Dashboard and Quarterly Reporting (Partner Preparation, Army Validation, and Submission)

Transcription

1 Dashboard and Quarterly Reporting (Partner Preparation, Army Validation, and Submission) P. Baker / T. Mathis / B. Market (BBC) / JC Calder (Corvias) 29 August 2017 Installation Management Command integrates and delivers base support to enable readiness for a globally-responsive Army We are the Army s Home Serving the Rugged Professional 1 of 49

2 Agenda Purpose of Dashboard and Quarterly Reports Stakeholders Roles and Responsibilities Dashboard Report Partner Reporting 101 IMCOM Review and Validation FY18 Hub and Spoke Quarterly Report Partner Preparation IMCOM Review and Validation ACSIM Consolidation and Submission 2 of 49

3 Purpose of Dashboard and Quarterly Reports Monitor and analyze performance to evaluate financial health of projects and the portfolio as a whole Provide analysis of each project to identify trends and corrective actions to mitigate negative performance Meet legislative requirements Detect, research, and implement project enhancements Develop benchmarks to evaluate ongoing operations and proposed future actions, such as annual budgets, Modified Scope Plans, and Out-year Development Plans Enables all stakeholders interests to remain aligned 3 of 49

4 Partners Stakeholders Roles and Responsibilities Prepare the monthly Dashboard and Quarterly Reports to be reviewed by the Housing Manager Consult with Housing Manager on any reporting errors/concerns Submit reports to the Housing Manager based on the required timeline Installations Obtain supporting reporting documents Review and validate Dashboard and Quarterly Reports Consult with IMCOM and Partner on any reporting errors Submit reports to ACSIM based on required timeline 4 of 49

5 Stakeholders Roles and Responsibilities HQ IMCOM / HUB Conduct 2 nd level review and validation of dashboard and quarterly reports Consult with Housing Managers to correct any errors Submit validated reports to Housing Manager based on required timeline for submission ACSIM Provide roll-up of project performance data Review quarterly reports regarding project-level financial and operational data Monitor dashboard reports for trends Use reports to assess the health of the project and the portfolio, address issues, and improve on future performance 5 of 49

6 Monthly Dashboard Report Bryan Market (BBC) / JC Calder (Corvias) Dashboard Preparation, Review, Validation, and Submission Process 6 of 49

7 Partner Dashboard Reporting 101 Partners will have different approaches to report preparation Project legal documents will dictate some calculation requirements, such as the Debt Coverage Ratio Multiple resources are used and may vary between the partners, i.e. Yardi vs Real Page The Dashboard and Quarterly reports are not necessarily compatible 7 of 49

8 Partner Dashboard - Finance Sections Monthly Dashboard source information by section Section beginning Row 2 - Finance Populated from the activity referenced in the Monthly Operating Statements prepared by the Partner Accrual based Actual vs Budget activity is reported here i.e., Income Statement 8 of 49

9 Partner Dashboard - Finance Sections Monthly Dashboard source information by section Section beginning Row 11 - Finance Populated from the activity referenced in the Monthly Servicer/Lockbox Agent/Trustee Reports. (Debt Service Coverage Ratio Report and Equity Holder Account Statements) Requires reports from the Servicer prior to submission. Cash based actual funding activity thru the Escrow accounts Cannot validate this data from the data reported in the operating statement section DCR or Debt Coverage Ratio Calculation NOI and DCR calculations are defined in legal documents Noteworthy: Some installations calculate Funding NOI differently (with/without CR&R escrow funding, Tax & Insurance escrow funding and/or Trustee Fees) The DCR is based on actual Rental Income (rental receipts) from the prior month and Operating Expenses of the current month 9 of 49

10 Partner Dashboard Development/Construction IDP Monthly Dashboard source information by section Section beginning Row 16 Development/Construction-IDP only Certificate of Occupancy count for the month for each type of work Yellow Rows contain current month activity Actual vs Pro Forma Orange rows contain cumulative project activity thru the current month (prior month orange row total plus current month yellow row total) Pro forma column info comes from most recent Approved MSP Pro forma. Variances should not exist once project completes IDP 10 of 49

