User Manual UPDATED 1/2016

Transcription

1 User Manual UPDATED 1/2016

2 Information in this document is subject to change without notice. Companies, names, and data used in examples herein are fictitious unless otherwise noted. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Kardin Systems. Kardin Systems, Inc. All Rights Reserved. KARDIN SYSTEMS AND/OR ITS RESPECTIVE SUPPLIERS MAKE NO REPRESENTATIONS ABOUT THE SUITABILITY OF THE INFORMATION CONTAINED IN THIS DOCUMENT FOR ANY PURPOSE. THIS DOCUMENT IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. KARDIN SYSTEMS AND/OR ITS RESPECTIVE SUPPLIERS HEREBY DISCLAIM ALL WARRANTIES AND CONDITIONS WITH REGARD TO THIS INFORMATION, INCLUDING ALL IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT. IN NO EVENT SHALL KARDIN SYSTEMS AND/OR ITS RESPECTIVE SUPPLIERS BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF INFORMATION AVAILABLE IN THIS DOCUMENT. Kardin, Kardin Systems, Kardin Budget System, Kardin Consolidation System, and/or other Kardin Systems' products referenced herein are either trademarks or registered trademarks of Kardin Systems. Microsoft, Windows, and Microsoft Excel are trademarks of Microsoft Corporation. Other product and company names mentioned herein may be the trademarks of their respective owners. Kardin Systems, Inc. All Rights Reserved Updated January 2016

3 Preface and List of Webinars Welcome to KARDIN BUDGET SYSTEM PREFACE AND LIST OF WEBINARS We highly recommend that users utilize this manual in conjunction with our pre recorded webinar sessions on the Kardin Budget System Product listed below. These sessions can be accessed by visiting the Customer Support section on the Kardin website: (requires password as provided by Kardin Systems, Inc.) Section Title Material 1a Getting Started Kardin Basics Start with budget or reforecast? Use single or multi building? Has Master COA been setup? Where can I get accounting downloads? What do they look like? Getting started with Kardin basics 1b Getting Started Software Download and Installation Download and Installation Changing Company Name 1d Getting Started License Management License Management Deleting and transferring a Kardin License 2a COA Setup: Filtering Accounts Sessions 2a,b and c are for owners, accountants and managers who are responsible for setting up a standardized budget reporting template General Guidelines for COA Setup Filtering Accounts in Excel 2b Setting Up a Master COA in Kardin and Chart of Accounts Maintenance COA Structure Uploading COA into Kardin Importing Master COA into New File COA Maintenance COA Links to Budget V. 35.xx Updated January

4 Preface and List of Webinars 2c Setting Up Alternate COA in Kardin Alternate COA Overview Creating/Uploading Alternate COA Exporting Data Using Alternate COA 3a Overview Commercial Property Budgeting and Reforecasting This session provides an overview road map of the entire budgeting and reforecasting process. It is highly recommended for users to start with this unit before moving on Create a Budget for Next Year Create 1 st Qtr Reforecast Create 2 nd Qtr Reforecast Create Next Year s Budget from 2 nd Qtr Reforecast Update Reforecast with 12 months Actuals for Operating Expense Reconciliation 3b Overview Multi Family Budgeting and Reforecasting Multi Family Budget Process 3c Overview Facilities Management Budgeting and Reforecasting Facilities Management Budgeting 4 Property Setup Single Building File Setup Property Information and Budget Year Importing Chart of accounts COA Links to Budget Multi Building File Setup Creating Cost Centers Allocations 4a FAQ Deleting a Cost Center How to delete an existing Cost Center 5a Importing GL Budgets and Actuals Components in a Reforecast File Three Ways to Create a Reforecast Import Current Year Budget Import Current Year Actuals Import Budget into Reforecast for Modification Potential Errors and Solutions 5b Importing Unit Data for Multi Family Properties Multi Family Overview Import Unit Data Rent Roll V. 35.xx Updated January

5 Preface and List of Webinars 5c Importing Lease Data for Commercial Properties Review of Format for Data Import into Kardin Procedure for Importing Data and Correcting Errors in Data Flow of Data and Checking Accuracy 6a,6b Income Suites, Rent Roll and Leasing Assumptions Suites, Inventory of Spaces Rent Roll: Contract & Spec. Leases Creating, Modifying and Applying Leasing Assumptions Leasing Reports 6c Income Leasing Multi Family Properties Rent Roll Market Rent Increase Actual Rent Increase Occupancy Assumptions Turnover Cost Concessions and Delinquencies Economic Occupancy 6d Income Leasing Retail % Sales Rent % Sales Rent Calculation Methods Breakpoint Methods Entering Sales Data Reports 7 Budget Input How to Search for a GL Number Manual Data Input Importing Budget Data Budget Input Reports 8a Expenses User Defined Calculation Introduction to User Defined Calculations User Defined Calculations Setup 8b Expenses % increase Provides method to create Multi Year forecasts by increasing current budget by a percentage 9 Expenses Payroll Payroll Burden Payroll Detail Security 10a Debt Service Debt Fully Amortized Debt Interest Only 10b Amortization Schedules Introduction to Amortization and Depreciation Amortization Schedules for Budgeted and Other Capital V. 35.xx Updated January

6 Preface and List of Webinars 11a Recoveries Commercial Property Theory and Overview Recovery Theory and Overview for Office and Industrial Properties 11b Recoveries Commercial Property Setup Steps I & II Financials Expense Codes Caps 11c Recoveries Commercial Property Setup Steps III & IV Expense Schedules Rent Roll Tenant Reimbursement Reports and Export 11d Recoveries Commercial Property Reforecasting and YE Reconciliations Reforecast 2 nd Quarter Create Next Year s Budget from Current Reforecast Reforecast 4 th Qtr w/ye Reconciliations 11e Recoveries Fixed Amount Fixed Recovery Pools Assigning and Linking to Tenant 11f Recoveries Fiscal Year Budget with Calendar Year Recoveries Setting up a fiscal year budget with calendar year recoveries 11g Recoveries Retail Properties Setup Steps I,II & III Overview Denominator Pools Charge Codes Expense Schedules Caps 11h Recoveries Retail Properties Setup Step IV Rent Roll Tenant Reimbursement Retail Recovery Reports YE Reconciliations 12 File Review Auditing Reports Financial Reports Leasing Reports Recoveries Reports Other Reports Export Reports V. 35.xx Updated January

7 Preface and List of Webinars Kardin Systems, Inc. Kardin Systems was founded in 1996 Kardin is used by Managers, Owners, Advisors and REITS Proven, tested and standardized by some of the largest companies in the Real Estate Industry What is Kardin? The Kardin Budget System & Kardin Consolidation System are proprietary software programs developed to help real estate owners and managers plan, forecast and analyze performance to ensure that their financial objectives are met. V. 35.xx Updated January

8 TABLE OF CONTENTS TABLE OF CONTENTS PREFACE AND LIST OF WEBINARS SECTION 1 INTRODUCTION...11 THE KARDIN BUDGET SYSTEM CREATING A NEW CALENDAR YEAR REFORECAST CREATING NEXT YEAR'S BUDGET FROM CURRENT YEAR REFORECAST REFORECASTING BUDGETING GETTING HELP SECTION 1A IMPLEMENTATION STEPS...16 CREATING A NEW BUDGET CREATING NEXT YEAR S BUDGET FROM CURRENT YEAR BUDGET CREATING NEXT YEAR S BUDGET FROM CURRENT YEAR REFORECAST CREATING A NEW REFORECAST CREATING CURRENT YEAR REFORECAST FROM CURRENT YEAR BUDGET RECONCILING PRIOR YEAR CAM / OPERATING EXPENSE RECOVERIES FISCAL YEAR BUDGETING / CALENDAR YEAR RECOVERIES CREATING A MULTIPLE YEAR BUDGET (I.E. 5 YEAR BUDGET) CREATING A NEW BUDGET (MULTI FAMILY) CREATING CURRENT YEAR S REFORECAST FROM CURRENT YEAR BUDGET (MULTI FAMILY) CREATING A NEW REFORECAST (MULTI FAMILY) CREATING NEXT YEAR S BUDGET FROM CURRENT YEAR REFORECAST (MULTI FAMILY) IMPORTING UPDATED CURRENT/PRIOR REFORECAST NUMBERS INTO NEXT YEAR S BUDGET/REFORECAST FILE REPORTING WITH ALTERNATE CHART OF ACCOUNTS SECTION 2 GETTING STARTED INSTALLATION (DOWNLOAD FROM WEBSITE: 37 CREATING A DESKTOP ICON SAMPLE DATA DOWNLOAD OBTAINING AN UNLOCK CODE LICENSE MANAGEMENT DELETING A LICENSE SOFTWARE EVALUATION COPY CHANGE TO COMPANY NAME PROGRAM OPTIONS FILE MANAGEMENT KARDIN SYSTEMS APPLICATION ON TERMINAL SERVER INSTRUCTIONS SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP OVERVIEW PROPERTY INFORMATION / BUDGET YEAR CHART OF ACCOUNTS SETUP CHART OF ACCOUNTS IMPORT CHART OF ACCOUNTS EXPORT ALTERNATE CHART OF ACCOUNTS SETUP COA LINKS TO BUDGET

9 TABLE OF CONTENTS CURRENT YEAR ACTUALS SECTION 4 DATA LEASING & RECOVERIES LEASING AND RECOVERIES OVERVIEW IMPORT FROM SPREADSHEET LEASING ASSUMPTIONS APPLY LEASING ASSUMPTION TEMPLATE TO VACANT SUITES APPLY LEASING ASSUMPTION TEMPLATE TO EXPIRING SUITES SUITES RENT ROLL RENT SCHEDULE BASE RENT RENT SCHEDULE CPI RENT SCHEDULE PORTER S WAGE RENT SCHEDULE PARKING MISCELLANEOUS RENT PERCENTAGE SALES RENT EXPENSE REIMBURSEMENT TENANT IMPROVEMENT LEASING COMMISSION ACCOUNTING KEY COMMERCIAL REIMBURSEMENT FINANCIALS EXPENSE CODES EXPENSE SCHEDULES COMMERCIAL CAP LIST RETAIL REIMBURSEMENT DENOMINATOR GROUPS RETAIL CHARGE CODES RETAIL EXPENSE POOLS RETAIL CAP LIST FIXED REIMBURSEMENT FIXED RECOVERY POOLS PERCENTAGE SALES MONTHLY SPREAD LIST INDEXES CPI INDEX PORTER S WAGE INDEX LINKING FILES SECTION 4A DATA LEASING & ASSUMPTIONS LEASING AND ASSUMPTIONS OVERVIEW IMPORT UNIT INFORMATION MARKET RENT INCREASES RENT ROLL ACTUAL RENTS CALCULATION START MONTH OCCUPANCY ASSUMPTION TURNOVER COSTS

10 TABLE OF CONTENTS CONCESSIONS & DELINQUENCIES FINANCIALS ECONOMIC OCCUPANCY NUMERATOR & DENOMINATOR SECTION 5 DATA OTHER BUDGET INPUT PERCENTAGE INCREASE USER DEFINED CALCULATIONS PAYROLL AMORTIZATION SCHEDULES.222 SECTION 6 OUTPUT REPORTS AND EXPORT VARIANCE BUDGET LEASING COMMERCIAL LEASING MULTI FAMILY RECOVERIES OTHER EXPORT CREATE REFORECAST / BUDGET FILE SECTION 7 PROCESSES & INCORPORATING KBS TO MY DAILY OPERATIONS CHART OF ACCOUNT SET UP GENERAL RULES REPORTING WITH ALTERNATE CHART OF ACCOUNTS SPLIT ONE SUITE INTO TWO / MORE SUITES COMBINE TWO / MORE SUITES RE MEASURE SUITES ADD SUITES DELETE SUITES ADDING A COST CENTER DELETING A COST CENTER MERGING SINGLE BUILDING FILES TO MULTI BUILDING IMPORTING UPDATED CURRENT/PRIOR REFORECAST NUMBERS INTO THE NEXT YEAR S BUDGET/REFORECAST FILE MULTIPLE YEAR BUDGETS ADDENDUM ERRORS AND POSSIBLE ERRORS RENT ROLL SUPPORT AND RESOURCES

11 SECTION 1 INTRODUCTION Kardin Budget System / Creating A New Calendar Year Reforecast The Kardin Budget System The Kardin Budget System consists of a fully integrated suite of products that streamlines the process of budgeting and re forecasting for both Commercial Property (single building and multiple building environments) and Multi Family Residential. Section 1 provides an overview of the functionality of The Kardin Budget System and overall process. Creating a New Calendar Year Reforecast Step Webinars 1. Process Overview Budgeting & Reforecasting Webinar: 3a 2. 1) From the Accounting System, download the following leasing and financial data to Excel: Webinar: 1a a. Chart of Accounts b. Suite data c. Tenant data d. Rents data e. Current Year Budget f. Current Year Actuals g. Historical Actual Data (if needed/desired) 3. From main menu, create a New Reforecast file (*reforecast extension) N/A 4. Property Information/Budget Year: enter Property Name, Budget Start Date, Prepared For / Prepared By information and Building Type 5. 1) If you need to setup a new Chart of Accounts in Kardin, watch Webinars 2a and 2b. It the Chart of Accounts has already been set up in Kardin, Import from Kardin file and watch Webinar 2b. Webinar: 4 Webinar: 2a & 2b 2) Setup COA Links to Budget (Webinar 2b) 6. From the Current Year Actuals screen, import the following: Webinar: 5a a. Current Year Budget b. Current Year Actuals V. 35.xx Updated January

12 SECTION 1 INTRODUCTION Creating A New Calendar Year Reforecast 7. From the Budget Input screen, use Import from Spreadsheet feature to import the current year budget to populate remaining months. 8. From the Reports and Export screen, Variance tab, print the Combined Detail Variance report for easy reference of account codes used in both actuals and budget. 9. Budget Input Fields are now populated with YTD Actuals (locked). Remaining months are populated with the original budgeted data. Enter material changes for any income or expense items for remaining months. For calculated items, such as rents, recoveries, TIs and LCs, make sure to delete duplicate values. 10. From the Leasing & Recoveries screen go to Import from Spreadsheet, import Suites, Tenants and Rents data from accounting system downloads, Validate Data and Upload/Update Leasing data. 11. From the Reports and Exports screen, Leasing tab, print the Rent Roll and compare to your accounting system rent roll. Webinar: 7 N/A Webinar: 7 Webinar: 5c N/A 12. Review Suites and their square footage. Webinar: 6a 13. Review Rent Roll and Rent Schedules for accuracy. Webinar: 6a 14. Set up Leasing Assumptions (for remaining year). Webinar: 6b 15. Apply Leasing Assumptions to vacancies and expiring leases in the Rent Roll. 16. If this is a retail property, go into Rent Roll and click %Sales button to set up % Sales Rent. Webinar: 6b Webinar: 6d 17. View/Print Reports and perform required audits. Webinar: From main menu, Create Budget File and follow prompts to create the following year s budget file with a *.cm3 extension. N/A V. 35.xx Updated January

13 SECTION 1 INTRODUCTION Creating Next Year s Budget from Current Year Reforecast Creating Next Year s Budget from Current Year Reforecast Step Description Webinars 1. Open Budget File (*.cm3) created in Step 18. above. N/A 2. In Budget Input, update descriptions and amounts for next year s budget. Webinar: 7 3. In Suites, review space configuration requirements for leasing activity. Webinar: 6a 4. In Rent Roll, review vacancies and expiring leases. Webinar: 6a 5. Update Leasing Assumptions to reflect terms for new leases and apply them to the vacancies and expirations in the Rent Roll. 6. Setup Recoveries for Office or Industrial Properties: 1. Create Expense Codes 2. Create Commercial Cap List 3. Create Expense Schedules 4. Apply Expense Schedules to tenants in Rent Roll under Reimbursements 7. Setup Recoveries for Retail Properties: 1. Create Denominator Groups 2. Create Retail Charge Codes 3. Create Retail Expense Pools 4. Apply Retail Expense Pools to tenants in Rent Roll under Reimbursements Webinar: 6b Webinar: 11a, 11b, 11c Webinar: 11a, 11g, 11h 8. Review/update User Defined Calculations (Mgmt fees, etc.). Webinar: 8a 9. View/print Reports. Webinar: 12 V. 35.xx Updated January

14 SECTION 1 INTRODUCTION Reforecasting / Budgeting Reforecasting To prepare a reforecast, you will either create a new reforecast file from scratch or create a reforecast file from a current budget file. Only create new reforecast file when implementing a property for the first time. If you already have a Kardin budget file, you can create a reforecast from the current budget file. When creating a new reforecast file, you can import current lease information, as well as budget data from your accounting system using a spreadsheet interface. Then you will import YTD actual GL data from the accounting system. Your reforecast will consist of actual amounts YTD plus the original budget values for the remaining months. As part of the reforecasting process, you can adjust the income and expenses for the remaining months based on current information. Prior to preparing a budget for the following year, the manager may choose to first prepare a reforecast of the current year, which will serve as a starting point for next year s budget. If you are preparing a budget for the next calendar year during the month of October, your current year reforecast may consist of 9 months of actuals and 3 months forecast. You may also reforecast monthly, quarterly or semi annually. Once the reforecast is completed, you can create a budget file. By creating a budget file from a reforecast file, you will have access to all of your updated lease information; assumptions made as of the latest reforecast, and current year s income and expenses. If your original budget source is a Kardin Budget File, you will retain all your lease and assumption information in which case you will adjust your leasing assumptions to reforecast rents and capital costs. If your original budget source is an Excel spreadsheet, you will need to import your leasing information from the accounting system and make some leasing assumptions. You may also adjust your income and expenses for the last 3 months in the year. In addition to the standard reports, there are variance reports available on both a twelve months basis as well as a Y T D basis. Once you have 12 months of actual expenses, you may use the Reforecast File to reconcile the actual recoverable expenses with the billed estimates for tenant expense recovery. Budgeting To prepare a budget file, you will either create a new budget file from scratch or create a budget file from a current reforecast file. Note: Only create new budget file when starting a property budget in Kardin for the first time. When not using the reforecasting process, you can create next year s budget file from a current year budget file. Please refer to the Implementation Steps, later in this section, for further explanation. Budgeting involves importing current lease information from accounting, making leasing assumptions on vacancies and expirations and entering expenses on a sub account level. The Budget system also has the ability to calculate each tenant s estimated operating expense recovery. Once the budget is completed it can be exported into a spreadsheet for upload into your accounting system. You may also prepare a reforecast file from this budget. V. 35.xx Updated January

15 SECTION 1 INTRODUCTION Getting Help Getting Help In addition to this User Manual, you can utilize the "Instructions" button located on the bottom right of nearly every screen inside the Kardin application. The Instructions button contains an excerpt from the user manual pertaining to the screen in which you are working. You can view and/or print the instructions. Visit our website View the KBS Customer Support section to find additional documentation for download and recorded webinars for viewing. If none of these resources can provide the answer to your question, you can send us an e mail at support@kardin.com or give us a call at Tel.: (707) Please note that, unless you are calling with a true technical system error, support charges may apply. V. 35.xx Updated January

16 SECTION 1A IMPLEMENTATION STEPS Creating a New Budget Creating a New Budget 1. Order Kardin Budget System 2. Install Application (Refer to page 37) 3. Obtain License Unlock from Kardin (Refer to page 42) 4. Obtain data downloads from Accounting Department a. Chart of Accounts (Kardin File) b. Suites (Excel file) c. Tenants (Excel file) d. Rents (Excel file) e. Or, a.cm3 file with all listed data (if this is the case, open the file in Kardin and go to #6, skip #7 & 8) 5. Create a new budget file in Kardin (Refer to page 63) 6. Set up Property Information (Refer to page 63) 7. Import Chart of Accounts (Refer to page 74) 8. Import Suites, Tenants, Rents (Refer to page 100) 9. Set up Leasing Assumptions (Refer to page 109) 10. Review Suites, square footages, enter market rents (Refer to page 118) 11. Review Rent Roll and rent schedules for accuracy (Refer to page 118) 12. Apply Lease Assumptions in Rent Roll tab (Refer to page 112) 13. Input budget in Budget Input tab (Refer to page 201) a. Expenses 16

17 SECTION 1A IMPLEMENTATION STEPS b. Non calculated income c. Non calculated capital 14. Set up Recoveries a. Financials: import/input Historical GL Data (Excel file) (Refer to page 196) b. Create Expense Codes (Refer to page 148) c. Create Expense Schedules and make necessary adjustments (Refer to page 149) d. Set up Expense Reimbursements in Rent Roll tab (Refer to page 143) e. (Note: For Retail Recoveries, refer to pages ; for Fixed Recoveries, refer to page 168) 15. Set up User Defined Calculations Management fees, etc. (Refer to page 213) 16. Set up Payroll calculations (Refer to page 219) 17. View/print reports in Reports & Exports tab (Refer to page 228) 17

18 SECTION 1A IMPLEMENTATION STEPS Creating Next Year s Budget from Current Year Budget Creating Next Year s Budget from Current Year Budget 1. Copy a new budget file from last year s file a. Via Window s Explorer, copy last year s.cm3 file to create a new one b. Change the name of the new file to reflect next year c. Open the new file in Kardin d. Go to Property Information and change the year to the new budget period 2. Obtain new data downloads from Accounting Department a. Suites (Excel file) b. Tenants (Excel file) c. Rents (Excel file) 3. Import Suites, Tenants, and Rents as an update to the file or manually update tenants in Rent Roll (whichever is easier). (Refer to page 100) 4. Update Leasing Assumptions to reflect new budget period (Refer to page 112) 5. Review Suites, square footages, update market rents (Refer to page 118) 6. Review Rent Roll and rent schedules for accuracy (Refer to page 118) 7. Update Recoveries a. Financials: update prior year s actual GL data (Refer to page 196) i. If prior year file type is actuals, then update this data via Edit button ii. If prior year file type is reforecast, leave this line and add a new financial for same year with file type = actual b. Update Expense Codes if necessary (Refer to page 148) c. Create Expense Schedules for new financials (including the current budget period) that were updated/created in #a above and make necessary adjustment (Refer to page 149) d. Update Expense Reimbursements in rent roll (Refer to page 143) e. (Note: For Retail Recoveries, refer to pages ; for Fixed Recoveries, refer to page 168) 8. Apply Lease Assumptions in Rent Roll tab (Refer to page 112) 18

19 SECTION 1A IMPLEMENTATION STEPS Creating Next Year s Budget from Current Year Budget 9. Update Budget Input (last year s budget numbers copied to this new file) can manually edit via Budget Input tab or can utilize the % Increase feature. (Refer to page 201) a. Expenses b. Non calculated income c. Non calculated capital 10. Review/update User Defined Calculations Management fees, etc. (Refer to page 213) 11. Update Payroll calculations (Refer to page 219) 12. View/print reports in Reports and Exports tab (Refer to page 228) NOTE: If you have a current year Reforecast File, you can create next year s budget within this file and start at Step 1.c. above, and in this case, the date will automatically change to next year during file creation. 19

20 SECTION 1A IMPLEMENTATION STEPS Creating Next Year s Budget from Current Year Reforecast Creating Next Year s Budget from Current Year Reforecast 1. Open Current Reforecast File a. From main menu, Create a Budget File (bottom right button) b. Create a file name with a.cm3 extension c. You will be asked: The budget file that is being created will have duplicate information in accounts with both Actuals, and linked data. Do you want the Actuals for these accounts to be automatically deleted in the new file? Yes/No Yes answering yes will automatically delete the YTD Actuals that were imported into the reforecast file. No answering no will not delete the YTD Actuals that were imported into the reforecast file. This will cause duplication in the GL accounts that are linking calculations within the budget file this is ok, you can simply delete these duplicate records directly in Budget Input for the applicable GL accounts in the budget file. Note: most users will want to answer yes. d. Close the reforecast file e. Open the new file in Kardin (file, open budget) 2. Obtain new data downloads from Accounting Department a. Suites (Excel file) b. Tenants (Excel file) c. Rents (Excel file) 3. Import Suites, Tenants, and Rents as an update to the file or manually update tenants in Rent Roll (whichever is easier). (Refer to page 100) 4. Update Leasing Assumptions to reflect new budget period (Refer to page 109) 5. Review Suites, square footages, update market rents (Refer to page 118) 6. Review Rent Roll tab and rent schedules for accuracy. (Refer to page 118) 7. Update Recoveries a. Financials: update prior year s actual GL data (Refer to page 196) i. If prior year file type is actuals, then update this data via Edit button ii. If prior year file type is reforecast, leave this line and add a new financial for same year with file type = actual iii. Note: if you have updated your current year s reforecast file since creating the next year s budget file and you are needing to update the reforecast data in financials, first you will need to open the current year *.rf3 file and export the data via Export 20

21 SECTION 1A IMPLEMENTATION STEPS Creating Next Year s Budget from Current Year Reforecast Wizard (Refer to page 228), second you will need to import from the newly created spreadsheet into the next year s budget *.cm3 file via Financials (Refer to page 196). b. Update Expense Codes if necessary (Refer to page 148) c. Create Expense Schedules for new financials (including the current budget period) that were updated/created in #a above and make necessary adjustments (Refer to page 149 d. Update Expense Reimbursements in rent roll (Refer to page 143) 8. Apply Lease Assumptions in rent roll (Refer to page 109) 9. Update Budget Input tab (last year s reforecast number s copied to this new file and if you requested not to delete the actuals, you will see the YTD actuals that copied from the reforecast file). Manually update the entries for all non calculating items. (Refer to page 201) a. Expenses b. Non calculated income c. Non calculated capital 10. Review/update User Defined Calculations (Management fees, etc.) (Refer to page 213) 11. Update Payroll calculations (Refer to page 219) 12. View/print reports in Reports and Exports tab (Refer to page 228) 21

22 SECTION 1A IMPLEMENTATION STEPS Creating A New Reforecast Creating A New Reforecast 1. Order Kardin Budget System (budget and reforecast features) 2. Install Application (Refer to page 37) 3. Obtain License Unlock from Kardin (Refer to page 42) 4. Obtain data downloads from Accounting Department a. Chart of Accounts (Kardin File) b. Suites (Excel file) c. Tenants (Excel file) d. Rents (Excel file) e. Current Year GL Budget amounts f. Current Year YTD GL actual amounts 5. Create a new reforecast file in Kardin (Refer to page 49) Reconciling Prior Years CAM / Operating Expense Recoveries Note: This process is also administered via a reforecast file by uploading 12 months of actual GL data and updating 12 months of tenant pre billed CAM charges. Kardin will continue to recognize the data in a Reforecast environment, even though you know the data is 12 months of actuals from accounting. 6. Set up Property Information (Refer to page 63) 7. Import Chart of Accounts (Refer to page 74) 8. Import Suites, Tenants, Rents (Refer to pages 100) 9. Set up Leasing Assumptions (for remaining year) (Refer to page 109) 10. Review Suites, square footages, enter market rents (Refer to page 118) 11. Review Rent Roll and rent schedules for accuracy (Refer to page 118) 12. Apply Lease Assumptions in Rent Roll (Refer to page 112) 22

23 SECTION 1A IMPLEMENTATION STEPS Creating A New Reforecast 13. Current Year Actuals tab (Refer to page 84) a. Import Current Year Budget (Refer to page 84) b. Change Number of Months of Actuals (Refer to page 85) c. Import Current Year YTD Actuals (Refer to page 86) 14. Budget Input tab update remaining year reforecast amounts (Refer to page 201) a. Import Current Year Budget (you need to do this in addition to #13a above) b. Expenses c. Non calculated income d. Non calculated capital 15. Set up Recoveries a. Financials: import/input Historical GL Data (Excel file) (Refer to page 196) b. Create Expense Codes (Refer to page 148) c. Create Expense Schedules and make necessary adjustments (Refer to page 149) d. Set up Expense Reimbursements in Rent Roll tab (Refer to page 143) 16. Import/enter YTD Recoveries Billed to Tenants a. Via Current Year Actuals b. Import/enter Recoveries Billed to Tenants (Refer to page 81) c. Copy/paste from.xls to Accounting Tab OR manually type in to View/Edit Totals Tab Note: this is a very important step for proper recoveries calculation; when Kardin ca lculates recoveries in a reforecast file, billed to date recoveries are deducted; if this step is missed, your recovery income will be overstated. 17. Set up User Defined Calculations (Management fees, etc.) (Refer to page 213) 18. Set up Payroll calculations (Refer to page 219) 19. View/print reports in Reports and Exports tab (Refer to page 228) 23

24 SECTION 1A IMPLEMENTATION STEPS Creating Current Year s Reforecast from Current Year Budget Creating Current Year s Reforecast from Current Year Budget 1. Open Current Budget File a. From main menu, Create Reforecast File (bottom right button) b. Create a file name with a.rf3 extension c. Close the budget file d. Open the new file in Kardin (file, open reforecast) 2. Obtain new data downloads from Accounting Department a. Year To Date general ledger data 3. Go to Current Year Actuals tab (Refer to page 84) a. Change number of months of actuals (Refer to page 85) b. Import Current Year Actuals (via Spreadsheet view/import) (Refer to page 86) c. Update/verify Recoveries Billed to Tenants (Refer to page 91). Note: this is a very important step for proper recoveries calculation; when Kardin calculates recoveries in a reforecast file, billed to date recoveries are deducted; if this step is missed, your recovery income will be overstated. 4. Update Expense Schedules to include the current year Reforecast file (Refer to page 149) 5. Update Input budget with remaining year reforecast amounts (Refer to page 201) 6. Audit Rent Roll to reflect actual activity Year To Date (Refer to page 118) a. Update expense reimbursements where necessary (Remember to change base year schedules for those tenants with a current year base year, i.e. if this is a 2015 reforecast file and you have tenants with 2015 base year, change their base year file from 2015 budget to 2015 reforecast.) (Refer to page 143) 7. Review/update User Defined Calculations (Management fees, etc.) as necessary (Refer to page 213) 8. Review/Update Payroll calculations as necessary (Refer to page 219) 9. View/print reports in Reports and Exports tab (Refer to page 228) Reconciling Prior Years CAM / Operating Expense Recoveries Note: This process is also administered via a reforecast file by uploading 12 months of actual GL data and updating 12 months of tenant pre billed CAM charges. Kardin will continue to recognize the data in a Reforecast environment, even though you know the data is 12 months of actuals from accounting. If you have an existing reforecast file, update it; otherwise create a new one from the prior year budget. Steps 5, 7 & 9 can be omitted when 12 months of actual GL data now populate the reforecast file. 24

25 SECTION 1A IMPLEMENTATION STEPS Reconciling Prior Year CAM / Operating Expense Recoveries Reconciling Prior Year CAM / Operating Expense Recoveries If you have been reforecasting the last year from time to time, you may update your most recent reforecast file, beginning with step 1.d.; otherwise you may open last year s budget file and proceed with creating a reforecast from that budget. 1. Open Last Year s Budget File a. From main menu, Create Reforecast File (bottom right button) b. Create a file name with a.rf3 extension c. Close the budget file d. Open the new file in Kardin (file, open reforecast) 2. Obtain 12 months of actual data downloads from Accounting Department 3. Via the Kardin Reforecast (*.rf3) file main menu, go to Current Year Actuals tab (Refer to page 84) a. Change number of months of actuals to 12 (Refer to page 85) b. Import 12 Months of GL Actual data (via Spreadsheet view/import) (Refer to page 86) c. Update/verify Recoveries Billed to Tenants (Refer to page 91). Note: this is a very important step for proper reconciliation calculation to determine each tenant s balance or credit due. 4. Update Expense Schedules to include the current year Reforecast file (Refer to page 149) Note: because you are working in a reforecast file, Kardin recognizes all the data as reforecast, even though it is 12 months of actual GL data. Your exercise here is to be sure t hat the file has the appropriate Current Expense Schedules for the reconciling calculation. In the Expense Schedules, you will need to verify/update all adjustments, gross ups, caps, etc. to reflect actual activity for the full year. 5. Audit Rent Roll to reflect actual activity for the full reconciling year (Refer to page 118) a. Update expense reimbursements where necessary (Remember to change base year schedules for those tenants with a current year base year, i.e. if you are reconciling 2015 operating expenses in a 2015 reforecast file and you have tenants with 2015 base year, change their base year file from 2015 budget to 2015 reforecast.) (Refer to page 143) 6. View/print reports / Recovery Tab. Audit and confirm all information in the Recovery Calculation report. Print final Tenant Statements and needed supporting schedules for tenant distribution (Refer to page 228) 25

26 Fiscal Year Budgeting / Calendar Year Recoveries SECTION 1A IMPLEMENTATION STEPS Fiscal Year Budgeting / Calendar Year Recoveries 1. Create your "fiscal" year budget (i.e. 7/1/15 6/30/16), with a name such as FY1216.cm3. 2. Compile everything (following the Budget Implementation Steps) except recovery calculation set up. 3. Make a backup file (with name CY16 to represent calendar year 2016) via Kardin/file backup or Windows Explorer. Close FY1216.cm3 file. 4. Open the CY16.cm3 file and change the budget start date to January of 2016, via Property Information. (see page 61) 5. In the CY16 file, you will need to do the following: a. Adjust the budget input to reflect January thru December 2016 (note all your FY entries, Month 1 thru 12 have now shifted from July as Month 1 to January as Month 1). b. Set up the recovery calculations (confirm your data set up by reviewing reports) (see page 149 and 228) c. When finalized, print out the recovery schedule reports. 6. Make a backup/copy of CY16.cm3 and call it CY16cm3 7. In the CY16.cm3 file, you will need to do the following: a. Adjust the budget input to reflect January thru December 2016 b. Confirm the recovery calculations c. When finalized, print out the recovery schedule reports. 8. Go back to the "fiscal(fy1216.cm3)" year budget file a. Set up "Fixed Recovery Pools" (i.e. CAM, TAX, INS, UTL) (see page 168) b. Via Rent Roll/Exp. Reimb./Fixed, (see page 143) i. Eff 7/1/16, CAM = $xxx ii. Eff 1/1/16, CAM = $yyy iii. Do the same for the remaining applicable pools NOTE: Now you will have a detailed fiscal year budget. You also have 2 calendar year budgets that you will provide CAM estimates and then creating a reforecast from these files, you can calculate your CAM reconciliation s. 26

27 SECTION 1A IMPLEMENTATION STEPS Creating a Multiple Year Budget (i.e. 5 year budget) Creating a Multiple Year Budget (i.e. 5 year budget) (Refer to Section 7, Page 251) 1. Complete Year 1 (i.e. 2016) of your property s budget 2. Via Windows Explorer (or Windows Program Manager File menu), locate year 1.cm3 file 3. Copy year 1.cm3 file (using the menu or Ctrl C and Ctrl V), creating 4 additional files (or however many additional year s you are needing to budget) 4. Rename the additional files (i.e. Year 2 = 2013.cm3; year 3 = 2014.cm3; year 4 = 2015.cm3; year 5 = 2016.cm3, etc.) 5. Open Kardin Budget System 6. Open Year 2.cm3 file 7. Via Property Information, change the beginning budget date to 1/1/2016. (Refer to page 63) 8. Via Leasing & Recoveries, link this file to Year 1.cm3 file (Refer to page 97) 9. Via Expense Schedules, add additional schedules for the current budget period (one for each expense code that exists) (Refer to page 143) 10. Via Rent Roll, apply Lease Assumptions for expiring and/or vacant spaces. (Refer to page 112) 11. Via Budget Input, update non calculating accounts (this file is a direct copy of year 1), OR, (Refer to page 201) 12. Via Percentage Increase, increase non calculating accounts by a percentage. (Refer to page 169) 13. View reports in Reports and Exports tab. Close File. (Refer to page 228) 14. Open each additional file and begin back at Step 7, changing the budget year to the applicable year 2, year 3, etc. (Note: in Step 8, link each additional year back to Year 1. 27

