COLUMN
BY FRANCIS A. ADEWALE
The WSBA Fiscal Policies and Procedures Manual contains all WSBA fiscal policies and procedures. These fiscal policies encompass the rules by which financial transactions are classified and reported. The goal of these policies is to ensure accountability and regulatory compliance, sound financial management, and data-integrity practices. The manual is available to all WSBA employees, members of the Board of Governors, and volunteers to promote organization-wide adherence to documented policies and procedures.
Shortly after I began my service as a Budget and Audit Committee member in FY 22, then-treasurer Bryn Peterson assigned me and the WSBA’s former director of finance the task of reviewing and updating the organization’s fiscal policies. We were then a work group of two members with a herculean task: Review a mammoth document with arcane language, the content of which seemed to belong to an era when the Washington State Bar Association finances operated only on paper. Over three weekends and a couple of late-nighters, we got the job done and the Board passed some of the most fundamental updates to our fiscal policies in decades.
At the final presentation, I informed the Board of Governors that the WSBA Fiscal Policies and Procedures Manual should always remain an organic document, subject to periodic reviews and revisions based on sound accounting principles and user experiences. Reviews and revisions of fiscal policies, like all research, should always begin with validating the experiences of those affected by the policies. This is why WSBA fiscal policies and procedures are routinely reviewed to ensure the most up-to-date information is taken into consideration.
The Budget and Audit Committee is tasked with making recommendations to the Board of Governors for any changes to policies identified as “significant,” which include those under four chapters of the WSBA Fiscal Policies:
- Chapter 1: Key Fiscal Policies
- Chapter 2: Investment Policy
- Chapter 4: Fund Balance/Reserves
- Chapter 6: Expense Policies
All other less significant policies may be updated by the WSBA’s executive director and/or director of finance from time to time as procedures, information, or generally accepted accounting principles change.
At the October Budget and Audit Committee meeting, two items that are covered under “significant policies” chapters were brought forward for review:
Revision #1
Fiscal Responsibilities Matrix—Executive Director responsibilities for budget reallocations
Currently, the WSBA president is notified on a monthly basis of all budget reallocations approved by the executive director, and the Budget and Audit Committee and Board of Governors are notified on a quarterly basis. The policy language requires that the president be notified of changes prior to the executive director taking action. This means no budget reallocations can be effectuated until after the president has been notified. Operationally, this can be challenging, as it creates a time gap between when a reallocation need is identified and when the president is notified (which can be anywhere from two weeks to 45 days). Additionally, there are instances when a budget reallocation is required to resolve an emergent need within a limited timeframe, resulting in multiple notifications to the president within the same month.
Consequently, the Budget and Audit Committee recommends the following revised language:
The Executive Director must report reallocation of funds to the president on a monthly basis and to the Board on a quarterly basis. It is expected that the executive director will consult with the president on reallocations that may be considered sensitive or controversial in nature, prior to execution.
It is important to bear in mind that the Board is responsible for approving the annual budget, and the policy would retain the existing language that executive director budget reallocations “may not affect the annual budget’s bottom line.” The Budget and Audit Committee believes that this revision will allow for smoother operations and execution of budget reallocations while continuing to maintain oversight by the president and Board.
Revision #2
Reimbursement for Ground Transportation
Current fiscal policy states that:
WSBA will reimburse ground transportation, parking costs and tolls. WSBA will reimburse longer term airport parking at the lower of actual parking costs or an airport shuttle to/from the traveler’s home. WSBA will reimburse tips for no more than 10% of the cost of the trip, in the case where 10% is less than $2.00 tips can be adjusted to that amount.
After exhaustive deliberations and feedback from a variety of sources that indicated the current 10 percent tip limit is too low, given general standards for gratuity for this type of service, the Budget and Audit Committee recommended that the limit be increased to 25 percent.
These two fiscal policies will be placed before the Board of Governors at its regularly scheduled January meeting. Members with interest or opinion can apply to speak for and/or against the resolutions at that meeting.
It has been an interesting but effective year for our Bar Association. I wish everyone happy holidays.
READ THE MANUAL > Access the WSBA Fiscal Policies and Procedures Manual at www.wsba.org/about-wsba/finances.
About the author
Francis Adewale is the WSBA treasurer and can be reached at: