To ensure that it can justify future expenditures that exceed a certain dollar level, such as capital or IT projects that cost more than $2 million, the State Bar should implement a policy that requires accurate cost-benefit analyses comparing relevant cost estimates. The policy should include a requirement that the State Bar present the analyses to the board to ensure that it has the information necessary to make appropriate and cost-effective decisions. In addition, the State Bar should be clear about the sources of funds it will use to pay for each project.
At its July 2016 meeting, the board adopted a policy that for all contracts, projects, and expenditures reasonably expected to exceed $2,000,000, State Bar staff must develop and present a written cost-benefit analysis to the board. The policy requires action by the board or the relevant board committee to affirmatively approve the contract, project, or expenditure. All such cost-benefit analyses must discuss a recommended course of action and alternatives. (Agenda Item 147 JULY 13 2015.)
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