28 Creating A New Budget Multi Family Users SECTION 1A IMPLEMENTATION STEPS Creating A New Budget Multi Family Users 1. Order Kardin Budget System 2. Install Application (Refer to page 36) 3. Obtain Unlock from Kardin (Refer to page 43) 4. Obtain data downloads from Accounting Department a. Chart of Accounts (Kardin File) b. Units (Excel file) c. Current year GL Budget data 5. Create a new budget file in Kardin (name suggestions = Prop09.cm3) (Refer to page 63) 6. Set up Property Information. (Refer to page 63) 7. Import Chart of Accounts (Refer to page 74) 8. Via Leasing and Assumptions, Import Unit Information (Refer to page 179) 9. Set up Market Rent Increases (Refer to page 183) 10. Review Rent Roll and apply Market Rent Increases for each Unit Type (Refer to page 183) 11. Set up Actual Rent (note: these are actual per unit rents either % of average market rents or per unit amounts). This is a very important step for proper Loss to Lease calculation. (Refer to page 186) 12. Set up Turnover Costs in rent roll (Refer to page 191) 13. Create Occupancy Assumptions, Concessions/Delinquencies (Refer to page 189) 28

29 SECTION 1A IMPLEMENTATION STEPS Creating A New Budget Multi Family Users 14. Set up Economic Occupancy Numerator and Denominator as per owner instructions. (Refer to page 158) 15. Financials: import prior year s actual GL data and/or current year s budget GL data (Refer to page 196) 16. Budget Input (Refer to page 201) a. Enter assumption amounts i. Expenses ii. Non calculated income iii. Non calculated capital 17. Set up User Defined Calculations (Management fees, etc.) (Refer to page 213) 18. Set up Payroll calculations (Refer to page 219) 19. View/print reports (Refer to page 228) 29

30 SECTION 1A IMPLEMENTATION STEPS Creating Current Year s Reforecast from Current Year s Budget Multi Family Users Creating Current Year s Reforecast from Current Year s Budget Multi Family Users 1. From Current Budget File a. From main menu, Create Reforecast File (bottom right button) b. Create a file name with a.rf3 extension c. Close the budget file d. Open the reforecast file in Kardin (file, open reforecast) 2. Obtain new data downloads from Accounting Department a. Unit Information (Excel file) b. YTD GL actual monthly amounts (Excel file). 3. Go to Current Year Actuals tab (Refer to page 84) a. Change Number of Months of Actuals b. Import Current Year YTD Actuals 4. Import Unit Information via Leasing/Assumptions. (Refer to page 179) 5. Update Market Rent Increases to reflect current activity (Refer to page 183) 6. Update Actual Rent to reflect current activity. This is a very important step for proper Loss to Lease calculation. (Refer to page 186) 7. Review/update Rent Roll (Refer to page 184) and update Turnover Costs (Refer to page 191) to reflect the new budget period. 8. Update Budget Input (YTD actuals are not changeable; only update reforecast columns). Manually update the entries for all non calculating items. (Refer to page 201) a. Expenses b. Non calculated income c. Non calculated capital 9. Review/update User Defined Calculations (Management fees, etc.) (Refer to page 213) 10. Update Payroll calculations (Refer to page 219) 11. View/print reports in Reports and Exports tab (Refer to page 228) 30

31 Creating A New Reforecast Multi Family Users SECTION 1A IMPLEMENTATION STEPS Creating A New Reforecast Multi Family Users 1. Order Kardin Budget System 2. Install Application (Refer to page 37) 3. Obtain License Unlock from Kardin (Refer to page 43) 4. Obtain data downloads from Accounting Department a. Chart of Accounts (Kardin File) b. Units (Excel file) c. Current year GL Budget data d. Current Year to Date actual data 5. Create a new reforecast file in Kardin 6. Set up Property Information. (Refer to page 63) 7. Import Chart of Accounts (Refer to page 74) 8. Via Leasing and Assumptions, Import Unit Information (Refer to page 179) 9. Set up Market Rent Increases (Refer to page 183) 10. Review Rent Roll and apply Market Rent Increases for each Unit Type (Refer to page 183) 11. Set up Actual Rent (note: these are actual per unit rents either % of average market rents or per unit amounts) This is a very important step for proper Loss to Lease calculation. (Refer to page 186) 12. Set up Turnover Costs in rent roll (Refer to page 191) 13. Create Occupancy Assumptions, Concessions/Delinquencies (Refer to page 189) 31

32 SECTION 1A IMPLEMENTATION STEPS Creating A New Reforecast Multi Family Users 14. Set up Economic Occupancy Numerator and Denominator as per owner instructions. (Refer to page 158) 15. Financials: Import prior year s actual GL data if necessary (Refer to page 196) 16. From Main Menu, go to Current Year Actuals tab (Refer to page 84) a. Import Current Year Budget b. Change Number of Months of Actuals c. Import Current Year YTD Actuals 17. Budget Input (Refer to page 201) a. Import from Spreadsheet 12 months current year budget (you need to do this in addition to #16a above) NOTE: you will need to add 2 blank columns to the xls file of budget data (insert 2 columns between Chart ID and M1); copy, paste, validate, upload/update. b. Update remaining year reforecast amounts i. Expenses ii. Non calculated income iii. Non calculated capital 18. Set up User Defined Calculations (Management fees, etc.) (Refer to page 213) 19. Set up Payroll calculations (Refer to page 219) 20. View/print reports in Reports and Export tab (Refer to page 228) 21. When the Reforecast file is complete, you may create next year s budget. 32

33 SECTION 1A IMPLEMENTATION STEPS Creating Next Year s Budget from Current Year Reforecast Multi Family Users Creating Next Year s Budget from Current Year Reforecast Multi Family Users 1. Open Current Reforecast File a. From main menu, Create Budget File (bottom right button) b. Create a file name with a.cm3 extension c. You will be asked: The budget file that is being created will have duplicate information in accounts with both Actuals, and linked data. Do you want the Actuals for these accounts to be automatically deleted in the new file? Yes/No Yes answering yes will automatically delete the YTD Actuals that were imported into t he reforecast file. No answering no will not delete the YTD Actuals that were imported into the reforec ast file. This will cause duplication in the GL accounts that are linking calculations within the budget file this is ok, you can simply delete these duplicate records directly in Budget Input for the applicable GL accounts in the budget file. Note: most users will want to answer yes. d. Close the reforecast file e. Open the new file in Kardin (file, open budget) 2. Obtain new data downloads from Accounting Department a. Unit Information (Excel file) b. YTD GL actual monthly amounts (Excel file). 3. Go to Current Year Actuals (Refer to page 84) a. Change Number of Months of Actuals b. Import Current Year YTD Actuals 4. Import Unit Information via Leasing/Assumptions. (Refer to page 179) 5. Update Market Rent Increases to reflect current activity (Refer to page 183) 6. Update Actual Rent to reflect current activity. This is a very important step for proper Loss to Lease calculation. (Refer to page 186) 7. Review/update Rent Roll (Refer to page 184) and update Turnover Costs (Refer to page 191) to reflect the new budget period. 33

34 SECTION 1A IMPLEMENTATION STEPS Creating Next Year s Budget from Current Year Reforecast Multi Family Users 8. Update Budget Input (YTD actuals are not changeable; only update reforecast columns). Manually update the entries for all non calculating items. (Refer to page 201) a. Expenses b. Non calculated income c. Non calculated capital 9. Review/update User Defined Calculations (Management fees, etc.) (Refer to page 213) 10. Update Payroll calculations (Refer to page 219) 11. View/print reports in Reports and Export tab (Refer to page 228) 34

35 SECTION 1A IMPLEMENTATION STEPS Importing updated Current/Prior Reforecast numbers into Next Year s Budget/Reforecast File Importing updated Current/Prior Reforecast numbers into the Next Year s Budget/Reforecast File. There are instances when you have completed the current year reforecast (*.rf3) file, created the next year s budget (*.cm3) file and done various amounts of work/entries into the next year s budget; and then needed to go back to the current year reforecast file to make additional amendments. The big question: HOW IS THE UPDATED CY REFORECAST DATA UPDATED IN THE NY BUDGET FILE FOR COMPARISON REPORTING??? The following instructions will lead you thru this process: 1. Once you have completed your newest updates to your Current Year Reforecast file (*.rf3), export the updated data to Excel: a. Go to Reports/Export b. Export Tab (Refer to page 228) c. Via Budget Data Export Wizard The default selections, as per below, will work perfectly (NOTE: in a multi building file, you will need to select separate for cost centers). Click on Create File. d. Create a name, such as 2015rf3.xls ; click OK (making sure you know which folder you are saving the spreadsheet to). e. When creation is complete, close the *.rf3 file. 2. Open the Budget file (*.cm3) and import the updated reforecast data into Financials: a. Go to Leasing and Recoveries b. Go to Financials c. Select Edit for Current Year Reforecast (Refer to page 196) d. You will get the following message. Click Yes. e. Now, open the *.xls file as created from the current year Reforecast.rf3 file (refer to #1) i. You will need to delete some unnecessary columns, leaving the following: PropID (or PCID for multi building files), ChartID, M1 thru M12. ii. Highlight the data under columns (PropID/PCID, ChartID, M1, thru M12) and copy. Best not to highlight/copy the headers. iii. Back in the Kardin File, click on the Paste button. iv. Validate, Adjust Signs (if needed), and Upload Actuals Your current year reforecast data is now updated in your next year s budget file you will do this same process each time you make adjustments to the *.rf3 file. There are instances when you have completed the current year reforecast (*.rf3), created the next year s budget (*.cm3) file and done various amounts of work/entries into the next year s budget; then need to return to the current year reforecast file for additional amendments. HOW IS THE UPDATED CY REFORECAST DATA UPDATED IN THE NY BUDGET FILE FOR COMPARISON REPORTING??? 35

36 Reporting With ALTERNATE CHART OF ACCOUNTS SECTION 1A IMPLEMENTATION STEPS Reporting With Alternate Chart of Accounts The Alternate Chart of Accounts feature in the Kardin Budget System allows you to view your Budget and Reforecast Reports and Data in a different Chart of Accounts. You can also include your Budget and Reforecast files into a Consolidation or Analysis file, which uses a different Master Chart of Accounts. For additional details, refer to processes on page Complete a Budget (*.cm3) or Reforecast (*.rf3) file. 2. Set up an Alternate Chart of Accounts, mapping your Master COA to an Alternate (such as the Ownership Chart). (Refer to page 77) 3. Go to Reports/Export and select Export Tab. a. Select Budget Data Export Wizard (refer to page 215) b. Include ALL appropriate selections with Alternate selected for COA c. Click Create File d. Create an.xls file name and click ok. 4. When file creation is complete, close down the Kardin file. 5. Via Kardin, create a new budget (*.cm3) or reforecast (*.rf3) file. 6. Set up Property Information, including RSF total. (Refer to page 63) 7. Set up/import the Chart of Accounts. This Chart set up needs to reflect the Alternate Chart of Account. You will need to set up new categories and types to reflect the Alternate Chart. If this has already been done in another Kardin file, you can utilize the Import from Kardin File feature in Chart of Accounts. (Refer to page 74) 8. Open the.xls file as created in 4 above. a. First, delete all un necessary columns to have the following remaining/required columns: PCID; ChartID; 2Blank Columns; M1 through M12. b. Copy data only (no headers) to clipboard. 9. In Kardin, via Budget Input tab, a. select Import Data from Spreadsheet, (refer to page 201) b. Click on the Paste button in Budget Input c. If you are asked whether you want to paste your data according to Tab Order, press Yes d. Validate, Adjust Signs, Upload Accounts 10. Go to Reports and Export in this Kardin file. Note: only budget reports will be available. There is no leasing data nor calculations set up in this file. 36

37 SECTION 2 GETTING STARTED SECTION 2 GETTING STARTED Installation Prior to downloading/saving files from the web, we recommend you create a folder such as c:/webdownload. Use this folder to store files downloaded from the web. Never download a Kardin *.exe file to your c:/kardin folder. VIEW WEBINARS 1b AND 1d Installation (download from website: You can download the application (*.exe file) and sample budget files from our web site. Prior to downloading we recommend you create a folder that you will recognize later and save the download file in this folder. Our current products run on all 64 bit versions of Windows, as well as Terminal Server and Citrix environments. The budget files that Kardin creates can be shared between individual users. 1 Go to the Kardin s website at 2 On the Kardin website, go to "Kardin Budget System/Customer Support/Downloads". Click on the desired Version Download and enter the required Password provided by Kardin. (Kardin may notify you if an update to the software is available. You are required to be current on your annual maintenance fee in order to be eligible for this notification.) 3 Select the Product you wish to download. Product choices include the Kardin Budget System and Kardin Consolidation System. Additional downloads include Sample Files and Release Notes. 4 As stated above, prior to downloading, we recommend you create a folder that you will recognize later and save the download file into this folder. The file name will default to the application name and version that you have selected to download. 5 Please note that this save/copy process takes some time depending on the speed of your Internet connection. Also, note that you are downloading the selected program/application from the website and will be installing it to your hard drive after the download process is complete. You will a couple of see a messages when the download process is complete. 6 Locate the file (Budget_Installer_35xx.exe) via My Computer to begin the INSTALL process. V. 35.xx Updated January

38 SECTION 2 GETTING STARTED Installation 7 Double click on the install (*.exe) file and select Run at the bottom of your screen. Choose "Save/Save As" to download the Installation file into a designated download folder. 8 Follow the prompts from there. Below are screenshots for reference. 9 The Kardin Budget System Setup screen will appear. Select Next. 10 The license agreement screen will pop up. You must accept the terms before selecting Next. V. 35.xx Updated January

39 11 The option to select the install location will pop up. Choose "Next". SECTION 2 GETTING STARTED Installation 12 The setup wizard screen will pop up. Select Install. 13 The status and then system configuration screens will appear. V. 35.xx Updated January

40 SECTION 2 GETTING STARTED Installation 14 First the license and then system installation will complete. Choose Ok for both. 15 Go the Start, Programs and launch the application. V. 35.xx Updated January

41 SECTION 2 GETTING STARTED Creating a Desktop Icon & Sample Data Download Creating a Desktop Icon Depending on the version of Windows from which your PC is operating, the installation program should create an icon for the application you have installed. Should this not happen automatically, please follow these steps to create an icon on your desktop: A. Click on Start (bottom left corner of your Windows screen) B. Choose Programs C. Click on Kardin Systems D. In right menu box, click to highlight the module you d like to create icon E. Right click your mouse F. Choose create shortcut G. Now you will see a duplicate at the end of your list with (2) at end of the name H. Click and drag the duplicate that you created to the desktop I. You should now have an icon on your desktop for quick access to your Kardin application. Be sure to test by double clicking on the icon from the desktop. You can rename the icon, e.g. to remove the (2), by right clicking and selecting rename. Sample Data Download You can download samples Kardin files directly to your computer's C drive. A. Once you are logged into the Internet, go to Kardin s web site: B. Go to the Customer Support/Downloads/Version XX Donwloads page. C. Click on Sample Files in the upper right hand corner of the screen. Click on and Open the Sample zip folder. The folder contains Budget (*.cm3) and Reforecast (*.rf3) files for Multi Bldg Office or Industrial (MB), Single Bldg Office or Industrial (SB), Single Bldg Retail (RTL), and Multi Family (MF). D. Copy/Extract the desired file(s) to your own file directory. Create a folder on your computer that you will recognize later and save the file(s) into this folder (we recommend a budget folder). Please note that this copy process may take some time depending on the speed of your Internet connection. Tip: To open a Kardin file, open the Kardin application first, then chose "File/Open Budget" to open a Kardin Budget file with a *.cm3 file extension, or "File/Open Reforecast" to open a Kardin Reforecast file with a *.rf3 file extension. V. 35.xx Updated January

42 Obtaining an Unlock Code SECTION 2 GETTING STARTED Obtaining an Unlock Code Press the "Copy" button in the License / License Information screen to copy the "User Code". Paste the "User Code" into an addressed to mail@kardin.com to request an "Unlock Code". Once received, copy the "Unlock Code" from the Kardin and use the "Paste" button to apply it to the "Unlock Code" field below. Click "UNLOCK" and follow the prompts to complete unlock process. Note for Temporary License Users: The license screen will appear each time the Kardin application is opened; as long as time remains, you may close the screen and continue working. Detailed Unlock Instructions In order to use any Kardin application, you need to first obtain an Unlock Code from Kardin Systems. Open your Kardin application via your Kardin desktop icon or the Start/Programs menu on your PC. Click on "License/License Information" in the top left corner of the application screen. Note, software upgrades for existing Kardin installations typically do not require a new unlock. A. To obtain an Unlock Code, you must provide Kardin Systems with the User Code that appears on the Kardin System Product License/License Information screen. E mail the User Code to mail@kardin.com. Either use the "Copy" button or highlight the User Code and use Ctrl C on your keyboard to copy it. When you receive your Unlock Code from Kardin via e mail, you can copy the code from the e mail and paste it back into your unlock code box by either using the Paste button or Ctrl V (paste) command within the License Information screen. B. After pasting the Unlock Code, click the "UNLOCK" button. Please read the Software User License Agreement and if you agree, click I Agree. V. 35.xx Updated January

43 SECTION 2 GETTING STARTED Obtaining an Unlock Code C. Depending on your status, you will be given an Unlock Code that will either grant you a permanent unlock (for paid licenses) or temporary unlock (pending or evaluation license). With a temporary unlock, the License Information screen will identify the number of days and the status. With a permanent unlock, the options status will depend upon your purchase request. If your company s policy is a locked chart of accounts, the COA Lock will be flagged yes. If you purchased Multi building option, this box will be flagged yes, etc. NOTE for TEMPORARY LICENSE Users: The License Information screen will appear each time the Kardin application is opened; as long as time remains, you may close the screen and continue working. When the Status message indicates that the license is not authorized, you will need to request a new unlock code. NOTE: An unlock code will be issued based on your license status or evaluation agreement. After ordering the Kardin software, Kardin will provide a temporary license unlock upon your request until receipt of payment. During this time, you will have access to Kardin but will not be able to print or export any budget data until payment is received in full. If we have received payment at the time you request an unlock, you can receive a permanent unlock immediately. If you were given a temporary unlock, you will need to re submit the most current User Code to request a permanent unlock after payment is received by Kardin Systems. The permanent unlock represents your license for the software. Sample screenshot of a permanently unlocked Kardin application: V. 35.xx Updated January

44 License Management SECTION 2 GETTING STARTED License Management / Deleting a License Once you have received your permanent unlock, you are considered a Licensed User of the Kardin Systems software. The license has been registered to your name. On behalf of your company, it is your responsibility to properly manage the license as follows: A. If you should leave the property or company where this license is held, please notify Kardin Customer Care of the personnel change (e mail to mail@kardin.com). B. If your IT department is going to upgrade your operating system, often times they will do a complete back up of everything from your hard drive and restructure the whole PC. To avoid loss of your license, please contact Kardin Systems and request instructions for performing a license transfer. You will need to delete your Kardin license via the License Information screen (see Delete License procedure next page) and have Kardin assist with the transfer at the then prevailing fee, if any. Save the delete code for submission to Kardin later with a request for a new unlock. When your PC is re structured, you will need to reinstall Kardin and submit the License Transfer form found at Customer Support/Training & Support Resources. The form will require both the Deletion Code from the original installation, as well as the new User Code from the new installation. DELETING A LICENSE A. From the License Information Screen, click on Delete License button, type in the password "upgrade" and click "OK". upgrade B. Copy (Ctrl C) the resulting Deletion Code from the next pop up box and e mail it to mail@kardin.com. Note: You will receive a code in this box; highlight/copy (Ctrl, C) the code; the User Code to Kardin at V. 35.xx Updated January

45 SECTION 2 GETTING STARTED License Management / Deleting a License IMPORTANT NOTE: License Deletion is typically required when transferring a license to a new user/computer, reimaging a computer, or transfer a license to warehouse for future assignment. Not providing a deletion code could result in permanent license loss which might require purchase of a new software license at prevailing product cost. V. 35.xx Updated January

46 SECTION 2 GETTING STARTED Software Evaluation Copy / Company Name Software Evaluation Copy Change to Company Name The "Software Evaluation Copy" script appears on the Kardin application main screen, as well as on top of each report generated with the Kardin software. This field is locked/cannot be overwritten when working with a temporary license. However, once a user receives a permanent unlock, this script can be changed as and whenever needed, e.g.: change to the user's Company or Portfolio Name. To change the "Software Evaluation Script", open the Kardin application, click on Licenses/Company Name and type in the desired "Company Name". NOTE: Each time a user installs/downloads an upgraded version of Kardin, the company name will default back to Software Evaluation Copy, but can be changed as outline above. V. 35.xx Updated January

47 Program Options SECTION 2 GETTING STARTED Program Options Multiple software Options can be accessed via the Kardin application main screen, including Enabling or Disabling Screen Resizing (system defaults to full screen) and whether or not to Check for possible Software Upgrades (prompting pop up messages for available software upgrades each time a user opens the application). A more detailed submenu can be found under Software Preferences: Software Preferences allows a user to change some of the reporting/output features, such as: 1. Preferred Abbreviation for Rentable Area System defaults to RSF. 2. Applicable Currency Symbol System default is "$" 3. Enabling or Disabling the "Clear All" button, which can be found in the "Budget Input" section within any Budget or Reforecast file. The Clear All button gives a user the ability to delete all manual/non calculating GL entries for the entire current budget period all at once, including detailed line item descriptions. System default for this option is "No" to help prevent accidental loss of budget detail. 4. Use a Local Working File for faster Calculations defaults to "Yes" (recommended), so that Kardin will place a copy of your current working file alongside your desktop installation (vs. server location) which helps support optimal calculation speed. V. 35.xx Updated January

48 SECTION 2 GETTING STARTED Program Options 5. Automatic File Backup defaults to "Yes" (recommended). Kardin can create up to 4 backup copies of a user's working file in form of compressed zip folders. These backup files can be extracted from the zip folder and used as new working files in case the user accidentally deletes or otherwise loses a copy of his/her Master Kardin file. V. 35.xx Updated January

49 File Management SECTION 2 GETTING STARTED File Management Starting a New File A. From the File Menu, select New Budget if starting with a budget or New Reforecast if starting with a reforecast. B. The system will prompt you to enter a File Name and also choose the desired file directory. Budget files have a *.cm3 file extension and Reforecast files a *.rf3 file extension. Choose "Save" to complete the new file creation and start populating the new file with property data. Note: Do not choose "New" when trying to open an existing Kardin file (see next paragraph). Choosing "New" will result in overwriting an already populated Kardin file with a brand new/blank Kardin file. Opening an Existing File A. From the File Menu, select Open Budget to open an existing Budget (*.cm3 file) or Open Reforecast to open an existing Reforecast (*.rf3 file). B. Navigate to the directory where your file is saved and choose "Open". Converting File to 32 bit Kardin Budget and Reforecast files with *.cmm and *.rfc file extensions will need to be converted to 32 bit before they can be opened in a later or current version. From the File Menu, select Convert File to 32 bit. Navigate to the location where the file is saved and click Open. Entering a new file name or location is optional. The final message box will confirm completion. Click Yes to open the newly converted file or No to return to the Kardin main screen. NOTE: Kardin will retain a copy of the original file and also create a copy of the file in the newly converted file format (*.cm3 for budget and *.rf3 for reforecast). Compacting a File This feature allows you to reduce the size of a Kardin file. From File Menu, select Compact Kardin File, navigate to the directory where the file is saved, click on the target file, and then click Open. The final message box will indicate completion. Click OK to close. Backing up a File A. When working in a Kardin file, choose "File" in the upper left and then select "Backup File " B. Select the folder where you want to save the file and type in the name of the backup. (Note: you cannot backup the file with the same name in the same location.) Closing a File From the "File" Menu choose "Close File". Changes made to your file are saved automatically. Use the "Close" button in the lower right of each sub menu to get to the file main screen. V. 35.xx Updated January

50 SECTION 2 GETTING STARTED File Management Closing the Application Once you have closed the file, from the "File" Menu, select Exit. Clicking the x in the top right hand corner of the Kardin application has the potential to corrupt the file or cause delays. V. 35.xx Updated January

51 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions Kardin Systems Application on Terminal Server Instructions Following are three scenarios for setting up Kardin Version 35.xx software on a Terminal Server: 1. New installation on a server that does not have any Kardin software installed. 2. Upgrade to a server that already has Version 35.xx software. 3. Upgrade to a server that has Legacy (Version 33.xx or lower) software. Scenario 1: First, download and install the Kardin product into the default directory. Instructions for this process can be found on our website at After download is complete, you should have a clean installation directory and a new Kardin Budget icon, as shown in the following screenshot: V. 35.xx Updated January

52 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions Next, create a folder to contain the individual copies of the Kardin software for each user. Unlike most other application, Kardin requires a unique copy of the program for each Licensed User. In the example below, we have created a new folder named KardinUsers, and added a sub folder for each of our four test users. Note: this assumes you have more than one user running the program on the server. If you only had one user, you would not need to create additional copies of the program. The folder containing the user copies of the application does not need to be on the System drive of the Terminal Server; however, it must be on a physical drive of the server. For best performance, it is also recommended that the user s Kardin files are also stored on the server running the Kardin program. Storing the data files on a different server than the application can reduce performance depending on your network bandwidth, and it is NEVER advised to access the Kardin data files on a server that is remote from the software installation. After storing the user copies of the application and creating the folders, you will need to copy certain files from the default installation folder to each user s folder. Following is a list of files needed for the Kardin Budget System: budget.tm3 cks.exe Crp32DLL.DLL crp32002.ngn Icon.ico karcmm.kdb KardinBudget.mde Karkbs.kdb SetupEx.exe V. 35.xx Updated January

53 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions The following screenshot shows the files copied into our demo user folder Fred : Because each user will have their own shortcut, you will need to remove the default shortcuts created on the common Desktop and in the Start Menu. In the following screenshot, we have moved the common shortcut into Fred s folder and are about to delete the shortcut in the Start Menu. V. 35.xx Updated January

54 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions Each user will need their own shortcut that points to their copy of the application. Here you can see the default properties of Fred s shortcut: V. 35.xx Updated January

55 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions This will need to be changed to point to the correct location. This is the original contents of the Target: "C:\Program Files (x86)\common Files\Sagekey Software\StartAccess3_2007.exe" /profile "Kardin Budget System" /wrkgrp "C:\Kardin\System.mdw" "C:\Kardin\KardinBudget.mde" /runtime /excl The only part that needs to be edited is the path to the KardinBudget.mde file. After completing this step, the application can be launched. It may take a moment to start the first time if the Microsoft Access 2007 Runtime needs to configure itself. The next screenshot shows the License Information screen. Notice that the Path is pointing to a file in Fred s directory. Also note the User Code, which will need to be send to Kardin in order to activate the program. You can select the User Code and press Ctrl C to copy it to the clipboard, and then paste it into an or Excel file that you send to support@kardin.com with the User information. V. 35.xx Updated January

56 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions Confirmed that the modified shortcut is working properly, then make a copy for each Licensed user on the server. Next, edit their Targets to point to the correct location for that user. These shortcuts can be placed on the individual user s Desktop or Start Menu program group. For Citrix server environments, you will need to setup the User Folders as described above; however, you may need to modify a common script used by all users. In this case, it may be helpful to use the User s names for their Kardin folders, and then use the %USERNAME% statement in your script. V. 35.xx Updated January

57 SECTION 2 GETTING STARTED Kardin Systems Application on Terminal Server Instructions Scenario 2: If you have already gone through the steps above, and need to update your server with an Update to a Kardin product, do the following: Install the software update. It should default to the same location as the previous installation. After the update is complete, simply copy the updated files (listed above), and place them in each user s folder. You will need to do this when they are not running the application. It is important to NOT copy all of the files in the default installation folder. Depending on your settings, you may copy the License Control files and accidentally destroy the individual user licenses on your server. ONLY copy the files listed on Page 2. Don t be surprised if the upgrade says Software Evaluation Copy. This is the default setting and can be changed from the License/Company Name menu for any Activated Kardin product. Scenario 3: If you have a server with the Legacy Kardin program running on it, you will need to change your procedure slightly. After you install the Version 35.x Kardin program, you will need to copy the same set of files into each user s folder. The old shortcuts will no longer work with the new version. You should remove the Legacy shortcuts, and use the procedure outlined above to create new shortcuts for each user. Once you have done that and you or the user launch the new version, it should convert any existing Kardin License Activation and apply it to the upgrade. V. 35.xx Updated January

58 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Overview Overview The file main menu in the Kardin Budget System consists of twelve standard buttons, as well as an additional button for users with a 10Yr CashFlow Valuation add on. When starting a new file, all but the first button will be disabled. As you complete each step of the budget process, the next button(s) will become available. V. 35.xx Updated January

59 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Overview Setup Property Info / Budget Year allows you to enter property and budget year information. Chart of Accounts allows you to set up all the accounts and categories that you will use for the budget input and all the reports, provided your software unlock is for an Unlocked COA. COA Links to Budget allows you to link calculating items, such as rental income, recoveries, etc. to a GL account in your Chart of Accounts. Only items with a "Need Link" flagged will require an assignment. The system will prompt you when an assignment needs to be made. Current Year Actuals lets you import YTD actual general ledger data into your Kardin Reforecast (.rf3) file. This tab will be grayed out in all budget type files. You must have a reforecast file open in order for this button to be available. Data Leasing Leasing and Recoveries is a feature for commercial property budgeting and reforecasting. It allows you to import existing tenant rental information that is downloaded from accounting (manual entry also possible), make leasing assumptions on vacancies and expirations, and setup recovery calculations, porter s wage, CPI and retail expense pools, etc. Leasing and Assumptions is a feature for multi family budgeting and reforecasting. It allows you to import existing units and market rent information that can be downloaded from accounting (manual entry also possible), project the income stream of the project beginning with Gross Potential Rent, then adjusting Loss to Lease, Vacancy and Employee/Model Unit Rent. (Note: Building Type under Property Info/Budget Year must be set to (Residential) Multi Family in order for Leasing and Assumptions button to be displayed). Data Other Budget Input lets you enter projected income and expense items. Percentage Increase allows you to increase/decrease existing budget values by various percentage amounts. V. 35.xx Updated January

60 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Overview User Defined Calculations is used to setup dynamic calculations for items that are tied directly to selected accounts or occupancy level such as management fees, asset management fees, sales tax, bad debt loss, janitorial expense, utility usage expense, etc. Payroll allows you to set up payroll and benefits. Amortization Schedules accommodates input of loan information, bring in historical capital expenditures or expenses that are still being amortized, and also select Capital Expenditures in the current budget that you will want to amortize. 10 Year Valuation Setup is a software add on feature that allows you to extend a budget or reforecast in order to calculate building values as well as produce a detailed multi year capital plan. This button will be grayed out for all user without the software add on package. Output When entering property data, use the Reports and Export button to update all system calculations. Pop up messages will prompt you to complete any items that are required to complete calculation. Completed calculations will let you access the many Kardin reports and also export data in various formats, including xls export of GL data for upload into your accounting system. The Create Reforecast File button is available in all budget type files and lets you roll all budget information forward into the next reforecast period. The Create Budget File button is available in all reforecast type files and allows you to roll your reforecast data forward into the upcoming budget period. V. 35.xx Updated January

61 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Overview Options File Preferences lets you choose from several file calculation methods. Note: The Occupancy Calculation and GAAP Adjustment Methods do not apply to Multi Family files. A. From the File Main Menu, choose Options, File Preferences. B. Occupancy Calculation Method: If you would like your average occupancy square footages to be prorated for leases that end mid month, select method Pro Rated (# of occupied days / # of days in month X suite SF). 1. By selecting method Month End, Kardin will recognize a suite as occupied only in months that it is occupied on the last day of that month. If a lease ends mid month, it will show as 0 RSF for that month, but, if a lease begins midmonth, it will show as occupied for the full month. When GAAP Adj GL Account is set up as Income, the GAAP Adj Method should be Positive. When GAAP Adj GL Account is set up as Exp/Adj to NI, the GAAP 2. Each file will be set to the default pro rated setting. Should your property require the month end setting, select this method in each file. V. 35.xx Updated January

62 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Overview C. GAAP Adjustment Method: Allows you to select positive or negative GAAP adjustment calculation. GAAP (General Accepted Accounting Principal) refers to budgeting average or straight lined rents. Kardin will calculate the average rents from the Kardin Rent Roll and automatically adjust rental revenue. If your property does not report straight lined average rents as per GAAP, this selection is not applicable. The selection method of positive or negative is dependent on setup of your file s Chart of Accounts. If the GAAP Adj GL Account is under Income, your GAAP Adj Method selection should be Positive. If the GAAP Adj GL Account is under Exp/Adjustment to Net Income, your GAAP Adj Method selection should be Negative. If the set up for GAAP adjustment is in conflict with the COA setup, Kardin will generate a warning message such as the following: You can choose to ignore the message by clicking OK, or Cancel and change the file preference. D. Analysis Report Method: Allows you to choose how you would like to see variance reports. The Good/Bad selection will provide a negative variance when actual expenses are greater than budget expenses and positive variance when actual revenue is greater than budget revenue. The Col 2 Col 1 selection simply subtracts Column 1 from Column 2 to get the variance (positive/negative). E. Calculate admin fee for Excluded accounts in Retail Recoveries: Defaults to calculate admin fee on all excluded accounts in retail recovery expense pools. This means that when an account is excluded from the pool and an admin fee is linked to the account, a fee will calculate based on the % times the expense. This option allows you to select Do NOT Calculate admin fee that is linked to an account that is also excluded from the expense pool. V. 35.xx Updated January

63 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Property Information / Budget Year Property Information / Budget Year A. Enter a Property ID. We recommend that you enter an ID that matches the Entity ID in your accounting system to support upload of final Kardin budget/reforecast data into your accounting system. For Multi Bldg files (projects with multiple entities), this field would represent a project or consolidated ID number. Entering a Property ID is REQUIRED/cannot be left blank. B. Enter the name of your project or building under Property Name. This is also a REQUIRED field. If you are budgeting for multiple years, it is helpful to add the budget year at the end of the name (Property Name + Year). See Multi Year Budgeting in Section 7 of this User Manual. C. Enter a Budget Start Date REQUIRED. The Budget End Date is automatically populated to occur 12 months after the Budget Start Date. If you are budgeting for multiple years, you can make copies of the most current budget file and then simply enter a new start date in each file copy. D. The Building Type will default to single building. If you are budgeting for a multiple building project, select multi building by clicking on the pull down menu. If you are budgeting for a multi family project, select multi family. V. 35.xx Updated January

