Undistributed Budget (UB)

Quick definition: Undistributed Budget (UB) is budget authorized to the contract, and so part of the Contract Budget Base, that is held temporarily until it can be distributed to Control Accounts or Summary Level Planning Packages (SLPPs).

UB is typically needed when a contract change increases the Negotiated Contract Cost (NCC) and there isn't time to plan the added budget into Control Accounts or SLPPs in the current reporting cycle. That budget has to go somewhere so everything is accounted for, so it's held temporarily in UB. It can't stay there indefinitely. Most organizations require UB to be distributed within one or two accounting periods.

What this means for you

UB lets a project capture authorized budget immediately, rather than delaying recognition of work until detailed planning is finished, while still flagging it as not-yet-planned. A large or growing UB balance is often watched closely, since it can signal that planning is falling behind authorization.

See also

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