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As we said elsewhere, we use mechanisms to ensure projects are allocated only the budget endorsed and no more and we use mechanisms to ensure Small Change projects do not get extra funds to exceed a Small Change allocation threshold. The approach in the Toolkit is to provide a swift fit for purpose solution that meets our objective and this issue is no different. A swift solution to this challenge is to add an accumulative funds to date field to the project pipeline and to update this periodically. Each time a project is allocated funds the field for that project is updated with the amount of the allocation and the date that the allocation was made. If you also add a value of funds approved field to the project pipeline and set this to the value of funds assigned to the project following agreement to progress, a swift subtraction of the funds to date from the value of project funds approved will derive the funds allocated to that project that have not yet been allocated.

Available Project funds = Project funds approved - funds to date

These are the available project funds or the draw down that the project is entitled to for a financial year or Project Funding Cycle.

Periodic checks against the running total for the value of the funds to date figure will give the current level of allocation for the project. Summing all the values of the funds to date figures will give the current level of allocation for all projects across an organisation.

Subtracting this amount from the value of the Organisational Development Budget will derive the Available Organisational funds which is the value of funds available for release for all remaining projects for a financial year or for the Project Funding Cycle.

Available Organisational funds = ODB - funds to date

However, in our experiences across projects in client organisations, we find this is not quite enough and does not give funding history which is important too. For this reason we suggest a distinct Funding Payment List (database, spreadsheet or some other fit for purpose solution) to record the date of the funding payment, funding payment amount and funding payment status. Suggested funding payment statuses are Requested, Allocated and Awaited. A funding payment is first requested, then awaited and subsequently allocated to the project. Expansion of the history to include Refunded or Delayed may be demanded where either status condition occurs. This list when combined across all projects in an organisation will provide a detailed summary of the funding payments made and when these were made.

Finally we will ensure that where a Small Change project is being funded that it does not request funds above the Small Change allocation threshold. Validation of individual funding requests for the Small Change project is performed and this triggers communication of any excess funding requests to the Project Pipeline manager. Next we look at the management of project spending, specifically how we supervise and scrutinise the ODB and cost centres.

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Project Funds Management






   


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