WERU Finance Committee February 14, 2011 Present: Willie Marquart, Jon Van Amringe, Mary Kellett, Matt Murphy, Lynn Soucy Willie said that the auditors performed two days of field work, on consecutive Thursdays, and they have finished. They were very happy with the information presented to them. They hope .to be done the fmancial statement and CPB filing early this year. Lynn asked Willie to contact them every two or three weeks if he does not hear from them. They required a 50% ($4,500) retainer before they would begin work this year. Jon asked when 99.9 will go up. Willie said we are waiting for the Zone Corp folks to do it, but probably within a month. The minutes of the January meeting were accepted, and Lynn will e-mail them to Jon.· Discussion of the Finance Committee Charter. Lynn will add a sentence about budgetary recommendations in the event of loss of our CPB funding. The Finance Committee approvedihe Charter with that addition. We reviewed the January financials. Jon asked what is considered a major donor. Willie said anyone who gives $200 or more at one time. Of the $7,600 January revenue, about half is from Sustainers. Business members are up; Willie said there was at least one new member in January, but he is concerned about this line for the year. Telephone expense­ the billing from Fairpoint is not correct. This expense may be too high. January revenue exceeded budget by $3,000, and expenses were less than budget by $2,000, so the loss for the month was less than budget by $5,000. Willie said we have about $24,000 borrowed on the credit line now. The pledge drive is going slowly. The first day of the drive, Saturday, was about the same as the first day of the first pledge drive last year, but Sunday and Monday pledges were quite low.

Discussion of current pledge drive being a few weeks earlier this year.

Our pledge collection rate last year was 99%. Sylvia joined us to talk about identifying as members those who make a pledge, but never pay. Mary suggested that people who make a pledge should immediately be identified as members, but if they do not pay, they should be removed from member status in the database at the end of the quarter following the quarter in which they pledge. This may skew the information about how many new members are retained, but it seems the most straightforward, and involves the least work, especially since our pledge fulfillment rate is so high. We also confirmed the practice of sending these individuals two copies of Salt Air, but no more if they do not pay their pledge. The next meeting will be Monday, March 14, 2011, 6:30 pm at the station. Lynn Soucy

WERU Finance Committee

March 14, 2011 Present: Willie Marquart, Jon Van Arnringe, Matt Murphy, Lynn Soucy. We reviewed the February financial statements. Trade income and underwriting trade expense both include two annual contracts, with the Free Press and Village Soup. The three membership lines, general members, major donors, and business members, look OK for the year to date, but there is very little coming in March. Willie said that we received$26,500 from sustainers and the pre-drive mailing, about$16,000 from the pledge drive, and another$10,000 since. We would have to get another$10,000 in March in order to be on target for the quarter, but that seems unlikely. Likely, we will get another$5,000. and fall about$5,000 short for the quarter. This is the same shortfall as the first quarter of 2010, and better than other recent years. Discussion of effects of the first 2011 pledge drive coming so soon after the end of year pitching we did until late December. We have already paid 50% of the audit bill,$4550. This expense recorded so early in the year caused the Net Ordinary Income for the two months to be$4,600 behind budget. Telephone expense- Willie is expecting a visit from the Fairpoint rep who switched our phone service. Not all services have been correctly switched, and we are getting bills from Fairpoint and Mid-Maine. Willie will bother him every couple of days until he arrives. We are getting a combined T1 and DSL line for internet access, which ought to speed things up. y.;e do not have room on our lot for a tower to put up a microwave to send our signal to the transmitter, so we have to continue to live with the analog line for that. We now have borrowed$26,000 against the Line of Credit. Willie has not used it since the pledge drive, but may have to this week. Matt said the grant application was sent in last week. He applied for 75% of the project, $85,000. We won't have specific news about that grant until August or September. If funding is cut for that program, we will know that sooner. The minutes of the February meeting were approved. Lynn asked about the audit. They needed a letter from the Maine Community Foundation about donor intent, and they got that, Willie believes they are done, just need to get through their tax work, and will have the fmancial statements and CPB report soon after April 15. Lynn Soucy

