Below is an overview of how we conduct our monitoring service on a quarterly basis for the Opportunities we’ve been engaged by our members to monitor.
- Collect the Income Statement, Balance Sheet, General Ledger Detail and Bank Statements for the applicable investment vehicle from the member.
- Review and verify that the calculations for any fees paid to the Sponsor or any of its affiliates were done in compliance with the applicable investment vehicle’s Operating Agreement or any other similar charter documents (the “Operating Agreement”). If there is a variance, bring it to the attention of the member and note it on the Monitoring Report.
- Review all general ledger transactions and identify any that appear to be with a related party. Confirm that those transactions are allowed under the terms of the Operating Agreement and in all cases note them on the quarterly Monitoring Report.
- Ensure that any entity expenses and reimbursement payments made are allowed under the terms of the Operating Agreement. If there are any transactions that aren’t allowed, confer with member on a plan to rectify the situation and document the discrepancy and plan in the Monitoring Report.
- Identify any new assets that were acquired during a given reporting period. Work with the member to gather transaction documentation (such as a closing statement) and then utilize one or more publicly accessible data sources (such as county title records) to confirm that the transaction occurred and is properly titled. If the member elects to not engage Verivest to verify the existence of the asset, this will be noted on the Monitoring Report.
- If the Operating Agreement stipulates limitations around the use of leverage or concentrations by property type, geography, asset size, etc., Verivest will test the entity’s compliance with those restrictions and note its findings on the Monitoring Report.
LAST UPDATED JANUARY 28, 2021