11 Partner Dashboard Development/Construction ODP Monthly Dashboard source information by section Section beginning Row 25 Development/Construction-ODP only Certificate of Occupancy count for the month for each type of work Yellow Rows contain current month activity Actual vs Pro Forma Orange rows contain cumulative activity thru the current month (prior month orange row total plus current month yellow row total) Pro forma column info comes from most recent Approved ODP Pro forma. Variances should not exist once project completes ODP 11 of 49

12 Partner Dashboard Operation/Maintenance Monthly Dashboard source information by section Section beginning Row 36 Operation / Maintenance Occupancy numbers provided on the Dashboard are, as per instructions, the monthly average calculation. Monthly average is calculated as the average of the end-of-week unit counts. A weekly average calculation will differ from a end-of-month calculation (which is called for in the Glossary of the Quarterly PAM Report) When following the instructions for each report, it is not possible to validate the Quarterly PAM numbers using the Dashboards for the same reporting period Actual Occupancy numbers provided on the Dashboard are, as per instructions, the monthly average calculation. Monthly average is calculated as the average of the end-of-week unit counts. The correct calculation of Occupancy is critical to proper financial analysis and even meeting certain performance metrics. Is something missing? 12 of 49

13 Partner Dashboard Operation/Maintenance Monthly Dashboard source information by section Section beginning Row 36 Operation / Maintenance Considerations when comparing Dashboard Occupancy numbers to PAM Occupancy numbers. A monthly average calculation is requested according to the Dashboard glossary. A monthly average calculation will differ from a end-of-month calculation (which is called for in the Glossary of the Quarterly PAM Report) When following the instructions for each report, it is not possible to validate the Quarterly PAM numbers using the Dashboards for the same reporting period (Occupancy as of 3/2) 1396 (Occupancy as of 3/9) 1386 (Occupancy as of 3/16) 1375 (Occupancy as of 3/23) 1380 (Occupancy as of 3/30) 1388 Average Occupancy for March 13 of 49

14 Partner Dashboard Waterfall Tenants Monthly Dashboard source information by section Section beginning Row 56 Waterfall Tenants This section requires Yes or No responses to the opening of the Tenant Waterfall to OET s. Row 57 identifies how far down the Tenant Waterfall Occupancy has been opened for eligibility, as of the end of the reporting period. Row 58 identifies how many actual occupant types there are in Residence, as of the end of the month, that are identified in section 57. It is possible for there to be OET tenants during the month, that would be included in a weekly average occupancy count, which would not be reflected in the end of the month activity response, based on move out activity. 14 of 49

15 Partner General Review Guidance Are the correct benchmark values from either the annual budget or pro forma, as required, being reported? Are values being reported as detailed in the instructions or glossary for a specific report? Are the actual values reported inline with the on-the-ground understanding of operating dynamics? Are variances to the directed benchmark values sufficiently explained? What is the overall performance story outlined in a report that would be conveyed to leadership? 15 of 49

16 Partner General Review Guidance (Continued) Where are things going well and why? Where are things not going well and why? Are there any trends emerging or continuing? If continued negative performance is occurring, what is being done about it? Are new initiatives or corrective actions being effective? Are there changes in the installation(s) s operating dynamics that are being reflected in reported performance or will impact performance in the future? 16 of 49

17 HQ IMCOM Tammy Mathis - HUB Dashboard Review, Validation, and Reporting Process 17 of 49

18 HQ IMCOM / HUB Current Dashboard Review Process 18 of 49 Pre-Decisional /Instructor Use Only

19 HQ IMCOM / HUB Dashboard - Source Documents and Validation Partners Supporting Reports Validates Dashboard Line Current FY Approved Budget 3-9, 15 & Current Approved Pro Forma & Monthly Operating Statement 3-10 Monthly Servicer/Lockbox Agent Reports (Debt Service Coverage Ratio Report-DCR) Equity Holder Account Statement (Reinvestment Account) Construction Schedule/Unit Acceptance Report & Box Score Summary Report & Work Order Summary Report Make Ready Report 54 Waitlist Report 55 Most Recent PAM of 49 Pre-Decisional /Instructor Use Only