64 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Property Information / Budget Year E. F. Budget Type is determined during initial file creation. Budget will be selected in a *.cm3 file and reforecast will be selected in a *.rf3 file. Selection cannot be manually changed. G. The Cost Center table will appear when choosing the Multi Bldg Type setup option. Enter the Cost Center ID and Name, as illustrated in the screenshot below. The Cost Center ID should match the Bldg/Entity ID from your accounting system. This Cost Center ID will be important when importing Suites data and Financials later in the file. H. The Building Rentable Square Footage (RSF) will dynamically calculating after entering/ uploading the Suites information in the Leasing section. This value is equal the average annual total of all suites included in the Building RSF count. It is converted to $/SF values in several reports. In Multi Bldg files, the RSF is broken out by Cost Center. I. If the building type selected is multi family, you will see an entry field for Number of Units. This will also automatically update when you enter/import unit information. If you are not using the unit import feature, you can manually enter the number of units here. J. Both Market Value and Cash Value are optional and are used for reporting Yield Calculations. Market Value is also one of the calculation options under User Defined Calculations, where a user can setup a number of custom calculation options. In a multibuilding type file, the Property Value is entered for each cost center. K. Beginning Cash Balance is another optional field. This value is included in Kardin's Cash Balance Report. In a multi building type file, the Beginning Cash Balance is entered for each cost center. The Cash Flow report is mainly intended for forecasting. A reforecast file will V. 35.xx Updated January

65 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Property Information / Budget Year L. not track monthly cash flow in the actual periods, only the remaining reforecast period. In a reforecast file, adjust the Beginning Cash Balance to reflect the cash on the last day of the YTD Actual period (i.e. with 6 months of actuals in a calendar year file, enter the cash balance at 6/30) so that Kardin can calculate the monthly cash flow for the remaining reforecast months. M. The Allocations button displays at the bottom of the Property Information screen when the multi bldg file type is selected. It is used to create custom calculation templates for income and expense items, such as a landscape contract or building improvements that are shared between separate entities. The system will automatically create allocations for each cost center equal to 100%. These are required and cannot be changed/deleted (see next page). An unlimited amount of additional allocation tables can be added by clicking New, providing an Allocation Name, selecting the participating Buildings/Cost Centers from the table dropdown, and entering a % value for each Cost Center selection. The sum for all participating cost centers must equal 100%. Using Allocations helps avoid having to manually calculate shared income and expense items on the side. V. 35.xx Updated January

66 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Property Information / Budget Year N. The Instructions button at the bottom of the screen can be found in nearly every setup screen within the Kardin application. It contains setup instructions specific to the screen in which a user is currently working. O. Use the Close button at the bottom of a setup screen or window to navigate back to the previous page and file main screen. V. 35.xx Updated January

67 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup Chart of Accounts Setup Creating a Chart of Accounts (COA) in Kardin is typically an administrative function. If you are producing a file due to ownership or company requirements, chances are this process has already been done. Please inquire with the administrator of your property s budget process and move on to the instructions for Importing an existing COA from another Kardin file/coa Import later in this section. If you are a Portfolio Manager or Asset Manager who will want to consolidate the budget files of various properties later, you are advised to setup and maintain a separate Kardin file containing your Kardin Master COA only. This file can be send to individual users for upload of the designated Kardin Master COA into a brand new file, as well as to update an outdated version of the same COA in an existing Kardin file. This way, you are providing all the users a standardized COA, which will help streamline the consolidation and analysis of portfolio level reports. For companies with a standardized COA, Kardin has a feature in the license authorization that can disable certain users from making any changes to the COA; i.e.: COA LOCKED. When setting up the COA, keep in mind that you want to include only those accounts that are relevant to your budgeting and reporting needs. These typically include, but are not limited to, Operating Income and Expenses, as well as certain Balance Sheet items such as: Tenant Improvement, Leasing Commissions, Building Improvement, Principal Repayment, etc. Kardin can also track cash balance on a monthly basis. Accounts for Cash Balance may include Cash Balance, Cash Flow from Property, Additional Equity, and Distribution to Investors, etc. In order to setup a COA, the software unlock provided by Kardin needs to include the COA UNLOCKED setting. A. COA Setup Instructions 1. Export the Master COA from your accounting system in xls format. Reformat the xls report to provide the following 4 columns: V. 35.xx Updated January

68 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup Column 1 is the ChartID and contains the GL Account Numbers you want included in your Kardin COA. GL Account Numbers that are not needed can be deleted. All GL Account Numbers have to be identical in format (#of digits, dashes, spaces, etc.). Column 2, Chart Name, contains the Account Name that corresponds with the GL Account Number in Column 1. Columns 3 and 4, Account Category ID and Name, represent the desired order and name of GL Account groupings and their respective subtotals to be displayed on Financial Reports, as further detailed in the following section ("B."). Following is an example of Expense Accounts that are categorized as "Insurance" and "Utilities". On your COA xls worksheet, these Account Categories could be displayed as follows: V. 35.xx Updated January

69 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup Account Categories are user defined and can be different from existing groupings in your accounting system. When creating the Account Category ID, we recommend a number no larger than 4 digits. Also, the Category number cannot include any symbols (i.e. ;. ; / ). 2. After completing the setup in xls, copy the data in columns 1 and 2 (excluding column headers) and use the Paste button in the Kardin Chart of Accounts screen to populate all GL Account Numbers and Names all at the same time. 3. If you notice any GL Accounts that are missing, you can scroll to the bottom of the COA table and manually add any such account in the last (blank) row. Any Accounts that should have been deleted from the initial xls export, can also be deleted directly in Kardin during this setup stage. To delete an Account, click on the light blue square/rowselector button in front of the applicable row and hit Delete on your keyboard. Click the "row selector" and use "Delete" on your keyboard to delete an account. Add an account by entering the Account Number and Name at the bottom of the table. V. 35.xx Updated January

70 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup TIP: If you encounter an Error Message while pasting the GL Account information, click the Paste Errors button at the bottom of the COA screen. A dialog box will prompt you to export any data that couldn't be pasted in xls format. Choose the export file location, type in a file name and hit "Save". Use Excel to review the paste error information. B. How to Setup the Account Categories 1. Using your original COA Excel worksheet, copy columns 3 & 4, Account Category ID and Name. 2. In the Kardin COA setup screen, click the "Setup Categories" button at the bottom of column Within the Account Category Setup screen, click the Paste button located at the bottom left to populate the Account Category Setup table with your copied xls data. Note: Just like missing or unnecessary GL Accounts, a user can add or delete Categories from the Account Category Setup table (see instructions on the previous page under "A.3.") V. 35.xx Updated January

71 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup 4. All GL Accounts will need to be assigned to a Category, by clicking the Assign button in the last column of the Account Category Setup table. In the assign window, use the arrows located center screen to move GL Accounts in or out of categories. The Category Name is displayed in the center top of the screen. Unassigned accounts are shown on the left under "Available Accounts" and already assigned accounts are displayed on the right under "Assigned Accounts". 5. Continue assigning accounts into the desired Category until ALL accounts have been assigned. When complete, the Available Accounts box on the left will be empty. Click the "Close" button in the current and following screen to return to the COA Setup main screen. V. 35.xx Updated January

72 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup C. How to Setup Account Types The final step in setting up your Kardin COA is to assign the Account Categories into Kardin's existing Account Types. The purpose of Account Types is to organize the chart of accounts into the Kardin Reporting Format. The COA setup is what sets the pace in Financial Reports. The Account Types are fixed/hard coded, which means they cannot be renamed or moved. What is flexible is the assignment of Categories into the various Account Types. 1. From the COA Setup main screen, click the "Setup Types" button at the bottom of the last column. 2. Use the same assignment procedures as outline for Account Categories on the previous page (click "Assign" button; use arrows in center screen; assign Categories into Account Types until all Categories have been assigned). Types used in Budget Reports Types used in Cash Reports V. 35.xx Updated January

73 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Setup There is a total of 11 Account Types. Account Types 1 thru 8 assume cash budgeting and account type 9 accommodates expense adjustments to cash to calculate accrual Net Income. Account Types 1 thru 9 are used in the Budget Reports. The last two Types, Sources of Cash and Uses of Cash, can be used to generate Kardin's Monthly Cash Detail Report, which tracks cash flow through the budget period, including the cash flow balance from property budget. The cash report setup is optional. If you do choose to track cash, make sure you set up a couple of "dummy" accounts in your Kardin COA, one for Beginning Cash Balance, and one for Cash Flow from Property and establish the link in COA Links to Budget (as further detailed later in this Section). 3. Once all of your available Account Categories have been assigned to an Account Type, use to Close buttons to back up to the file main screen. Should there be any remaining unassigned Accounts and/or Categories, you will not be able to proceed with file setup until the COA has been completed in its entirety. V. 35.xx Updated January

74 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Import Chart of Accounts Import The Chart of Accounts Import function is the only way to populate the COA in a Kardin file when the user's software unlock is set to "Locked COA". The Import feature requires that you have access to an existing Kardin file (e.g. for another property) that already has the same chart populated. As mentioned earlier in this section, if an owner or management company mandates the use of Kardin, they will likely be able to provide you with a Kardin file containing the necessary COA that can be used for import into your own file. A. From the Chart of Accounts Setup screen, click the Import From Kardin File button. A Warning message will appear asking if you want to back up your file before continuing. Click Yes to enter a name and save a back up copy. Click No to proceed with import without making a back up. B. Click Select File to navigate to the directory where your existing Kardin COA file is saved, select the file, then click OK. C. Kardin will compare the budget start date and property ID from your own and the selected COA file. Property ID and Start Date do not need to match, but this comparison helps prevent the accidental combination of non matching COAs from different portfolios. If you want to continue with the Import, click Yes. Otherwise, click No. D. The Chart of Account Import screen will display the differences between your current Chart of Accounts and the file you selected. Either press the Begin Import button to proceed or choose View Comparison to view a detailed report of the differences in chart of accounts before importing. V. 35.xx Updated January

75 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Import & Chart of Accounts Export E. After pressing Begin Import, you will be asked a series of questions to verify the import of Accounts and Categories to be imported into your file. When importing the Chart into a brand new file, none of the Accounts and Categories will be matching. Click "OK" to proceed. When complete, all Accounts, their assigned Categories, and Type assignments will have copied over from the Selected File into your own file. In some cases, an existing COA might need to be updated for a portfolio of properties, e.g. new Accounts and/or Categories might need to be added; or assignments might need to be changed. The user in charge of maintaining and updating the COA can make the changes in the Kardin Master COA file and then provide all individual users with a copy of the updated COA file for import into their own property files. In this case, the import warning might show differences for only select COA items. Whether COA Import is used to populate the COA in a brand new file or for updating the COA in an existing file, it is the fasted way to populate a COA in Kardin and helps avoid having to set up the same COA more than once. V. 35.xx Updated January

76 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Chart of Accounts Import & Chart of Accounts Export Chart of Accounts Export Do you need to map your Kardin Chart of Accounts to an alternate or maybe a new chart? You may copy the entire chart and paste into an.xls file. From the Chart of Accounts Setup screen, click, hold and then drag from the first record selector (see black squares in screenshot below) all the way to the last record. Then hit Ctrl C to copy to clipboard. Paste the data from the clipboard into a spreadsheet file. Click, hold and drag record selector from first to last entry, then use Ctrl C to copy. V. 35.xx Updated January

77 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Alternate Chart of Accounts Setup Alternate Chart of Accounts Setup Budgets may have an alternate set of accounts allowing companies to budget in one set of accounts and to export data in another set of accounts, perhaps for a 3rd party owner of Joint Venture partner. This alternate chart must have the same or lesser number of accounts than the main COA. Kardin will roll up the accounts from the main COA into the alternate COA to create an Excel Export using the alternate GL Accounts. The Excel export in Alternate COA format can either be used to import a completed budget into a separate Kardin file and generate reports in the Alternate COA format, or the Excel data can be uploaded into the accounting system hosting the Alternate COA. Another way to export and generate reports with the Alternate COA is to utilize the Kardin Consolidation System (KCS), which is a separate application, typically used by owners and portfolio managers. In KCS, property data can be dynamically linked to an existing Alternate COA, and without having to export data and creating a separate Kardin file. Please refer to Kardin's KCS Manual for further details. NOTE: Unless the Alternate COA in a Kardin file is setup in its entirety and with every account mapped, the printing and exporting functions will not be available. A. From the Chart of Accounts Setup screen, click on the Alternate Accounts button. B. The Alternate Chart can be manually entered by typing in the Alternate Account ID and Name of Alternate Account into the columns as outlined in red below. The Alternate COA can also be imported all at once from an xls spreadsheet by using the Import Alternate COA button outlined in blue below. V. 35.xx Updated January

78 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Alternate Chart of Accounts Setup When importing from Excel, prepare a spreadsheet that has the main account number in column 1, alternate account number in column 2, and alternate account name in column 3. Note that multiple main accounts can be assigned to the same alternate account. Copy the data in columns 1 3 (exclude headers) and use the Paste button in the Alternate Chart of Accounts Import screen. V. 35.xx Updated January

79 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Alternate Chart of Accounts Setup C. Next, click Validate. If no errors occur, click Upload to complete the process, and Close to navigate back to the previous screen(s). V. 35.xx Updated January

80 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP COA Links to Budget COA Links to Budget Your Kardin application has built in dynamic calculations for numerous income values, expenses, etc., such as base rent and TI values calculating from Tenants and prospects setup in your Kardin Rent Roll. These are referred to as Calculating Fields. COA Links to Budget allows you to assign a specific GL Account to each of the Calculating Fields so that calculation results end up in the desired income, expense, or other account. Anything checked with a radio dial in the first column, Need Link, indicates that values are present for a specific Calculating Field, but that an account has not been assigned yet. Any field that is not checked with a radio dial can be ignored until Kardin provides a pop up message saying that a link is required under COA Links to Budget. To assign a GL Account to a Calculating field, click on the drop down menu in the center column, titled Chart ID. The drop down contains the Kardin COA in its entirety and any account can be selected by clicking on the Account Number or Name. The same GL Account can be assigned to multiple Calculating Fields. V. 35.xx Updated January

81 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP COA Links to Budget Once the link has been established, the Need Link will clear, the Will Link column will be checked, and the assigned Account Number and Name will display. The Display of Calculating Fields defaults to Commercial. It can be changed to show only commercial, only multi family, or both commercial and multi family specific calculating fields. V. 35.xx Updated January

82 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP COA Links to Budget Just like the Master Chart of Accounts, an existing COA Links to Budget setup can be imported from another Kardin File by using the Import From Kardin File function. Owners and/or Asset Managers may want to have the links set up in the Master COA file for individual user import. You can use the Compare to Kardin File button to compare the links setup between the current file and a different budget file. The Validate button tells you which Fields are being calculated and need a link based on the data input in Leases, Amortization and Management Fee. To delete an existing account assignment, click on the Clear button in the last column next to the appropriate field. V. 35.xx Updated January

83 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP COA Links to Budget Exceptions to Need Link display: Shown below are GAAP Adjustment and Monthly Cash Detail links. These calculations are optional, meaning Kardin will not provide a Need Link flag. Adjustment GAAP (Straight Lined Rent Calculation) prompts Kardin to auto calc average base rent and straight lined rent adjustment and provide supporting schedules. See also GAAP specific File Preference Options earlier in this Section under Options. Cash Beginning balance & Cash From Operations: Provides a Monthly Cash Flow Report. Note: Additional calculation types can be setup in Kardin with a link to a specific GL Account outside the COA Links to Budget setup field, such as: User Defined Calculations, Retail CAM Pool calculations, and Debt Service and Payroll. V. 35.xx Updated January

84 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals Current Year Actuals Import of Year To Date Actuals is only possible in Reforecast type Kardin files (this setup button is grayed out in Budget type files). When entering the Current Year Actuals screen, note that Year To Date Actuals can be imported under Current Year Actuals on the right hand side, and, if starting with a brand new Kardin file, current budget data can be imported on the left hand side under Current Year Budget. Note: If a reforecast was created from a budget file, the Current Year Budget data will already be populated. The lower left hand side of this screen lets you import, view, and edit estimated pre billings for each tenant under Recoveries Billed To Tenants for mid year true up or year end reconciliation. NOTE: Reconciling Prior Years CAM / Operating Expense Recoveries As indicated above, Kardin can calculate your Year End Reconciliation, but it can only be done in a reforecast type file. The user uploads 12 months of "actual GL" data and also enters/updates/validates 12 months of tenant pre billings. If your reforecast was created from an existing budget file with recovery schedules set up for each tenant, Kardin will automatically populate each tenant's estimated billings from the original budget period and the user can update or reload the actual billing data. V. 35.xx Updated January

85 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals Kardin will continue to recognize the data in a Reforecast environment, even though you know the data is 12 months of Actuals from accounting. If you have an existing mid year reforecast file, you can update it to bring in 12 months; otherwise create a new one from the prior year budget. A. Current Year Actuals Import (upper right hand side) A. B. The first step in importing Current year Actuals is to provide Kardin with the number of months of Actuals to be upload. Click on the Change Number of Months of Actuals button. A pop up warning will appear indicating that the number of Actuals can only be increased (e.g. from "0" to "3", or "3" to "4", etc.) but an existing reforecast cannot accommodate a reduction of Actuals (e.g. from "6" down to "3"). Next, decide whether or not you would like to make a back up copy of your file, and then type in the number of months you wish to import. V. 35.xx Updated January

86 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals C. D. After entering the number of months of Actuals you wish to import, click on the Spreadsheet View/Import button. The Current Year's Actuals table shows the format required for data upload into Kardin (1. Property ID; 2. GL Account #; 3. Month1; 4. Month 2,...). V. 35.xx Updated January

87 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals From your accounting system, export the Year To Date Actuals for your entity into an Excel spreadsheet to match the Kardin Import table. If you are working with a multi building file, you will need to download all applicable building/entity data. The first column contains the building/entity IDs and must match the IDs as set up in the Property Information screen of the file. TIP: It is recommended that you review the excel data and delete any rows that have a zero value for each month of the Actuals period. Also, if you notice any Balance Sheet Accounts which you know are not needed for budgeting purposes (e.g.: certain Cash Accounts or Pre paid Rents, etc.) you can delete them from the Spreadsheet as well. V. 35.xx Updated January

88 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals Next, copy the data from Excel (exclude Headers; only include cells containing the necessary data), and return to the Kardin Import screen. Click on the Paste button in the lower left, click "OK" in the dialog box that prompts you to choose a TEXT format, in the next screen click on Text and then click "OK". V. 35.xx Updated January

89 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals Your import table should now be populated with the data copied from your Excel Spreadsheet. Click the Validate Data button. If errors are found in your import data (e.g. data contains accounts that are included in your Kardin COA; non matching Property or Cost Center ID, non matching GL Account Number format, etc.) you will need to clean up these errors. The "Paste Error" button will allow you to create an Excel file containing the data errors. Once all errors are cleared, you will receive the "No conflicts found!" message, as shown below. Click "OK" to proceed. After successful data validation, the Adjust Signs and Upload Actuals buttons will become available. Adjust Signs lets you flip the sign of your income accounts. Typically, your account system will have income shown as negative. However, income is always positive in Kardin, so use this function to adjust all income accounts all at the same time (expense accounts are not affected). Upload Actuals will complete the Actuals upload process. Your data will be pushed from the IMPORT to the VIEW table and the initial months of your original Budget data (if any) will be overwritten by however many months of Actuals you specified for import. V. 35.xx Updated January

90 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals NOTE: Each time the reforecast file is updated with actual GL data, copy all Y T D Actual months; i.e. when you have 4 months, you copy in M1 thru M4; the next month, copy in M1 thru M5. Also, Actuals can be reloaded as many times as needed. When reloading Actuals, be sure the import table does not contain any remaining data from a previous upload attempt. Click on the row selector to the left of each data row and use the Delete button on your keyboard to delete a row. Use "Click + Hold + Drag" to select/delete multiple rows at once. V. 35.xx Updated January

91 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals Use Spread Actuals during Reforecast (optional) if you wish to automatically spread the actual data (that was just copied in to the Import Actuals screen) out through the remaining reforecast months. Kardin will take the YTD total and divide it by the # of months of Actuals you are importing. This monthly average is then applied to all remaining reforecast months until year end. IMPORTANT NOTE: Spreading the Actuals will delete all existing values for the reforecast months (e.g.: the original budget data that carries over if your reforecast was created from an existing budget file). B. Recoveries Billed to Tenants (bottom left hand side under Current Year Actuals) This is an IMPORTANT step in the Recoveries Calculations process within a Kardin Reforecast file. If you want Kardin to true up your expense recovery mid year or reconcile year end, you MUST enter the amount of operating expense recovery that was billed to the tenant year todate. The Amounts Billed in your Kardin file will need to be updated each time you update the actuals billed to date. V. 35.xx Updated January

92 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals If you created your reforecast from an existing Budget file that already had Commercial and/or Retail Recoveries setup and attached to Tenants, then the estimated billing amounts will have automatically rolled forward into your reforecast file. Simply go to the "Import from Kardin File" tab and click Validate Kardin Data. If there are no issues with the pre populated data, click the Update Totals button (which will become available if the data is error free) to start calculating the remaining recovery estimates in your reforecast file. If there are any errors, you can use the Paste Errors button to generate an Excel file displaying any data errors. Errors must be cleanedup to enable final data upload. ALTERNATIVELY, you can export the actual amounts billed to Tenants from your accounting system into Excel format (Accounting Key; Start Date; Monthly Amount; Charge Code as shown below). Copy the data from Excel and click the Paste button under Import Data from Accounting. Also, be sure to populate the Charge Codes used in your accounting data under Enter Recoveries Charge Codes. Again, any errors will need to be cleaned up before the data is ready for final update; e.g.: if the Account Key in your data download doesn't match the Kardin Accounting Key, go to the Kardin Rent Roll and adjust accordingly. If no errors, use the then active Update Totals button for final upload. V. 35.xx Updated January

93 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals NOTE: If neither the Import from Kardin nor the Import from Accounting is an option, you can also manually enter the amounts billed or export the amounts billed from an existing Kardin Budget file and import it into your reforecast. Regardless of your entry method, once you have completed the Update Totals process, the results will populate in the last table, View/Edit Totals Billed to Tenants. As the name indicates, you can do a final review of the amounts billed (now displayed as totals for the Actuals period by charge type) and also manually adjust any values that do not match the actual amounts billed. The Expense Reimbursement LABEL defaults are: CAM, TAX, Insurance, and UTIL. These can be renamed via RentRoll/Expense Reimb. /Change Names; these names will follow thru to the View/Edit Totals Billed to Tenants tab. The Amounts Billed To Tenant process and options are the same for Commercial and Retail Recoveries, with the only exception that Commercial recoveries are limited to four (4) Charge Types, while Retail allows for an unlimited amount of Charge Types. The Enter Recoveries Charge Code tab shows all the Retail Charge Codes that are setup in the Leasing and Recoveries/ Retail Reimbursement section of your Kardin file, and the View/Edit Total Billed to Tenant has an Expenses Billed button for each Tenant, displaying the various Charge Types associated with each Tenant. As with Commercial, values can be manually adjusted in this final table. V. 35.xx Updated January

94 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals C. Current Year Budget The Variance Reports available in a Kardin Reforecast file display current year budget values based on the information populated under the below Current Year Budget section. If your Kardin Reforecast was created from an existing budget file, the budget data will already be populated (see Current Year Budget / View tab). If no data is populated (e.g.: because you are beginning with a brand new reforecast file) or the populated data is inaccurate (e.g.: changes made to the budget since reforecast file creation), you can import/re import the budget data under Current Year Budget / IMPORT. The desired data can either be exported from the final Kardin Budget file or your Accounting System into Excel format. If you are working in a Multi Bldg type file, be sure to export the budget data for all entities. The required upload format has the Building/ Cost Center ID in the 1st column, GL Account Number in column 2, and monthly GL totals in columns Copy all cells containing applicable data from Excel (excluding column headers) and click the Paste button in the IMPORT tab. Click "OK" in the dialog box that prompts you to choose a TEXT format, in the next screen click on Text, and then click "OK". V. 35.xx Updated January

95 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals Next, click the Validate Data button. If you receive the "No conflicts found!" message, the now active Adjust Signs (Import) button lets you flip the sign for your income accounts (only used if income is negative; does not affect expense accounts). After verifying that income accounts are positive, click the Upload Budget button to finalize the budget data upload process. V. 35.xx Updated January

96 SECTION 3 KARDIN BUDGET SYSTEM / INITIAL FILE SETUP Current Year Actuals If you receive any error messages (e.g.: accounts in the upload data are not part of your Kardin COA; or non matching Property/Cost Center ID's; etc.) you will need to clean up these errors before the budget data can be uploaded into your file. Kardin will display any accounts not included. You can also click on the Paste Errors button to output the data errors to an Excel file. Accounts that are needed, can be added to your Kardin COA. Unnecessary accounts can be deleted from the Excel sheet or directly in the IMPORT table, by clicking the row selector to the left of each applicable row and hitting Delete on your keyboard. Use "Click+Hold+Drag" to select multiple rows at once. Repeat the Validation process until no conflicts are found. Just like existing budget data that might already be populated in your reforecast file, once you complete the import / re import process, the newly uploaded budget data will display in the Current Year's Budget / View tab. V. 35.xx Updated January

97 SECTION 4 DATA -LEASING & RECOVERIES: (Commercial Property Budgets and Reforecasts) *Note: For Multi Family Leasing and Assumptions, see Section 4A Leasing and Recoveries Overview Overview From the Main Menu, click Leasing and Recoveries. This brings you to a sub menu of buttons that serve the following functions: LEASING Import from Spreadsheet allows you to import Suites, Contract Tenants and their monthly reoccurring step up Rents from your accounting system. Kardin validates the accounting data prior to uploading. Leasing Assumptions lets you setup leasing assumption templates that can be applied in the Kardin Rent Roll for projected leasing activity to reduce manual / redundant data entry. Suites is an inventory of the building and allows you to view and edit all the existing suites and set their measured RSF. 97

98 SECTION 4 DATA -LEASING & RECOVERIES: Overview Rent Roll is the inventory and management of leases. You can view and edit lease information on all the existing tenants as well as the assumed leases. COMMERCIAL REIMBURSEMENT Financials is like a filing cabinet of historical GL data and allows you to bring in historical financials used for base year detail in recoveries and for trend type reporting in the Financial Summary and Financial Summary Detail Reports. Data can be imported at detail GL level or manually entered at Category (Summary) level. Expense Codes allows you to create the names and descriptions used for the expense schedules (pools) that your recoveries will be based on. A tenant s current year and base year expense schedules must use the same Expense Code name, but can have different financial years. Commercial Cap List allows you to create the CAP name and capped amount that will be linked to the applicable category or account via Expense Schedule Detail. Expense Schedules allows you to create your expense schedules or CAM pools by selecting a financial Year/Type and an Expense Code. Each Expense Schedule can be individually edited. Many tenants can use the same Expense Schedule(s). RETAIL REIMBURSEMENT Denominator Groups lets you define a square foot base/denominator that is used to calculate a tenant s prorata share of expenses. Retail Charge Codes allows you to setup an unlimited amount of charge codes, as necessary for the varying expense pools of your budget. Each charge code will need to be linked to a GL Account within your Kardin COA. Retail Cap List allows you to create the CAP name and enter capped amount that will be linked to the applicable expenses via Retail Expense Pools. 98

99 SECTION 4 DATA -LEASING & RECOVERIES: Overview Retail Expense Pools lets you create an unlimited number of pools, as necessary for calculating your tenant recoveries. FIXED REIMBURSEMENT Fixed Recovery Pools allows you to set up recovery pool names and their linking GL account for non calculating/fixed recovery expenses. PERCENTAGE SALES Monthly Spread List allows you to set up percentage spreads that can be applied to a tenant s estimated sales during Percentage Sales set up in the Kardin Rent Roll. INDEXES CPI Index allows you to setup the CPI indexes that will be applied in the Kardin Rent Roll. Porter s Wage Index allows you to setup the Porter s Wage indexes that will be applied in the Kardin Rent Roll. 99

100 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet Import from Spreadsheet Import from Spreadsheet can be used to upload Suites, Tenants and Rents data when a) setting up a brand new Kardin file from scratch; or b) updating an existing Kardin Rent Roll that is so far outdated on actual leasing activity, that an update import is more efficient than manually updating your Kardin data. The Suites, Tenants and Rents data can be exported from your accounting system into Excel format and brought into Kardin via an easy copy & paste function. Alternatively, Suites and Contract Tenants/Rents can also be entered manually (e.g.: tenant info has not yet been abstracted into your accounting system and/or your project has a minimal amount of tenant info that is easy to manually add to your Kardin file). When choosing manual entry, do not use the Import from Spreadsheet option, but set up the building spaces and tenant information under "Leasing and Recoveries/Suites" and "Leasing and Recoveries/Tenants" instead. Kardin is a relational database, which means specific relationships and certain rules apply to successfully add or upload data, beginning with the Property or Cost Center ID's setup in Kardin under Property Information/Budget Year. The following screen shows the four (4) leasing data import tabs, beginning with Charge Codes, then Suites, followed by Tenants and Rents. 100

101 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet The Suites data represents the inventory of spaces that define your building/project configuration. Tenant information is validated by establishing a link to the corresponding Building Suite, meaning the Suite Number in the Suites data must match Suite Number associated with a Tenant record in the Tenant data. It has to be an exact match (e.g. Suite # 200 and Suite # 0200 will not be identified as the same Suite). The Accounting Key is the link between Tenants and Rents data. By using matching Accounting Keys, Kardin is able to link the rent charges to each tenant. The Charge Codes used in the Rents data tie back to the codes Charges Codes entered in the first tab. A. Charge Codes Charge Codes are used by your accounting system to differentiate various charges to tenants such as Office Rent, Retail Rent, Storage Rent, Free Rent, CPI Rent, Parking Rent and Miscellaneous Rent. Manually enter the codes used in your accounting system for each type of rental charges listed. Kardin will only allow you to validate the first row in the below table, so be sure to not enter more than one Charge Code per income type. NOTE: This excludes Recovery Income. Only monthly reoccurring step up rents should be included in the upload. B. Importing Suites From your accounting system, export the Entity ID, Suite Number and Rentable SF into Excel as shown below. Remember to export data for all entities when working in multi bldg type 101

102 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet files. Each Suite Number must be unique. If there are 2 suite 100 s within a Multi Bldg project, they must be differentiated by putting e.g. the Cost Center No. in front. Copy the data from Excel (excluding column headers) and click the Paste button in the Suites tab to begin import. During import, Kardin will prompt you to choose TEXT format for upload, click OK. In the next screen, click on the TEXT option, then click OK to complete upload. 102

103 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet C. Importing Tenants From your accounting system, export that data as shown below into Excel format. The Accounting Key should tie with the Rents data in the next import step. Suite Number should tie with the Suite Number in the Suites data. Additional columns are Tenant Name, Commencement and Expiration Date, and Lease RSF. Note that the Lease RSF can be different from the Suites RSF under Suites. This is to accommodate any space remeasurements your building might have undergone, while the Tenant Lease still reflects the original SF value. The Copy/Paste Process is the same as shown for Suites upload in the previous step. An additional feature in the Tenant upload tab is the ability to pull the Suites SF from the Suites tab into the corresponding Tenant record; e.g. your Tenant download did not contain any Lease RSF values and all SF show as "0". Use the Set all 0 Lease RSF to Measured RSF to overwrite the "0" values with RSF values from the Suites tab. 103

104 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet D. Importing Rents From your accounting system, export the Accounting Key, Start Date, Monthly Amount and Charge Code into Excel as shown below. As mentioned earlier, the upload to Kardin should only contain monthly reoccurring step up rents, but no miscellaneous one time charges or recovery income (filter out/delete non applicable charge types from your xls sheet before upload. Free/Abated Rent with negative income signs needs to be adjusted to show as a positive. Also, the Free Rent must have a different start date than the corresponding Base Rent Amount. e.g. Rent Commencement of Jan 1st with 1 month of Free Rent should have 1 data row with Free Rent code starting 1/1 and one row with Base Rent code starting 2/1. Alternatively, Free Rent can be excluded from the bulk upload and manually attached to applicable Tenants in the Kardin Rent Roll after import is complete. If multiple accounting charge codes are used for the same income type (e.g. BR1 and OFF for office rent), you can combined the codes in xls to one uniform code. Remember to add the appropriate code into the Kardin Charge Code tab (cannot use more than one code per income type). 104

105 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet As with Suites and Tenants information, copy the final rent data from your xls sheet and paste it into the Kardin Rents tab (using the Paste button and choosing TEXT format). E. Validate Data and Upload to Budget After populating all available import tabs (Charge Codes, Suite, Tenants and Rents) click the Validate Data button. If any data errors are found, they will need to be corrected before the data import can be completed. The Error message will indicate which tab(s) contain errors. 105

106 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet Errors can be export to xls by clicking the Paste Errors button. Choose Errors Report to generate a pdf report instead. Additional error information is also available under the Error detail button located on the left hand side at the end of each row. To correct errors, note that all white fields in Kardin can be manually edited. Also, and as outlined in previous sections, rows can be deleted from data tables by clicking on the lightblue row selector to the left of a row, and then hitting the "Delete" key on your keyboard. Use "Click+Hold+Drag" to select multiple rows at the same time. 106

107 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet TIPS: Overlapping Occupancy, Duplicate Rents, non matching Charge Codes are some of the possible errors you might encounter. A Duplicate Accounting Key will also create an error. Each Tenant must be identified by a unique Accounting Key. Some accounting systems will assign the same accounting key ID to a tenant that occupies multiple suites. In Kardin each suite occupied by a tenant represents a separate lease, and therefore requires a unique ID or Accounting Key even when the Tenant Name is the same. To bypass the error, add a digit to each Accounting Key, i.e. 01, 02, etc to identify each. Use the same Accounting Key in Rents as used in Tenants to be sure the rents upload to the appropriate tenant. This change will only impact the upload into Kardin and will not cross back into your accounting system, until you download CAM Billings. Amend the Accounting IDs in Commercial Recoveries and/or Retail Recoveries exports to accommodate upload into accounting system. Continue to Validate Data until no more errors are found, then click "OK". Next, click the now active Upload/Update Leasing button. The system will first ask you if you want to make a backup. Click "Yes" to make a backup copy of your current file (recommended when updating exiting leasing data) or "No" to proceed. Leasing Import will provide two (2) Options: 1) Delete and Replace All or 2) Update and Add Info. If you are creating a new file with no existing lease information, choose Option 1. If you are updating an existing file with existing lease information and want to update the latest contract leases from accounting, select Option

108 SECTION 4 DATA -LEASING & RECOVERIES: Import from Spreadsheet Option 1 will clear your existing Rent Roll and Suites data and replace it is its entirety with the newly uploaded information. DO NOT SELECT OPTION 1 FOR UPDATING A FILE, ESPECIALLY IF YOU HAVE RECOVERIES SETUP IN THE RENT ROLL. Option 2 will prompt Kardin to analyze differences between the upload data and existing Suites and Rent Roll data. The below screen will let you confirm the update changes. Click on the View Comparison button to view/print a list of changes that will be made to your file. Click Close to stop the import. Clicking Begin Import will start a series of confirmation popups to help ensure desired results. Once the upload process is completed, the information stored in the Suites, Tenants and Rents tabs will be cleared out and rolled forward to your Kardin Suites and Rent Roll. 108

