Tiffany Lynch direct line: Finance Manager fax:

Transcription

1 Tiffany Lynch direct line: Finance Manager fax: Washington State Bar Association May 21, 2012 Dear Section Chairs, Chairs-Elect, and Treasurers: The budgeting process for the WSBA s fiscal year 2013 has begun! We are looking forward to working closely with each section during the next few months as you put together your 2013 budget. Attached are the documents you will need to complete your budget as well as some information that may be helpful to you in the budgeting process. Section budget requests, narrative forms, and requests to change dues are due on July 13th. Once we have reviewed them, if we have questions we will contact you to set up a meeting or conference call between July 31 st and August 13 th to review the budget (if necessary). These dates are flexible and we will do our best to accommodate your schedule. However, if you anticipate that no one from your section will be available during this time period, please let us know when submitting your budget materials so we can plan accordingly. We must complete the budget process no later than August 13 th. Please feel free to make any changes to your budget after it has been submitted up until August 13 th. Each section is required to submit an annual budget; however, if we do not receive a budget from your section by August 13 th we will submit a budget on your behalf, based on actual revenues and expenses from the section s FY 2012 activity. Three Items to be submitted by July 13 th : Section Budget Request Worksheet- This document includes the 2012 budget information along with a column for you to enter in the 2013 budget. This worksheet is due by July 13 th, Section Narrative Form- This document should be filled out to explain the budgeted revenue and expense categories. For example, if you have a line item for Scholarships/Donations/Grants then there should be a corresponding narrative description of the amount budgeted (e.g., specific scholarships to be awarded and the purpose money). This form will serve as a reference tool throughout the year for you and the WSBA staff to help ensure that your expenses are coded to the proper budget line items. This document should be submitted with your budget request worksheet by July 13, Request to Change Member Dues- This document must be filled out only if you are requesting to change your section s annual membership dues beginning October 1, This document is due by July 13, Washington State Bar Association 1325 Fourth Avenue, Suite 600 / Seattle, WA / fax:

2 All documents may be submitted in either hardcopy or electronic form. Please or mail to the following: MAIL (Hardcopies) to: WSBA Attn: Tiffany Lynch th Avenue Suite 600 Seattle, WA (Electronic form) to: sectionbudgets@wsba.org Items for your reference: Section Budget Development Information- This document provides you with information on section dues, interest earned on any fund balances, information regarding the WSBA Per- Member Charge, and information to help budget for CLE events. WSBA Section Account Codes- This document is a list of the WSBA s account codes that are available for use by sections. If you have questions regarding which codes to use, please feel free to contact me. Section 3 Year Financial History- This document shows your section s financial history for the past three years (2009, 2010, and 2011) as well as the year-to-date information (as of 5/18/12). This will be helpful in determining trends in revenues and expenses for the 2013 budget. For example, if you have been budgeting for a particular account and there has been no activity for the last 2 to 3 years, it is likely that you can eliminate this item from your 2013 budget. Section Membership Count History- This spreadsheet shows the membership counts for your section over the past three years as well as the year-to-date count. Section Fiscal Policies- This explains the WSBA s guidelines for section financial activity If you need any help or have any questions, we are more than happy to provide you with assistance. Please feel free to contact me directly, or you can also contact your Section Leaders Liaison for further information. Sincerely, Tiffany Lynch Finance Manager Washington State Bar Association 1325 Fourth Avenue, Suite 600 / Seattle, WA / fax:

