Annual report pursuant to Section 13 and 15(d)

Funds Held for Others

v3.6.0.2
Funds Held for Others
12 Months Ended
Dec. 31, 2016
Funds Held for Others [Abstract]  
Funds Held for Others
Funds Held for Others
In connection with our payment processing services, we collect tenant funds and subsequently remit these tenant funds to our clients after varying holding periods. These funds are settled through our Originating Depository Financial Institution (“ODFI”) custodial accounts at major banks. The ODFI custodial account balance was $76.4 million and $83.0 million, and the related client deposit liability was $76.4 million and $83.0 million at December 31, 2016 and 2015, respectively. The ODFI custodial account balances are included in our Consolidated Balance Sheets as restricted cash. The corresponding liability for these custodial balances is reflected as client deposits. In connection with the timing of our payment processing services, we are exposed to credit risk in the event of nonperformance by other parties, such as returned checks. We utilize credit analysis and other controls to manage the credit risk exposure. We have not experienced any material credit losses to date. Any expected losses are included in our allowance for doubtful accounts.
The ODFI custodial accounts are in the name of RealPage Payment Processing Services, Inc. (“RPPS”), a bankruptcy-remote, special-purpose entity, that is a wholly owned subsidiary of the Company. We provide processing and administrative services to RPPS through a services agreement. The obligations of RPPS under the ODFI custodial account agreements are guaranteed by us.
In connection with our renter insurance products, we collect premiums from policy holders and subsequently remit the premium, net of our commission, to the underwriter. We maintain separate accounts for these transactions. We had $1.5 million and $1.3 million in restricted cash related to these renter insurance products at December 31, 2016 and 2015, respectively. Related to these renter insurance products, we had $1.5 million and $1.3 million in client deposits at December 31, 2016 and 2015, respectively. Additionally, we had $5.8 million and $1.2 million in restricted cash and $5.7 million and $1.1 million in client deposits related to our utility management solutions at December 31, 2016 and 2015, respectively.