109 SECTION 4 DATA -LEASING & RECOVERIES: Leasing Assumptions Leasing Assumptions The purpose of setting up "Leasing Assumptions" is to reduce the amount of manual entry when projecting future leasing activity. Leasing Assumption module allows you to create generic leasing assumption templates that can later be applied to vacant spaces and expiring leases within the Kardin Rent Roll. These assumption templates will not flow into your leasing data until they are applied to a specific suite in the Kardin Rent Roll. Use Example: You have 5 vacant spaces and project similar terms for rents, tenant improvements, and leasing commissions. You can create ONE leasing assumption template and apply that same leasing assumption to all five spaces. Once applied to a suite, changes can be made to all pre populated template data specific to each prospective lease up. 109

110 SECTION 4 DATA -LEASING & RECOVERIES: Leasing Assumptions Assumption Setup A. From the file main menu, go to Leasing and Recoveries / Leasing Assumptions. B. Type in the Assumption Name. The name is user defined. Create a name that best defines the assumption. C. Downtime represents the period of time it takes to get a space lease ready after it is vacated, hence it applies to expiring leases. Downtime will not apply to renewal assumptions or spaces that are already vacant. It is stored as number of months. D. Term is stored as number of years. It is important to enter the number of years for the term. Leaving this field at zero will: remove all rent schedule data and create a lease ending date prior to lease start date when the assumption is applied. E. Rent Schedule gives a projected rental schedule over the term of the lease. You can enter rent in an amount (typically market rent) that represents the $/SF/Yr. or $/SF/Mo. If you want to make an assumption with a CPI rent, enter the base amount in $/SF/Yr. and then type in a CPI % over that base amount. F. Parking rates can be included in a template for Reserved and Non Reserved spaces. Enter the Number of spaces and $ Rate for each stall. G. Enter a Tenant Improvement cost per SF in TIs ($/RSF). TI can be disbursed centric to the commencement date of a lease and in form of a payment schedule. You may divide up the payment of the TI into separate payments that occur x number of months BEFORE, ON, or AFTER the lease commencement date. The total of all payment increments must equal 100%. H. Leasing Commissions can be setup for two brokers: Broker 1 and Broker 2. If you only use one set of Leasing Commissions, then use Broker 1. Broker 2 allows you to setup a second LC schedule. (Use this if you need to separate an in house broker from an outside broker. Another option would be to use Broker 1 for new deals and Broker 2 for renewals.) Be sure to set up all Broker 1 s consistently and all Broker 2 s consistently. 1. Select a LC Method. Use the pull down menu to choose one of three options: Fixed Amount, $ Per SF or % of Value. 2. Based on your selection, populate the corresponding fields below the Method, such as typing in the Fixed amount or $ PSF. When using the % of value method, you can enter a flat % amount in year 1 which prompts Kardin to calculate the same rate over the entire 110

111 SECTION 4 DATA -LEASING & RECOVERIES: Leasing Assumptions 3. lease term. If there is an adjusting/staggering %, you will enter the specific % rate for each year (i.e. yr. 5%; yr. 4%; yr. 3%, etc.). Note: In the Kardin Rent Roll, you can create a Commission Schedule where payment is disbursed in multiple increments centric to lease commencement (similar to TI disbursement described above). See Rent Roll later in this section. I. The Add button will provide a blank template for creating a brand new leasing assumption. J. The Duplicate button will create a copy of the current leasing assumption. In the resulting popup window, simply provide a new assumption Name and click okay. You can then edit the data (vs. starting with a blank template) which might help reduce data entry. K. The Delete button will permanently delete the current leasing assumption template. Note: You can add an unlimited amount of leasing assumption templates provide all have a unique name. To move to the first record, the previous record, the next or the last record, use the record navigation buttons at the bottom of the screen. 111

112 SECTION 4 DATA -LEASING & RECOVERIES: Leasing Assumptions Applying Template to Vacant Suites APPLY LEASING ASSUMPTION TEMPLATE TO VACANT SUITES From the Kardin Rent Roll, click on View Vacancies at the bottom of the screen to filter your rent roll down to displaying only those Suites that are vacant for all or part of the year. Use the Lease Assum. button to the left of the appropriate Suite Number to apply one of your custom Leasing Assumption templates. Click to choose/define In the Leasing Assumption pop up window, use the drop down menu to select the desire template, and type in the projected Lease Commence date and click OK. The selected Suite will now be populated with all data as set up in the leasing template (Commence Date, Expire Date, Rent Schedule, TI, etc.) and can be edited as needed. The edits to the lease data in the Rent Roll with not affect the data in your original template. To make changes to the original template, make changes directly under the Leasing Assumptions Setup screen. Changes made int he Rent Roll do not flow back to the template and vice versa. 112

113 SECTION 4 DATA -LEASING & RECOVERIES: Leasing Assumptions Applying Template to Vacant Suites Deleting Leasing Data Click the record selector button and the "Delete" key on your keyboard to temporarily delete the suite in its entirety. Hit Refresh to bring back the suite only. If you need to delete existing data for a suite, click on the row selector button to the left of the appropriate suite and then hit the "Delete" key on your keyboard. All suites data will be erased. Hit the Refresh button and the suite itself will re appear, but without any lease data. 113

114 APPLY LEASING ASSUMPTION TEMPLATE TO EXPIRING SUITES SECTION 4 DATA -LEASING & RECOVERIES: Leasing Assumptions Applying Template to Expiring Suites From Rent Roll, click on View Expirations to view the suites that are expiring in the current budget year, and then click on the Lease Assum. button next to the desired suite. Choose Vacate or In the resulting pop up window, use the first drop down menu to either Renew or Vacate the exiting tenant upon lease expiration. In the second drop down menu to select the desired leasing assumption template, and then click OK. Deleting Leasing Data As described on the previous page, use the row selector, "Delete" key, and Refresh button to delete unwanted leasing data from a suite. Click the record selector button and the "Delete" key on your keyboard to temporarily delete the suite in its entirety. Hit Refresh to bring back the suite only 114

115 SECTION 4 DATA -LEASING & RECOVERIES: Suites Suites The Suites screen under Leasing and Recoveries is where you will manage all the spaces that exist in your building(s). Think of it as the blueprint of the building(s) or inventory of the suites. All updates, additions and amendments to suite numbering, measured square feet and suite type will be made here. If you have used the Import Data from Spreadsheet function as described earlier in this Manual, all data from your upload will already be populated and ready for updates/changes, if needed. Alternatively, you can also populate all Suites data manually/one space at a time. You can edit the Measured RSF so that it matches your latest floor plans. It may or may not be the same as the Lease RSF that is specific to each tenant s lease. By entering the Measured RSF for each suite here, when a lease expires, the system will automatically set the new Lease RSF to the Measured RSF. This was designed to handle measurement differences. The Measured RSF reflects the suite size as of the Budget Start Date. For changes during the budget period (after the Budget Start Date), such as suite splits or mergers, click on the Detail button to indicate when and how a space in your building is changing. 1. Enter the date the square footage change is effective. 2. Enter the new measured RSF. 3. Enter a description in the comment box. 115

116 SECTION 4 DATA -LEASING & RECOVERIES: Suites Note: When reducing a Suite, be sure to either add the access SF to an existing space, again using the Detail button, or scroll to the bottom of your Suites table and add a brand new suite to absorb the access SF. Remember the Measured RSF field represents the size of the suite as of the budget start date. For brand new spaces that are created mid year, this value should be zero, while the Detail button shows the when the new suite becomes active and what its size will be. You may also need to edit the Suite No., e.g.: if your suite numbers are not sorting properly (i.e is before 200), you can press the Add Leading Zero button to format the suite numbers to the same digit length. This should cause them to sort by numeric order. You can also press the Remove Leading Zeros button to return the suite number to its original format. If the Suite No. was pasted in from accounting with spaces, you can remove them here. Most accounting systems only store Lease RSF. If there are square footage discrepancies between the Measured RSF and the Lease RSF, you will want to make sure that it is the Measured RSF that is stored here. Lease RSF can be amended directly in the Kardin Rent Roll. To add a Suite, go to the last record with the asterisk and enter a Suite No. and a Measured RSF. Use the pull down menu to select a Suite Type. This information will determine where the income for each suite will be linked back into the budget. A suite type of O (office) will apply rents to Base Rent Office, and R (retail) to Base Rent Retail. A storage suite can only have storage rent. If the Suite Type is Retail, you can use the pull down menu to select a Retail Suite Type (In Line; Department Store; Outparcel; Miscellaneous). There is an Occupancy Summary Report for retail properties that breaks down the occupancy level for each retail suite type. Include in Bldg. RSF box allows you to exclude certain suites from the total Building RSF calculation. The Building RSF is also used to calculate $PSF amounts in reports and the Building Occupancy %. Occasionally, you may experience storage or miscellaneous space with measured RSF that you would prefer to be excluded from $PSF calculations. Suites not included with Bldg. RSF will be excluded from occupancy calculation. Enter the Floor number for each suite. This is Optional, but will allow the Stacking Plan Report to print. The Stacking Plan Report will print the floors in descending order, and the suites in ascending order. Market Rents are OPTIONAL and only necessary if required to calculate Gross Potential Rent. Entering the market rent per square foot will allow for the automatic calculation of gross potential rent and vacancy rental adjustment. You can enter the annual dollar Amount PSF or monthly dollar amount psf. To expedite data entry, utilize the set yearly or monthly buttons 116

117 SECTION 4 DATA -LEASING & RECOVERIES: at the bottom to fill in all spaces with one amount. You can then edit individual suites, as necessary. COA Links (as covered earlier in this manual) for Gross Potential Rent and Vacancy Adjustment must be established, via COA Links to Budget, in order for each calculation to occur and Gross Potential Rent Report to be available. Suites To remove Gross Potential Rent calculation and Link, change Market Rents to ZERO, then update the file calculations. To delete a Suite, click on the gray record selector box (to the left of the record) and press the delete key. Note: You must delete the suite in Rent Roll first. Go to rent roll, select the record, press the delete key, immediately close rent roll (do not refresh), go to suites and delete the suite. If Retail Denominator Pools exist, remove suite from Denominator Pools first. For Multi Building files, you can check the square footage totals for each cost center by selecting the desired cost center in the Filter by Cost Center box. In the illustration below, Cost Center 100 was chosen, notice the total RSF now reflects the total square feet for Cost Center 100 and the building RSF represents the entire project square feet. To un do the filter and show all the suites again, click on the Show All Suites button. Refer to the Building Size by Suites report under Reports and Export / Other to audit your building size and mid year size adjustments. 117

118 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Rent Roll A. Rent Roll Validation 1. From the Leasing Setup Menu, click Rent Roll. The system first verifies all the existing data and warns you if there are any conflicts. If there are any potential conflicts, you will get the following message: Possible Errors were detected. Do you want to View before entering Rent Roll? If there are conflicts, you will get this message: Errors and Possible Errors were detected. Do you want to View before entering Rent Roll? 2. Click YES to view a list of errors and/or possible errors. Possible errors are those such as rent starts before lease commencement or extends after lease expires. The system points them out to you but it does not prevent you from going into Rent Roll or viewing your reports. You will be able to move forward with your file without correcting the possible errors. Errors or missing information will prevent you from viewing your reports. All these will be listed for you in the Errors List, which you can print out. You will need to correct ALL Errors. 3. After viewing the Errors List or if you have selected NO, you will be at the Rent Roll screen. For additional guidance on Rent Roll Errors, refer to the Addendum of this manual. B. Rent Roll Main 1. When you first open the Rent Roll, the system assigns each Suite a Leasing Status, which is shown in the first column. This is set by the system. 118

119 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll V (Vacant) means the suite was vacant at the start of the budget period. O (Occupied) means the suite is occupied throughout the budget period. E (Expire) means there is a lease in the suite that will expire during the budget period. B (Both) means that there is both a vacant period and a lease will also expire. 2. For any expiring leases or vacant suites, you can click on the Lease Assum. button, which allows you to select/apply any one of your leasing assumption templates. This process will apply the template terms to your assumed leases. 3. The Suite No. / Type column includes all of your suites. Suites with no tenants are automatically set to Vacant Space. You may have more than one tenant for the same suite if the dates of their leases do not overlap. Next to SuiteNo. is the SuiteType. "O" stands for Office, "R" for Retail and "S" for Storage. The suite type is established in the Suites screen. Suite Numbers may be amended in the Suites screen. 4. The Tenant column contains the name of your tenants. 5. The Lease Type column distinguishes a contract lease from an assumed lease. All leases that were brought in via accounting are tagged as contract. You can use the pull down menu to change the status. When Lease Assumption templates are applied, a Lease Type of New" or "Renew will populate. Vacant suites will be unknown. Note: Lease Types of New or Renew in the budget period will populate on the Leasing Activity Reports. 6. LeaseRSF is the basis for rent calculation and is specific to the square footage designated in the lease. This can be different from the Suite s Measured RSF. When the tenant vacates or renews, the system will automatically set the new lease s Leased RSF to the Suite s Measured RSF. 7. Each tenant must have a Lease Commence and Lease Expiration date. If a tenant s lease expired in June but he is holding over on a month to month basis without a new lease, you will need to extend the Lease Expire Date to include the holdover period, so that it can be accounted for in the Base Rent Schedule and Occupancy report. Another option would be to apply a Lease Assumption Template to accommodate the holdover period. Note: The Commencement and Expiration dates will drive the start/end of a tenant s monthly Expense Reimbursement estimate (this is the CAM estimates that are set up via Expense Reimbursement and are explained later in this Section). 119

120 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll 8. You can view and/or edit the tenant s rent schedule by clicking on the Rent Schedule button. This detail screen is where Base Rent, CPI, Porter s Wage, Parking, and Miscellaneous revenue are set up for each applicable tenant. The rent schedules are imported originally with the lease data downloaded from accounting. 9. To delete a Tenant, click on the gray record selector box (to the left of the record) and press the delete key. Note: If you need to delete the entire suite, you must delete the suite in Rent Roll first. Then, close Rent Roll, go to Suites and delete the suite a second time. 10. Rent Roll may be sorted by Suite No. / Type, by Tenant, or by Lease Type. Simply click on the column heading for any of these columns and the data will sort alphanumerically for easy searching. 120

121 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Rent Schedule Base Rent RENT SCHEDULE BASE RENT a) After the rent data is downloaded from accounting and uploaded into Kardin, the office, retail, free and storage rents will be populated in this schedule. Rent schedules can also be uploaded when applying leasing assumptions templates containing your custom schedules. All rents are budgeted to GL Accounts as set up in COA Links to Budget. b) You can amend a rent schedule by direct input into this screen. Rents can be entered as $/SF/Yr. OR $/SF/Mo OR Monthly amount. c) Free Rent and Free Reimbursement are both managed in the Rent Schedule / Base Rent tab. The Free Rent & Free Reimbursement boxes need to be checked when applicable and another rent step needs to be added to designate commencement of actual rent and reimbursement payments. By checking the Free Rent box, Kardin creates a positive rent to Base Rent and a negative rent to Free Rent; thereby producing a net zero to the budget. (Note: the supporting Base Rent schedule will report the positive rents and the supporting Free Rent schedule will report the negative rents; a link for free rent to the applicable GL account will need to be set up in COA Links to Budget. There is a link for Office Free Rent and Retail Free Rent the Suite Type of Office or Retail will determine the link path of the tenant s free rent). By checking the Free Reimbursement box, Kardin creates a positive reimbursement and negative reimbursement to each of the Reimbursements set up in Expense Reimbursements. The net effect of both transactions is equal to zero in the linking GL Account as set up in COA Links To Budget. The free period begins with the start date of the free rent and ends when the next bump begins. As illustrated below, this tenant will have free rent starting 2/1/2014 and ending 3/31/14; rent will commence on 4/1/2014. (Note: After closing the screen, screen refreshes to sort records chronologically.) 121

122 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Rent Schedule CPI Rent RENT SCHEDULE CPI RENT a) From the Rent Schedules screen, click the CPI tab. Before setting a CPI increase, make sure you have entered all the dates and base rent amounts in Base Rent. In the example above, the monthly base rent of $47, was to accommodate the annual CPI calculations. b) Use the pull down menu under CPI method to select one of four options: Index, Percent, Amount or None. c) If you are dealing with historical CPI Indexes, select Index as the CPI Method and then select a Current Index and a Base Index. The indexes need to be set up first under Leasing and Recoveries/CPI Index (refer to CPI Index Setup" later in this Section). CPI Index Calculation: (Current Index Base Index) / Base Index = %; % X Base Rent = CPI Monthly Amount d) When entering a percentage increase, select Percent as the CPI Method and enter a percent under Percent. e) When entering an amount, select Amount as the CPI Method and enter an amount under Amount. f) To clear a CPI amount, select None as the CPI Method. g) CPI Rents are budgeted in the GL Account as set up in COA Links to Budget. 122

123 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Rent Schedule Porter s Wage RENT SCHEDULE PORTER S WAGE a) From Rent Schedules, click the Porter s Wage button. b) Select the PW Index from the pull down menu (you need to set these up in the Porter s Wage Index screen see Porter s Wage Index Setup, later in this Section). c) Select the PW Base Year from the pull down menu. d) Enter the PW Labor Factor as per your lease. e) Enter the PW Lease RSF as per your lease. f) Porter s Wage Calculation: {[(Current Year PW Base Year PW) x PW Labor Factor] x PW Lease RSF} / 12 months = Monthly Amount g) To clear or delete a set up, click on the clear button. h) Porter s Wage is budgeted in the GL Account as set up in COA Links to Budget. 123

124 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Rent Schedule Parking RENT SCHEDULE PARKING a) From the Rent Schedules screen, click the Parking tab. b) Enter the Start Date, # of Stalls, and Monthly Rate per stall (Reserved and/or Nonreserved). c) The Monthly Total will automatically calculate. d) You can enter as many records as necessary. Go the * record and enter the Start Date for the next record (Note: you cannot have more than one of the same start date.) e) To Delete a record, click on the first gray box (with black arrow) to highlight the record, then press Delete key. f) Parking Rents are budgeted in the GL Account as set up in COA Links to Budget. 124

125 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Miscellaneous Rent MISCELLANEOUS RENT a) From the Rent Schedules screen, click the Miscellaneous tab. b) Enter the Start Date. While you can have multiple records here, you can only have one per start date (i.e. cannot have a second charge beginning 1/1/2015). c) Enter the amount by $/SF/yr. or $/SF/mo. or total Monthly Base Rent. If the suite has 0 SF, enter the amount in total Monthly Base Rent. d) Enter an explanation of the charge. e) Miscellaneous Rent is linked to one GL Account as set up in COA Links to Budget. 125

126 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Percentage Sales Rent PERCENTAGE SALES RENT Note: When a lease is expiring during the budget period and a renewal lease assumption is applied; the percentage sales rent data will copy from the original lease to the renewal line. a) From Rent Roll, click the % Sales button. b) Enter the Sales Type, Calculation Method, Breakpoint Method and set up BP Detail. Sales Types are user defined names. You begin by creating a name for each sales type. You may enter more than one sales type. In the example above, Mochina Café has a different breakpoint and percentage for coffee sales and baked good sales. c) Select the Calculation Method for each Sales Type. There are six methods of calculating % sales estimates: Annual calculates the total % sales at the end of the year. Semi annual calculates the % sales at mid year and again at the end of the year splitting the breakpoint amount 50/50 for each calculation. Quarterly calculates the % sales at the end of every 3 months splitting the 126

127 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Percentage Sales Rent d) breakpoint amount in quarters for each calculation. Monthly calculates the % sales monthly splitting the breakpoint amount by 12 for each calculation. (YTD Sales YTD Breakpoint) * % Sales. Kardin looks at the total YTD Sales and compares to the YTD Breakpoint; if the YTD sales are higher than the YTD Breakpoint, a % rent is calculated; NOTE: IF the YTD Sales are less than the YTD Breakpoint, NO % rent is calculated (there is no negative amount "subject to % sales rent"). Monthly Average calculates the total annual % sales amount then calculates a monthly average.((total 12 Mo. Sales Total Annual Breakpoint) * % Sales)/12 Monthly As Earned begins calculating the % sales in the month that projected sales exceed the total breakpoint amount. If (YTD Sales YTD Breakpoint) > 0, then Monthly Amount. e) Next select the Breakpoint Method and set up the BP Detail for each Sales Type. There are three Breakpoint Methods: Natural pulls the breakpoint from the tenant s rent schedule. The breakpoint calculation = monthly rent x 12 / breakpoint %. As there is a bump in the rents, the breakpoint also increases. If the % sales calculation start month is different from the rent start month, Kardin will prorate/adjust the breakpoint accordingly. 127

128 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Percentage Sales Rent Non Natural Simple is a direct input of the annual breakpoint amount. Non Natural Multiple is a direct input of the breakpoint for sales types with multiple percentages. In the example below, grocery sales from 0 to $400,000 (initial breakpoint) is subject to 0% sales rent, sales from $400,001 to $420,000 is subject to 10% sales rent, sales from $420,001 to $450,000 is subject to 8% sales rent, and sales above $450,000 is subject to a maximum or final sales of 6%. 128

129 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Percentage Sales Rent f) For each sales type, if you select that sales type by clicking on the gray record selector to the left of the name, the Estimated Monthly Sales for that sales type will appear. Note: Enter estimated sales only in the months of tenant s occupancy. In the following example, although the budget starts in the month of January, the 12 month period for calculating sales start in the month of May. As a result, sales are tracked from May to April of each year. Thus, for a calendar year budget that starts Jan. 2016, we needed the sales figures for fiscal year 2015/16 and 2016/17. Note: if you set up a % sales with an annual calculation method, a calculation start month of January and the lease is scheduled to expire prior to the annual calculation, this calculated amount will not get into the budget. If this happens, you will need to change the calculation start month (try the lease commencement month). g) A credit balance or balance forward can be entered in the Credit Balance under Estimated Monthly Sales. The amount must be entered as a positive amount. This amount will be applied toward the % sales calculation. The total due/budgeted will be the % Sales Calculation less the Credit Balance. h) There are two Data Entry Methods for estimated sales: Manual allows you to manually enter the estimated sales either by an annual amount (under Est. Annual Sales) or monthly amounts. Spread allows you to select a Monthly Spread (set up under Leasing and Recoveries/Monthly Spread List, as covered later in this Section). By entering an Estimated Annual Sales, Kardin will spread the annual out to each month based on the spread table selected. h) The Calculation Start Month is automatically defaulted to the lease commencement month. You may use the pull down menu to change the start month for calculating % sales rent. 129

130 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Percentage Sales Rent 1) From the % Sales Rent screen, click on the % button under the Estimated Monthly Sales Box. 2) At the Sales Rent Calculator screen, Kardin will enter some automatic calculated percentages (as above). You can Clear Percents and enter them manually to fit your assumptions. The Round Percents button will round the automatic calculated percents. The Update button will update the calculation following any changes you have made to the Total or the Monthly Percentages. 3) The percentages should add up to 100%. If they don t equal 100%, you will be able to update the record, but you will get a warning message, and the new total will change from what was entered in the input box. i) % in Lieu of Rent allows you to set up the calculation as revenue in lieu of base rent. 1) Select yes. 2) The GL Account number will need to be linked in COA Linked to Budget for % Rent in Lieu. j) Comp? Selection of yes will flag this tenant as a comparable sale on a Sales Comp report. Selection of no will flag this tenant as a non comparable sale on the report. 130

131 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement EXPENSE REIMBURSEMENT Prior to setting up expense reimbursements in the Rent Roll, you must first set up Expense Code(s) and Expense Schedule(s). a) From the Kardin Rent Roll, click on the Expense Reimbursement button to setup each tenant s recoveries. Commercial Recoveries, Retail Recoveries, and Fixed Recoveries can be populated from this detail screen. b) Commercial Recoveries may have up to four reimbursements: CAM, Tax, Insurance and Utilities are the default names. You may rename each to meet the needs of your building. Click on Change Names and enter user defined name for each (only for those that will be used). Note, these names will be universal for the property file, therefore, changing one for one tenant will change to the same name for ALL tenants. These names will follow into the Reforecast file / Current Year Actuals / Commercial Recoveries Billed to Tenants. 131

132 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement Each reimbursement type has six method choices: Base Sched., Base Amount, Base Stop, Fixed Amount, NNN or None. Pro rata shares will default to an automatic calculation of the tenant s square footage divided by the building square footage. Each pro rata share can be manually adjusted for each type. The Memo section is for notation purposes only and this information will print on the recoveries report. Refer to Commercial/Retail/Fixed Recoveries as detailed later in this Section for detailed instruction on necessary setup prior to Rent Roll setup. 1) Select the Method for each pool, needed to calculate, as is applicable to the tenant, leaving those not applicable at None. Method descriptions: i) Fixed Amnt. for a flat annual amount; the amount will amortize out to 12 equal monthly estimates. (note: If you wish to enter a fixed $ PSF or monthly amount, utilize the Fixed Reimbursement Tab, creating Fixed Pools in advance.) ii) NNN for direct pass thru of expense pools iii) Base Schedule used for current base years (i.e budget file with a 2016 base year, you will select the 2016 Budget as the base schedule); also used, if you have set up additional base expense schedules iv) Base Stop used when the lease specifies a base $ PSF v) Base Amount used to enter the base total amount ; especially used with older leases and only the total is known. 132

133 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement 2) The ProRata share will automatically calculate. Kardin calculates this percentage by taking the tenant s leased RSF and dividing it by the average Building RSF (Note: if mid year adjustments to measured RSF is entered in Suites, then an annual average will calculate; you can refer to Reports/Other/Building RSF by Suites report; in multi building files, Bldg. RSF refers to Cost Center RSF.) You can manually overwrite the pro rata share, as needed. We recommend that you confirm this percentage with the lease document. The percentage will remain the same as entered here unless you actually change the reimbursement method. The percentage will not automatically change with square footage changes in the file. 3) If any methods are Fixed, enter the Fixed Amount as an annual total. Kardin will divide by 12 months to obtain the monthly budget estimate. 4) Select the Expense Code as applicable for each of the reimbursements being set up. 5) If any of the Methods are set up as Base Sched., you will need to select the Base Year/File Type that applies to the reimbursement. The corresponding schedule needs to be part of your Kardin Financials history. It can be uploaded under Leasing and Recoveries/Financials. You do have the ability to have separate base years for each reimbursement. 6) For Base Amnt. methods, enter the Base Year and the Base Amount (total pool value). The Base Amnt. method is a direct data input and does not require a base expense schedule. 7) For Base Stop methods, enter the Base Year and Base Stop ($/SF value) as per the tenant s lease. The Base Stop method is also direct input and also does not require a base expense schedule. 8) In a Reforecast (*.rf3) file, the Reimbursement Reconciliation Method is available and will default to monthly. Depending on the lease contract, you may select reconciliation method to be based on 365 or 366 days. i) Monthly = Tenant Share / 12 = monthly y amount (in a partial month = monthly amount / # of days in that month X # of days occupied) ii) 365 days = Tenant Share / 365 X # of days occupied iii) 366 days = Tenant Share / 366 X # of days occupied Note: if the actual number of days in a year is 365 and you select proration to be based on 366 days, the tenant s occupancy will be above 100% 133

134 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement c) Retail Recoveries can accommodate an unlimited amount of expense pools for each tenant. Pro rata shares and Admin Fees can be calculated for each CAM pool selected. Before setting up tenants Retail Recoveries, you must first set up Denominator Pools, Retail Charge Codes, Retail Expense Pools (as detailed later in this Section) and any applicable Retail CAPs. 134

135 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement 1) From Rent Roll, click Exp. Reimb. Then click on the Retail tab. 2) Use the pull down menu to select the Pool Name. You may select as many Pool Names as you need. 3) The Pro Rata share automatically defaults to the specific tenant s Lease RSF divided by the denominator group used in the applied pool. You may change from calculated pro rata to fixed and manually type in the desired Pro Rata%. 4) Then Tenant Amount will calculate immediately for your reference. Should the lease state a minimum recovery expense for the tenant, manually enter the Min. Amount". Note, this minimum will be calculated for the specific pool on the line entered. 5) For each pool, you can enter an Admin. Fee as a % (.10 for 10%). Clicking on Set All Admin Fee button will set admin fees, for all pools, to the percentage entered. Please note: If you have set up admin fee at the Retail Expense Pool level, setting up here will be a duplication of admin fees for the tenant. 6) For capped expense pools, select the CAP Name from the list. Note, the list needs to be created first from the Retail CAP List on the Leasing/Recoveries Menu. Select a CAP Name for each applicable pool. You may select the same CAP Name for multiple pools. Kardin will total all pools associated with that CAP Name and will adjust the total to reflect the capped amount. The Retail Recoveries Calculation report will identify the cap amount and make an adjustment to the total calculation to accommodate the cap in the net recoverable. 7) The Reimbursement Reconciliation Method box is only available in reforecast files. It will default to Monthly for all.rf3 files with less than 12 months of actuals. This feature is available for prior year recovery reconciliation in a.rf3 file that includes 12 months of actual GL data. You can select the tenant s proration of expenses to be based on 365 days or 366 days depending on the lease documentation. Note: if the actual number of days in a year is 365 and you select proration to be based on 366 days, the tenant s occupancy will be above 100%. Depending on the lease contract, you may select reconciliation method to be based on 365 or 366 days. i) Monthly = Tenant Share / 12 = monthly y amount (in a partial month = monthly amount / # of days in that month X # of days occupied) ii) 365 days = Tenant Share / 365 X # of days occupied iii) 366 days = Tenant Share / 366 X # of days occupied Note: if the actual number of days in a year is 365 and you select proration to be based on 366 days, the tenant s occupancy will be above 100% 135

136 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement d) Free Reimbursements are managed via the Rent Schedule by checking the box in the month(s) that Expense Reimbursements need to be abated to the tenant (covered earlier in this Section). In a Budget (*.cm3) file the monthly estimated Expense Reimbursement is calculated (Tenant s Share / 12 months) and the monthly amount is abated as a negative amount in the Recovery Schedules for the specific month(s) that is marked as free reimb. via rent schedule. The net affect on expense reimbursement revenue is zero for the month(s). In a Reforecast (*.rf3) file the reforecasted Tenant Share / 12 is the new monthly free reimbursement. The tenants new monthly estimate for the reforecast months is calculated: (Tenant Share Free Reimb PreBilled) / # of reforecast months. e) Fixed Recoveries allows you to set up a fixed recovery amount for a tenant. Prior to setting up tenants Fixed Recoveries, you must first create Fixed Recovery Pool(s) (refer to Fixed Recoveries, later in this Section). 136

137 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Expense Reimbursement 1) From Rent Roll, click Exp. Reimb. Then click on the Fixed tab. 2) Select the Pool Name from the pull down arrow menu. (Refer to instruction on Fixed Reimbursement Setup ). 3) Enter the Start Date. 4) Enter the amount as a $/SF/yr. or $/SF/mo. or Monthly Fixed Recovery. 137

138 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Tenant Improvement TENANT IMPROVEMENT a) A Tenant Improvement calculation can be assigned at the time that a Lease Assumption Template is applied to a vacant/expiring suite. b) To view or edit information for Tenant Improvement, click on the button under TI. c) Tenant Improvement can be enter either as a $/RSF amount or as a total amount. d) If creating a Tenant Improvement Schedule in the Rent Roll for a tenant that was not a result of an applied Lease Assumption, the payment schedule is automatically defaulted so that 100% of the tenant improvement is paid on commencement date. If you need to spread the TI over several months, you can divide up the TI into separate payments that occur before, on, or after the lease commencement date. The total of all payment percentages must be equal 100%. 138

139 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Leasing Commission LEASING COMMISSION Lease Commission calculation is divided 50% to Commencement Date and 50% to Execution Date. Execution Date will default to commencement date and can be changed a) A Lease Commission calculation can be assigned at the time that a Lease Assumption Template is applied to a vacant/expiring suite. b) To view or edit information for Leasing Commission, click on the button under LC. c) Lease Execution is automatically defaulted to the lease commencement date. If you want the budget to reflect half the lease commission being paid when the lease is executed and the other half at lease commencement, enter a different lease execution date. Lease Execution date will also determine activity on Lease Summary Reports. Kardin provides reports that track Leasing % separate from Occupancy %. e) Alternatively, you can also setup disbursement on a payment schedule, similar to TI's as detailed above. In this case, use the drop down under Payment Method, toward to bottom of the setup window, to change "Commence/Exec. Split" method to "Schedule". Enter the desired number of % payments andthe number of months before, on, or after the lease commencement date on which the payment shall occur. The total of all payment percentages must be equal 100%. 139

140 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Leasing Commission d) There are two Leasing Commission setup screens: Broker 1 and 2. If you only use one set of Leasing Commissions, then only use Broker 1. Broker 2 allows you to setup a second LC Schedule to separate in house vs. outside commissions. You can type in a Broker Name and this information will print on the Lease Commission schedules. e) Select a LC Method. Use the pull down menu to choose one of three options: Fixed Amount, $ Per SF or % of Value. Based on your selection, one of the three entry boxes will become available. f) If you selected Fixed Amount, enter the total leasing commission in LC Amount. g) If you selected $/RSF, enter the $/RSF amount in LC ($/RSF). h) If you selected % of Value, enter the leasing commission schedule in LC (% of Value). This is setup to accommodate staggered leasing commission rates. 140

141 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Notes/Accounting Key/Other NOTES This column allows you to enter any tenant specific comments. It can accommodate up to 64,000 characters of detail. Double clicking the Notes cell will show the below box to get a zoom screen for easier viewing. When typing, the text will automatically wrap to the next line. Press Ctrl Enter to get to the next line. To delete note, highlight the desired text and hit "Delete" on your keyboard. ACCOUNTING KEY This column represents the Lease or Tenant ID that was originally imported into your file (from data downloaded from accounting). The Accounting Key is optional. The benefit to keeping this data updated is for export of CAM data. In Kardin, you have the ability to export the estimated monthly recovery charges by tenant for the budget period. This data can be imported into accounting to begin billing tenants their new estimated recoveries. The Accounting Key is what identifies each tenant and is necessary for the CAM upload process to accounting. Note: A duplicate Accounting Key will create an error. Each Tenant must be identified by a unique Accounting Key. Some accounting systems will assign the same accounting key ID to a tenant that occupies multiple suites. In Kardin each suite occupying a tenant represents a separate lease, therefore requires a unique ID or Accounting Key even when the Tenant Name is the same. To bypass the error, add a digit to each Accounting Key, i.e. 01, 02, etc. to identify each. When you export the Commercial/Retail Recoveries, amend the.xls file Accounting IDs to accommodate upload into accounting system. 141

142 SECTION 4 DATA -LEASING & RECOVERIES: Rent Roll Notes/Accounting Key/Other RENT ROLL OTHER a) After you have edited your Rent Roll, you can update the Leasing Status of all of the tenants by clicking on the Refresh button. b) View All lets you view all the tenants. c) View Expirations filters the records to only the suites that have lease expirations and assumptions for those suites. d) View Vacancies filters the records to only the suites that have a period of vacancy. e) You can view errors and/or possible errors at any time by clicking on the View Errors button. 142

143 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Financials COMMERCIAL REIMBURSEMENT FINANCIALS Financials is Kardin's filing cabinet for both Current and Historical GL Data. Financials is where all prior year (historical) GL data is imported and managed for use with trend and variance reporting. Financials are also used for creating all (current and base) Expense Schedules (Pools). The ACTUAL GL data should always come from year end operating statements. These financials can be brought into the Kardin System in one of two ways: from a spreadsheet file where the information has been downloaded from accounting or from manual input. For each set of financials, you can have as many Expense Schedules as you need in order to meet all specifications of your leases (i.e. gross ups, caps and exclusions). 143

