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Public-record case study

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.

Travis County Appraisal District2022 statementNNN leaseOffice

Apparent overcharge

$0

Findings

1

High confidence

$0

Source

Travis County TX, Contract #TC-2020-0214 (TX Public Information Act)
Property & Casualty Insurance billed at $52,800 (building-level).
Rule 5 advisory flag for potential gross-up misapplication.

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.

Detection guide

Gross-up violation guide

Frequently Asked Questions

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Public-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.

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