1. It is January 2, 2012 and you have started your first day of work as the Practice Administrator for the Tri-Cities Geriatric Center (a physician practice serving older adults). Your first job is to project a budget for calendar year 2012. In gathering information for this task, you come across budgets for the past 3 years. However, the former Director did not complete budget worksheets (maybe the reason he was fired), so you dont have complete information.

Assume that it is now January 2, 2013 and the actual budget numbers were reported for CY 2012 in Table 1b. Complete a budget variance report (both dollar variance and percent variance) for CY 2012. What does this variance report tell us about revenues and expenses (profit/loss)? What could you have done to increase profit or prevent loss?

	CY 2009	CY2010	CY2011
Number of visits	12,000	12,120	12,241
Private insurance visits			9,793
TennCare visits	2,400	2,424
Net Revenue		$557,520	$563,090
Private revenue	$480,000	$484,800
TennCare revenue	$72,000		$73,440
Expenses
Salaries and wages	$134,933	$136,283	$137,644
Physician fees	$179,512	$181,307	$183,119
Malpractice insurance	$32,013	$32,333	$32,656
Travel and education	$4,488	$4,533	$4,578
General insurance	$8,377	$8,461	$8,546
Utilities	$12,267	$12,389	$12,513
Equipment and lease	$1,496	$1,511	$1,526
Other operating expenses	$89,756	$90,654	$91,559
Total Operating Expenses	$462,842	$467,471	$472,141
Net profit (loss)