3 WSBA Section Budget Development Information Fiscal Year 2013 October 1, 2012 September 30, 2013 Section Budgets WSBA Section budgets are based on projects or activities that a Section intends to do during a fiscal year. The FY 2013 Budget Request Form includes individual budget categories. For revenue related activities, there are three categories: Operational Revenue, CLE-Related Revenue, and Other Revenue. For expense related activities, there are five categories: Operational Expenses, Member Benefits, CLE- Related Expenses, Public Service/Outreach, and Executive Committee-Related Expenses. This format is aimed at helping Sections budget in terms of specific areas of interest or by activity. For example, there are many expenses incurred by Section executive committee members and the budget should be used as a guide towards the type of work that the executive committee is planning on doing for the coming year. All the budget items that fall under the Executive Committee-Related Expenses budget category, when grouped together, allows the Section to more easily translate their plan of work for the upcoming year into actual budgeted activities. Work Plan As part of the process in putting together the Section s budget we encourage you to consider the development of your Section s work plan during the budgeting process to help identify objectives and determine what is needed fiscally to achieve those objectives. You are welcome to use the WSBA s Section Work Plan Template (see attached document). Please note that your Section is welcome to use whatever format is best for the planning of your activities. WSBA Budget Submission and Contact Information Section budget requests, narrative forms, and requests to change dues are due in hardcopy or electronic form on July 13 th, Please submit all documents by to sectionbudgets@wsba.org, fax at (206) , attn: Tiffany Lynch, or mail to WSBA, Attn: Tiffany Lynch, th Ave, Suite 600, Seattle, WA If you have any questions or need help with your budget, please feel free to contact your Section Leaders Liaison (Paris Seabrook or Stacy Holmes) or Tiffany Lynch (Finance Manager). For help with CLE related items please contact Kathy Burrows (Seminar Development Specialist). Paris Seabrook Tiffany Lynch Section Leaders Liaison WSBA Finance Manager (206) or pariss@wsba.org (206) or tiffanyl@wsba.org Stacy Holmes Kathy Burrows Senior Section Leaders Liaison Seminar Development Specialist (206) or stacyh@wsba.org (206) or kathyb@wsba.org Dues If your Section intends to change (increase or decrease) member dues in fiscal year 2013, please have the change approved by your Section s leadership as required by your bylaws and then submit a request to Tiffany Lynch so that it can be included on the Budget and Audit Committee s agenda for review and approval. A request form is included in your FY 2013 budget materials. The due date for seeking Budget and Audit approval of a Section dues change effective for fiscal year 2013 is July 13 th, Section Dues Revenue In the materials provided for your reference is a spreadsheet showing the historical membership counts for the past 3 years for each Section, as well as the year-to-date count. During 2008 and 2009 we saw a decrease in membership amongst almost all of the Sections. However, in 2010 the WSBA changed the Section dues renewal process to coincide with the annual WSBA licensing dues process and launched

4 an online system for license and Section dues renewals. This new system had a positive impact on Section membership so when looking at the historical counts you will likely see a significant increase in the number of Section memberships from 2009 to In 2011 we saw a modest increase in the total number of Section memberships and so far the 2012 membership counts look to be consistent with We suggest that you review your Section s trends for membership and keep this in mind when you estimate the number of members for the Section dues revenue figure. In most cases, it is best to use your Section s current membership count to determine the Section Dues Revenue budget figure. Interest Income Interest is credited to each Section based on the average of the fund balance as of September 30 th of the current year and the preceding fiscal year, multiplied by the average interest rate the WSBA received on its investments during the current fiscal year. For example, the interest received in fiscal year 2012 will be based on the average of your Section fund balance as of September 30, 2011 (preceding year) and September 30, 2012 (current year), multiplied by the average interest rate the WSBA received during fiscal year 2012 (current year). Interest earned on the Section fund balance is given to each Section at the end of the fiscal year in which it is earned. This means that the interest your Section earns for FY 2012 will be given to the Section on 9/30/12 (the end of the fiscal year). For budgeting purposes, we will perform an estimation for you towards the end of the budget process based on the latest information (average interest rate and fund balances earned up to the end of August 2012). Therefore, you should leave this line blank on your budget worksheet when you submit it. In late August, before the budget is approved by the Board of Governors, we will you the final calculation for your interest income along with your final budget for review. WSBA Per-Member Charge A standard fee per Section member is established annually and charged to each Section as membership payments are processed. The per-member charge covers the WSBA s support of Section operations, including the cost of printing and mailing dues forms and direct staff support. This past April a member referendum was passed to reduce the WSBA s annual full active license fee from $450 to $325. The fiscal impact of this referendum is a 28% reduction in license fee revenue. As a result, at its April 27 th meeting, the Board of Governors voted to modify the policy on support of Sections direct administrative costs so that the Section per-member charge covers 100% of the costs allocated to the Sections Administration cost center and therefore eliminates the existing 25% subsidy provided to Sections. Costs allocated to Sections Administration include direct Sections costs (member dues statements, postage, etc.) and salaries, benefits, and overhead for the Sections Team (Stacy, Paris, and Melina). A very small percentage of the Accounts Payable Bookkeeper and direct management time are also charged there. Currently, WSBA license fees cover 25% of the costs, while Sections pay the other 75% through a per-member charge of $13.25 per member (across the board for all Sections). Eliminating the WSBA 25% subsidy effective in fiscal year 2013 (beginning October 1, 2012) will result in a higher per-member charge for Sections. Our preliminary estimate is a $ $6.50 increase. Since the per-member charge is based on the WSBA s budget which is currently in the process of being put together, we plan on providing you with the estimated per-member charge figure no later than June 22 nd. Section CLEs What is most important when budgeting for CLE-related activities is identifying the approximate date and type of program and whether it is a mid-year program (Plan B) or non-mid-year program (normally Plan A) that the Section intends to put on (mini-cles, Plan A or Plan B program) during the year. This will make budgeting for revenue and expenses more straight-forward because you will be able to have a clear budget for each CLE-related activity. The 2013 Section budget Request Form includes lines under the CLE-Related Revenue and CLE-Related Expenses budget categories which allow for the Section

