A Debt of Gratitude to Those Who Came Before Me on the WSBA Budget and Audit Committee
COLUMN
BY FRANCIS A. ADEWALE
The Washington State Bar Association treasurer is elected by the Board of Governors to provide oversight over the management of the financial assets and liabilities of the organization. The role of WSBA treasurer has not always been as expansive as it is currently. The position has evolved over the years to include, among other functions, appointment of voting members to the Investments and Facilities subcommittees, chairing the Budget and Audit Committee, and the following, as stated in the WSBA Fiscal Policies and Procedures Manual:
In the event of an emergency and when it is not feasible to get the approval of the Budget and Audit Committee or the Board of Governors, the Executive Director and/or Treasurer shall have the authority to approve expenditures that are necessary and prudent in order to keep the WSBA operational in the case of an emergency (e.g., if the WSBA’s computer network crashed or an event which triggers the established disaster recovery plan). These expenditures may be beyond the capital or operating budgets and may or may not impact the WSBA’s reserves. The Board of Governors shall be immediately notified by the Treasurer or Executive Director when expenditures of this nature are authorized.[See fiscal policies page 11] (emphasis added).11 Find the WSBA’s Fiscal Policies at www.wsba.org/about-wsba/finances#policy.
I am frequently asked what prepared me to serve as treasurer of the WSBA. Many who ask this question expect me to talk about my experience serving on numerous nonprofit boards in Eastern Washington or statewide organizations like the Access to Justice Board, which I chaired before joining the WSBA Board of Governors. None of them seems to expect the answer I give: Nothing! The shocked reaction I get when I say this is palpable. One friend said, “Are you serious?” I am indeed serious about this. Absolutely. No experience whatsoever could prepare anyone to serve as an officer of the Washington State Bar Association, especially as treasurer.
First, the Washington State Bar Association is not a nonprofit and its exact status is difficult to define. The Washington Supreme Court also frequently assigns tasks related to access to justice to the WSBA. The Bar’s mission “to champion justice” requires it to protect the integrity of the profession and provide public service similar to other nonprofit organizations. Very frequently, in governance and management of its workforce, the WSBA’s operational dynamics toggle back and forth among all of these different identities.
The first challenge for any treasurer, accountant, and director of finance is determining the accounting standards to apply for each of these identities. The WSBA is not a for-profit organization and as such cannot use a standard profit-and-loss metric. To further the Board’s ability to make policy decisions, we group revenue and costs associated with specific program areas; with committees, boards, and other entities; and with other activities into cost centers. This is mainly for administrative purposes, as most cost centers by definition are responsible only for the costs they incur; they do not generate any revenue. We do have cost centers that behave more like business units that generate their own revenue, such as the Continuing Legal Education (CLE) cost center, which includes seminars, products, and deskbooks.
The next challenge for any WSBA treasurer is understanding and working within these dynamics. This conundrum is where I found myself in 2022 at my first Budget and Audit Committee meeting when I was assigned to conduct a comprehensive review of the lengthy WSBA Fiscal Policies and Procedures Manual along with the then-director of finance. It seemed daunting, if not impossible. I came in with my nonprofit hat on and quickly discarded it when it dawned on me that the WSBA is “sui generis” and peculiar in operation and functions.
Imagine my relief when I got calls from both former WSBA President and Governor Daniel Clark and former Governor Bryn Peterson (both of whom have held the position of WSBA treasurer) assuring me that they were available to assist if I had questions. They, along with the WSBA’s long-tenured finance Controller Maggie Yu, helped me make sense of WSBA finances. Dan Clark is unique in the history of our Bar Association as he had served longer than any other member of the Board of Governors (from 2017 to 2022 as District 4 governor, and from 2022 to 2023 as WSBA president). He was also the first member to serve as treasurer for two consecutive terms (2019-2020 and 2020-2021). This is a distinction that I now share with him, along with a mutual affinity for Eastern Washington and a rabid fandom of Gonzaga basketball.
In addition, we both are connected to the criminal legal system, as Dan is a senior deputy prosecuting attorney with the Yakima County Prosecuting Attorney’s Office, Corporate Counsel Division, while my entire 22 years of legal practice in Spokane has been within the criminal legal system. Dan’s practice includes providing legal representation to Yakima County department heads and elected officials in civil, financial, forfeiture, and taxation litigation matters. I share this to illustrate the fact that we both frequently wear our government lawyer hats in matters that relate to management of public and member funds. As public servants, our constituency is the whole community and not just a few sections of it.
Since my election as treasurer, Dan has been an invaluable sounding board for me on all things WSBA finance-related. He has a unique (some might even say recondite) way of looking at finances. His desire for fiscal discipline is infectious. If you sit with him for five minutes, you will find several ways in which you could be saving money for the organization whilst providing maximum services for our members and the public. Quiet and unassuming, he has a profound dedication to public service. I am happy to call him a friend.
Bryn Peterson set me up (or should I say I walked in with eyes wide shut) to take on a leadership role on the Budget and Audit Committee from day one. During our first meeting as members of the Budget and Audit Committee, I came prepared, having read the WSBA Fiscal Policies and Procedures Manual, and had found several areas that were outdated (cue policy on check franking in the year 2022!). He gave me the opportunity to make my point and then turned around and assigned me to lead the fiscal policy review. Many readers of this column may have heard me talk at length about Bryn’s raucous laughter and ability to lessen the stress of the job. The inside joke among the Board of Governors was that every committee Bryn chairs is the “funnest.” Bryn was elected to the WSBA Board of Governors in 2019 and served as treasurer during the 2021-22 fiscal year. He practices in the area of corporate law. He frequently reminds me that we are both blessed with wonderful spouses who permit us to devote so much time to our profession. His experience in corporate law and investment has been a source of strength for me.
The third person who greatly impacted my understanding of the WSBA is Maggie Yu. She is the WSBA’s brilliant controller who helped me during the halcyon days of fiscal policy review. She was always ready with answers and has a depth of historical and technical knowledge from her 25-plus years with the WSBA serving in various roles of increasing responsibility within the Finance Department. Prior to working at the WSBA, Maggie was an auditor in her hometown of Shanghai, China, where she worked for the Finance Bureau and focused on film, publication, and manufacturing companies. When we hit a brick wall, we could trust Maggie to go back and do a lot of research and come back with the way forward. I owe her a debt of gratitude.
This is the first Treasurer’s Report of the new year, and I wanted to spend this time expressing gratitude to those who have helped me along the way in years past. Let me end this column, however, with a quote from a previous column that helps summarize what is next for us on the Budget and Audit Committee and in the finance department of the WSBA:
There are two powerful fiscal forces that combine to propel organizational progress: ensuring growth and improving financial stability. One helps us look back, through the audit mechanism, and the other looks forward, through budgetary planning. This is the time of the year where we look back and look forward at the same time.
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:
NOTE
1. Find the WSBA’s Fiscal Policies at www.wsba.org/about-wsba/finances#policy.