IOLTA Revenue

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

Yr 92 Yr 93 Yr 94 Yr 95 Yr 96 Yr 97 Yr 98 Yr 99 Yr 00 Yr 01 Yr 02 Yr 03 Yr 04 Yr 05 Yr 06 Yr 07

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

2005 -Change in Rule: reasonable charge, no negative netting, agreement signed

2007 - Comparability

IOLTA Revenue History External Factors Impacting Amounts

Principal Balances rising

Interest rates on some accounts

Increased # accounts – (~300)

$200,000

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

2007 2008

IOLTA Revenue 2007 - 2008

Jan

Feb

2007 2008Jan 221,913$ 259,721$ 37,807$ 17.04%Feb 228,425$ 238,692$ 10,267$ 4.49%

Increase over Prior Year

IOLTA Revenue Comparing 2007 – 2008

So what is the bad

news???

2008 Actual vs Budget

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

January February

2008 Actual

Budgeted

January February

2008 Actual $ 259,721 $ 238,692

Budgeted $ 290,000 $ 290,000

2008 Budget $3,570,000- $82K below

budget in first 2 months

What Happened

?

Interest Remitted Principle Bal

JAN DEC $Change % Change JAN DEC $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 

$ 8,288,97

1  $ (1,456,754) -.17.58%

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 $ 514 12.83% $ 4,454,236 $ 5,248,456 $ (794,221) -15.13%

Compass $ 6,113 $ 5,352 $ 761 14.21% $ 6,845,640 $ 6,717,724 $ 127,916 1.90%

M&I $ 6,970 $ 5,737 $ 1,233 21.49% $ 10,436,811 $ 9,702,869 $ 733,941 7.56%

1st Nat'l Bank of AZ $ 7,458 $ 5,574 $ 1,884 33.80% $ 4,931,861 $ 3,706,192 $ 1,225,669 33.07%

$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%

Sum of INTEREST DIFFBANK Total1st Bank Yuma 2$ Arizona Business Bank 2,712$ Bank of the West 242$ Bank of Tucson 1,004$ Biltmore Bank of Arizona -$ BofA 153$ Chase Bank 21,934$ Comerica Bank 73$ Commerce Bank of Arizona 977$ Country BankFirst Fidelity -$ First National Bank of Arizona 1,852$ Gold Canyon Bank 1$ Harris Bank 31,144$ Heritage Bank 25$ Ironstone Bank 867$ Johnson Bank 7,142$ Meridian Bank 13$ Mesa Bank 1,906$ MidFirst Bank (1)$ National Bank of Arizona 191$ Northern Trust Bank 5,904$ Pinnacle BankSouthern Arizona Community Bank 235$ Summit Bank -$ Sunrise Bank of Arizona 220$ US Bank 292$ Valley First Community Bank 212$ Wells Fargo Bank 94,076$ Western National Bank 116$ Grand Total 171,293$

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

$21,934

$31,138

$7,142 $5,876

$94,019

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Chase Bank Harris Bank Johnson Bank Northern Trust Bank Wells Fargo Bank

NO

YES

Drop Page Fields Here

Sum of INTEREST DIFF

BANK

Diff > $1K

January 2008 Comparability Noncompliance – Major Banks

2008 Actual vs Budget

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

January February

2008 Actual

Budgeted

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 $368,240 --0--

2008 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