20 HQ IMCOM / HUB Dashboard - Finance Sections Total income does not include cleaning and damages Reporting Errors / Validation Utilities include Garbage and Cable Operating Expenses do not include Garbage and Cable In accordance with the Dashboard Glossary Total Income should include cleaning and damages chargeback income. Utilities should not include garbage and cable costs these costs should be reflected in Operating Expenses. 20 of 49 Pre-Decisional /Instructor Use Only

21 HQ IMCOM / HUB Dashboard Finance Sections Reporting Errors / Validation Not Matching Approved Pro Forma 21 of 49 Pre-Decisional /Instructor Use Only

22 HQ IMCOM / HUB Dashboard Development/Construction ODP Reporting Errors / Validation 22 of 49 Pre-Decisional /Instructor Use Only

23 HQ IMCOM / HUB Dashboard Development/Construction ODP Reporting Errors / Validation 23 of 49 Pre-Decisional /Instructor Use Only

24 HQ IMCOM / HUB Dashboard Development/Construction - ODP Reporting Errors / Validation 24 of 49 Pre-Decisional /Instructor Use Only

25 HQ IMCOM / HUB Dashboard Common Errors Using a non-approved Pro Forma/Budget version to validate Including interest income on reserve accounts in Total Income Including Garbage and Cable expenses in total Utility costs Incorrect IDP/ODP Development and Construction information Calculating Homes Occupied not using a weekly average Grouped projects information not adding up correctly on consolidated dashboards 25 of 49

26 HQ IMCOM / HUB New Dashboard Review Process 26 of 49 Pre-Decisional /Instructor Use Only

27 Quarterly Report Patricia Baker - ACSIM Quarterly Report Preparation, Review, Validation, Submission, and Process 27 of 49

28 Difference between Monthly and Quarterly Reports Quarterly Report provides the means to oversee project performance more frequently than the project plan/budget Encourages dialogue between the Partner, Housing Manager, IMCOM, and ACSIM Program Manager Compares performance to specific benchmarks Budget and Pro forma variances Trends between reporting periods to mitigate issues that may impact the project Portfolio and industry standards Details challenges and solutions to the challenges Focuses on both financial and non-financial performances of the project (new construction, renovation, debt load, equity commitment of Partner, small business) 28 of 49

29 Consists of: Project Information Project overview Occupancy & Waterfall Statement of operations Construction and renovation Development and soft costs Lockbox Equity and cash flow Small and local business Sources and uses GFOQ reporting Congressional reporting Quarterly Report 29 of 49

30 Quarterly Report Bryan Market (BBC) / JC Calder (Corvias) Partner Quarterly Report Compilation Process 30 of 49

31 Partner Preparation Considerations Quarterly reporting begins after completion of the monthly Dashboard for the month just ended. Quarterly incorporates information that must be finalized in the Dashboard prior to beginning updates to the Quarterly, which compresses time for completion Due to the comprehensive nature of the Quarterly report, the resource requirement for preparation is quite high Input required for various Partner departments Accounting Construction Finance Operations Small Business Tracking 31 of 49

32 Partner Preparation Sources The information presented in the Quarterly Report is a compilation of data from a multitude of different sources which requires coordination to prepare A few examples of the Sources Project Occupancy Partner Operations Software Construction & Reno Cost Summary IDP/ODP Partner Construction Draw activity to Lender Dev & Soft Cost Summary IDP/ODP Partner Construction Draw activity to Lender Lockbox Waterfall Monthly Servicer Reports Lockbox Balances Monthly Escrow Statements Small and Local Business Partner departmental tracking Sources and Uses Partner departmental tracking Congressional Reporting Shared reporting with RCI Partner 32 of 49

33 Partner Quarterly Reporting This section should communicate overall project highlights This section should discuss project financial position as reported on the Primary Statement of Operations This section should discuss key operational situations affecting occupancy and budget. This section should discuss key Development and Construction issues affecting deliverables 33 of 49

