concern. they are spending more than they take in. therefore, he does have some pressure on him to break even this year. just having a loan is not going to help him. he needs to have work. based on his comments tonight and what he has been telling us for six months or longer, he is committed. i think we should support him. commissioner norton: thank you for the presentation. i want to follow up for a minute on what you just talked about. you mentioned that the loan would be paid back with interest, but in the requested action it does not say anything about it. it just says it will be repaid -- will be reimbursed to the district. i do not know if we need to amend that. >> if you like, you can amend that. it was always understood would pay interest based on the amount of money received from the city pool. commissioner norton: what is the source of the funds we would be using for the credit? >> it would be the general fund. commissioner norton: the unrestricted general fund? we do not anticipate that are going to be drawing down that hole $200,000 at one time -- whole $200,000 a one time. does that put pressure on our own cash flow? >> it does not right now, but they could run up to $800,000. not at one time. commissioner norton: so you anticipate that the way he would use this is by making withdrawals, essentially. >> we would do withdrawals. basically, we pay the bills. we control kalw. we will give them money when they need it. commissioner norton: it is either pay the bills or do not pay the bills, essentially? >> they did $178,000 in the month of december. they spent 110,000 a month. -- i am sorry. $148,000 a month. the had a negative position of somewhere -- let us say $120,000 right now, with my understanding to fund-raisers coming up over the next six months. commissioner norton: mr. martin, a kind of wanted to get your response -- i kind of wanted to get your response. i am looking at the auditors' report. the line saying from the auditor that there is substantial doubt about the station's ability to continue is a concern. i wonder if you can respond to that and give your response to that statement. >> i think we have a great opportunity? this question does come from a couple of years. we have been in a position where we go on the air, we ask listeners for support, and from that have been able to run a very successful operation. the situation has changed to where that is not adequate to do what we need to do to serve this community. in the past year, we have been working on developing relationships with the major donors, at being in a position to identify foundations as their copper's comeback and they are in a position to take on grants. -- as their coffers come back and they are in a position to take on grants. the work we are already doing -- when it comes to funders, we have a good track record. we are drawing the attention of some folks who have money to support public media. when we have looked at who our current donorsi think there is e -- low hanging fruit. we can translate into make that support go a long way. we have a huge opportunity to do that. she is not someone who is the fund-raiser. and so, we have different perspectives on that. in the work that we have done with the philanthropy project, working with people from the public radio fund-raising world, i see the success stories that have happened at other stations. that is what we are focused on in our interviews and head of the development effort. what you're experiencing is creating a strategic fund- raising plan. can you create a balance that is the bread and butter and also looking at foundation support. president mendoza: i really appreciate the work you are doing. it is my understanding that we're the only school district and they used to be more than held licenses. >> there are some others. president mendoza: i know that i talked about this the last time you were here. i thought the documentary that you did was fabulous. i would love to see more collaborations' like that. at this point, i don't really have an objection to the support that you are asking for. it worries me because when you have been here before, times are tough. it does worry me for the future because i want to see the station be stronger and continue to be strong. our mission has to be financed independently. >> i want that, too. commissioner yee: you guys have great programming over there. they worry about global issues, national issues, and local issues. a couple of things. the last time you came here, you mentioned some new programming. you were pretty excited, you were mentioning it at the time. you were involving the students of the more. that is one thing. if you're still doing that, we should know about that. i guess, i am hearing that your reserves are all gone at this point. >> they are all gone. commissioner yee: i just wanted to make sure of that. i like your idea of the advisory board. i am surprised that this board has not challenged the station to have this. when you create this, i recommend you ask the board of education to have a sitting representative on the advisory said that there is more connection between them and us. >> i would welcome that. >> i am sure -- i am not sure what you're referring to from my last report. one of the things that has changed for us is that a good amount of it, my kind of feeling is that we have a high school here. one of the things that is changed their is the status of journalism. it is part of an after-school program rather than being part of the curriculum. it was one of the best ways we had -- it was a perfect opportunity. we had a set of students that were engaged. i am still working with them in some other capacities. but that provided a lot of opportunities, we had students sit on the editorial meetings. we had a number of guests. we would go and say, how do you have a student with experience relevant to that? that is the best way, to make them part of the larger conversation. unfortunately, it does not give us that easy place to go and say that your students clearly interested in journalism. i will tell you this past year, for me, i have been working very hard on the development questions. it has left a little less space for having that day-to-day relationship. that a sum of the challenge. >> i know how much time you have in terms of engaging each student -- i don't know how much time you have in terms of engaging each student, but i would love to know about it so that i can listen to it. >> i should send you an e-mail. commissioner murase: i want to thank you for your effort on this. it seems like you have been working alone for a long time. >> there are a lot of us working out than there. >commissioner murase: i would be happy to be our resources in the journalism world -- in the journalism world. have you had a chance to explore if there are similar types of revenue? when i was in high school, i was engaged in the journalism program. it is such an important component of education that i would really support efforts to connect the national association. >> there is a great deal of money in those organizations. most of the places we found support for doing local journalism comes from the corporation for public broadcasting or from local foundations. media is one element of it. the means seeking of support -- do you mean seeking out support of student journalists? that might be the way to go. >> looking at your schedule, i of see any district programming at all. i am wondering if you have a few comments, and do we utilize this for advantage in terms of getting information out and having a show that highlights some of the things that we are doing. >> we are certainly an outlet for school district information and inviting people to forums and doing teacher recruitment. we provide space for those announcements. we don't have a dedicated place for information about the school district program like you are talking about. >> i think we should have a slot or the superintendent speaks regularly are we have a place for a teacher or principal to do something on a regular basis. it just seems to make