtalk at lists.mcnorg> 

Cc: 

Sent: Fri, 28 Feb 2014 00:12:20 -0800 

Subject: [Kzyxtalk] Finances 


I have been looking at the GM reports going back to 2008 in order to discern the evolution of the financial crisis. Near as I can tell, most of the 95k in debt was accrued in the fourth quarter of that year. 2009 was a terrible year, resulting in the 175k of debt we have become accustomed to hearing about. 


Last year was a good year due in large part to 60k in unexpected CPB grant increases, though membership donations were higher than expected as well. 


Underwriting is down from 100k in 2008 to about 40k, and KZYX does spend about 30k on programming...down from about 55k in earlier years (perhaps due to rural status with NPR). 


I urge you all to take a look at the managers reports. Remember the fiscal year ends June 30 so the July reports contain yearly budget info. 


Doug 


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