Method for Adjusting Current Appropriations under Irregular Funding Conditions
Method for Adjusting Current Appropriations under Irregular Funding Conditions

Summary/Abstract: The study suggests using the indicators that characterize the process of funding to equation the problem of adjusting current appropriations under irregular funding pattern. The principal assumption of the methodology is that the proportionality of the residual unpaid part of the limit for each project to be funded should be observed. This requirement is stipulated by practical considerations and explained by the necessity to implement a whole number of projects whose component parts are included into a large scale project (program). The methodology solves the problem of adjusting funds distribution between the projects to be funded based on the profiles that have been formed at the earlier stages of funding. However, for the first stage of funding, the retrospective distribution profiles are not available; therefore, the additional task has been set to solve the optimization problem of redistributing current fund allocations without taking into account the retrospective distribution profiles. The compromise principle is represented by the fair concession principle that solves the problem of multi-objectiveness in a radical way by applying the convolution of the set of criteria to obtain one integrated criterion. Practical applications of the developed indicators and methods have been illustrated by a number of examples.

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