CAM_Reconciliation_Review_Checklist_Presentation.pptx

The checklist provides a step-by-step review framework for ensuring that CAM (Common Area Maintenance) reconciliations are accurate, lease-compliant, and fairly allocated to tenants in commercial real estate accounting.

1. CAM Reconciliation Review Checklist Real Estate Accounting – Commercial Properties

2. Lease & Tenant Review Review leases for CAM inclusions/exclusions Confirm base year/expense stop terms Adjust capped amounts (cumulative vs. standard cap) Validate CAM caps and escalations Update recovery for new/terminated tenants Check RSF and pro-rata share % Apply special provisions (anchors, exclusions, audit rights)

3. Expense Validation Verify CAM expenses match audited financials/books Adjust for escrow, additional charges, non-cash adjustments Include only recoverable expenses (utilities, janitorial, insurance, repairs) Adjust CAM, INS, RET expenses from GL Review amortization of capital expenses Exclude non-recoverable costs (capital, leasing, overhead) Validate owner/auditor adjustments

4. Occupancy & Gross-Up Adjustments Confirm occupancy vs required gross-up (e.g., 95%/100%) Gross-up variable expenses (utilities, janitorial) Exclude fixed expenses (insurance, taxes, landscaping) from gross-up

5. Allocation to Tenants Verify tenant pro-rata share calculation (RSF ÷ GLA) Check exclusions/carve-outs (anchors, single-tenant, promo funds) Validate base year/expense stop offsets Ensure CAM cap limits are accurate

6. Reconciliation & Billing Match estimated CAM charges to tenant ledgers Calculate actual vs estimated CAM variance Apply carry-forward balances or credits Confirm management/admin fees billed per lease Ensure tenant reconciliation statements are clear and compliant

7. Quality Assurance Cross-check total tenant recoveries vs property recovery summary Confirm consistency across all tenants Maintain supporting documentation for audit rights Review final reconciliation package for accuracy and completeness

8. Outcome Tenants billed fairly and accurately per leases Property owners assured of maximized recoveries Full support and transparency for audit and compliance