5 to describe the type of CLE planned, as well as any additional expenses, etc. that would need to be included in the budget. Mini-CLEs The intent of the mini-cle program is to support Sections in their staging of smaller member benefit CLE activities that meet the following criteria: 1.5 hours or less in duration and tuition of no more than $35. Income for those programs with a registration fee is budgeted under Mini-CLE Revenue (#41805) and those programs with expenses are budgeted under Mini-CLE Expenses (#58620). Time spent by WSBA staff on mini-cles is not charged to the sponsoring Section. For detailed information on the mini- CLE program, go to The CLE Department needs at least 10 weeks advanced notice from the Section for upcoming mini-cle events. For any CLE-related questions you can contact Kathy Burrows (WSBA Seminar Development Specialist) at or kathyb@wsba.org. Plan A and Plan B Seminars (Section and WSBA-CLE Co-Sponsored Seminars) Sections and the WSBA CLE Department are required to work together. All CLEs co-sponsored with a Section or not are charged an administrative fee to cover a percentage of the CLE Department s staff time and overhead associated with seminars. The administrative charge is a percentage of gross revenues from the CLE. This percentage shall be determined at the beginning of each fiscal year based on the prior year s overhead expenses and the current year s budget. After deducting the administrative fee and all direct costs of the co-sponsored program (e.g., facilities, speakers, etc.), the Section and the CLE Department will split the net profit or loss 50/50. These programs are labeled Plan A programs. All Section mid-year meetings will be administered pursuant to the foregoing paragraph. For annual programs that are (a) seen as both fiscally lower risk to Sections (unless specifically decided by the Section in consultation with the CLE Department to allow for the greater risk - e.g., bringing in a high-priced speaker) and (b) part of the administrative structure of the Section, the CLE Department uses a revenue sharing plan that includes charging the program the standard administrative fee but the Section receives 100% of the profit or loss from that program. These programs are labeled Plan B programs and are reserved generally for the principal annual program (often termed mid-years) of the Section. (Revenue) CLE Seminar Splits (Account #41850) Because the gross income and direct expenses for Plan A and Plan B seminars are processed through the WSBA CLE Department, Sections should only budget for their anticipated share of net income or loss this amount is budgeted to CLE Seminar Splits (#41850). If you are anticipating a loss on the program, please budget the loss under account code as a negative amount. (Expense) Seminar Expense-Sections (Account #58625) If the Section plans on covering costs outside of the CLE, such as reception expenses, entertainment, give-aways, etc., the Section should be budgeting these expenses under this account code.

