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Transactions with General Partner and its Affiliates
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
Transactions with General Partner and its Affiliates

6. TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES:

 

Pursuant to the terms of the Permanent Manager Agreement (“PMA”) executed in 1993 and renewed for an additional two year term as of January 1, 2015, the General Partner receives a base fee (the “Base Fee”) for managing the Partnership equal to four percent of gross receipts, subject initially to a minimum annual Base Fee. The PMA also provides that the Partnership is responsible for reimbursement of the General Partner for office rent and related office overhead (“Expenses”) up to an initial annual maximum of $13,250. Both the Base Fee and Expense reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2016, the minimum annual Base Fee and the maximum Expense reimbursement increased by 0.12% from the prior year, which represents the allowable annual Consumer Price Index adjustment per the PMA. Therefore, as of March 1, 2016, the minimum annual Base Fee paid by the Partnership was raised to $267,300 and the maximum annual Expense reimbursement was increased to $21,564.

 

For purposes of computing the four percent overall fee paid to the General Partner, gross receipts include amounts recovered in connection with the misappropriation of assets by the former general partners and their affiliates. Through the quarter ended March 31, 2016, in total the General Partner had received fees from the Partnership totaling $59,729 on the amounts recovered. The fee received from the Partnership on the amounts recovered reduces the minimum monthly Base Fee by that same amount.

 

Amounts paid and/or accrued to the General Partner and its affiliates for the three month periods ended March 31, 2016 and 2015 are as follows:

 

    Three Month Period ended     Three Month Period ended  
     March 31, 2016      March 31, 2015  
    (Unaudited)     (Unaudited)  
General Partner                
Management fees   $ 66,771     $ 66,034  
Overhead allowance     5,387       5,327  
Other outsourced administrative fees     0       488  
Reimbursement for out-of-pocket expenses     2,500       2,500  
Cash distribution due to partner     120       26  
    $ 74,778     $ 74,375  

 

At March 31, 2016 and December 31, 2015, $1,536 and $1,416, respectively, was payable to the General Partner.

 

As of March 31, 2016 and December 31, 2015, TPG Finance Corp. owned 200 limited partnership interests of the Partnership. The President of the General Partner, Bruce A. Provo, is also the President of TPG Finance Corp., but he is not a shareholder of TPG Finance Corp.

 

As of March 31, 2016, the General Partner did not own any limited partnership interests in the Partnership. The following table identifies the beneficial ownership of Mr. Provo, the executive officer and director of the General Partner, with the General Partner controlling the affairs of the Partnership. Mr. Provo is the only person performing the functions of an executive officer of the Partnership that beneficially owns any limited partnership interests:

 

Title of Class   Name of
Beneficial Owner(1)
  Amount and Nature of Beneficial Ownership     Percentage of Class Outstanding(3)  
Limited Partnership Interest   Bruce A. Provo     200 (2)     0.43 %
                     

 

  

  (1) A beneficial owner of a security includes a person who, directly or indirectly, has or shares voting or investment power with respect to such security. Voting power is the power to vote or direct the voting of the security and investment power is the power to dispose or direct the disposition of the security.
     
  (2) Bruce A. Provo is deemed to have beneficial ownership of all of TPG Finance Corp.’s limited partnership interests in the Partnership due to his control as President of TPG Finance Corp.
     
  (3) Based on 46,280.3 limited partnership interests outstanding as of March 31, 2016.