Subject: GUIDANCE ON THE COMPLETION OF REVISED REVENUE BUSINESS CASE TEMPLATES AND POST PROJECT EVALUATION For Action by: Chief Executive of HSC Bodies and NIFRS Directors of Finance of HSC Bodies and NIFRS Summary of Contents: This circular provides guidance on the completion of revised revenue business case templates and PPE for the Arms Length Bodies of DHSSPS. Circular Reference: HSC (F) 34/2013 Date of Issue: 6 th June 2013 Related documents: DAO(DFP) 06/12 FD(DFP) 20/09 - Northern Ireland Guide to Economic Appraisal and Evaluation (NIGEAE) Superseded Documents: Enquiries: Any enquiries about the contents of this Circular should be addressed to: Catriona O Connor Finance Policy, Accountability & Counter Fraud Unit DHSSPS Room D3 Castle Buildings Stormont Estate Belfast BT4 3SQ Status of Contents: Action Implementation: Immediate Tel: 028 9076 5696 Fax: 028 9052 0232 Email Catriona.O Connor@dhsspsni.gov.uk
GUIDANCE ON THE COMPLETION OF REVISED REVENUE BUSINESS CASE TEMPLATES AND POST PROJECT EVALUATION Introduction 1. The purpose of this circular is to draw the attention of Department s Arm s Length Bodies (i.e. Health and Social Care (HSC) bodies and NIFRS) to the following revised templates: Revenue Business Cases; and Post Project Evaluation (PPE) Economic Appraisal 2. FD(DFP)20/09 draws departments attention to the Northern Ireland Guide to Expenditure Appraisal and Evaluation (NIGEAE), which contains DFP s core guidance on the appraisal, evaluation, approval and management of policies, programmes and projects. 3. The principles of appraisal should be applied, with proportionate effort, to every proposal for spending or saving public money, or proportionate changes in the use of public sector resources. For example, appraisal must be applied irrespective of whether the relevant public expenditure or resources: involve capital or current spending, or both; are large or small; are above or below delegated limits. 4. Appraisal is a systematic process for examining alternative uses of resources. It is designed to assist in defining problems and finding the solutions which offer the best value for money. It is a way of thinking expenditure proposals through, right from the emergence of the need for a project through its implementation, to postproject evaluation. It is the established vehicle for planning and approving
projects and other expenditures. Good appraisal leads to better decisions and use of resources. It facilitates good project management and project evaluation. 5. Appraisal is not optional; it is an essential part of good financial management, which is vital to decision-making and crucial to accountability. But it must also be proportionate. 6. It is important to begin applying appraisal early in the gestation of any proposal which has expenditure or resource implications. The justification for incurring any expenditure at all should be considered. Appraisal should be applied from the emergence of a need right through to the recommendation of the most costeffective course of action. It should not be regarded merely as the means to refine the details of a predetermined option. Revenue Business Case Templates 7. A working group consisting of senior finance representatives from across the Department and HSC was set up to examine the processes in place for the preparation and approval of business cases. The group developed a new set of business case templates for revenue expenditure and these were agreed with DFP. 8. The revised templates have different thresholds for expenditure, and have been developed in line with the requirements of NIGEAE, with proportionality in mind. 9. The revised templates, together with guidance on when and how to complete a business case, are attached as follows: Revenue Business Case Proforma (Annex A) Revenue expenditure up to 50k (Annex B) Revenue expenditure greater than 50k up to 250k (Annex C); and Revenue expenditure greater than 250k up to 1m (Annex D).
10. The attached templates should be completed for the following types of expenditure for the total life of the project/service: Policy and Programme Development; Significant Expansion to Existing Services; and New Expenditure. 11. NB for normal recurrent / maintaining existing services expenditure, a brief justification is required and template does not need to be completed; although recurrent expenditure does not warrant the perpetual production of business cases, appraisals are required for all new procurements/ contracts in line with procurement practice. There must, however, for any expenditure, always be evidence available to justify that options have been considered and the spend can be justified as representing the most optimum solution that provides value for money. When it comes to small scale and/or simple decisions in the main all that is required would be small scale and simple documentation. You may find it helpful to refer to the NIGEAE guidance on The Appraisal and Evaluation of Small Expenditure at: http://www.dfpni.gov.uk/index/finance/eag/eag-appraisal-of-smallexpenditures.htm#smallexps. Post Project Evaluations 12. FD(DFP)20/09 sets out the requirement for the completion of Post Project Evaluations (PPEs). DFP is placing a greater emphasis on the completion of PPEs, and expects all projects to be subject to proper monitoring and control measures including PPEs for all projects, both above and below delegated limits. Such measures can help ensure good VFM by identifying difficulties, preventing the repetition of mistakes, revealing positive points and in particular it is an essential part of PPEs that lessons which may be of use in other projects and/or other Departments are identified and shared.
