The operational variance report budget goals and the actual results of performance are not always the same despite careful calculations when creaiing the report. The variance analysis determines the cause of changes between the expected and the actual. In order to control the costs an administrator must recognize the problem, determine cost and correct the issue. The actual results of performance could have been different from the operation variance report due to unforeseen circumstances. For example, if a few of the employees decided to quit or lower the number of hours they could work it would have changed the labor portion of the variance report. The actual results of performance can also be different due to patient volume, payout differences, productivity, efficiency and the quality of care given (Cleverly, 0. 8: Song, H. 3: Cleverly, 0., 2011]. When a season does not bring in as many patients as prior years it has a direct effect on the amount of labor being utilized. Likewise when a season brings in a higher patient volume than expected quality of care could decrease as a result of not having enough staff. 1When there is an unexpected change in any department it effects the operational variance report and can cause a difference in the actual results of performance