discuss what the variance report is telling about the budget and the budget assumptions. Also, point out any observations you come up with. Remember NOI is the target. Analyzing any numbers below the Net Operating Income (NOI) is not expected.
Here are some helpful hints:
1. The report reflects the December performance and the Year to Date (YTD) performance.
2. Since this is a year end month report (Dec), the performance numbers for the YTD are the more important numbers since they will represent the overall performance of the year.
3. The key analytics are:
a. Total Income
b. Total Expense
c. NOI
4. The Profit & Loss 12 Month Recap - Tracking from January to December (left to right), this performance shows the trend of improvements and down turns. It tells a story. Looking at the key analytics, can you identify and understand how the year went ?
Utilities @ Expense: 2017 Budget 3% over T-12. Budgeted 3% across the board on Utilities Capital: Gross Potential Rent: Budgeted a total GPR at $1,844,030 - 13% increase over T-12. 6% increase over T-12. Primarily due to increase in appliances, blinds and doors now that the enhancements will be complete. Previously these replacements were realized in the Enhancement Units account Vacancy: Renovation Cap Ex: Average budgeted Vacancy Loss of 5.14%. Uncollectable Rents: Additional pool furniture $4,000 and $12,000 to enhance outdoor areas (this may not be needed now that we have the gazebo) Budgeted.92% Bad Debt. Retention: 50% renewal rate at an average increase of $40 Other Income: Budgeted $156,157 - 8% increase over T-12. Total Income: Budgeted $1,874,183 - 16% increase over T-12 2017 EXPENSES Salaries: Reflects a 6% increase over the T-12; however this is due to the fact that there were open positions in 2016. The staffing plan is Manager, Assistant Manager, Part-time Leasing, Maintenance Supervisor, Assistant Maintenance and Maintenance Tech. Marketing: 7% decrease over T-12; this is primarily due to reducing locator fees. Administrative: 9% decrease over T-12. Primarily due to lower monthly phone contract. O&M 6% increase over T-12. Primarily due to increases on painting, landscaping materials, cleaning contractors, plumbing and HVAC expenses. BA Actual 12/1/16 - 12/31/16 Budget 12/16 Actual YTD 1/1/16 - 12/31/16 Variance Explanation 5% or $5,000 5 and > $500 Budget YTD 1/16 - 12/16 $ Change % Change $ Change % Change Variance Explanation 5% or $5,000 and > $500 1,006.01 4.239.00 -3.232.99 -76.3% 67.140.32 64.740.00 2,400.32 3.7% 89990 Total Recurring Major Repairs a 89993 Renovation CapX Items 64050 Enhance Pkg (64)Renov-CapX 64103 Upgrade Clubhse Furn/Paint Re 64115 Elecrical Renovation CapX - 55 units 18.762.48 0.00 187 50 25,000.00 1.00 1.00 -6.237.52 -1.00 186.50 257,536.24 9,191.98 337.50 300,000.00 12.00 2.00 -42.463.76 9,179.98 335.50 -14.2% 76499.8% 16775.0% -25.0% 4 4 units - 100.0% 18650.0% Service call for electric issue in 2203 34900.0% Laundry room ceiling repair -100.0% 64140 Exterior Repair Renovation Car 350.00 1.00 349.00 2,482.60 5.00 2.477.60 49552.0% 64170 Amentities Renovation CapX - 0.00 1.00 -1.00 18.644.11 5.00 18,639.11 372782.2% Outdoor/Pool area updates Void payment Stablocks 64180 Enhance Landscape Renov-Cap 64191 Phys Needs Assess Renov-Cap 64215 Contingency 5% Renov-CapX 89993 Total Renovation CapX Items 90079 Total Partnership Administration Fees 90070 Legal -1,000.00 0.00 0.00 18,299.98 1.00 1.00 100 25,007.00 -1.001.00 -1.00 -100 -6,707.02 -100 100.0% -100.0% . 