New York State Bar Association

“See detailed explanation for form 990, page 4, part iv, line 28c which follows as the 3rd page of schedule o.”

“The association had approximately 75,000 members as of december 31, 2013. Form 990, part ix / functional expenses / reporting of compensation: the association's books and records, and related audited financial statements, are prepared utilizing functional expense classifications (rather than natural expense classifications). Under this reporting methodology, the statement of functional expenses (part ix) includes compensation and certain related benefit costs as components of cle, sections, graphics department and other functional line items (see part ix, line 24). Other non-functional compensation related expenses, including management and general and various pension and other benefit plan costs, are detailed under lines 5, 7, and 8 of part ix. The association's total salaries, other compensation, and net benefit costs, inclusive of amounts reported under lines 5, 7, and 8 of part ix, amounted to $7,486,283.”

“Members of the association elect representatives to the 300 member house of delegates (see governing board disclosure on the next page of schedule o). Form 990, parts v, vii and ix / supplemental information on reimbursed costs: the association employs two individuals whose salaries and related benefit costs are reimbursed by the new york bar foundation (a related organization). These transactions, which are reimbursed pursuant to an agreement between the association and foundation, are reported under schedule r as reimbursed costs of $134,996 (salaries of $85,830 and total benefit costs of $49,166). These costs are construed to be expenses of the foundation and, as such, all reimbursed costs in this regard are not reported as an expense on the association's financial statements and form 990.”

“Certain governance decisions of the association executive board are subject to approval by the association's members and/or house of delegates.”

“The preparer/cpa reviewed a copy of the form 990 documents with the association's finance committee prior to its filing. Subsequently, the members of the association's executive committee were provided a copy of the form 990 documents, also prior to its filing. Form 990, page 7, part vii, section a / governing board: the association is governed by a 300 member house of delegates, which is comprised of members representing the 13 judicial districts of new york state, as well as the association's 25 sections. The 30 member executive committee has the authority to act on behalf of the association and, as such, is construed to be its governing body for form 990 reporting purposes. Form 990, page 4, part iv, line 28c and page 6, part vi, section a, line 2 supplemental information on potential relationships: no key employee or highly compensated employees are related to each other through family or business relationships. Certain members of the association's 30 member executive committee may, at times however, share business relationships through a partnership affiliation with various law firms with whom they are employed, are partners, or otherwise affiliated. In addition, three directors of the association and the association's key employee also serve as unpaid directors of the new york bar foundation, a 501(c)(3) organization related to the association (see schedule r). These relationships exist in the normal course, without either control or any direct or indirect interest on the part of these individuals.”

“The association has a formal records management policy (implemented in 2010) and formal conflict of interest and whistleblower policies (both implemented in 2009). In addition, the association monitors and enforces conflicts of interest through periodic conflict of interest disclosure questionnaires and a requirement for continuing disclosure.”

“Compensation for the association's key employee and its highly compensated employees is reviewed and approved by the association's finance and compensation committees, all comprised of independent persons, utilizing objective and subjective evaluation factors, including certain comparability data. Both committees maintain contemporaneous minutes in support of salary related deliberations and decisions. With respect to the payment of stipends to certain officers (see schedule j, part iii), compensation levels are set by the finance committee and ratified into the association's by-laws.”

“The association makes its governing documents, policies, and financial statements available to the public upon request and as may be required under applicable law.”

“Rent / equipment costs: total expenses 1,100,715. Publications: total expenses 1,062,192. Membership services: total expenses 1,018,373. Consultant and other fees: total expenses 983,869. Media / public relations: total expenses 587,439. Government relations program: total expenses 547,031. Annual meeting costs: total expenses 373,971. Meeting services: total expenses 360,066. Other administrative costs: total expenses 328,169. Law, youth and citizenship program: total expenses 233,098. Lawyer assistance program: total expenses 207,965. Lawyer referral / information services: total expenses 194,839. Pro bono programs: total expenses 179,956. Law practice management services: total expenses 166,599. Section newsletters: total expenses 121,113.”