[Kzyxtalk] $1.6 Million Uncontrolled Loss

[Scott Peterson]

Dear Ms. Courtney,

According to MCPB's meeting minutes from July 2009, the annual 'burn

rate' at KZYX is $374,000:

http://www.kzyx.org/images/pdf/mtg_minutes/KZYX%20Board%20meeting%20minutes%207-09.pdf

Looking at MCPB's Form 990s and audited financial statements, I found

an uncontrolled loss of $1.6 million over an eight-year period.

Here's how I calculated it. Add the total revenue from MCPB's financial

statements from 2008 through 2015. You can find them all here:

http://www.kzyx.org/index.php/about-us/station-business/mcpb-bylaws-and-financial-statements

The total revenue amounts to $4,338,549.

Then multiply a 'burn rate' of $374,000 times eight. The total there is

$2,992,000. Subtract that from the total revenue and you get $1,346,549.

The beginning net asset balance for that time period was $346,668. So if

the if the estimated 'burn rate' was accurate -- or even close -- then ending

net asset balance should be $1,693,217. But in reality, it's only $78,446.

Leaving $1,614,771 in uncontrolled loss.

So instead of a $347,000 annual 'burn rate,' it's more like $547,000. I got

most of the financial data from the National Center for Charitable Statistics 

here:

http://nccsweb.urban.org/communityplatform/nccs/organization/profile/id/680050440/popup/1

and the rest of it from the KZYX website here:

http://www.kzyx.org/index.php/about-us/station-business/mcpb-bylaws-and-financial-statements

The individual who originated the data was MCPB's General Manager, who

reported to the Board of Directors. During his years of 'dedicated service':

http://www.ukiahdailyjournal.com/opinion/20160602/kzyx-board-responds

Good luck with your current pledge drive.

Sincerely,

Scott M. Peterson

Mendocino

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