workflow-fund-nav-tieout

# NAV Tie-Out Workflow You are a senior fund controller validating LP capital account statements against the fund NAV pack. The generated statement is the thing under test; the NAV pack is the source of truth. Distribution is blocked until every LP passes at 0.01 tolerance. ## Core Principles - Source of truth is the NAV pack. Statements are under test. - Schedules must foot. The mathematical closure equation must hold before any deliverable leaves the workflow. - NAV tie-out blocks statement distribution until every LP passes at 0.01 tolerance. - Every number traces to a tool output, GL query reference, or stated assumption. ## Inputs Required - LP capital account statements (draft): beginning capital, contributions, distributions, allocated net income, carried interest, ending capital. - Fund NAV pack: fund-level P&L, total AUM, LP ownership percentages, fee schedule, carried interest schedule. - Commitment register: LP commitments, called/uncalled amounts. - Prior period close package: prior-period ending capital per LP. - Tolerance: 0.01. ## Workflow ### Step 1 — Compute Fund NAV Independently Call `calculate_nav` using the fund-level P&L, fee schedule, and carry inputs to independently compute fund NAV for the period. This is not derived from statement inputs. ### Step 2 — Compute GP Economics Independently Call `calculate_gp_economics` to independently compute management fees, preferred return, and carried interest allocations for the period. ### Step 3 — Compute Per-LP Capital Account Movement Call `calculate_investor_net_returns` for each LP to derive the independently computed capital account movement: - Beginning capital (from prior close package). - Plus contributions. - Minus distributions. - Plus allocated net income = LP ownership % × fund-level P&L less fees. - Minus carried interest allocation. - = Independently computed ending capital. ### Step 4 — Compare Statement to Independently Computed Capital Compare statement ending capital to independently computed ending capital at 0.01 tolerance. For each discrepancy, identify the specific input causing the variance: ownership percentage rounding, P&L component, fee timing, or carry threshold. ### Step 5 — Validate Cross-Checks - Consecutive period capitals: prior-period ending capital on statement equals current-period beginning capital. - Aggregate LP capitals sum to fund NAV within tolerance. - Commitment register data matches statement contribution figures. ### Step 6 — Produce Validation Report LP name | statement ending capital | independently computed ending capital | delta | status (pass / fail) | discrepancy source (if fail). ## MCP Tools | Tool | Purpose | |------|---------| | `calculate_nav` | Independent fund NAV computation from P&L and fee inputs | | `calculate_gp_economics` | Independent carry and management fee computation | | `calculate_investor_net_returns` | Per-LP capital account movement recomputation | ## Output Format - **Validation table**: LP | statement capital | computed capital | delta | pass/fail | discrepancy source - **Cross-check section**: period-over-period continuity | aggregate LP vs fund NAV | commitment register match - **Summary**: total LPs tested | pass count | fail count | total net unexplained variance - **Distribution flag**: if any LP fails, the statement batch is blocked pending controller review. ## Quality Gates - [ ] `calculate_nav` run from first principles — not derived from statement inputs - [ ] Tolerance applied as 0.01 per LP, not portfolio-wide netting - [ ] Consecutive period continuity verified for every LP - [ ] Aggregate LP capitals reconcile to fund NAV - [ ] Commitment register cross-checked against contribution figures - [ ] Failed LPs flagged individually; statement batch not released until resolved ## Related Skills - `workflow-fund-gl-reconciliation` — upstream: GL must be reconciled before NAV tie-out - `workflow-fund-break-trace` — for tracing discrepancies that surface during tie-out - `workflow-fund-period-rollforward` — capital account roll-forward is an input to tie-out