2024-11-15T10:31:22-06:00 2023-12-31 450250958 EIDE BAILLY LLP 800 NICOLLET MALL STE 1300 MINNEAPOLIS MN 554027033 990 2023-01-01 866000294 STATE BAR OF ARIZONA STAT 6022524804 4201 N 24TH ST 100 PHOENIX AZ 850166266 JESSICA IENNARELLA CFO 6023407218 2024-11-14 1 1 MAYUMI STELLA P00970938 6122536500 2024-11-14 2023 2024-10-15 13:58:12Z JOEL F ENGLAND 4201 N 24TH ST 100 PHOENIX AZ 850166266 20973319 0 X HTTPS://WWW.AZBAR.ORG/ X 1933 AZ REGULATES ACTIVE ATTORNEYS IN ARIZONA AND PROVIDES EDUCATION/DEVELOPMENT FOR THE (CONT'D ON SCH O) LEGAL PROFESSION AND PUBLIC. 26 26 122 2179 1496437 262703 0 1078 18217139 18245810 211299 382110 748607 747545 19177045 19376543 486987 756351 0 0 9975603 10481818 0 0 0 6939251 6632709 17401841 17870878 1775204 1505665 25674316 28773235 5174536 5404158 20499780 23369077 X THE STATE BAR OF ARIZONA IS A PRIVATE, NON-PROFIT ORGANIZATION THAT EXISTS TO SERVE AND PROTECT THE PUBLIC WITH RESPECT TO THE PROVISION OF LEGAL SERVICES AND ACCESS TO JUSTICE. CONSISTENT WITH THESE GOALS, THE STATE BAR OF ARIZONA SEEKS TO IMPROVE THE (CONT'D ON SCH O) ADMINISTRATION OF JUSTICE AND THE COMPETENCY, ETHICS, AND PROFESSIONALISM OF LAWYERS PRACTICING IN ARIZONA. 0 0 REGULATORY - PURSUANT TO RULE 32 OF THE SUPREME COURT OF ARIZONA, THE STATE BAR OF ARIZONA ASSISTS THE COURT WITH THE REGULATION AND DISCIPLINE OF PERSONS ENGAGED IN THE PRACTICE OF LAW. THE STATE BAR RECEIVES, SCREENS, AND INVESTIGATES COMPLAINTS AGAINST ATTORNEYS, WHICH MAY BE DISMISSED, REQUIRE REMEDIAL ACTION OR LEAD TO MORE FORMAL PROCEEDINGS RESULTING IN VARIOUS FORMS OF DISCIPLINE. COMPLIANCE - PURSUANT TO RULE 32 OF THE SUPREME COURT OF ARIZONA, THE STATE BAR IS CHARGED WITH ENSURING THE COMPETENCY OF LAWYERS. CONSISTENT WITH RULE 44, LEGAL SPECIALIZATION, THE STATE BAR ADMINISTERS A PROGRAM THROUGH THE BOARD OF LEGAL SPECIALIZATION IN ORDER TO IMPROVE THE QUALITY OF LEGAL SERVICES. ADDITIONALLY, IN ACCORDANCE WITH RULE 45, MANDATORY CONTINUING LEGAL EDUCATION, THE STATE BAR ENSURES ACTIVE MEMBERS COMPLETE REQUIRED CONTINUING LEGAL EDUCATION ON AN ANNUAL BASIS. THE STATE BAR ALSO ASSISTS IN PROCESSING PRO HAC VICE ADMISSIONS UNDER RULE 39 AND PROCESSES IN HOUSE COUNSEL REGISTRATIONS UNDER RULE 38. PROFESSIONAL DEVELOPMENT - PURSUANT TO RULE 32 OF THE SUPREME COURT OF ARIZONA, THE STATE BAR IS TO CONDUCT EDUCATIONAL PROGRAMS REGARDING SUBSTANTIVE LAW, BEST PRACTICES, PROCEDURE AND ETHICS AND PROVIDE FORUMS FOR DISCUSSION REGARDING THE ADMINISTRATION OF JUSTICE AND PRACTICE OF LAW. THE STATE BAR IS ALSO RESPONSIBLE FOR FOSTERING IDEALS OF INTEGRITY, LEARNING, COMPETENCE, AND