WERU Finance Committee April 11, 20 11 Present: Willie Marquart, Jon Van Amringe, Mary Kellett, Matt Murphy, Lynn Soucy The minutes of the March 14 meeting were approved. Willie said there has been very little new money come in since the last pledge drive. The first quarter membership lines are not too different from the first quarters of 2009 and 20 10 . He said it is a good thing the next membership drive is in May, not June. We borrowed on the credit line last week and will need to borrow about$7,500 this week. 99 .9 is going- went on Sunday. We will have two events in Bangor to celebrate, a presence at the Kenduskeag Stream race, and the music sale in Brewer. The major donor membership line is down. Two past regular donors have not pledged this year. Matt will review. Underwriting revenue is up about$3,000 . Net ordinary income is$9 ,700 under budget. Half of that is the payment for the audit, which is budgeted later in the year. The audit is pretty much finished. Mary asked about Capital Campaign activity before the campaign went quiet. Willie said that right now we have about$13,000 cash and$15,000 pledges receivable. She also said we thinks we need a giving pyramid, and wondered if we could get the funds for the transmitter raised without a consultant. She thinks people will be interested in funding a transmitter, and we could do it without hiring. Discussion of the approach to the Capital Campaign followed. Matt thinks we need professional advice on whether this would work for us. The next meeting will be May 9. Lyn Soucy

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WERU Finance Committee May 10, 2011 Present: Willie Marquart, Mary Kellett, Matt Murphy, Jon Van Amringe, Lynn Soucy The minutes of the April 11 meeting were approved. We reviewed the April financial statements. Willie said that the Major donor line looks good because we had several pledges around the end of April. All of the revenue lines are over budget for the month, and all but memberships are over budget for the year to date. Overall, April revenue exceeded budget by $8,900, and year to date revenue exceeds

budget by $17,600.

The renewal letter has gone out, and Willie credited this with good cash receipts last week. We received a $25,000 gift last week, which has not been reflected in the April financial statements. Discussion of where to report it, and we determined that it should be reported in unrestricted grants, not major donors. Expenses are tracking right along budget, and for the month were $376 greater than

budget. For the month, Net Ordinary Income is better than budget by $8,507 and the year to date Net Ordinary Income is $1,365 behind budget. Willie discussed cash. The $25,000 came just in time. He thought he would need to borrow from the credit line, but instead he has paid some down. He spoke to Christa from Mike Nickerson's office. She thinks we will have the information around May 20 so Willie can get the CPB filing done by May 31. The goal for the May pledge drive will be $21,000. We had a discussion of pitching on that drive. Difference of opinion about announcing what is our average pledge, or what should be our average pledge. Discussion of asking Bangor listeners for $99.90, or asking for 99 new members from the Bangor area. The next meeting will be June 13. Lynn

WERU Finance Committee June 13, 20 11 Present: Willie Marquart, Sylvia Smith, Mary Kellett, Matt Murphy, Jon Van Amringe Lynn Soucy. Sylvia will be attending the Finance Committee meetings. The minutes of the May 16 meeting were approved. We reviewed the May fmancial statements. In May we received a$25,000 grant with.no restrictions. May revenue came in$19,700 over budget, and ordinary income was $17,400 over budget. General membership is$2,286 behind budget in April and$5,120 behind for the year to date. Sylvia said we are still feeling the effects of the end of year push last December. People are not renewing now. Jon asked if the Development Committee is working on soliciting from foundations. Matt, said no, he tries to make those contacts. The CPB report was filed on time at the end of May, and the CPB check came shortly after, at the beginning of June. The funds were used to pay off our credit line. The CL was at about$35,000 . We now have enough cash for this week, and may need to use the credit line next week. The equipment repairs line in April included the annual maintenance fee for the DAD system. Jon asked why the medical insurance line is over for the year to date. This includes one additional month. The 20 10 audit entries have been posted. The audited financial statements show a net increase (a profit) of $20 ,226. The auditors are finishing the 990 and the management letter. Lynn asked for a copy of the adjusting entries. Mary spoke of our need for alternate funding sources. We still need a development plan. Matt said the Board is taking care of the transmitter fund drive, the staff takes care of the pledge drives and membership issues. The budget for next year has to have a bigger line for events, and the Development Committee is going to focus on events. We made about$ 1,000 on the Tim Sample event. Willie asked about the strategic plan. The Finance Committee will have to look at the fundraising part of that plan. Next meeting will be 7111/11, 6:30 pm at the station. Lynn Soucy