6 Section Name: Work Plan Objectives ( ) Outcome Target Activities Target Partnerships Target Deadline COMMENTS What worked what didn t Outcome Target Activities Target Partnerships Target Deadline Outcome Target Activities Target Partnerships Target Deadline

7 WSBA Sections Account Codes # Income Description/Information Budget Category: OPERATIONAL REVENUE INTEREST interest received on fund balance SECTION DUES annual dues (October through September) from members and subscribers Budget Category: OTHER REVENUE DONATIONS & GRANTS MISCELLANEOUS PUBLICATIONS revenue received from sales of section publications SHIPPING & HANDLING shipping & handling for Section products funds received which will be used for giving scholarships to members or other SCHOLARSHIPS outside parties, not related to CLE events ANNUAL OR OTHER MEETINGS BREAKFAST/LUNCH/DINNER MEETINGS RECEPTIONS CONFERENCES & INSTITUTES WORKSHOP & CLINIC Budget Category: CLE-RELATED REVENUE Funds received which will be used for giving scholarships to attend CLE-related SCHOLARSHIPS events (i.e. midyear scholarships, etc.) SEMINAR -REGISTRATIONS registration income for section sponsored seminar MINI-CLE REVENUE registration revenue from mini-cles SEMINAR REVENUE -OTHER seminar income other than registration fees SEMINAR SPLITS W/CLE revenue from split of net income on seminars co-sponsored with WSBA CLE

8 # Expenses Description/Information Budget Category: OPERATIONAL EXPENSES POSTAGE postage expense not related to a specific budgeted project PRINTING & COPYING printing & copying expense not related to a specific budgeted project SUPPLIES supplies not related to a specific budgeted project includes conference calls not related to projects or meetings OR conference calls CONFERENCE CALLS using WSBA conference call service sections share of general section expenses - preparing & mailing annual dues PER MEMBER CHARGE notices, processing dues payments, staff time, etc SECTION MISCELLANEOUS Budget Category: MEMBER BENEFITS ANNUAL OR OTHER MEETINGS AWARDS LEGISLATIVE/LOBBYING expenses related to producing a newsletter including printing and postage NEWSLETTER/PUBLICATIONS EXPENSES RECEPTION/FORUM SECTION SPECIAL PROJECTS Note - different than Public Service Projects WEBSITE EXPENSES PUBLICATIONS PRODUCTION costs associated with producing a section publication ANNUAL OR OTHER MEETINGS expenses for annual or other meetings held for all members AWARDS expenses for items awarded to non-executive Committee members Budget Category: CLE-RELATED EXPENSES MINI-CLE EXPENSE expenses for section sponsored mini-cle events SEMINAR EXPENSE - SECTIONS section sponsored seminar expenses (mini-cles) Budget Category: PUBLIC SERVICE/OUTREACH MEMBERSHIP & RECRUITING expenses related to marketing of new members PUBLIC SERVICE PROJECTS Note - different than Special Projects NEW LAWYER OUTREACH expenses related to programming for new lawyers charitable contributions or grants (e.g., gifts to Law Fund); scholarships awarded, SCHOLARSHIPS/DONATIONS/GRANTS etc LAW SCHOOL OUTREACH WORKSHOP/CLINIC Budget Category: EXECUTIVE COMMITTEE RELATED EXPENSES ATTENDANCE AT BOG MEETINGS BREAKFAST/LUNCH/DINNER MEETINGS CONFERENCE/INSTITUTE EXECUTIVE COMMITTEE MEETINGS costs associated with meetings such as travel, conference calls, etc. LEADERSHIP/PROFESSIONAL Executive Committee Leadership activities. Note new fiscal policies on retreats DEVELOPMENT/RETREATS SECTION COMMITTEE expenses for executive committee member attendance at annual or other meetings ANNUAL OR OTHER MEETINGS AWARDS expenses for awards given to executive committee members

