Utility Gross Up & Amortized Capital

Audit Findings

• Structure of Lease did not allow for gross up of utility expenses;
• Amortization of Lease-prohibited capital expenditures incorrectly charged to operating costs;
• Landlord’s corporate overhead costs allocated to building’s operating costs.

Client Gains - $175K Immediate Savings / $530K Total

• $105,000 refund from elimination of gross up on utility expenses alone;
• $70,000 refund paid to Client to correct operating expense overcharges;
• Correction of Landlord’s method of billing utility expenses and revising its capital amortization charges save Client at least $355,000 over remaining term of Lease.