Reconciliation Factors

This is not a primary analysis screen. It does not need to be studied at all for unflexed forecasts.
Reconciliation factors summarise any differences between the initial projections produced by CAPACITY and those input from a housing association's own business forecasting model. They cannot be calculated, therefore, when CAPACITY is being used to generate an original business plan.

See the detailed discussion of reconciliation factors and how reconciliation works.
This screen presents the detailed list of reconciliation factors which deal with income and expenditure, balance sheet and cash flow items. Some relate to the sixteen separate business streams and some to total association figures. Some are expressed as absolute differences, some as proportional differences.

Interpretation is by no means straightforward since it involves comparing the forecasting logic of CAPACITY, as explained in How the Forecast Works with that of the association's own model. Any large absolute factors or any relative factors that are much bigger or smaller than 1.00 are potentially of interest, as a guide to possible future improvements in either CAPACITY or the association's own model.

But this is all irrelevant to the analysis of the financial projections when dealing with unflexed forecast because the factors are lost in the reconciliation process. They become more relevant when discussing flexed forecasts.