BY FRANCIS A. ADEWALE
Welcome to 2023! In this edition of the Treasurer’s Report, I have invited WSBA Director of Finance Tiffany Lynch to join me and provide a recap of the 2022 fiscal year and what’s to come in 2023.
Treasurer Adewale: Welcome, Director Lynch. Can you give us a recap of the WSBA’s 2022 fiscal year and talk about what to expect in 2023?
Director Lynch: Thank you. As we move into the new year, our first order of business for the Budget and Audit Committee is to review the results of the WSBA’s year-end financial statements and annual audit. At the end of each fiscal year, the WSBA hires an independent certified public accounting firm to audit our financial statements. The auditors review, analyze, and test the WSBA’s internal controls for reporting, management oversight, and other systems related to the WSBA’s finances and the overall operations of the organization, and ultimately determine if the financial statements fairly present, in all material respects, the financial position of the organization in accordance with generally accepted accounting principles. Fieldwork for the FY 2022 audit was held at the beginning of December 2022, and as of this writing the auditors were scheduled to present their results to the Budget and Audit Committee on Jan. 27.
All Budget and Audit meetings are open to WSBA members and the public to attend and have an opportunity to listen to fiscal presentations and ask questions. Additionally, year-end results and the audit report will be provided to the Board of Governors in their public meeting materials for their March meeting. Regarding our fiscal state, the WSBA’s final FY 2022 (Oct. 1, 2021, through Sept. 30, 2022) financial statements reflect a total revenue of $25,347,304 and expenses of $23,001,891. The ending fund balances for FY 2022 are as follows:
• General Fund: $8,713,268, or $1,641,094 over the FY 2021 ending balance of $7,072,174. The general fund balance is designated into three reserves: (1) Operating Reserve ($2 million), (2) Facilities Reserve ($1 million), and (3) Unrestricted Reserve ($5,713,268).
• Client Protection Fund: $4,063,501, or $17,255 over the FY 2021 ending balance of $4,046,246.
• CLE Fund: $1,042,049, or $393,257 over the FY 2021 ending balance of $648,792.
• Sections Funds: $1,802,650, or $293,807 over the FY 2021 ending balance of $1,508,843.
The WSBA exceeded FY 2022 revenue expectations by a total of $2.3 million.
Treasurer Adewale: Wow! Great news. What is responsible for this result?
Director Lynch: This result is due to higher-than-anticipated revenue for license fees, interest income, and Mandatory CLE, as well as lower staffing, overhead, and direct program costs. These results are particularly helpful as we continue to look into the future and consider budgeting needs for fiscal year 2024 and beyond.
Treasurer Adewale: I think you are being modest. I believe we owe WSBA staff and the management team a debt of gratitude for all your hard work. Many thanks to our employees for what looks to be another successful WSBA audit and strong year-end results.
Director Lynch: Thank you. This was definitely a team effort and everyone contributed to our success this year through willingness to collaborate and working together. WSBA staff, the Board of Governors, and our volunteers should all be proud of these results.
Treasurer Adewale: Finally, are there any other fiscal-related meetings our members need to be made aware of in this edition of Bar News?
Director Lynch: Yes, the Investment Subcommittee as well as Facilities Advisory Subcommittee meet at various times throughout the year, and recommendations from those subcommittees will be presented to the Budget and Audit Committee at their regularly scheduled meetings, which are listed on our website: www.wsba.org/Legal-Community/Committees-Boards-and-Other-Groups/budget-audit.
Treasurer Adewale: Director Lynch, thank you for joining me. Any final thoughts?
Director Lynch: I encourage our readers to contact me if they have any questions. I look forward to any questions or feedback that our members may have.
Treasurer Adewale: Thank you!