1. The Senior Lifestyle Spend Down Report

2. What is the Spend Down Report?
The Spend Down report is the Community Check Book

3. Why Do We Use a Spend Down Report?
The Spend Down Report allows a community to ensure that they do not exceed the allowable budgeted monthly expense by department.
The Spend Down provides an adjusted allowable budget based on the communities occupancy.
The Spend Down Report enables a community to forecast (predict) spending month over month.

4. What you will learn in this training:
Where to locate your community Spend Down Report
How the Business Office Manager prepares the Spend Down Report each month.
How to populate the Dashboard and FTE tab of the Spend Down Report.
How every department director will use the Spend Down Report.
Spend Down Best Practices

5. Where do I find the Spend Down Report?
Go to your community Shared Drive.
Click on the Spend Down File. You will see the below:

6. How Each Monthly Spend Down is Posted to the Shared Drive
Within the Spend Down File, you will find one Copy of the Spend Down titled: (community number )– 2014 Expense Dashboard – Master
Each month the BOM will copy and paste the Master Dashboard specific to the new month and save it to the Spend Down Folder. Example: “October 2014 Spend Down”
Once the Spend Down for the new month has been created, department directors will be able to access the Spend Down for that month.

7. First things First: Populating the Spend Down Before Posting for Use- The Dashboard
The Dashboard is the first tab of the Spend Down Report.
If used properly , the dashboard will provide a snapshot of the month to date FTEs vs the budgeted FTEs and the controllable operating expenses vs the budgeted controllable operating expenses.
This Tab must be populated by the BOM before the BOM posts the report for each month.
All fields highlighted in yellow must be populated at the beginning of each month and some will be updated each week.

8. Populating the Dashboard Tab:
First , the BOM will enter the ADC in units for each product (IL, AL, SC, SNF) applicable to your community as of the last day of the prior month. Example, if you have an Independent and Assisted Living Community, the BOM would populate those fields and leave Memory Care (SC) and Skilled Care (SNF) blank.
Next, the BOM will enter the current community ADC in units.
This will set any expense based on a resident per day or unit per day allocations. Example: Raw Food.

9. Populating the Dashboard tab (cont.)
Next, the BOM will enter the correct month and year to include the number of days in the month. When entering that date, you will need to enter the date numerically. Example: 3/2014
Entering the correct number of days in the month is a critical step as this number will calculate any expense based on a per resident day allocation.
The BOM will update the Week Number each week

10. Populating the Dashboard Tab (cont.):
Each week, the BOM will update the Overtime Hours.
The Overtime Hours should be calculated on a month to date basis. This information can be pulled from Kronos

11. Accessing Overtime Hours in Kronos
Each Monday, the BOM will update the Overtime Hours on the Expense Dashboard.
To access the Overtime Hours in Kronos, the BOM will run the Hours by Labor Account Report.
The BOM will populate the Time Period for this report by entering the first day of the month to the Saturday of the week prior.
This will give the total month to date overtime accumulation for the community.
The BOM will enter this information on the expense dashboard each Monday.

12. TAB 2: The FTE (Full Time Employee) Analysis
The FTE tab should be updated weekly.
The Actual by Labor Report in Kronos may be used to calculate FTEs as well.
For each department, divide the total hours worked for the week by 40 to determine your FTEs for the week.
Note: one FTE is the equivalent of 40 hours worked. The report is not a count of how many full time team members a community has.

13. Department Director: Entering Your Department Expenses
Each Department Director is responsible to maintain the individual Spend Down Tab for his or her department.
All department expenses must be updated daily. This is the ONLY way to ensure that the department does not go over budget.
Each Department’s Tab will act as a declining balance of expense.
When expenses are entered, the template will automatically deduct them from your total budget for the month.

14. To enter an expense:
After coding the invoice with the account number and your approval, you will enter the date of the invoice on the Spend Down Template.
Then, you will enter the vendor name in the second column.
Next, describe the reason for the expense (ex. “HVAC repair to unit 531 – not cooling”)
Lastly, enter the amount of the invoice. This will automatically deduct from your budget once populated.
Note: Purchases made thru DSSI still need to be entered into your Spend Down.
Once you have completed this process, you will turn the invoice in to your ED for signature /approval. The ED will then turn this invoice over to the BOM for entry into Yardi Accounts Payable.

15. Spend Down Best Practices
At the beginning of each month, enter all of your known expenses. Example: If you know that you have a regular monthly expense, enter that expense in the beginning of the month. Do not enter the date for the invoice – this will be a visual cue that you have not received the invoice yet.
By entering the anticipated expense and the anticipate amount, you will be sure you account for it before you spend anything else. When you receive the invoice you will code it, enter the date of the invoice on the Spend Down Report, and forward the invoice on to your ED.
This will also act as a reminder: if you do not have a date entered for the invoice by the 2oth of the month, you will know that you need to contact your vendor to obtain the invoice in time for month end close.

16. Spend Down Best Practice
When a vendor comes to community to provide a service (example: HVAC repair, equipment repair), enter the name of the vendor and the reason for the visit on your spend down immediately.
This will remind you to be on the lookout for the invoice.
If you have not received the invoice by the 20th of the month, contact your vendor.
All expenses must be expenses must be accounted for in the month that the expense was incurred or the service was rendered. Example: If a service was rendered in March, it must be on your March Spend Down and processed in Yardi March.

17. Spend Down Best Practice
Weekly Reconciliation of the Spend Down to Yardi:
Every Thursday, the BOM will run the Expense Distribution Report in Yardi and distribute to the Department Directors.
The Department Directors will cross check their Spend Down Report to the Expense Distribution Report to make sure that all invoice received have been accounted for in Yardi.

18. How to Run the Expense Distribution Report:
Yardi Pathway:
Reports – Payable – Expense Distribution

19. The Expense Distribution Report will list all expenses entered into Yardi by account number.

20. Spend Down Best Practice (cont.)
Upon reconciling the Expense Distribution Report to Yardi, the Department Director will sign the Expense Distribution Report to be given to the ED at stand up on Friday.
Note: The Expense Distribution Report may evidence expenses allocated to the community from the Corporate Accounts Payable Team. The Department Director should enter these expense on his or her spend down when noted. Like all expenses, these must be deducted from the monthly budget to prevent overspending.

21. Month End – Accruals
Again, all expense must be accounted for on the Spend Down and in Yardi in the month the service was rendered or the expense incurred.
If you do not have an invoice by the 20th, you MUST contact the vendor.
If you do not receive the invoice by the AP cut-off, the community has until the third business day of the month to enter that invoice.
The invoice may be “accrued” if received on the 4th business day of the month before 10 am. The BOM must complete an JE Accrual spread sheet and submit to his or her property accountant by 12 noon CST.
Best Practice: avoid accruals!

22. Thank you!