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Guest House RFP# 15-129 4. PROJECT MANAGEMENT PLAN <br />33 | Page  <br /> <br />All regulatory reporting documents will be completed in conjunction with the Owner and <br />will be based upon the requirements of the regulatory agencies. At a minimum, the <br />Owner shall receive monthly reports concerning the following: <br /> <br />a) Cash status report including cash receipts, disbursements and receivables. <br />b) List of accounts payable. <br />c) Comparisons of actual versus budgeted operating costs as well as comparisons with the <br />operating costs in the previous year. <br />d) Vacancy report. <br /> <br />2. Operating Disbursements <br />Disbursements from the operating account shall be made as described in Paragraph 13 of <br />the Management Agreement. Bills will be paid and accounts will be funded pursuant to <br />the requirements of the project's Management Agreement and Loan Agreement. <br />Specifically: <br /> <br />a) A purchase order system will be utilized to document most project expenses with the <br />exception of items and services provided on a regular contractual basis (utilities, <br />trash removal, service contracts, etc.). <br /> <br />b) Purchase order copies will be matched to invoices and approved by the property <br />manager prior to payment. Payments will be processed semi-monthly. <br /> <br />c) Solari and/or Owner shall maintain the following separate accounts: <br /> <br />General Operating Account. Solari shall maintain an operating account for rent <br />collection and payment of the project's operating expenses. <br />Operating Reserve Account. Solari shall maintain the operating reserve account. <br />This account will be initially funded as required by the lenders and investors to <br />the project in the amount established in the regulatory agreements. Subsequent <br />deposits to this account will be made in amounts as specified in the annually approved <br />operating budgets. Funds may be transferred from this account only to cover actual <br />operating expenses in excess of the approved budget amount, or to compensate for <br />vacancy and bad debt losses in the approved budget amount. Prior approval must be <br />obtained before withdrawal of funds. <br />3-46