PUBLIC SERVICE AMONG ATTORNEYS AND SERVE THE PROFESSIONAL NEEDS OF ITS MEMBERS. THE STATE BAR FOSTERS PROFESSIONAL DEVELOPMENT OF ATTORNEYS THROUGH OPPORTUNITIES TO SERVE ON ADVISORY GROUPS, COMMITTEES, SECTIONS, AND TASK FORCES, AND BY PROVIDING CONTINUING LEGAL EDUCATION, PRACTICE MANAGEMENT ASSISTANCE, LEGAL RESOURCES AND VARIOUS OTHER MEMBER SERVICES. ACCESS TO JUSTICE: PURSUANT TO RULE 32 OF THE SUPREME COURT OF ARIZONA, THE STATE BAR MISSION INCLUDES ACCESS TO JUSTICE, WHICH INVOLVES EFFORTS TO IMPROVE ACCESS TO OUR LEGAL SYSTEM FOR ALL ARIZONIANS. THE BAR CARRIES OUT THIS TASK THROUGH ITS PUBLIC SERVICE CENTER BY SUPPORTING VARIOUS LEGAL AID ORGANIZATIONS, ASSISTING WITH ACCESS TO ATTORNEYS, WORKING TO EDUCATE THE PUBLIC ABOUT THE LEGAL PROCESS, AND BY SUPPORTING THE SUPREME COURT'S ACCESS TO JUSTICE COMMISSION.PUBLICATIONS: (1) ARIZONA ATTORNEY - MONTHLY MAGAZINE WITH SUBSTANTIVE ARTICLES ABOUT LEGAL ISSUES AND TOPICS THAT AFFECT THE LEGAL PROFESSION; (2) ELEGAL - SERIES OF ELECTRONIC NEWSLETTERS UPDATING MEMBERS ON LEGAL NEWS, ISSUES, ETHICS OPINIONS AND COURT CASESTHE CLIENT PROTECTION FUND OF THE STATE BAR OF ARIZONA IS A TRUST AND, AS SUCH, IS TECHNICALLY A SEPARATE LEGAL ENTITY FROM THE STATE BAR OF ARIZONA. HOWEVER, BECAUSE THE STATE BAR HAS AN ADMINISTRATIVE ROLE, IT IS INCLUDED IN THE STATE BAR'S FEDERAL INCOME TAX REPORTING. THE CLIENTPROTECTION FUND EXISTS TO PROMOTE THE PUBLIC CONFIDENCE IN THE ADMINISTRATION OF JUSTICE AND THE INTEGRITY OF THE LEGAL PROFESSION BY REIMBURSING LOSSES CAUSED BY THE DISHONEST CONDUCT OF LAWYERS ADMITTED AND LICENSED TO PRACTICE IN ARIZONA. IN 2023 THE ORGANIZATION PROVIDED ASSISTANCE TO 68 CLAIMS FILED WITH THE FUND. 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 56 0 1 122 1 1 1 0 0 0 1 1 0 0 0 X 26 26 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X X JESSICA IENNARELLA CFO 6023407218 4201 N 24TH ST STE 100 PHOENIX AZ 850166266 JESSICA S SANCHEZ PRESIDENT (THRU 6/23) 7.50 0.00 X X 0 0 0 BENJAMIN F TAYLOR II PRES(AS OF 6/23)/ PRES.-ELECT(THRU 6/23) 7.50 0.00 X X 0 0 0 TED A SCHMIDT PRES-ELECT(AS OF 6/23)/VP (THRU 6/23) 7.50 0.00 X X 0 0 0 SAMUEL J SAKS VP(AS OF 6/23)/TREAS/SEC(THRU 6/23) 7.50 0.00 X X 0 0 0 DOREEN MCPAUL SECRETARY/TREASURER (AS OF 6/23) 7.50 0.00 X X 0 0 0 ERIC M RUCHENSKY ELECTED GOVERNOR (THRU 6/23) 5.00 0.00 X 0 0 0 SHARON A FLACK ELECTED GOVERNOR (THRU 6/23) 5.00 0.00 X 0 0 0 D CHRISTOPHER RUSSELL ELECTED GOVERNOR 5.00 0.00 X 0 0 0 SANDRA BENSLEY DISTRICT GOVERNER 5.00 0.00 X 0 0 0 LETICIA MARQUEZ ELECTED GOVERNOR 5.00 0.00 X 0 0 0 DIANDRA DAY BENALLY