What is the Funding Sources tool and how does it Help Manage Project Funding?

Funding Sources is a company level financial governance tool in Procore that tracks capital from its origin down to individual commitment line items. It replaces manual spreadsheets by providing centralized oversight of capital allocations, cost-split rules, and available project balances. This enables organizations to maintain complete visibility and accountability for every dollar spent across their portfolio.

The Funding Sources tool provides centralized financial governance by connecting bonds, grants, loans, and other funding types directly to the projects and line items they support. Using this tool provides the following core benefits:

• Trace Capital to the Line Item: Connect funding sources directly to specific project commitment line items to maintain an accurate audit trail.

• Control Project Allocations: Distribute capital across projects and programs before work begins to ensure funds are not overextended.

• Automate Compliance Rules: Define percentage-based funding rules to automatically split costs across multiple funding sources when objects are approved.

• Track Real Time Balances: Monitor live balance drawdowns across Allocated, Appropriated, and Committed stages without manual reconciliation.

• Fund Management: Create and manage a portfolio level register of all funding sources at the company level. Set total dollar amounts, attach supporting documentation, track live balance columns, and update status. Note: Funding sources cannot be deleted; they must be marked Inactive to preserve balance history.

• Project Allocation: Allocate portions of a fund to active projects. Allocations set the spending ceiling for each project and make the fund visible within the project level Funding Sources tab.

• Funding Rules: Create percentage based split rules (up to 100 rules per project) on the Funding Rules tab within the project's Prime Contracts tool. Rule percentages support up to two decimal places and must sum to exactly 100%.

• Schedule of Values (SOV) Integration: Apply active funding rules to line items on contract and commitment SOVs. When a financial object is approved, line item values automatically roll up to the fund's balance columns:

  • Approving a Funding Contract (Prime Contract) or PCCO updates the fund's Total Appropriated balance.

  • Approving a Commitment or CCO updates the fund's Total Committed balance.