WSBA Financial Report for the Fiscal Year Ended September 30, 2008
Strategic Financial Goal
The WSBA's strategic financial goal is to be fiscally responsible: to operate a well-managed and financially sound association, to be accountable to our members and the public, and to use our resources wisely in ways that accomplish our mission.
Fund Categories
The WSBA accounts for revenues and expenses in four categories: General Fund, Continuing Legal Education (CLE), Sections, and Lawyers' Fund for Client Protection (LFCP).
General Fund
The general fund consists of our regulatory functions and most services to members and the public. It is funded by member license fees and revenues from services. For FY 2008, the general fund had expenses in excess of revenues of $182,443. As of September 30, 2008, the general fund balance was $5,240,955, of which $1,500,000 is designated as an operating reserve, $2,500,000 is designated as a facilities reserve, $500,000 is designated as a capital reserve, and $175,000 is designated as a board program reserve. The remaining $565,955 is unrestricted.
Continuing Legal Education (CLE) Fund
CLE programs and products are entirely self-funded by seminar registration fees and sales of deskbooks and other publications. The CLE fund budgeted for expenses over revenues of $73,997. Actual results were that expenses exceeded revenues by $43,951, bringing CLE's fund balance as of September 30, 2008 to $1,947,887.
Sections Fund
The WSBA's 26 sections are a voluntary activity for WSBA members and are supported through section dues and fees for section products and services. All net income from sections is carried forward in each section's net assets for use by that section in future years. The sections budgeted for expenses over revenues of $223,992 (in order to use past accumulated reserves to benefit their members). Actual results for the sections were that expenses exceeded revenues by $91,829. The sections fund balance at September 30, 2008 was $805,101.
Lawyers' Fund for Client Protection (LFCP)
The LFCP may be used for relieving a loss sustained by a person due to the dishonesty of, or failure to account for money entrusted to, a member of the WSBA in connection with the member's practice of law. It is funded by an annual assessment on all active WSBA members. The LFCP fund budgeted for revenues over expenses of $103,250. Actual results were expenses over revenues of $467,435. Close to $700,000 in claims were paid as a result of one lawyer's dishonest acts. The LFCP's fund balance as of September 30, 2008 was $231,804.
