The Community Development Network

CDN Industry Goals & Resources

The Community Development Industry Goals for Fiscal, Property and Asset Management
These goals were produced by community development practioners within working group meetings over the course of a year. The fifty-five Goals adopted by the Community Development Network member organizations include both qualitative and quantitative success measures in each focus area. The Industry Goals document contains descriptions of the Goals and specific formulas as well as comments and identified barriers.

Download a copy of the Community Development Industry Goals

Please note that only the text of the Industry Goals appear in the table. A complete Industry Goals document is available through the CDN office or as a PDF.

CDN Industry Goals Resource Guide
A companion to the Community Development Industry Goal for Fiscal, Asset & Property Management, the table below contains resources specific to each of the Industry Goals. Resources include links to information on the web, documents in PDF format, and titles available for check out from the CDN Resource Library. These resources will increase over time as CDCs share information and new documents are discovered through industry research.

If you have questions about a resource listed or would like to suggest additional items to list in the Resource Guide, please contact our Network Assistant at the Community Development Network.

Fiscal Management
Asset Management
Property Management

Fiscal Management Qualitative Goals
1. Board Responsibilities: Board demonstrates that they take responsibility for financial oversight. This includes the following:
A board treasurer is identified who recognizes the fiduciary responsibility of the board and the necessity to become familiar with the organization’s financial structure.		PDF: Common Financial Reports for Management and Board
Board regularly reviews income & expenses vs. budgeted performance (at least quarterly), with explanation for variances.		Sample job descriptions for boards members are available from the Free Management Library at: http://www.mapnp.org/library/boards/brdjobs.htm and from the Minnesota Council of Nonprofits at http://www.mncn.org/bdpos.htm
A process for budget preparation and modification is in place that involves board approval.		CDN Resource Library: Understanding Financial Statements from the Money Management volume of the Enterprise Foundation Community Development Library.
Board ensures that comments in the auditor’s management letter to the board are adequately addressed and resolved.		CDN Resource Library: Board of Directors Reference Manual
Board receives adequate training in understanding and analyzing organizational financial information.

2. Audits
Annual, independent audit is completed as required, in a timely manner, and reviewed by the board.		PDF: How to Prepare for an Audit an FAQ from The Nonprofit Genie website. (make PDF from file in Goal Resources)
		CDN Resource Library: The Oregon Nonprofit Handbook, Chapter 25,

3. Budget System
a) Annual budget process is in place that projects revenues and expenses and incorporates balance sheet items.		CDN Resource Library: Creating a Budget that Works Statements from the Money Management volume of the Enterprise Foundation Community Development Library;
b) Budget is reviewed and modified regularly.		CDN Resource Library: The Oregon Nonprofit Handbook, Chapter 20,
c) Budget process includes key staff and board in its development.		CDN Resource Library: Managing the Money Side, Chapter 4,
d) Organization grant and contract budgets articulate (are compatible) with accounting system.
e) Budgets are prepared at beginning of each project and monitored throughout the project.

4. Financial Statements & Cash Flow
a) Statement of activities and statement of financial position are prepared regularly.		PDF: Managing Cash Flow (Goals Resources file
b) Systems are in place to measure and project adequate cash flow.		CDN Resource Library: Managing the Money Side, Chapter 5,
c) Organization plans for ability to internally generate investment funds, evidenced by cash on hand or easy access to cash (e.g., by assuring sufficient operating income, or establishing predevelopment reserve fund or line of credit).		CDN Resource Library: Developing Realistic Cash Flow Projections from the Money Management volume of the Enterprise Foundation Community Development Library;
		Information on how CDCs generate their own investment capital: Entrepreneurial Community Development: Exploring Earned-Income Activities and Strategic Alliances for Community-Development Nonprofits; Ellen Stiefvater, Fellowship Program for Emerging Leaders in Community and Economic Development. Available as a PDF from the Joint Center for Housing Studies at Harvard University at http://www.jchs.harvard.edu/publications/WP2001/W01-12_steifvater.pdf
		Book: Brown, Peter C.; Taft Group. The Complete Guide to Money-Making Ventures for Nonprofit Organizations. Detroit,MI: Taft Group. 1986. xiv, 233 p.

5. Policies & Procedures:
Clear written procedures and policies exist and are followed in daily practice and updated regularly.		CDN Resource Library: Oregon Nonprofit Corporation Handbook, Chapters 22, 24 and appendix 16.
		CDN Resource Library: Fiscal Policies & Procedures, REACH CDC (text change)
		See resources for Goal 8 below.

