Funds when used in terms of the project management industry refers, in reality, to the same things that the term funds would refer to in any other capacity. It refers to the monies that are provided from one party to pay for the expenditures that may be made for a specific or particular purpose. For example, the financially responsible party within the umbrella of a large project organization will provide funds to the project team and or the project team leader which the project team or project team leader will then be responsible for managing and allocating in an appropriate manner. This includes paying out the salaries of team members in some cases, paying for the purchase and rental of a number of items and resources, as well as paying the fees that may be accrued by any consultants in commission of the activity. Funds after they have been assigned to a project may in fact be final. There may not be an opportunity for additional funds. However, in many cases if the funds are running low, there may be the opportunity for additional funds if they are available.
This term is defined in the 3rd and the 4th edition of the PMBOK.