ILPA Fee Reporting - Standardized Fee & Expense Disclosure
Preparing the ILPA (Institutional Limited Partners Association) standardized fee and expense reporting template disclosure, reconciling all fees from the fund to the GP management company and portfolio companies.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Management Fees (Gross) - Fund Level | Expense Disclosure | 2,000,000.00 | - |
| Management Fee Offsets (Portfolio Company Fees) | Offset Disclosure | - | 600,000.00 |
| Management Fees (Net) - LP Effective Cost | Net Expense | 1,400,000.00 | - |
| Fund Expenses (Partnership-Level) | Expense Disclosure | 250,000.00 | - |
| Portfolio Company Monitoring Fees (GP-Received) | Income Disclosure (GP Level) | - | 750,000.00 |
💡 Accountant's Note
The ILPA Fee Reporting Template (adopted post-2016) requires GPs to disclose all fees received from portfolio companies, management fees charged to the fund, offsets applied, and any fees retained by the GP that are not offset. This provides LPs with full transparency on the total economic cost of the fund relationship and any fee income the GP earns from portfolio companies.
Practitioner & Systems Framework
💻 ERP Architecture
The ILPA template requires data from both the fund's books (management fees, fund expenses) and the GP management company's books (portfolio company monitoring fees received). Establish a data aggregation process to compile all required data fields quarterly.
⚠️ Audit Flags
While ILPA reporting is not subject to a separate audit, fund auditors may review the template for consistency with the audited financial statements. SEC examiners have used ILPA template data to identify fee disclosure failures during examinations.
📄 Required Documentation
Completed ILPA Fee Reporting Template, GP certification of portfolio company fees received, reconciliation of ILPA template to audited financial statements, LPA fee and offset provisions.
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