If I uncomment the two lines in the code below, I get this error:

Msg 156, Level 15, State 1, Line 134
Incorrect syntax near the keyword 'else'

The variable is declared and I am using the same SET with other variables.

if exists (select * from #a where s = @FileName)
	--SET @FileExists = 'Y'
	print @PATH + @Filename + ' exists'
else
	--SET @FileExists = 'N'
	print @PATH + @Filename + ' does not exist'
drop table #a