ELECTED GOVERNOR 5.00 0.00 X 0 0 0 KELSI LANE ELECTED GOVERNOR 5.00 0.00 X 0 0 0 ROBERT J MCWHIRTER ELECTED GOVERNOR 5.00 0.00 X 0 0 0 JOHN W MOODY DISTRICT GOVERNER 5.00 0.00 X 0 0 0 DAVID B ROSENBAUM DISTRICT GOVERNER 5.00 0.00 X 0 0 0 JIMMIE DEE SMITH ELECTED GOVERNOR 5.00 0.00 X 0 0 0 DENNIS M FITZGIBBONS ELECTED GOVERNOR 5.00 0.00 X 0 0 0 ROBYN M AUSTIN PUBLIC GOVERNOR 5.00 0.00 X 0 0 0 MIGNONNE HOLLIS PUBLIC GOVERNOR 5.00 0.00 X 0 0 0 JONATHAN F MARTONE PUBLIC GOVERNOR (THRU 6/23) 5.00 0.00 X 0 0 0 DAVID K BYERS AT-LARGE GOVERNOR 5.00 0.00 X 0 0 0 DOREEN MCPAUL AT-LARGE GOVERNOR (THRU 6/23) 5.00 0.00 X 0 0 0 NICHOLAS JAMES BROWN YLD DIVISION PRESIDENT (THRU 6/23) 5.00 0.00 X 0 0 0 ELIZABETH SCHMITT YLD DIVISION PRESIDENT 5.00 0.00 X 0 0 0 JENA DECKER XU ELECTED GOVERNOR 5.00 0.00 X 0 0 0 PRESTON L POLLOCK ELECTED GOVERNOR 5.00 0.00 X 0 0 0 CEDRIC R DAVE PUBLIC GOVERNOR 5.00 0.00 X 0 0 0 MIKE BAUMSTARK AT-LARGE GOVERNOR 5.00 0.00 X 0 0 0 HEATHER BAKER-MUSHKATEL ELECTED GOVERNOR 5.00 0.00 X 0 0 0 DAVID J JOHNS ELECTED GOVERNOR 5.00 0.00 X 0 0 0 HENRY EDWARD WHITMER ELECTED GOVERNOR 5.00 0.00 X 0 0 0 CORTEZ W SMITH PUBLIC GOVERNOR 5.00 0.00 X 0 0 0 JOEL ENGLAND CEO/EXECUTIVE DIRECTOR 55.00 0.00 X 200679 0 36578 MARET VESSELLA CHIEF BAR COUNSEL 55.00 0.00 X 185115 0 21786 JESSICA IENNARELLA CFO (AS OF 12/23) 55.00 0.00 X 118735 0 23965 KATHY GERHART CFO (THRU 12/23) 55.00 0.00 X 170127 0 21209 LORI MAXWELL CHIEF INFORMATION OFFICER 50.00 0.00 X 164887 0 21623 AMY REHM DEPUTY CHIEF BAR COUNSEL 50.00 0.00 X 156479 0 16875 LISA PANAHI GENERAL COUNSEL 50.00 0.00 X 140495 0 40122 ROBERTA TEPPER CHIEF MEMBER SERVICE OFFICER 50.00 0.00 X 140223 0 19940 CRAIG HENLEY SENIOR BAR COUNSEL 50.00 0.00 X 132272 0 16320 1409012 0 218418 29 0 1 0 LAWRENCE DUNCAN 3905 W DARROW ST PHOENIX AZ 85041 CONSULTING - NETWORK SUPPORT 115200 1 1078 1078 1078 MEMBERSHIP DUES 812900 11258280 11258280 PROFESSIONAL DEVELOPMENT 611430 5160292 3772092 1388200 COMPLIANCE 812900 1170888 1170888 ASSESSMENTS 812900 482844 482844 REGULATORY 812900 173506 173506 18245810 386782 386782 164454 68986 95468 595237 27600 567637 567637 12769 554868 1564504 1568881 295 -4377 -295 -4672 -4672 DEFERRED COMPENSATION PLAN REVENU 813920 15454 15454 15454 19376543 16942050 1496437 936978 127940 628411 780663 7713310 492562 869401 625882 58454 58635 889 30272 1226531 44722 877250 899898 754833 63525 1114702 607087 150532 FEDERAL UBIT 54425 BANK AND CREDIT CARD FE 355635 TRAINING AND DEVELOPMEN 159384 MEMBER RESEARCH TOOL 80004 95931 17870878 4224773 4592089 73677 69351 77596 167928 85571 54298 