What is the primary function of Funds Management in contrast to cost planning?

The primary function of Funds Management is to allocate actual funds to projects. This aspect of Funds Management ensures that the financial resources are not only planned but also confirmed and available for executing projects. It focuses on the actual availability of funds, allowing project managers to understand how much money can be accessed and spent on specific initiatives.

In contrast, cost planning is primarily concerned with estimating project costs before expenditures occur. While cost planning is essential, it does not address the real-time financing aspect; it merely forecasts what the costs might be.

The ability to make flexible budget adjustments refers more to the reallocation of planned budgets rather than the actual management of funds. Tracking historical financial data, while a crucial part of financial management, does not define the core responsibility of Funds Management, which is centered around current funding availability and allocation. Thus, the emphasis on real funds ensures that projects are financially viable and can proceed as planned.