Responding to a June 15 auditors’ report expressing “substantial doubt” that the Pacifica Foundation has the financial wherewithal “to continue as a going concern,” Executive Director Arlene Engelhardt recently notified the five Pacifica radio stations to prepare for deep cuts in their budgets and staffing. The audit, which examined the foundation’s finances for fiscal year 2011, was the second consecutive report questioning Pacifica’s financial viability. Although Engelhardt disputed the auditors’ warnings — “We can always take to the air and raise money,” she said — she directed the stations to make cuts of at least $1 million from their collective budgets. The reductions were to be made immediately, but at Current’s deadline, decisions being made at local stations could not be confirmed. While Pacifica has made substantial progress in reducing its operating deficit from $2.7 million in fiscal 2009 to $564,000 in 2011, “we still have not made inroads on the debt,” Engelhardt said in a telephone interview.