547115 599281 19772528 10570202 9422382 9202326 10853512 13586027 389690 501935 25674316 28773235 1426419 1711088 3326235 3189115 421882 503955 5174536 5404158 X 20499780 23369077 20499780 23369077 25674316 28773235 1505665 1363632 0 X X 0 1 X 1 0 0 0 0 10784076 889 889 53920 -53031 1753943 1753943 7739696 3833212 3906484 6110543 3185858 2924685 2075556 2012918 62638 2092790 1538214 554576 9202326 TENANT SECURITY DEPOSIT 42508 DUE TO SUPREME COURT 39729 DEFERRED COMPENSATION OBLIGATIONS 421718 503955 X PART X, LINE 2: THE ORGANIZATION IS ORGANIZED AS AN ARIZONA NONPROFIT AND HAS BEEN RECOGNIZED BY THE IRS AS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN IRC SECTION 501(C)(6), QUALIFY FOR THE CHARITABLE CONTRIBUTION DEDUCTION, AND HAVE BEEN DETERMINED NOT TO BE PRIVATE FOUNDATIONS. MANAGEMENT HAS DETERMINED THE CPF IS A GRANTOR TRUST AND AS SUCH IT IS A DISREGARDED ENTITY TREATED AS A DIVISION OF SBA SOLELY FOR INCOME TAX PURPOSES. ACCORDINGLY, CONTRIBUTIONS TO EITHER ORGANIZATION DO NOT QUALIFY FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170(B)(1)(A). SBA IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE IRS. CPF IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 1041) WITH THE IRS. IN ADDITION, THE ENTITIES ARE SUBJECT TO INCOME TAX ON NET INCOME THAT IS DERIVED FROM BUSINESS ACTIVITIES THAT ARE UNRELATED TO THEIR EXEMPT PURPOSES. THE ORGANIZATION DETERMINED THAT CPF IS NOT SUBJECT TO UNRELATED BUSINESS INCOME TAX AND HAS NOT FILED AN EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURN (FORM 990-T) WITH THE IRS. MANAGEMENT BELIEVES THAT EACH ENTITY HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL FILING REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS. THE ORGANIZATION WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS AND LIABILITIES IN INCOME TAX EXPENSE IF SUCH INTEREST AND PENALTIES ARE INCURRED. THE ENTITIES' FORMS 990, 990-T AND OTHER INCOME TAX FILINGS REQUIRED BY STATE, LOCAL, OR NON-U.S. TAX AUTHORITIES ARE NO LONGER SUBJECT TO TAX EXAMINATION FOR YEARS BEFORE 2020. 1 ARIZONA FOUNDATION FOR LEGAL SERVICES & EDUCATION 4201 N 24TH STREET STE 210 PHOENIX AZ 85016 953351710 501(C)(3) 59740 60000 PER MEMORANDUM OF UNDERSTANDING (MOU) RENT REDUCTION PER MOU SUPPORT FOR PRO BONO LEGAL SERVICES 1 0 CLIENT PROTECTION FUND (CPF) 69 617713 CRIMINAL JUSTICE SECTION SCHOLARSHIP 6 7698 TAX SECTION 3 3000 PART I, LINE 2: A MEMORANDUM OF UNDERSTANDING (MOU) OF SHARED INITIATIVES BETWEEN THE STATE BAR OF ARIZONA AND THE ARIZONA FOUNDATION FOR LEGAL SERVICES & EDUCATION (AZFLSE) DOCUMENTS THE AGREEMENT