Accounting
PEAK Real Estate Management Group subscribes to and acknowledges Generally Accepted Accounting Principles. The definition of Generally Accepted Accounting Principles is a widely accepted set of rules, conventions, standards, and procedures for reporting financial information, as established by the Financial Accounting Standards Board. If for any reason an associate of PEAK Real Estate Management Group is ever confronted with a situation in which they feel as though it is a violation of these principles, it is required that they bring it to the attention of the leadership of the organization.
Timely and accurate reporting by the properties is essential to ensure senior management is making solid business decisions regarding the operations of the properties. Normally, we try to cut checks twice each month with exceptions being made for emergencies or special situations. Within the Company, various regions or owners may have different reporting requirements. It is the responsibility of the Community Manager to be knowledgeable of and comply with the reporting requirements specific to his/her property and region.
Monthly Reporting Package
The following is a list of the minimum financial reporting requirements which are to be submitted to Owner on or before the 15th day of each and every month for the previous calendar month and current as of the last day of that month.
1. Community Narrative: A brief description of events for the report month including
occupancy (physical and economic), move-ins, move-outs and related gain or loss,
market trends, and resident retention
2. Leasing Report: A detailed report that accounts for total units and segregates
them into categories with all leasing activity for the month
3. Lease Expirations: A report that lists upcoming expirations, by month, and
reflects any notices to vacate
4. Income Statement: A comparative statement for both the report month and year-to-date
comparing actual to budget. It should reflect total dollars, per unit dollars,
and the income or expense as a percent of total income
5. Variance Report: A short narrative to address all variances which are the
lesser of 10% of budget item or $1,000 must be included
6. Balance Sheet: A financial statement that indicates the equity position of
the asset at a given moment in time
7. Cash Receipts Journal: A list of all cash received during the month including
payee/resident names
8. Cash Disbursements Journal: A list of all cash expenditures made during the
report month
9. Property Management Fee Reconciliation: A reconciling summary of the management
fee reported for the report month
10. Payments to Non- Vendors: A listing of all amounts paid to the Agent, its
affiliates, and other non-vendors for expenses other than the property management
fee and ongoing operating expenses. Include copies of invoices and all supporting
documentation
11. Community Tax Bills and Paid Receipts: All community tax assessments should
be submitted directly to Owner for review prior to payment. As taxes are paid;
paid receipts must be requested of the respective taxing authorities to be sent
directly to Owner
12. Capital Improvements Summary: A brief summary listing the total amount of
improvements contracted to date, the amount paid to date, the balance remaining
and the projected completion date. Also include copies of all invoices paid
with the necessary lien waivers attached
13. Aged Accounts Receivable: A listing of all resident receivables by resident
and any other amounts due to the Community
14. Bank Statement(s): A copy of all bank statements
15. Cash Account Reconciliation(s): A copy of the bank account reconciliation
corresponding to each bank statement
16. Current Rent Roll: A rent roll listing the current residents, unit numbers,
unit types, lease start and end dates and monthly rent per unit including information
on any concession given and terms of the concession