News Releases

State Bar issues statement on audit report

Contact: Laura Ernde

415-538-2283

barcomm@calbar.ca.gov

SAN FRANCISCO, May 12, 2016 — The State Bar of California issued the following statement in response to the California State Auditor’s report today:

“As an agency committed to transparency, accountability, excellence and financial responsibility, we thank the State Auditor for its recommendations,” Executive Director Elizabeth Rindskopf Parker said. “We believe a close look at the audit findings shows we have made significant progress.”

The audit touched on a number of steps that the bar’s new leadership team has undertaken to address past lack of transparency and improve the organization going forward. The State Bar has:

• Employed a better process for preparing its financial statements.
• Implemented new reporting requirements of the Governmental Accounting Standards Board.
• Addressed a backlog of judgment filings to attempt to recover money owed by disciplined attorneys.
• Included state government executive branch salaries and benefits for comparison in a comprehensive salary and benefits study to be completed by October 2016.
• Dismantled a nonprofit organization that had been created by previous leadership without Board of Trustees approval.
• Adopted a reasonable reserve policy as recommended by the State Auditor in June 2015.

The audit noted that the State Bar has undergone significant turnover of its management team. Parker joined the bar in the fall, along with Chief Operating Officer Leah Wilson and General Counsel Vanessa Holton.

Auditor Elaine Howle said in the report: “Given the magnitude of those changes, we are optimistic that the State Bar may improve the clarity of its financial communications and that its financial decisions may reflect better judgment.”

In addition to regular audits by the independent State Auditor, the State Bar undergoes an annual financial audit by external accountants. In addition, the organization sends nearly a dozen required reports annually to its oversight bodies in the Legislature and Supreme Court.