Specifications include, but are not limited to: The primary objectives are to ensure real estate managers have charged fees, expenses, and carried interest in accordance with the terms defined in the limited partnership agreement and to provide CalSTRS Real Estate with knowledge transfer from which staff can enhance internal controls in connection with real estate funds in its portfolio. I. General a. Calculate investment management fees for real estate and present a summary report verifying that, based on limited partnership agreement provisions, each general partner billed management fees, expenses and carried interest in accordance with the specified logic outlined in section IIIa. Contractor and CalSTRS will agree on the annual period of analysis, the “relevant period”. b. It is expected that a sub-set of the total active funds in the CalSTRS’ real estate portfolio will be analyzed on a sample basis. The sub-set reviewed and reported on shall not exceed a maximum of 60 underlying funds per annum. c. Calculate and verify, based on limited partnership agreement provisions, management fees, capital contributions, expenses, carried interest and return of capital in accordance with the specified logic outlined in section IIIa. The representative sampling of funds’ management fees, expenses and carried interest shall be calculated according to the logic outlined in section IIIa, and verified against CalSTRS’ records, including but not limited to, capital call and distribution notices, capital account statements and fund financial statements. II. Procedures a. Validate and reconcile relevant period calls for capital including management fees and expenses to ensure compliance with the terms and conditions of the limited partnership agreement. For the avoidance of doubt, this does not include a review of concentration, geographical and other investment restrictions. b. Validate and reconcile relevant period partnership distributions and profit allocations (carried interest) in accordance with the logic outlined in section III a. c. Record and maintain relevant period data in an accounting and reporting system. Provide a secure mechanism for review and validation of data by CalSTRS staff. d. Possess the ability to communicate with general partners, on an as needed basis, and receive capital call notices, distribution notices, and other data from the general partner in an electronic format, if available, for upload to Contractor’s database system. e. Reconcile cash flows to quarterly reports from the general partners, including proper ownership percentage calculations. Take necessary follow-up actions to endeavor to resolve discrepancies to ensure accurate reporting.