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Explanation of variances HartwellName of smaller authority:County area (local councils and parish meetings only): NorthamptonshireInsert figures from Section 2 of the AGAR in all Blue highlighted
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How to fill out explanation of variances
How to fill out explanation of variances
01
Identify the actual results for the period in question.
02
Identify the budgeted or expected results for the same period.
03
Calculate the difference between the actual and budgeted results for each line item.
04
Analyze the reasons for the variances and categorize them as favorable or unfavorable.
05
Provide explanations for each variance, including any contributing factors or events that may have led to the differences.
06
Include any corrective actions that may need to be taken to address significant variances.
Who needs explanation of variances?
01
Managers responsible for budget oversight and performance evaluation.
02
Finance and accounting professionals conducting financial analysis and reporting.
03
Investors interested in understanding the financial performance of a company.
04
Auditors reviewing the accuracy and completeness of financial statements.
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What is explanation of variances?
Explanation of variances is a document that outlines the reasons for the differences between expected and actual results.
Who is required to file explanation of variances?
Any individual or entity who is responsible for the budget or financial performance that has significant variances.
How to fill out explanation of variances?
Explanation of variances should be filled out by providing detailed explanations for each significant difference between expected and actual results.
What is the purpose of explanation of variances?
The purpose of explanation of variances is to provide transparency and accountability for financial performance by explaining the reasons for discrepancies.
What information must be reported on explanation of variances?
Information such as budgeted amounts, actual amounts, reasons for variances, and any corrective actions taken must be reported on explanation of variances.
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