AIM Lays Off Entire Staff Amid Concerns Over Financial Audit

ARLINGTON, VA — After evaluating its current fiscal situation, Arlington Independent Media laid off all of its staff members at the end of business on Monday. In addition, AIM's Board of Directors met in emergency session to elect new officers.

"This decision was not made lightly, and we understand the impact it will have on both our team members and the community we serve," CEO Whytni H. Kernodle said, in a letter sent to AIM supporters on Monday evening. "We want to express our deepest gratitude for the dedication, passion, and hard work that each member of our team has contributed to AIM over the last two and a half years."

Admitting that announcement would come as a shock to many, Kernodle said that it was made in the best interest of sustaining AIM's mission and ensuring its viability going forward.

Kernodle's decision to step down came just days after Christopher Judson announced his resignation as AIM's board chair, citing a difference in visioning among AIM leadership regarding the future of Arlington County's public access media outlet.

"The more expansive version is not achievable in the current financial environment, especially considering the recently proposed County budget for the upcoming fiscal year," Judson said, in an email sent on Thursday. "In light of that I have stepped down from the board so that others can take the next steps, which include responding to the audit and and refocusing the organization on community broadcast. I wish them and the organization success in that endeavor."

On the same day Judson resigned, an open letter signed by 16 AIM members and former board directors accused the current board of reckless management of AIM's financial obligations.

"AIM leadership has failed to fulfill basic financial and governance accountability requirements," the letter said. "These fiduciary and governance duties are foundational; failure to complete them results in possible loss of corporate and/or nonprofit status and jeopardizes funding."

The letter also sought to "set the record straight" regarding claims about AIM being imperiled because the Arlington County Board was withholding funds until the completion of an audit.

"AIM is not in financial peril because Arlington County is withholding funds that were allocated for the organization’s use," the letter said. "In fact, AIM has received almost $2M in support from the County in the last two years."

The letter goes on to say that AIM leadership appeared to misuse Public, Educational and Government (PEG) funding received as part of its Cable Franchise Agreement with the county, spending it on salaries, occupancy or office operations, which was prohibited.

In response to the letter, AIM's Board of Directors held an emergency meeting to elect new officers and to chart a path that would allow the organization to move forward.

"We want to assure you that amidst all the current turmoil, the Board is standing firm for AIM, and that as a body we are taking over operations of the organization for the time being," board secretary Claire Seaton said in a letter sent out to members Monday night. "We are committed to the survival and flourishing of Arlington Independent Media and its longstanding legacy of community media production. This will take grace and grit, but we will get through this."

Seaton said that there would be a season of belt-tightening that the board hoped would be temporary.

"The Board believes that AIM has the potential to achieve an ambitious new vision of what public access, community-produced media can be in the 21st century, but we have to take some necessary steps to get there," she said. "We need to rebuild trust, conduct a financial audit, and return to radio and TV production. We will conduct ourselves with kindness, and we will do things by the book. There are dedicated volunteers ready to carry us through this, and we look forward to this community coming out stronger on the other end."

The board also voted unanimously to hold a Special Meeting of Members on April 17, at 7 p.m. in the Black Box Theater at 3700 Four Mile Run Drive. The date and time aligned with a request made in the letter from former board members, which included the following provisions:

• The agenda for the meeting is the removal of AIM Board members unwilling to address the failures of accountability, detailed above, and approval of actions to work toward the organization’s return to good governance and accountability.
• Quorum at all Membership Meetings is achieved with 10% of the (voting) Membership present, by proxy or absentee ballot. (Article I, Section E)
• Removal of Directors requires supporting vote of 2⁄3 of those voting. (Article II, Section D).

ARLNow broke the story last week, reporting that AIM was undergoing an audit that had been initiated by the county in February.

“The Arlington County Board and County staff continue to monitor requests made by Arlington Independent Media for PEG funding, and are performing due diligence in reviewing previous expenditures before determining next steps,” county spokesperson Ryan Hudson told ARLnow on Thursday.