Yr 92 $1,342,009 Yr 93 $1,044,296 Yr 94 $1,159,356 Yr 95 $1,320,033 Yr 96 $1,391,380 Yr 97 $1,508,607 Yr 98 $1,530,045 Yr 99 $1,280,571 Yr 00 $1,617,651 Yr 01 $1,415,661 Yr 02 $1,228,602 Yr 03 $1,113,004 Yr 04 $1,149,473 Yr 05 $1,892,573 Yr 06 $2,507,511 Yr 07 $2,877,392 Internal Controls Impacting Amounts 2004 – Increase monitoring Change in Rule: reasonable charge, no negative netting, agreement signed Comparability IOLTA Revenue History External Factors Impacting Amounts Principal Balances rising Interest rates on some accounts Increased # accounts – (~300)

IOLTA Revenue Comparing 2007 – 2008 So what is the bad news???

JanuaryFebruary 2008 Actual $ 259,721 $ 238,692 Budgeted $ 290, Budget $3,570,000- $82K below budget in first 2 months What Happened ?

Interest RemittedPrinciple Bal JANDEC$Change% ChangeJANDEC$Change% Change Northern Trust $ 31,388 $ 36,594 $ (5,206)-14.23% $ 13,431,818 $ 15,093,191 $(1,661,373)-11.01% Chase $ 21,619 $ 25,686 $ (4,066)-15.83% $ 36,170,652 $ 37,299,135 $(1,128,483)-3.03% National Bank of Az $ 33,660 $ 37,289 $ (3,630)-9.73% $ 31,482,091 $ 34,987,944 $(3,505,853)-10.02% Bank of America $ 59,074 $ 62,107 $ (3,033)-4.88% $ 37,724,389 $ 39,108,802 $(1,384,412)-3.54% Sonoran Bank $ 1,838 $ 4,358 $ (2,520)-57.83% $ 4,756,596 $ 4,799,173 $ (42,578)-0.89% Alliance Bank $ 1,943 $ 3,840 $ (1,898)-49.41%$ 6,832,217 $ 8,288,971 $ (1,456,754) % US Bank $ 4,725 $ 6,187 $ (1,462)-23.63% $ 2,117,791 $ 2,370,510 $ (252,719)-10.66% Mohave State Bnk $ 705 $ 1,539 $ (834)-54.21% $ 667,252 $ 1,360,408 $ (693,157)-50.95% Wells Fargo $ 39,169 $ 39,781 $ (613)-1.54% $ 55,571,218 $ 55,836,292 $ (265,074)-0.47% AZ Bus Bnk (CoBiz) $ 4,524 $ 4,010 $ % $ 4,454,236 $ 5,248,456 $ (794,221)-15.13% Compass $ 6,113 $ 5,352 $ % $ 6,845,640 $ 6,717,724 $ 127, % M&I $ 6,970 $ 5,737 $ 1, % $ 10,436,811 $ 9,702,869 $ 733, % 1st Nat'l Bank of AZ $ 7,458 $ 5,574 $ 1, % $ 4,931,861 $ 3,706,192 $ 1,225, % $219,186 $238,055 $(18,870)-7.93% $215,341,371 $224,519,668 $(9,097,097)-4% NOTE: Lower Balances this month meant $18K less One Reason - Economy Downward Trends

Second Reason - Comparability Not Yet 100%

National sent $33,112 as donation and commitment to match business saving product. With lower fed rate – the keeps the interest remitted the same. Brand new staff – not much movement Reviewing retro proposal – implementing money market with no fees -$20K to $28K increase Communication continues. January Net Increase if Comparability Rate

January 2008 Comparability Noncompliance – Major Banks

IF comparability 100% Jan Income would have been $431,114

Immediate Concern Need CLS $ 367,500 – June-Dec DNA $ 250,000 - building SALA $ 257,500 – June-Dec Capital Loans to-date $150,000$368, funding- $ 125,000 Consumer Law Project $367,500 – 6 month funding $492,500 - total $145,000$ 70,000 (dev. Dir) $257,500 – 6 month funding $327,500 - total 2007 funding (IOLTA only) $238,500$145,000$255,000