December 2004

1. 2004-2005

Fiscal Condition. For the 12 month period ending September 30, 2004, the Section had total income consisting of $81,032 and spent a total of $78,873.27, resulting in net income to the Section of $2,158.73. We ended the fiscal year with a fund balance of $109,612.39. The final income statement issued by the State Bar is attached as Exhibit 1. Exhibit 2 is a table comparing the Section's 2003-2004 budget to its actual income and expenses, with some items being reclassified from that listed in Exhibit 1. Exhibit 3 compares the 2003-2004 Committee and Directorship budgets with the actual committee expenses incurred through September 30, 2004.

2. 2004-2005 Budget.

Attached as Exhibit 4 is an outline of the Section budget for 2004-2005. Exhibit 5 is the Committee and Directorship budget requests which I have received to date. The current budget calls for the Section to just break even in Fiscal Year 2005, despite the large revenue increase. The Treasurer hopes to finalize the fiscal year 2005 budget before the end of 2004.

3. Focus areas in 2005.

On the revenue side, our dues increase should provide an extra $30,000 in revenue this year. We will also continue to focus on sponsorship revenue for the Business Law Institute. On the expense side, eliminating the boot camp should reduce expenses by about $5,000. Eliminating the annual meeting will also have an effect, although there will still be a Council meeting and related dinner at that time, which provided the bulk of this year's annual meeting expenses. The Treasurer intends to review expenses related to the Business Law Journal, which is our most important contact with Section membership, but also our most significant expense item.

Respectfully submitted, Mark R. High Dickinson Wright PLLC 500 Woodward Avenue, Suite 4000 Detroit, MI 48226 Phone: 313/223-3500 Fax: 313/223-3598 E-mail: mhigh@dickinsonwright.com

September 2004

1. 2003-2004 Fiscal Condition
   The Section had a surplus of $123,813.13 as of August 31,, 2004, and is projected to finish the fiscal year with a surplus of approximately $89,500. This is a reduction in our fund balance by approximately $18,000. The current budget information and projections for the year-end are attached.
2. 2003-2004 Committee Budgets
   The Committee budgets reflected in the attached statement were approved by the Council at its March meeting, but with an expectation that some of the budgeted money will not be required. Actual expenditures are projected to be approximately $9,100. Actual and projected year-end Committee budgets and allocations of Committee expenses during this fiscal year are attached.
3. Section Dues
   The current Section dues are $20.00. The Section Council authorized an increase in the Section dues to $30.00 beginning with the 2004-2005 fiscal year, and the Board of Commissioners has approved the dues increase. The State Bar of Michigan Finance Department has processed the information and has already reflected the increase on next year's dues invoice.
4. Listserv
   The State Bar of Michigan has notified the Sections that the costs for the maintenance and usage fees for the Section Listserv will no longer be borne by the State Bar of Michigan. This will result in an expense starting in the next fiscal year. (See Technology Committee report for further discussion.)

Attachments Effective October 1, 2004:
2003-2004 Budget
2003-2004 Projected Year-End

Michael S. Khoury
Jaffe, Raitt, Heuer, & Weiss
One Woodward Avenue
Detroit, MI 48226
(313) 964-7168
(313) 961-8358 (fax)
mkhoury@jaffelaw.com

May 2004

1. 2003-2004 Fiscal Condition
   The Section had a surplus of $159,287.64 as of April 30, 2004, and is projected to finish the fiscal year with a surplus of approximately $80,000. The current budget information is attached.
2. 2003-2004 Committee Budgets
   The Committee budgets reflected in the attached statement were approved by the Council at its March meeting, but with an expectation that some of the budgeted money will not be required. If the full budgeted amounts are utilized, the Section would have a deficit of approximately $60,000 for the current fiscal year and would bring our fund balance to an unacceptably low level. As a result, Committee chairs and directors were asked to consider expenditures carefully. The committee budget schedule tracks and allocates Committee expenses during this fiscal year.
3. Section Dues
   The current Section dues are $20.00. The Section Council authorized an increase in the Section dues to $30.00 beginning with the 2004-2005 fiscal year, and the Board of Commissioners has approved the dues increase. The State Bar of Michigan Finance Department has been notified and will reflect the increase on next year's dues invoice.
4. Listserv
   The State Bar of Michigan has notified the Sections that the costs for the maintenance and usage fees for the Section Listserv will no longer be borne by the State Bar of Michigan. This will result in an expense starting in the next fiscal year. (See Technology Committee report for further discussion.) Attachment A 2003-2004 Budget
   Attachment B 2003-2004 Committee and Director Budgets/Expenses

