Monthly Variance Reports

Your variance report is meant to tell the financial story for the month, it is not meant to regurgitate numbers. Major events that caused your statement to be under or over budget for the month should be explained.

Variance reports should be completed and sent to your Regional Manager 5 business days after receiving your prelim from your accountant (5 business days from the 1st of the month).

Attachments - use the saved filters in Company Reports > Variance Reporting when generating reports

• Income Statement Budget vs Actual (Monthly Var)
  • Period: Prior Post Month
  • Display Options:
    • Remove % Variance
    • Add Prior Year Variance for Month & YTD (prior year)
• Forecasted Income Statement (aka Trend)
• Balance Sheet - please compare post month in the filter set
• Property - Monthly Variance Spreadsheet

Email Format - Variance Report Email Format

Note: Positive variance category summaries do not need to be longer than a couple of sentences to a paragraph, but enough to tell the Operating Statement story. Negative variance categories will require more detail including the impact causing the variance and plan moving forward.

Revenue: $ Variance for Month / $ Variance YTD

• Categories to focus on: GPR, Income Loss, and Other income results summary  

Summary of Revenue categories – Site level and market level activity driving the variances. Do not repeat what can be taken by reading the financial statement, tell the story. Focus on the events that had a major impact on your statement that caused you to be over or under budget in a category.

NOI: $ Variance for Month / $ Variance YTD

• Categories to focus on: Payroll, Admin, Marketing, Maint, Turn, Utilities  

Summary of expenses – Site level activity driving major variances or performance compared to budget. Do not repeat what can be taken by reading the financial statement, tell the story. Focus on the events that had a major impact on your statement that caused you to be over or under budget in a category. 

CAPX: $ Variance for Month / $ Variance YTD

• CapX summary – Both routine CapX and major CapX projects

Project status update + outstanding invoices or timing to budget. Focus on the events that had a major impact on your statement that caused you to be over or under budget in a category. 

NCF: $ Variance for Month / $ Variance YTD

• Rehab summary

Project status update + outstanding invoices or timing to budget. Focus on the events that had a major impact on your statement that caused you to be over or under budget in a category. 

Resources:

• Monthly Variance Spreadsheet
• Variance Report Email Format