|Pacifica just failed another financial audit (FYE 9-30-2020) |
For the sixth year in a row, Pacifica’s independent auditors determined that there is “substantial doubt about the organization’s ability to continue as a going concern” (pages 2, 27-30), which is auditor language for failing an audit.
Some of the main points in the audit:
* Pacifica owes over $665,000 in unpaid pension costs, including $547,000 in late filing penalties, assessments and interest (page 24).
* Pacifica’s current deficit is $1.7 million, which does NOT include the $3 million balloon payment due October 2021 (page 27).
* Pacifica received a much-needed $1.2 million grant under the federal CARES Act, which prevented the deficit from being even more significant (page 17).
KPFA, KPFK and KPFT buildings in jeopardy of sale or lease
In the audit, Pacifica announced plans for “the lease or sale of certain properties” to provide sufficient cash flows to properly service the debt and provide sufficient working capital to satisfy ongoing operation expenditures and related commitments (such as payroll and related benefits)” (page 28).
The national board’s recent decision to sell the KPFT building was discussed at the June 15th KPFT Budget/Finance Committee meeting.
Pacifica only has 3 properties, the KPFA, KPFK and KPFT buildings.