WERU Finance Committee July 11, 2011 Present: Willie Marquart, Matt Murphy, Sylvia Smith, Jon Van Amringe, Lynn Soucy. The minutes of the June 13 meeting were approved. We netted$1,200 from the Tim Sample event; it is included in the Special Events line in June. General membership is behind for the year to date by $5,840, and underwriting is over for the year to date by$3,555. The$25,000 grant which we received in May leaves the total revenue for the six months well over budgeted revenue. Matt asked if there is danger in resting on our laurels because of the$25,000 gift. Lynn said that each quarter has to stand on its own. Discussion followed of how we define the on-air goals for each quarter. Staff members present felt we should go back to our previous method of identifying the entire goal for each quarter. They feel it is less confusing and causes fewer questions. The case for going back to announcing the entire goal is that the current method has not raised more funds; it is more complicated and leaves a lot of work for the end of the year. This will be a topic for consideration between now and the end of 2011. We were out of the credit line for 28 days, then borrowed$10,000. Willie will need to borrow more this week. The Finance Manual needs to be amended to include Sylvia's duties. Lynn asked if the next draft can be ready for Finance Committee consideration next month. We need a policy about Form 990 being shown to the Board before filing each year, which should be included in the Finance Manual. We also need to fmalize the whistleblower policy and the document retention policy. Expenses are tracking about equal to budget. The expense for the audit was budgeted in June, but half of it has been paid and expensed earlier in the year. Actual results in June were$4,439 better than budget, which brings the actual loss for the year to date to$18,166 better than budget. We reviewed the auditors' management letter, and discussed the points they considered weaknesses. They noted that the Finance Policies and Procedures Manual should be updated. That is an ongoing process. We intend to include a policy that all members of the Board of Directors be provided a copy of Form 990 before filing. The procedure for approval of Credit Line draws will be added to the Finance Manual. The auditors suggest that the person keeping the Organization's books should not sign checks. In the future, checks will be signed by the General Manager and the Treasurer, and not signed by the Business Manager unless one of the others is not available and a check is needed. The suggestion about the Office Manger verifying the amount of the actual deposit was put into use several months ago, and he will begin to date stamp his approval.

The amount of cash available in restricted accounts fell short of the amount necessary to cover all outstanding restricted balances, but there has been significant improvement since the previous year. We will work to further improve this cash position in the current year, so we do not have a similar deficiency at the end of the current year. Prepaid expenses: We believe that all significant prepaid items have been properly recorded in the correct year. Property and equipment: In the current year the Business Manager and the General Manager will undertake a thorough review of the Fixed Assets list, and remove any assets which are no longer owned or in use, and the Fixed Asset listing will be reconciled to the General Ledger. The Finance Committee will recommend to the Board that an Investment Policy be added to the Finance Manual which says that we will invest our endowment funds in a manner which the Maine Community Foundation believes is prudent. The Finance Committee recommends that the Board consider the Fair Value Accounting at another time. The Organization will continue to carefully review all grant or gift documents to determine whether the gift includes any restrictions, and to be sure the donor's written intent is the same as any verbal intent, and the donor' s wishes are followed. Lease Agreements.. We occasionally request lease arrangements with the owners of the tower on Blue Hill and the translator in Bangor. Expenditures: we will attempt to have 100 % compliance with dated stamped invoices and all invoices available in 20 11. Payroll. All employees are paid salaries. The authority to pay them exists in their personnel files, and does not need to be approved every week by a member of management. Time sheets are filed electronically. Willie will ask the auditors to remove this paragraph. Functional Allocation of Expenses. The auditors suggest we analyze how we categorize expenses here. We use the same formula in the audited financial statements as we use in the CPB report. The auditors suggest that our financial software be cleaned up, and account numbers and names no longer used should be deleted. Willie said this is an ongoing process. Communication to the governing body: Difficulties encountered in performing the audit. Lynn will set up an appointment with Mike Nickerson, Willie and Sylvia to discuss the workpapers and cover sheets the auditors would like to have. The next Finance Committee meeting will be Monday, August 8 at 6:30 pm. Lynn Soucy