9 Section 2009 Budget 2009 Actual 2009 Difference 2010 Budget 2010 Actual 2010 Difference 2011 Budget 2011 Actual 2011 Difference 2012 Budget /30/ Difference Administrative Law (76) (2) Alternative Dispute Resolution (36) Animal Law (2) Antitrust, Consumer Protection (42) Business Law 1, (16) 1,000 1, ,100 1, ,150 1, Civil Rights Law (22) (5) Construction Law (38) (24) (24) Corporate Law (101) Creditor Debtor Rights Criminal Law (45) (5) Elder Law (29) Environmental Land Use Law Family Law 1,050 1,039 (11) 1,050 1, ,200 1, ,235 1,220 (15) Health Law (35) Indian Law (37) Intellectual Property (84) International Practice (14) Juvenile Law (2) (16) Labor & Employment Law (124) Legal Assistance to Military Personnel (9) Litigation Law 1,400 1,160 (240) 1,150 1, ,200 1,176 (24) 1,170 1,161 (9) Real Property Probate & Trust 2,200 1,985 (215) 1,975 2, ,250 2, ,250 2, Senior Lawyers (14) Sexual Orientation & Gender ID (27) (16) Solo & Small Practice Taxation Law (13) World Peace Through Law (80) (23)

10 Chapter 10: Sections Overview of Section Funds The WSBA has unrestricted, designated, and restricted fund balances. See Chapter 4, Unrestricted and Restricted Fund Balance Policy. All funds collected by the WSBA on behalf of a Section are subject to the control and fiscal oversight of the Board of Governors. Beginning in fiscal year 1994, the Board directed that the total difference between revenues, and direct and indirect expenses, for all Sections each year be designated as Section funds. Indirect expenses are that portion of the WSBA s staff time and overhead expenses attributed to support of and work for the Sections (reimbursed through the "per-member" charge). Separate ledgers will be maintained for each Section, making up the total for the Section funds. It is recommended that a Section's fund balance be consistent with its future needs. Generally, the purposes of a fund balance are to: Provide a cushion for an unexpected shortfall in revenue. Provide a cushion for an unexpected expense. Provide for a specific future event that does not occur annually. Provide the ability to take advantage of an unforeseen unique opportunity. A Section's fund balance should be enough to sustain a consistent level of programming in the event there are severe fluctuations in annual Section membership (six months worth of direct programming expenses are recommended as a guideline). In addition, a Section may plan for specific stated purposes (e.g., scholarships, special events, conferences, publications, and other member benefits). Sections are discouraged from maintaining fund balances in excess of two year's worth of direct programming expenses and specified purposes. If a Section finds it has accumulated a larger fund balance than recommended above, Section leadership should devise a plan to spend down the fund balance by budgeting and incurring a loss in one or more subsequent fiscal years. Some suggestions are as follows: Reduce member dues. Subsidize the cost of full-day seminars by reducing the cost per member (the Section will pay the difference between the standard seminar price ($199 or $225) and what the Section would like to charge). High visibility or national-level speaker for a CLE program. Scholarships for law school students. Special educational projects (e.g., youth courts, mock trial programs, law school events). Improve membership resources (e.g., newsletters, website, law updates, handbooks, publications). Annual grant program to help support work of community-based programs providing access to civil legal services. Produce or sponsor law-related public information (e.g., Citizens Rights brochures, sponsor lawforwa.gov website or votingforjudges.org, TVW's "The Docket"). Donate to Washington State Bar Foundation's Loan Repayment Assistance Program (LRAP). Sponsor the WSBA's Leadership Institute Fellows' projects through the Washington State Bar Foundation.