6. Accounting System:
Accounting system is able to produce accurate, timely and useful financial statements and other reports for management as needed.		See Software from the Internet Nonprofit Center’s FAQ at: http://www.nonprofits.org/npofaq/
a) For information on how to evaluate and acquire useful accounting software:		See About.Com’s software guide at http://nonprofit.about.com/cs/npoacctsoftware/index.htm
		See LISC Resource on selecting accounting software for your CDC at: http://www.liscnet.org/resources/experts/
		See nfpAccounting at: http://www.nfpaccounting.com

7. Cost Accounting:
a) Procedures are in place for tracking all costs by project, including pre-development costs.		OMB Circular A-122: http://www.whitehouse.gov/omb/circulars/a122/a122.html
b) All appropriate project costs are capitalized.		See Chapter 6, Cost Allocation & Cost Pooling at: http://wtw.doleta.gov/techassist/tag/ch02.pdf
c) Cost allocation plan that meets A-122 requirements is used to allocate shared and indirect costs.		CDN Resource Library: Oregon Nonprofit Corporation Handbook, Chapter 20
d) Cost recovery is incorporated into project budget.

8. Internal Controls
Internal controls are in place and monitored for: cash management, risk management, payroll, cash receipts, account payable, purchasing and receiving, grants and contract management, inventory, fixed assets and data processing systems.		PDF: Refining Your Internal Accounting Control System
Regular oversight (including board review and financial analysis) is undertaken of the organization’s partnerships and subsidiaries, if applicable.		Protecting Against Fraud, Forgery, Theft and Terrorism from the Free Management Library at: http://www.mapnp.org/library/risk_mng/ risk_mng.htm#anchor533812
		c) See above Goal 5.

9. Compliance/reporting
Fiscal compliance with government regulations and contract requirements is monitored.		l See Asset Management Qualitative Goal 2.
Organization supplies accurate, comprehensive and timely financial reports to multiple funders operating on varied schedules.

10. Staffing
Qualified staff capacity is developed for adequate financial reporting and analysis or financial services are contracted out to a qualified provider of fiscal services.		PDF: Fiscal Staff Hiring Guide
Adequate and ongoing training is available for fiscal management staff.		For training opportunities see The Association for Oregon Community Development Organizations’ training calendar at: http://www.aocdo.org/ subjectindex.cfm?ModuleID=CALENDAR

11. Risk management
Adequate insurance coverage is maintained.		CDN Resource Library: Asset Management: A Guide to the Roles & Responsibilities... Exhibits
		See the Nonprofit Risk Management Center’s free advice at: http://www.nonprofitrisk.org/advice/advice.htm#online
		The Alliance for Nonprofit Managment has extensive resources on insurance and risk management at: http://www.allianceonline.org/faqs.html
		See theRisk Control Glossary for development projects at: http://www.enterprisefoundation.org/resources/ERD/ resource.asp?id=1257&c=3&a=view&f=browse

Fiscal Management Quantitative Goals:

Sample Financial Statements and an answer key developed for a CDN Industry Goals Training are available as a separate PDF file. This document will assist you in computing the ratios based on sample financial information.

Asset Management
Asset Qualitative:
1. Reporting:
a) Organization has ability to produce, per property: Income and expense statement, converted to cash basis Monthly YTD budget Vacancy rate Rent collection rate
b) Timely asset management reports provided to board and management staff.

2. Financial Obligations in Joint Ventures:

a) Minimum requirements of all financial partners are met, including debt service coverage, deposit to operating reserves (when needed) and replacement reserves.

CDN Resource Library: TRACKIT!, excel based software created by LISC, and the access tracking database developed by Northwest Housing Alternatives.

b) Timely reports to all funders are prepared and submitted as required

CDN Resource Library: Asset Management: A Guide to the Roles & Responsibilities... Exhibits

3. Preventative Maintenance:

Properties have and follow a preventative maintenance plan to ensure the viability of the project through the compliance period and beyond.

Sample preventative maintenance plans available online at: http://www.cham.org/fmsearch.html

b) Timely reports to all funders are prepared and submitted as required

CDN Resource Library: Guide to Comprehensive Property Management, Appendix A5.

