The committee reviewed the revised FY20 budget based on actual revenue and expense projections. Lynne will add a note about the increased Space & Services Agreement in the narrative.  Lynne was asked to take one more deep dive into known savings and show them on the budget revision.  Once Lynne releases the contingency and identifies other areas cost reduction the FY20 Operating Budget revision is ready to present to the Board for approval.  Lisa asked for a note about the increased surplus being identified as increasing the cash reserves which is one of the goals set by SGP.

The committee reviewed the December financial reports and had a brief discussion about how projections change as new information is received each reporting period.  The committee identified potential areas of savings we are starting to see in the projections that should be included in the FY20 Budget revision.  Lynne expressed that increased spending will happen in the next 3-4 months regarding the BARR grant, the high school expansion work and the potential early hiring of personnel.  Matt asked for a detailed spending report for the Branding and Development line once the BARR grant spending has happened.  Tony and Denise raised the point about the Debt Service Ratio and meeting the covenant and Lynne asked if Denise would look at the long range budget planning to make sure Friends is prepared to meet the covenant. Lisa suggested holding back some of the Management Fee earnings to increase the surplus in Friends to aid meeting the covenant as an option.

Finance Committee felt strongly that the increase of employer premium contribution to 60% is good for the organization and staff retention, so are agreeable with management's recommendation as suggested by HR Knowledge.  The committee agreed that the increase percentage to the overall budget made it a management level decision, so no need to go to the Board for a vote. The board will vote on the FY21 budget which will include these increases.

Lynne informed the committee that the roof project RFP has gone out to bid and that it is expected that a the project will start this Spring 2020.  All other aspects of the Capital Plan were reviewed and no changes recommended at this time.