Can this be e-signed?

Yes. Electronic signatures are generally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; confirm the governing agreement does not require wet-ink or notarized originals.

When is notarization required?

Notarization is contract-specific. Some agreements demand notary acknowledgement for attestations; check the governing documents and state notary rules before assuming it is unnecessary.

What if a covenant is borderline?

Document the calculation, assumptions, and management commentary. Early disclosure reduces dispute risk and may preserve cure rights under the contract.

How long must records be kept?

Retain signed certificates and exhibits per contract and regulatory rules: IRS three-year minimum (IRC §6501(a)); HIPAA six years (45 CFR §164.530(j)) where applicable.

Who is authorized to sign?

The agreement specifies authorized signatories. Typically this is the CEO, CFO, or another officer; a corporate resolution may be required to change signing authority.

Can I correct a submitted certificate?

If errors are found, prepare a corrected certificate, mark it as an amendment or restatement, and redistribute with a clear explanation and signatures as required by the contract.

Electronic Signature
Templates
Miscellaneous
Monthly Performance Certificate

Monthly Performance Certificate

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MONTHLY PERFORMANCE CERTIFICATE

Recitals

WHEREAS, Client Name: entered into a written agreement identified by Contract Number: with Contractor Name: for the provision of services described herein.

WHEREAS, the Contract requires the submission of a Monthly Performance Certificate describing performance, metrics, and any exceptions for the certification period Month: Year: .

WHEREAS, the undersigned authorized representative (Certifier) submits this Certificate on behalf of the Contractor and certifies the accuracy of the statements and data contained herein to the best of the Certifier’s knowledge and belief.

Certification

The Certifier hereby represents and warrants that, for the Certification Period identified above, the work performed by the Contractor under the Contract:

Has been performed in material conformity with the Contract documents except as specifically noted in this Certificate.
Meets the specified performance thresholds identified in the Performance Metrics section below, except for items expressly identified as exceptions.
Has been invoiced in accordance with the Payment Terms section where applicable and all invoices submitted through the Certification Period are listed or attached.

Scope of Work

Describe scope of work performed during the certification period

Performance Metrics

Record actual results against contract performance targets. List any exceptions and corrective actions in Remarks.

Metric

Target

Achieved

Remarks

Exceptions and Corrective Actions

Identify any exceptions to performance obligations and describe corrective actions taken or proposed

Payment Terms

Payment Amount Due for this Certificate: . Payment shall be made in accordance with the Contract. Payment Schedule / Milestone:

Payment schedule description

Late payment shall accrue interest at or the maximum rate permitted by law, whichever is less. If no alternative is provided, a late fee of shall apply for past-due invoices after days' notice.

Term and Termination

Contract Start Date: . Contract End Date: .

Either party may terminate the Contract for material breach if the breaching party fails to cure the breach within days after receipt of written notice specifying the breach. Termination shall be without prejudice to remedies accrued prior to termination.

Confidentiality

All performance data, reports, and information furnished in connection with this Certificate constitute Confidential Information of the disclosing party. The receiving party shall hold such information in strict confidence, use it only to evaluate or perform obligations under the Contract, and not disclose it to third parties except as required by law or with prior written consent.

Governing Law

This Certificate and any dispute arising hereunder shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law rules.

Entire Agreement

This Certificate, together with the Contract, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral or written agreements, understandings, and representations relating to such subject matter.

Additional Certifications

The Certifier confirms the following (check all that apply):

Services performed materially conform to contract requirements

No known defects or deficiencies remaining, except as noted in this Certificate

All invoices for the certification period have been submitted

Certifier Contact Information

Certifier name and title Certifier business address Certifier telephone / email

Client Name:

By:

Date:

Contractor Name:

By:

Date:

What the Monthly Performance Certificate Is and When It Applies

A Monthly Performance Certificate is a formal report, typically prepared by a borrower, servicer, or project manager, that summarizes operational and financial metrics for a single month and certifies compliance with loan covenants, contract milestones, or service-level agreements. It usually consolidates revenue and expense summaries, covenant tests (for example debt-service coverage ratios), progress indicators, and any exceptions or waivers. Recipients use the certificate to verify performance, trigger disbursements, or monitor covenant compliance; frequency, format, and required attestations are set by the governing contract or financing documents.

Why a Monthly Performance Certificate Matters

Monthly Performance Certificates provide a standardized, auditable snapshot of performance that supports lender oversight, owner decisions, and contract compliance while reducing ambiguity about status and exceptions.

Who Typically Prepares and Reviews These Certificates

Organizations rely on Monthly Performance Certificates to align operational reporting with contractual obligations across finance and project teams.

Lenders and investors who require covenant monitoring and periodic attestation of financial tests and defaults.
Project managers or general contractors who report progress, milestones, and budget variances under construction contracts.
CFOs, controllers, and external accountants who validate figures, reconcile balances, and prepare consolidated reports.

The document’s audience determines the level of supporting detail, required signatories, and any third-party verification or notarization.

Core Sections to Include in a Professional Monthly Performance Certificate

A complete certificate organizes data so reviewers can quickly verify compliance and understand exceptions; follow a consistent order and label exhibits clearly for attachments.

Cover Page

Statement title, reporting period (month and year), borrower/issuer name, counterparty, and contact details for inquiries; reference the governing agreement.

Executive Summary

One-paragraph overview of overall status, material exceptions, and whether covenants were met during the reporting period; note any anticipated remedial actions.

Financial Schedule

Detailed month-end balance, income statement items used in covenant calculations, and reconciliations to audited or management accounts as applicable.

Covenant Calculations

Line-by-line covenant tests (ratios and thresholds), the numeric result, and a clear statement of pass/fail for each covenant metric.

