1. Legal Budgeting Project by Jason Huszar

2. Overview Newland Communities Largest residential land developer in the United States Largest residential land developer in the United States 23 Offices Nationwide 23 Offices Nationwide Approximately 200 employees Approximately 200 employees IT Director (“Firefighter”) Oversee and manage IT operations and strategic technology initiatives Oversee and manage IT operations and strategic technology initiatives Legal Department Approached to manage project Approached to manage project Team: Accounting, Legal, IT, Software Provider

3. Introduction Problem Statement The legal department lacks the ability to analyze legal expenses across projects by vendor (Law Firms) and cost codes. The legal department lacks the ability to analyze legal expenses across projects by vendor (Law Firms) and cost codes. Business Objective Conduct positive NPV project that will reduce the time requirements of Newland’s General Counsel, and staff, to review legal expenses. Conduct positive NPV project that will reduce the time requirements of Newland’s General Counsel, and staff, to review legal expenses.

4. Constraints Maximum of 6 months to complete Minimize time commitment of team members Cannot Utilize Newland’s in-house developer General Counsel = difficult requirements gathering Project not to exceed $30,000

5. Requirements Development a method for retaining vendor information when processing multi-project invoices. Cleanse accounting data to ensure accuracy and user-acceptance. Report formatting must be clearly labeled and easy to read. Phase 2: incorporate budget variances. Phase 3: Dev. Advanced Analysis dashboard for General Counsel (Time, Region, Vendor, Type)

6. Problems Multi-Project invoices lose vendor specific information during A/P processing Vendor Duplication 2003 legal expenses miscoded Lack of procedure to prevent vendor duplication and miscoding of expenses Current accounting system report format

7. Problem Solutions Multi-Project Invoices Modify reimbursable corporate job master record to associate with respective project job Modify reimbursable corporate job master record to associate with respective project job Vendor Consolidation Develop vendor consolidation layout template for software provider and ensure proper implementation Develop vendor consolidation layout template for software provider and ensure proper implementation Miscoded Expense Obtain approval and reclassify all 2003 expenses to appropriate legal designated cost codes. Obtain approval and reclassify all 2003 expenses to appropriate legal designated cost codes.

8. Problem Solutions Lack of Coding Procedures Create and disseminate proper legal coding procedures Create and disseminate proper legal coding procedures Current Report Format Unacceptable Develop cleaner on-page layout and larger font size Develop cleaner on-page layout and larger font size

9. Progress Design Document Created/Gen. Counsel approved RFP submitted/Proposal approved Reclassification of 2003 Expenses and Coding Procedure Implemented Vendor Consolidation List Created and Approved(6000 -> 4000) Vendor Consolidation Tested in Test Environment

10. Progress Reports Implemented in Test Environment Vendor Consolidation will be implemented into Production Environment July 12, 2003. Formal Report Review on July 14, 2003. Report Implemented into Production Environment on July 21, 2003.

11. Summary Within Budget Slightly Delayed Project resulted in many positive changes Phase 2: Budget Variance Reports Begin Mid/Late August Begin Mid/Late August Phase 3: Legal Data Mart/Advanced Analysis Dashboard Begin Early October Begin Early October

12. Legal Budgeting Project Questions?