100.00 -26.8% 2,355.70 104,351.19 10.822_1 405,732.43 6.00 12.00 244740 324,516.00 2.349.70 104,339.19 - 13.6.40.89 81,216.43 39161.7% 869493.3% .55.7% 25.0% 0.00 1.00 -1.00 - 100.0% 6,050.09 6.00 6,044.09 100734.8% Tax Advocates/Tax protest 0.00 15,706.86 0.00 1.558.49 17.265.35 1.00 14,890.33 1.00 1.276.00 16,169.33 -1.00 816.53 -1.00 282.49 1,096.02 - 100.0% 5.5% - 100.0% 22.1% 6.8% 18,275.00 176, 105.25 6,404.76 23.695.42 230,530.52 16.009.00 178,683.96 3.00 15.893.00 210,594.96 2.266.00 -2.578.71 6.401.76 7.802.42 19,935.56 14.2% -1.4% 213392.0% 49.1% 9.5% 0.00 -2.986.67 -2.986.67 1.00 1.00 2.00 -1.00 -2.98767 -2.988.67 - 100.0% -298767.0% - 149433.5% 0.00 -2.986.67 -2.986.67 7.00 1.00 8.00 -7.00 -2.987.67 -2.994.67 -100.0% -299767.0% -37433.4% 0.0% 90080 Audit/Tax/Outside Accounting / 90085 Facilities Rent 90140 Administrative Fee 90160 Other Partnership Administrativ 90079 Total Total Partnership Administ 90165 Other Income / Expense 90166 Extraordinary Item 90190 Deferred Cable Franchise Incon 90165 Total Other Income / Expense 90169 Total Depreciation & Amortization 90170 Depreciation 97180 Amortization 90169 Total Total Depreciation & Amoi TOTAL N/O EXPENSE /O NET INCOME NET INCOME SUMMARY Income Expense Other Income & Expense Net Operating Income Non Operating Expense NET INCOME 29,880.00 1529.5. 31,408,56 64,993.23 7,965.92 29.877.00 1528.00 31,405.00 76,820.33 -10,846.71 3.00 05 3.56 -11,827.10 18,812.63 0.0% 009 0.0% 358,560.00 18.342 72 376,902.72 1,077,260.39 379,860.44 358,557.00 18.336.00 376,893.00 976,731.96 -277,380.74 3.00 6.72 9.72 100,528.43 -102,479.70 0.0% 0.0% 10.3% -36.9% -15.4% 173.4% 14,411.29 9.8% 9.2% 1,687,137.39 -987,786.17 0.00 1.8% 3.2% 160,826.57 -87,867.42 0.00 72,959.15 64.992.23 7,965.92 146,415.28 -80,441.66 0.00 65,973.62 -76.820.33 -10,846.71 -7,425.76 0.00 6,985.53 11.927.10 18,812.63 1,716,731.55 -1,019,331.60 0.00 697,399.95 -1077.26.0.39 -379,860.44 10.6% 15.4% -173.4% 29,594.16 -31,545.43 0.00 -1.951.27 -100.528.423 -102,479.70 699,351.22 -976.721.96 -277,380.74 -0.3% -10.3% 36.9% Utilities @ Expense: 2017 Budget 3% over T-12. Budgeted 3% across the board on Utilities Capital: Gross Potential Rent: Budgeted a total GPR at $1,844,030 - 13% increase over T-12. 6% increase over T-12. Primarily due to increase in appliances, blinds and doors now that the enhancements will be complete. Previously these replacements were realized in the Enhancement Units account Vacancy: Renovation Cap Ex: Average budgeted Vacancy Loss of 5.14%. Uncollectable Rents: Additional pool furniture $4,000 and $12,000 to enhance outdoor areas (this may not be needed now that we have the gazebo) Budgeted.92% Bad Debt. Retention: 50% renewal rate at an average increase of $40 Other Income: Budgeted $156,157 - 8% increase over T-12. Total Income: Budgeted $1,874,183 - 16% increase over T-12 2017 EXPENSES Salaries: Reflects a 6% increase over the T-12; however this is due to the fact that there were open positions in 2016. The staffing plan is Manager, Assistant Manager, Part-time Leasing, Maintenance Supervisor, Assistant Maintenance and Maintenance Tech. Marketing: 7% decrease over T-12; this is primarily due to reducing locator fees. Administrative: 9% decrease over T-12. Primarily due to lower monthly phone contract. O&M 6% increase over T-12. Primarily due to increases