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Distributed Budget

Distributed Budget

EVM Terms Reviewed by forProject Technology - updated Sep 2026
Quick definition: Distributed Budget is the sum of the budgets, direct and indirect, that have been allocated to Control Accounts and Summary Level Planning Packages through the Control Account planning and Work Authorization process.

Distributed Budget is the portion of the Performance Measurement Baseline that has been assigned to identified work and given an owner. Budget becomes distributed when it passes through Control Account planning and Work Authorization — it is not distributed simply because it has been earmarked. Its counterpart is Undistributed Budget, which is budget for identified work scope not yet allocated to a Control Account or Summary Level Planning Package. Together the two make up the Performance Measurement Baseline; adding Management Reserve gives the Total Allocated Budget.

Why it matters

The split between distributed and undistributed budget is a direct read on how far baseline planning has actually progressed. Budget sitting undistributed late in a program is a signal that work has been authorized without being planned in detail, which limits how much of the program can be measured with earned value at all.

Also known as
N/A
Used in
Performance Measurement Baseline composition; Control Account planning; Work Authorization

FAQ

What makes a budget "distributed"?
It has been allocated to a specific Control Account or Summary Level Planning Package through Control Account planning and Work Authorization. Budget that has been identified but not yet put through that process is Undistributed Budget.
Does Distributed Budget include indirect costs?
Yes. Control Account budgets carry both direct and indirect costs, so both are included.
Definition maintained by forProject Technology.
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