REGARDING THE AMOUNT AND TYPE OF ASSISTANCE PROVIDED TO THE AZFLSE. PART III: THE TRUSTEES OF THE CLIENT PROTECTION FUND OF THE STATE BAR OF ARIZONA CONSIDER CLAIMS ALLEGING A LOSS OF MONEY OR PROPERTY DUE TO THE DISHONEST CONDUCT OF A LAWYER ACTING AS A LAWYER OR FIDUCIARY TO THE CLAIMANT. THE DECLARATION OF TRUST ESTABLISHES THE EVENTS BY WHICH A CLAIM MAY BE CONSIDERED FOR PAYMENT, AND THE MAXIMUM AWARD AMOUNT PER CLAIMANT AND AGGREGATE CLAIMS AGAINST ANY ONE LAWYER. SCHOLARSHIPS WERE SPONSORED BY THE TAX LAW SECTION AND THE CRIMINAL JUSTICE LAW SECTION. LAW SCHOOL STUDENTS MUST SUBMIT APPLICATIONS OR ESSAYS TO RECEIVE THE SCHOLARSHIP. THE APPLICATIONS AND/OR ESSAYS ARE REVIEWED BY A COMMITTEE COMPRISED OF MEMBERS OF THE INVOLVED SECTION AND RECIPIENTS ARE SELECTED. SCHOLARSHIPS PAID IN 2023 BY THE TAX SECTION WERE PAID DIRECTLY TO THE STUDENT WITH NO RESTRICTIONS ON USE. SCHOLARSHIPS PAID IN 2023 BY THE CRIMINAL JUSTICE SECTION FOR UNIVERSITY OF ARIZONA STUDENTS WERE PAID DIRECTLY TO THE STUDENT WITH NO RESTRICTIONS ON USE. SCHOLARSHIPS PAID IN 2023 BY THE CRIMINAL JUSTICE SECTION FOR ARIZONA STATE UNIVERSITY STUDENTS WERE PAID DIRECTLY TO THE UNIVERSITY. X 1 1 X X X X 0 0 0 JOEL ENGLAND CEO/EXECUTIVE DIRECTOR 200000 0 0 0 679 0 11809 0 25402 0 237890 0 0 0 MARET VESSELLA CHIEF BAR COUNSEL 174716 0 1650 0 8749 0 10571 0 11848 0 207534 0 0 0 KATHY GERHART CFO (THRU 12/23) 133757 0 150 0 36220 0 9665 0 12176 0 191968 0 0 0 LORI MAXWELL CHIEF INFORMATION OFFICER 155494 0 650 0 8743 0 9098 0 13158 0 187143 0 0 0 LISA PANAHI GENERAL COUNSEL 129865 0 2650 0 7980 0 8761 0 31984 0 181240 0 0 0 AMY REHM DEPUTY CHIEF BAR COUNSEL 152706 0 3150 0 623 0 9202 0 8306 0 173987 0 0 0 ROBERTA TEPPER CHIEF MEMBER SERVICE OFFICER 130324 0 1150 0 8749 0 7974 0 12461 0 160658 0 0 0 PART I, LINE 1A STATE BAR OF ARIZONA HAS WRITTEN WELLNESS PROGRAM TO SUPPORT A HEALTHY LIFESTYLE. SBA WILL REIMBURSE $75 PER QUARTER FOR MONTHLY FEES. ALL EMPLOYEES ARE ELIGIBLE. FORM 990, PART VI, SECTION A, LINE 4 THE ARTICLES WERE AMENDED TO ADDRESS THE DISTRIBUTION OF ASSETS UPON DISSOLUTION. THE AMENDMENT ALLOWS THE ASSETS OF THE ORGANIZATION TO BE DISTRIBUTED TO A 501(C)(6) UPON DISSOLUTION. SPECIFICALLY, THE LANGUAGE READS "IF THE CORPORATION IS DISSOLVED, AND AFTER THE LIABILITIES OF THE CORPORATION HAVE BEEN DISCHARGED OR PROVIDED FOR PURSUANT TO ARIZONA'S NONPROFIT CORPORATION STATUTES, THE REMAINING ASSETS MAY BE DISTRIBUTED, AS DESIGNED BY THE BOARD OF GOVERNORS, TO: (1) AN ORGANIZATION OR ORGANIZATIONS OPERATING A BUSINESS LEAGUE WITHIN THE MEANING OF IRS CODE SECTION 