WERU Finance Committee August 15, 2011 Present: Willie Marquart, Matt Murphy, Sylvia Smith, Jon Van Amringe, Lynn Soucy. The minutes of the July 11 meeting were approved. Discussion of the Profit and Loss statement: the income looks OK, except for the Unrestricted Grants line. The CPB grant was budgeted in July, but has not been received. Restricted funds income, we received$8,640 , plus Willie recognized additional$6,000 mcome. Expenses look good. We borrowed$17,000 on the credit line in July. Today Amy Goodman called during the last part of Democracy Now. Willie said it is time to start worrying about what happens if the CPB grant is not funded next year. Willie and Sylvia need month or so to work up a draft of the Finance Document. We are looking for a draft by the October fmance committee meeting. The 990 was filed. Matt said we will work on a budget soon, and this is a chunk of strategic planning. The next meeting will be September 12, 6:30 pm at the station. Lynn Soucy

WERU Finance Committee

September 12, 2011 Present: Mary Kellett, Willie Marquart, Matt Murphy, Sylvia Smith, Jon Van Amringe, Lynn Soucy. The minutes of the August 15, 2011 meeting were approved. The August pledge drive surpassed the goals of $20,000 and 100 new members. We reviewed the August Profit & Loss statement. Revenue for the month exceeded budget by $20,770, mostly because of the $21,000 CBP bonus grant that we received. Some Board members have asked if some of this bonus money can be used toward the transmitter; Willie says the answer is no, the money is meant for programming. Jon asked if this bonus had been budgeted, it had not. We will be eligible to receive a similar bonus next year if the federal funds are available. If the CPB money is not approved by Congress for the next federal fiscal year, we could have a deficit of approximately $100,000 to fill. Willie mentioned a few write-offs. The expenses are falling right into line, except for the audit expense. The final bill was received, and it is about $3,000 over the top range in the engagement letter. The progress bill already received has been expensed, and the balance was expensed in August. Lynn will call Mike Nickerson to talk about the cost, and to set up a meeting with Mike, Willie, Sylvia, and herself to discuss preparation for the next audit. Sylvia and Willie are both interested in learning what they should be doing differently to prepare information for the auditors. The Line of Credit was paid off September 2, but Willie will have to borrow money this week for payroll. Jon asked how we would fill the $100,000 hole in next year's budget if the CPB funding is eliminated. Matt discussed some information he had received at the NFIB conference. He said it is likely the CPB funding will be cut but not eliminated. Mary asked if it is cut, could the funds received be re-allocated so none of it is directed toward national programming. Matt said this type of negotiation could take place after the funding amount is announced. Also discussed at the NFCB conference: how would cuts be distributed. Would bigger stations, who rely less on the CPB funds, get a bigger % of the cut. Willie has put together the structure of the budget for next year. Mary suggested he prepare two budget scenarios for 2012. One with a wish list of expenses then put in the revenue needed to support those expenses. In the other scenario, the expenses would be the same. Reduce the CPB portion of the revenue t by 25%. Then the Finance Committee will consider which expense lines need to be cut. The reggae concert lost $15. The media conference at Unity College had $750 net revenue. The next meeting will be either October 17 or 24, depending on the date of the Board meeting. Lynn

