Q: How many offices does RRG have?
A: RRG has ten (10) domestic and two (2) international offices. RRG’s offices are as follows: Washington, DC, Dallas, New York, Miami, Chicago, Columbus, Atlanta, San Francisco, Los Angeles, Woodland Hills, Toronto, and London.
Q: What is RRG’s practice area?
A: RRG audits both domestically and internationally.
Q: In how many cities has RRG audited?
A: RRG has audited in over 4,000 cities worldwide.
Q: In what cities has RRG audited?
A: A complete list of cities in which RRG has audited is provided in the Audit Coverage section.
Q: What is the value of RRG’s services?
A: RRG’s audit system is comprehensive and allows clients to recover overcharged funds, increase portfolio transparency, heighten internal cost controls, establish operating benchmarks and compile data from which standards can be developed.
Q: What is RRG’s primary business line?
A: Since inception, lease auditing services have remained RRG’s primary business line. We place a premium on innovation and process improvement, and have developed ancillary cost containment services directly related to the lease audit process. RRG’s due diligence, project management, benchmarking, management consulting and training services provide additional process leverage and extend the value and benefit of its lease auditing system.
Q: What is RRG’s audit model?
A: RRG’s business model was created to audit lease portfolios. RRG’s unique approach recovers overcharges, normalizes operating expenses, identifies accurate expense baselines, prevents errors from accruing and establishes standards for benchmarking subsequent years.
Q: What type of real estate portfolios does RRG audit?
A: RRG successfully audits lease portfolios comprised of office, retail, manufacturing, distribution and warehouse space.
Q: What is RRG’s client partner base?
A: RRG’s model is designed to focus on auditing lease portfolios for Fortune 1000 and Global 1000 companies. RRG’s client partners are a diverse group of cost conscious organizations dedicated to decreasing the expenses attributable to their real estate portfolios. Our client base spans industries that include, but are not limited to consulting, aerospace, pharmaceuticals, insurance, telecommunications, retail, healthcare, information technology, finance, software, imaging, education, energy, banking, automotive, computers, publishing, medical technology, law, entertainment, electronics and financial services.
Q: Does RRG customize its lease audit delivery platform to address individual client needs?
A: RRG’s solutions maximize recovery opportunity, require limited time investment and allow the client to remain in control of campaign direction. Our audit programs are customized and developed around a given client’s lease audit strategy, internal organizational structure, reporting requirements, update systems, lease administration model, personnel, desired level of work product and overall corporate real estate goals.
Q: How long does it take RRG to commence an audit campaign?
A: RRG can transition and commence a portfolio audit campaign immediately. Our proprietary systems and processes allow us to clearly define requirements, fashion “client-centric” strategies, and transition lease audit campaigns efficiently. RRG leverages its audit coverage and service delivery method to create economies of scale, accelerate transition times, shorten lease audit cycles and reduce the cost of client projects.
Q: Does RRG have any capacity issues or internal business constraints?
A: RRG does not suffer from any capacity issues or internal business constraints. We have all the necessary professional staff and resources in-house, and do not require any additional capacity to commence a client relationship and successfully service the account. RRG’s system platforms from the audit experience of its talented professionals and utilizes technology to deliver its services in the most time efficient and effective manner possible.
Q: Does RRG subcontract any of its lease audit work?
A: RRG prides itself on performing all of its own services with permanent personnel and without the assistance or support of subcontractors or third parties. This control mechanism ensures process efficiency and a consistent level of work product adhering to RRG’s strict auditing standards and protocols.
Q: Has or does RRG currently represent property managers or landlords?
A: RRG only provides lease auditing services for tenants and has never represented property managers or landlords in any capacity. This standard has allowed RRG to avoid costly conflicts of interest that delay audits, fragment audit strategies and decrease overall project effectiveness.
Q: How does RRG ensure that landlord/tenant relationships will not be adversely affected by an audit campaign?
A: RRG considers the landlord/tenant relationship of paramount importance when undertaking an audit campaign. RRG has never utilized any form of litigation to settle outstanding lease audit claims and believes this is directly related to the amount of time, effort and expertise invested by RRG professionals in every lease audit. Each audit concern is grounded, supported and thoroughly substantiated by the lease, Generally Accepted Accounting Principles (“GAAP”), real estate/marketplace benchmarks and legal precedent before audit reports are prepared and negotiations commenced.
Q: How does RRG ensure consistent service levels?
A: RRG has built its reputation upon its quality standards. Our business practices are built upon accountability, service quality and ownership of work to ensure consistent service levels. Throughout each engagement, RRG’s numerous operational Key Performance Indicators (“KPIs”) are tracked to guide and gauge organizational productivity. We monitor and assess these metrics internally and externally to measure performance efficiency. Furthermore, proprietary technology is utilized to provide project management oversight, heighten program controls and ensure quality standard compliance. RRG leverages its web-based technology tool, the RRG Portal™, and its operation-specific database system Recapture™ to support every aspect of its service delivery. We believe our superior quality levels are tied to our customized processes, clear action plans and proven internal controls.
