Property Reporting & Compliance
Information necessary for compliance with the reporting requirements of our operating partnerships is outlined below, as well as helpful information regarding the latest reporting, accounting, tax and compliance guidance for operating partnerships, required financial statement content and annual capital confirmations, as well as a listing of the operating partnerships where the requirement to review the draft audit and tax return is required.
The general partner is responsible for ensuring that an annual audit is prepared and that tax returns are filed timely. Enterprise Community Asset Management reviews these documents, generally in draft form, to ensure that the reports meet the requirements of the partnership agreements, and that benefits delivered and activity are expected.
Enterprise provides a secure portal for the collection of year-end financial information, including:
- Tax Returns
- Engagement Letters
- Component Auditor Letters
- Work papers, where required
All audits and tax returns are required to be submitted through a secure portal secure portal that requires a “key." This key allows our partners and their certified public accountant (CPA) firms to establish a unique user ID and password. All CPA firms and sponsors should have this key. For questions or assistance, please contact us or download the Quick Reference Card.
Other helpful tools and information:
- Financial Statement Preparation Guide
- Tax Return Preparation Guide
- 2013 Audit and Tax Return Draft Required List
- Frequently Asked Questions
- First Quarter: due April 15
- Second Quarter: due July 15
- Third Quarter: due October 15
Enterprise reviews this information to understand and monitor property operations and to report activity to investors. Contact us if you have any questions or comments.
- Maintaining current documentation for insurance after a project closes
- Monitoring critical renewal information through monthly exception reports
- Reviewing source documentation for compliance with the operating partnership agreement and fund documents
- Refinancing and/or placement of subordinate debt (must pay or soft)
- Any change in loan terms or sources, including early pay-off
- Any new sources of funds (grants, subsidies, equity, etc.)
- Improvements not contemplated in original underwriting, including green improvements such as solar panels or power purchase agreements
- Improvements contemplated in original underwriting but without definitive funding source(s) that are not included in the cost cert, or contemplated improvements are being removed from the scope
- Any changes to common area space and/or units
- Property management firm changes or fee changes
- Changes in CPA firms
- Transfer/assumptions of a GP interest and/or changes related to guarantors
- Changes to reserve requirements and/or intended use of reserves
- Changes to set asides in any regulatory agreement
- Entering into any lease or use agreement (e.g., rooftop leases or any other commercial lease(s))
- Changes to insurance coverage, carriers or limits that deviate from investor requirements
- Changes to bank accounts in which Enterprise is co-signatory
- Easements, right of way, right of use or partial land sale
- Changes to fees charged to a project that affect net operating income and cash waterfall
When the general partner requests withdrawals from either account, Enterprise will review the request submitted by the general partner, as well as appropriate supporting documentation for reasonableness. If the request relates to a withdrawal of operating reserves, Enterprise will also review the sufficiency of reserves by preparing and reviewing a projection of cash needs for the operating partnership.