5d • General discussion
🎯 NAV Pro Tip #7: The Expense Accrual & Fee Drift Check
Before you sign off the NAV, take 3 minutes to sanity-check expenses and fee accruals:
✅ Do management fees and admin fees look reasonable?– Fee rate matches the latest agreement / share class?– AUM basis correct (gross vs net assets, exclusions applied)?– No sudden jumps or drops vs prior NAV days?
✅ Are expense accruals behaving normally?– Known monthly/quarterly accruals trending as expected?– Any “stuck” accruals rolling forward and never reversing?– Any unusually large true-ups posted without explanation?
✅ Are payables and invoices clearing on time?– Old payables still sitting open with no settlement?–
Any expenses posted twice (invoice + accrual)?– Any suspense/temporary accounts used to park expenses?
Why this matters:
Fees and expenses rarely cause dramatic breaks day-to-day — which is exactly why errors here survive. Accrual drift compounds quietly and eventually becomes a client escalation, audit finding, or a painful true-up.
Pro move:
Treat fee accruals like a trend control: if the pattern changes, investigate before it becomes “normal.”
Building better NAV production habits, one day at a time.
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🎯 NAV Pro Tip #7: The Expense Accrual & Fee Drift Check
