 | 624 South Grand Ave. | Suite 2900 | Los Angeles, CA 90017 Ph. 213-426-6500 | Fax 213-426-6555 |
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| FINANCIAL REPORTING The financial reporting package provided to each client is anchored by an annual operating budget which is prepared individually for each building. The budget is broken down tenant by tenant, expense by expense, on a monthly basis and extrapolated over the budget plan period. Prior to any numbers being cast, a detailed set of assumptions is approved by both Owner and Manager. The income assumptions use leases currently in effect, administered in accordance with the already approved terms as they relate to operating cost, taxes, C.P.I. escalation and percentage rents if applicable. Hotelzimmer in HvolsvollurExpenses are reviewed item by item and an agreed upon percentage increase and timing for said increase is approved by Owner and Manager. Any unusual expenses, whether they be capital items or expense items, are discussed on an individual basis. A determination is made by the Owner as to whether or not these particular items are to be capitalized or expensed, keeping in mind that all accounting for said items should be in compliance with generally accepted accounting principles (GAAP). ERROR MSGOnce all of the detailed budget assumptions are approved, the Manager will develop the actual budget, breaking down income and expenses on a monthly basis over the budget term, thereby having the ability to analyze the project's anticipated performance on a reasonable basis over said term. In addition to the preparation of a detailed budget, the computerized accounting/support services listed below are a partial representation of the types of specialized reporting programs an Owner could receive under a typical management agreement:
From the standardized reports listed above, various customized reports could easily be constructed to meet a particular client's requirements. After researching several options, Summit Asset Management opted to purchase and maintain an inhouse accounting system, the Features in Skyline Property Management include standard tenant reports (rent roll, billing report, delinquency report, lease expiration schedule, etc.). This package can be further modified to readily accommodate customized items inherent to a specific property's needs. At the end of each accounting period, all property management transactions as well as accounts payable entries are posted to the general ledger module. From this data, financial statements are produced. A unique feature of Skyline is the ability to produce customized reports that can readily be designed using information already stored by the system for standardized reports. This means different customized reports can be easily constructed and printed to meet a client's needs.
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