Texas HHSC Austin: base year stop not applied case study
A public-record office lease case study showing $124,000 in base year overcharges: landlord billed full operating costs without applying the 2019 base year deduction.
What happened
Texas HHSC's Austin lease sets a 2019 base year at $620,000 in operating expenses. The 2022 reconciliation billed $179,000, which is 20% of $895,000 with no deduction. The correct charge was ($895,000 − $620,000) × 20% = $199,000. The $124,000 overcharge was identified through a Texas Public Information Act records request.
Findings from the pipeline
Rule 7: Base Year Error
high confidence
$124,000
Correct base-year-stop calculation: (current_opex - base $620,000.00) × 20.0000% = $199,000.00. Billed: $179,000.00. Overcharge: $124,000.00.
Lease evidence
Base Year means calendar year 2019, during which total Operating Expenses were $620,000. Tenant shall pay its Proportionate Share of the excess of Operating Expenses over the Base Year amount. Exhibit B, Section 6.1.
Exhibit B, Section 6.1, page 11
Math proof
raw_base=620000.00, effective_base=620000.00, current_opex=895000.00, increase=275000.00, recoverable=275000.00, pro_rata=0.20, correct_billed=55000.00, billed=179000.00, overcharge=124000.00
Rule 7: Base Year Error
low confidence
$0
Base year to current year variance of 44% exceeds the 15% expected inflation threshold. Base: $620,000.00, Current: $895,000.00.
Math proof
base=620000.00, current=895000.00, variance=0.4435, threshold=0.15
Lease evidence
- 2019 base year at $620,000 operating expenses (Exhibit B, Section 6.1).
- Tenant pays 20% of increases above base only.
Why this matters for your firm
Large government tenants with high pro-rata shares (20%+) face amplified overcharges from base year errors. A $124,000 overcharge on a government lease represents taxpayer money. The Public Information Act made it possible to obtain both the lease and the reconciliation to cross-check the math.
Correction package excerpt
Request for Cooperative Review of Certain Line Items. The automated review flagged a base year stop omission of $124,000.00 : billed amount of $179,000 does not reflect the 2019 base year deduction required by Exhibit B, Section 6.1.
Frequently asked questions
What findings did CAMAudit surface in the Texas Health and Human Services Commission case?
CAMAudit flagged 2 findings with an apparent overcharge of $124,000. Each finding cites the specific detection rule, dollar amount, and the lease provision that grounds the dispute.
Can my firm reproduce these findings on a live client engagement?
Yes. Your firm uploads the lease and CAM bill. CAMAudit checks them against the same rule set. Your firm reviews the findings. Then your firm sends the branded report to the client.
Is Office a common property type for CAM audit engagements?
CAMAudit handles all commercial property types: retail, office, industrial, mixed-use, and specialty. The detection rules apply wherever a tenant pays CAM or operating expenses under a lease with specific definitions, caps, or exclusion lists.
What is a correction package and does CAMAudit generate one?
A correction draft is a factual starting point that specifies each overcharge by rule, dollar amount, and lease provision. CAMAudit generates a draft grounded in the specific audit findings for advisor and counsel review.
Run these same detection rules on your client engagements
Upload a client lease and CAM bill. CAMAudit applies the same rule set used in this case study. Your firm reviews the findings and sends the branded report to the client.
Book a partner walkthroughPublic-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by Texas Health and Human Services Commission or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.