WSBA Financial Report
Financial Highlights for Fiscal Year 2005
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
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 2005, the general fund had revenues in excess of expenses of $1,148,279. As of September 30, 2005, the general fund balance was $3,920,348, of which $1,052,599 is designated as an operating reserve and $1,052,599 is designated as a reserve for WSBA's planned move to Puget Sound Plaza at the end of calendar year 2006. The remaining $1,815,150 is considered an unrestricted surplus.
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 revenues over expenses of $134,011. Actual results were $148,884, bringing CLE's fund balance as of September 30, 2005 to $1,585,026.
Sections Fund
The WSBA's 24 sections are a voluntary activity for WSBA members and are fully self-supporting through section dues and fees for section products and services. No member license fees are used for section activities, and 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 $93,714 expenses over revenues (in order to use past accumulated reserves to benefit their members). Actual results for the sections were that expenses exceeded revenues by $4,931. The sections fund balance at September 30, 2005 was $780,129.
Lawyers' Fund for Client Protection (LFCP)
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 $133,067. Actual results were $189,192. LFCP's fund balance as of September 30, 2005 was $821,669.
WSBA's Move to Puget Sound Plaza in December 2006
In May 2004, WSBA entered into a lease agreement with UNICO Properties, Inc. for 41,204 square feet of space in the Puget Sound Plaza building. WSBA was able to lock in rates when they were at a low point in the market, due to good planning by the Board of Governors. In conducting detailed programming exercises with architects Burgess Weaver, it has been determined that the amount of space needed is more than was estimated in 2003 during the lease negotiations. Fortunately, WSBA has approximately 80% of its future rent locked in at very low rates compared to the current market. WSBA is currently negotiating with UNICO for additional space, taking into account WSBA's needs over the next ten years so the next ten years of rent expenses will be predictable and affordable.
Statement of Activities Chart
Percentage of 2005 Revenues Collected from Various Sources
Percentage of 2005 Expenses Used by Activity
