A global investment fund, with a portfolio of more than $20 billion in real estate investments, used more than 40 third-party fee managers. A mix of national, regional, and local providers supported property management and accounting functions for the portfolio. Because each fee manager employed its own accounting procedures, property financials lacked consistency, particularly in the areas of capitalization, job cost accounting, and expense accruals. The timing of the fee managers’ monthly close and reporting processes delayed the fund’s financial reporting.
Initial Technical Environment
Third-party managers used the client’s property management system to perform accounting functions. Property-level data was subsequently transferred to a separate application for consolidation and fund accounting. The organization anticipated a near-term migration to an alternative system that would accommodate both property and fund accounting.
NOI Strategies Solution
The client engaged NOI Strategies to conduct a comprehensive review of property accounting policies and procedures and to develop a standardized approach. The NOI team:
- Conducted detailed discovery workshops with the client and third-party fee managers to understand current processes.
- Held visioning sessions with the client to document information needs and determine required transaction standards.
- Developed a detailed set of policies and procedures to guide fee manager accounting activities.
- Created a standard monthly reporting package to be provided to the client by third-party managers.
- Conducted hands-on training with fee managers to ensure full adoption and reporting consistency.
Developed business requirements, application and report data mapping, as well as detailed integration documentation for vendors across multiple different systems to successfully integrate with the client accounting system. NOI Strategies worked with over a dozen vendors and their software representatives to design technical solutions that would meet the business requirements providing availability, reliability, stability, manageability, scalability and security of integrations.