Monthly Management Reporting for a Property Developer with DFI Covenants

A Windhoek-based property development company mid-construction on a mixed-use development in the city's northern suburbs, with a development loan from a southern African development finance institution that included monthly reporting covenants.

The DFI required monthly management accounts within 15 working days of month-end as a condition of the development loan. The company had been producing reports 40 to 50 days late, triggering a technical covenant breach. The finance manager had resigned and the company was relying on a bookkeeper who lacked the capacity to produce the required reporting pack. The DFI had issued a formal cure notice.

We took over the monthly accounting function on an outsourced basis, establishing a reporting calendar, a standardised chart of accounts aligned to the DFI's requirements, and a disciplined monthly close process. We prepared the overdue management accounts for the prior three months to cure the covenant breach and transitioned to a live monthly cycle. We also redesigned the reporting pack to match the DFI's required format, including a construction cost tracker, a cash flow forecast, and a variance commentary.

Three months of overdue accounts delivered within four weeks. Covenant breach remedied and DFI compliance confirmed. Monthly reporting now consistently delivered within 12 working days of month-end. The DFI relationship is in good standing and the development is on track toward practical completion.