WERU Finance Committee October 17, 2011 Present: Willie Marquart, John Van Amringe, Sylvia Smith, Matt Murphy, Lynn Soucy. The minutes of the September meeting were approved. Matt received e-mail notification that we would be receiving the full CPB grant in the new federal fiscal year, so Willie recorded a receivable for the amount we expect to receive before the end of 2011. We also expect to get the$20,000 bonus grant next year, without application. Revenue looks good for the month of September and for the year to date. Willie has been doing the billing for underwriting contracts. Expenses are mostly in line with budget. September expenses were$800 below budget, and year to date expenses exceed budget by$20,000. A big piece of this is the audit cost, which exceeded budget by $3,750. Lynn will call Mike Nickerson this week to set up a meeting to discuss the audit cost and things Willie and Sylvia could do to reduce those costs. Overall, we had a net gain in September of$24,000, compared to a budgeted loss of$21,000. For the year tq date the net loss of$19 ,778 is much better than the budgeted loss of$54,500. Willie has drawn another$9 ,000 on the credit line since September 30. The balance is now at$17,500. Discussion of the proposed budget for 2012. Willie has done two proposed budgets for next year, one which assumes full CBP funding, and one which assumes we will not receive the grant in the second half of the year. Both project general membership revenue to rise by 3.28%, a 1.9 % decrease in major donor funding, business membership flat, and a 7.37% increase in underwriting. This leaves total revenue decreased by $18k in the first scenario, $67k in the second. No change is projected in salaries. We are looking at four health insurance plans for next year, plus Dirigo. The budget includes a 23% increase in health insurance costs. The first budget projected would produce net income of$14k in 2012; the second one would produce a $35k loss. These budgets will be presented to the Board next Monday night. Matt asked if this is the year we should include funding for a part time Development Director, perhaps one day per week to assist him in Major Donor growth. The Finance Committee is interested in this approach. Matt will have a proposal ready for the Board meeting. The Capital Campaign is now at$50,000 including verbal promises. The next meeting will be November 14, 6:30pm at the station. Lynn Soucy

WERU Finance Committee November 14, 2011 Present: Willie Marquart, Greg Rossel, Jon Van Arniinge, Mary Kellett, Sylvia Smith, Matt Murphy, Lynn Soucy. The minutes of the October meeting were approved after correcting the spelling of Jon's first name. We reviewed the October financial statements. The major donor line is up significantly because of a recent gift. Some business memberships have come in early; more underwriting has been sold. Revenue for the month of October was $35,093, which exceeded budget by almost $15,000. Revenue for the 10 months exceeds budget because of the extra grant from CBP, the unexpected gift we received last spring, and the recent gift. Lynn said she will call Mike Nickerson about a meeting and the audit costs. Discussion of the audit. We have it done solely for the requirements of the CPB. The Finance Comm authorized Lynn to put the audit out for bid. Matt and Willie have talked to the loan officer at Bangor Savings Bank about funds for our transmitter. The loan officer suggested we set up an additional $70,000 credit line to cover the cost of a new transmitter in an emergency if necessary. Mary asked how long to get a transmitter after ordering it, Matt said about a month. Jon asked the final amount on the November pledge drive. $24,000, which is about $10,000 short. Mary asked what we know about CPB funding for the future. Willie said we have been granted the usual funding in the current federal fiscal year. We are expecting one-half of this, about $51,000 ($37,000 unrestricted and $14,000 restricted) before the end of 2011, and the remaining half after the audit is done and the CPB report is filed next year. Plus a CBP rural bonus. We do not know if there will be another grant in the next federal year, and we will probably not know that until well into 2012. Lynn asked if the revenue lines should be brought to the Development Committee. Matt said they will be primarily interested in the Event line and he will discuss it at the next Dev Comm meeting. Discussion of the 2012 budget. Matt said if we had a full fledged major donor campaign going at this time, the funds would go to the transmitter. He does not believe we can raise that line on the proposed budget. We decided to leave the revenue lines as presently proposed. Mary asked what expenses have been cut in this proposed budget: conferences and workshops. Discussion of our health insurance. We have been paying for health insurance for five employees, plus paying for health care costs for employees who are covered under their spouse's plan. Mary pointed out that the current policy says we may offer additional compensation to employees who do not use our plan, not we must offer that compensation. We have been paying for health insurance for five employees, plus paying for health care costs for employees who are covered under their spouse's plan. Two people are planning to switch their coverage to spouse's plans after the new year. Mary asked how much we will save when we lose two people from the plan. Enough to pay a 3 to 5% salary increase for all employees, and the committee determined to put this salary increase in the budget. Mary asked if there would be enough for the part time development position. No, and Matt said he is comfortable with giving up this position. He will have to move some of his duties to other staff. Matt reiterated that we will pay the employees' premiums for our health insurance policy. If an employee is covered by a spouse's plan, we will pay them the cost to their spouse, up to the amount we pay for our own plan, but not in excess of that amount. We will increase salaries by 5% as of January 1, 2012. The next meeting will be Monday, December 12, 2011, at 6:30 pm at the station. Lynn Soucy