13. Every appraisal (or business case) of any substance should indicate how the proposals concerned will be evaluated after completion and how the results of the evaluation will be disseminated (i.e. shared with colleagues and CoPE). 14. In general, evaluation reports should summarise whether, and if so, why the outturn differed from that foreseen in the appraisal; how effective the activity was in achieving its objectives, and why; the cost-effectiveness of the activity; and what the results imply for future management or policy decisions 15. A revised PPE template has also been developed by the working group at Annex E. Revenue Business Case Database 16. A further recommendation made by the Working Group was that all HSC bodies and Core Department should develop an internal database to record all revenue expenditure business cases submitted each year. It is therefore suggested that you maintain a list of all revenue expenditure appraisals within your business area and this will be used as a sample base for test drilling 2013/14 onwards. Action 17. Against this background, it is therefore recommended that bring this circular to the attention of the appropriate staff within your organisation, noting all action points and documents included within Annexes A E. 18. The revised templates at Annexes A-E should be adopted with immediate effect.
Enquiries 19. Should you have any queries please contact Catriona O Connor on 02890 765696 or Catriona.O Connor@dhsspsni.gov.uk. PAULA SHEARER Finance Policy, Accountability and Counter Fraud Unit
Annex A REVENUE BUSINESS CASE PROFORMA COVER (To be submitted with every business case) Name of organisation Project Title Total Cost Start date Completion date Complete this section if bid is for new funding BID FOR NEW FUNDING Is this bid for new funding (Y/N) How much total funding required? How much funding required per year? Is this funding to be made recurrent? Complete this section if funding available within existing allocation Funding available within existing allocation (Y/N) Total cost of proposal Cost of proposal per year Is this cost within recurrent allocation? Is this business case (a) Standard (b) Novel Contentious (d) Setting a precedent If yes to (b) or (c) or (d), requires Departmental & DFP approval Is Departmental / DFP approval required Y/N
Approvals & submissions Prepared by Name Printed (signed) Grade/ Title Date Approved by Name printed (signed) Grade / Title Date Insert more boxes if further approvals are required by officials Complete this section if Department / DFP approval required Date submitted to Department Department/ DFP approval (y/n) Date approved
Annex B BUSINESS CASE TEMPLATE REVENUE FUNDING up to 50,000 GUIDANCE NOTES This template should be completed for the following types of expenditure for the total life of the project/service: Policy and Programme Development; Significant Expansion to Existing Services; and New Expenditure. NB for normal recurrent/ maintaining existing services expenditure, a brief justification is required and template does not need to be completed; Although recurrent expenditure does not warrant the perpetual production of business cases, appraisals are required for all new procurements/ contracts in line with procurement practice. There must, however for any expenditure always be evidence available to justify that options have been considered and the spend can be justified as representing the most optimum solution that provides value for money. When it comes to small scale and/or simple decisions in the main all that is required would be small scale and simple documentation. You may find it helpful to refer to the NIGEAE guidance on The Appraisal and Evaluation of Small Expenditure on http://www.dfpni.gov.uk/index/finance/eag/eag-appraisal-of-small-expenditures.htm#smallexps. GUIDANCE NOTES This investment proposal template should be prepared in line with NIGEAE Guidance - see http://www.dfpni.gov.uk/index/finance/eag.htm. Template is to be used for all revenue expenditures up to 50k. Please complete this template with proportional effort, i.e. detail provided should be commensurate with the size of the bid. This is a general template and that the boxes and tables may be enlarged or modified to suit the particulars of the case in hand. When necessary, refer to the NIGEAE website Section 1: Strategic Context and Need: Briefly explain the background to the proposal including its relevance to your organisation/ Gov /or Departmental strategic aims and policy objectives. Identify the key stakeholders and explain their commitment and any outstanding issues. Explain the nature of the needs or demands that are to be addressed, and detail any deficiencies in existing service provision.
