Hello all,
We with colleagues are currently trying to sort out whether the Reserve held at the Programme or Sub-portfolio level can be deemed the management reserve of the project?
We are a big organisation and there is a very large portfolio of multi-million projects. Some projects get closed and there is a budget left which is transferred to the Programme or Sub-portfolio Reserve.
Sub-portfolio may have a number of projects, say 15-20 projects, and the Sub-portfolio reserve has been accummulated as a result of closed projects if the actual total cost was less than the BAC.
If for example, an active project is short of money and the management decides to allocate the funds from Sub-portfolio reserve to the project. Can we call this sub-porfolio reserve a management reserve for projects or does a management reserve of a project has to be specific to that project and agreed in advance?