4. Asset Management Plan:
Implementation of a board adopted Asset Management Plan, outlining:		CDN Resource Library: Asset Management: A Guide to the Roles & Responsibilities...
A philosophical or guiding statement that expresses the values, goals, and objectives of the CDC as an owner and steward of assets;		Outline of a Residential Property Management Plan available at: http://www.enterprisefoundation.org/ model%20documents/e473.htm
The respective roles, responsibilities, and duties of the CDC’s board, executive staff, and the asset management staff in managing the real property assets of the CDC;
Basic criteria for initial selection and ongoing evaluation of the property manager;
A description of board, staff, and property manager reporting and review requirements;
Core asset management operating policies and practices.

5. Annual Report:
Organization relays the financial position of its assets annually to the community.

6. Operating Expense Monitoring:
a) Structured feedback loop is in place to share project operating expense information with staff who generate development Proformas, so that current cost levels inform future project cost assumptions.		CDN working groups are in the process of addressing these outcomes and will develop an agenda to address barriers and develop best practices in this area.
b) New project operating expenses are tracked at the project level, and compared to original budget projections on a quarterly basis.

Asset Management Quantitative:
1. Debt Service Coverage Ratio (DSCR): 1.2 to 1.3		l CDN Resource Library: Asset Management: Strategies…, Ch. 2

2. Operating Reserves: 3 months of operating expenses

3. Replacement Reserves:
Deposits are made (as identified in project Proforma) that are sufficient to fund projected repairs and replacements over the next five years, as specified in each project’s unique long-term capital replacement plan.		See Housing Development Center’s Replacement Reserve Model and worksheets at: http://www.hdc1.org/downloadable_publications.html

4. Capital Needs Assessment:
Completed every 5 years, updated annually, and incorporated into annual budgeting process.		CDN Resource Library: Asset Management: Strategies…, Ch. 2

Property Management
Property Management Qualitative:
1. Job Descriptions:
Written job descriptions completed for roles of management staff, administrative staff, and board.		CDN Resource Library: Guide to Comprehensive Property Management, Appendix A6.
		CDN Resource Library: Human Resources Management for Public & Nonprofit Organizations
		See links for board job descriptions, Fiscal Management Qualitative Goal 1.

2. Performance Evaluation:
Systems in place for monitoring the ongoing performance of in-house or contracted management staff.		CDN Resource Library: Guide to Comprehensive Property Management, Appendix A7, A8.
		CDN Resource Library: Human Resources Management for Public & Nonprofit Organizations
		CDN Resource Library: Board of Director’s Training- Tools for Performance: Planning & Assessment

3. Training:
a) Management skills training delivered to all hands-on personnel.		For information about CHAM’s two certifications: the Nonprofit Housing Management Specialist (NHMS®) and the Certified Housing AssetManager (CHAM) see: http://www.cham.org/training.asp
b) Appropriate certification where possible.		For training opportunities see The Association for Oregon Community Development Organizations’ training calendar at: http://www.aocdo.org/subjectindex.cfm? ModuleID=CALENDAR
		CDN Resource Library: Board of Director’s Training- Tools for Performance: Planning & Assessment

4. Policies & Procedures:
Written policies and procedures in place that deal with important aspects of leasing, maintenance and asset management.		CDN Resource Library: Sample property management procedures manuals and Guide to developing property specific procedures
		Sample Leasing and Maintenance form available from CHAM: http://www.cham.org/fmsearch.html

5. Resident/tenant selection criteria:
Responsibly balance mission with the pragmatic needs of the project.		CDN Resource Library: Guide to Comprehensive Property Management, Ch. 1, Appendix A1.
		CDN Resource Library: The Landlord Training Program- Keeping Illegal Activity Out of Rental Property
		CDN Resource Library: Sample CDC Tenant Screening Criteria

6. Organizational Planning:
a) Adequate planning undertaken prior to an owner taking over direct management of projects.		CDN Resource Files: The Options of Property Management
b) Process in place for assessing potential new developments that considers management capacity.		CDN Resource Files: Nonprofit Capacity Self-Assessment Workbook for Rural Community-Based Housing Organizations.
		Housing Assistance Council’s Publication "Should We Do It Ourselves or Hire Someone Else? ": A Rural Property Management Planning Guide available at : http://www.ruralhome.org/pubs/publist.htm
		CDN Resource Library: Guide to Comprehensive Property Management, Ch. 4., Appendix D.
		PDF from CHAM: Property Management Takeover Checklist: http://www.cham.org/fmsearch.html

7. Tracking Maintenance:
Database maintained to track maintenance work and spending by project.

8. Budget Monitoring Systems:
a) Project operating income and expense discrepancies are analyzed for implications on total budget.		CDN Resource Library: Guide to Comprehensive Property Management, Ch. 1..
b) Current income and expense data is used to project long-term net surplus or deficit.