Section 2: Objectives: Objectives must be stated so that it is clear what proposals are intended to achieve Explain and list the project objectives in specific measureable terms. Specify targets that are SMART i.e. Specific,Measureable, Achievable, Relevant and Time dependent Include implementation targets/ outcomes/ outputs if possible e.g. dates, milestones, etc e.g. Achieve X outputs by 31 March 20XX, XX staff in place by 31 March 20XX etc. Section 3: Identify and Describe Options: Identify and briefly describe all options, including status quo. Status quo means to continue with existing arrangements or maintain services as close as possible to existing levels. Requirement is that at least 2 options considered including status quo. Identify and evaluate the benefits of all the options considered. Section 4: Project Costs: Provide details of total cost of project over total life of the project for all options. Provide details of any assumptions made in formulating costs. State if funding is recurrent funding going forward or is this a one-off project with a life of XX years? Section 5: Non-Monetary Benefits Briefly list and describe the benefits of preferred option (benefits will relate closely to the objectives) Section 6: Project Risks Identify and describe the risks that the project may face. Section 7: Preferred option and Explanation for Selection Identify which option is preferred and why, in terms of assumptions, costs, non monetary benefits, risks, constraints and other factors etc Section 8: Monitoring and Evaluation Indicate how the proposed option will be monitored during and after implementation. Indicate factors to be evaluated, when, how and by whom. The following additional information is required for Trusts submitting business cases to HSCB only. Section 9: Changes to SBA activity for the preferred option The purpose of this section is to record the current baseline activity in appropriate currencies and to specify the additional activity that will be provided for this investment, and the new SBA volumes. If approved the additional activity will be added to the volumes in the organisation s SBA.
The associated baseline costs and additional costs must be shown in the financial appendix. Examples: Approval of a stationary budget is deemed suitable justification for expenditure on a stationary order and therefore you would not be required to complete this template. This is considered to be business as usual and therefore you would not be required to complete a business case for such items that are covered within approved budgets. The need for a business case would arise only if there was a change in policy or a contract was coming to an end. For example a move from oil to gas heating or something to that effect then there would be a need to examine the options.
BUSINESS CASE TEMPLATE REVENUE FUNDING up to 50,000 SECTION 1: STRATEGIC CONTEXT AND NEED SECTION 2: OBJECTIVES SECTION 3: LIST AND DESCRIBE AT LEAST 2 OPTIONS (INCLUDING STATUS QUO) OPTION NO. BRIEF DESCRIPTION OF OPTION 1 ( Status quo) 2 3 (if applicable) SECTION 4: PROJECT COSTS Option Year 1 ( 000) 1 Status Quo continue with existing arrangements 2 Year 2 ( 000) Year 3 ( 000) Total ( 000) 3
[Cost Assumptions - expand as appropriate] SECTION 5: NON-MONETARY BENEFITS SECTION 6: PROJECT RISKS SECTION 7: PREFERRED OPTION AND EXPLANATION FOR SELECTION SECTION 8: MONITORING AND EVALUATION Who will manage the implementation? Who will monitor and evaluate the outcomes? When will this take place?
SECTION 9: ACTIVITY OUTCOMES (TRUSTS ONLY) Baseline Additional activity New Baseline Activity Specifiy activity, e.g. IP, DC OPN, OPR, Contacts etc IP DC OPN OPR
Annex C BUSINESS CASE TEMPLATE REVENUE FUNDING 50k - 250k GUIDANCE NOTES This template should be completed for the following types of expenditure for the total life of the project/service: Policy and Programme Development; Significant Expansion to Existing Services; and New Expenditure. NB for normal recurrent / maintaining existing services expenditure, a brief justification is required and template does not need to be completed; Although recurrent expenditure does not warrant the perpetual production of business cases, appraisals are required for all new procurements/ contracts in line with procurement practice. There must, however for any expenditure always be evidence available to justify that options have been considered and the spend can be justified as representing the most optimum solution that provides value for money. When it comes to small scale and/or simple decisions in the main all that is required would be small scale and simple documentation. You may find it helpful to refer to the NIGEAE guidance on The Appraisal and Evaluation of Small Expenditure on http://www.dfpni.gov.uk/index/finance/eag/eag-appraisal-of-small-expenditures.htm#smallexps. GUIDANCE NOTES This investment proposal template should be prepared in line with NIGEAE Guidance - see http://www.dfpni.gov.uk/index/finance/eag.htm. Template is to be used for all revenue expenditures greater than 50k up to 250k. Please complete this template with proportional effort, i.e. detail provided should be commensurate with the size of the bid. This is a general template and that the boxes and tables may be enlarged or modified to suit the particulars of the case in hand. When necessary, refer to the NIGEAE website Section 1: Strategic Context and Need: Briefly explain the background to the proposal including its relevance to your organisation/ Gov /or Departmental strategic aims and policy objectives. Identify the key stakeholders and explain their commitment and any outstanding issues. As specifically as possible, explain the nature of the needs or demands that are to be addressed, and detail any deficiencies in existing service provision. Include suitable quantification of needs/demands/deficiencies where possible.