Q: Does RRG use technology to increase audit campaign productivity?
A: RRG utilizes technology to increase productivity. RRG’s proprietary, operation-specific database system Recapture™ and the RRG Portal™ support every aspect of our service delivery and provide the following primary value to our client partners: process timeline compression, accelerated recovery cycles, process flow mapping, project management oversight, effective communication structures, dynamic reporting and streamlined closures.
Q: What compensation options are available to a potential client?
A: RRG is comfortable working with a variety of compensation arrangements designed to meet the needs of our client partners. Compensation options include performance based, retainer against performance based, fixed-hourly, fixed-annual and hybrid.
Q: What is the most important factor contributing to audit campaign success?
A: RRG requires the support/”buy in” of each client partner team (finance, audit, administration, transactions and strategic partners) during the campaign. Successful campaigns are supported and have aligned objectives that have been detailed to all team members at the outset of the audit program. This awareness formulates the support foundation that is required for a sustainable program.
Q: How does RRG analyze a real estate portfolio and develop an audit campaign strategy?
A: Effective strategy is the key to maximizing audit campaign returns. RRG focuses on the overall exposure value of each portfolio location rather than just size/cost thresholds or arbitrary guidelines. RRG uses its proprietary systems to conduct “deep dive” analyses on a given portfolio to detail complexities, capture core lease elements, determine exposure values and support audit viability. Our systems leverage RRG’s vast experience by cross referencing the subject portfolio against hundreds of thousands of recovery data points contained in our historical audit databases. RRG’s system will draw primary, secondary and tertiary data correlations and generate a refined, data-driven report cataloging the portfolio recovery opportunity.
Q: What information does RRG need from the client to commence an audit campaign?
A: RRG’s system for gathering preliminary information from the client is designed to limit client resource investment and accelerate campaign transition timelines. We collect information to document both the lease and financial history at each target location. The information collected from the client will include, but not be limited to the following: leases, lease amendments, letter agreements, correspondence (letters and notices from/to property managers/landlords) and historical financial information.
Q: What is RRG’s confidentiality policy?
A: All confidential information will be protected throughout each stage of the audit campaign. In any audit campaign undertaken, RRG provides three (3) levels of protection. First, RRG will comply with any and all confidentiality/non-disclosure provisions within a given client’s audit agreement. Secondly, each RRG employee is bound by confidentiality within his/her employment agreement. Lastly, upon client request, RRG would have each employee assigned to the account execute a separate, individual, non-disclosure agreement providing additional protections.
Q: How far back does RRG attempt to audit for its clients?
A: In order to maximize recovery opportunity, RRG extends the scope of the review to encompass as many operating years as possible. During the initial year of the campaign, RRG will attempt to audit as far back as the commencement year of the lease. In many cases, this audit scope is permitted. In some instances, lease language prohibits an extensive, multi-year review. In other instances, the language is silent, and the respective state's statute of limitations is used to govern the number of years under audit.
Q: How long does an individual lease audit generally take?
A: On average, a typical lease audit will last between 90 days to 120 days from initial file review to closure. However, there are audits that close within 30 days and those that require significantly more time to attain resolution.
Q: What factors affect an audit timeline?
A: The progress of an audit is directly related to the audit right status (currently active or elapsed), reconciliation statement status (already received or not yet prepared) and/or a respective landlord’s ability to provide the requested information and/or to schedule fieldwork visits (immediately available or delayed). Assuming an audit window has not elapsed, the rate determining step in any audit is the landlord's ability to provide the necessary support documentation. Audit closure cycles closely correlate to this event.
Q: What is generally reviewed by RRG as part of the lease audit process?
A: RRG reviews and analyzes all charges incurred to ensure compliance with the respective lease provisions, Generally Accepted Accounting Principles (“GAAP”), real estate benchmarks, marketplace standards, legal precedent and the intent of the parties.
Q: Where does RRG perform lease audit fieldwork?
A: The lease audit fieldwork is either performed at the subject property, the property manager’s office or that of the landlord.
Q: Where does RRG find general recovery opportunity?
A: RRG believes recovery opportunity in any audit campaign includes, but is not limited to errors/non-compliance in the following areas: operating expenses, real estate tax pass-throughs, proportionate share computations, base year calculations, gross-up calculations, cap calculations, rental streams, CPI/base rental escalations (when applicable), capital improvements/expenditures, utility pass-throughs, electricity usage, after-hours utilities, management fee calculations, HVAC, ADA compliance, payroll and insurance.
Q: Who is responsible for the audit recovery negotiations?
A: RRG handles the audit recovery negotiations. Due to the dynamic nature of each audit, the negotiation approach is dictated by factors such as recovery type, recovery amount, number of years covered, property manager, landlord, lease support, audit rights and/or other timing mechanisms that may apply.
Q: Does RRG guarantee audit savings?
A: Although every audit campaign produces substantial savings, RRG does not guarantee specific savings amounts for any audit campaign. RRG cautions against using lease audit recoveries for budgeting purposes as there are a myriad of variables affecting audit outcomes and the timing of refund collection.