501(C)(6); OR (2) AN ORGANIZATION OR ORGANIZATIONS QUALIFIED AS EXEMPT UNDER SECTION 501(C)(3) OF THE IRS CODE. ANY ASSETS NOT SO DISPOSED OF SHALL BE DISPOSED OF BY A COURT OF COMPETENT JURISDICTION IN MARICOPA COUNTY". FORM 990, PART VI, SECTION A, LINE 6 AS PROVIDED IN RULE 32 (C) OF THE RULES OF THE SUPREME COURT OF ARIZONA AND THE BYLAWS OF THE CORPORATION, MEMBERSHIP IS DIVIDED INTO SIX CLASSES: ACTIVE, INACTIVE, RETIRED, SUSPENDED, JUDICIAL AND AFFILIATE. DISBARRED OR RESIGNED PERSONS ARE NOT MEMBERS OF THE BAR. ACTIVE MEMBERS CONSIST OF EVERY PERSON LICENSED TO PRACTICE LAW IN THE STATE OF ARIZONA EXCEPT FOR PERSONS WHO ARE INACTIVE, RETIRED, SUSPENDED, JUDICIAL, OR AFFILIATE MEMBERS. LEGAL PARAPROFESSIONALS ARE AFFILIATE MEMBERS FOR PURPOSES OF REGULATION AND DISCIPLINE UNDER RULE 32. ALL PERSONS ADMITTED TO PRACTICE IN ACCORDANCE WITH THE RULES OF THE COURT SHALL, BY THAT FACT, BECOME ACTIVE OR AFFILIATE MEMBERS OF THE STATE BAR. UPON ADMISSION, THE APPLICANT MUST PAY A FEE AS REQUIRED BY THE SUPREME COURT AND AN ANNUAL MEMBERSHIP FEE TO MAINTAIN MEMBERSHIP STATUS. MEMBERS HAVE LIMITED RIGHTS TO VOTE ON CERTAIN ISSUES REGARDING THE GOVERNANCE OF THE ORGANIZATION AND DO NOT RECEIVE ANY OF THE ORGANIZATION'S PROFITS, EXCESS DUES, OR RECEIVE A SHARE OF THE ORGANIZATION'S NET ASSETS UPON DISSOLUTION. FORM 990, PART VI, SECTION A, LINE 7A PER RULE 32, THE BOARD IS COMPOSED OF SIXTEEN (16) ELECTED GOVERNORS AND TEN (10) APPOINTED GOVERNORS. ELECTED GOVERNORS ARE ELECTED BY MEMBERS IN SPECIFIED DISTRICTS. THE SUPREME COURT APPOINTS FOUR (4) PUBLIC GOVERNORS WHO MUST NOT BE STATE BAR OF ARIZONA MEMBERS OF THE STATE BAR AND MUST NOT HAVE, OTHER THAN AS CONSUMERS OF LEGAL SERVICES, A FINANCIAL INTEREST IN THE PRACTICE OF LAW; THREE (3) AT-LARGE GOVERNORS, WHO MAY BE FORMER ELECTED, PUBLIC, OR DISTRICT GOVERNORS; AND (3) DISTRICT GOVERNORS WHO MUST BE MEMBERS OF THE STATE BAR AND MEET DEFINED DISTRICT REQUIREMENTS. FORM 990, PART VI, SECTION A, LINE 7B RULE 32 (ORGANIZATION OF THE STATE BAR OF ARIZONA) OF THE RULES OF THE ARIZONA SUPREME COURT GOVERN THE MISSION, COMPOSITION OF THE BOARD OF DIRECTOR, MEMBERSHIP CLASSES, MEMBERSHIP FEES AND REQUIRE OVERSIGHT BY THE ARIZONA SUPREME COURT. MEMBERSHIP FEES ARE ESTABLISHED BY THE BOARD WITH THE CONSENT OF THE SUPREME COURT OF ARIZONA. FORM 990, PART VI, SECTION B, LINE 11B THE CHIEF FINANCIAL OFFICER REVIEWS THE RETURN WITH THE TAX PREPARER. A COMPLETE COPY OF THE FINAL FORM 990 IS PROVIDED TO THE CEO/EXECUTIVE DIRECTOR AND MEMBERS OF THE BOARD OF GOVERNORS FOR REVIEW PRIOR TO THE FILING OF THE RETURN. THE