Management Commentary

Narrative explaining drivers behind variances, one-time events, adjustments, and forecasts that materially affect future covenant compliance.

Attestation & Signatures

Authorized signatory block with printed name, title, signature, date, and any required notary, witness, or third-party certifier details per agreement.

Step-by-Step: Completing a Monthly Performance Certificate

Follow these steps in order to prepare, verify, and submit the certificate consistently and with a clear audit trail.

01

Assemble source data: Gather GL reports, bank statements, and supporting schedules for the reporting period.
02

Run covenant calculations: Apply contract formulas precisely and document each input and adjustment.
03

Draft commentary: Explain variances, one-time items, and any corrective measures planned or executed.
04

Sign and distribute: Obtain required signatures, notarization if needed, and send to recipients per contract.

Typical Workflow for Issuing and Reviewing the Certificate

A consistent workflow reduces processing time and preserves evidence for audits or lender reviews.

Prepare: Preparer compiles schedules and completes certificate fields.
Internal review: Controller or CFO verifies numbers and commentary.
Approval: Authorized signer attests to accuracy and compliance.
Distribution: Send signed copy and exhibits to counterparties and recordkeeper.

Configuring a Digital Workflow for Monthly Certificates

When automating, configure fields and recipients to match contractual routing and retention requirements.

Field	Configuration
Signer order	Set sequential approval order to match contract signatories
Required fields	Mark numeric lines and signatures as mandatory to prevent incomplete submissions
Attach exhibits	Require upload of supporting schedules before finalizing
Audit retention	Enable audit trail and store signed PDF for reproduction

Digital Delivery and Format Requirements

Choose a platform that supports secure e-signing, required file formats, and integration with your document repository.

File formats: PDF, DOCX accepted
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS, or stronger MFA

Ensure the chosen platform provides an audit trail with timestamps, signer attribution, and tamper-evident signed documents for long-term retention.

Security and Compliance Considerations for eSigned Certificates

Encryption: TLS 1.2/1.3; AES-256

Certifications: SOC 2 Type II; ISO 27001

Regulatory: ESIGN; UETA

HIPAA: BAA required

Audit Trail: IP, timestamp, action log

Accessibility: WCAG 2.0 AA

Common Preparation Mistakes to Avoid

Failing to reconcile numbers to source ledgers before sign-off, which causes reviewer questions and potential reissuance delays.
Omitting the calculation steps or failing to show inputs for covenant tests, which prevents quick verification by lenders or auditors.
Using inconsistent period cut-offs or including post-period transactions, triggering disputes about which month the item belongs to.
Submitting unsigned or improperly dated certificates, which can be rejected and considered noncompliant under the governing agreement.

Risks and Consequences of Incorrect or Late Certificates

Covenant default: Acceleration risk

Funding delay: Disbursement withheld

Financial restatement: Audit escalation

Legal exposure: Breach claims

Tax penalties: IRC §6721 fines

I-9 violations: 8 CFR penalties

Typical Timing and Submission Expectations

Agreements usually set the delivery window; the following are common expectations but always defer to the governing contract for exact deadlines.

Monthly delivery window:

Often due within 5–15 business days after month-end

Internal review period:

Allow 2–5 business days for controller sign-off

Counterparty review:

Expect 3–10 business days for questions or acceptance

Late submission handling:

Contracts may allow cure periods or invoke remedies

Record reproduction:

Maintain signed copies to reproduce upon request

Key Processing Milestones for Each Monthly Cycle

A reliable monthly cadence reduces errors and preserves the audit trail across preparer, reviewer, and recipient steps.

01

Data close

Finalize books and collect supporting schedules for the month

02

Preparer review

Complete certificate draft and initial reconciliation checks

03

Senior attestation

Controller/CFO approves figures and signs

04

Distribution & archive

Deliver to counterparties and store signed files

eSignature Pricing and Capabilities Relevant to Monthly Certificates

Compare basic plan pricing and common capabilities when selecting an eSignature vendor; signNow is listed first per comparison format.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Examples: How Organizations Use Monthly Performance Certificates

Real-world examples show common structures and outcomes when certificates are used for funding and compliance.

Lender Compliance Review

A regional lender required monthly certificates to monitor covenant ratios and detect early deterioration in coverage

The borrower automated schedules to reduce errors and speed reporting
Automation cut review cycles from days to hours and provided a clear audit trail for subsequent loan audits.

Construction Draw Requests

A general contractor attached monthly progress metrics and lien waiver status to each certificate

The owner used the certificate to authorize monthly draw payments
Consistent format reduced payment disputes and accelerated cash flow to subcontractors.

Frequently Asked Questions About Monthly Performance Certificates

Answers to common questions about completion, signatures, legal validity, and platform choices when producing Monthly Performance Certificates.

Need help? Contact support

Can this be e-signed?
Yes. Electronic signatures are generally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; confirm the governing agreement does not require wet-ink or notarized originals.
When is notarization required?
Notarization is contract-specific. Some agreements demand notary acknowledgement for attestations; check the governing documents and state notary rules before assuming it is unnecessary.
What if a covenant is borderline?
Document the calculation, assumptions, and management commentary. Early disclosure reduces dispute risk and may preserve cure rights under the contract.
How long must records be kept?
Retain signed certificates and exhibits per contract and regulatory rules: IRS three-year minimum (IRC §6501(a)); HIPAA six years (45 CFR §164.530(j)) where applicable.
Who is authorized to sign?
The agreement specifies authorized signatories. Typically this is the CEO, CFO, or another officer; a corporate resolution may be required to change signing authority.
Can I correct a submitted certificate?
If errors are found, prepare a corrected certificate, mark it as an amendment or restatement, and redistribute with a clear explanation and signatures as required by the contract.

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