on painting, landscaping materials, cleaning contractors, plumbing and HVAC expenses. BA Actual 12/1/16 - 12/31/16 Budget 12/16 Actual YTD 1/1/16 - 12/31/16 Variance Explanation 5% or $5,000 5 and > $500 Budget YTD 1/16 - 12/16 $ Change % Change $ Change % Change Variance Explanation 5% or $5,000 and > $500 1,006.01 4.239.00 -3.232.99 -76.3% 67.140.32 64.740.00 2,400.32 3.7% 89990 Total Recurring Major Repairs a 89993 Renovation CapX Items 64050 Enhance Pkg (64)Renov-CapX 64103 Upgrade Clubhse Furn/Paint Re 64115 Elecrical Renovation CapX - 55 units 18.762.48 0.00 187 50 25,000.00 1.00 1.00 -6.237.52 -1.00 186.50 257,536.24 9,191.98 337.50 300,000.00 12.00 2.00 -42.463.76 9,179.98 335.50 -14.2% 76499.8% 16775.0% -25.0% 4 4 units - 100.0% 18650.0% Service call for electric issue in 2203 34900.0% Laundry room ceiling repair -100.0% 64140 Exterior Repair Renovation Car 350.00 1.00 349.00 2,482.60 5.00 2.477.60 49552.0% 64170 Amentities Renovation CapX - 0.00 1.00 -1.00 18.644.11 5.00 18,639.11 372782.2% Outdoor/Pool area updates Void payment Stablocks 64180 Enhance Landscape Renov-Cap 64191 Phys Needs Assess Renov-Cap 64215 Contingency 5% Renov-CapX 89993 Total Renovation CapX Items 90079 Total Partnership Administration Fees 90070 Legal -1,000.00 0.00 0.00 18,299.98 1.00 1.00 100 25,007.00 -1.001.00 -1.00 -100 -6,707.02 -100 100.0% -100.0% . 100.00 -26.8% 2,355.70 104,351.19 10.822_1 405,732.43 6.00 12.00 244740 324,516.00 2.349.70 104,339.19 - 13.6.40.89 81,216.43 39161.7% 869493.3% .55.7% 25.0% 0.00 1.00 -1.00 - 100.0% 6,050.09 6.00 6,044.09 100734.8% Tax Advocates/Tax protest 0.00 15,706.86 0.00 1.558.49 17.265.35 1.00 14,890.33 1.00 1.276.00 16,169.33 -1.00 816.53 -1.00 282.49 1,096.02 - 100.0% 5.5% - 100.0% 22.1% 6.8% 18,275.00 176, 105.25 6,404.76 23.695.42 230,530.52 16.009.00 178,683.96 3.00 15.893.00 210,594.96 2.266.00 -2.578.71 6.401.76 7.802.42 19,935.56 14.2% -1.4% 213392.0% 49.1% 9.5% 0.00 -2.986.67 -2.986.67 1.00 1.00 2.00 -1.00 -2.98767 -2.988.67 - 100.0% -298767.0% - 149433.5% 0.00 -2.986.67 -2.986.67 7.00 1.00 8.00 -7.00 -2.987.67 -2.994.67 -100.0% -299767.0% -37433.4% 0.0% 90080 Audit/Tax/Outside Accounting / 90085 Facilities Rent 90140 Administrative Fee 90160 Other Partnership Administrativ 90079 Total Total Partnership Administ 90165 Other Income / Expense 90166 Extraordinary Item 90190 Deferred Cable Franchise Incon 90165 Total Other Income / Expense 90169 Total Depreciation & Amortization 90170 Depreciation 97180 Amortization 90169 Total Total Depreciation & Amoi TOTAL N/O EXPENSE /O NET INCOME NET INCOME SUMMARY Income Expense Other Income & Expense Net Operating Income Non Operating Expense NET INCOME 29,880.00 1529.5. 31,408,56 64,993.23 7,965.92 29.877.00 1528.00 31,405.00 76,820.33 -10,846.71 3.00 05 3.56 -11,827.10 18,812.63 0.0% 009 0.0% 358,560.00 18.342 72 376,902.72 1,077,260.39 379,860.44 358,557.00 18.336.00 376,893.00 976,731.96 -277,380.74 3.00 6.72 9.72 100,528.43 -102,479.70 0.0% 0.0% 10.3% -36.9% -15.4% 173.4% 14,411.29 9.8% 9.2% 1,687,137.39 -987,786.17 0.00 1.8% 3.2% 160,826.57 -87,867.42 0.00 72,959.15 64.992.23 7,965.92 146,415.28 -80,441.66 0.00 65,973.62 -76.820.33 -10,846.71 -7,425.76 0.00 6,985.53 11.927.10 18,812.63 1,716,731.55 -1,019,331.60 0.00 697,399.95 -1077.26.0.39 -379,860.44 10.6% 15.4% -173.4% 29,594.16 -31,545.43 0.00 -1.951.27 -100.528.423 -102,479.70 699,351.22 -976.721.96 -277,380.74 -0.3% -10.3% 36.9%
