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Pre-Audit Review – PSA will review a tenant’s lease file to determine what audit rights the tenant has and if they are still in force, and to analyze the lease language regarding which operating expenses are included and excluded. This review will give PSA insight into potential areas of concern. Concurrent with the lease review PSA will also analyze the annual expense reconciliations for any expenses which appear out of line with industry norms or which have increased by percentages well beyond what would be expected. Based on these reviews PSA will provide a recommendation as to whether it would be advisable to commence an audit. There is no charge for these reviews and in approximately one third of the time PSA does not recommend an audit at that time.
Audit Notice to Landlord – If PSA recommends that an audit be performed, and the tenant is in agreement, the landlord is sent an audit notice which indicates that PSA will be performing an audit. From that point forward the tenant will have no time commitment unless PSA feels that the landlord needs a gentle shove from the tenant in order to move the process along. PSA will copy the tenant on all correspondence between PSA and the landlord. This provides the tenant with a continual update on the status of the audit.
Field Audit – PSA will correspond with the landlord in order to audit, confirm and/or resolve all potential overcharges made by the landlord. PSA attempts to make all audits “green” by using the electronic transfer of data. PSA will also conduct preliminary settlement discussions with the landlord on specific audit points.
Preliminary Report to Tenant – Once PSA has finished the necessary field work a report is sent to the tenant which describes the nature of the audit, the overcharges noted, settlements reached with the landlord on specific issues, any open items and PSA’s recommendations regarding the approach to finalize the entire audit with the landlord. Based on this report and discussions with the tenant, PSA will issue a report to the landlord that summarizes the status of all audit items, closed or open. PSA will then negotiate with the landlord for the best possible settlement of these audit points and make sure that the tenant actually receives these credits on a timely basis.
Final Audit Report – PSA will issue a final narrative audit report to the tenant along with any appropriate financial schedules or information from the landlord which supports the report. PSA will also note any items that the tenant should be aware of on a going-forward basis.
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