9. Resident & Community Input:
Property management undertaken in a manner that is sensitive to residents and the broader community.		See CHAM’s forms for Resident Relations at: http://www.cham.org/fmsearch.html
Defined procedures are in place for incorporating/responding to resident and community input.		For information on How to conduct focus groups see http://www.tgci.com/publications/99fall/ conductfocusgp.html or for more details http://www.unu.edu/unupress/food2/ UIN03E/uin03e03.htm or
Active resident involvement incorporated in addressing building and neighborhood issues.		CDN Resource Library: Guide to Comprehensive Property Management, Appendix A8.

10. Relationship Building:
Effective working relationships in place with local service agencies and other organizations necessary to support property management and resident focused programs.		CDN Resource Library: Human Service Directory 2002 Multnomah County or
		View many of the same United Way Affiliate listings online at: http://www.unitedway-pdx.org/frame-family.html

Property Management Quantitative:
1. Occupancy Rate: >96 %		CDN Resource Library: Successful Residential Management, Ch. 6 Leasing.
Percent of rental units occupied or subleased by partnering agency (e.g., a social service agency).		For marketing and leasing resources see: http://www.cham.org/fmsearch.html

2. Rent Collection: >96 %

For rent collection tips see: http://www.russsandlin.com/collect.htm

3. Re-certification:
a) 100% of certifications are renewed on or before renewal date.
b) Re-certification of tenant eligibility (i.e. income, household size, etc.) to meet lender/program requirements with respect to tenant participation in programs
c) Management maintains system to note time frame within which re-certification process must begin, per property.

4. Evictions:
a) Notices of nonpayment should be served by the 10th of the month.		CDN Resource Library: The Landlord Training Program- Keeping Illegal Activity Out of Rental Property
b) Revisit selection criteria and selection process if >10% residents removed per year
c) Less than 10% FEDs filed (or eviction processes initiated) result in tenant removal

5. Resident Turn-over: within 5% of rate projected in annual budget

For tracking and surveying of reasons for resident turnover, and related moving documents see: http://www.cham.org/fmsearch.html

6. Maintenance Expense: within 5% of rate projected in annual budget

For cost savings measures see Tips and Strategies for Controlling Costs in Affordable Housing: http://www.enterprisefoundation.org/model%20documents/e1379.htm

7. Unit Inspections: Once every 6 months, or once per week if vacant		CDN Resource Library: Residential Rehabilitation Inspection Guide
		Inspection form and Unit Service Record available at: http://www.cham.org/fmsearch.html

8. Work Order Response:
a) Emergency/immediate response: 24 hour call		Service Priority List available at: http://www.cham.org/fmsearch.html
b) Corrective non-emergency: 3-5 days, with anticipated schedule communicated to tenant in timely manner
c) Routine: as scheduled
d) Capital improvement: as scheduled
e) Deferred: as scheduled/necessary

9. Payments: Within terms
Time frame within which payments to all vendors, utilities and taxes are made, tracked on per-project basis.

10. Unit Turn-over Time: 3-5 business days
The number of days after a tenant vacates before the unit is ready for the next occupant (does not apply to units in which capital improvements will exceed 50% of total turnover needs).		Make Ready Checklist available at: http://www.cham.org/fmsearch.html

11. Waiting List: Updated every 6 months
The number of days after a tenant vacates before the unit is ready for the next occupant (does not apply to units in which capital improvements will exceed 50% of total turnover needs).		Make Ready Checklist available at: http://www.cham.org/fmsearch.html

General CDC Resources:
The number of days after a tenant vacates before the unit is ready for the next occupant (does not apply to units in which capital improvements will exceed 50% of total turnover needs).
Sample personnel policies from Minnesota Council of Nonprofits http://www.mncn.org/sampers.htm
CHAM forms for Maintenance, Marketing, Leasing, Move in/Move out http://www.cham.org/fmsearch.html
TRACKIT asset management software available from LISC http://www.liscnet.org/whatwedo/programs/odi/index.shtml
Board Orientation Packet, REACH CDC