144 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Financials A. Under Commercial Reimbursement, click Financials. If you have data that needs to be recalculated, you will get a message Do you want to update the calculated leasing and financial information before you enter this section? For accurate data on the current budget, you should select Yes. If you just want to go in to view historical years not affected by the current budget, select No and it will run a minimum calculation code. NOTE: if you get the message errors and possible errors exist in your rent roll, do you want to view?, you must correct the Errors to update. Possible Errors do not need to be updated to continue. In order to get into Financials without correcting errors, select NO when asked if you want to update the calculated leasing and financial information. B. In Financials, you will see the current and historic schedules that are already part of your file and identified as different types, such as Actuals, Reforecast, Budget, "Fiscal" and "Proforma" as applicable. Building RSF, Total SF and Occupancy % automatically calculates for the current year, carries over from previous Kardin files, but can also be manually adjusted in Financials for historic schedules that carries forward or which are manually added/uploaded to a file. In a Multi Building file, you can drill down to Cost Center(s) to view and/or amend the Building RSF, Total SF and Occupancy % for each Cost Center. C. To add new financials to your file for a historical year, go to the last row in the table that has the asterisk in the first field (next available record). Type in the Year. The FileType defaults to Actuals, but you can change it by using the pull down menu and choosing the appropriate file type. Remember to enter the Building RSF, Total SF and Occupancy % in the respective fields for Financial Records that are manually added; a calculation in the view screen will identify a current $PSF and a then $PSF. D. Next click the Edit button and choose from the following two options: and. This screen allows you to choose one of two ways to get the historical information into the system. 144

145 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Financials 1. Account Level Spreadsheet Interface If you have 12 months actuals in your accounting system, you can click on the button under Account Level Spreadsheet Interface. From your accounting system, download into a spreadsheet the 12 months actuals for each GL and each Cost Center as shown below. Be sure to add column headings: PCID, ChartID, M1 M12. For Multi Bldg projects, download all entities to the same xls sheet. NOTE: Data downloaded from accounting is intended to be year end final numbers and should not be edited within the spreadsheet. This data should tie to your accounting financial statements. To accommodate tenant recoveries, you will have the opportunity to make applicable adjustments later in your Kardin file. From the spreadsheet, highlight all of the cells with data and copy them onto the clipboard. Then return to the Kardin Import Actuals from Spreadsheet screen. Click the Paste button. Click Validate Chart of Accounts to make sure that accounting has the same set of accounts as you do. Then, if necessary, click on Adjust Signs to reverse the signs for all income accounts. Then click on Upload Actuals. 2. Category Level Manual Input If you do not have 12 months of actuals for a particular year in your current accounting system, you can select this option to manually type in the category totals for the desired historic year. For Multi Building files, you will need to type in the major category amounts for each cost center (watch the left column for applicable cost center ID). Note: If you are adding schedules to be used for base year recovery calculations, but you only know a Total Base Year Amount, you do not need to add anything under Financials. Instead, the total base year amount or base year $/SF amount can be applied at the Tenant Level in the Kardin Rent Roll. 145

146 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Financials E. You can Edit an existing Financial Record, by clicking on the Edit button. An example of most common use: when next year s budget was created from current year reforecast and subsequent changes/updates were made to the reforecast file; in order to update the reforecast financial data in the next year s budget file, an import via the edit screen will need to be performed; 1. If the Data Source is Kardin (because the data rolled forward from a previous Kardin file), you will get the following message. You can click yes and then copy/paste the updated data from a spreadsheet (note: you can get the spreadsheet data by exporting from your Kardin file into Excel). 2. If the Data Source is Spreadsheet, you will get the following message: You can click yes and then copy/paste the updated data from a spreadsheet. 3. If the Data Source is Direct Input, you will be able to edit the direct entry at category level. G. You can view each year s financials by clicking the button for each year under View. If there is detail information, you can click on the button under Detail to see the Chart of Account totals for each Account Category. 146

147 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Financials H. For Multi Building files, you can Filter by Cost Center to view the financials for a specific cost center by clicking on the pull down menu and selecting the cost center. 147

148 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Codes EXPENSE CODES Expense Codes is like a list of all the different Expense Schedules needed to bill back your tenants as agreed upon in the lease contract. For example, if all the tenants in your building signed a standard lease and all reimbursement terms are the same for each tenant (with the exception of maybe the prorata share), then your Expense Codes list might show only one record. However, if expenses are billed back by charge and/or some tenants have Expense Caps, Gross Up stipulations exclusions, etc., then you will need multiple Expense Codes (one for each unique pool). In a Multi Building environment, where expense pools must be allocated by building/cost center specific expenses, create a code for each cost center, as illustrated below. A. Under Commercial Expense Reimbursement, click Expense Codes. Your Expense Schedules will be identified by a combination of the YearType (e.g. 2016Budget) and the Expense Code you provide here. We recommend providing a short name in the Expense Code column above. B. The second column, Description allows you to elaborate in greater detail what is included, excluded or adjusted for each specific code. C. The third column, Cost Centers, needs to be completed for multi building budgets only. Kardin defaults to include all cost centers. You will need to delete the record for each cost center that is not applicable to the expense code. As with all editable tables in Kardin, click the blue row selector to the left of the applicable row and hit "Delete" on your keyboard. D. 148

149 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules EXPENSE SCHEDULES This is where the various expense pools are created. All adjustments, gross ups, caps, exclusions will be addressed at this level in the Commercial Recovery setup process. Expense Schedules tie together the Financials with the Expense Code. A. After you set up the Financials (as needed) and Expense Codes, you are ready to setup your Expense Schedules. Under Commercial Expense Reimbursement, click Expense Schedules, which will bring you to the Expense Schedule List screen like the one shown above. B. To setup a new Expense Schedule, go to the first available row. In the first column, use the pull down menu to select a Year/Type, which creates a link to the schedule in your Kardin Financials section. C. In the second column, use the pull down menu and select one of your custom Expense Codes. If you are missing an Expense Code, go back to the Expense Code setup section and add codes as needed. D. The name of the Expense Schedule will become a combination of Year/Type and Expense Code selection (see column 3 above). E. Data Level will default to Category. If you wish to make adjustments to the pool at the general ledger account level, select Account using the pull down menu. For use of the Kardin Gross Up calculations, the data level must be Account. F. The Detail button provides access to the Category / Account level expenses (depending on selected Data Level), so you can make specific adjustments. 149

150 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules G. If you need to delete an expense schedule, click on the light blue record selector in front of the applicable row and press the Delete key on your keyboard. H. You may filter the Expense Schedule listing to list only Expense Schedules for a specific Year/Type or Expense Code on the bottom left of the above screen. Show All Schedules will remove any filters and list all expense schedules. Note: Each time a file is created for a subsequent budget year or a reforecast file, you must create Expense Schedules for this current period. You can either change the "Year/Type" selection for the existing schedules or, if an existing schedule is needed for a Base Schedule calculation, add a new schedule for the current period. I. Expense Schedules Category Detail 1. Total Expenses is a direct link from the Financials based on the YearType selected and cannot be edited here. If you want to change this, you will have to change the Financials. For Multi Building files, the total expenses are based on the sum of the percentage of expenses for each Cost Center you designated in Expense Codes. 2. GL Adjustments allows you to make adjustments to the GL total. For example, if your Chart of Account does not distinguish between recoverable expenses and nonrecoverable expenses, you may subtract out the non recoverable expenses here. Another example is to add in a large expense that has been amortized (for tenant recovery purposes) over a period of years. 150

151 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules 3. % Adjustments lets you to make adjustments to the GL percentage. With this feature, you may subtract out or add a percentage of the overall total expenses within the designated Expense Code. 4. In a Category Level schedule, Gross Up calculations can be calculated on a separate schedule and manually entered under GrossUp Adjust. To obtain a print out of all the expenses in order to perform the gross up adjustments, you can go into Reports / Export to Spreadsheet and select any of the budget reports and output the budget data into a spreadsheet. NOTE: Kardin can dynamically calculate GrossUP adjustments with setup via Account Level schedule. 5. Tenant Specific is reserved for adjustments that are specific to a tenant. 6. Exclude allows you to exclude an entire expense category from the recovery calculations. You can exclude all or include all categories by clicking on the applicable button at the bottom of the screen. 7. Cap Name lets you select from the Cap Menu drop down (as set up in Commercial Cap List covered later in this section) to assign an expense cap to a category. You may apply a different cap to select categories within the same schedule, or apply the same cap to multiple categories within the same schedule. Kardin will total the net recoverable for each category selected and adjust the total as per the capped amount. (i.e. if the capped amount = $100,000 and the selected categories this cap is applied to total $120,000, Kardin will adjust the net recoverable down by $20,000.) To clear a Cap Name from a field, highlight the cap field and press the delete key. Double click on a blank field to clear all caps. Double click on a populated cap field, to apply the same cap to all accounts. 8. If you have another Expense Schedule where categories are already flagged for exclusion or adjustments were already made, you can use the Copy from Expense Schedule feature located at the bottom left of the in the Detail schedule screen. The copy feature will automatically copy all manual adjustments, caps and exclusions from the Expense Schedule selected. "Copy from" feature allows the copy of setup of an existing schedule into another NOTE: After all expense schedules are set up, you can set up tenant recoveries via Rent Roll / Expense Reimbursement (see Rent Roll Expense Reimbursement earlier in this section). 151

152 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules J. Expense Schedules Account Level Shortcut buttons for easier management of Gross Up Adjustments /Amount 1. Total Expenses is a direct link from the Financials based on the YearType selected and cannot be edited here. If you want to change this, you will have to change the Financials. For Multi Building files, the total expenses are based on the sum of the percentage of expenses for each Cost Center you designated in Expense Codes. 2. By clicking on Apply Filter, Kardin will filter out all the GL Accounts with zero activity. Remove Filter will bring back all GL Accounts. 3. GL Adjustments lets you to make adjustments to the GL total. For example, you may add in a large expense that has been amortized (for tenant recovery purposes) over a period of years. 4. % Adjustments allows you to make adjustments to the GL percentage. With this feature, you may subtract out or add to the total expenses. 5. Tenant Specific is reserved for caps, exclusions and other adjustment that are specific to a tenant. It is applied after any Gross Up calculation. 6. Gross Ups is a sub screen where you may set up method of calculating grossed up expense at account level. Gross Up calculations are based on Total Expenses plus GL Adjustment column; Tenant Adjustment column is not included in GU calculation. Can use these two columns to adjust out/in amount(s) that need to be excluded from GU calculation but included with total Recoverable Expense. 152

153 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules GU Total SF will default to Building RSF as per Suites listing at time of Expense Schedule creation. If Measured RSF in Suites listing is changed/amended after an Expense Schedule has been created, the GU SF total must be manually adjusted. It can be changed as necessary. The GU Total SF is used in the gross up calculation. Enter the GU%. Occupancy % pulls from the Occupancy Report and is based on occupied suites included in Bldg. RSF. Select the Gross Up Method: Simple, Manual, Management Fee, Cleaning, or Utilities. Based on the selected method, enter the necessary Data (i.e. Fixed Cost for Simple; Avg. Annual $PSF for Cleaning; Vacant Space Consumption Rate for Utilities; Annual Rent $PSF and % Mgmt. Fee for Management Fee) to complete the calculation. Click on Update Occupancy to update the calculation. Gross Up Method Explanations based on the method selection and data entered, the following calculations will occur: a. SIMPLE GU METHOD Fixed Cost is determined by the building. It is a fixed amount that is not affected by occupancy fluctuations. 153

154 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules 1. ((GU Total SF x GU %) Occupied SF) = Average Vacant RSF ((129,750 x 100%) 124,617) = 5, Expense After GL Adjustment Simple Fixed Cost = Adj. Recoverable Expense 3,418 1,500 = 1, Adj. Recov. Expense / Occupied SF = Occupied Cost PSF 1,918 / 124,617 =.015/sf 4. Occupied Cost PSF x Average Vacant SF = Expense GU Adjustment.015 x 5,133 = 79 b. MANAGEMENT FEE GU METHOD 1) ((GU Total SF x GU %) Occupied SF) = Average Vacant RSF ((138,650 x 95%) 124,617) = 7, ) Average Vacant RSF x Annual Rent PSF = Lost Rents Due to Vacancy 7, x = 234, ) Lost Rents x Mgmt. Fee % Rate = Mgmt. Fee GU Occupancy Adjustment 234, x 3.5% = 8, ) c. CLEANING GU METHOD 154

155 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules Note: To properly calculate the gross up of janitorial expense using the cleaning method, it is important to be aware of the following: Avg. PSF Contract Rate is an Annual Rate This Rate should be consistent with the rate used in the budgeted expense account. If the budgeted expense total is greater than the Avg. PSF Contract Rate you may experience a negative GU amount. If you are budgeting vacancy credit, the rate should also be adjusted to reflect this credit. 1) GU Total RSF x GU % = Adjusted GU Occupied RSF 138,650 x 95% = 131, ) Adjusted GU Occupied RSF x Avg. PSF Contract Rate = Total GU Cleaning Costs 131, x 1.53 = 201, Note: if using User Defined Calculation to calculate Vacancy Adjustment for Janitorial Expense, the Cleaning Avg. PSF Rate will need to be blended; please be cautious of this calculation. 3) Total GU Cleaning Costs Expenses After GL Adjustment = Cleaning GU Adjustment 201, ,542 = d. UTILITY GU METHOD 155

156 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Expense Schedules Note: Consumption Rate reflects the percentage of the utility expense that will happen regardless of occupancy status; i.e. common area will require lighting even if the building is 100% vacant. 1) ((GU Total RSF x GU %) Occupied SF) = Average Vacant SF ((138,650 x 95%) 124,617) = 7, ) (Average Vacant SF x Vacant Space Consumption Rate*) + Occupied RSF = Adjusted SF Consuming Utility (7, x 15%) + 124,617 = 125,682 3) Recov. Utility Expense / Adjusted SF Consuming Utility = Adj. Occupied Cost PSF 217,562 / 125,682 = 1.73/sf 4) Adj. Occupied Cost PSF x Vacant Space Consumption Rate* = Vacant Cost PSF 1.73 x 15% =.26/sf Occupied Cost PSF Vacant Cost PSF = Utility GU PSF = ) GU Cost PSF x Average Vacant SF = Utility Occupancy Adjustment aka Utility GU 1.47 x 7, = 10, Exclude allows you to exclude an entire expense category or account from the recovery calculations. You can exclude all or include all categories by clicking on the applicable button at the bottom of the screen. 9. Cap Name lets you select from the Cap Menu drop down (as set up in Commercial Cap List covered hereafter) to assign an expense cap to each GL Account. You may apply a different cap to select accounts within the same schedule, or apply the same cap to multiple accounts within the same schedule. Kardin will total the net recoverable for all accounts selected and adjust the total as per the capped amount. (i.e. if the capped amount = $100,000 and the selected account(s) total $120,000, Kardin will adjust the net recoverable down by $20,000.) To clear a Cap Name from a field, highlight the cap field and press the delete key. Double click on a blank field to clear all caps. Double click on a populated cap field, to apply the same cap to all accounts. 8. If you have another like schedule to create, you can use the Copy from Expense Schedule feature. The copy feature will automatically copy all manual adjustments, calculations, exclusions, and notes from the Expense Schedule selected. 156

157 SECTION 4 DATA -LEASING & RECOVERIES: Commercial Reimbursement Commercial Cap List COMMERCIAL CAP LIST A. Enter a short, user defined Cap Name. B. Enter the total allowable dollar amount under Maximum Amount. If you only know the $PSF, multiply this value by the applicable total building square footage. C. Detail Description of a cap is optional and for informational purposes only. Note: After setting up a cap amount(s), these caps can be applied to the applicable Expenses Schedules as detailed earlier in this section. If there is a change to a cap, simply come back to this screen, edit the Maximum Amount, and recalculate your file. Changes will automatically flow through to the schedules to which the cap is applied. After setup of Expenses Codes, Commercial Caps and Expenses Schedules is complete, the Expense Schedules can be applied to the appropriate tenants in the Kardin Rent Roll. 157

158 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Denominator Groups Retail Reimbursement DENOMINATOR GROUPS Denominator Groups are created as a tool in the retail recoveries process to dynamically calculate a tenant s prorata share. Each Denominator Group is assigned the applicable method and parameters as per the building and lease needs; and later linked to the Retail Expense Pools. 158

159 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Denominator Groups A. Under Retail Expense Reimbursement, click Denominator Groups. B. Enter a Denominator Group Name and then click the Select Suites to Include button to select any suite(s) that should be included in a specific denominator group. C. View Suites Detail provides an analysis of the average occupancy level for each selected denominator group. D. RSF Factor (Minimum Occ%) lets you gross up a SF base in connection with calculation method "E.3." below. The minimum occupancy % (RSF Factor) will default to 100%. You will need to override this % if applicable. (i.e. If the average occupancy % = 85% and your denominator clause requires a minimum of 95% of total square feet, enter 95%. ) E. There are 4 different methods for calculating denominator square footage amounts: 1. Average RSF GLA (Gross Leasable Area) will calculate a square foot denominator that is a 12 month average of the total RSF (GLA) for the selected suites. 2. Average Occupied GLOA (Gross Leasable Occupied Area) will calculate a square foot denominator that is a 12 month average of the total Occupied RSF for the selected suites. 3. Greater of GLOA or GLA times Minimum Occupancy % will calculate the greater of E.2., Average Occupied GLOA, above or the specified minimum occupancy % as entered in "D" above. 4. Timing selected will identify the total square feet for the selected suites. The system defaults to calculating the average annual square footage starting with the Budget Start Date. When selecting a specific months from the drop down, Kardin will calculate the average annual square footage beginning with the selected month. F. The RSF Total column shows the total calculated square footage of each denominator pool based on setup selections. 159

160 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Charge Codes RETAIL CHARGE CODES A. Under Retail Expense Reimbursement, click Retail Charge Codes. B. Enter the desired Charge Code Name to identify the type of charge. The number of charge codes you can enter is unlimited and typically ties to a) the various different recovery accounts included in your chart of accounts, b) by the number of retail recovery charge codes used in your accounting system or c) both a) and b). C. Use the pull down menu to select the desired recovery income account from your Kardin Chart of Accounts. This will link your Kardin Recovery Calculation to the selected account after the Charge Code is applied to a Retail Expense Pool (covered hereafter). D. If the Charge Codes you entered are different from the recovery charge codes used in your accounting system, enter the corresponding Accounting Code. All the Charge Codes will be grouped to the Accounting Code when the Tenant s Recovery Estimate is calculated. The accounting code is used when you use Kardin Reforecast to paste in the retail recovery amount billed. This accounting code is also used in the export of estimated pre billing charges for accounting upload. Note: Kardin will create a default Accounting Code equal to the Charge Code. 160

161 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Expense Pools RETAIL EXPENSE POOLS Retail Expense Pools is where the recoverable expenses that are billed back to tenants are managed and amended. Each pool can be set up with applicable parameters and later linked to a tenant via the Kardin Rent Roll. Retail Expense Pools are intended for direct pass through of expenses only (no base year calculation method can be applied via retail recovery process). A. Under Retail Expense Reimbursement, click Retail Expense Pools. B. Enter the Pool Name and then use the pull down menu to select a charge code (which determines the link to the desired recoveries income account). You may have several pools mapped to the same charge code. Each pool name must have a charge code assignment. C. For each pool, you may use the pull down menu to select a Denominator Method by either selecting one of your custom denominator groups (Group) or manually entering a Denominator RSF (Fixed). Note: The total in the fixed schedule will be applied to the tenant 100%. If you need to setup a fixed $PSF amount, refer to Fixed Recovery Pool setup later in this Section. D. For multi building files, click the Cost Centers button and "Delete" any Cost Centers that might not apply. You can also edit the % of expenses of any cost center you want to flow into your retail expense pool (e.g. 100% of Bldg 1 and 50% of Bldg 2). E. The Original Amount column is equal the total of all recoverable operating expenses in your current budget, as defined by your Chart of Accounts. The Adjusted Amount is the total of net recoverable pool expenses. When first setting up a pool, Original and Adjusted Amount will be equal. As you are making pool specific changes under the Detail button, you will start to see changes in the Adjusted Amount value. 161

162 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Expense Pools F. Clicking Validate Pools, will prompt Kardin to analyze your existing pools for completeness/potential errors. G. The Contribution List lets you to set up an unlimited amount of different Contribution Deductions that can either have an amount that is manually entered, or be dynamically calculating recovery estimates that are tied to a specific tenant (e.g. an Anchor Contribution). Both manual and dynamic contributions can be attached under pool Detail. There are two methods: manual and linking. a. With manual, you will: Create a Contribution Name, select Manual, and type in the "Amount" to be deducted (negative amount). b. With calculating, you will: Create a Contribution Name, select Link, select the specific Tenant whose estimated recoveries should be used as the deduction amount, and select Tenant's Pool Name. Note, the Tenant's pool will already need to have been created and attached to the Tenant in the Rent Roll in order to set up and calculate the linking contribution deduction properly. Occ. Adj.: by selecting this option, Kardin will calculate an adjustment to the contribution amount based on the tenant s occupancy share: Occ. Adj. = Amount x % Occ. 162

163 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Expense Pools H. Detail button lets you make adjustments to the retail expense pools. I. From the Retail Expense Pool Detail screen, operating expenses that are used in this budget are listed by GL accounts. For multi building budgets, these operating expenses are based on the sum of the percentage of expenses from each cost center you designated earlier. J. You can make manual adjustments to expenses under the GL Adjust or Tenant Specific columns. The % Adjustment column allows you to increase/decrease the Total Expenses (including GL adjustment) which defaults to 100%. K. You may also enter a Minimum or Maximum amount for each GL account. To activate the Minimum or Maximum, enter the amount and check the box to the right of the column where you enter the amount. L. Accounts may also be Excluded. On the bottom of the form, the buttons Exclude All and Include All can help expedite the setup process if you use many accounts. M. Admin. Fee allows you to set up an Admin Fee calculation at the pool level. If different expenses within the same pool are subject to different admin fees, you can apply these varying fees in the pool detail screen (one account at a time). This also applies if only selected expenses (but not all) inside the same pool are subject to admin fees. However, if all expenses are subject to the same admin fee (meaning the admin fee is applied to the pool total), we recommend adding the admin fee at the tenant level in the Kardin Rent Roll. 163

164 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Expense Pools Also, using the Set All Admin Fee button will let you enter the same % to all expenses at the same time, which might save time. After populating admin fee for all, you can edit individual admin fees manually, as needed. If an Admin Fee is not necessary in excluded accounts, change to zero manually or amend your File Preferences (as covered in Section 2 of this Manual). N. Contribution Deductions lets you link fixed or calculating CAM pool amounts (set up previously in the Main Contributions List ) to be deducted from a specific pool. From the Pool Detail screen, click on Contribution Deductions and select the Contribution Name(s) you want linked to this pool. 164

165 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Expense Pools O. By clicking on the Apply Filter, Kardin will filter out all the GL accounts with zero activity. Remove Filter will bring back all GL accounts. P. If you have a standard retail expense pool and need to make minor alterations to that standard for specific tenants, you can build a standard retail expense pool first and then Use the Copy From Retail Pool feature to build the remaining pools. NOTE: Completed Retail Expense Pools are applied to the appropriate tenants in the Kardin Rent Roll under Expense Reimbursement Retail (see Rent Roll earlier in this section). 165

166 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Cap List RETAIL CAP LIST Retail CAP List is used to set up caps that can be linked to the tenant s expense reimbursement pool via the Kardin Rent Roll. Choices are $/SF or total amount and represent a tenant's maximum allowable annual expense. There is no limit as to how many caps can be setup in the Retail Cap List table. A. From the file main screen, click "Leasing and Recoveries" and then "Retail Cap List". B. Enter a Cap Name. C. Select a Cap Method: PSF or Amount D. If the selected method is PSF, populate the Cap RSF field by typing in the tenant's maximum $/SF amount. If the method is Amount, populate the Maximum Amount field by typing in the tenant's total amount. E. The Description is optional and for information purposes only. 166

167 SECTION 4 DATA -LEASING & RECOVERIES: Retail Reimbursement Retail Cap List Retail Caps are attached at the tenant level in the Kardin Rent Roll under Expense Reimb. / Retail. As detailed earlier in this Section, the list of available caps can be accessed and applied by using the pull down menu in the Kardin Rent Roll. If there is a change to a cap (e.g. 5% over previous year), simply come back to this screen, edit the Cap RSF or Maximum Amount (as applicable), and recalculate your file. Changes will automatically calculate and reflected in the tenant's recovery estimates. 167

168 SECTION 4 DATA -LEASING & RECOVERIES: Fixed Reimbursement Fixed Recovery Pools Fixed Reimbursement FIXED RECOVERY POOLS Fixed Recovery Pools allows you to set up pools for fixed recoveries at either a monthly or annual $PSF charge. The $PSF amounts are entered at the tenant level in the Kardin Rent Roll under Expense Reimb. / Fixed. A. From "Leasing and Recoveries", click on "Fixed Recovery Pools". B. Enter a Pool Name. C. In the ChartID field, use the drop down menu to select an appropriate GL Account for fixed recovery income to setup the desired link. The Fixed Recovery Pools table accommodates an unlimited amount of pools. See "Rent Roll" earlier in this Section for details on applying the Fixed Recovery Pools to a tenant. 168

169 SECTION 4 DATA -LEASING & RECOVERIES: Percentage Sales Monthly Spread List Percentage Sales MONTHLY SPREAD LIST Monthly Spread List lets you setup percentage spreads that can later be applied to a tenant s estimated sales during Percentage Sales set up in the Kardin Rent Roll. A. From "Leasing and Recoveries", click on "Monthly Spread List". B. Enter a Name under Name of Spread. C. Enter the percentage for each month (M1 thru M12). Each spread must Total 100%, but monthly allocations are custom and can be 0% for select months. The spread and its monthly % allocations can be applied to a total annual estimated sales value of a tenant in the Kardin Rent Roll. The Monthly Spread List table can accommodate an unlimited amount of custom spreads. See "Rent Roll" earlier in this Section for details on applying a Monthly Spread during Percentage Sales Rent setup. 169

170 SECTION 4 DATA -LEASING & RECOVERIES: Indexes CPI Index Indexes CPI INDEX This section allows for setting up the CPI base and consecutive years and their corresponding index. You will need to project the index for the budget period. You will then apply these indexes to the applicable tenant(s) via the Kardin Rent Roll. A. From "Leasing and Recoveries", click on CPI Index. B. Enter the Year (YYYY). If you have multiple indexes per year or even month, use the following formats: a. Multiple indexes per year include a two digit month designation, such as YYYY.MM b. Multiple indexes per month include a two digit month designation, add number sequence to the end, such as: YYYY.MM1, YYYY.MM2, etc. C. Enter the published CPI Index for each period. For future periods, enter the projected indexes. You will need to create one for the budget period and one for each prior period thru the base period. After CPI Indexes are setup, they can be applied to the appropriate tenants in the Kardin Rent Roll under Rent Sched. / CPI, as further detailed under Rent Roll CPI Rent earlier in this Section. 170

171 SECTION 4 DATA -LEASING & RECOVERIES: Indexes Porter s Wage Index PORTER S WAGE INDEX This section lets you setup the Porter s Wage indexes that will be used for calculating Porter s Wage Revenue. You will later apply these indexes to the applicable tenant(s) in the Kardin Rent Roll. A. From "Leasing and Recoveries", click on "Porter s Wage Index". B. Enter an Index Name at the top. Note, using the small arrows at the bottom of this window will allow you to create an unlimited amount of Porter's Wage indexes, provided each Index has a unique name. The arrows are also used for navigating existing indexes. C. Enter the Year and Pwage Rates. D. To delete a year, click on the gray record selector to the left of Year and press the Delete key. E. To delete the entire Index, click on the gray record selector for the Index and press the Delete key. 171

172 SECTION 4 DATA -LEASING & RECOVERIES: Linking Files Linking Files Linking Kardin Files has two main applications, they are: A. Syncing Leasing Data from the current year reforecast with next year s budget B. Creating a Multiple Year Budget IMPORTANT NOTE: When e mailing/sharing a file that has linked data, it is important to make a backup of the linked file. Then go into the backup file and un link the file prior to sending the backup file to an associate or an owner. Otherwise, the recipient will likely encounter errors and/or lose the updated leasing data. A. Sharing Leasing Data for the current year reforecast and next year s budget 1. From your current year reforecast, create next year s budget. 2. Open next year s budget and under Leasing and Recoveries, link the budget file to your current year reforecast file. 3. Under Leasing and Recoveries/Expense Schedules create a new set of next year s budget expense schedules. Do not overwrite the current year Reforecast Schedules, as this will replace the currently active schedules in your reforecast file as well, 172

173 SECTION 4 DATA -LEASING & RECOVERIES: Linking Files some of which might also be needed for current year base schedules. Remember to adjust caps, CPI list, etc. as applicable. 4. Update your Leasing information (Suites & Rent Roll). Under Rent Roll, do not delete any Tenants with current year expirations! Although this information might no longer be needed in next year s budget, the linking function will delete the Tenant in your current year Reforecast file as well. Complete next year s budget as applicable. Note: While the two files are linked, any changes to either file will be reflected in the other. Next year s budget may be updated by linking any consecutive (e.g.: 3 rd Qtr. or year end) Reforecast to the Budget file, as needed/desired. 5. To un link the files, go to the linked file (in this case next year s budget) and make a backup. Then open the backup file and un link the files. Now, next year s budget will have a duplicate version of the leasing information, but it will no longer be linked to the current year reforecast source file. When e mailing a file to someone else, it is recommended to un link the file(s) before sending. B. Creating A Multiple Year Budget (E.G.: 5 Year Budget) 15. Complete Year 1 of your property s Budget (e.g. 2016) 16. Via Windows Explorer (or Windows Program Manager File menu), locate Year 1.cm3 file. 17. Copy the Year 1. cm3 file (using the menu or Ctrl C and Ctrl V), creating 4 additional files (or however many additional year s you need to Budget). 18. Rename the additional files (e.g.: Year 2 = 2017.cm3; year 3 = 2018.cm3; year 4 = 2019.cm3; year 5 = 2020.cm3, etc.). 19. Open the Kardin Budget System. 20. Open Year 2.cm3 file. 21. Via PROPERTY INFORMATION, change the beginning Budget date to current year, e.g.: 1/1/2016. (Refer to Section 3 of the User Manual) 22. Via LEASING AND RECOVERIES, link this file to Year 1.cm3 file. (Refer to Section 4 of the User Manual) 173

174 SECTION 4 DATA -LEASING & RECOVERIES: Linking Files 23. Via EXPENSE SCHEDULES, add additional schedules for the current Budget period (one for each expense code that exists). (Refer to Section 4 of the User Manual) 24. Via RENT ROLL, apply LEASE ASSUMPTIONS for expiring and/or vacant spaces. (Refer to Section 4 of the User Manual) 25. Via BUDGET INPUT (covered in Section 5), update non calculating accounts (this file is a direct copy of year 1), OR, 26. Via PERCENTAGE INCREASE (also covered in Section 5), increase non calculating accounts by a percentage. (Refer to Section 5 of the User Manual) 27. View REPORTS. Close File. (Refer to Section 6 of the User Manual) 28. Open each additional file and begin back at Step 7. (Note: in Step 8, link each additional year back to Year 1) 174

175 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview (Multi Family Budgets and Reforecasts) Leasing and Assumptions Overview The Kardin Multi Family Leasing and Assumptions section projects the income stream by starting with Gross Potential Rent, then subtracting a calculated Loss to Lease, Vacancy Rent, Model, Employee, Office/Maintenance and Down Unit rents to obtain rental income. Keep in mind that leasing revenue is calculated based on a market average combined with the lease assumption parameters that are developed in the file; unlike commercial property files where revenue is specific by lease. From the Main Menu, click Leasing and Assumptions. This brings you to the Leasing and Assumptions menu. Each button serves the following functions: Import Unit Information allows you to copy and paste in current rent and market rent information for each apartment unit as of the date you are doing the download from your accounting system. This process will be utilized in the initial set up of a property file and can be used later when updating a subsequent year s file. V. 35.xx Updated January

176 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview Market Rent Increases allows you to set up and adjust inflationary rates for market rents for an 18 month period. Assumptions made here adjust the monthly Gross Potential Rent. Rent Roll takes the data imported from accounting (under Import Unit Information) and calculates the starting average market rent and starting average current rent for each unit type. The Rent Roll also allows you to edit the unit status of each unit and enter unit costs such as leasing commissions and maintenance items. Actual Rents allows you to setup average monthly rents for both New and Renewal Tenants, which can either be entered as a) assumed % of average market rent or b) by entering the amount. The Loss to Lease Calculation is adjusted by the difference between the assumed actual rents and current rents. Occupancy Assumptions lets you apply assumptions on occupancy levels regarding lease expirations, renewals and move outs unit. A lease renewal option is given and you may select % of expirations or monthly amount. Turnover Costs allows you to set up user defined assumed turnover costs that can be calculated based on move outs, move ins, or renewals and linked to the applicable GL account(s). Concessions/Delinquencies allow you to setup the projections for one time and recurring concessions, as well as delinquencies. Financials allows you to import or input financial information from historical years for comparative analysis. Economic Occupancy Numerator and Economic Occupancy Denominator allows you to select the applicable revenue GL accounts to include in the numerator and denominator calculation of Economic Occupancy Rent. Calculation Start Month allows you to select the Current month to begin Occupancy Assumption Calculations. Occupancy assumption calculations can begin as early as 6 months V. 35.xx Updated January

177 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview prior to the budget start date for a maximum 18 months occupancy tracking. Select the Calculation Start Month to be the month of creating the budget or reforecast file. The imported Unit information will assume to represent the Calculation Start Month. Calculate NonRentable Rents calculates rents for non rentable units, i.e. model, employee, etc. Do Not Calculate NonRentable Rents will exclude the calculation of rents for non rentable units, i.e. model, employee, etc. from the linking GL account; however, the supporting schedule will still be available if NonRentable Units exist in Occupancy Assumptions. Vacancy Denom. = Total Units calculates occupancy based on total units including model, employee, office, or down units. The vacancy numerator is adjusted so that the vacant % calculation is: (vacant units + move out units move in units + down units)/total units. Vacancy Denom. = Rentable calculates vacancy with rentable unit total as the vacancy denominator (excluding model, employee, office, or down units). The vacancy numerator is adjusted so that the vacant % calculation is: (vacant units + move out units move in units)/rentable units. V. 35.xx Updated January

178 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview V. 35.xx Updated January

179 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview Import Unit Information IMPORT UNIT INFORMATION There are two tabs located on the top of this screen: Units and Unit Status Codes. These two interfaces allow you to paste information from Excel or any other spreadsheet, which can be downloaded from your Accounting System or any other database that stores unit information. If you are manually inputting the information, we recommend typing it into a spreadsheet first and then upload it into Kardin. New File vs Current File use. The unit data upload process can be used when setting up a property for the first time, and it can also be beneficial when updating the Rent Roll in an existing Kardin file. In the process of updating, Kardin replaces all the data in the Kardin Rent Roll with the import data. Note: updating the rent roll with most current rents is advisable as this data will give you a more accurate starting point with your lease assumptions, and your beginning Loss to Lease calculation in Kardin should then equal the ending Loss to Lease calculation from accounting. A. Units 1. First, prepare a spreadsheet in Excel that looks like the one shown on the following page. You can download the data from accounting or you can manually create the spreadsheet with nine columns. In the first column, identify the Property ID (as entered in Kardin Property Information) with column heading PropID. The second column is the unit type under the column header V. 35.xx Updated January

