PBTK Case Study #2: Court Appointed as Special Master

PBTK was appointed by the Eighth Judicial District Court, Clark County, Nevada to serve as the fact finder in all accounting issues related to a tenant – landlord dispute. This was a multi-year dispute pertaining to misallocation of common operating costs
(“Additional Rent,” also known as CAM).


PBTK’s assignment as Special Master involved performing a Forensic Investigation using the accounting records for costs included as Additional Rent, tracing those costs to supporting documents and allocating the Additional Rent to the tenant pursuant to lease agreements.


Review written summaries highlighting the dispute issues; analyze the general ledgers to determine those costs included in Additional Rent; review lease agreements of the tenant; conduct meetings with counsel.

Forensic Accounting Procedures:

Determine those specific costs included in Additional Rent; trace costs to supporting documentation (invoices, journal entries, or payroll); summarize the Unsupported and At Issue costs; evaluate cost offsets and lease-specified credits; analyze tenant allocation methods and square footage/HVAC-usage factors.

Develop findings:

Recast the Additional Rent reconciliation statements using recalculated proportional allocation factors, after adjusting cost pools for Unsupported and At Issue Costs.


A report of our findings was issued to the Court and the parties reached a settlement prior to trial.