FINANCE AND AUDIT COMMITTEE IS ALSO PROVIDED WITH A COMPLETE COPY OF THE FINAL FORM 990 FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 12C THE STATE BAR OF ARIZONA HAS A WRITTEN CONFLICT OF INTEREST POLICY. THIS POLICY IS DISCUSSED WITH ALL NEW EMPLOYEES AND NEW BOARD MEMBERS. ALL EMPLOYEES ARE REQUIRED TO SIGN A WRITTEN STATEMENT THAT THEY HAVE READ THE POLICY. IN ADDITION, THE STATE BAR HAS A MANDATORY ANNUAL ETHICS TRAINING. EACH EMPLOYEE IS RESPONSIBLE FOR COMING FORWARD WITH A POTENTIAL CONFLICT OF INTEREST OR REPORTING POSSIBLE CONFLICTS THAT THEY MAY BE AWARE OF. THE STATE BAR OF ARIZONA DEPARTMENT OR DIVISION HEAD IS RESPONSIBLE FOR REVIEWING POTENTIAL CONFLICTS. IF IT INVOLVES A DIVISION HEAD, REVIEW RESIDES WITH THE CEO/EXECUTIVE DIRECTOR. IF IT INVOLVES THE CEO/EXECUTIVE DIRECTOR, REVIEW RESIDES WITH THE BOARD PRESIDENT. ALL BOARD MEMBERS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST DISCLOSURE STATEMENT ON AN ANNUAL BASIS AT THE BEGINNING OF THE BOARD OF GOVERNORS TERM YEAR. IF A PERSON IS IDENTIFIED WITH A CONFLICT, HE OR SHE IS REMOVED FROM THE VETTING AND DECISION-MAKING PROCESS RELATED TO THAT CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMPENSATION COMMITTEE, WHICH IS COMPRISED OF ACTIVE BOARD MEMBERS, SETS AND ADJUSTS THE SALARY OF THE CEO/EXECUTIVE DIRECTOR. THE CEO/EXECUTIVE DIRECTOR SALARY IS REVIEWED ANNUALLY. THE POLICY ALLOWS THE BOARD TO SEEK ASSISTANCE FROM OUTSIDE ADVISORS AND CONSULTANTS TO OBTAIN OBJECTIVE AND MARKET-BASED DATA, SUCH AS COMPENSATION STUDIES, INDEPENDENT FIRMS, ETC. THE EXECUTIVE COMPENSATION COMMITTEE REVIEWS RESEARCH PROVIDED BY AN INDEPENDENT CONSULTANT AND MAKES RECOMMENDATIONS TO THE BOARD. THE BOARD THEN VOTES TO APPROVE, MODIFY, OR REJECT THE RECOMMENDATION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S ARTICLES OF INCORPORATION, BY-LAWS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FINANCIAL INFORMATION IS ALSO PUBLISHED ANNUALLY IN OUR MAGAZINE. AUDITED FINANCIAL STATEMENTS ARE POSTED ON THE ORGANIZATION'S WEBSITE. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS A FINANCE AND AUDIT COMMITTEE RESPONSIBLE FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THE COMMITTEE COORDINATES THE AUDIT WITH THE INDEPENDENT AUDITORS. ANY FINANCIAL CONCERN ENCOUNTERED IN THE SYSTEM IS ROUTED TO THIS COMMITTEE FOR REVIEW. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEARS. CLIENT PROTECTION FUND OF THE STATE BAR OF ARIZONA 4201 N 24TH ST STE 100 PHOENIX AZ 85016 476411607 PROMOTE PUBLIC CONFIDENCE IN LEGAL PROFESSION AZ 812749 2437132 STATE BAR OF ARIZONA