11 Executive Committees' Fiscal Responsibility Each Section is entrusted with funds that are paid by its members as dues and that are the fruits of volunteer efforts (such as the Section's share of revenues from CLE programs and mid-year/annual meetings). Each Section's Executive Committee is charged with the duty of approving Section expenditures. As stewards of the Section's finances, the Committee should be responsible in authorizing expenditures in accordance with WSBA and Section policies. Section Budgets The WSBA's and the Sections' fiscal year is October 1 through September 30. Section budgets are approved annually by the Board of Governors as part of the WSBA's annual budget. See Chapter 1, Key Fiscal Policies Budget Policies and Process. Monthly Financial Reports Monthly financial statements will be sent to each Section chair, chair-elect, and treasurer within 30 days of the close of each month with the exception of September due to the close of the fiscal yearend. These summary reports will show the Section's annual budget, actual monthly revenue and expenses, and year-to-date revenue and expenses. A detail report of posted transactions will also be provided. Section chairs, chairs-elect, and treasurers should review their Sections' monthly financial statements for accuracy and comparison to budget, and contact the Section Leaders Liaison if they have any questions about the amount of an income or expense item, the category in which it is recorded, or any other concerns. Section Revenue Member Dues Section member dues are collected by the WSBA throughout the year. Each fall, membership renewal forms are sent to all WSBA active members and Section subscribers from the prior fiscal year. Interest Earned on Section Fund Balances Annually, each Section will receive interest income on its fund balance. The calculation and journal entry will be made at the close of the WSBA s fiscal year, prior to the annual audit of the WSBA's financial statements. Each Section s share of interest income will be determined by taking the average interest rate earned by the WSBA on its investments that fiscal year (excluding investments of reserve funds) and applying that rate to the average of the final year-end fund balance of each Section in the current and preceding fiscal years.

12 WSBA-CLE and Section Splitting CLE Profits / Losses Programs Co-sponsored with Sections (Plan A and Plan B) Sections and the WSBA CLE Department are required to work together. All CLEs co-sponsored with a Section or not are charged an administrative fee to cover the CLE Department s staff time and overhead associated with seminars. The administrative charge is a percentage of gross revenues from the CLE. This percentage shall be determined at the beginning of each fiscal year by the CLE Director based on the prior year s overhead expenses and the current year s budget. After deducting the administrative fee and all direct costs of the co-sponsored program (e.g., facilities, speakers, etc.), the Section and the CLE Department will split the net profit or loss 50/50. These programs are labeled Plan A programs. All Section mid-year meetings will be administered pursuant to the foregoing paragraph. For annual programs that are (a) seen as both fiscally lower risk to Sections (unless specifically decided by the Section in consultation with the CLE Department to allow for the greater risk - e.g., bringing in a high-priced speaker) and (b) part of the administrative structure of the Section, the CLE Department uses a revenue sharing plan that includes charging the program the standard administrative fee but the Section receives 100% of the profit or loss from that program. These programs are labeled Plan B programs. Sections' Smaller Programs in which CLE Staff Provide Limited Assistance (Mini- CLEs) For smaller enrollment seminar programs that the Sections put on for Section members that are designated mini-cles, the CLE Department provides limited assistance to the Section at no charge (e.g. advertising support, online registration, etc.). In these cases, the Sections do much more of the preparation and production of the seminars than regular CLE programming. These mini-cles are seen as exclusively member-benefit programs and the registration fees must be $25 or less. The CLE Department provides specific support for these programs. Sections are responsible for working in collaboration with the CLE Department (i.e., following procedures outlined including timely notice, providing onsite registration personnel, etc.). Please consult with the CLE Director for specific procedural information. Accounting for Profit / Loss on CLE Seminars It is important for the CLE Department and the program sponsors, many of whom are WSBA Sections, to know the financial results of their seminar as soon as possible. The CLE Department must wait for all revenue and expenses to be posted before the seminar can be closed. The CLE Department has instituted a four to six week preliminary fiscal summary for Sections. Upon closing a seminar, the CLE Department shall submit a journal entry to the Accountant to transfer the appropriate portion of the gain or loss to the Section. The CLE Department strives to close each Section seminar no later than 60 to 75 days after the date of the event but late arriving bills, most notably faculty expenses, sometimes lengthen this time. The CLE Department will keep the Section informed of the current of the status of the seminar financials.

