Review the attached financial statement and related budget. Identify the significant variances. There are ten of them. Remember that a significant variance is one that deviates from the budget by more than 5%. Once you have identified the variances, suggest two to three possible causes of each variance. Finally, make two to three recommendations on how you would try to resolve each variance as a manager.

Assignment of Points: There are ten significant variances to budget in the financial statement. There are three parts to the assignment:

Revenue		Actual	Budgeted	Variance
	insurance revenue	$411,905	$465,222
	supplemental income	$26,502	$25,589
	other operating income	$5,682	$5,485
Total Revenue		$444,089	$496,296
Operating Expenses
Staffing	RN salary	$148,999	$140,852
	RT salary	$37,459	$36,582
	PT/OT/ST salary	$26,212	$27,414
	administrative salary	$55,219	$56,211
	management salary	$25,145	$24,318
	housekeeping salary	$10,555	$10,555
	dietary salary	$5,500	$5,469
Benefits	health insurance	$6,182	$6,028
	life insurance	$464	$452
	dental insurance	$309	$301
	403b contributions	$12,364	$12,056
	education	$93	$90
Taxes	payroll	$9,273	$9,042
	workers comp	$77	$75
	FICA	$7,727	$7,535
	Medicare	$6,800	$6,631
	Social Security	$3,709	$3,617
Administrative	office supplies	$510	$500
	postage	$148	$150
	telephone	$355	$350
	marketing	$1,700	$1,500
	legal fees	$600	$100
	accounting	$207	$200
	travel	$56	$50
	liability insurance	$215	$215
	malpractice insurance	$2,658	$1,540
	mortgage	$3,500	$3,500
	property taxes	$105	$105
Medical Supplies	general medical	$1,450	$1,400
	pharmacy	$7,500	$4,800
	Oxygen & RT	$1,190	$1,200
	X-ray	$575	$600
	lab	$480	$500
Dietary	food	$1,545	$1,500
	enteral feedings	$4,700	$3,600
Maintenance	housekeeping supplies	$145	$150
	laundry	$95	$100
	groundskeeping	$0	$0
	snow removal	$380	$320
Utilities	electric	$362	$368
	water	$590	$588
	sewer	$240	$231
	garbage disposal	$152	$152
	shredding	$46	$47
	fuel	$199	$56
	cable TV	$189	$189
	internet service	$205	$205
Total Operating Expenses		$386,183	$371,445
Bad Debt Expense		$26,210	$26,523
Total Expenses		$412,393	$397,968
Net Income		$31,696	$98,328