180 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview Import Unit Information 2. UnitType. The third column UnitDescription is for your informational purposes and can be completed here or later. In the next column, put all your unit numbers for the budgeted property under the column header Unit. The next four columns RSF, MarketRent, CurrentRent, and UnitStatus must be completed accordingly for each unit. The last column Amenities is optional. 3. In Excel, highlight all nine columns including amenities, even if no data exists. Use Edit/Copy or (Ctrl C) to copy the records onto a clipboard. 4. Next, return to the Import Unit Information screen under the Unit tab. Click on the Paste button. V. 35.xx Updated January

181 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview Import Unit Information B. Unit Status Codes Unit Status Codes are typically used in your accounting system to differentiate between the status of various units such as Rentable, Model, Office/Maint., Employee, Down. Enter the codes as used in your upload data. Although you are not required to fill in all blank fields, you must complete at least one as shown below. Also, you cannot have more than one code per category. If your data has multiple codes for the same category, you could adjust the codes to create one code that applies to all units in that category (e.g. Model = M1 and M2; consolidate to M1&2) C. Validate Data and Upload to Budget 1. After you copy and paste the unit data into the Kardin Import screen, click on the Validate Data button and the system will check the information to make sure it is valid. If any errors are found, the Error indicator will be tagged and an Error Message will appear next to the item with the error in Units. To view the error messages, you will need to click on the box next to the Error indicator. V. 35.xx Updated January

182 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview Import Unit Information 2. To print out a list of errors, click Errors Report at the bottom of your screen. 3. To correct errors, you can edit the information in any of the cells that are white. Gray cells are not available for editing. To delete a record, you can click on the light blue record selector box to the left of each row and press the Delete key on your keyboard. After you have made your changes, repeat the Validate Data process until no more errors are found. Once all the errors are cleared, the Upload Budget button becomes available. 4. Click the Upload Budget button. The system will first ask you if you want to make a backup. You will be prompted when upload is complete. After completing the upload, the information stored in the Units import screen will clear out and instead be populated in the Kardin Rent Roll. Units will be summarized by Unit Type. You can view the individual units by clicking on the button in the Unit Detail column. V. 35.xx Updated January

183 SECTION 4A DATA LEASING AND ASSUMPTIONS: Leasing and Assumptions Overview Market Rent Increases MARKET RENT INCREASES Market Rent Increase allows you to set up as many market inflationary rates as you need for the different Unit Types. After setting up an inflationary rate schedule, you can apply it to as many different Unit Types as need in the Rent Roll. Kardin takes the starting Average Market Rate and applies the inflationary market rates, as entered here, to calculate monthly Gross Potential Rent. From the Leasing & Assumptions menu, click Market Rent Increases. The beginning month to edit/enter data will be the month following the Calculation Start Month, as selected from the pull down under Calculation Start Month in the previous screen. The calculation start month and all prior months will be zeroed and non editable. Market Rent Name is User Defined, meaning you create the name that best describes the market rate record being created. A. Enter the Market Rent Name. There is no limit to how many schedules can be added, provided each has its own unique name. B. Enter a dollar increase in the month(s) you expect the market rate to change. Kardin will calculate the new rent(s) based on the number of units this increase is assigned to in the Rent Roll. V. 35.xx Updated January

184 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll RENT ROLL The Rent Roll provides a snapshot of the market rents and current rents at the time your budget is being prepared. When you use Import Unit Information, Kardin automatically groups units into a Unit Type category and calculates the Number of Units, the Average Square Footage, the Average Current Rent and the Average Market Rent for Each Unit Type. These fields are displayed when you open Rent Roll. The Rent Roll allows you to edit the unit data at the detail level and allows you to assign the applicable Market Rent Increases to each Unit Type. A. After importing unit information, Kardin automatically groups units into the imported Unit Type category and calculates the number of units, total square footage, average square footage, average current rent and average market rent for each Unit Type. These fields are displayed in the Rent Roll. You may add an additional Unit Type record, go to detail and add the applicable units associated with this type. Unit Detail is the drill down level for manual additions/amendments for each unit. B. You may amend each Unit Type name. You may add/amend each Unit Type Description. You may amend each unit by way of the UNIT DETAIL button. In this screen, you can change existing units or add more records to the bottom of the list, being careful to not use a duplicate unit number/name as hasalready been used for another unit. V. 35.xx Updated January

185 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll 1. From the Unit Detail screen, you can change the Unit Status from Rentable to Non Rentable : Employee Unit, Down Unit, Office/Maint Unit or Model Unit. This will update the non rentable unit status in Month 1 of the Occupancy Assumptions. Amenities: notes for informational purposes; prints on Rent Roll Detail schedule. C. In the Rent Roll screen, use the pull down menu to select a Market Rent Increase schedule. Each unit type may have a different inflationary market rate increase. Gross Potential Rent will automatically adjust accordingly. V. 35.xx Updated January

186 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Actual Rents ACTUAL RENTS Actual Rents allows you to set up rents per unit for both New and Renewal Tenants, which can either be entered as a) assumed % of average market rent or b) by entering the amount. In this set up, you can assume actual rents for lease turnovers and renewals based on the method of choice. The beginning month to edit/enter data will be the Calculation Start Month. The first month will represent the selected month from the pull down under Calculation Start Month in the previous screen. All prior months will be zeroed and non editable. A. Kardin displays the Average Market Rent per Unit, calculated from the Rent Roll data. B. Kardin will calculate the Actual Rents according to the selected method. % of Market Rent will be based on the % entered times the Average Market Rents. Select method and enter data for each: New Tenants and Renewal Tenants. 1. % of Market Rent Per Unit allows you to enter the % of turnover based on market rent per unit. You can enter the % in each month; however double clicking on any box will give you a repeat entry and Kardin will spread the % to the last period. Note: this would be a % of the average market rent per unit. For instance, if you assume to lease a new tenant or renew an existing tenant at 100% of market, you will enter 1 in the box. You can enter less than 100% (e.g. 95% entered as.95) OR you may enter higher than 100% (like 110% entered as 1.10) if you assume rents to be higher than the average market rent. Kardin will then calculate the monthly amount per unit. 2. Monthly Amount allows you to enter the actual Per Unit average amount at which you expect to renew the tenant or a monthly unit amount to lease to a new tenant. You also have the V. 35.xx Updated January

187 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Calculation Start Month ability to repeat amounts by double clicking in any month. When you enter the amount, Kardin calculates the % of market rate. 3. Refresh will update the calculations based on your selections and entries. The Loss to Lease Calculation is adjusted by the difference between the assumed actual rents as calculated here and the current rents as defined in the rent roll. CALCULATION START MONTH Calculation Start Month allows you to select the Current month to begin Occupancy Assumption Calculations. Occupancy assumption calculations can begin as early as 6 months prior to the budget start date for 18 month occupancy tracking. Select the Calculation Start Month to represent the month of creating the budget or updating the reforecast file. When producing a calendar year budget, M1 refers to January of the budget year and P7 refers to July of the prior year. Prior year is typically the year in which you are producing the budget file. The calculation start month should represent the month that you are creating the file and importing the Unit Information (with current rents). i.e. if creating a 2016 calendar year budget in August of 2015, you would select P8 as your calculation start month and upload unit information that was pulled from accounting in August this would allow you to begin with most current information and project occupancy assumptions going forward into the budget period. V. 35.xx Updated January

188 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Calculation Start Month A. From the Calculation Start Month pull down menu, select the month to represent today s date: P7, P8, P9, P10, P11, P12 (year prior to budget year month 7 thru month 12), M1 thru M12 (budget period month 1 thru month 12). B. In a Budget *.cm3 file, most common selection will be P7 P12 because typically the budget is created 1 6 months before the budget period begins. C. In a Reforecast *.rf3 file, the selection will be M1...M12, depending upon what point in the budget period you are now reforecasting. If working on a 1 st quarter reforecast, you should bring in 3 months of actual GL data and the current unit information pulled from accounting should be in April therefore your Calculation Start Month should be M4. Note: Entry screens for Market Rent Increases, Actual Rents, Occupancy Assumptions and Concessions/ Delinquencies will all be affected by the Calculation Start Month. V. 35.xx Updated January

189 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Occupancy Assumption OCCUPANCY ASSUMPTION Occupancy Assumptions allows you to make assumptions on occupancy levels regarding non rentable units, lease expirations and/or renewals, and turnover units. After you have viewed the Rent Roll, enter occupancy assumptions beginning with the month following the Calculation Start Month through to the last budget month. A. In the Occupancy Assumption screen the cells in white can be edited. The cells in gray cannot be edited, as they are calculations by Kardin. Click on the Update button at the bottom of the screen any time you want to update your entries within the Kardin System. B. The first month will represent one month after the selected month from the pull down under Calculation Start Month in the previous screen. All prior months will be zeroed and non editable (grayed out). C. The first month (or Calculation Start Month) of Non Revenue Units will pull from the Rent Roll. You will need to enter the applicable data in the remaining months for each nonrevenue unit type. Note: Non Revenue Unit(s) Rent Calculation results in a negative amount and is assumed to be linked to a revenue GL account. When linking Non Revenue Unit calculations to an expense GL account, please create a User Defined Calculation to adjust the total (use Selected Expense Accounts with a factor of 2) 1. Non Rentable Units will affect Vacancy unit total o Adding a Non Rentable Unit will Decrease Total Vacant Units Decrease Total Rentable Units Increase Total Non Rentable Units No change to Total Occupied Units o Decreasing a Non Rentable Unit will Increase Total Vacant Units Increase Total Rentable Units Decrease Total Non Rentable Units No change to Total Occupied Units V. 35.xx Updated January

190 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Occupancy Assumption D. Enter the Total Vacant Units for first month (or Calculation Start Month). E. Select the Lease Renewal Method 1. Monthly Amount allows you to enter the Lease Renewals # of units assuming to renew each month. 2. % of Expirations allows you to enter a percentage of expirations that you assume to renew each month. F. In any of the rows in white, you can double click in a cell to use the REPEAT MONTH function to extend the amount entered through to the end of the budget period. F. Lease Expirations and Total Move Ins. You will need to enter the # of units on a monthly basis that you assume are going to expire; and, you also need to enter the assumed monthly move ins. Move Outs will automatically calculate based on the renewal assumptions. G. Vacancy % is dependent upon Vacancy Denominator Selection (as previously addressed in this section) 1. If Vacancy Denom. = Total Units, the Vacancy % formula is: ( Vacant Units + Move Out Units Move In Units + Down Units) / Total Units 2. If Vacancy Denom. = Rentable, the Vacancy % formula is: (Vacant Units + Move Out Units Move In Units) / Rentable Units H. Occupancy % is also dependent upon the Vacancy Denominator Selection 1. If Vacancy Denom. = Total Units, the Occupancy % formula is: (Total Occupied Units + Model Units + Off/Maint. Units + Empl Units) / Total Units 2. If Vacancy Denom = Rentable, the Occupancy % formula is: Total Occupied Units / Rentable Units V. 35.xx Updated January

191 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Turnover Costs TURNOVER COSTS Turnover Costs allows you to set up user defined assumed turnover costs that can be linked to moveouts, move ins, or renewals. Each turnover cost calculates automatically and links to the assigned GL account for budgeting. A. Create a Turnover Name (as in the example above). Each Turnover Name must be unique. Kardin will not allow duplication. B. Enter the dollar amount you assume per turnover unit. C. Enter the Percent of Turnover. If you assume 100% of turnover units to assume the cost, enter as 1.0. If you assume 95% of turnover units to assume the cost, enter as.95. D. Select the Turnover Type from the pull down menu. Choices are Move Outs, Move Ins, or Renewals. E. Select the Chart ID from the pull down menu. This will be the GL account that you wish the cost to be budgeted to. V. 35.xx Updated January

192 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Concessions & Delinquencies CONCESSIONS & DELINQUENCIES Concessions and delinquencies will calculate based on data entered. The calculated total will be budgeted as a contra (negative) amount in the GL Account as assigned via COA Links to Budget. Concessions allows you to setup the projections for one time concessions and recurring concessions. NOTE: In any of the rows in white, you can double click in a cell to use the REPEAT MONTH function to extend the amount entered through to the end of the budget period. The beginning month to edit/enter data is driven by the Calculation Start Month. All prior months if any, will be zeroed and noneditable. One Time Concessions: A. Enter the Concession amount for New Move Ins and for Renewals. Note: this is a per unit amount. B. Next, set up the % of Move Ins and/or Renewals you estimate to receive a concession. Kardin will take the assumed leased unit total and based, on the % you enter, will calculate a concession for those units. This calculation will link to the One Time Concession Account as defined in COA Links to Budget. Example: If you assume $120 per move in in January, 35% of all move ins (as assumed in Occupancy Assumptions) will get a $120 concession. V. 35.xx Updated January

193 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Concessions & Delinquencies Recurring Concessions is a calculation to accommodate tenant concessions that re occur monthly. C. Recurring concessions are entered with a Starting Concession %. Then Recurring Concessions are assumed for Move Ins, Renewals and Move Outs. 1. Enter a % for the assumed Move Ins that will receive recurring concessions ; then enter the % of Average Turnover Rents to be calculated. (Note: Average Turnover Rents are calculated from the assumptions in the Actual Rents screen) 2. Enter a % for the assumed Renewals that will receive recurring concessions ; then enter the % of Average Renewal Rents to be calculated. (Note: Average Renewal Rents are calculated from the assumptions in the Actual Rents screen) 3. Enter a % for the assumed Move Out Burnoff concessions and the % of Average Current Rents to be calculated. V. 35.xx Updated January

194 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Concessions & Delinquencies CALCULATED RECURRING CONCESSION EQUALS {(TOTAL PROPERTY REVENUE x STARTING CONCESSION % RENT) PLUS [(((TOTAL MOVEINS x % MOVEINS w/concessions) x AVG TURNOVER RENTS PU) x MOVEIN CONCESSION % RENT) PLUS V. 35.xx Updated January

195 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Delinquencies Delinquencies allow you to setup the projections for delinquencies based on an assumed percentage of total potential rent. D. Enter the DELINQUENCIES % OF TPR (TOTAL POTENTIAL RENT). If you assume that 3% of all rents to be budgeted as delinquent, enter.03. This calculation will link to the Delinquency Account as defined in COA Links to Budget. V. 35.xx Updated January

196 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Financials FINANCIALS Financials is considered a filing cabinet of historical financial data. Actual Financial data should always come from year end operating statements. Prior Year Budget and Reforecast data can be brought into the Kardin System in one of two ways: xls download from accounting or manual entry. The Financials are used for comparative analysis and trend reporting. You may update prior year data that originated from a Kardin File source, by importing from a spreadsheet. This will be most common in updating the Reforecast data when working with the next year budget. Select the Edit button and say yes to update data via spreadsheet import; then paste in from a spreadsheet, validate and upload. A. From the Leases Menu, click Financials. If you have data that needs to be re calculated, you will get a message Do you want to update the calculated leasing and financial information before you enter this section? For accurate data on the current budget, you should select Yes. If you just want to go in to view historical years not affected by the current budget, select No and to bypass the calculation. B. Once in Financials, you will see a screen like the one shown above. This is similar to a filing system that keeps track of all your year end operating statements. For example, you can have one set of financials for 2009 Actuals, 2010 Actuals, 2011 Reforecast and 2011 Budget. We also track the Building RSF and Occupancy level for every year. F. To setup/add new financials for a historical year, go to the last row in the table containing the asterisk. Type in the Year. The FileType defaults to Actuals, but additional file type options are available from the drop down. Building RSF, Total SF and Occupancy % must be manually entered for each historic schedule. However, these values are actively calculating for the current period. V. 35.xx Updated January

197 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Financials C. To edit/enter financial data, click the button under Edit. If there is no financial data for the year, the Financials Source Selector screen appears with two options: Account Level Spreadsheet Interface (monthly GL totals available in xls format) and Category Level Manual Input (manually enter report subtotals/summary level). 1. If you have 12 months actuals in your accounting system, you can click on the button under Account Level Spreadsheet Interface. From your accounting system, download into a spreadsheet the 12 months actuals for each GL as shown below. 2. From the spreadsheet, highlight all of the cells containing the gl data and copy them onto the clipboard. Then return to Kardin Budget s Import Actuals from Spreadsheet screen and click the Paste button in the lower left hand corner. 3. Click Validate to make sure that accounting has the same set of accounts as you do. Then click on Adjust Signs to reverse the signs for all income accounts (Note: only if the income data is negative as illustrated). Then click on Upload Actuals. D. If you do not have detailed 12 months of actuals for a particular year in your current accounting system, you can manually enter summary level values under Category Level Manual Input. Just note that "Detail GL level" comparison reports will not be available when entering historic values this way. V. 35.xx Updated January

198 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Financials E. You can view each year s financials by clicking the button for each year under View. If there is detail information, you can click on the button under Detail in the Property Financials Summary View Mode to see the Chart of Account totals for each Account Category. V. 35.xx Updated January

199 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Economic Occupancy Numerator and Denominator ECONOMIC OCCUPANCY NUMERATOR AND DENOMINATOR Each function allows you to select revenue accounts from your Kardin Chart of Accounts which you want Included in the Numerator and Denominator calculation. All General Ledger accounts Included in the Numerator will be divided by all General Ledger accounts Included in the Denominator. V. 35.xx Updated January

200 SECTION 4A DATA LEASING AND ASSUMPTIONS: Rent Roll Economic Occupancy Numerator and Denominator Accounts can be included or excluded one at a time by using the checkboxes in the last column, "Include". For bulk inclusions and exclusions of all accounts, use the Exclude All and Include All buttons at the bottom of the screen. The final calculation appears on the Occupancy Projection report (see "Reports and Export/Leasing" tab). V. 35.xx Updated January

201 SECTION 5 DATA OTHER: Budget Input Budget Input From the File Main Menu, click on the Budget Input button. Every account in the Chart of Accounts has a data input screen. To locate the Account you want, use any one of the following methods: A. Use the buttons under Go To Account to select the First, Previous, Next, or Last Account. B. Enter the Account ID in the box below Search by Account ID or use the pull down menu to select from a list ordered by Account ID. C. Enter the Account Name in the box below Search by Account Name or use the pull down menu to select from a list ordered by Account Name. 201

202 SECTION 5 DATA OTHER: D. "Show Financials" toward the bottom left of the screen allows you to select historical financials to create a line of totals from that financial year. This can be a useful form of reference when updating current income and expense values. E. Data Entry 1. Once you have the correct GL account displayed, you can begin entering budget descriptions and amounts for this account. If you are working in a multi building type file, first select an allocation by using the pull down menu, then enter your budget descriptions and their amounts. Single building files do not require the selection of allocations. Multi Building file type requires the selection of Allocation for each record. Allocations are created in Property Information 2. The Notes box in the top right corner of the screen allows you to type a summary narrative for the selected GL account. The note entered prints out on the Budget Explanation Report. Text entered in the "Description" box will display in the GL Sched. Budget Input reports. Both text boxes can be double clicked to open a "Zoom" box that displays more text at a time. Both can hold approximately 64k characters of detail. 202

203 SECTION 5 DATA OTHER: Budget Input General GL account notes and detail/subaccount level notes Single or Multi Family file type. 3. Descriptions and amounts are entered for each record (line item). You can have multiple records within each GL account. In the example blow, there are 5 records for the GL account Landscape. 4. For Multi Building Files, you may enter values by cost center or custom expense splits (Allocations as set up under Property Info/Budget Year). Select the desired allocation from the Allocation drop down before entering a value. 203

204 SECTION 5 DATA OTHER: Budget Input 5. To enter a line item description, click on the Description box and begin typing. When double clicking in the Description box, Kardin opens up a "Zoom" box that displays more text at a time. The Description box can accommodate approx. 64k characters in total. If you wish to start a new line within the zoom box, press Ctrl Enter, otherwise the text will automatically wrap. Line item descriptions appear on the detail GL Schedule reports. 6. All income and expense items should be entered as positive values unless it is a negative of its type, (i.e. a negative expense or a negative income). Amounts can be entered in three different ways. a. You can enter amounts in each monthly box. b. You can also enter an annual amount by double clicking the yellow total cell. If you enter an annual amount, all the monthly amounts will be adjusted to 1/12 the total. c. Lastly, you can repeat an amount for several months by double clicking on the applicable month, then enter the amount in the dialog box that opens and click OK. 7. You can sort your records within this GL account in a different order than was originally entered. Type in a number or letter under the Sort column in the order you want the records to be sorted and click on Sort. Kardin will sort the data based on the first digit of the sort number; therefore if you have more than 9 records, you may want to begin the numbering: 01, , 10, etc. To re sort the records, enter the numbers in the sort box. Kardin recognizes alphanumeric: 1, 1a, 2, 2a, etc. 204

205 SECTION 5 DATA OTHER: Budget Input 8. All records are available for editing except those that are linked. Linked records are those originating from automatic calculations that have been set up in the file (i.e. Rents, recoveries, tenant improvements, etc.). 9. When working in a Reforecast file, the month s labeled Actuals will be locked (no data entry allowed). To reforecast future months (labeled Reforecast ), you can edit the amounts in the original record and you can add additional line items values as well. 10. To delete any record, click on the light blue record selector box to the left of the record and press the delete key on keyboard. F. Clear All Data Clear All Data function will delete all records for ALL GL Accounts (not just values and descriptions in the GL account currently displayed). This feature could be used to delete all entries copied over from another file during the creation of next year s budget file. It is useful when beginning with a zero based budget. 205

206 SECTION 5 DATA OTHER: Budget Input You will receive a couple of warning messages when clicking the "Clear All Data" button to help protect you from accidental loss, such as the following: Note: all linked data will initially clear out, but when the file is update via reports, the automatic calculations will re link to the GL accounts. G. Import Data from Kardin File 1. Import data from Kardin File allows you to import budget data from one Kardin file into another. It allows many people working on different sections of a single budget to combine all their work. This feature will copy over description(s) and Notes narratives for all selected accounts. 2. Click Import Data from Kardin File. It will first ask if you want to make a backup of your current file before updating. You are ADVISED to make a backup before you use the Budget Update feature. To make a backup, press YES at prompt, and then enter the name for the backup file. Click NO to bypass the backup option. 3. Next, navigate to the location where that file is saved that contains the income/expense items you wish to add to your own file, select the file, and click OK. 4. Then select the accounts containing the data that you want to import (see below screenshot). After you have made your selection of accounts you want to import, click Update Budget Data. For the selected accounts, Kardin will replace the budget information in your current file with the budget information from the selected file. 206

207 SECTION 5 DATA OTHER: Budget Input 5. After selecting the desired accounts, you will be asked if you want to view a report of the changes, which will also allow you to print out a list of changes. H. Import Data (Accounts) from Spreadsheet Import Data from Spreadsheet allows you to start a new budget with data from a previous budget or from historical actuals stored in your accounting system. You can import multiple line items for each GL and also include descriptions. This allows for greater detail to be imported from spreadsheet. If no Descriptions or Sort order, these two columns can simply be left blank, but must be part of the import format. 1. From your accounting system, download 12 months of desired financials into a spreadsheet as shown above (Property ID, GL Account Number, Sort, Description, Month1 Months12). For Multi Bldg Files, be sure the PCID matches the Cost Center IDs as entered in the Cost Center table under Property Info/Budget Year. Data for all Cost Centers contained in your file should be contained in the same spreadsheet and uploaded at the same time. 2. From the spreadsheet, highlight all of the cells containing the upload data (exclude headers) and copy them onto the clipboard. 207

208 SECTION 5 DATA OTHER: Budget Input 3. Click on Import Data from Spreadsheet. You will have an option to make a back up copy of your file (Optional; click Yes or No accordingly). 4. In the resulting Import screen, click on the Paste button, click OK when prompted to choose Text, click on Text and complete upload. 5. Click Validate to make sure that the accounts in your accounting system are the same as the accounts you set up in Kardin. Any errors, for which Kardin provides specific popup messages and output options, will need to be addressed. 208

209 SECTION 5 DATA OTHER: Budget Input 6. Once the upload data is free of conflicts, the Adjust Signs and Upload Accounts buttons will become active. Click Adjust Sign to reverse the signs for all income accounts, if needed. Only use this feature if the income accounts your are uploading are negative (e.g. Base Rent is negative). 7. Then click on Upload Accounts and follow the prompts to proceed with upload: 8. The next message gives you the opportunity to delete or keep the existing data. Choose accordingly. 9. During upload completion you can choose to print a report of the changes you made. Alternatively, you can also go to the Reports and Export section in Kardin to print desired financial reports for audit purposes. 209

210 SECTION 5 DATA OTHER: Percentage Increase Percentage Increase This interface enable setup of percentage increases (or decrease) for the budget data in your file. Percentage adjustments can be entered for every account in your Chart of Accounts. The percentage increase adjustments will show up as a linked record in each GL account. These adjustments will be updated each time the budget data is changed. Linked items, such as Base Rent, TI and LC will not be adjusted by a percentage increase. A. You can type in a percentage increase or decrease for each account manually on this form, or you can press one of the two buttons at the bottom to adjust a group of accounts or categories with the same percentage. 210

211 SECTION 5 DATA OTHER: Percentage Increase B. If you want to adjust a group of accounts, click the Adjust Accounts button. C. Select all the accounts that you want to adjust by moving it from the left box to the right box. Enter the percentage adjustment and click OK. D. If you want to adjust a group of categories, click the Adjust Categories button. As show above, select all the categories that you want to adjust by moving it from the left box to the right box. Enter the percentage adjustment and click OK. 211

212 SECTION 5 DATA OTHER: Percentage Increase Note: the percentage increase amount calculates after the original data entered into each GL Account has been sub totaled, Kardin then adds the % Increase Amount to get the GL Account Total. The calculation is figured each month. Refer to "Multi Year Budget" in Section 7 for detailed instructions when using the Percentage Increase feature in a multi year budget. 212

213 SECTION 5 DATA OTHER: User Defined Calculations User Defined Calculations User Defined Calculations gives you flexibility and allows for some creativity when defining additional needed calculations for your property. UDCs allow you to automate calculations to fit your needs, such as Management Fees, Asset Management Fees, Sales Tax, Construction Management Fees, Bad Debt Losses, Janitorial Expense, Electric Utility Expense, etc. These calculations dynamically calculate items as the data in the file changes. End results will budget to the assigned GL account. From the File Main Menu, click User Defined Calculations. There are six Calculation Methods to choose from: 1. Monthly NOI: NOI x Factor This calculation method takes the monthly NOI calculation from all the file data and then multiplies it by the factor. 2. Selected Income Accounts: Selected Income Account(s) x Factor This calculation method takes the monthly totals of the selected income accounts and multiplies it by the factor. 3. Selected Expense Accounts: Selected Expense Account(s) x Factor This calculation method takes the monthly totals of the selected expense accounts, and multiplies it by the factor. 4. Market Value: Market Value x Factor This calculation method takes the Market Value, as entered in Property Info/Budget Year, and multiplies it by the factor. 5. Monthly Occupancy Level: Occupied SF x Factor This calculation takes the monthly Occupancy SF based rent roll leasing activity and multiplies by the factor. 6. Monthly Vacancy Level: Vacant SF x Factor This calculation takes the monthly Vacancy SF, as calculated from the rent roll leasing activity, and multiplies by the factor. Note: if you are using this calculation to calculate the Janitorial Contract Credit, you will not use the calculation based on Occupancy Level to calculate the Janitorial Contract; you will need to enter the monthly contract amount directly into the GL account in the Budget Input section, then the Vacancy Credit calculation will be entered as a negative factor and be a reduction to the janitorial contract to reflect vacancy. In a Multi Building file, the calculation is cost center specific. In other words, Kardin automatically filters down to calculate each cost center based on the method and factor, therefore only create one calculation type (vs. one for each cost center) and let Kardin do the work. However, if you are using Monthly Minimum and you have a minimum requirement by cost center, you will then need to create a separate calculated item for each cost center (using Detail to select the cost center). 213

214 SECTION 5 DATA OTHER: User Defined Calculations The above examples include a Janitorial Contract cost calculation based on Monthly Occupancy. If you were to select the method based on Monthly Vacancy for a Janitorial Contract Credit, you would hard key the Monthly Fi d C t t t di tl i t th GLA t i B d ti t UDC Setup: A. Enter the Name for the calculated item you are setting up in the first column. Then select the Calculation Method from the drop down in column 2. B. The Calculation Order is a sequence ordering each calculation. The default is 1. As you add more than one record, you will need to continue the sequence with 2, 3, 4, etc. We recommend Calculation Methods based on Monthly NOI to be calculated last, Methods based on Selected Income (such as Property Management Fee) next, i.e. when three calculation records are set up, the record based on Monthly NOI should be 3, Property Management Fee should be 2. In the above example, the calculation order is directing Kardin to calculate Janitorial Fees first, then Property Management Fee, and Asset Management Fee last. If a calculation is setup and linked to an Account that is also a selected account for another calculation, be sure to order the calculation sequence accordingly; i.e. Late Fee Income has a COA Link to an Income GL and this GL Account is a Selected Account for Property Management Fee: calculate Late Fee Income first, and Property Management Fee second. C. For Selected Income Accounts or Selected Expense Accounts, the Select Accounts button is available. For all other methods, Select Accounts is not applicable. Click on Select Accounts. 214

215 SECTION 5 DATA OTHER: User Defined Calculations The exclude column on the right identifies which GL accounts that will be included or excluded from the calculation. The box must be blank for each GL account you wish to be included and "checked" for those to be excluded. The Exclude All or Include All buttons at the bottom left might be helpful when including/excluding the majority of available accounts. After making the desired selection, click Close to proceed. D. If there is a minimum dollar amount, enter the amount in the Monthly Minimum field and check the box next to it. 215

216 SECTION 5 DATA OTHER: User Defined Calculations E. Monthly Factors is a sub screen for data entry. Enter a factor as a decimal figure (i.e. if 50%, enter.50; if $.60, enter.60; if $.06 PSF, enter.06). The factor can be positive or negative. To repeat an entry going forward, double click in any box enter the factor, and click ok. F. The Detail button brings you to a sub screen, below, that allows for additional manual adjustments to the Amount Before Percentage adjustment. 216

217 SECTION 5 DATA OTHER: User Defined Calculations For multi building budgets, adjustments can be made for each cost center individually. You may also delete a cost center from the calculation as Kardin will default to include all cost centers, so that each Cost Center can have its own/separate calculation. To remove a Cost Center from the calculation, click the light blue record selector to the left of the applicable row and hit the "Delete" key on your keyboard. 217

218 SECTION 5 DATA OTHER: User Defined Calculations G. From the drop down, select the desired COA Link. Results for your calculation will budget into the selected GL account. If the Linking GL Account is also a selected account for another Calculation, be sure to adjust the Calculation Order accordingly. For multi building budgets, select an Allocation for the calculation. The allocation is used when the calculation includes a value for Monthly Minimum. Example: You setup a Management Fee based on income, with a monthly minimum of $3,000. If your calculation results are below the monthly minimum, Kardin will calculate the difference between total and minimum fee, and you can choose if this added expense should be applied to one or multiple Cost Centers. Available Allocations will be those as set up in the Property Info/Budget Year section. Note: Kardin will not allow for cross allocation, meaning if a calculation is specific to one cost center, then the allocation cannot be applied to another cost center. 218

219 SECTION 5 DATA OTHER: Payroll Payroll The Payroll is used to calculate payroll and burden/benefits for each budgeted employee. You can set up as many payroll records as needed for your budget. Burden is the calculation of payroll related expenses and could include income tax, social security, health insurance, etc. 1. First Create the Burden List 2. When setting up employees, you can attach the applicable Burden(s) from your custom list A. Enter a Department Name and Position title. B. Select the Chart of Account ID for each: Salary/Wage; Bonus; and Overtime. Bonus 1 and Bonus 2 are optional; however, if data is entered for these additional bonus records under Payroll Detail, the link(s) will be required. C. For multi building budgets, select the applicable Allocation table, as set up in the Property Info/Budget screen. D. Prior to setting up Burden Detail, you must create your own Burden List. You can set up the list as illustrated below: create the Burden Name, select Burden Method (if %, enter the percentage ; if amount, enter the monthly amount ), if the burden amount is capped, check the box in the Cap column and enter Wage Base amount. Lastly, use the drop down under ChartID to link the burden calculation to the desired GL Account. Note: Entering a Wage Base is only needed when the Cap box is checked. 219

220 SECTION 5 DATA OTHER: Payroll E. Assigning your custom burden calculation is done under Burden Detail. Use the drop down to select the desired calculation option. F. Payroll Detail calculates the monthly salary cost based on multiple setup options. As is standard in Kardin, white fields can be edited/populated, while gray fields are looked. Setup options include Salary and Hourly, 24 or 26 pay periods, etc. Kardin will open up the fields that apply to your payroll selections while graying out those that do not apply. G. Select Payroll Type: Salary or Hourly Wage. H. Select the Pay Periods as 24 (twice a month) or 26 (every two weeks). When selecting 26 pay periods, you must also select two months with 3 Pay Periods, as shown below. 220

221 SECTION 5 DATA OTHER: Payroll Note: When selecting 24 pay periods and hourly wage, you will need to adjust the regular hours per week (i.e. January = 31 days less 8 weekend days = 23 pay days times 8 hours equals 184 total hours divide by 4 weeks averages out to 46 hours per week in January). Kardin assumes 4 weeks per month at 40 hours per week which then calculates to 48 weeks per year. I. If Salary is selected under Payroll Type, enter the Starting Salary as an annual amount. J. If Hourly Wage is the Payroll Type, enter the Overtime Factor and Hourly Rate for each month. You may double click in a box to repeat the same amount going forward. K. Enter the Regular Hours Per Week and the Overtime Hours Per Week for each month. Again you may double click in a box to repeat the same number going forward. Remember, you are entering the weekly amount and Kardin is calculating the monthly totals. L. If Salary is the Payroll Type, enter the % Increase in the applicable month(s) as a percentage. If no increase, leave all months at "0". M. Enter the # of Employees applicable to this payroll position. Example: If you have one fulltime employee year round and one part time employee during the summer, you can set all months to 1 and in the summer months you could enter 1.5, as applicable. N. Enter the Monthly Bonus in the applicable month(s) as an amount. O. The Monthly Burden will automatically calculate based on the Burden List setup in the previous screen. P. Click the Refresh button when finished entering/updating data and Kardin will re calculate your totals. 221

222 Amortization Schedules SECTION 5 DATA OTHER: Amortization Schedules From the File Main Menu, click Amortization Schedules. There are three tabs on the top of the screen: Debt Service, Amortization Schedule and Select Budgeted Capital. A. Debt Service allows you to setup loans. There are two Loan Type options. Selecting Amortized Loan prompts Kardin to calculate Principal and Interest based on Term. Interest Only calculates monthly Interest expense and can accommodate draws and principal payments based on schedule entries. 1. Loan information can be linked to another Kardin File via the Linking feature in the Leasing and Recoveries section. When a file is linked to another file, the Link box at the bottom left will be checked. Note, linking is only possible in commercial property files, but not in multi family type files. 2. You can setup an unlimited number of loans. Use the New Loan button to create a new loan record. To remove a loan, use the "Delete Loan" button. Both of which are located towards the top right. 3. Amortized Loan Type allows Kardin to calculate Principal and Interest on a monthly, quarterly, or annually basis, as selected from Paid drop down menu. a. From the tab for Debt Service. Create a Name of Loan and select Loan Type. Enter the remaining loan information such as Lender, Loan Start Date, Original Principal, Annual Interest Rate, Number of years and how often payments are made. 222

