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.
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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.