"Pro forma" is from the Latin meaning "according to form." Pro forma operating budgets are estimates based on anticipated income and expenses. By statute, budgets have certain required elements.
Variances. Because each line item is a projection, associations typically experience variances throughout the year with some expenses being higher than anticipated and others lower. For example, insurance may renew mid-year and the carrier suddenly increases the premiums without warning. This would cause the line item for insurance to be over-budget for the year. Such variances are normal.
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