223 SECTION 5 DATA OTHER: Amortization Schedules b. Select the applicable COA Link Principal and COA Link Interest. The Principal and Interest calculations will link to and budget in the selected GL Account. To properly account for Net Income in your Budget Reports, set up a link, via COA Links to Budget, for the Contra Principal Payment. This link will automatically create an adjustment of the principal payment to obtain Net Income. c. Debt Service Amortized Loan Calculations: 1) Annual = Interest % x Principal Balance 2) Quarterly = (Interest % / 4) x Principal Balance 3) Monthly = (Interest % / 12) x Principal Balance Note: Interest is rounded to nearest 100 th.xx 4. Interest Only Loan Type allows Kardin to calculate monthly Interest Expense based on the original principal plus draws against the loan less payments on the loan. a. From the tab for Debt Service, create a Name of Loan and select Loan Type of Interest Only. Enter the remaining loan information such as Lender, Loan Start Date, Original Principal (original principal can be zero), Annual Interest Rate, Number of years. 223

224 SECTION 5 DATA OTHER: Amortization Schedules b. Select the applicable COA Link Principal, COA Link Interest, and COA Link Draw. The Principal, Draw, and Interest calculations will link to and budget in the selected GL Account. To properly account for Net Income in your Budget Reports, set up a link, via COA Links to Budget, for the Contra Principal Payment. This link will automatically create an adjustment of the principal payment to obtain Net Income. c. View Detail to enter Draws Against Loan and Payments on Loan. One entry per month. d. Debt Service Interest Only Calculation assumes monthly interest payments. The Interest calculation is: ((Beginning Balance + Ending Balance) / 2) * (Interest % / 12). B. Amortization Schedules allows the set up of historical capital costs (such as tenant improvements, building improvements and lease commissions) that requires depreciation/amortization expense calculation. 224

225 SECTION 5 DATA OTHER: Amortization Schedules Note: the Code column represents auto ID that Kardin creates to categorize each record. BI represents a record that was manually entered. GL, TI and LC represent records that are linked to auto calculate based on set up in Select Budget Capital. If prior year records are labeled, GL, TI or LC, they originally calculated in a previous year Kardin budget or reforecast. 1. Click on the tab for Amortization Schedules. This screen allows you to amortize certain capital/expense items. 2. If you have historic amortization schedules in spreadsheet format, you can also copy and paste it into this screen. Spreadsheet headers should be as follows: AmortType, AmortName, AmortStartDate, OriginalAmount, and Term. AmortType must be one of the following: Capital, Expense, Leasing Commission, or Tenant Improvement. Term must be in months. 3. Highlight and copy the data in the spreadsheet, then click on the Paste button in the lower left Kardin to populate the data in your amortization table. 225

226 SECTION 5 DATA OTHER: Amortization Calculation Usage Definition in Accounting Terms: Depreciation and Amortization is how you expense, account or record certain costs for book purposes by spreading the cost over the period of time for which you will benefit from the expense. The life is a set number of months and for book purposes, the expense is spread evenly across the time period. In theory, depreciation is for tangible type expenses and amortization is for intangible type expenses. Kardin uses its Amortization Calculation to calculate monthly amortization and/or depreciation expense of capital items as per GAAP reporting needs. Use this feature ONLY if accounting requires budgeting of amortization/depreciation expense at the property level. NOTE: This calculation will impact the Net Income in the budget. Most often this function is performed at a portfolio/ownership level and not the property level. Please consult with your accountant for direction on reporting requirements. DO NOT USE for the purpose of calculating the amortized amount of a capital or large expense for Recovery Bill Back (CAM/Escalation) purposes. These types of adjustments need to be addressed directly in the Expense Schedules (pool of recoverable expenses). C. Select Budgeted Capital Amortization Schedule covered is designed for items that have already been acquired or historical costs. Select Budgeted Capital allows you to select any Capital Accounts from the current budget period that will be amortized/depreciated. In other words, you will be amortizing projected spending. 226

227 SECTION 5 DATA OTHER: Amortization Schedules 1. Use the pull down menu under Account ID to select a capital account, i.e. Building Improvements. The budgeted total for the selected account will be amortized over the term. You may enter the term in months in the Term (Months) column. 2. Amortize Calculated TI s and LC s. Selection: Check "Yes" if you want all budgeted Tenant Improvements and/or Lease Commissions, via Rent Roll Lease Assumptions, to be amortized over the term of each specific lease automatically. Check "No" if you do not want Kardin to automatically amortize TI's and LC's from your current Rent Roll activity. 227

228 SECTION 6 OUTPUT: Reports and Export Reports and Export When clicking the Reports and Export button, Kardin will run the code that updates all the calculations for any additions and changes you made to your file data since it was last updated. If you are going to consolidate, analyze or link this to other files, it is important that before closing the budget file, you run the code by clicking this button. Please note that all of the reports can be viewed as a PDF document, provided you have a pdf software/printer installing. If ANY of the following messages occur, you will need to remedy prior to Kardin completing the requested task of updating the calculations so that you may review reports: Problem: Errors were detected in your rent roll, would you like to view? Remedy: View errors, go to Leasing and Recoveries / Rent Roll and address the errors as stated. Problem: Possible Errors were detected in your rent roll, would you like to view? Remedy: Possible errors do not affect your current period; you may view if you wish; or you may select no to bypass the possible error alert and continue with update and to view reports. 228

229 SECTION 6 OUTPUT: Problem: You have setup items in your budget that require a link in the COA Links to Budget form. Please view the need link flag and set up links for these items. Remedy: From the main menu, go to COA Links to Budget and select a GL Account (from pull down menu) for the item flagged as need link, then validate and the problem will be solved. Problem: There may be other messages that you encounter. Remedy: Read the message carefully and go the source as described in the message to make the correction. If you are unable to define or remedy the problem, please contact Kardin Support. In a Single Bldg File you will enter the report menu immediately after the file update calculation has completed successfully. In Multi Building Files you will first be given an option to select one, multiple or all available Cost Centers for which you would like to generate reports. As shown in the below screen shot, the left hand side displayed the "Available Cost Centers" box and the left hand side the "Selected Cost Centers" box. There are no available cost center on the right because the two cost centers in the sample file have been selected. You can use the arrow keys in center screen to move cost centers back and forth. Once you completed your selection, click "OK" to proceed to the reports menu. Moving all cost centers to the "Selected" box will allow you to generate reports for the entire project. Selecting a single Cost Center will let you generate reports for that cost center only. 229

230 SECTION 6 OUTPUT: General Report Notes There are seven major report groups: Variance, Budget, Leasing, Recoveries, Other, Valuation and Export. The Variance Report tab is only available in reforecast type file. All other tabs are available in both budget and reforecast files. Also, if a report title is grayed out, it means no data was entered or is available for the corresponding setup fields so the report is not available until data is entered. If data exists, the report name will be bold and available for view and print. 230

231 Variance SECTION 6 OUTPUT: Variance Variance Reports are available in Reforecast Files only. They provide variance analyses of the current budget vs. the current reforecast. A. The MTD Detail and MTD Summary reports are variance comparisons of the month todate values for the original budget vs. actuals. B. The YTD Detail and YTD Summary reports are variance comparisons of the year to date values for original budget vs. actuals. C. The Reforecast Detail and Reforecast Summary Explanation reports are variance comparisons of the full year of the original budget data vs. the full year reforecast data. D. Enter Explanation is available for all of the above report types. Single clicking on any of these buttons allows you to enter you custom variance explanations for each GL account (detail reports) or major categories (summary reports) that will print alongside the report. At the Detail level, you can filter variances by a minimum amount or percentage. For example, if you would like to view just those variances of $10,000 or more, type in in Filter by Variance box, then click on the Filter by Variance button. If you would like to view variances of 10% or higher, type.10 and click on the Filter by % Change button. 231

232 SECTION 6 OUTPUT: E. Variance List allows you to create different sets of variance explanations. Most commonly needed for multi buildings when variance reports are produced for each cost center, you can create a variance list to accommodate each cost center's unique explanation. Another scenario would be a company internal explanation vs. an explanation for a 3rd party entity. First, enter a Variance Name. In the Notes section you can enter a description that helps identify specific use for the unique list. By checking the box in the Selected column, you are selecting the Variance option that will be active when going back to entering Explanations for the individual reports. The selection can be changed at any time, as needed, to switch between the different Note types. 232

233 SECTION 6 OUTPUT: Variance F. Click the "View" box next to the report you wish to print or view. Then click View in the bottom right to generate a report on screen. You can print any report during on screen view by selecting File/Print in the upper left corner. The File menu also has options for output to PDF and Rich Text. G. To bypass the on screen report display and go directly to print, click the Print button in the lower right hand corner. 233

234 Budget SECTION 6 OUTPUT: Budget The Budget tab provides access to financial detail and summary level reports, primarily covering the current budget period, but also offering several reports with options to bring in any of the historic schedules included under Leasing and Recoveries/Financials. Check the box next to the report you wish to view. Then click View in the bottom right to generate a report onscreen. You can print any report during on screen view by selecting File/Print in the upper left corner. The File menu also has options for output to PDF and Rich Text. To bypass the on screen view option, click Print in the bottom left corner. Reports with buttons (vs. checkbox; e.g. Budget Analysis report) take you to secondary screen with additional report selection options. Budget Reports 1. Monthly Summary shows monthly budget totals by Account Category. 2. Quarterly Summary shows quarterly budget totals by Account Category. 3. Annual Summary shows annual budget totals by Account Category. 234

235 SECTION 6 OUTPUT: Budget 4. Monthly Detail provides monthly budget totals by GL Account. 5. Quarterly Detail provides quarterly budget totals by GL Account. 6. Annual Detail provides annual budget totals by GL Account. 7. Budget Explanation displays the high level Notes entered in Budget Input (not the sub account level descriptions entered for each expense line item). 8. Budget by Allocation applies to Multi Bldg files only. When clicking the report button, a pop up window appears. Use the drop down menu from the pop up window to select from any of the Allocation templates as set up under Property Info/Budget Year. The report shows monthly GL totals for any income and expense items using the selected allocation. Monthly Schedules 1. GL Sch. (Budget Input) allows you to select individual GL Accounts, groups of Accounts, or all of the GL Accounts that contain values in the current budget period. The report displays all line item detail and their descriptions and sort order assignments as entered in the Budget Input section. 2. GL Sch. Post Allocation is only available in Multi Bldg files. In addition to the line item detail, this reports shows income and expense splits based on the custom allocations applied in Budget Input and as setup under Property Info/Budget Year. 3. GL Sch. W/Financials in addition to the line item detail provided in report "1." above, this report allows you to pull values for up to five historic Financials (historical data) for monthly detail comparison of the selected GL Account(s). Available historic records are the same as loaded in the "Financials" section of your Kardin file. After selecting the desired GL Account(s), use the drop down in the pop up window to select financials and report preferences. 4. Category Schedules lets you select Account Categories as defined by your Kardin Chart of Accounts. It displays monthly totals for each GL account that is part of the selected Category, provided the account contains values, and also includes monthly and annual totals for the entire Category(ies). 235

236 SECTION 6 OUTPUT: Budget 5. Cat. Sch. W/Financials in addition to the information provided in report "4'" above, this reports allows you to pull values for up to five historic Financials (historical data). It 6. displays monthly and annual GL and Category totals for the current period, as well as monthly and annual Category totals for the selected historic Financials. Variance 1. Budget Analysis lets you select 2 or 3 schedules from your "Financials" section to generate variance reports on either a Detail (GL Account) or Summary (Category) level. The Report Selector setup screen contains 3 File drop down menus in the top half for selecting the desired schedules. If comparing only two periods, populate the Third File and Second File options, leaving the First File option blank. Use the Clear All button to clear all selected schedules at once. Both, the Detail and Summary level report options include and Enter Description box for entering custom narrative to explain the variance between selected periods. Variance List allows you to create different sets of variance explanations. Most commonly needed for multi buildings when variance reports are produced for each cost center, you can create a variance list to accommodate each cost center's unique explanation. First, enter a Variance Name. In the Notes section you can enter a description that helps identify specific use for the unique list. By checking the box in the Selected column, you are selecting the Variance option that will be active when going back to entering Explanations for the individual reports. The selection can be changed at any time, as needed, to switch between the different Note types. 2. Cat. Sch. W/Variance allows you to select Categories and up to 3x Financial Schedules to display their monthly and annual totals, as well as their variance and percentage change. 3. GL Sch. W/Variance allows you to select GL Accounts and up to 3x Financial Schedules to display subaccount level detail and associated monthly and annual totals, as well as their variance and percentage change. Additional Reports 1. Financial Summary is a side by side report format allowing you to select any 5 schedules that are included in your Kardin Financials section. Each report page can show up to 5 periods per page, displaying annual Category totals for each period. 2. Financial Summary Detail is essentially the same report as the Financial Summary above, expect that values displayed are at the GL Account level (vs. Category level). 236

237 SECTION 6 OUTPUT: Budget 3. Budget By Cost Center applies to Multi Bldg files only. After selecting the desired schedule from the drop down, the report can display up to 5 Cost Centers side by side per page. Values are provided on a Category level. If more than 5 Cost Centers exist in your file, the report will show the first 5 Cost Centers first, and then additional Cost Centers will show on consecutive pages, 5 at a time, for all existing Cost Centers. 4. Monthly Cash Detail is assigned to Sources and Uses of Cash. It is a monthly cash balance report. This report is intended for forecasting monthly cash balances; a reforecast file will not track monthly cash flow in the actual periods, only the reforecast period, so in the reforecast you will want to adjust the Beginning Cash Balance via Property Information/Budget Year to reflect the cash on the last day of the YTD Actual period (e.g. in a calendar reforecast with 6 months of actuals, enter the cash balance at 6/30). 5. Annualized Yields displays quarterly and annual yields for your major report totals: Net Operating Income; Cash Flow after Non Operating Expense; Cash Flow after Debt Service; Cash Flow after Capital Expenditures; Cash Flow after Asset Level Income; Cash Flow after Asset Level Expenses; and Net Income. 6. Allocations applies to Multi Bldg files only. It provides a list of all custom Allocations as set up in the Property Info/Budget Year section. 7. Selected Cost Centers applies to Multi Bldg files only. It helps verify which Cost Centers were selected before entering the current reports menu. 237

238 SECTION 6 OUTPUT: Leasing - Commercial Leasing Commercial (Leasing for Multi Family properties is covered hereafter.) These reports are supporting schedules related to Commercial Property rent roll, rents, suites and leasing activity. Check the box next to the desired report, then select view or print. Selecting view will print the selected report(s) to your screen. You can then print to printer from the screen by selecting File/Print. Selecting print will send the report directly to the printer. Reports with the buttons take you to another selection screen prior to the report. Schedules 1. Base Rent Office shows monthly base rent income by tenant for office type suites, sorted by Suite Number. 2. Base Rent Office by Least Type first lists vacant office type spaces, followed by monthly base rent of office type income by tenant, grouped into Contract, New and Renewal tenants, and including totals for each grouping. 3. Base Rent Retail shows monthly base rent income by tenant for retail type suites, sorted by Suite Number. 238

239 SECTION 6 OUTPUT: Leasing - Commercial 4. Base Rent Retail by Least Type first lists vacant retail type spaces, followed by monthly base rent of retail type income by tenant, grouped into Contract, New and Renewal tenants, and including totals for each grouping. 5. Free Rent Office shows monthly totals of free office type base rent income by tenant, sorted by Suite Number. 6. Free Rent Office by Least Type shows monthly totals of free office type income by tenant, grouped into Contract, New and Renewal tenants, and including totals for each grouping. 7. Free Rent Retail shows monthly totals of free retail type base rent income by tenant, sorted by Suite Number. 8. Free Rent Retail by Least Type shows monthly totals of free retail type base rent income by tenant, grouped into Contract, New and Renewal tenants, and including totals for each grouping. 9. Storage Rent shows monthly base rent income by tenant for storage type suites, sorted by Suite Number. 10. CPI Rent lists monthly CPI rent totals by tenants, including CPI % of base rent, sorted by Suite Number. 11. Parking Rent shows monthly parking type income by tenant, including stall detail. 12. Miscellaneous Rent shows monthly totals of miscellaneous type rents by tenant, sorted by Suite Number. 13. Rent Roll shows by suite each tenant and their lease status and revenue schedules. 14. Rent Roll Retail shows by suite each retail type tenant and their lease status, revenue schedules and tenant improvement schedule. 15. Effective Rent shows by tenant the effective rents calculations. 16. Stacking Plan shows by floor (in descending order) and suite (ascending order) and its square footage and status Year Rent Totals shows by suite annual rents out 7 years in side by side columns. Also included with this report is the narrative from the rent roll notes box. 239

240 SECTION 6 OUTPUT: Leasing - Commercial 18. Tenant Improvements shows, by tenant, detail tenant improvement expense and the calculation schedule. 19. Leasing Commission 1 shows, by tenant, detail leasing commission 1 expense and the calculation schedule. 20. Leasing Commission 2 shows, by tenant, detail leasing commission 2 expense and the calculation schedule. 21. % Sale Rent shows, by tenant, monthly detail percentage rental income. 22. % Sales in Lieu Rent shows, by tenant, monthly detail percentage in lieu of base rent income. Sales Comps shows tenants with percentage sales set up as comp vs. non comp. 23. % Sale Rent Cal. Summary shows, by tenant, the data set up for the percentage rent calculation. 24. % Sale Rent Cal. Detail shows the detail calculation of the percentage rent. You can select each tenant(s) that have % rents set up. 25. GAAP Adjustment shows, by tenant, monthly detail levelized/average rent adjustment. 26. GAAP Calculation shows, by tenant, the GAAP (levelized/average rent) calculation. 27. Gross Potential Rent shows by suite gross potential revenue for all vacancies during vacant period. Leasing Reports 1. Leasing Activity by Date shows leasing activity for the budget period by date of the lease assumption commencement. 2. Leasing Activity by Suite shows leasing activity for the budget period by suite number. 3. Retail Leasing shows leasing activity for retail type suites. 4. Leasing Assumptions shows a print out of all the lease assumption templates. 5. Lease Expiration shows by year of expiration then by date all lease expirations for ten years. Each year is a column of square footages for expiring leases that year. A total of expiring leases and % of building total is also included. 240

241 SECTION 6 OUTPUT: Leasing - Commercial 6. Leasing Summary shows leasing activity based on lease execution date. 7. Occupancy Summary shows monthly detail, by suite, occupied square footage. Each month s occupied square feet are totaled and a % occupied and % vacant is calculated. An annual average square foot and % occupied is also calculated. 8. Retail Occupancy % shows monthly detail, by suite, occupied square footage for retail type suites. Each month s occupied square feet are totaled and a % occupied and % vacant is calculated. An annual average square foot and % occupied is also calculated. 9. Retail Occupancy Cost shows by suite, the occupancy cost % (total revenue divided by total sales) for retail suites with % rent. 10. Total Tenant Revenue shows by tenant, total annual revenue by each category (rents, parking, and recoveries) with a grand total revenue for the tenant for the budget period. 241

242 SECTION 6 OUTPUT: Leasing - Multi Family Leasing Multi Family These reports are supporting schedules related to Multi Family Property rent roll, market rates, rents, occupancy and leasing. Each report prints activity for the Current Budget Period (including the 6 months projection prior to the budget period) only. Mark the box next to your selection by single clicking. Then select view or print. Selecting view will print the selected report(s) to your screen. You can then print to printer from the screen by selecting File/Print. Selecting print will send the report directly to the printer. A. Multi Family Schedules 1. Market Rate Increase shows, by unit type, the projected monthly market rent increase for the 18 month period. 2. Market / Actual Rents shows, by unit type, the projected/market monthly rents for the 18 month period. Also on this report is an average market rent per unit, turnover rent per unit and renewal rent per unit. 242

243 SECTION 6 OUTPUT: Leasing - Multi Family 3. Gross Potential Rent shows, by unit type, the projected monthly gross potential rents for all units at Market Rent for the 18 month period. 4. Loss to Lease shows monthly Total Property Revenue calculation beginning with gross potential rent and factoring in prior month s loss to lease, recurring concessions, monthly rent increases, and turnover adjustments. 5. Vacancy Rents shows, by unit type, the projected monthly market rents for vacant units for the 18 month period. 6. Non Rentable Unit Rents shows, by type of non rentable unit, the projected monthly market rents for non rentable units for the 18 month period. 7. Occupancy Projections shows occupancy projections with vacancy and occupancy % per month for 18 month period including turnover %. 8. Rent Roll shows, by unit type: # of units, average square footage, total square footage, current average and market rents, rents per square foot, current total revenue and gross potential revenue, projected unit improvement, unit maintenance and lease commission cost per unit. 9. Rent Roll Detail shows the rent roll at a per unit detail with average current rents. 10. Turnover Costs shows the turnover cost detail as was set up in the file. 11. Delinquencies & One Time Concessions shows delinquency and concession (both One Time Concessions and Recurring Concessions) calculations for 18 month period. 12. Recurring Concessions shows recurring concession detail calculations for 18 month period for each recurring concession set up in the file. 13. Recurring Concessions Backup shows recurring concession detail for 18 month period for each recurring concession set up in the file as a complementary back up report to the above and also including Average Turnover Rents Per Unit. 243

244 Recoveries SECTION 6 OUTPUT: Recoveries Recoveries reports include the detail recovery schedules for both Commercial and Retail type recoveries. Mark the box next to your selection by single clicking. Then select view or print. Selecting view will print the selected report(s) to your screen. You can then print to printer from the screen by selecting File/Print. Selecting print will send the report directly to the printer. Reports with the buttons take you to another selection screen prior to the report. A. Commercial Recoveries 1. Rec. Schedule this selection will print the following: a. Rec. Schedule CAM shows, by tenant, monthly recoverable CAM income. b. Rec. Schedule TAX shows, by tenant, monthly recoverable tax income. c. Rec. Schedule Ins. shows, by tenant, monthly recoverable insurance income. d. Rec. Schedule Utl. shows, by tenant, monthly recoverable utility income. NOTE: if Pool Name Changes were made, the reports will reflect the changed name. 2. Recoveries Calculation shows, by tenant, all the recovery calculations including CAM, tax, insurance, and utilities. This report includes Approved by: at the bottom. 3. Tenant Recoveries shows, by tenant, all the recoveries including CAM, tax, insurance, and utilities. 244

245 SECTION 6 OUTPUT: Recoveries 4. Expense Schedules Category shows all the expense schedules that were created at the category level. 5. Expense Schedules GL shows all the expense schedules that were created at the account level. 6. Gross Up Schedules shows, by expense schedule, all the gross up calculations. A total GU amount is outlined at the end of each group of GUs for an expense schedule. 7. Recoverable Expenses Category & GL. Each report provides the same information as the Expense Schedules, at category or account level. However, excluding all adjustment columns and just providing the final recoverable expense. These reports might be more desirable for distribution as backup to tenants. 8. Tenant Statements provides tenant statements on the recovery calculations. These statements are available for distribution to tenants. In the Reforecast file, the tenant statements include options for sales tax to be calculated and notes/comments to be printed. B. Retail Recoveries 1. Recovery Schedules shows, by tenant, monthly detail recoverable CAM income. 2. Recoveries by Tenant Summary shows, by tenant, all the recovery calculations in summary. 3. Recoveries by Tenant Detail shows, by tenant, all the recovery calculations in detail. 4. Recoveries by Pool Summary shows, by charge code, all the recovery calculations in summary. 5. Recoveries by Pool Detail shows, by charge code, all the recovery calculations in detail. 6. Expense Pool Available Detail and Summary each report available for all the expense pools that were created. Detail is at GL Account detail level and lists out each contribution, as applicable. Summary is at category summary level and adds all contributions to one total contribution deduction. 7. Numerator/Denominator Summary shows a simple summary of all the expense pools and their selected denominator groups and calculation methods and a $ PSF amount for the pool. 245

246 SECTION 6 OUTPUT: Recoveries 8. Retail Denominator Groups shows all the denominator groups that were created. 9. Tenant Statements provides tenant statements on the recovery calculations. These statements are available for distribution to tenants. C. Fixed Recoveries 1. Recovery Schedules Fixed shows, by tenant, monthly detail fixed recovery income as set up using the special fixed recovery pools. D. Porter s Wage 1. Porter s Wage Rent shows, by tenant, monthly detail porter s wage income. 2. Porter s Wage Calculations shows, by tenant, the porter s wage calculation. 3. Porter s Wage Statements provides tenant statements on the porter s wage calculation. These statements are available for distribution to tenants. 246

247 Other SECTION 6 OUTPUT: Other Other includes detail supporting schedules for other automatic calculations. A. Other 1. User Defined Calculations shows all supporting schedules for the user defined calculations that were created in the file. 2. Selected Accounts Detail shows all the GL accounts included with the selected income or selected expense accounts as set up for each user defined calculation. 3. Building SF by Suite shows monthly detail, by suite, the measured RSF and any adjustments with comments. The report also gives monthly RSF totals. 4. Building SF by Suite Type shows monthly detail measured RSF by suite type. 5. Contract Lease Expiration shows all contract lease expirations in chronological order. B. Payroll 1. Payroll Detail shows, by department/position, the detail for the payroll calculations. 2. Payroll Summary shows, by department, the summary for the payroll calculations. 3. Payroll Burden shows, by position, the burden calculation detail. C. Amortization 1. Amortization Expenses shows, by expense, the monthly detail amortization cost. 2. Amortization Capital shows, by capital expense, the monthly detail amortization cost. 247

248 SECTION 6 OUTPUT: Other 3. Amortization TI shows, by suite, the monthly detail tenant improvement amortization cost. 4. Amortization LC shows, by suite, the monthly detail leasing commission amortization cost. 5. Debt Service shows, by loan, information and monthly detail of the loan amortization for both principal and interest expense payments. 6. Loan Amortization shows the amortization schedule for each loan. 248

249 SECTION 6 OUTPUT: Valuation Valuation Valuation Reports are available once the budget is completed. These reports will allow you to choose long term global leasing assumptions, expense inflationary rates, and a detailed capital plan to create a 10 year cash flow analysis. For further details for the Valuation Reports, please refer to the Valuation User Manual which is available for download from the Kardin website. 249

250 SECTION 6 OUTPUT: Export Export All the reports in this section have been cleared of formats so they can be downloaded directly into an Excel Spreadsheet. A. To export Leasing Data, click on the gray box next to your selected report to export. Choose a directory where you want the output file to be saved and create a file name. Click Save. 250

251 SECTION 6 OUTPUT: Export B. Budget Data Kardin Data Export Wizard allows you to export GL data as selected from the following choices: 251

252 SECTION 6 OUTPUT: Export In a Multi Building file, if you want to export GL data by cost center, select Separate 1. Data Format: select whether you want to export monthly GL detail with Negative income or Positive income. Some accounting systems requires revenue to be entered Negative. 2. Data Layout allows you to select whether you want data exported Horizontally (traditional) or Vertically. Some accounting systems require data to be imported from a Vertical format. 3. Data Level allows you to select the level of detail for the export. Detail will export data by GL account. Summary will export data by Category level. Sub Account will export in further detail with each record (line item) including description within the GL account. 4. COA selection is available in files that have Alternate charts. This allows you to export data by either chart as selected. 5. Cost Centers selection is available in Multi Building files and allows you to export data at the consolidation level or by Cost Center. 6. Journalize selection of Yes will flag to Kardin to calculate and create a negative entry at the end of the data for a net zero. This is required by some accounting systems and alleviates a manual calculation in the.xls file prior to import to accounting. 252

253 SECTION 6 OUTPUT: Export 7. When all selections have been identified, you can Create File. If you are journalizing, you will need to select Next to assign the GL account(s) for the net zero entry. C. Monthly Cash creates export of Sources and Uses of Cash GL Accounts. Your file must have activity to these account types for the export to be available. D. Output for MRI or Output for YARDI, creates output of budget/reforecast GL data into xls format ready for upload to the respective accounting database. E. Lease Data This data is available for importing into another Kardin file if necessary. 1. Lease Expiration exports lease expiration dates. 2. Comm. Recoveries exports estimated monthly recoveries as calculated for Commercial Recovery Tenants. From a budget file, includes all twelve months; from a reforecast file, includes reforecast months only. 3. Retail Recoveries exports estimated monthly recoveries as calculated for Retail Recovery Tenants. From a budget file, includes all twelve months; from a reforecast file, includes reforecast months only. 4. Fixed Expense Reimb exports Fixed Reimb as set up in the file. 5. Suites exports suites and measured RSF. 6. Tenants exports tenant names, commencement & expiration dates, leased RSF. 7. Rents exports rent schedules. 8. Yr. End Commercial Recon available in Reforecast files to export Retail Recovery Reconciliation total for each applicable tenant. 9. Yr. End Retail Recon available in Reforecast files to export Retail Recovery total for each applicable tenant. F. Data Exchange 1. Create Argus File creates an *.aif file which is available for use in Argus. a. In Argus, Select File, Import, Select *.aif file, New. 253

254 SECTION 6 OUTPUT: Export b. When you open this Argus file, the following information will be populated: Rent Roll with 1st Year assumptions, including steps First year operating expenses First year capital expenditures c. In Argus, complete: Property Description, Timing, and Property Inflation. d. Check Square Footage e. In Argus, add: Miscellaneous Revenue, Capital Expenditures (Reserves) and Credit Loss f. In Argus, change: Reimbursable Expenses Property Management Fees (from dollar amount to a formula); Reimbursable Expenses Taxes (from accrual basis to cash basis); and Reimbursable Expenses Insurance (from accrual basis to cash basis). g. In Argus, add: Market Leasing Assumptions h. In Argus, check Rent Roll for: Month to month Tenants, Management office, Market leasing, and Upon Expiration. 254

255 SECTION 6 OUTPUT: Create Reforecast / Budget File Once budgets are completed, if you would like to use this as a management tool on an on going basis to track performance, you can create a Reforecast File. By creating the reforecast file from the budget file, it makes a carbon copy of all the data so you will not have to re input any of the budget assumptions. A. From the Main Menu, click Create Reforecast File. It will ask you Do you want to create a Reforecast with the data in this Budget File? Click OK. B. Choose the folder you in which you wish to save your newly created reforecast and give the new reforecast a file name (.rf3 extension). Click Save. 255

256 SECTION 6 OUTPUT: Create Reforecast C. Now you can close the Budget File and open the Reforecast File you just created. D. When you have completed a Reforecast File, you can create a next year s budget file by clicking on the Create Budget File button from the Reforecast File. The steps would be the same as above except this would be a.cm3 budget file. You will also get the following messages: 1. Do you want to create a Budget file from this Reforecast file? Click OK. 2. The Budget file that is being created will have duplicate information in accounts with both actuals and linked data. Do you want the Actuals for the all the accounts to be automatically deleted in the new file? If you click NO, all the actual data from the Reforecast file will copy into the Budget file. This will cause duplication in the GL accounts that are linked to automatic calculations. You can manually delete these actual lines in budget input if you desire. If you click YES, all the actual data from the Reforecast file will be deleted in the Budget file. Please note: all reforecast data from the Reforecast file will copy into the Budget file regardless of the answer. This data can be amended to reflect the new budget. NOTE: If you open the Budget file and find that you answered incorrectly to #2 above in order to meet your needs, you can always delete this file and re do the Budget file creation from the Reforecast file. V.35.xx Updated January

257 SECTION 7 PROCESSES / DAILY OPERATIONS: COA Setup General Rules/Guidelines NEED CHART OF ACCOUNT SET UP GENERAL RULES/GUIDELINES WHY? There are some helpful guidelines that we can offer. The chart of accounts set up is a critical process from the start. Important to have the basic structure in place during the beginning implementation stages. DAILY USE Adding to and amending a chart of accounts later is possible; however deleting accounts or replacing accounts is more complicated. The chart of accounts for budgeting purposes does not need to include all balance sheet accounts as needed with accounting. Keep the chart simple, but inclusive of all budget needs. Chart of Account Set Up General Rules When creating a new Chart of Accounts in a Kardin file, there are some general rules to keep in mind. 1. Only include GL Account Number Ranges that are used with budgeting. a. All Property Income accounts b. Expense Accounts i. all recoverable expense accounts ii. all non recoverable expense accounts iii. non operating expense accounts that are applicable with property budgeting (see below for rules on Amortization/Depreciation expense accounts) c. Capital Improvement Accounts that are applicable for property budgeting, i.e.: i. Tenant improvement accounts ii. Leasing Commission accounts iii. Land & Building Improvement accounts iv. Other Capital Improvements v. Do not include Accum. Deprec. /Amort. accounts 2. If your property/portfolio requires budget/reforecast of debt repayment, your COA will also require: V. 35.xx Updated January

258 SECTION 7 PROCESSES / DAILY OPERATIONS: COA Setup General Rules/Guidelines a. Principal account(s) b. Interest Expense Account(s) c. Contra Principal account for the principal repayment that is adjusted out of Net Income. This is typically a made up or dummy account needed for Kardin s reporting structure. This account will need to be set up under Expense/Adj. for NI. i. The result is Debt Service will reduce Cash Flow after Principal and adjust Principal back in to get to Net Income ii. i.e.: NOI $4,616,274 Less Interest Expense $ 86,637 Less Principal Repay $ 837,343 Cash Flow after Debt Service $3,692,294 Less Principal Repay Contra $ (837,343) *(Expenses/Adj. for Net Income Type) Net Income $4,529,637 *entries to a contra account need to be negative. Kardin automatically treats this entry as a negative when you use the Debt Service and COA Links to Budget set up for Loan Principal adjustments to Net Income. If you manually enter the Principal amounts to Budget Input, a positive entry to Principal Repay account and a negative entry to Principal Contra Account is necessary. 3. If your property/portfolio requires budgeting of Capital Amortization and/or Depreciation expenses, your COA will require: a. Amortization Expense b. Depreciation Expense c. Neither are to be confused with the balance sheet accounts for accumulated amortization/depreciation as these accounts are not applicable in the budget process d. Both Amortization and Depreciation Expense account(s) will be rolled into Expense/Adj for NI e. Continuing the above example: Cash Flow after Debt Service $3,692,294 Plus Principal Repay Contra Less Depr/Amorti $ 837,343 (Expenses/Adj. for Net Income Type) $ 278,873 (Expenses/Adj. for Net Income Type) Net Income $4,250,764 V. 35.xx Updated January

259 SECTION 7 PROCESSES / DAILY OPERATIONS: COA Setup General Rules/Guidelines 4. If your property/portfolio requires the GAAP reporting of Average or Straight Lined Rents, you will also require the applicable Rent Adjustment account(s). a. These such accounts should also be rolled into Expense/Adj. for NI Cash Flow after Debt Service $3,692,294 Less GAAP Adjustment $ 47,435 (Expenses/Adj. for Net Income Type) Plus Principal Repay Contra Less Depr. /Amort. $ 837,343 (Expenses/Adj. for Net Income Type) $ 278,873 (Expenses/Adj. for Net Income Type) Net Income $4,203,329 V. 35.xx Updated January

