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.
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