13 Section Expenses A WSBA Section, by duly authorized act of the governing board or committee of the Section, shall be authorized to expend all money as budgeted without prior approval by the Board of Governors, provided the following conditions have been met: The expenditure is consistent with the approved budget and WSBA expense policies; The expenditure is within the goals of the WSBA as defined by Supreme Court Rule or the Bylaws; and The expenditure does not violate the restricted acts of the WSBA as defined by Supreme Court Rule, or the WSBA or Section Bylaws. If a Section wishes to spend funds otherwise, Section leadership should prepare a written request outlining the purpose and amount of the proposed expenditure and submit it to the Section Leaders Liaison who will submit it to the Deputy Director for Finance and Administration. Per-Member Charge Each Section shall reimburse the WSBA for the cost of administering the various Sections through an annual per-member charge. See Chapter 6, Expenses Functional Accounting/Allocation of Indirect Expenses for details. Expenses in Excess of Annual Budget Personal Liability. Article VI (F) 3 of the WSBA Bylaws states: "The financial obligation of the Bar to any division, committee or Section shall be limited to the amount budgeted for it and shall cease upon payment of that amount unless the Board of Governors authorizes otherwise." Article VI (F) 4 of the WSBA Bylaws states: "Any liability incurred by any division, committee or Section, or by members thereof, in excess of the funds budgeted, shall be the personal liability of the person or persons responsible for incurring or authorizing the same." Article VI (F) 5 of the WSBA Bylaws states: "Any liability incurred by any division, committee or Section, or by members thereof, not in accordance with the policies of the Board of Governors or in conflict with any part of these Bylaws, shall be the personal liability of the person or persons responsible for incurring or authorizing the same." Expenses Over Budget Deputy Director for Finance and Administration Approval Once a Section has reached its budgeted expenses for the year and spent any additional unbudgeted revenue, no further expenses for the Section will be paid unless a spending plan for the remainder of the fiscal year is approved by the Deputy Director for Finance and Administration. Requests for additional expenses and a spending plan shall be submitted in writing to the Section Leaders Liaison. Expenses Over Budget WSBA Treasurer Approval Unbudgeted expenses may not deplete the Section s reserve balance to less than 25% of the preceding fiscal year s expenditures. Approval by the WSBA Treasurer is required for unbudgeted expenses which total 25% or more of the Section s annual expense budget or $1,000, whichever is greater. Requests for such expenditures shall be submitted in writing and approved prior to incurring an obligation for them. The Section leadership shall complete an Approval of Section Expenses in Excess of Annual Budget Form and submit it to the Section Leaders Liaison. The Section Leaders Liaison will inform the Section of the approval (or denial) of their request after review by the WSBA Treasurer and the Deputy Director for Finance and Administration.

14 Expense Policies for WSBA Sections For purposes of the WSBA expense policies, a Section Function is defined as an event or meeting of the Section membership open to all members. Examples include mid-year and annual meetings. Section Functions do not include officer/executive committee meetings or retreats. The Sections shall comply with the expense policies of the WSBA (see Chapter 6, Expenses), with the following exceptions: WSBA Policy on Alcohol The WSBA's policy on alcohol with regard to Sections is as follows: At the discretion of the Section Executive Committee, and because section revenues are paid voluntarily by section members, alcoholic beverages may be paid for using Section funds at the following Section events: At Section Functions, defined as an event or meeting of the Section membership open to all members; and At a "Speakers' Dinner" held at a mid-year or annual meeting, where many speakers and volunteers are being honored. Alcohol served at Executive Committee meetings, retreats, and other events not open to all members shall not be paid for using Section funds. Spouses/Domestic Partners/Guest Expenses At the discretion of the Section Executive Committee, the Section may pay for a spouse, domestic partner, or one guest for group meals at Section Functions. Separate transportation, lodging, restaurant expenses, or personal expenses shall not be reimbursed or approved by the Executive Committee. Executive Committee Meetings Executive Committee meetings are not Section Functions, and therefore no alcohol may be paid for with Section funds. Meals for Executive Committee meetings shall comply with the per-diem rates established in the WSBA expense policies. The cost of spouses/domestic partners/guests to attend Executive Committee meetings shall not be paid for using Section funds. Mid-Year or Annual Meetings Mid-year or annual meetings are open to all members and are Section Functions. They may include a variety of events, such as seminars, the annual membership meeting, an executive committee meeting, a speakers' dinner, etc. The following are some of the costs associated with a mid-year or annual meeting that are not covered by general WSBA policies due to their uniqueness to Sections: Registration fees With Executive Committee approval, registration fees for Committee members or other volunteers contributing to the development of the meeting may be paid for using Section funds. Lodging Reimbursement for lodging may be at the actual rate for the facility at which the event is held, rather than the WSBA limit. The Section shall attempt to secure a reasonable group rate (note: all contracts must be approved by the CLE Director or the Director of Member and Community Relations if a non-cle event). Speakers' Dinner Some Sections hold a dinner to honor those persons who speak at the seminars or contribute to the meetings. Alcohol at these dinners may be paid for using Section funds. Speakers' Expenses A Section may reimburse a speaker for travel, meals, and lodging in accordance with WSBA and CLE Speaker expense policies.