sense. on the short full peace, you are saying that the 200,000 won't really cover the shortfall, so you're having to raise some more. what is the shortfall? >> he basically needs $1 million to break even. >> we are only going to give you 200. so you will fund-raiser for the rest? >> he will do that for the whole budget. it is just a bridge loan. he doesn't have to go out and find it. he has some fire under him. president mendoza: i still feel strongly that we should have some -- >> we have discussed some options, and there are a lot of the opportunities there. it is a matter of looking at ways to make that work. i appreciate the encouragement and i think we will continue to pursue that. commissioner fewer: i just want to say, it is disappointing that the journalism class was canceled considering it was wrecked on the campus. i can appreciate the fact that among all of the nonprofits, you are looking at development right now. you're looking at it more aggressively, and i think they have all had to become much leaner and redirect the development efforts at a different way. and going after those dedicated listeners in supporters you have had for many years. and i want to also mentioned a thank you. i think this is also a good idea for us to do. i am glad to hear that we are financially able to do it. i also want to mention to anybody, especially to my fellow commissioners, if you want to help out at one of the fund- raisers, we have done that. when you do that, you hear how people in the answer telephones of actual listeners. they tell you how much they love a particular program that you have. people say that they love the spotlight on the local musicians. people have their favorite shows and they take those donations. that helped to boost the spirits of the fund-raising. we are going into a couple of hard years. it is going to take a lot of generosity on the folks that are able to be generous at this time. i encourage everyone listening to send a donation. commissioner wynns: i really appreciate the reports that we have been getting. i think that in a better world, we should be investing in the station and that is a way for us to really have more of a partnership to use it as a resource for the school district. i didn't want to be critical about this, but i wanted to mention that we are trying to build a development capacity within the school district, and that is something that we might look at. we could apply for funding or integrate this into our fund- raising on a regular basis. i understand that we really don't have much capacity to do that. as we do work on that and hopefully get better at it, i am hoping the station will benefit from that and the opportunity for us educationally. i wanted to say that the listeners are the most faithful and enthusiastic public radio consumers in the bay area. every time there has been discussions, there was a board -- how you see the enthusiasm and the love of the station that is expressed by listeners and supporters. i think it is good that we are capable of doing this. of will have success in the future. -- and i hope that we will have success in the future. commissioner murase: i wanted to make sure that i stayed because i really enjoy your presentation every year. i just love it. commissioner yee was with us that one morning. i don't know what time of the morning it was, 6:00? just to hear their loyalty, and they were so surprised that we were there. it was my pleasure to hear about how much they cared and they were ready to renew their membership. the renewed it that day because they hurt us in the morning. other community members were there as well. if i understand correctly, folks can donate tonight at www.kalw.org. they are listening to the presnt -- presentation and they can go there tonight. the first of the year has passed. maybe you can contribute a little bit. i love the station and i love the show. again, having heard from some many dedicated listeners already, i want to encourage you it is a really different perspective. i was completely renewed and rejuvenated. >> not only are you welcome, but i will make sure that you have the opportunity to talk to some of the listeners. you can come up to the station sometime and see and to meet some of the people that are involved. i come to you once a year, but i do think that should be aware that ends. -- do not think that should be where that ends. >> since we discussed the item, we can vote. it is severed, but we talked about it now. >> did you want to add the interest to it? president mendoza: we can do that when we -- yeah. okay. thank you. nice tos ee you. -- to see you. superintendent, you have another item. >> he's on a roll tonight. >> i would like to introduce my partner to give you a presentation on our annual financial report for fiscal year 2009-2010. she is the senior partner on the san francisco unified school district financial audit. but like to know -- i would like to note [unintelligible] along with their staff, they have a huge role in the overall success and completion of the actuals and the audit itself. we take up six months to do both in order to work with the auditors that is very time- consuming. you don't hand things over and that is if during the year. all the way in the back? i now pass it on to give the presentation. >> we are other jurors and we are independent, and we're looking for stuff -- and we are auditors, and we are independent, looking for stuff. it is better when you have good people working with you. they are couple of the people that worked in the finance area, and they have been a great help to us. we always get what we want when we needed. we set a schedule and everybody keeps to that schedule. we have never had any disagreements with the staff. everything is presented on time. it makes for a relatively smooth process, but this is a large district and take a long time to get anything done. we are very appreciative to be able to do that. if you have a copy of the audit report, it is a big report and i don't want to go through every number, but these are basically the financial statements. we give opinions on various aspects of the system. we express an opinion as to whether or not they are fairly presented. it is an unqualified opinion, which means we believe everything to be fairly stated. we also issue opinions on compliance with federal and state programs. those opinions that you will find in the back of the book are somewhat the subject to some of the findings that we have. it is important that we go over some of those findings and give you an understanding of what those findings mean and why they are in there. again, from a financial statement standpoint, we had no financial statement findings. we had one audit adjustment but it did not impact the restricted fund balance item. i would like to be able to go through and it is the federal findings in the state findings. ago when someone brief detail, if you have questions, we can answer those questions. with respect to what i consider to be the significant findings, the issue with respect to multi- funded teachers, we have discussed these items with staff and have had several meetings with them. at the end of the finding is a response from the district that the staff has prepared and presented. this is not coming as some great surprise to people. we have been working with them over the course of the audit and we have met with them on several locations to make sure that we have our facts straight. and properly show the finding as to what it really is. i dunno if you have a copy of the audit report with you, and i will not go into great detail here, but the findings begin on page 89 of the report. the first relates to child-care development. what this binding is is you are supposed to have a form on file for all of the kids that you serve. we know that this lags in the fnid -- findings. you have a child that would be served in the program for september and october, but when we see the form, it is signed in december. that means that someone could question that and say that the child was not authorized to be