WSBA Financial Report for the Fiscal Year Ended September 30, 2006

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 2006, the general fund had revenues in excess of expenses of $903,466.  As of September 30, 2006, the general fund balance was $4,823,814, of which $1,200,000 is designated as an operating reserve, $750,000 is designated as a facilities reserve, $500,000 is designated as a capital reserve, $250,000 is designated as a board program reserve, and $1,052,599 is designated as a move reserve for the WSBA's move to Puget Sound Plaza in December 2006. The remaining $1,071,215 is unrestricted.

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 $54,644. Actual results were $369,215, bringing CLE's fund balance as of September 30, 2006 to $1,954,241.

Sections Fund

The WSBA's 24 sections are a voluntary activity for WSBA members and are supported through section dues and fees for section products and services.  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 $151,818 expenses over revenues (in order to use past accumulated reserves to benefit their members).  Actual results for the sections were that revenues exceeded expenses by $98,688.  The sections fund balance at September 30, 2006 was $878,817.

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 $133,637.  Actual results were expenses over revenues of $25,514.  LFCP's fund balance as of September 30, 2006 was $796,155. 

WSBA's Move to Puget Sound Plaza in December 2006

The WSBA has a ten-year lease agreement with UNICO Properties, Inc. for approximately 52,000 square feet of space in the Puget Sound Plaza building.  The WSBA is currently paying below-market rates for approximately 80% of the space, as it was able to lock in rates in 2004 when rent rates were at a low point in the market.  The WSBA moved to its new location on December 11, 2006.

Statement of Activities Chart

Percentage of 2006 Revenues Collected from Various Sources

Percentage of 2006 Expenses Used by Activity