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Real Estate Portfolio Management / Cost Administration / Cost Administrator

The Lease CAM Reconciliation Report

If a tenant is paying an estimate of CAM costs, the lease often includes a provision that the landlord can bill the tenant for any difference between the estimated and the actual costs, or remit to the tenant any overage paid. The CAM Reconciliation Report summarizes estimated and actual CAM costs for a lease for the year, reducing the time and errors associated with CAM reconciliation, and providing the data needed to analyze CAM cost performance.

Tenants - As a tenant, the CAM Cost Reconciliation Report enables you to assess:

• How much you are being charged each year over the estimated CAM charges
• If the CAM Cost – Actual amount has increased or decreased each year
• The amount of CAM costs you paid in the past, providing an historical audit

Landlords - As the landlord, the report enables you to:

• Evaluate the trend of CAM costs for a lease
• Provide tenant's with an accounting of cost transactions for CAM adjustments when needed

The CAM Cost Reconciliation report enables you to evaluate CAM cost performance by providing the following for a lease for each year selected for the report:

• The base rent
• The estimated CAM cost amount
• The actual CAM cost amount
• The amount and percentage difference between actual and estimated CAM costs from one year to another

The Lease CAM Reconciliation Report can be filtered for a specific range of Lease Years (for example, CAM Reconciliation history from Lease Year 2005 to Lease Year 2013), and exported as a paginated report (DOCX file) or spreadsheet (XLS file).

Supporting Documents

When you add a CAM adjustment, you can store supporting documents with the CAM adjustment record by scanning the document and saving it as a PDF. For example, you could attach the following:

• Landlord invoice document
• CAM Reconciliation Report sent from the landlord to the tenant
• Additional documents regarding CAM Costs Reconciliation, such as an audit report, memos and other documentation of communication between the tenant and the landlord. You store these documents in the Support Document-1 through 4 fields.

Report Data

The report performs the following calculations for the selected lease and year:

• Base Rent: The application sums all scheduled or approved cost transaction records for the lease having the cost category ‘RENT – BASE RENT’ and which were due during the Lease Year.
• CAM Cost – Estimated: The application sums either approved or scheduled CAM estimates for the lease which were due during the selected Lease Year. The application calculates estimated costs based on the lease's CAM Profile, and records them as recurring costs with the RENT-CAM ESTIMATE cost category. The cost administrator can schedule or approve these costs using the Cost Wizard. See Adding a CAM Profile for a Lease.
• Total CAM Adjustments: This is the sum of all the CAM adjustments (either scheduled or approved) for the selected lease and lease year. CAM adjustments have the cost category ‘RENT – CAM RECONCILIATION’. The landlord's financial accounting system calculates the CAM adjustment for a lease as the difference between the approved CAM estimated costs the tenant paid for the year, and the lease's share of the actual costs the landlord incurred during the year. Cost administrators for both the landlord and the tenant enter these CAM adjustments into ARCHIBUS. Either scheduled or approved CAM adjustments are included in the report. You can approve CAM adjustments if your workflow requires it, but it is not required to do so. See Adding CAM Adjustments.
• CAM Cost – Actual: The CAM Cost – Actual is calculated by summing the summarized CAM Cost - Estimated and the Total CAM Adjustments for the lease and lease year. The CAM Cost - Actual provides a record of the actual CAM costs for the selected lease and year.
• CAM Delta (%): Percentage difference between CAM Cost - Actual and CAM Cost - Estimate. This is calculated as:

  (CAM Reconciliation Difference) / (CAM Cost - Estimated) X 100.

  The CAM Delta (%) enables you to analyze CAM cost performance.

The CAM Reconciliation Report when Using the ARCHIBUS Enhanced Global Feature Set

If you are using the ARCHIBUS Enhanced Global Feature Set, all amounts in the Lease CAM Reconciliation Report are displayed in the user's Payment Currency, using the Payment Rate as the default exchange rate. You can view the report using a different currency and exchange rate using the Currency button. Use the VAT button to show Total Costs, Base Costs, or VAT costs only.

See Selecting VAT Cost Types and Currency for Reports for a description of the cost fields used to show VAT costs in different currencies.

Generating the Report

To generate the Lease CAM Reconciliation Report:

1. From the Process Navigator, select Cost Administration / Cost Administrator / Lease CAM Reconciliation Report.
2. From the Lease Code list, select the lease for which you want to analyze CAM cost performance, and select a single or multiple years for which you want to generate the report.
3. If you are using the ARCHIBUS Enhanced Global Feature Set, the report displays by default in your user default currency. To change the currency:
   1. Click Currency.
   2. From the Currency options, select Budget to display the report in the Budget Currency. Or, select the Select Currency option and select a currency from the list.
   3. Click Save.
4. Click Show to apply the Filter and Currency selections.

   The report shows the calculated and summarized CAM costs for the selected lease and years.

5. To export the report to an Excel spreadsheet, click XLS.
6. To view the adjustments contributing for the total for a year, click the year in the Lease Year column in the report.

   The Review CAM Reconciliation Adjustments form shows the CAM adjustment transactions for the selected year. From this form, if needed, you can edit or delete adjustments.