Project Budget

Topics: Marketing, Forecasting, Cost Pages: 2 (691 words) Published: March 16, 2013
Hello Caroline, This is Shepal from the FP&A group. How are you doing today? Hello Shepal, I am doing well. How can I help you?
Well Caroline, I wanted to discuss with you the results of your Dept 1880 Retail Marketing, budget variance vs. actual for Jun 2011. Sure, Let me get my notes out that I had submitted to your group. I emailed you a copy as well with your comments for this review. Did you receive it? Yes, I did

Ok, there were 3 main categories where the variance between actual and budget were the highest. Those categories are Compensation, Marketing, IT, and then we put everything else from your department into other. Correct.

I have my notes here when we put the budget together last year, that the decision was made that for your dept 1880 there would be no increase in salary due to the shortfall in revenue that is forecasted for this year, however dept 1883 would receive a 2% increase. As well as the initial plan was to payout a 100% of bonus and then was reduced back to 50% due to the market condition. In compensation for the month your budget was $44,110 and your actual was $39,256 for a MTD variance of favorable $4,854. Yes, that is correct. Actuals were lower than forecast due to Bonus (payouts were 50% vs 100% expected at the time of the forecast in recognition of a more challenging economic environment). Ok, so that matches with what we had forecasted, however it is still $4854 less than the projected forecast at 50%. We had to let go of Sarah unfortunately as her area dried up and she was having a lot of issues filling her order board. That is her salary amount as we let her go in May. That is unfortunate in today’s economic situation. Please add this to your comments for the month of Jun for clarification of the difference. Next category is marketing, where the budget for Jun was $68,500 and the actual was $71,475 for a MTD variance of an unfavorable $2,975. Actuals were higher than forecasting due to Advertising mainly...
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