WERU Finance Committee January 9, 2012 Present: Mary Kellett, Willie Marquart, Sylvia Smith, Matt Murphy, Bill Lippincott, Jon Van Amringe, Lynn Soucy. Sylvia has developed some information on major donors which presents information on #'s of donors, total given by donors at different levels of giving, #'s of sustainers, from 2008 through 2011. She would like to know what key metrics the Board would like to see. We had a discussion of moving toward a graphic representation of financial representation. We reviewed the accrual basis income statement for December. Willie has made most of the year end adjustments to these financials. Underwriting revenue was below budget for the month and for the year to date. The auction revenue was better than budget by about$2,000. Salaries expense includes vacation accrued at end of year. The December financials show$25,183 net ordinary income for the month, and$66,685 for the year. Net income after all activities was$32,118, subject to audit. Jon asked Willie about the level of detail he does at year end. Willie said he accrues any uninvoiced bills, and does as much of the year end adjustments as he can find information. He understands that the less we give the auditors to do, the less time they will spend here. In 2011 he has recorded what we paid as audit expense. He intends to hold the audit expense to the amount of our contract. We received a$14,400 archive grant from the CPB, of which we have received only$500 in cash. We have four people working on this project, and all of the revenue has been recorded. Willie will reduce the receivable, and reduce the revenue to the amount actually received. The line of credit has been at zero since December 9, 2011. The application for the additional LOC is still pending. Adam Lacher will be leaving, but Matt has arranged with him to continue preparing Salt Air. This will be the only additional salary expense expected. Discussion of Salt Air. Mary feels we do not need this; Matt feels we should have something in its place, perhaps a newsletter. This will be brought to the Board. The next meeting will be Monday, February 13, 6:30 pm at the station. Lynn Soucy

WERU Finance Committee Minutes- 2-13-12 Present: Jon Van Amringe, Mary Kellett, Matt Murphy, Willie Marquart, and Sylvia Smith. Absent: Lynn Soucy, Bill Lippincott Audit for 2010 has been paid off at mutually agreed$9 300. 2011 audit work will begin on 4-17-12. Willie will ask for an engagement letter. Sylvia handed out an audit summary. January minutes were amended: changing "500" to "8640" in reference to the archives project. Willie added that$6450 of the$8640 has been spent so far. January's numbers: Trade expense is heavy in January. Membership is higher. Sylvia's plan to move membership donations from the end of the fiscal year to its beginning has been successful, with 36 so far. We didn't receive the$20,000 bonus grant in January but should expect it in a month or two. Legal fees have been expended for our two-year relicensing process. Budget amended recommended to the Board- add$2700 to the conference line. Budget will still be in the black. The 2012 fmance committee charter was reviewed and revisions made. Will vote at next meeting. Sylvia shared diagrams. Would like a shopping cart on the web site to collect more membership data. Next meeting: 3/12/12 at 6:30 pm. Minutes by Mary Kellett

