Instructions for Completing the Variance Analysis Explanation

90.2 - Instructions for Completing the Variance Analysis Explanation Report (Rev. 2, 08-30-02) A1-1332.2, B1-4332.2 The contractor's explanation must include the reason for the variance and what action is being taken to correct the variance by the next IER, e.g., redirection of efforts, abatement of activities (CMS approval required), a supplemental budget request, reduction or increase in staff, or temporary workload backlog. Statements such as "We have exceeded the variance tolerance because adequate funds were not provided by CMS in the budget approval" are neither responsive nor acceptable. All variances between the September IER and the FACP must be explained as defined in §140. A. The contractor shall identify the month and FY of the report. B. For each activity cost or workload that exceeds the tolerance percentage as indicated in CAFM II, the contractor shall complete the following in its narrative explanation to the RO: It shall enter the code number and name for the function or activity. It shall enter the variance percentage as displayed in CAFM II, and It shall enter the explanation of the variance. C. The contractor shall submit narrative explanations to the RO via electronic media. Specific instructions on the type of word processing package to use can be obtained from the contractor's RO.