November 2016 Finance Committee Report

Post date: Nov 13, 2016 11:3:44 PM

At the October 2016 meeting, the Finance Committee took up the following Board Question: Would it be fiscally prudent for the Board to spend the $9,000 2015-16 budget surplus?

Finance Considered this carefully. We do have adequate fiscal reserves, so there is minimal risk. We would prefer that the unrestricted net from the prior year be put into the reserves. The Board at any time can decide to spend down the reserves, if they can make the case that there will be sufficient benefit from the expenditure. We would prefer that investment in projects (such as outreach) be planned out carefully, with articulated expectations.

Alternatively, the Board can consider new initiatives when preparing the following year’s budget, which is the more prudent and common practice in cases like these. Then the Board could choose to either budget for the expense, or spend down reserves to pay for it.

The Finance Committee recommends that the Board take this second approach, planning for the next fiscal year. The Board would do best to take carefully planned actions, with clearly articulated goals and expectations, and a timeline and budget that give the project the best chance at success.