March 2004

I. 2003-2004 Fiscal Condition

The Section has a surplus level of $168,200.35 as of January 31, 2004 and is projected to finish the year with a surplus of approximately $45,000.

II. 2003-2004 Committee Budgets

The current budget assumes a deficit of $60,700 for the fiscal year, which would bring our fund balance to an unacceptably low level. As a result, revenue and expense categories need to be examined.

The second budget schedule is the requested budgets for committees. I will track and allocate the expenses within the various committee budgets during the year.

III. Actions Required

At the December Council meeting, we had the opportunity to review the annual budget and gave preliminary approval to a budget, subject to a further review of some items. Given that some amounts may need to be examined further, follow up approval may also be necessary.

IV. Section Dues

The current Section dues are $20. The Council has authorized the Section to increase our annual dues to $25 per year.
Attachment A—2003-2004 Budget
Attachment B—2003-2004 Committee & Director Budgets/Expenses

December 2003

1. 2002-2003 Fiscal Year Results After several years of efforts to spend down the surplus for the benefit of the Section members, the Section achieved its goal in 2003. The Section now has an acceptable surplus level, finishing the year with a surplus of $107,453. As is reflected in the budget summary for the fiscal year that follows, the Section had a revenue deficit of $65,307. Some of that amount is attributable to expenses from the prior fiscal year that were paid in 2002-2003. Also attached is a three year budget summary, showing the results of the prior three years. Please note that committee expenses have not been separately allocated, but are lumped into other categories of expenses.
2. 2003-2004 Section and Committee Budgets
   The third budget schedule is a draft budget for 2003-2004 based on historical expenses and income, along with expenses posted through October 31, 2003. The budget assumes a deficit of $60,700 for the fiscal year, which would bring our fund balance to an unacceptably low level. As a result, revenue and expense categories need to be examined. The fourth budget schedule is the requested budgets for committees. The fifth is the year to date budget schedule. I have also arranged for the State Bar to create a separate account for committee expenses so that these can be separately tracked. I will track and allocate the expenses within the various committee budgets.
3. Actions Required The December Council meeting is our opportunity to review the annual budget and to give preliminary approval to a budget. Given that some amounts may need to be examined further, follow up approval may also be necessary.
4. Section Dues

The current Section dues are $20. The State Bar has authorized the Section to increase our annual dues, up to $40 per year, and we should probably address that issue soon.

By: Michael S. Khoury

September 2003

1. The financial position of the Business Law Section remains sound. As of July 31, 2003, the date of the last financial statements received from the State Bar of Michigan, the Section had a surplus of $122,772.90. For the ten months ending July 31, 2003, actual expenses paid during such period were approximately $6,000 less than the budgeted expenses for the twelve months ending September, 2003. Although as stated the current financial status of the Business Law Section remains sound, in light of anticipated income and expenses going forward, a slight increase to Section dues should be considered either at the September or December Council meetings.
2. At the December, 2003 Council Meeting, the Business Law Section Budget for October 2003—September 2004 fiscal year will be presented and approved. Questions concerning next year's Budget may be addressed to the undersigned or more appropriately to the incoming Business Law Section Treasurer.

Respectfully Submitted,
Eric I. Lark

May 2003

The financial position of the Business Law Section remains sound. As of March 31, 2003, the date of the last financial statements received from the State Bar, the Section had a surplus of $178,795.90. Any questions concerning the financial status of the Section should be addressed to the undersigned.