260 SECTION 7 PROCESSES / DAILY OPERATIONS: COA Setup General Rules/Guidelines Set up types is the second level of roll up in the Kardin Chart of Accounts. The Setup Type identifies how the GL Accounts are organized into the Kardin reports. The Kardin Budget System assumes cash reporting of Net Operating Income (NOI). Kardin then further reduces NOI by costs affecting cash flow and finally an Expense Adjustment to result in Net Income. Additionally, we offer a Cash Detail report that produces the cash flow balance after Sources/Uses of Cash. A recap of how the Account Types are organized in the Kardin Reports. *note: the above account types are standard and non negotiable Budget Reports: Plus Less Less Equals Acct Type ID 1 Income (Acct Type ID 2 Op. Expense Recoverable) (Acct Type ID 3 Op. Expense Non Recoverable) Net Operating Income (assumed cash NOI) Less Equals (Acct Type ID 4 Non Operating Expenses) Cash Flow after Non Operating Expenses Less Equals (Acct Type ID 5 Debt Service) Cash Flow after Debt Service Less Equals (Acct Type ID 6 Capital Expenditures) Cash Flow after Capital Expenditures V. 35.xx Updated January

261 SECTION 7 PROCESSES / DAILY OPERATIONS: COA Setup General Rules/Guidelines Plus Less Equals Acct Type ID 7 Asset Level Income (Acct Type ID 8 Asset Level Expenses) Cash Flow after Asset Level Income/Expenses Less (Acct Type ID 9 Expenses/Adjustments for Net Income) Plus Capital Expenditures ** Equals Net Income (this is considered an accrual NI) **Capital Expenditures are automatically added back in to determine Net Income, however it is a hidden line item (not visible on reports) Monthly Cash Detail Plus Plus Plus Less Equals Beginning Cash Balance Cash From Operations (Cash Flow after Asset Level I/E) Acct Type ID 10 Sources of Cash Acct Type ID 11 Uses of Cash Ending Cash Balance V. 35.xx Updated January

262 SECTION 7 PROCESSES / DAILY OPERATIONS: Reporting with Alternate COA NEED Reporting with Alternate COA WHY? Some 3rd Party management companies my utilize their company chart of accounts, yet map to an alternate chart that represents the ownership chart of accounts. DAILY USE The "Master" Chart of Accounts replicates the accounting system used for daily operations, but allows for mapping to an alternate chart for reporting purposes. Reporting with Alternate Chart of Accounts (Budget *.cm3 or Reforecast *.rf3) The Alternate Chart of Accounts feature in the Kardin Budget System allows you to view your Budget and Reforecast Reports and Data in a different Chart of Accounts. You can also include your Budget and Reforecast files into a Consolidation or Analysis file, which uses the alternate chart as its Master Chart of Accounts. STEP I: Complete the Budget/Reforecast file. 1. Set up an Alternate Chart of Accounts (Refer to Section 3) 2. Complete the Budget/Reforecast file. STEP II: Export Budget Data with Alternate Chart. 1. Via Reports/Export, Select Export Tab. 2. Select Budget Data Export Wizard. V. 35.xx Updated January

263 SECTION 7 PROCESSES / DAILY OPERATIONS: Reporting with Alternate COA 3. From the Data Export Wizard make ALL appropriate selections with Alternate selected for COA. V. 35.xx Updated January

264 SECTION 7 PROCESSES / DAILY OPERATIONS: Reporting with Alternate COA 4. Click Create File. Navigate to desired folder and create file name. Then click Save. 5. When file creation is complete, you can close the Kardin file. STEP III: Set up a Kardin Budget/Reforecast using the Alternate Chart to create the Master COA. 1. Via Kardin, create a NEW budget *.cm3 file (or reforecast *.rf3 file). 2. Set up Property Information, including RSF total. This file will not be populated with suite/lease data; therefore the RSF will not have data to calculate and must be manually entered for reports to calculate $psf. 3. Then set up/import the Chart of Accounts. This Chart set up needs to reflect the Alternate Chart of Accounts. You will need to set up new categories and types to reflect the Alternate Chart. If this has already been done in another Kardin file, you can utilize the Import from Kardin File feature in Chart of Accounts. STEP IV: Import the GL Data from Spreadsheet 1. Open the.xls file as created in Step II above. a. First delete all un necessary columns to have the following remaining/required columns: PropID; ChartID; 2 blank columns; M1 thru M12. b. Highlight the data only and copy to clipboard. V. 35.xx Updated January

265 SECTION 7 PROCESSES / DAILY OPERATIONS: Reporting with Alternate COA 2. In Kardin, go to Budget Input. 3. Select Import Data from Spreadsheet. 4. Click on the Paste button. 5. If you are asked whether you want to paste your data according to Tab Order, press Yes. 6. Validate, then Upload Accounts. V. 35.xx Updated January

266 SECTION 7 PROCESSES / DAILY OPERATIONS: Reporting with Alternate COA STEP V: Print Reports using the Ownership Chart of Accounts 1. Go to Reports/Export in this Kardin file. Now you are able to print Kardin budget reports with the Alternate Chart. Note: only budget reports will be available. There is no leasing data or calculations set up in this file. V. 35.xx Updated January

267 SECTION 7 PROCESSES / DAILY OPERATIONS: Split Suites TITLE SUITE MANAGEMENT WHY? SPLIT A SUITE COMBINE SUITES SUITE REMEASUREMENT ADD / DELETE SUITE(S) DAILY USE Occasionally suite's measured RSF needs to be adjusted due to re measurement or movement Split One Suite into Two / More Suites STEP I Reduce the Measured RSF of Original Suite via Suites/Detail 1. Via Leasing/Recoveries, go to Suites 2. Go to Detail for the applicable original Suite (to be split) a. Enter the Effective Date and the New reduced SF b. Close STEP II Add a New Record to create Additional Suite 1. Go to the bottom of the Suite List and add a new record a. Enter the Suite Number, keeping the same # of digits as the others b. Measured RSF remains at 0 2. Go to Detail a. Enter the Effective Date and New SF, close STEP III Review SF by Suites Report V. 35.xx Updated January

268 1. Go to Reports and Export 2. Then to Other tab 3. Select SF by Suites SECTION 7 PROCESSES / DAILY OPERATIONS: Split Suites o o Figure 1: Original Suite click Detail and enter effective date and new RSF Figure 2: Add new record to bottom of Suite List; enter new Suite # leaving Measured RSF at 0. Go to Detail for new suite; enter Effective Date & RSF Figure 2 (Note: any lease assumptions assigned to Suite 3000 & 3001 from 7/1/11 will pick up the new RSF.) Figure 1 splitting Suite 3000 effective 7/1/11; entered effective date and new RSF Figure 2 added Suite 3001; entered effective date and new RSF V. 35.xx Updated January

269 SECTION 7 PROCESSES / DAILY OPERATIONS: Combine Suites Combine Two / More Suites STEP I Increase the Measured RSF of Primary Suite via Suites/Detail 1. Via Leasing/Recoveries, go to Suites 2. Go to Detail for the applicable Primary Suite a. Enter the Effective Date and the New increased RSF b. Close STEP II Decrease the Measured RSF of Secondary Suite via Suites/Detail 1. Go to Detail for the applicable Secondary Suite a. Enter the Effective Date and the New decreased RSF (enter 0 if you are merging the entire suite) b. Close 2. Measured RSF remains at original RSF Figure 3: o o Primary Suite go to Detail and enter effective date and increased RSF; close. Secondary to combine go to Detail and enter effective date & 0 RSF. (Note: Maintain the original Measured RSF in the main screen; changes are reflected via the Detail screen.) V. 35.xx Updated January

270 SECTION 7 PROCESSES / DAILY OPERATIONS: Re-Measure Suites Re Measure Suites If re measurement is effective with start of budget period: 1. Via Leasing/Recoveries, go to Suites 2. Enter the New Measured RSF for each applicable suite Figure 4 If re measurement is effective during the budget period: 1. Via Leasing/Recoveries, go to Suites 2. Go to Detail for the applicable Primary Suite a. Enter the Effective Date and the New measured RSF V. 35.xx Updated January

271 SECTION 7 PROCESSES / DAILY OPERATIONS: Re-Measure Suites Figure 5 If Re Measurement is effective with start of budget period, enter the new Measured RSF in the Suites Screen, figure 4 If the re measurement is effective during the budget period, enter the new RSF and the Effective Date in the Suites Detail screen, figure 5 STEP III Review SF by Suites Report 1. Go to Reports and Export 2. Then to Other tab 3. Select SF by Suites V. 35.xx Updated January

272 SECTION 7 PROCESSES / DAILY OPERATIONS: Add Suites Add Suites STEP I Via Suites, Add a New Record to Create Additional Suite(s) 1. Go to the bottom of the Suite List and add a new record 2. Enter the Suite Number, keeping the same # of digits as the others a. If new suite is effective with start of budget period, enter Measured RSF; b. otherwise if mid year addition, keep measured RSF at zero, then: i. Go to Detail ii. Enter the Effective Date and New RSF, close STEP II Review SF by Suites Report 1. Go to Reports and Export 2. Then to Other tab 3. Select SF by Suites V. 35.xx Updated January

273 SECTION 7 PROCESSES / DAILY OPERATIONS: Delete Suites Delete Suites STEP I Files that Include Retail Denominator Groups, Delete Suite from Denominator Group(s), if no Denominator Groups skip to Step II 1. Go to Denominator Groups, Select Suites to Include 2. Remove to be deleted Suite from Included to Available STEP II Delete Suite from Rent Roll 1. Go to Rent Roll 2. Select Record and Delete 3. Close from Rent Roll (do not Refresh screen as the suite will return to rent roll) STEP III Delete Suite from Suites 1. Go to Suites 2. Select Record and Delete STEP IV Review SF by Suites Report 1. Go to Reports and Export 2. Then to Other tab 3. Select SF by Suites V. 35.xx Updated January

274 SECTION 7 PROCESSES / DAILY OPERATIONS: Adding a Cost Center TITLE ADDING/DELETING COST CENTER IN MULTI BUILDING FILE WHY? ADD NEW BUILDING TO PROPERTY BUDGET REMOVE BUILDING FROM PROPERTY BUDGET DAILY USE Occasionally a building (cost center) is sold or a new one is built/added. Some users create multi building files for the purpose of tracking more than one cost center. Multi building files give the user the option to track/report on a single cost center as well as consolidated in multiple combinations. The key purpose is for tracking reimbursable expenses at the cost center level. Occasionally a cost center (building) is sold or a new one is built/added. These instructions will assist you with the adding and/or deleting a cost center within a budget or reforecast file. Adding a Cost Center STEP I Create a new cost center record in Property Information 1. From Main Menu, go to Property Information 2. Under Cost Center List a. Add a New Record. b. Enter the Cost Center ID and Name (also may enter any additional information applicable to this record) 3. Allocations a. Kardin will automatically create the required allocation of 100% to this new cost center b. You may add this new cost center to any other Allocation Tables, remembering to re allocate the % for all included cost centers within the allocation. STEP II Add all Suites for the New Cost Center 1. From the main menu, go to Leasing & Recoveries, then to Suites V. 35.xx Updated January

275 SECTION 7 PROCESSES / DAILY OPERATIONS: Adding a Cost Center a. At bottom of list, add new record(s) for each Suite that exists in the new Cost Center; remembering to include the Cost Center ID at the front of the Suite Number, CC Ste#; entering Suite Number and Measured RSF (note: the total RSF for this cost center will calculate and populate back in Property Information when the file calculation tables are updated). b. The new suites associated with the new cost center are now available in Rent Roll for lease assignments/assumptions. V. 35.xx Updated January

276 SECTION 7 PROCESSES / DAILY OPERATIONS: Adding a Cost Center Figure 6 Figure 7 V. 35.xx Updated January

277 SECTION 7 PROCESSES / DAILY OPERATIONS: Adding a Cost Center Figure 8 o Add the new cost center via Property Information, figure 6 o Add/amend Allocation Tables, figure 7 o Add all Suites inclusive of the new Cost Center, figure 8 V. 35.xx Updated January

278 SECTION 7 PROCESSES / DAILY OPERATIONS: Deleting a Cost Center Deleting a Cost Center Deleting a cost center is more involved. First, you will have to delete all sub records associated with this Cost Center. This may be a tedious process, depending upon the amount of data in your file associated with the Cost Center. IMPORTANT NOTES You may receive various messages along the way when trying to delete a record(s), read the message carefully as it will tell you where there is a linking or sub record that needs to be addressed first before you can delete. STEP I Amend Allocation Tables If you have any allocations that are split among multiple cost centers, you will need to remove the record for the cost center that is to be deleted and re allocate the percentages among the remaining cost centers so that the total is 100%. 1. From Main Menu, go to Property Information 2. Allocations a. Scroll thru Allocation Tables, via Next button. For all non required allocations, delete records for the cost center to be deleted and re assign the percentage breakout amongst the remaining cost centers. i. I.e. If you originally have 3 cost centers and an allocation table is set up to split: 33.33% to each cost center, you will need to delete the one that needs to be deleted and change the allocation to the remaining cost centers to 50% each (or the applicable breakout). V. 35.xx Updated January

279 SECTION 7 PROCESSES / DAILY OPERATIONS: Deleting a Cost Center Non Required Allocation; select record and delete Note: You will not be able to delete the allocations that are required/locked and 100% to the cost center that you are intending to delete. This will be done at the end. Adjust allocations to remaining cost centers. STEP II Delete associated Cost Center Record(s) in Budget Input and Current Year Actuals 1. Via Budget Input a. Scroll thru each GL account and delete records (non linking) that have the allocation of the specific cost center OR Change the Allocation Selection 2. Via Current Year Actuals (In a Reforecast file only) a. Go to Current Year Actuals Spreadsheet View/Import b. Select View Tab c. Select/Delete all records associated with the to be deleted Cost Center d. Repeat 2.b thru 2.c via Current Year Budget Spreadsheet View/Import STEP III Delete associated Cost Center Record(s) in Leasing and Recoveries 1. From the main menu, go to Leasing and Recoveries 2. If you have Retail Cam Pools set up, a. Go to Retail Expense Pools (yes to update) and delete the cost center from each applicable pool b. Go to Denominator Groups and delete the suites for that cost center in each applicable Denominator Group 3. Via Rent Roll, a. delete all records for the cost center and immediately close (do not refresh) V. 35.xx Updated January

280 SECTION 7 PROCESSES / DAILY OPERATIONS: Deleting a Cost Center 4. Via Suites, a. delete all suites for the cost center 5. Via Expense Codes, a. delete all Codes specific to the cost center; b. delete the cost center in codes that include multiple cost centers 6. Via Financials, yes to update, for EACH Historical (not current) Financial record:, a. go to View b. for each category related to the Cost Center i. go to Detail ii. delete ALL GL Account records iii. close and Delete the Category record iv. goal is to delete all categories for this cost center STEP IV Delete associated Cost Center Record(s) in Other sub calculation tables 1. Amortization a. Debt Service Tab: verify no allocations are linked to the associated cost center that needs to be deleted b. Amortization Tab: delete all records associated with cost center, except if any records with Code = GL you will need to do some additional steps to delete: a. Select all records, copy/paste into xls spreadsheet b. Go to Select Budget Capital tab and delete all records under Select Budget Capital to be Amortized this will remove all GL code records on Amortization Tab (when you have completed all steps and successfully removed the Cost Center, you may return to this screen and re assign the link for the selected budgeted capital) c. Back in the xls spreadsheet, o filter out the GL code records o delete records associated with cost center to be deleted o highlight and copy remaining GL code records d. back at Amortization Tab: paste (bottom left of screen) to bring data back in e. delete any additional records associated with cost center 2. If you have Cash Flow set up to calculate, a. go to COA Links to Budget and Clear the link for Cash Beginning Balance and Cash From Operations b. after you have deleted the Cost Center in the final step, you may return to COA Links to Budget to re set the link for these two calculations. STEP V Delete associated Cost Center Record(s) in User Defined Calculations 1. User Defined Calculation: a. yes to update V. 35.xx Updated January

281 SECTION 7 PROCESSES / DAILY OPERATIONS: Deleting a Cost Center b. for each calculation, go to cost center and delete the associated cost center c. Verify no allocations are linked to the associated cost center that needs to be deleted STEP VI Update File Update file to remove the links to the applicable cost center (you may update by going to reports/export). STEP VII Delete Required Allocation Table & Cost Center Once all links to cost center are gone, 1. go to Property Information a. go to Allocation and Delete the allocation for the specific cost center i. If you are to get the message that sub accounts still exist, you may need to go back to Financials *** (see step 3) and delete any remaining records for the cost center ii. Then you can return to delete the Allocation b. at the property information screen you may delete the Cost Center. V. 35.xx Updated January

282 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg. Files to Multi Bldg. File TITLE MERGING SINGLE BUILDING FILES TO A MULTI BUILDING FILE WHY? INCORRECT ORIGINAL SET UP OF EACH COST CENTER AS SINGLE BUILDING / SEPARATE BUDGET FILE; NEED TO CONVERT TO MULTI BUILDING DAILY USE Increase efficiency by including all cost centers into one multi building file vs multiple single building files. Multi building files give the user the option to track/report on a single cost center as well as consolidated in multiple combinations. The key purpose is for tracking reimbursable expenses at the cost center level; giving flexibility to report at consolidated level. In this documentation we are assuming the conversion of 2 single building.cm3 files to 1 multi building.cm3 file, whereby the multi building file will incorporate both buildings as 2 cost centers. Select the most complex file to be the master file (file that is populated with most leasing/recovery activity); other file(s) will be the sub files whereby the data will be extracted from and brought into the master file; with end result of all data in the master file. Merging Single Building Files to Multi Building STEP I SUB File: Change File Type 1. Open a sub file that is least complicated, we ll reference as File1.cm3 a. Via Property Information, i. change Budget Type from Single to Multi building, figure 9 ii. Cost Center ID needs to reflect the original Property ID, figure 10 V. 35.xx Updated January

283 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg Files to Multi Bldg File Figure 9 Figure 10 STEP II SUB FILE: Export Suite/Tenant Data 1. Also in File1.cm3 a. From main menu, go to Reports/Export b. At the Export Tab i. Export Suites, Tenants, Rents, figure 11 Note: you need to export each individually and be sure to know where you are saving the xls file; file name cannot exceed 8 characters c. Close File1.cm3; note, if you are converting more than 2 files to 1, you will need to open each sub file and repeat steps 1 & 2. V. 35.xx Updated January

284 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg. Files to Multi Bldg. File Figure 11 STEP III MASTER FILE: Add additional Cost Center(s) 1. Open the Master file, we ll reference as File2.cm3 2. Via Property Information, a. change Budget Type from Single to Multi building b. Cost Center ID needs to reflect the original Property ID c. Property ID may be changed to reflect a consolidated ID number to represent the project d. Add Cost Center record for each applicable building, figure 12. Figure 12 V. 35.xx Updated January

285 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg. Files to Multi Bldg. File STEP IV MASTER FILE: Import Budget Data from Sub File 1. Via Budget Input, a. Select Import Data from Kardin File, Figure 13 b. Select File to Update From, choosing your File1.cm3, Figure 14. c. Select ALL Accounts to the Will Import (you may use the double arrows in the center to move all accounts at once), Figure 15. d. Update Budget Data e. Answer No to Do you want to delete the existing data, Figure 16. Figure 13 Figure 14 V. 35.xx Updated January

286 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg. Files to Multi Bldg. File Figure 15 Figure 16 STEP V MASTER FILE: Import/Upload Suites, Tenants, Rents from.xls 1. Via Leasing and Recoveries, a. Select Import from Spreadsheet, Figure 17 b. Upload Suites, Tenants, Rents from xls adding to the suites and rent roll (copying/pasting from xls files that were exported during Step II) i. Paste in Suites, Tenants and Rents (to each respective tab) for all cost centers being added, Figure 18 V. 35.xx Updated January

287 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg. Files to Multi Bldg. File ii. iii. iv. Note: Rents xls file will require the addition of the ChargeCode column; create a code (i.e. Rent) in the spreadsheet and type in the same code on the Charge Codes tab in Kardin. Validate data Upload/Update the next selection will be to UPDATE data to suites and rent roll, which is selection 2, Figure 19. c. Note: i. If there is any historical Financial records in the file, you will need to re import from spreadsheet all GL detail for both cost centers ii. If you are merging data for reforecast.rf3 files, you will also need to re import: Current Year Actuals and Current Year Budget to include all GL data for all cost centers Note: Figure 17 Xls Suites data will need to be amended to include the CC# in front of the Ste. #, as you see in the example. Using MS Excel formulas such as =concatenate (a2,,f2) via column D will aid you in getting this result. Highlight/copy data in columns A,B,C and paste into Suites tab above, Figure 18. You will need to do the same function in the Tenants and Rents xls file. V. 35.xx Updated January

288 SECTION 7 PROCESSES / DAILY OPERATIONS: Merging Single Bldg. Files to Multi Bldg. File Figure 18 Figure 19 V. 35.xx Updated January

289 SECTION 7 PROCESSES / DAILY OPERATIONS: TITLE IMPORTING "UPDATED" REFORECAST DATA INTO NEXT YEAR'S BUDGET WHY? THE REFORECAST FILE HAS BEEN UPDATED AFTER NEXT YEAR'S BUDGET FILE CREATION DAILY USE There are instances when you completed the "current year" reforecast, created the "next year's" budget and done various amouts of entries. The files are not linked and you need to run variance analysis reports comparing CY Reforecast to NY Budget. V. 35.xx Updated January

290 SECTION 7 PROCESSES / DAILY OPERATIONS: Importing updated Current/Prior Reforecast numbers into the Next Year s Budget/Reforecast File STEP I Update the CY Reforecast and Export the Data to.xls 1. Once you have completed your newest updates to your Current Year Reforecast file (*.rf3), export the updated data to Excel: a. Go to Reports/Export b. Export Tab c. Via Budget Data Export Wizard d. The default selections, as per below, will work perfectly (NOTE: in a multi building file, you will need to select separate for cost centers). e. Click on Create File. V. 35.xx Updated January

291 SECTION 7 PROCESSES / DAILY OPERATIONS: Importing updated Reforecast Numbers f. Create a name, such as 2015Reforecast, file type should be xls; click Save (making sure you know which folder you are saving the spreadsheet to). g. When creation is complete, close the *.rf3 file. STEP II Import the Current Year Reforecast Data into Next Year s Budget File 1. Open Next Year s Budget file 2. Import the updated reforecast data from.xls a. Go to Leasing and Recoveries b. Go to Financials c. Select Edit for Current Year Reforecast V. 35.xx Updated January

292 SECTION 7 PROCESSES / DAILY OPERATIONS: Importing updated Reforecast Numbers d. You will get the following message. Click Yes. f. Now, open the *.xls file as created from the current year Reforecast.rf3 file (refer to Step I) i. You will need to delete some unnecessary columns, leaving the following: PropID (or PCID for multi building files), ChartID, M1 thru M12. ii. Highlight the data under columns (PropID/PCID, ChartID, M1, thru M12) and copy. Best not to highlight/copy the headers. iii. Back in the Kardin File, click on the Paste button. V. 35.xx Updated January

293 SECTION 7 PROCESSES / DAILY OPERATIONS: Importing updated Reforecast Numbers Necessary Data for Import: PropID (or PCID in case of multibuilding) ChartID M1 thru M12 Delete all other columns iv. Validate, Adjust Signs, and Upload Actuals The current year reforecast data is now updated in your next year s budget file you will do this same process each time you make adjustments to the *.rf3 file. V. 35.xx Updated January

294 SECTION 7 PROCESSES / DAILY OPERATIONS: Creating Multiple Year Budgets TITLE CREATING MULTIPLE YEAR BUDGETS WHY? TO ACCOMMODATE THE NEED FOR 2/MORE YEAR BUDGETING DAILY USE Some owners / portfolio funds require future year projections. Kardin will allow this by creating multiple files and linking each back to year one. Some owners / portfolio funds require that future year projections, i.e. 5 year budgets, are created each budget season. Kardin allows this process by creating multiple files and linking each back to year one. Keep in mind that each file (year) is technically independent, however with the linking function in Leasing/Recoveries, the relationship between files creates a bond. This bond/link requires that the files stay together. Each time you update a record via Leasing in one file, all linking files are updated with the same data. Creating Multiple Year Budgets STEP I Complete Year One Budget File You will begin the process by completing all detail in Year 1. Once you have completed everything for the first year budget and verified the validity of all assumptions, you are ready to set up a Year 2 budget. STEP II Create / Complete Year Two Budget File V. 35.xx Updated January

295 1. Make a copy of your 1st Year Budget. a. While YR 1 Budget File is open, select File / Backup File b. Name the new file, YR 2 Budget File, and save. c. Close YR 1 File. SECTION 7 PROCESSES / DAILY OPERATIONS: Creating Multiple Year Budgets 2. Open and complete YR 2 Budget File. At this point, the Year 2 budget file is a carbon copy of the 1 st Year Budget. a. File / Open Budget File, select the YR 2 File.cm3 b. Go into Property Info/Budget Year and change the year of the budget start date to represent the 2 nd budget year. c. Link the leasing information for the YR 2 Budget File to the YR 1 Budget File (source data file). V. 35.xx Updated January

296 SECTION 7 PROCESSES / DAILY OPERATIONS: Creating Multiple Year Budgets d. Set up CAM pools for Year 2. i. Go to Expense Schedules, say NO to update. (After all Expense Schedules have been added, you may update the file) ii. Create Expense Schedules for YR 2 Budget File. If you look in Rent Roll and the Reimbursement Detail for a tenant who has a base year, you will see that the system automatically set the new current year as Year 2. If you try to run reports without setting up CAM pools for the Year 2, the code will not run and will tell you that there are no matching cam pools that are used by tenants. e. Update Rent Roll i. Apply leasing assumptions for Year 2. ii. Update/Enter Base Year Expense Reimbursements as necessary f. On the expense side, you can increase any GL account or groups of accounts by a specified percentage. Use the Percentage Increase feature (from the main menu) to do global expense increases in the file. If you have a major adjustment to make, simply go into Budget Input and change the data. Please understand that the linking relationship does not affect Budget Input or % Increase these features are independent in each file. However, Budget Input in each file flows into Financials, which is part of Leasing and Recoveries and therefore updated in each linking file. All financial records for all linking years will be available in Financial Summary and Budget Analysis reports. g. Run reports to update the file calculation tables and review for accuracy. 3. Repeat steps A through I for Budget years 3 thru 5. Note: Each year s file will be linked back to the source (Year 1) file. The % Increase will need to be adjusted in each subsequent year s file. The % Increase feature does not calculate a compounding increase from year to year; the calculation is increasing the base data entered into the source (Year 1) file. Therefore a manual adjustment to the % increase is necessary in each file. I.e. when projecting a 2% increase each year: enter 2% in Year 2 file; 4% in Year 3 file; 6% in Year 4; and 8% in Year 5. Linking files will only update Leasing Data from file to file and NOT Budget Input, Percentage Increase, User Defined Calculations, Payroll nor Amortization Schedules. V. 35.xx Updated January

297 SECTION 7 PROCESSES / DAILY OPERATIONS: Creating Multiple Year Budgets IMPORTANT NOTES: Note 1: At this point, all the information is self contained. In other words, if you make changes in the YR 2 Budget File, it will not affect the Rent Roll in the YR 1 Budget File. To accommodate the need for Multiple Year Budgeting, a Link feature has been added to Leasing and Recoveries to allow different budgets from various files to share the same leasing and recovery information. Note 2: Once the link has been established, all leasing data will be shared with each linking file, including Financials data. Note 3: This source data file can be your YR 1 Budget File or you can even set up another file with all the leasing data and use that as the source file for every year as your budget year changes. Note 4: Once the link is setup, if you change your mind about a lease, no matter where you change it, in the source file, YR 1 Budget File, or the YR 2 Budget File, it always changes all files linked to the source file. Note 5: Linking files will only update Leasing Data from file to file and NOT Budget Input, Percentage Increase, User Defined Calculations, Payroll or Amortization Schedules. However, Budget Input in each file flows into Financials, which is part of Leasing and Recoveries and therefore updated in each linking file. All financial records for all linking years will be available in Financial Summary and Budget Analysis reports. PRINTING THE FINAL REPORTS When you are using the link feature, a change in one file will affect the other files, but these changes are not fully registered in the other files until each file is opened and the reports button is pressed. This will run the code and recalculate the output data based on any changes in the shared budget information. In order to assure that the data for all of the budget files reflects the latest changes made in any of the files, you must use the following procedure. In order to be sure that all of the reports in each budget reflect the latest changes made to any other file, you must open each file and press the Reports button to run the code that updates the budget data. When the code V. 35.xx Updated January

298 SECTION 7 PROCESSES / DAILY OPERATIONS: Creating Multiple Year Budgets has finished running, you can close the file and do the same for the next file. Do not print any report until you have updated all of the linked budget files. When you have run the update code for all of the files sharing linked information, you can then open the first file and start printing your reports. While some reports will produce the same results whether or not this procedure is followed, others (such as the Financial Summary report) will show the changes caused by the updating of the other files. You must follow this procedure if you change any budget data and you want to recalculate a KCS Analysis file using a linked budget. FINAL CONSIDERATIONS FOR A MULTI YEAR BUDGET PROBLEM: Removing a Link will remove all data from each file that was entered via another file. SOLUTION: Before removing the link, BACKUP each file 1. Open YR 1 File, File/Backup File (this will copy the file) 2. Open YR 2 File, File/Backup File. Do this for each linked file 3. Open each backup file and Remove the Link from each back up 4. Delete the original files and replace with the backup files 5. Each file is now independent with all data. PROBLEM: You have completed your multi year budget. A year later, you start a new multi year budget that includes a new year, and drops the old first year. Remembering that the old Year 1 file was the source file, you may not be including the budget file that has the leasing data the other files are linked to. SOLUTION: In order to use the same leasing data in the new set of budgets, you must use the following procedure. (The following assumes that you have completed a five year budget and the last four years are linked to the data in the first year s budget. Ex with the source data in the 2012 file.) Before you begin working on the next set of budgets ( ), do the following 1. Create two sub folders via My Computer. Call one 2011Budgets and the other 2012Budgets. Move the files to folder 2012Budgets 2. Via Kardin, open original YR 2 Budget File (2012.cm3). Use the File/Backup feature from the main menu, and give the backup the same name, however save to the folder 2013Budgets. While the backup feature maintains the link, it also makes a complete copy of the linked leasing data. 3. Close this file down. Open the new 2013 file that you just created using the backup feature, remembering to select the 2013Budgets folder as the file source. 4. Go to Leasing and Recoveries menu and unlink the file. Once the link has been cleared, you will see the message This file is not linked to any other file. You may now update this file as your new base file and continue on with the budgeting process for multi year budgeting. V. 35.xx Updated January

299 ADDENDUM Errors and Possible Errors Rent Roll ERRORS AND POSSIBLE ERRORS RENT ROLL SINGLE/MULTI BUILDING RENT ROLL REVIEWING THE REPORT If there are any errors and/or possible errors in your file Rent Roll, you will experience a message when: 1. Accessing Rent Roll 2. Updating file Calculations via Financials, Expense Schedules or User Defined Calculations 3. Accessing Reports and Export Selecting Yes, will display the following chart. All Errors must be addressed and corrected before you may proceed with updates to the file. Possible Errors are simply to make you aware of potential conflict in case you might need to address the situation, but leaving as is will have no impact on the file calculation. Note: View Report will produce a report screen where you can view all error descriptions. 299

300 ADDENDUM Errors and Possible Errors Rent Roll Errors and Solutions Below is a list of Errors that may be included in your errors list: Error: No matching CAM Base Year Expense Schedule No matching TAX Base Year Expense Schedule No matching INS Base Year Expense Schedule No matching UTIL Base Year Expense Schedule Problem: an Expense Reimbursement Method of BASE SCHEDULE was setup for a tenant however a BASE Expense Schedule does not exist. 1. Maybe you are beginning with a new file 2. Maybe you added a new Tenant with Base Schedule method, but did not added the Base Expense Schedule. 3. Maybe you haven t set up any of the Expense Schedules yet 2015Actuals GU100 is not set up in the Expense Schedules 300

301 ADDENDUM Errors and Possible Errors Rent Roll Solution: Option 1: via Rent Roll / Exp. Reimb., Change Method to: OR BASE AMOUNT, then hard key in base year and total base amount, BASE STOP, then hard key in base year and $PSF base amount Option 2: Via Expense Schedules, add the Missing Base Expense Schedule from drop down menu, select Base Year/Type ; note: you must have this base year data populated in Financials to create an expense schedule; if you do not, add information under Financials before continuing, or select Option 1 (above) from drop down menu, select applicable Expense Code, then complete the remaining set up (data level and detail) 301

302 ADDENDUM Errors and Possible Errors Rent Roll Error: Missing Expense Code for CAM Missing Expense Code for TAX Missing Expense Code for INS Missing Expense Code for UTIL Problem: an Expense Reimbursement Method was selected for a tenant however the Expense Code field was left blank (incomplete set up) 302

303 ADDENDUM Errors and Possible Errors Rent Roll Missing Expense Code Solution: via Rent Roll / Exp. Reimb. Option 1 Change Method to NONE Option 2 Select Expense Code from drop down menu Note: If the dropdown menu is empty, then no schedules have been set up. Change the reimbursement method to none to remove the error 303

304 ADDENDUM Errors and Possible Errors Rent Roll Error: No matching CAM Current Expense Schedule No matching TAX Current Expense Schedule No matching INS Current Expense Schedule No matching MF Current Expense Schedule Problem: an Expense Reimbursement Method was setup for a tenant however a CURRENT Expense Schedule does not exist. Some possible causes: 1. If you rolled your Current Budget into a Reforecast or a Next Year s Budget file, the Expense Schedule becomes a prior period Expense Schedule in the newly created file. You must add an Expense Schedule for the newly created file to represent Current. If it s a Base Year Schedule, only the Year/Type of the existing Expense Schedule needs to be updated to Current. 2. If you created a new Expense Code, you must create a new Expense Schedule for the new code. 3. If you have not set up any Expense Schedules, you must do so. 304

305 ADDENDUM Errors and Possible Errors Rent Roll 2016Budget MF is not set up in the Expense Schedules (see illustration on next page) This is the Expense Schedules List 2016Budget MF 305

306 ADDENDUM Errors and Possible Errors Rent Roll Solution: via Rent Roll / Exp. Reimb., Option 1 Change Method to NONE Option 2 Via Expense Schedules, add the Missing Expense Schedule from drop down menu, select Current Year/Type Financial from drop down menu, select applicable Expense Code, then do remaining set up (data level and detail) Note: In this example, the CURRENT Year/File Type is 2016 Budget. You must have Expense Schedules for the Current Year File for ALL Expense Codes that are selected via Rent Roll / Exp. Reimb. Error: Tenant Improvement allocations don t add up to 100% Problem: Tenant Improvement set up is incomplete. Maybe a % figure was entered incorrectly. Maybe the breakout was not finished. The total % must be 100%. 306

307 ADDENDUM Errors and Possible Errors Rent Roll Solution: via Rent Roll / TI / add or change allocations to total 100% Total is 50%; must be 100% 307

308 ADDENDUM Errors and Possible Errors Rent Roll Error: Percentage Sales Error. Problem: This means % Sales have been set up for this tenant, but the data may be incomplete or incorrect. View the error detail via Rent Roll / % Sales Error Detail This error means incomplete set up. Solution: Option 1 delete the Sales Type Record Option 2 enter the Estimated Monthly Sales for this Sales Type 308