Section 2 (a): Objectives: Objectives must be stated so that it is clear what proposals are intended to achieve Explain and list the project objectives in specific measureable terms. Specify targets that are SMART i.e. Specific, Measureable, Achievable, Relevant and Time dependent. It is particularly important that objectives are measurable - otherwise it will not be possible to gauge whether or how well they have been achieved. Include implementation targets / outcomes/ outputs if possible e.g. dates, milestones, etc e.g. Achieve X outputs by 31 March 20XX, XX staff in place by 31 March 20XX etc. Section 2 (b): Constraints: State the key constraints on the project, e.g. technical issues, timing issues, legal requirements, professional standards, planning constraints, policy commitments and so on. Section 3: Identify and Describe Options: Identify and briefly describe all options, including status quo. Status quo means to continue with existing arrangements or maintain services as close as possible to existing levels. Requirement is that at least 2 options considered including status quo, giving reasons if only 1 alternative option other than status quo considered. Identify and evaluate the benefits of all the options considered. Section 4: Project Costs: Provide details of total cost of project over total life of the project for all options. Provide details of any assumptions made in formulating costs. State if funding is recurrent funding going forward or is this a one-off project with a life of XX years? NPV analysis should be included for revenue projects spanning more than 5 years, or those revenue projects that have differing cash flows over the time period. Decision to include should be made on a case by case basis. If NPV required use table per template for larger business cases. Sensitivity - should be included for projects spanning more than 5 years, or where a change in a variant would significantly change the outcome. Decision to include should be made on a case by case basis. Section 5: Non-Monetary Benefits: Briefly list and describe the benefits of preferred option (benefits will relate closely to the objectives) Section 6: Project Risks & Uncertainities Identify and describe the risks that the project may face. Explain how these compare under the various options.
Section 7: Preferred option and Explanation for Selection: Identify which option is preferred and why, in terms of assumptions, costs, non monetary benefits, risks, constraints and other factors etc Section 8: Affordability and Funding Requirements: Detail what funding is available / how it will be funded and whether it will be recurrent funding. Section 9: Management Arrangements: Describe from start to finish of project who will be responsible at each stage eg planning timetable, obtaining finance, procurement, legal issues, accommodation staff, consultancy, TUC issues, security, training, documentation of project progress etc. Section 10: Monitoring and Evaluation: Indicate how the proposed option will be monitored during and after implementation. Indicate factors to be evaluated, when, how and by whom. The following additional information is required for Trusts submitting business cases to HSCB only. Section 11: Changes to SBA activity for the preferred option The purpose of this section is to record the current baseline activity in appropriate currencies and to specify the additional activity that will be provided for this investment, and the new SBA volumes. If approved the additional activity will be added to the volumes in the organisation s SBA. The associated baseline costs and additional costs must be shown in the financial appendix. Section 12: Benchmarking evidence to support preferred option. The purpose of this section is to provide evidence that the preferred option compares favourably to Trust specialty costs, Trust HRGs, Reference costs, PbR tariffs, Best practise tariffs, Community indicators or other recognised benchmarks Examples: Approval of a stationary budget is deemed suitable justification for expenditure on a stationary order and therefore you would not be required to complete this template. This is
considered to be business as usual and therefore you would not be required to complete a business case for such items that are covered within approved budgets. The need for a business case would arise only if there was a change in policy or a contract was coming to an end. For example a move from oil to gas heating or something to that effect then there would be a need to examine the options.