WERU Finance Committee March 12, 2012 Present: Matt Murphy, Jon Van Amringe, Lynn Soucy, Willie Marquart, Sylvia Smith, Mary Kellett, Bill Lippincott. Minutes of the February meeting were approved. Discussion of the shopping cart we should have on our website. We should be getting enhanced info re those who make on-line contributions. Sylvia handed out a document she has prepared showing pledge drive information by show during the last pledge drive, including #'s of new members, #'s of pledges, and$ pledged. Willie said we need to raise about$4,000 this quarter, and that is a concern. Willie discussed the accrual basis P&L statement. February income of$51,683 is below budget by$4,470. Year to date is below budget by$13,143. YTD expenses are below budget by $9 ,9 15, so the year to date net income is off by$3,227. The CPB has instituted a new layer of reporting requirements in order to receive funding. Jon asked if the budgeted income is equal for each pledge drive. Willie said no, the first and third are about the same, the second is the lowest, and the fourth is the highest, based on history. Bill asked why business membership was down for the month of February. Adam used to call business members before pledge drives; the new Business Manager will be making those calls now. She started last week. The unrestricted bonus grant was budgeted in February, but did not arrive. Willie received an e-mail saying we have been approved, and we should get this soon. Jon asked if we have an engagement letter from the auditors. Willie said no, consensus that we should have it by now. They will be here to work the first of April. Willie will call and ask for an engagement letter. Willie said that we do not charge tax on the reimbursement of health insurance for one employee, because it has already been taxed by the state. Lynn is not comfortable with that, and will look into the correct tax treatment of that. The capital campaign is still underway; soon we will be going to the general membership over the air. We have raised about$90,000. After relatively quietly raising this amount, we will have promos on the air for the rest. Mary asked about parties. Matt said there may be one or two small ones. The birthday party in May will be a fund raiser for the capital campaign. Hopefully we will have Jim Hightower here in June. Bangor Savings Bank gave us a grant of $5,000 for this campaign. Jon asked who solicited this, and Willie said we have many connections to BSB. They are fmishing the special line of credit; we have recently paid some legal fees in connection with this. The next meeting will be Monday, April 9 , 6:30 pm at the station. Lynn Soucy

WERU Finance Committee May 14, 2012 Present: Willie Marquart, Bill Lippincott, Lynn Soucy, Jon Van Amringe, Matt Murphy Willie said the audit is well under way, it may be done this week. The auditors believe that the $20,000 CBP bonus grant that we received and recorded in 2012 was authorized in 2011, and should be recorded in that year. That will make this year's revenue less than expense, and 2011 will be a good year. They may want us to report car donations differently, using the total revenue and expense amounts, not just reporting the net amount. We had two car donations last year. This puts some donors into the Major Donor category, because we sometimes receive a few hundred dollars for a car. We reviewed the April financial statements. Income is right on the nose except for underwriting. Lynn asked if underwriting revenue will come back and Bill noted that it had already come back some from last month. Caren is already making headway. Bill said Salt Air advertising is down. Matt said. the the Board is in agreement that we will be doing something smaller for our print communication, perhaps an 8" x 11" page folded for mailing. Jon suggested we may be able to replace the advertising revenue with sponsors for the new document. Most expenses are right in line with budget. We will be directly paying the health insurance bills of an employee who is not on our plan, which makes the tax issue go away. Mike Nickerson has approved this, and the Committee was glad for the resolution. In April we incurred about $2,300 in legal fees in connection with our 102.9 frequency going dark a few years ago, so the legal line is over budget for the year. Matt said that the Board had approved his attendance at the NFCB conference this year, and the cost of that would be about $2,300, so he is opting not to go to that conference, and gain some savings. He also said that it may be difficult for him to be away during June, with the new transmitter arriving that month. Jon said he does not think Matt should give up the conference because of the legal bills. If Matt thinks he should be here all of June because of the transmitter, that's one thing, but Matt should not give up the conference because of this unexpected expense. The committee agrees. The loss for April, $16,628, was less than the budget loss by $1,562, and the year to date loss, $32,037, was grater than budget by $3,512. Review of the Balance Sheet. Willie has gone through old records from the 1980's and early 90's, and identified a lot for shredding. He will continue to review old documents so that our archived documents are in line with our document retention policy. He also will be working ·on the list of fixed assets, and removing assets that are fully depreciated and we no longer own. Lynn asked if there is enough money in the savings account to pay for the transmitter and related expenses. Willie and Matt said yes, there is or there will be by the time it is needed. There is about

