CO-6, Auditing & Identifying Overcharges in Office Operating Expenses
September 17 @ 11:00 am - 12:30 pm
This basic class steps through the basics of reviewing and auditing office operating expenses for overcharges. It reviews the types of expenses unique to office leases. This presentation will walk the class through the actual method of tying and verifying invoices to the general ledger. It will address how to audit the” base year” and “gross-up” clause and how it can both help and hurt a tenant. This will touch upon the Loss Factor, which is the difference between usable square footage and rentable square footage a landlord charges to the tenant in an office building. Lastly, this class will identify several areas of possible overcharges that could appear in a landlord’s true up statement (reconciliation) and why tenants must be aware of them.