BUSINESS CASE TEMPLATE REVENUE FUNDING 50k - 250k SECTION 1: PROJECT BACKGROUND, STRATEGIC CONTEXT & NEED SECTION 2 (a): OBJECTIVES 1. Project Objectives Measurable Targets 2. 3. [add more objectives as appropriate] SECTION 2 (b) : CONSTRAINTS SECTION 3: IDENTIFY AND DESCRIBE OPTIONS OPTION NO. BRIEF DESCRIPTION OF OPTION 1 Status Quo - continue with existing arrangements 2 3 (if applicable)
SECTION 4: PROJECT COSTS 1 Option Year 1 ( 000) Year 2 ( 000) Year 3 ( 000) Total ( 000) 2 3 COST ASSUMPTIONS: SECTION 5: NON-MONETARY BENEFITS SECTION 6: PROJECT RISKS & UNCERTAINITIES SECTION 7: PREFERRED OPTION AND EXPLANATION FOR SELECTION
SECTION 8: AFFORDABILITY AND FUNDING REQUIREMENTS AFFORDABILITY STATEMENT Required Capital required Revenue required Existing budget : Capital Revenue Additional Allocation Required: Capital Revenue Yr 0 000 s Yr 1 000 s Yr 2 000 s Yr 3 000 s Totals 000 s AFFORDABILITY ASSUMPTIONS SECTION 9: MANAGEMENT ARRANGEMENTS SECTION 10: MONITORING AND EVALUATION Who will manage the implementation? Who will monitor and evaluate the outcomes? What other factors will be monitored and evaluated? When will this take place?
SECTION 9: ACTIVITY OUTCOMES (TRUSTS ONLY) Baseline Additional activity New Baseline Activity Specifiy activity, e.g. IP, DC OPN, OPR, Contacts etc IP DC OPN OPR SECTION 12: BENCHMARKING EVIDENCE TO SUPPORT PREFERRED OPTION [expand as necessary]
Annex D BUSINESS CASE TEMPLATE REVENUE FUNDING 250k - 1m GUIDANCE NOTES This template should be completed for the following types of expenditure for the total life of the project/service: Policy and Programme Development; Significant Expansion to Existing Services; and New Expenditure. NB for normal recurrent/ maintaining existing services expenditure, a brief justification is required and template does not need to be completed; Although recurrent expenditure does not warrant the perpetual production of business cases, appraisals are required for all new procurements/ contracts in line with procurement practice. There must, however for any expenditure always be evidence available to justify that options have been considered and the spend can be justified as representing the most optimum solution that provides value for money. When it comes to small scale and/or simple decisions in the main all that is required would be small scale and simple documentation. You may find it helpful to refer to the NIGEAE guidance on The Appraisal and Evaluation of Small Expenditure on http://www.dfpni.gov.uk/index/finance/eag/eag-appraisal-of-smallexpenditures.htm#smallexps. GUIDANCE NOTES This investment proposal template should be prepared in line with the NIGEAE Guidance - see http://www.dfpni.gov.uk/index/finance/eag.htm. Template is to be used for all revenue expenditures > 250k up to 1m. It can be used as a basis for expenditures > 1m, but more detail/ analysis will be required commensurate with the size of the bid. Please refer to NIGEAE when completing business case > 1m Please complete this template with proportional effort, i.e. detail provided should be commensurate with the size of the bid. This is a general template and that the boxes and tables may be enlarged or modified to suit the particulars of the case in hand. When necessary, refer to the NIGEAE website Section 1 (a) : Project Background and Strategic Context Explain the background to the proposal including its relevance to your organisation/ NI Government or Departmental strategic aims and policy objectives. Identify the key stakeholders and explain their commitment and any outstanding issues.