15 Alcohol Alcohol may be provided using Section funds only at events open to all members (e.g., receptions), with the exception of the Speakers' Dinner. Social Events A Section may sponsor a social event (e.g., golf outing, harbor cruise, etc) in conjunction with a midyear or annual meeting if the event is open to all members. Section funds shall not be used to pay for social events for only officers and/or Executive Committee members. Retreats Retreats are generally viewed as an opportunity for the Executive Committee members to meet each other in a less formal setting over an extended period of time, become more familiar with each, bond and form friendships, and lay the groundwork for the coming fiscal year. Section leadership may hold annual retreats so long as the cost is reasonable. The following costs are deemed to be reasonable, but must be approved and authorized by the Section's Executive Committee (i.e., some Sections may not wish to use these higher limits but instead follow the WSBA expense policies): Lodging: o Retreats shall not include more than two nights lodging. o Lodging may be provided for all Executive Committee members, regardless of the o distance between the member's house and retreat location. Reimbursement for lodging may be at the actual rate for the facility at which the retreat is held, rather than the WSBA limit. Sections are encouraged to work with the Section Leaders Liaison to negotiate a group rate (note: all contracts must be approved and signed by the Executive Director or the Director of Member and Community Relations). Meals The cost of meals may exceed the per diem rate set forth in WSBA policies, so long as it is a group meal for which the bill is paid directly by the WSBA or paid by an individual and submitted on an expense report for reimbursement (charged to the Section). Alcohol Alcohol shall not be included as part of the retreat costs covered by Section funds since the retreat is not considered a Section Function where all membership may attend. Guests Sections may authorize members to bring families to the retreat (spouses, domestic partners, significant others, and children). Section funds may be used to cover group meal expenses which include guests/families; however, separate transportation, lodging, and individual meals will not be covered. Location Retreats shall be held in Washington State or within 50 miles of the Washington border. Gifts According to WSBA expense policies, plaques or modest gifts of appreciation are allowed. Any gifts to outgoing Section leadership or other volunteers must be reasonable. All gifts should be appropriate for the size of the Section, the time invested by the recipient, and within budget. Lavish gifts are not an appropriate use of Section funds. Gifts to volunteers, speakers, Executive Committee members, etc. should comply with WSBA's "plaques or modest gifts of appreciation" policy. Gifts of alcohol (e.g., bottles of wine) are allowed. It is recommended that gifts to outgoing Section chairs using Section funds not exceed $200; however, the Executive Committee may approve gifts of a higher amount, not to exceed $500, in special circumstances (e.g., for several years of service). This does not preclude the Section members from paying for any additional amount out of their own pocket. Scholarships for Section Leaders Sections shall be cognizant of conflicts of interest when awarding scholarships to attend Section CLEs. Sections may award scholarships to officers or executive committee members so long as the recipient of the scholarship does not vote on the matter.

16 Other There may be times when an Executive Committee would like to use Section funds to enable someone with unique circumstances to participate in Section leadership. An Executive Committee may request advance approval from the WSBA Executive Director to pay expenses not covered in the WSBA fiscal policies in circumstances where: (a) a volunteer s participation in Section leadership creates an economic hardship, and (b) the volunteer would not be able to serve but for financial assistance from the Section. Such expenses must be prudent and reasonable. Approval will be in the Executive Director's discretion and will not be granted unless approval is requested within a reasonable period of time before the expenditure is made.