Glossary
Calculations & Formulas
Reconciliation Variance
The dollar difference between a tenant's estimated CAM payments and the actual costs billed at year-end. The variance should map cleanly to the true-up charge or credit; when it doesn't, that gap is the signal to request supporting detail.
Firm impact
A reconciliation variance that doesn't add up to the stated true-up amount means something in the math is wrong before your firm even gets to testing individual expense categories. Catching this early keeps your team from building a finding on top of a broken baseline.
How this gets abused
A statement shows $180,000 in estimated payments and $210,000 in actual costs, a $30,000 variance, but the true-up invoice bills the tenant $38,000. The extra $8,000 has no itemized explanation anywhere in the statement.
Practitioner note
Recalculate the variance yourself from the estimated and actual totals before accepting the stated true-up figure. Any gap between your number and the landlord's should be resolved with a documented explanation before your firm moves to the detailed expense review.
Related terms
FAQ
Questions about reconciliation variance
What should the reconciliation variance equal?
It should equal the true-up amount billed or credited to the tenant. If the two numbers do not match, request an itemized explanation before treating the true-up figure as correct.
Does CAMAudit check the reconciliation variance automatically?
Yes. CAMAudit's true-up verification check recalculates the variance between estimated and actual costs and confirms it matches the billed true-up amount, flagging any unexplained gap.
You know the term. Now check the math.
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