Task 4 - Audit Landlord Billings

This task involves reviewing actual invoices, insurance policies, and tax information to verify the allowability of pass throughs and consists of the following subtasks:

4.1 Operating Expense Invoices: Review most recently reconciled general ledger, appropriate journals, and actual invoices to locate prohibited pass throughs such as capital expenses, tenant improvements, etc. Where systemic errors or other concerns arise, review invoices of prior years. Review base year if applicable.

4.2 Property Taxes: Review Assessor's Parcel Maps, tax bills, special assessment breakdowns, and historical county records to determine accuracy of tax pass through as well as tax appeals that may have affected the property.

4.3 Insurance: Review insurance breakdowns to assure that the policies are being properly apportioned. Assure that the property is properly insured, but not over-insured pursuant to the lease.

4.4 Other Additional Rent: Review billings that are not addressed on the operating expense reconciliations such as after-hours HVAC, excess utilities usage or parking charges. Assure that pass throughs are properly billed based on the lease provisions, and properly credited to the proper accounts to prevent these reimbursements from becoming a profit center for the landlord.

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