Section 1 (b): Need As specifically as possible, explain the nature of the needs or demands that are to be addressed, and detail any deficiencies in existing service provision. Include suitable quantification of needs/demands/deficiencies where possible. Provide historical service activity (previous years), for eg, hospital caseload, evidence of service/equipment failure, service risk rating etc., along with service projections for the next 3 years where appropriate. Section 2 (a) : State Objectives Objectives must be stated so that it is clear what proposals are intended to achieve. These should be consistent with statements of government policy, departmental or agency objectives, departmental Public Service Agreements Specify targets that are SMART i.e. Specific Measureable Achievable, Relevant and Time dependent. It is particularly important that objectives are measurable - otherwise it will not be possible to gauge whether or how well they have been achieved. Include quantifiable targets/ outcomes/ outputs where possible e.g. Achieve X outputs by 31 March 20XX, XX staff in place by 31 March 20XX etc. Where there are numerous objectives, or there is a potential conflict between objectives, it is helpful to indicate their relative priority, both to inform option assessment and to assist in post project evaluation. Section 2 (b) : State Constraints Identify any likely constraints to the project e.g. technical issues, timing issues, legal requirements, professional standards, planning constraints, policy commitments and so on. Section 3: Identify and Shortlist the Options Consider alternative ways to meet the objectives e.g. variations in scale, quality, technique, location, timing etc. Start with an initial long list of options and sift them to provide a shortlist. Record all the options considered and the reasons for rejecting those not shortlisted. The shortlist of options should include a baseline Status Quo or Do Minimum option and a suitable number of alternative Do Something options (usually at least two). The status quo should normally be short-listed and appraised even where it is not considered to be a realistic option Its function is to provide a benchmark so that the VFM of the alternative 'do something' options may be judged by reference to current service provision. The exception to this requirement is where the appraisal concerns the introduction of a wholly new service, that is, where there is no existing provision to appraise.
Section 4: Monetary Costs and Benefits of Options Appraisals should include all the costs and benefits to Northern Ireland arising from the project, not just those to a particular organisation or sector e.g. all costs and benefits to the public, private and third sectors should be included. Costs and benefits should be valued in economic cost terms, which are generally reflected by using current market prices. All the assets and other resources employed by each option should be costed, even if they have already been purchased. This is because they have an opportunity cost value i.e. if not used in this project they could be put to an alternative use. Calculate the Net Present Value (NPV) for each option where cash flows of options differ over the time period or when a project spans greater than 5 years. However decision whether or not include NPV should be considered on a case by case basis. Use the NPC spreadsheet at the NIGEAE website and append the NPC calculation for each option to the pro forma. In the simplest cases, the table in Section 4 may be used instead. Create a table for each option, adjusting the no. of columns to reflect the years of the project s life. Treat the current financial year as Year 0. Set out the expected annual revenue costs for each option. Express the figures in real terms i.e. held constant at today s prices. The checklist of typical costs at the NIGEAE website should help identify relevant costs. Financial savings arising from an option will be reflected in its lower costs compared to the Status Quo. Do not double count by also including them separately as benefits. Other monetised benefits may be taken into account but are likely to be rare in small expenditure cases. Most benefits will be covered in the non-monetary Section 5 below. For particularly uncertain cost assumptions, consider using sensitivity analysis to illustrate how NPCs and option rankings are affected by varying these assumptions. For more in-depth guidance, see Step 5 and Step 8 of NIGEAE. Section 5: Non-Monetary Costs and Benefits List and describe the benefits of each option (benefits will relate closely to the objectives), Either the weighted scoring method can be used or impact assessment, depending on which is appropriate. The weighted scoring method. This involves assigning numerical weights to each factor to reflect its comparative importance; scoring the performance of each option against each factor on a numerical scale; and calculating a 'weighted score' for each option. Detailed guidance on the use of this approach is given in The Weighting and Scoring Method. Impact Assessment. This method tabulates the impact of each option upon each non-monetary factor in an impact statement or performance matrix. It involves
assessing the impact of each option upon each relevant objective or assessment criterion. The presentation is often in tabular form, with the cells of the table containing suitable quantitative impact measures or indicators; and/or qualitative impact analysis. An accompanying commentary summarising the main trade-offs and other features of the analysis should generally be provided. Explain rationale for weighting and scoring. Section 6: Assess Risks and Uncertainties Identify and describe the risks that the project may face. Explain how these compare under the various options using the table below. Identify measures to ensure that each risk is appropriately managed and mitigated. Explain any contingency allowances included for risks in the option costings.. For further guidance see Step 6 of NIGEAE. Section 7: Preferred Option and explanation for selection Summarise the main differences between the options e.g. in terms of key assumptions, NPCs, non-monetary impacts, risks and other factors. Identify which option is preferred and explain why. Section 8: Assess Affordability and Funding Arrangements Set out the annual capital and resource requirements for the preferred option. Figures should allow for inflation, contingencies and (where relevant) optimism bias. Resource figures should include appropriate allowance for depreciation/impairment. Identify expected sources of funding and the degree to which each funder is committed. Section 9: Project Management Explain the proposed project management structure (e.g. use of PRINCE2), key management personnel and project timetable. Where relevant, indicate the proposed approach to procurement. Consider provision for benefits management and realisation, including e.g. documentation of Benefit Profiles using the templates at the Successful Delivery NI website. A benefits profile is attached at Annex B Identify any significant management issues e.g. legal, contractual, accommodation, staff or TUS issues. Is any external consultancy support required? If so, it must be supported by a separate business case as per FD(DFP)07/12 and section 5 of the accompanying guidance note. Section 10: Monitoring, and Evaluation Arrangements Indicate arrangements for regular monitoring of the project s progress.
