YOU ASK
My recoveries look too high. Could an expense be included both on its own and inside a group?
The short answer
Yes. The documented recovery structure permits an expense or an expense group to appear more than once. Check whether the same underlying expense enters multiple recovery-method rows before treating the higher result as a rent-roll or allocation error.
Work through the checks
- Identify the tenant, recovery structure and period producing the unexpected result.
- List each recovery-method row and the Expense or Group assigned to it.
- Expand each group into its underlying expenses on a separate checking sheet. Flag an expense that appears through more than one route.
- Compare the calculation method, allocation and intended lease treatment for those rows. Repeated inclusion is a reason to investigate, not permission to delete a valid charge.
- If a duplicate is confirmed, correct it in a working copy and compare the same tenant and period before applying the intended change.
| Recovery-method row | Underlying expense | Check |
|---|---|---|
| Operating costs group | Cleaning, security | Cleaning enters through the group |
| Cleaning expense | Cleaning | Cleaning also enters directly |
Invented audit example. Overlap alone does not establish the monetary error; methods and allocations still need checking.
THE EASY MISTAKE
Changing the tenant’s allocation percentage can hide an overlapping input while leaving the cause in place.