34 Partner Quarterly Reporting The Small Business Section reports activity broken down by Large Business and Small Business classifications according to the SBA. Row 7 plus Row 8 equals Row 6 amount. Rows 9 thru 13 are considered small business concerns and the amounts are included in the total of Row 8. The Local Business Section provides a different breakdown of amounts reported in the Small Business Section and identifies Businesses as either Local or Non-Local. Row 15 should equal Row 6 totals Current Quarter totals are to represent amounts awarded during the quarter being reported. To Date totals are to represent amounts awarded since the closing of the project. Amounts should equal Prior Quarter To Date amounts plus Current Quarter Amounts. 34 of 49

35 Partner Timeline Example Tab of Quarterly Preparer* Date prepared Project Information Department to Up-date Date Project Overview Executive Overview Business Director (BD) 28 th Finance/Budget Accounting Manager & BD 25 th Property Management/Operations BD 28 th Development/Construction Construction 20 th Project Occupancy Property Management 18 th Primary Statement of Operations Accounting 17 th Cons & Reno Cost Summary-IDP Accounting 19 th Dev. & Soft Cost Summary IDP Accounting 19 th Lockbox Waterfall Accounting 21 st Lockbox Balance Accounting 21 st Equity Returns Finance 24 th Small & Local Business Small Business 25 th Other Project Information Accounts Receivable Tenant Accounting Manager 26 th Incentive & Other Fees Accounting 21 st Project Staffing Human Resource/Sr. Accounting Manager 25 th Army Staffing Army Partner Sources and Uses Finance 26th January/July CFOQ Reporting Accounting Manager 20 th Congressional Reporting Accounting Manager 20 th Cumulative CO Log - IDP Construction 19 th Coordinator/Reviewers: Coordinator Accounting Manager 17th to 30 th Final Reviewer Senior Manager 25th - 30 th Submit to Army Partner Accounting Manager 31 st 35 of 49

36 HQ IMCOM / HUB Tammy Mathis - HUB Quarterly Report Review and Reporting Process 36 of 49

37 HQ IMCOM / HUB Quarterly Reporting PAM Project Occupancy Verification The total number of Homes Occupied for the Project (#17) must equal the sum of the respective subtotals 37 of 49 Pre-Decisional /Instructor Use Only

38 HQ IMCOM / HUB Quarterly Reporting PAM/Dashboard Verification challenges Project Occupancy PAM instructs occupancy information to be calculated by taking an average of the end-of-month homes for each month in the quarter. Dashboard instructs occupancy information to be calculated by taking the average of the weekly homes for a monthly average occupancy. The average of the Dashboard reported occupancy for three months will not equal the PAM occupancy methodology (Occupancy as of 3/2) 1396 (Occupancy as of 3/9) 1386 (Occupancy as of 3/16) 1375 (Occupancy as of 3/23) 1380 (Occupancy as of 3/30) 1388 Average Occupancy for March End of Month Occupancy 1376 (Occupancy as of 1/31) 1401 (Occupancy as of 2/28) 1379 (Occupancy as of 3/31) 1385 Average Occupancy for Q1 38 of 49 Pre-Decisional /Instructor Use Only

39 HQ IMCOM / HUB Quarterly Reporting PAM Project Occupancy Verification The total number of waterfall tenants must equal the number of Other* homes occupied (#16) 39 of 49 Pre-Decisional /Instructor Use Only

40 HQ IMCOM / HUB Quarterly Reporting PAM Lockbox Waterfall Verification This worksheet outlines the monthly flow of Project Funds through the holistic waterfall that is governed by the Servicing and Lockbox Agreement/Trustee Indenture and Operating/Partnership Agreement. Verification of amounts reported is by reference to monthly Servicer Waterfall Report. 40 of 49 Pre-Decisional /Instructor Use Only

41 Common Errors Project Overview Quantitative information on the operating performance and achieving project goals Highlight key accomplishments Explain challenges, budget variances, development/construction schedule or challenges Project Occupancy Verify numbers Small and Local Business Army focuses on small and local businesses Congressional Reporting Partner and Housing Manager portion Verify rates and provide details on rates 41 of 49

