Funding Limit Reconciliation

Some times in the project the sponsor might have already decided about what is the overall budget of the project. As a project manager once you determine the budget and when you compare planned budget with the budget decided or allocated, if it exceeds the allocated, then you need to re-plan may be by re-considering the scope or increase the allocated budget itself in approval with sponsor. This is called Funding Limit Reconciliation. In simple sentence it is nothing but reconciling or reworking the budget based on the limitation of the funding availability.

Funding Limit Reconciliation technique is used under the process Determine Budget.