Treasurer’s Report > Forty Years of Clean Audits

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BY NAM NGUYEN

Every year, the WSBA hires an independent auditor to review financial statements, and for at least the last 40 years, the auditor has issued a “clean” audit report. 

The WSBA hires independent auditors primarily to ensure financial transparency, accountability, and accuracy in financial reporting. Audits also help identify weaknesses in internal controls, reducing the risk of fraud or financial misstatements. It is best practice for large bar associations like the WSBA, especially associations with regulatory authority, to have an independent audit annually. 

Per fiscal policy, at least once every six years, the WSBA undertakes a formal process of seeking competitive bids from accounting firms to perform the annual audit. The most recent auditor selection process occurred in 2021 when the WSBA hired Clark Nuber, a large regional accounting firm based in Bellevue. For fiscal year 2025, Clark Nuber performed a financial statement audit of all WSBA funds (General, CLE, Sections, and Client Protection) and the affiliated Washington State Bar Foundation. In FY 2025, the WSBA had a net loss of $96,204 from the General Fund and a net loss of $110,731 from the CLE Fund, while the Client Protection Fund added $547,740 to reserves and the Section Fund added $40,866 to reserves. 

The overall result of the audit is an unqualified “clean” opinion on WSBA FY 2025 financial statements. Clark Nuber did not recommend that the WSBA make any adjustments to the statements, did not note any material weaknesses in the statements or in financial internal controls, and did not issue a management letter. 

This is the best outcome that any association can hope for from an independent audit, and the WSBA has achieved this result (a “clean” audit) for at least 40 consecutive years. The full audit report is available on the WSBA website.  

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