State proposed evaluation arrangements e.g. when it will happen, who will do it, what factors will be evaluated? For further guidance see para 2.9.15 at Step 9 of NIGEAE Appendix A: Benefits Profile Benefit Owner: This is the name of the actual benefit owner, not the person responsible for reporting on it. This might be the SRO, but could also be someone else senior in the organisation; Baseline Value: The Baseline value can be estimated at OBC stage (This should be firmed up and accurate by the time the business case reaches FBC if applicable); Target Value: Insert the target value you hope to attain for the benefit Measurement: Explain how and when you hope to measure and report on the benefit; Timing: Details of how often you intend to report on the realisation of the benefits; Responsibility: Who has responsibility for measuring and reporting on the benefit. For large expenditure decisions were FBC is required, i.e. > 1m, please complete the benefit profile as detailed at the following link: http://www.dfpni.gov.uk/benefit_profile_template.doc
BUSINESS CASE TEMPLATE REVENUE FUNDING 250k - 1m SECTION 1(a): PROJECT BACKGROUND AND STRATEGIC CONTEXT SECTION 1(b): DEMONSTRATE THE NEED FOR THE PROJECT
SECTION 2(a): OBJECTIVES Project Objectives Measurable Targets 1. 1.1 1.2 2. 2.1 2.2 3. [add more objectives as appropriate] 3.1 3.2 SECTION 2(b): CONSTRAINTS Constraints 1. Measures to address constraints 2. 3. [add more constraints as appropriate] SECTION 3: IDENTIFY AND SHORTLIST OPTIONS Option Number/ Description Shortlisted (S) or Rejected (R) Reason for Rejection 1. Status Quo - continue with existing arrangements S 2. 3. 4. 5. (if applicable)
SECTION 4: MONETARY COSTS AND BENEFITS OF OPTIONS Option 1: Status Quo Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5.. Totals Capital Costs (a) Total Capital Cost Revenue Costs Include details (b) Total Revenue Cost (c) Total Cost = (a) + (b) (d) Disc Factor @ 3.5%pa 1.0000.9662.9335.9019.8714.8420 (e) NPC = (c) x (d) COST ASSUMPTIONS: (Expand as appropriate) SECTION 5: NON MONETARY COSTS AND BENEFITS Weighting method Non-Monetary Factor 1. 2. 3. etc Weighting (%) Score Option 1 Score Option 2 Score Option 3 Total 100%
Or Impact assessment Non-Monetary Factor Option 1 Option 2 Option 3 1. 2. 3. etc Rationale for weighting and scoring SECTION 6: ASSESS RISKS AND UNCERTAINTIES Risk Description Likely impact of Risk H/M/L Opt 1 Opt 2 Opt 3 Opt 4 State how the options compare and identify relevant risk management / mitigation measures 1. 2. 3. 4. Overall Risk (H/M/L):
SECTION 7: PREFERRED OPTION AND EXPLANATION FOR SELECTION SECTION 8: ASSESS AFFORDABILITY AND FUNDING ARRANGEMENTS Required: Capital Resource Existing Budget: Capital Resource Additional budget Required: Capital Resource Yr 0 000 s Yr 1 000 s Yr 2 000 s Yr 3 000 s Totals 000 s Affordability narrative [expand as necessary] SECTION 9: PROJECT MANAGEMENT (Please see Benefits Realisation Plan in Annex B) [expand as necessary]
SECTION 10: MONITORING AND EVALUATION [expand as necessary]
Revenue Expenditure 250k - 1m - APPENDIX A Benefit Profile (Small Projects) Signed off by: Date: Benefit Owner Benefit Baseline value Target Value Measurement Timing Responsibility
Annex E POST PROJECT EVALUATION GUIDANCE NOTES This Post-Project Evaluation (PPE) template should be prepared in line with NIGEAE Guidance see http://www.dfpni.gov.uk/coe_templates_-_post-project_review_v1.0.doc To be completed for all Revenue Business Cases Please complete this template with proportionate effort, i.e. detail provided should be commensurate with the size of the bid. This is a general template and the boxes and tables may be enlarged or modified to suit the particulars of the case in hand. When necessary, refer to the NIGEAE website The purpose of a PPE is to: Evaluate the effectiveness of a project in realising the proposed benefits as outlined in the Business Case; Compare planned costs and benefits with actual costs and benefits to allow an assessment of the project's overall value for money to be made; Identify particular aspects of the project which have affected benefits either positively or negatively; recommendations for future projects can then be derived; and Reveal opportunities for increasing the project's yield of benefits, whether they were planned or became apparent during or after implementation, and to recommend the actions required to achieve their maximisation. 