Examining Funding Limit Reconciliation for Projects

Funding Limit Reconciliation

Examining Funding Limit Reconciliation for Projects


Funding Limit Reconcilation is a method of adjusting , spending, scheduling and resource allocation in order to bring ng expenditures into alignment with budgetary constraints.


Most budgets are created on the premise of steady incoming and outgoing flows. Large, sporadic expenditures are usually incompatible with organisational operations. Therefore , funding limits are often in place to regulate the outgoing capital flow and to protect against overspending.

Funding Limit Reconciliation

Budgets must be reconciled with such limits.  This will affect the scheduling of project work and possibly reshuffle WBS work packages entirely. The schedule , in turn , can affect the distribution or acquisition of resources.


Typical example…

Customers set finding limits for large projects based on internal considerations such as when their fiscal years begin and end and how healthy their cash flows are . A customer who want to spread the costs of a project over two quarters may authorize $250,000 to be spent during Quarter 1 and $350,000 during Quarter 2.


In response, the project manager will have to align the resources , schedules and activities so that the project work does not exceed the limit on funding.



Adeniyi Salau PMP , CCNA R&S , CDMP, CEP, MOS, MCP, CSCU (Project 2016), Microsoft Certified Security and Networking Associate is a Google and Beingcert Certified Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.

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