Forum Replies Created
We are revisiting how to train site staff on our software. We use Yardi and would be interested in knowing how other groups are training staff on their property mgnt software – is this a function of property management, accounting, a trainer, or a combination?January 7, 2020 at 5:17 pm in reply to: Developer fee recognition under new revenue recognition standards for 2019 #3452Kenny DennisonParticipant
I was an attendee in Dallas and I am curious of the pulse of the community as more time as elapsed specifically surrounding the concept of a development service agreement (DSA) as one performance obligation. I do see that argument, but I also think it could be argued there are at least two performance obligations – 1 for the work performed before construction commences and 1 for the oversight of construction.
The guidance states a good or service that is promised to a customer is distinct if both of the following criteria are met: 1) The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct). 2) The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract.
I think the services in a DSA up and until the investor is in the LP and construction commences would meet the above criteria and thus be a separate performance obligation.
I appreciate any feedback on this approach.
Kenny Dennison, CPA
Dauby O’Connor & Zaleski, LLC
We budgeted $99K for 2020 for an outside IT vendor to provide IT support to our 70+ employees. That amount does not include computer upgrades, software support or other costs.Lorrie MauroParticipant
We budgeted $468,000 for 2019. We have over 500 employees.Eric HarveyParticipant
I’ve been tasked with coming up with industry best practices around accounting policies and procedures. Would anyone be willing to share their thoughts or ideas or examples?MATT HANNIGANParticipant
I’ve been on YARDI before, and it is a pretty good bet for what you are describing. We were happy with it.
Just two words of caution (and you may already know these):
1. How well the implementation is done is HUGE. Two different sites can implement the same sw package, and one is a big success and the other a disaster, all depending on how well the implementation and configuration were done. So, plan carefully.
2. Negotiate the price of the sw and support effectively. Users pay way too much for sw. The vendor may say they can’t negotiate. Nonsense. Once you are on a particular sw package, especially a “total solution” like YARDI, you are married to it. SW vendors know this and exploit it. We were paying something like $120K per year for YARDI as a SaaS. But you have to ask if the sw pkg is bringing $120K of value into your company . . . ? This also includes negotiating what sort of support you are going to get. (I was happy with YARDI support when I was on YARDI in 2018.) Also, there should not be any “automatic price increases” in your sw (ERP) contract. If sw vendors want more money, they can & should earn it with increased value and services.
I’ve done over 50 ERP sw implemenations, and the above are the 2 most frequent problems.
I would appreciate any input regarding your organization’s budget allocation for Board of Directors related activities. We are a membership based organization so we have costs related to supporting the members as well as expenses related to our Board of Directors. In 2019, we allocated $70K ($45K for the board and $25K for our annual member meeting) of our $3.8M operating budget to board and member activities. We currently have 13 board members (7 who are current or former residents) and 3600 members/residents who live in 1100 households.
We have asked our board to reduce their budget in 2020 and our board requested comparable data from other organizations.
If you feel comfortable, can you please share your total budget, budget for the board and number of board members.
Mutual Housing California
- This topic was modified 6 months, 3 weeks ago by Chelsea Maupin.
I wouldn’t be working if I were better at predicting the economy and markets…. that said, has anyone been working through specific scenarios regarding the possibility that we may be heading for a recession? Changes in risk appetite? Enhanced monitoring? Looking at where development portfolio is re development cycle timing? Reviewing refi or conversion deadlines? etc.?
September 27, 2019 at 12:09 am in reply to: Developer fee recognition under new revenue recognition standards for 2019 #3280Paul SussmanParticipant
- This topic was modified 7 months, 3 weeks ago by Chelsea Maupin.
Wondering how different organizations budget in their annual budgets given the sometimes very significant variance btwn cash and accrual. I’ve seen some who budget (and report w/ variance analysis) accrual, then track cash receipts on the side; others who budget for cash receipts and track accrual on the side (and of course for the audit TB P&L).
Yardi works for us for everything. However, the construction module is a little weak in the area of multi-funded projects – the project managers use Excel, but on the accounting side, it does everything we need it to. For property management it works wonderfully. For corporate accounting, including fund accounting you can make it work using segments for grants. We have very few grants that we need to track but our problem comes in with not being able (or set up) to track grant time at the timesheet level in ADP so importing the payroll journal with the right grant segments has been tricky (but not necessarily a shortfall of Yardi’s). I honestly couldn’t be happier with Yardi and feel really comfortable that everything is in one system. That said, Yardi is a complex piece of software that requires someone well-versed in software system administration to set up and maintain on a regular basis.
Excel. We upload them into Yardi with a template. For our corporate entity we do separate department budgets which must be uploaded individually.
Do you do reforecasts at any time during the year? We do not formally reforecast or modify the budget once the board has approved it – we just explain variances to budget throughout the year.
In what frequency–quarterly, semi-annually, or just once? I produce the budget/actual financials monthly (in Excel), but present them to the board quarterly. This process includes a forecast in which I show actual data for past months and budgeted data for future months. I am able to modify the future month budget data in this tool for anticipated items in excess or less than budget (material items only).
What tools do you utilize to create the process? Excel only
ThanksSeptember 19, 2019 at 3:16 pm in reply to: Developer fee recognition under new revenue recognition standards for 2019 #3237Frances FergusonParticipant
Thank you Scott!, francieSeptember 19, 2019 at 10:32 am in reply to: Developer fee recognition under new revenue recognition standards for 2019 #3234Scott SeamandsParticipant
As an update to my question above, yesterday’s group discussion at the Dallas convening indicated that viewing the DSA as a single performance obligation was generally accepted as a way of simplifying the revenue recognition implementation. Then it’s just a matter of how to recognize the entire fee over time, using a percentage of completion model. The payment milestones are not necessarily a useful guideline to follow when it comes to percentage of completion calculations. The topic paper (4a) on the SM website is being updated to reflect the new revenue recognition standards.Kaitlyn McNerneyParticipant
We currently use Loan Ledger, and have nothing but problems. I am looking to find out what other groups are using for loan servicing. Do you love it? Do you hate it? Is it expensive? Cloud based vs. on-site. Any and all feedback would be appreciated.
- This topic was modified 7 months, 3 weeks ago by Chelsea Maupin.