Jenny Ramos HCA 240
1/16/2013
Tirizia York

Explanation of the Monthly Budget

A variance report is a report where it demonstrates and compares the cost for our hospital. This reports shows what the budget was estimated for, the actual amount spent, and the variance. The variance means what we profited in or lost. I work in one the few bigger hospitals as a finance manager. There was recently a tornado that killed eight people, destroyed over a couple dozen homes, and injured about hundred people. Obviously, this was an unexpected event that had impacted my budget. Many of these patients did not have medical insurance, therefore, we were not receiving as much profit as we were losing. Even though my Vice President was aware of the tornado he asked me to explain and write out a variance report on why we went over our allowed budget. I wrote a letter of explanation for our Vice President which gives details on why did not meet our budget. This is a letter intended to explain why our monthly budget results were not as planned. For this month, we exceeded our monthly budget. This month our salary cost was higher than what was budgeted. Our budget count estimated for salary for our employees was 200,000 dollars. This budget was supposed to cover the salary for the whole hospital. The actual amount calculated was 240,000. The variance for this was 40,000 dollars. This means that our budget was exceeded by twenty percent. As you already know there was a tornado in our city. Even though this tornado did not cause as much damage or death as the previous one it still harmed and injured a lot of people. The reason why I bring the tornado into this is because, our emergency room was filled with people who got hurt in some way or another. These patients injuries vary anywhere from a minor concussion, to broken bones, to actually needing some type of surgical