Travis County TX: gross-up advisory on insurance costs case study
A public-record office lease case study with Rule 5 advisory finding on $52,800 in property insurance that must not be included in gross-up calculations.
What happened
The Travis County Appraisal District lease provides gross-up to 95% occupancy on variable expenses. The 2022 reconciliation included $52,800 in property and casualty insurance in the gross-up base. Insurance is a fixed cost; it does not increase when occupancy rises. Applying a gross-up factor to insurance inflates the tenant's share artificially.
Findings from the pipeline
Rule 5: Gross-Up Violation
medium confidence
$0
'Property & Casualty Insurance' is classified as insurance (a fixed cost) and should not be grossed up. Exact overcharge requires manual review.
Math proof
item='Property & Casualty Insurance', amount=52800.00, classification=insurance (fixed cost, must not be grossed up)
Statement references
- Property & Casualty Insurance
Lease evidence
- Gross-up to 95% occupancy applies to variable operating expenses only.
- Property insurance is a fixed cost not subject to occupancy normalization.
Why this matters for your firm
Insurance gross-up errors are particularly common because reconciliation software often applies a global occupancy multiplier to all line items. Tenants rarely detect this because the gross-up adjustment is buried in the reconciliation math rather than shown as a separate line item.
Correction package excerpt
Request for Cooperative Review of Certain Line Items. The automated review flagged possible gross-up applied to property insurance in the 2022 reconciliation, pending confirmation of occupancy rate used.
Frequently asked questions
What findings did CAMAudit surface in the Travis County Appraisal District case?
CAMAudit flagged 1 finding with an apparent overcharge of $0. 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 Travis County Appraisal District or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.