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Base Year Corrections Yield $208,000.

Base Year Corrections Yield $208,000

Lease Auditing
Client: Fortune 500 commercial operator of fitness centers

Audit Discovery:
The lease provided that real estate taxes and insurance be billed over the base year. The landlord correctly calculated the tenant’s share of taxes and insurance until our client expanded its premises by building a second story above the existing space. Following that, the landlord abandoned the previously-established base year calculation. MBG Consulting performed a forensic review of all pertinent files and reconstructed what the accurate calculations should have been. Our client had been overcharged approximately $13,000 a year for 16 years. A change in ownership had contributed to the error as well.

Resolution:
MBG Consulting was successful in proving that there were no formal documents justifying the lack of base year calculations and recovered for the entire overbilled amount for our client.


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