What is a Sources and Uses of Funds Report?

Sources and Uses of Funds Reports are considered essential monthly financial statements and are used by CFOs and controllers to provide and review monthly financials and budget variances. Some of the main functionality in this type of financial report is that it is parameter driven and the user can run it for any department and year/period. Typical columns in the report include: 1) Actual monthly results, 2) Budget, 3) Variance (amount), 4) Variance (percent), Actual Year-to-date (YTD), 5) Budget YTD, 6) YTD budget variance (amount), and 7) YTD budget variance (percent). The rows list revenues and expenses by account as well as sub-totals and Net Surplus/Deficit. You find an example of this type of financial report below.

Purpose of Sources and Uses of Funds Reports

Public Sector organizations use Sources and Uses of Funds Reports to give leaders an account level detail of actual performance versus budget, and enables users to drill down to transactions to answer questions without having to contact accounting to look up data for them. When used as part of good business practices in Accounting departments, a government entity can improve its strategic decisions and streamline financial reporting, and it can reduce the chances that lack of self-service or limited automated reporting slows down actionable decisions.

Example of a Sources and Uses of Funds Report

Here is an example of a Sources and Uses of Funds Report with variance analysis and drill-down.

Example of a Sources and Uses of Funds Report for Public Sector Organizations

Example of a Sources and Uses of Funds Report for Public Sector Organizations

You can find hundreds of additional examples here

Who Uses This Type of Financial report?

The typical users of this type of financial report are: CFOs, controllers, accountants, executives.

Other Reports Often Used in Conjunction with Sources and Uses of Funds Reports

Progressive Accounting departments sometimes use several different Sources and Uses of Funds Reports, along with cash flow statements, balance sheets, fund reports, financial dashboards, trial balances, annual budget models and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples