Reporting Supplement - TIAA-CREF RFP Response

BISHOP’S VIEW//

MANAGEMENT SERVICES PRESENTATION

LOSS PREVENTION INSPECTION CHECKLIST

By ______________________________Property Name: LPS:

Regional

Manager:

Email:

Comm. Manager:

Date of Inspection:

Check One - Non-Receivership Property: [ ] Receivership Property: [ ] Additional

Comments:

Section 1. Reports / LogsYes,No,N/A

Measurement Responsible Person CommentsYes,No,N

/A

Yes,No,N

/A

1Review Aged Delinquency Balances and Credits. (Yardi- receivable detail by charge code

MRI- Aged Receivable-detail)

Ensure appropriate action is being taken on delinquent accounts and prepays are

appropriately offsetting delinquencies.Operations Team

2 Review Concession Matrix (Yardi, MRI) Future concessions are properly documented and match Yardi or MRI Operations Team

3Review Charges and Credits on all accounts-check for corresponding credit memos (Yardi,

MRI)

Ensure credit adjustments match the SODA's upon move out ensuring collections

bonus is accurately calculated and paidOperations Team

4 Review Rent Batches with money order logs: Verify Copies of MOs & entries into MRI/Yardi Operations Team

5 Review Miscellaneous Income Report and batches tied back to Bank deposits Operations Team

6 Review Rent Roll Ensure rent roll is clear of past residents, applicants and dated information Operations Team

7 Review Security Deposit ListingEnsure listing is clear of dated information and does not have any credit (negative)

balancesOperations Team

8 Review Personal Property Inventory ListingReview for accuracy ensuring the list does not contain any leased items or items no

longer in serviceOperations Team

Section 2. Property File AuditYes,No,N/A


/A

Yes,No,N

/A

1 Review all employee files, addendums and ledgers, verify 20% max. employee discounts.20% Max Employee Discount, Balances are Zero and that employee residnets are

not delinquent and paying their appropriate 1/2 month prorate at move-in.Operations Team

2 Are Cancelled / Denied Applications being handled / filed properly? Operations Team

Section 3. Property Check / OperationsYes,No,N/A


/A

Yes,No,N

/A

1 Property using a Safe on-site Operations Team

2 No past employees still with Active User KeyTrack accounts Account Audit / No Apartments numbers on Fastrack Fobs Operations Team

3 Office Alarm system active and used daily on site Operations Team

4 "No Cash Accepted" Sign posted in Leasing Area/Office Clearly Visable? Operations Team

5Walk up to 5 vacant/ down units (or all available if less than 5). Check for unauthorized

occupancy/ activity5 Vacant Unit Walks Operations Team

6 Saferent Overrides % of Overrides Operations Team

7 LRO Compliance New and Renewal Compliance % Operations Team

8 Work Orders

Do the number of hours billed correlate to the hours worked on the property?

Employees should include the Work Order number in their notes when entering

their time- if their time is not associated with a work older , clear notes should be

made as to why/what work is being billed.

Operations Team

9 Concession - Customer Service Valid support Operations Team

10 Vacant Unit WMU Operations Team

Section 4 . Resident Ledger ReviewYes,No,N/A


/A

Yes,No,N

/A

1 Are ledgers neat and accurate? Operations Team

2 Is system Monthly Posting accurate or are corrections needed? Operations Team

3 Are corrections accurately and thoroughly described? Operations Team

4 Referral Credits Valid support Operations Team

Section 5. Petty CashYes,No,N/A


/A

Yes,No,N

/A

1

Is petty cash on site locked and secure? Look on-site to determine that petty cash is physically secure. Does the lock box

have a shared key or does only one person have the key? Confirm the person who

has the key is the person who signed the Petty Cash Agreement.

Operations Team

2 Do receipts in petty cash box match cash out of box? Add up receipts in petty cash box and compare to cash out of box. Operations Team

3Is Petty Cash Agreement signed by the person who has custody of the petty cash on site? Compare name/signer of the Petty Cash Agreement to who controls the petty cash

box on site.Operations Team

4

Is petty cash being submitted in a timely manner? PC to be reimbursed once a month or when funds are at 50%. Review Vendor

Ledger for checks issued to petty cash to determine if the petty cash

reimbursement check exceed petty cash agreement amount; if so, this confirms

that petty cash was not submitted timely.

Operations Team

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2/10/2015 Page 1



Regional

Manager:

Email:

Comm. Manager:

Date of Inspection:

Section 6. Delinquency / PrepaidsYes,No,N/A


/A

Yes,No,N

/A

1 Late fees Are they on a monthly schedule Accounting

2 Late fee reversals Does valid support exist Accounting

3 Delinquent Notices Are they done monthly and on time Operations Team

4 Delinquent balance review Review status of all delinquent balances Accounting

5 Pre-Paid balance review Review status of all pre-pay balances Accounting

Section 7. Resident Payment TestsYes,No,N/A


/A

Yes,No,N

/A

1 Was the amount on the lease received from the resident and deposited at the bank? Follow entire transaction through process for accuracy Accounting

2 Look for checks not shredded on site On site person to look for checks not shredded. Accounting

3 For properties not using scanners, are check copies kept on site and locked? Confirm proper handling of check copies Accounting

Section 8. Month-end ProcessesYes,No,N/A


/A

Yes,No,N

/A

1 Is the Yardi Write-off report being used? Compare Write-Off report submitted by CM to report run by PA. Accounting

2Were write-offs sent to a Collections company? Are the terms of payment plans being

followed for residents put on payment plans?

Obtain report from collection agency and compare to write offsAccounting

3Are the dates on the month-end Property Accounting calendar being followed: Were month-

end reclasses and accruals submitted on time?

Compare date items were submitted by CM to PA to the month-end accounting

calendar. Accounting

4Are invoices being properly coded and entered in Yardi? Obtain monthly reclasses sent by CM from PA. Also, ask PA for reclasses done in

addition to monthly reclass. Accounting

5Are the dates on the month-end Property Accounting calendar being followed: Were write-

offs sent in on time?



6Are the dates on the month-end Property Accounting calendar being followed: Were

variance explanations submitted on time?



Section 9. General Accounting ProcessesYes,No,N/A


/A

Yes,No,N

/A

1 Are NSFs being entered within 24 hours of receipt? Compare time stamp of distribution vs. time entered in system Accounting

2Are CMs entering adjustments requested by the Property Accountants in Yardi in a timely

manner?

Compare time stamp of distribution vs. time entered in systemAccounting

Section 10. Real Estate / Tax codes / Business LicenseYes,No,N/A


/A

Yes,No,N

/A

1 Are Real Estate / Personal property taxes coded to correct expense account? Real Estate: 6100-0000 / Personal Property: 6105-0000 Finance

2 Are Real Estate / Personal Property Taxes entered and checks cut prior to due date? Fees and Penalities Finance

3 Are Business License entered and check cut before due date? Compliance Finance

Section 11. Accounts Payable Policies and ProceduresYes,No,N/A


/A

Yes,No,N

/A

1For properties not using Payscan (Henderson only), did the RM review and sign off on

payable batches?

AP has a new log to track RM approvals.Accounts Payable

2

For properties using Payscan, are invoices being processed and approved in a timely

manner and sent to Accounts Payable two days prior to the weekly check run?

Run the AP Expense Distribution report from Payscan to confirm that the invoice

date is not more than 8 days from the Yardi entry date. Obtain the monthly accrual

sent by the CM from the PA and verify invoices are being input prior to month end

close. At on-site visit, confirm that the property's desk space does not have unpaid

invoices.

Accounts Payable

3

For properties not using Payscan (Henderson only), are invoices being processed and

approved in a timely manner and sent to Accounts Payable two days prior to the weekly

check run?

Review AP's tracking log to determine when invoice packages arrive each week in

order to confirm batches are received on time by AP. Obtain the monthly accrual

sent by the CM from the PA and verify invoices are being input prior to month end

close. At on-site visit, confirm that the property's desk space does not have unpaid

invoices.

Accounts Payable

4

Are Security Deposit checks issued within the State guidelines and is Laramar exposed to

any penalties for not meeting the State guidelines?

Run Yardi report to find resident's move-out date, review check issued date in Yardi

and determine if resident's check was issued within state guidelines and applied

after resident moved out.

Accounts Payable

5

Was the move-out refund issued to the resident listed on the lease? Pull cleared check image from the bank to confirm the cleared check was paid to

the lessee. If the name of the check is different from the name on the lease, obtain

supporting documents that show the check needed to be issued in a different

name(s).

Accounts Payable

6

Are there utility late fees? Run late fee report from AUM or ISTA to determine if properties using AUM/ISTA

incurred late fees. If the property is not on AUM/ISTA, pull Utility Invoice to find late

fees.

Accounts Payable

7

Are vendors being paid according to the vendor terms or Laramar terms (use Laramar

terms if no vendor terms stated)?

Run Vendor Ledger report to compare invoice date to paid date based on (1)

vendor invoice payment terms stated on the vendor invoice or (2) vendor credit

application (if vendor terms are not on vendor invoice, review vendor credit

application for payment terms) or (3) Laramar term is to pay 30 days from invoice

date (if no terms from vendor).

Accounts Payable

2/10/2015 Page 2



Regional

Manager:

Email:

Comm. Manager:

Date of Inspection:

8

Are largest vendors being paid timely? For five largest vendors, call the vendor and ask for vendor's current aging.

Compare vendor aging to Laramar aging to ensure timeliness and accuracy of

processing invoices.

Accounts Payable

9

Are National vendors being paid on time? For National vendors, call the vendor and ask for vendor's current aging. Compare

vendor aging to Laramar aging to ensure timeliness and accuracy of processing

invoices.

Accounts Payable

10

Are correct vendors being paid correct amounts? A/P Audit Test - select items from the General Ledger expense accounts or capital

accounts and trace G/L entry from vendor invoice, to G/L, to check copy, to bank

statement

Accounts Payable

2/10/2015 Page 3



Regional

Manager:

Email:

Comm. Manager:

Date of Inspection:

Section 12. Vendor Compliance and ContractsYes,No,N/A


/A

Yes,No,N

/A

1

Is site doing work with vendors who have expired insurance? Run Vendor Audit Report from Yardi to confirm we are only doing work with

vendors who have valid insurance. Compare vendor invoice date to Vendor Audit

Report.

Contracts

2

Do service agreements exist on site and do documents have correct signatures? Review service agreements on Bigfoot for correct signatures. Properties will put

their Service Contracts on Bigfoot. Run GL and look for any services performed

and the Service Contract is not on Bigfoot.

Contracts

3 Do contracts have proper authorized signer? Review contracts for correct signatures. Contracts

4

Are contracts or service agreements in violation of our management agreement in terms of

proper approvals, length of contract and cancellation notice?

Review management agreement for (1) proper approvals needed for various

spending limits, (2) restrictions on length on contracts/service agreements and (3)

restrictions on cancellation notices for contracts/service agreements and compare

to terms of actual contracts/service agreements.

Contracts

5 Is the Project Approval Form completed prior to the Purchase Order date? Is the PAF dated prior to the PO Issued date? Contracts

6

Are we using vendors without familial relationships? Ask the site employees at beginning of audit if to disclose if there are Familial

relationships with vendors used on site. Vendor Agreement has added language

so vendors are asked to disclose familial relationships. Log of the disclosures will

be kept. Use log to review vendors and vendor work on site. Review Familial

Relationship Log for property selected.

Contracts

7

Are there any known familial relationships that have been disclosed? If there are disclosed familial relationships, (1) did the project go out to bid, (2) was

their bid the lowest to complete the work, (3) review invoices to determine invoices

are legitimate and (4) was work on invoices completed.

Contracts

2/10/2015 Page 4

Laramar Group Go to 36 Month Trend Tab

Standard Property Charges

Department/Item Required Optional Cost Description Cost $ Frequency

Timing If

Annual Acct Num. Description Notes

Human ResourcesMedical/Dental/Vision Admin & Claims X $499 per associate per month;

assuming 1.75 associates per 100

$620 Monthly 5030-0000 Health Insurance Charged monthly by accounting.

Healthy San Francisco Unique to each SF property Quarterly 5030-0000 Health Insurance Only applies to properties in San Francisco. Based on hours worked. Can trend based on property's

previous experience. Charges in addition to Laramar health insurance.401(k) Recordkeeping Fees X $.13 per unit/quarter $10 Quarterly 5040-0000 Payroll & Benefits - Other Bill-back.

Employee Assistance Program X $.23 per unit/quarter $16 Quarterly 5040-0000 Payroll & Benefits - Other Bill-back.

Benefit Enrollment Guides X $1.15 per unit $82 Annual Jan 5040-0000 Payroll & Benefits - Other Bill-back.

FSA/COBRA Admin Fees X $.04 per unit/month $3 Monthly 5040-0000 Payroll & Benefits - Other Bill-back.

Short-Term Disability X $27.58 per ee/month $62 Monthly 5030-0000 Health Insurance Directly billed to properties through payroll. Actual amount calculated on enrollment and earnings.

Includes admin fees and claims. Can trend based on property's previous experience.401(k) Employer Match X per ee/payroll Monthly 5055-0000 401K Contribution Directly billed to properties through payroll. Actual amount calculated on enrollment and contributions.

Max match is 3% of gross payroll. Can trend based on property's previous experience.Long-Term Disability X $22.60 per ee/month $51 Monthly 5030-0000 Health Insurance Directly billed to properties through payroll. Actual amount calculated on enrollment and earnings.

Includes admin fees and claims. Can trend based on property's previous experience.Life/ADD Insurance X $12.30 per ee/month $28 Monthly 5030-0000 Health Insurance Directly billed to properties through payroll. Actual amount calculated on enrollment and earnings.

Includes admin fees and claims. Can trend based on property's previous experience.Health Club Reimbursement X $25 per ee/month that participates Monthly 5030-0000 Health Insurance Directly billed to properties through payroll. Can trend based on property's previous experience.

Employment Posters X $46 per set $46 Annual Jan 5045-0000 Payroll Administration Fees Updated employment posters when state and federal laws change

EZ Labor X $.14 per unit $10 Monthly 5045-0000 Payroll Administration Fees Bill-back to property per unit. Total $4,000 per month

W2 Processing X $7.73 per ee $17 Annual Jan 5045-0000 Payroll Administration Fees Bill-back.

Marketing & TrainingCommunity Leadership Conference X Annual May 5685-0000 Education/Training $2,000 per manager, $2,000 per service manager

Grace Hill Training X $0.28 per unit per month $20 Monthly 5685-0000 Education/Training Tracking of leasing, fair housing and online training courses

Ellis Mystery Shop $95 Quarterly $95 Quarterly 5759-0000 Professional Services Shopping reports- Each sales Associate is shopped quarterly. Minimum of one property shop per

Lead to Lease $99 Monthly $99 Monthly 5605-0000 Advertising-Internet $99 for LTL

Call Max - Voicemail $118 Monthly $118 Monthly 5709-0000 Voicemail/Answering Svs/Muzak After hours emergency maintenance paging system

EZ Publish $59 Monthly $59 Monthly 5605-0000 Advertising-Internet Marketing templates for outreach, newletters, resident events,

Blue Moon $11 Monthly $11 Monthly 5733-0000 Computer Software Expense Cost for clicks to generate online leases

Blue Moon- Annual $175 Annual $175 Annual Sep 5733-0000 Computer Software Expense Annual membership fee for Blue Moon Software

Property Solutions- Prospect Portal X $120 Monthly $120 Monthly 5605-0000 Advertising-Internet Website placement- custom landing page and URL; ok for Henderson

Property Solutions-Resident Pay 70.44Monthly $70 Monthly 5754-0000Payment Processing Fees Expense Resident payment portal for online payments

Property Solutions-Mobile Portal X $29 Monthly $29 Monthly 5605-0000 Advertising-Internet Mobile website; ok for Henderson

Property Solutions-ILS Portal/Craigslist $60 Monthly $60 Monthly 5605-0000 Advertising-Internet ILS Portal with craigslist posting tool

Property Solutions-Lease Execution $40 Monthly $40 Monthly 5733-0000 Computer Software Expense Online lease and renewal execution

Property Solutions-Resident Portal $50 Monthly $50 Monthly 5605-0000 Advertising-Internet Online lease and renewal execution

Property Solutions- Message Center/Lead $00 Monthly $0 Monthly 5605-0000 Advertising-Internet Lead Management, follow up and e-blast capability to prospects and residents

Property Solutions- Site Tablet $39 Monthly $39 Monthly 5605-0000 Advertising-Internet Custom software for i-pad

Property Solutions- Call Tracker $50 Monthly $50 Monthly 5605-0000 Advertising-Internet Advertising tracking for up to 20 sources; ok for Henderson

Property Solutions- Parcel Alert $60 Monthly $60 Monthly 5605-0000 Advertising-Internet

Property Solutions - SEO $350 Monthly $350 Monthly 5605-0000 Advertising-Internet Premium placement on Google searches

Kingsley X 2.55 per unit per month $181 Monthly 5605-0000 Advertising-Internet Prospect and resident surveys- For Henderson properties check with Asset Manager

Apartment ratings.com $230 Annual $230 Annual Sep 5605-0000 Advertising-Internet Reputation management

Yelp $240 Annual $240 Annual Sep 5605-0000 Advertising-Internet Reputation management

Rent.com $349 Annual $349 Annual Jun 5605-0000 Advertising-Internet

For Rent.com varies Monthly 5605-0000 Advertising-Internet

Apartments.com $428 Monthly $428 Monthly 5605-0000 Advertising-Internet varies

Apartment Finder varies Monthly 5605-0000 Advertising-Internet

Apartment Guide varies Monthly 5605-0000 Advertising-Internet

Other $399 Annual $399 Annual Jun 5605-0000 Advertising-Internet

MyNewPlace.com varies 5605-0000 Advertising-Internet

Incent $375 Monthly $375 Monthly 5733-0000 Computer Software Expense

KeyTrak X $3.90 per unit per year $938.22 Annual Feb 5733-0001 Computer Software Expense Bill back

Software

Yardi License X$1,800 For > 51 Units, $500 For < 50

Per Year$1,800

AnnualMay

5733-0000 Computer Software Expense

Yardi Users > 51 units X $600 For >51 units Annual Jun 5733-0000 Computer Software Expense $150 per user; 4 users automatic with property larger than 50 units; some properties have more the 4 users

Yardi Users < 50 units $700 per user For <50 Annual Jun 5733-0000 Computer Software Expense May be split between multiple properties; allocate based on unit count

Yardi Check Scan $500 Per Year or $100 for Urban-Style $100 Annual Jun 5733-0000 Computer Software Expense

Yardi Pay Scan - Self Service $900 Per Year or $75 for Urban-Style $75 Annual Jun 5733-0000 Computer Software Expense

Yardi Pay Scan - Full Service - non urban 1.30 per scanned image Monthly 5733-0000 Computer Software Expense Trend historical expense; do not use for Urban-style

Microsoft X $0 Annual Sep 5733-0000 Computer Software Expense Use budgets from Mike Ferrara

AntiVirus X $0 Annual Sep 5733-0000 Computer Software Expense Use budgets from Mike Ferrara

Spam X $0 Annual Sep 5733-0000 Computer Software Expense Use budgets from Mike Ferrara

Firewall X $0 Annual Sep 5733-0000 Computer Software Expense Use budgets from Mike Ferrara

Domain X $0 Annual Sep 5733-0000 Computer Software Expense Use budgets from Mike Ferrara

LRO $1.85 Per Unit Per Month $131 Monthly 5733-0000 Computer Software Expense Henderson; use amounts provided by Asset Manager

Yield Star $2.00 Per Unit Per Month $142 Monthly 5733-0000 Computer Software Expense

HardwareServer Replacement X Property Specific $0 Annual Sep 8505-0000 Computer Hardware Capital Provided by IT

Hardware X Property Specific $0 Annual Sep 8505-0000 Computer Hardware Capital Provided by IT

OtherSCEP Fee Income $3.61 per unit per month $3.61 Monthly 4258-0002 SCEP/RSO Fees

RSO Fee Income x $12.25 per unit per year $12.25 Annual Jun 4258-0002 SCEP/RSO Fees Rent control only

SCEP Fee Expense $43.32 per unit per year $43.32 Annual Jan 5751-0005 SCEP/RSO Fees

RSO Fee Expense x $24.51 per unit per year $24.51 Annual Jan 5751-0005 SCEP/RSO Fees Rent control only

[Tab] 2/10/2015 2:49 PM

Property Name Year Built # of units % Occupied % LeasedWgt. Avg.

Unit SizeWgt. Avg. Mkt Rent/Unit

Wgt. Avg Mkt

Rent/SF

Wgt. Avg. Eff

Rent/Unit

Wgt. Avg. Eff

Rent/SFManagement Co

Bishops View 2000 200 92% 95% 971 $1,512 $1.56 1,491 $1.53 Lincoln Property Management

Brookview Apartments 2003 116 97% 0% 1,091 $1,749 $1.60 1,749 $1.60 Lincoln Property Management

Burroughs Mill 2004 308 97% 0% 1,076 $1,711 $1.59 1,711 $1.59 Monogram Apartment Communities

Woodview at Marlton 2000 288 96% 100% 1,161 $1,376 $1.19 1,376 $1.19 Morgan Communities

Highlands at Cherry Hill 2002 170 98% 99% 994 $1,448 $1.46 1,448 $1.46 Equity Residential

Mt. Laurel Crossing 1999 296 94% 96% 935 $1,780 $1.90 1,780 $1.90 Lincoln Property Management

Cherry Hill Towers 1962 434 97% 98% 909 $1,362 $1.50 1,362 $1.50 Viking Associates

Property Name # of UnitsAvg. Unit

SizeAvg. Eff Rent

Avg. Eff

Rent /SF

Bishops View 7 605 1,167$ 1.93$

Brookview Apartments 0

Burroughs Mill 0

Woodview at Marlton 0

Highlands at Cherry Hill 0

Mt. Laurel Crossing 0

Cherry Hill Towers 0


SizeAvg. Eff Rent

Avg. Eff

Rent /SF

Bishops View 110 832 1,305$ 1.57$

Brookview Apartments 43 885 1,496.51$ 1.69$

Burroughs Mill 126 895 1,484.29$ 1.66$

Woodview at Marlton 40 920 1,425.00$ 1.55$

Highlands at Cherry Hill 74 776 1,221.32$ 1.57$

Mt. Laurel Crossing 160 759 1,636.61$ 2.16$

Cherry Hill Towers 109 737 1,225.23$ 1.66$


SizeAvg. Eff Rent

Avg. Eff

Rent /SF

Bishops View 69 1,125 1,686$ 1.50$

Brookview Apartments 61 1165.41 1,806.54$ 1.55$

Burroughs Mill 152 1153.026 1,758.04$ 1.52$

Woodview at Marlton 248 1200 1,368.00$ 1.14$

Highlands at Cherry Hill 84 1144 1,570.00$ 1.37$

Mt. Laurel Crossing 107 1092.402 1,781.64$ 1.63$

Cherry Hill Towers 325 966.4062 1,408.19$ 1.46$


SizeAvg. Eff Rent

Avg. Eff

Rent /SF

Bishops View 14 1,495 2,154$ 1.44$

Brookview Apartments 12 1,450 2,357$ 1.63$

Burroughs Mill 30 1,450 2,426$ 1.67$

Woodview at Marlton 0

Highlands at Cherry Hill 12 1,287 1,990$ 1.55$

Mt. Laurel Crossing 29 1,322 2,563$ 1.94$

Cherry Hill Towers 0

Studio Rent Comparables

1 Bedroom Comparables



Market Survey

BISHOP’S VIEW//

MANAGEMENT SERVICES PRESENTATION

Documents

Reporting Supplement - TIAA-CREF RFP Response