Policies & Procedures

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KOLTER HOMES Policies and Procedures

Policy Number: Policy Name:

5.5.2

Issued Date: Revised Date:

February 24, 2016

House Book Review

Authorized By:

___________________________________

Date: _______________________

Doug Bruk, Executive VP Kolter Homes

Authorized By:

___________________________________

Date: _______________________

Rick Covell, President, Kolter Homes

Policy:

This policy will ensure that all regions are utilizing the same tools to analyze housebooks in preparation for monthly finance meetings. Reference: Network Diagram & Swim Lane Diagram M:\Operations\Purchasing\Procedures\Purchasing Policy Manual\Current

Responsibility:

The Purchasing Department is responsible for creating, maintaining, and reviewing lot anchor estimates in Newstar, which drives housebook reporting. The Purchasing Agents or Managers will review housebooks for homes that have closed on a monthly basis. This review will include explanations for variances and provide Purchasing Coordinators with direction so necessary revisions can be completed.

Procedure:

Directors of Purchasing:

- Run the Closing Report on the first business day of every month (Location: N:\informXL\Purchasing and Operations\Master Analyzers\Purchasing) - Assign specific lots for the Purchasing Agents or Managers to review - Review with assigned Project Director once all steps below have been completed during days 11-14 - Final of exceptions of $2,000 per lot total review with VP of Purchasing during days 14-15 - Final changes for housebooks must be completed no later than the 15 th of each month - Director will coordinate with the assigned Financial Analyst to provide a summery description for cost changes. This summary must be included in the monthly Finance meeting packet - Any cost change must be logged into the Cost Change Form (N:\Operations\Purchasing\Bid Documents & Lineups\Cost Tracking) - Run the Housebooks for Homes Closed Analyzer (Location: N:\informXL\Purchasing and Operations\Master Analyzers\Purchasing) - Paste data into a blank Excel spreadsheet. Save spreadsheet in Finance Folder on Common Drive (Location: M:\Operations\Purchasing\Finance Meetings) - Add detailed explanation and action columns to spreadsheet saved in Finance Folder - Review all budget line items that are both below and over original budget - Provide detailed explanations for the discrepancies using exceptions $200 per line item,$2,000 per lot total - Provide direction in the action column if action (void PO, approve PO for payment, complete lot anchor estimate revision, etc.) is required during days 2-8 - Work with appropriate Purchasing Coordinator to ensure that action items are completed during days 6-12

Purchasing Agents:

Purchasing Coordinators:

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