$16,000 in pledges outstanding. Jon asked if any of this is uncollectible, and Willie said no. We will pay for the transmitter in 3 installments, when we order it, when it arrives, and several months later. Willie mentioned that we have a large operating pledge outstanding from a major donor, and we should be getting $52,000 of the CPB grant around the middle of June. He intends to pay down the credit line at that time. The minutes of the April meeting were approved. 1

Discussion of the statement from Maine Community Foundation. Willie got this because he asked for it, and will continue to ask for it quarterly. Jon said he is willing to monitor MCF' s assets manager. Lynn said that Richard Paget has already offered to discuss our investments with MCF, and Matt said he will put Jon and Richard together on this. Matt presented a schedule of costs associated with the transmitter. The Finance Committee would like to see this expanded to identi fy in which month the expenditures will be paid. The Finance Committee recommends the Board approve the purchase of the transmitter. The next Finance Committee meeting will be Monday, June 11, 6:30pm at the station. Lyn Soucy

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WERU Board Committee Charter (To be reviewed annually by the Board and each Committee.)

Committee name:

Finance Committee

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Mission: The Finance Committee monitors station fmances and business practices and central database maintenance and utilization to insure the best use of membership support and other revenue for the fiscal health of WERU. The committee works with the Finance Manager, Database & Membership Manager and General Manager to develop the annual budget, subject to Board approval. The Finance Manager, Database & Membership Manager and General Manager work in close collaboration with the Finance Committee. Membership: Lynn Soucy, Chair; Mary Kellett; Matt Murphy; Willie Marquart; Sylvia Smith; Jon Van Amringe; Bill Lippincott Meeting Frequency: Monthly; second Monday at 6:30 pm. Relationship to other Committees and Organizational Entities: Finance manager prepares monthly reports for the Finance Committee; the Finance Committee consults with Development Committee in preparing the revenue lines of the annual budget. Database & Membership Manager prepares quarterly reports for the Finance Committee. Goals and duties for the current year: Continually monitor station expenses and revenues to be sure that budget guidelines are maintained, offer suggestions and guidance for expense savings, work to maintain positive cash flow in order to fund equipment purchases, establish an equipment fund and other funds for unanticipated needs. Re-assess 2012 budget in June 2012 or as needed. Monitor national events and make budgetary recommendations based on Congressional action. Review Finance Policies and Procedures. Develop quarterly database report. Prepare realistic, reachable, and positive cash flow budget for 2013. Reporting: Monthly balance sheets and profit and loss/budget comparison statements prepared by Finance Manager, and reviewed by the Finance committee in detail at its next monthly meeting, and provided to the Board at its next meeting.

Date Charter approved by the Board:

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WERU Board Committee Charter

(To be reviewed annually by the Board and each Committee.)

Committee name:

Finance Committee

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Mission: The mission of the Finance Committee is to provide stewardship for the station's finances, ensuring the best use of membership support and other revenue toward the production of community radio. Membership: Lynn Soucy, Chair; Mary Kellett; Matt Murphy; Willie Marquart Meeting Frequency: Usually monthly; second Monday at 6:30 pm.

Relationship to other Committees and Organizational Entities: Finance manager prepares monthly reports for the Finance Committee; the Finance Committee consults with Development Committee in preparing the revenue lines of the annual budget.

Goals and duties for the current year: Continually monitor station expenses and revenues to be sure that budget guidelines are maintained, offer suggestions and guidance for expense savings, work to maintain positive cash flow in order to fund equipment purchases, establish an equipment fund and other funds for unanticipated needs. Re-assess 2011 budget in June 2011. Monitor national events and make budgetary recommendations based on Congressional action. Review Finance Policies and Procedures. Prepare realistic, reachable, and positive cash flow budget for 2012. Reporting: Monthly balance sheets and profit and loss/budget comparison statements prepared by Finance Manager, and reviewed by the Finance committee I detail at its next monthly meeting, and provided to the Board at its next meeting.

Date Charter approved by the Board:

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