Audit Case Study Synopses™ (936)

Project
Toronto, Ontario

Industry
Banking

Savings (total)
$1,259,107
Savings (square foot)
$5.76

Audit Accuracy™
90.89%
Audit Timeline™
116 days
Audit Timespan™
94 days
Audit Return™
$5.76

Campaign Commencement
Q1 1999
Representation Type
Exclusive Service Provider
Campaign Scope
Global Portfolio
Audit Cycles
Annual-Recurring

Upon the commencement of the audit, our team found that the landlord was renovating a block of space that had recently been vacated by a major user in order to ready it to be marketed to the public. The landlord had also replaced three (3) of the building HVAC units and passed the entire expense through in one (1) operating year, rather than amortizing the charges over the useful life of the improvements. This proved to be a pivotal adjustment as our client was moving out of the building in less than two (2) years and would avoid the balance of the amortization liability. We also found the landlord was including imputed rents and all utility charges associated with the management, janitorial and security offices located in the building even though such charges were not allowable per the lease, and were not present within the base year. We discovered and adjusted various expenses of landlord’s general corporate overhead not wholly attributable to the operation and management of the building.

Vacant space expenses
Capital expenditures
Imputed corporate office rents and utilities
Corporate expense allocations

 
 

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