1.0 Background Please provide a brief description of the project, its objectives, and an outline of its progress, identifying those who played major roles, e.g. SRO, Project Manager, Senior User. Please provide details of how the PPE has been carried out (i.e. methodology used to ascertain if objectives have been met) and record any constraints that were met in carrying out the PPE. Please provide details of when the project started, giving explanations for any lag. 2.0 Achievement of Objectives Please list objectives as set out in business case and advise how they have been achieved. Look at project outcomes and state how and why outcome(s) differed (if at all) from those set out in the business case and project plan.
3.0 Benefits and Outcomes Include a summary of how fully the claimed benefits/outcomes were realised. Any benefits which have emerged from the use of the system which were not predicted in the Business Case should be outlined. Include comment on whether the costing assumptions and estimates of targeted benefits made at the project's inception proved realistic; a comparison of estimated and actual cost savings and efficiency improvements. Any dis-benefits, expected or unexpected, should be outlined, along with an estimate of their impact on the business. 4.0 Value for Money Provide an assessment (based on achievement of objectives and any variances noted as per above) of whether the project represented good value for money. 5.0 Recommendations and Lessons Learned This section should include lessons to be learned, covering all aspects of the project which relate to the realisation of benefits. Lessons may refer to the identification, quantification or planning of benefits, to project management, to user monitoring and control of benefit onset etc. PPEs should be used to promote good practice and the results should be shared to ensure that key lessons are identified and disseminated; It should also identify actions which have the potential to increase the benefits to be reaped from the project. These recommendations should be based on consideration of how to enhance both expected and unexpected benefits, how to minimise the effects of dis-benefits, and how to develop further, if possible, the beneficial use of systems or services delivered. Any broader lessons which may be learnt from the project should be outlined, including problems encountered and how they were mitigated. If they are felt to be necessary, further monitoring, specific benefit reviews or full PPEs should be recommended. Recommendations for the circulation of the PPE report should be made. 6.0 Timeframe for completion PPE should be planned before project closure; It should be conducted 4 to 12 months after project closure, led by an individual independent of the Project Board and Project Team. Any reasons for delay in submission of a completed PPE should be clearly specified.
POST PROJECT EVALUATION Name of organisation Project Title Total Cost Start date Completion date PPE Due Date SECTION 1: INTRODUCTION Background (a brief description of the project and its objectives) Please give details of commencement of scheme, when staff were appointed and when full capacity was achieved. SECTION 2: ACHEIVEMENT OF OBJECTIVES Did this Investment meet objectives given in IPT? Please give details. How they were achieved? Objectives [add more objectives as appropriate]
SECTION 3: BENEFITS AND OUTCOMES Outcomes planned in original Business Case Actual Outcomes (Please comment on variances or delays etc.) [add more outcomes as appropriate] How were benefits and outcomes evidenced? Please give details of such. SECTION 4: VALUE FOR MONEY What methodology was used to assess quality and value for money of service provided? What were the conclusions? SECTION 5: RECOMMENDATIONS AND LESSONS LEARNED What problems were encountered during implementation of the project, and how where such resolved? What was learned, how has this been disseminated, and to whom? Please provide supporting evidence.