Management and governance is the responsibility of NCREIF's full time staff and its Board of Directors.
NCREIF's information collection, processing and dissemination is overseen and supported by NCREIF's seven working committees: Accounting Database & Indices Information Management Performance Measurement Portfolio Management Research Valuation
Each committee is made up of representatives of the broader NCREIF constituency. It is at the committee level where new NCREIF initiatives are first conceived; where completed initiatives are converted to information products; where outdated initiatives are removed from the docket. Each committee has a mission statement. When the individual committee mission statements are combined, they add up to the total mission of NCREIF. Each standing committee has responsibility for overseeing the execution of a segment of NCREIF's overall mission. Each of the Committee's mission statements can be found on the NCREIF web site. A link will also be provided.
Committees play an active and critically important role in NCREIF governance. Committees meet at least three times a year. They report to the Board of Directors on the progress of open business issues and make recommendations on completed business in need of Board approval. Any committee recommendation to the Board follows a lengthy period of inquiry, open discussion and debate. While the Board is the final decision maker, it is at the individual NCREIF committee level where all of the issues are taken under advisement, addressed and brought to resolution. It is the committee which makes the final decision as to when a new initiative or old business revisited requires Board action.
The activities and affairs of NCREIF are managed by its Board of Directors. The Board operates within the rules, regulations and limitations as set forth in NCREIF's Articles of Incorporation and Bylaws.
The number of directors is nine. They serve four year staggered terms. Directors are elected by the membership. A subcommittee of the Board and key staff members serves as the Board's Nominating Committee. Five Board seats are set aside for Data Contributing Members - three to investment advisors/managers and two to plan sponsors. The remaining four Board seats are occupied by representatives of Professional or Academic members. Board members are drawn from the ranks of CEOs and other high-level decision makers of NCREIF member organizations.
The Board meets at least three times a year. Committee Chairs report to the Board on the status of each committee's ongoing projects whenever the Board convenes.
The Board has delegated the day-to-day management of NCREIF's affairs to a full-time association staff. The staff conducts the business of NCREIF in accordance with the Board's direction. Day to day operations is managed by a full-time staff of five. NCREIF also retains, on a project by project basis, outside consultants to manage certain initiatives whenever the situation warrants. Outsourcing to qualified third parties is an integral part of operations.
The internal staff is responsible for data collection and processing, production of NCREIF statistical products, website development and management, membership management, conference planning, education programs, annual business plan and manager of REIS revisions and Standing Committee projects, initiatives and responsibilities.
Since its inception, NCREIF has collaborated to formulate policies and procedures for standardizing the reporting of performance results for real estate investments acquired by tax-exempt institutional investors and owned in a fiduciary setting.
The Real Estate Information Standards (REIS) represents an evolving body of work that presents guidance and recommendations on behalf of the tax-exempt institutional real estate investment industry for calculating, presenting and reporting real estate investment returns. It is an ongoing effort to identify and codify a single set of desired industry practices and to improve standardization of valuation procedures, financial accounting and reporting of performance return information. The overriding objective is to promote disclosure of reliable information, which is relevant to investment decision making that includes adequate descriptions of policies and practices to facilitate analysis.
REIS seek to govern tax-exempt institutional investment in U.S. real estate only. REIS incorporates by reference, governance from other standard setting bodies where applicable to institutional investment in private equity real estate. Most importantly, REIS provides guidance in specific areas of valuation, market value accounting and performance measurement primarily because existing standards do not adequately address these particular issues, which are extremely important to tax-exempt institutional investors since they report to their beneficiaries using market value based financial reporting.
REIS specifically addresses Property Valuation Standards, Market Value Accounting and Reporting Standards, and Performance Measurement Standards. REIS is not authoritative. It provides guidance and recommendations based on current best practices and accounting standards.
NCREIF strongly encourages its members to comply with REIS but does not presently require third party verification of compliance from its members.
The NCREIF staff receives and reviews all requests for changes/updates to the REIS and the requests are given to the NCREIF Standing Committees for review and vetting. If the committees vote to recommend a change/update, it is brought to the REIS Council for review/vetting. If the REIS Council votes to approve the change/update, it is brought to the NCREIF Board of Directors for approval. Once the NCREIF Board approves a change, it is brought to the Boards of PREA and NAREIM for their approval as well.
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