Respectfully Submitted,
Eric I. Lark

March 2003

1. The financial position of the Business Law Section remains sound. As of January 31,
   2003, the date of the last financial statements received from the State Bar, the Section had a surplus of $191,839.99.
2. At the December 7, 2002 Council Meeting the Business Law Section Budget for October 2002—September 2003 fiscal year was approved. A copy of the approved Budget is attached to this report. Questions concerning the Budget should be addressed to the undersigned.
   Respectfully Submitted,
   Eric I. Lark

September 2001

The financial condition of the Business Law Section continues to be sound. As of July 31, 2001, the Section's YTD Total Income was $75,808.00, Net Income was $201.57 and the Cash Balance aggregated was $195,003.84.

Attached to this Report is a copy of the monthly financial statements for May and July, 2001. Respectfully submitted,

G. Ann Baker
Treasurer

May 2001

The financial condition of the Business Law Section continues to be sound. As of April 30, 2001, the Section's YTD Total Income was $75,717.00, net income was $45.924.77 and the cash balance aggregated was $240,727.04.

Attached to this Report is a copy of the monthly financial statements for February, March and April, 2001. To obtain reimbursement for expenses, receipts and a completed SBM Expense Voucher should be submitted to the Treasurer for approval and transmittal to the State Bar of Michigan. Although the Section Council has adopted committee budgets, the State Bar of Michigan financial statements use different categories and have no categories for committee budgets. For example, there are separate items for meetings, seminars, and annual meetings. We have no method for keeping track of how the amounts allocated to committees are spent. For example, for a recent program we do not know the total income and expenses. In addition, some expenses are directly billed to the Section and some are expenses are paid and reimbursement requested. Recommendation: The Council consider providing committees with additional direction regarding expenditures, such as, preparation of an income and expense report for a seminar and consider whether some expenses should routinely be billed directly to the section, such as meeting room rental.Respectfully submitted,

G. Ann Baker
Treasurer

March 2001

The financial condition of the Business Law Section continues to be sound. As of December 31, 2000, the Section's YTD Total Income was $70,899.00, net income was $62,629.41 and the cash balances aggregated $257,431.68.

The State Bar of Michigan has experienced problems with the software program used to produce financial statements and was unable to print statements. The problem was recently corrected. Attached to this Report is a copy of the monthly financial statements for October, November, and December 2000 and the final statement for fiscal year October 1, 1999-September 20, 2000.The officers discussed and recommend the Council adopt a resolution to allocate $2,500 for this fiscal year to purchase recognitions for individuals providing service to the Sections, such as committee Chairs.The officers recommend the Council adopt a resolution authorizing Council members to be reimbursed for mileage to attend Council meetings. The State Bar policy is to reimburse at the standard IRS rate. The IRS changed the standard business mileage rate to 34½ cents per mile effective January 1, 2001.

Respectfully submitted,
G. Ann Baker

December 2000

The financial condition of the Business Law Section continues to be sound. As of September 31, 2000, the Section's YTD Total Income was $74,264.00, net income was 16,255.71, and cash balances aggregated $201,457.79. Attached to this Report is a copy of the interim September 30, 2000 financials.

G. Ann Baker

September 2000

The financial condition of the Business Law Section continues to be sound. As of August 31, 2000, the Section's YTD Total Income (11 months) was $71,244, net income was $25,385.04, and cash balances aggregated $210,587.12. Attached to this Report is a copy of the interim July 31, 2000 and August 31, 2000 financials.
Timothy R. Damschroder
Bodman, Longley & Dahling LLP

May 2000

The financial condition of the Business Law Section continues to be sound. As of March 31, 2000, the Section's YTD Total Income (6 months) was $70,955, net income was $59,147.67, and cash balances aggregated $244,349.75. Attached to this Report is a copy of the interim March 31, 2000 financials.

Timothy R. Damschroder Bodman, Longley & Dahling LLP

December 1999

The financial condition of the Business Law Section continues to be sound. As of October 31, 1999, the Section's YTD Total Income (1 month) was $50,119.00, net income was $50,052.34, and cash balances aggregated $236,132.95. Attached to this Report is a copy of the interim October 31, 1999 financials.

Timothy R. Damschroder Bodman, Longley & Dahling LLP