FW: 2002 Plan Variance from 2001 Forecast ,
 -----Original Message-----
From: 	Fellers, Diane R.  
Sent:	Wednesday, August 29, 2001 11:22 PM
To:	Kaminski, Vince J; Crenshaw, Shirley
Subject:	2002 Plan Variance from 2001 Forecast
Importance:	High

Vince,

As part of the plan process, I have to prepare a variance analysis between the 2001 forecast and the 2002 plan.  I have attached a summary for your review and I need your help explaining some of the variances.  The 2001 forecast is based mostly on plan, but I did use an annualized amount for some expenses for which the actuals were considerably above or below plan.  Please let me know if you think I need to adjust the forecast because this will, in turn, affect the variances.

The main items I need are as follows:

1) An explanation of the increase in headcount (14 people (26%) over the average of 53 I have forecasted).

2) The Recruiting and Relocations account is new for 2002 - these costs were previously included in Travel.  Therefore, I would expect that the sum of Recruiting and Relocations and Travel for 2002 would be comparable to the 2001 Forecast for Travel alone, but there is a variance of about $140,000 (38%).  I expect that much of this is due to the increase in headcount, but that is not enough to fully justify the increase.  Are you expecting a higher level of travel in 2002?

3) Same as above for Conferences and Training.  This is a new account and these costs used to be in Tuition Reimbursement (this account included all training).  The increase in Tuition Reimbursement alone is really more than I can explain as due to the increase in headcount.  Are there specific conferences planned for 2002 that were not attended in 2001?

4) Can you give me a breakdown of what is included in the amount for Outside Services?

5) If I understand your allocation percentages, you will allocate 100% to other business units, compared to the approximately 73% that is forecast.  Is this correct?

Thanks for your help,
Diane
X5-7996
vkaminski@aol.com