42 HQ IMCOM / HUB Quarterly Reporting IMCOM reviews the report for accuracy and completeness IMCOM ensures the Housing Manager submits the report on time 42 of 49 Pre-Decisional /Instructor Use Only

43 HQ IMCOM / HUB Quarterly Report Review Process 43 of 49 Pre-Decisional /Instructor Use Only

44 HQ IMCOM / HUB FY 18 Hub and Spoke HQ IMCOM RCI HUB & SPOKE RCI PROGRAM / FY18 GROUP 1 LOCATION STATE ROLE COMPANY Hub Fort Bliss TX Hub BBC WSMR TX Spoke BBC Fort Carson CO Spoke BBC Carlisle/Picatinny PA Spoke BBC Fort Jackson SC Spoke BBC GROUP 2 LOCATION STATE ROLE COMPANY Hub HQ IMCOM TX Hub Schofield Barracks HI Spoke Lendlease POM CA Spoke Clark IMCOM Fort Gordon GA Spoke BBC GROUP 3 LOCATION STATE ROLE COMPANY Hub Fort Leavenworth KS Hub Michaels Fort Huachuca AZ Spoke Michaels Tammy James Yuma Proving Ground AZ Spoke Michaels Fort Belvoir MA Spoke Clark Fort Irwin/Moffett/Parks RFTA CA Spoke Clark GROUP 4 LOCATION STATE ROLE COMPANY Hub Fort Riley KS Hub Corvias Fort Wainwright/Greely AK Spoke Lendlease Fort Rucker AL Spoke Corvias Beth Fort Sill OK Spoke Corvias Fort Stewart/HAAF GA Spoke BBC GROUP 5 LOCATION STATE ROLE COMPANY Hub HQ IMCOM TX Hub Fort Hood TX Spoke Lendlease Redstone Arsenal AL Spoke Hunt IMCOM Fort Hamilton NY Spoke BBC GROUP 6 LOCATION STATE ROLE COMPANY Hub HQ IMCOM TX Hub Fort Bragg NC Spoke Corvias Fort Lee VA Spoke Hunt JBLM WA Spoke Lincoln GROUP 7 LOCATION STATE ROLE COMPANY Hub HQ IMCOM TX Hub JBSA TX Spoke Lincoln Aberdeen PG MA Spoke Corvias West Point NY Spoke BBC Fort Meade MA Spoke Corvias Fort Detrick/Glenn Haven MA Spoke BBC Fort Eustis/Fort Story VA Spoke BBC GROUP 8 LOCATION STATE ROLE COMPANY Hub HQ IMCOM TX Hub Fort Leonard Wood MO Spoke BBC Fort Campbell KY Spoke Lendlease Fort Polk LA Spoke Corvias Fort Knox KY Spoke Lendlease Fort Benning GA Spoke Clark GROUP 9 LOCATION STATE ROLE COMPANY Hub HQ IMCOM TX Hub Fort Drum NY Spoke Lendlease IMCOM IMCOM IMCOM IMCOM 44 of 49 Pre-Decisional /Instructor Use Only

45 Quarterly Report Patricia Baker - ACSIM ACSIM Quarterly Report Consolidation and Submission 45 of 49

46 How Quarterly Reports Are Used Used to monitor portfolio-level performance Develop and monitor program / portfolio-level performance metrics Provide periodic briefings and reports on portfolio performance to Army, OSD, OMB, and Congressional leadership Provide portfolio status updates for all initiatives and respond to external inquiries involving programmatic performance issues Identify and develop solutions to project challenges with enterprise-wide impacts such as sustainability or financial structure options 46 of 49

47 Wrap Up Questions? 47 of 49

48 Wrap Up Reviewed the Purpose of Dashboard and Quarterly Reports Stakeholders Roles and Responsibilities Dashboard Report preparation, review, validation, and submission Quarterly Report preparation, review, validation, and submission 48 of 49

49 End of Brief 49 of 49