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Related Topics Organizing for CompliancePerformance TrackingYear 15
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Asset Management Report
Good Asset Management practice includes regular reporting on property financial performance to the Board of Directors responsible for the organization's overall portfolio. Decisions must be made regarding: 1) What to report; 2) How often to report, and 3) Whether to report to a committee of the board or the whole board. Answers to these questions will vary depending on the nature of the organization and the board. The Asset Management Report tool available for downloading here is used by one large Bay Area nonprofit, and is sent out to all board members quarterly, with most of the discussion taking place at the Property Management Committee meeting prior to the meeting of the entire board.
This tool was designed to be updated each quarter with a minimum of effort on the part of asset management staff. Data is entered on a separate Excel spreadsheet from the quarterly Balance Sheet and Statement of Revenue and Expenses by the accounting department, and reviewed by the Property Accounting Manager for reasonableness in conjunction with the Variance Analysis prepared by the Property Supervisors. The report itself is updated by the Asset Manager in time for the senior management group to discuss in a Portfolio Review Meeting a week before the Property Management Committee meeting. Comments are then added to address issues of insufficient cash, negative cash flow, not meeting budget targets, inadequate reserves, and so on, with information for the board on what action the staff is taking to deal with the issues.
The key performance variable tracked is cash flow after debt service and reserves. This organization reports on vacancy and delinquency weekly and revenue and expense monthly to Property Management and Senior Staff, but does not routinely report to the board at this level of detail except when there is a problem. For the tax credit properties the projected cash flow from the closing pro-forma is included as "Plan" in the cash flow tracking to keep the board apprised of progress toward meeting the "back-end" numbers expected by the investors.
The Word document has dynamic links to the Excel spreadsheet columns B through F for Cash Balance, Budget YTD, Cash Flow, Plan Cash Flow YTD, and Reserves. After downloading the Word file can be renamed, but the Excel file must be named EXACTLY 'AMR-Property Financial Data 3-02.xls' or the links will not work. The Word and Excel files must be in the same folder. The charts in the Word Document are also linked to the Excel spreadsheet, Sheet 2. Before moving things around on the spreadsheet be sure to make a back-up so that if the links or formulas get wiped out you have something to go back to without losing your data. The Word document is downloaded by clicking on Asset Management Board Report and the Excel spreadsheet by clicking on "Board AM Report Spreadsheet". Any questions can be sent to Phil Ritter, CPA at philr@sonic.net or 707-887-1496.
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