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KOOP Trustees misappropriate funds
Station nearly broke
by Ricardo Guerrero, 9-9-98 (edited by M. Bluejay)

 

Dear friends, programmers, and all concerned about the station:

 

As you may know, KOOP received a $5,000 grant this summer from the Elton John Foundation for helping to promote awarness of HIV and AIDS. Former programmer José Orta had applied for and received this grant which was made out to KOOP Radio in support of his show "Radio Active." José left KOOP because he felt that KOOP was a hostile environment for homosexuals, and he referred to Friends of KOOP as a "group of fanatics" who are anti-gay. In point of fact, we're strongly pro-diversity, and we've released a public statement condemning personal attacks, including those based on sexual preference. But since José felt that KOOP was a hostile environment for gays & lesbians, when he left he also requested KOOP turn over the $5,000 Elton John grant to Informe SIDA -- a non-profit that José apparently used to work for. The KOOP Board of Trustees passed a resolution donating $5,000 from the station to Informe SIDA.

 

However, it appears those $5,000 had already been tapped into by the station for operating expenses. Where did the money come from that was sent to Informe SIDA then? According to station Assistant Manager Ellen Stader, the funds to make that donation came out of the station's Equipment Fund. Furthermore, it appears the Equipment Fund has been used to pay this month's operating expenses.

 

Last May, KOOP had a one-week mini Fund Drive to raise money to improve the station's equipment and eventually replace the aging control board. Approximately $6,000 was raised and placed in a separate bank account for the station. Some of it was used to purchase some equipment and make repairs, leaving approximately $4,800 in this account. According to Ellen, this account was drained to about $65, while the station's checking account has a balance of approximately $300 after all outstanding checks clear.

 

It would appear the $5,000 given to Informe SIDA by the station was funded in large part by using the Equipment Fund to pay for it. This is obviously a misappropriation of funds and, given the tenuous financial of the station right now, may even be illegal. I believe the legal term is malfeasance? [Ed. note: It's definitely in violation of FCC rules, which require that funds actually be used for the announced purpose for which they were solicited.]

 

Thanks for your continuing concern and support for the well-being of KOOP!

Sincerely, and kooperatively, ricardo guerrero

At the 8/24 Board of Trustees meeting, trustee Mac McKaskle said that KOOP would be returning the $5,000 Elton John grant because "KOOP could not accept the money in good faith", since the grant was supposed to go to organizations that support gay, lesbian, and AIDS issues, and that KOOP has failed in that regard because the environment at KOOP is supposedly hostile to these issues. Community Board member Eduardo Vera then suggested that KOOP also return grant money from the City of Austin (around $14,000), since KOOP is hostile to underserved communities.

Naturally, we feel that the claim that KOOP is hostile to underserved communities is absurd. Mac himself produces a program called Queer Waves on KOOP. And while Mac has tried to portray Friends of KOOP as anti-gay homophobes, he ignores the fact that some of his biggest critics in Friends of KOOP are also members of the gay community. As we've stated repeatedly, we're Friends of Diversity as much as we're Friends of KOOP. We're angry that board members continue to slander us without every providing any examples of the wild claims that they're making about us. (In the meantime, note that our own website is filled with specific examples of the board's actions.)

But getting back to the point about returning the grant money, KOOP's entire operating budget in 1997 was only $75,000. Returning $5,000 or $19,000 worth of grant money could be catastrophic to say the least -- there might not BE any KOOP Radio in a couple of months if we give this money back. If the board really has the best interests of the station at heart, then why is it taking a direction that puts the entire station in financial jeopardy? Has the board decided that they're going to be recalled, and if THEY can't run the station, then there's not going to be a station for ANYBODY ELSE to run, either?

And if KOOP can't accept grant money in good faith because we've failed in our mission, then how can we accept money from our members, either? Why are we even going to bother having a pledge drive? Why is the board continuing to serve, rather than resigning, if they feel that KOOP has failed in its mission? If they feel that they need to stay to help KOOP work toward fulfilling its mission, then isn't giving our money away the exact OPPOSITE of working to save the station?

And unfortunately, this isn't the only example of questionable financial management. The board has apparently spent nearly $2,300 to mailout its own political spin to KOOP members to try to convince the membership not to recall them.

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