Home / Solutions / Finance leaders

Role

What was awarded,
and what is actually funded

Two numbers that are frequently not the same, rarely tracked separately, and usually reconciled at the worst possible moment. Incremental funding is normal in government contracting and almost nothing tracks it properly.

Book a demo All solutions
Award and funded held separatelyCommitment visible before invoices
The distinction that matters

Awarded is not funded

Under incremental funding an award can be agreed at one figure and funded at another, and the gap between them is where finance surprises come from.

Finance leaders • Walkthrough

Awarded is not funded

Under incremental funding an award can be agreed at one figure and funded at another, and the gap between them is where finance surprises come from.

  • The funding gap is visible rather than discovered
  • Commitment is visible before invoices arrive
  • Detail and totals both available
ProcureAudit The funding gap is visible rather than discovered
Outcome 01

The funding gap is visible rather than discovered

Holding award and funded amounts as separate figures on each modification means the difference is something you can see at any point rather than reconstruct.

What that meansNo discovery that a modification was underfunded at the moment it becomes urgent.
ProcureAudit Commitment is visible before invoices arrive
Outcome 02

Commitment is visible before invoices arrive

An award placed is money committed. Seeing only invoiced actuals makes a budget look healthier than it is for as long as the invoicing lag lasts.

What that meansA budget picture that reflects decisions rather than paperwork timing.
ProcureAudit Detail and totals both available
Outcome 03

Detail and totals both available

Each modification carries its own two figures and the totals follow from them, so there is no reconciliation between a summary and the records underneath it.

What that meansOne set of numbers rather than a spreadsheet that disagrees with the system.
Traditional handling against this approach

How funding usually gets tracked

Most finance teams track this somewhere. The difficulty is that the somewhere is rarely connected to the award record.

Book a demo
ProcureAudit Merged into one
The challenge

Merged into one

Award and funded amounts get recorded as a single number, which works until incremental funding means they differ and nobody can say by how much.

Figures heldOne
GapUnknown
ReconstructionManual
ProcureAudit Held separately
With ProcureAudit

Held separately

Both figures sit on each modification, so the gap is a value you can read rather than a calculation somebody has to perform.

Figures heldTwo
GapVisible
ReconstructionNone
ProcureAudit Only actuals
The challenge

Only actuals

The budget shows what has been invoiced, so a quarter with a long invoicing lag looks considerably healthier than it actually is.

ShowsInvoiced
CommittedInvisible
AccuracyLagging
ProcureAudit Committed and actual
With ProcureAudit

Committed and actual

Awards placed show as committed immediately, so the budget reflects decisions rather than the timing of supplier paperwork.

ShowsBoth
CommittedVisible
AccuracyCurrent
ProcureAudit Aggregated upward
The challenge

Aggregated upward

Changes get folded into the parent award, so which modification is underfunded is a question requiring investigation.

TrackedIn aggregate
Per changeUnclear
InvestigationNeeded
ProcureAudit Tracked per change
With ProcureAudit

Tracked per change

Every modification carries its own award and funded figures, so the position is readable per change and in total.

TrackedPer modification
Per changeClear
InvestigationNot needed
ProcureAudit A monthly exercise
The challenge

A monthly exercise

A finance spreadsheet and the award records disagree, and reconciling them is recurring work nobody planned for.

SourcesTwo
AgreementPartial
EffortMonthly
ProcureAudit One source
With ProcureAudit

One source

The figures live on the award records, so summaries derive from them rather than being maintained alongside them.

SourcesOne
AgreementBy construction
EffortNone
Six numbers worth separating

Each answering a different question

Finance leaders • Walkthrough

Each answering a different question

What was agreed for this award or modification, independent of funding.

  • Award amount
  • Funded amount
  • The gap
ProcureAudit Award amount
01

Award amount

What was agreed for this award or modification, independent of funding.

ProcureAudit Funded amount
02

Funded amount

What money is actually behind it, which under incremental funding is often less.

ProcureAudit The gap
03

The gap

The difference, visible per modification rather than calculated when somebody asks.

ProcureAudit Committed spend
04

Committed spend

Awards placed but not yet invoiced, which actuals alone will not show you.

ProcureAudit Per modification totals
05

Per modification totals

Aggregated from the records rather than maintained separately.

ProcureAudit Progress against funding
06

Progress against funding

How far the work has gone relative to what has been funded for it.

Against the numbers

Where the funding picture goes quiet

ProcureAudit A modification is underfunded
01

A modification is underfunded

Visible on the record rather than discovered when the supplier asks about payment.

Learn more
ProcureAudit Quarter end approaches
02

Quarter end approaches

Committed spend visible alongside actuals rather than a budget that looks healthier than it is.

Learn more
ProcureAudit A funding review
03

A funding review

Award against funded readable per modification without a reconciliation exercise first.

Learn more
ProcureAudit A program manager asks about headroom
04

A program manager asks about headroom

Answered from the record rather than from a spreadsheet that may be a week out of date.

Learn more
ProcureAudit A value threshold is crossed
05

A value threshold is crossed

Finance is routed the phase automatically because the rule fires on the award amount.

Learn more
ProcureAudit A cost belongs to two awards
06

A cost belongs to two awards

Split at the request with the basis recorded rather than reallocated at month end.

Learn more
FAQ

Questions from finance leaders

What is the difference between award and funded amounts?
The award is what was agreed. The funded amount is what money is actually behind it, which under incremental funding is frequently less. Holding both means the gap is visible rather than reconstructed.
Why track them per modification?
Because a blended figure across a whole award hides which change is underfunded. Two modifications in very different positions produce the same average as two in the same position.
Can we see committed spend before invoices arrive?
Yes. An award placed shows as committed immediately, so the budget reflects decisions rather than the timing of supplier invoicing.
Does this replace our finance system?
No. It holds the award and funding position against the purchasing record. Ledger, payments and statutory reporting stay in your finance system.
Do we still need a reconciliation spreadsheet?
That is usually the first thing that goes. The figures live on the award records and totals derive from them, so there are not two sources to reconcile.
Can finance review specific phases?
Yes. Reviewers are assigned per phase, so finance can be named on the phases where value is the question rather than reviewing whole awards.
How does this help at a funding review?
Award against funded is readable per modification and in aggregate without preparing anything, so the review starts from the position rather than from an assembly exercise.
More solutions

Other sectors and roles worth reading

ProcureAudit Compliance officers
SOLUTION

Compliance officers

Checking a team you cannot watch transaction by transaction.

Learn more
ProcureAudit Program managers
SOLUTION

Program managers

Subcontract progress across a program without chasing individuals.

Learn more
ProcureAudit Healthcare and life sciences
SOLUTION

Healthcare and life sciences

Federally funded purchasing where money carries conditions.

Learn more

Bring an award with incremental funding

We will show what holding award and funded amounts separately would have made visible, and when.

Book a demo