Funding Requirements
Funding requirements define the total and periodic funding needs derived from the cost baseline, including projected expenditures plus anticipated liabilities.
Explanation
Funding requirements are an output of the Determine Budget process. They describe the total funds required as well as periodic (such as quarterly or annual) funding needs. Funding typically occurs in incremental amounts that are not continuous, appearing as a step function in graphical representation.
The total funds required are those described in the cost baseline plus management reserves. Funding requirements may include the source of the funding. The difference between funding and the cost baseline at any point in time is typically the management reserve.
Funding limit reconciliation may be necessary to adjust the expenditure of funds based on funding limitations. If a discrepancy exists between the funding limits and the planned expenditures, rescheduling of work may be required to level out the rate of expenditure. This is accomplished by imposing date constraints on work packages in the project schedule.
Key Points
- •Output of the Determine Budget process
- •Includes total and periodic funding needs
- •Displayed as a step function on a graph
- •May require funding limit reconciliation with scheduled work
Exam Tip
Funding requirements appear as a step function above the S-curve of the cost baseline. If funding does not match the planned expenditure rate, work may need to be rescheduled.
Frequently Asked Questions
Related Topics
Determine Budget
Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Cost Baseline
The cost baseline is the approved version of the time-phased project budget, excluding management reserves, used as a reference for measuring and monitoring cost performance.
S-Curve
An S-curve is a graphical display of cumulative costs, labor hours, or other quantities plotted against time, forming a characteristic S-shape.
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Part of
Cost Management
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