Writing an Outline Business Case

Size: px
Start display at page:

Download "Writing an Outline Business Case"

Transcription

1 Dealing with Business Cases This guidance explains everything you need to do when producing a business case. Overview A business case is a formal document which explains the case for the investment of money or other resources in a project or programme of works. The business case is used to obtain management commitment and approval to invest resources, both money and people. It provides a framework for planning and managing the project as the ongoing viability of the project will be monitored against the approved business case. This guidance focuses on the production of the business case only guidance on how to manage a project and the Houses Gateway review process can be found under the project management section of the intranet. This guidance is intended for those managers that have either no or limited experience of preparing a business case. It is not anticipated that experienced, Prince 2 trained project managers will need to refer to this guidance other than to ensure all the key elements are included. Glossary FAQs Your role as a manager Types of Business Cases 1

2 Content of Business Cases Checklist Quick reference guides 2

3 Glossary As this guidance is intended for both Houses of Parliament, the terminology used to describe roles, offices and processes has been altered to reflect the position in either House. The following glossary indicates these generic phrases and who or what they represent. Terminology used House of Lords equivalent House of Commons equivalent Central finance department Finance Department Financial Management Directorate (FMD) Finance managers Finance Department Departmental finance managers Budget-holder/Director General Budget Holder Director General Finance Director Finance Director Director General (Resources) Accounting Officer Clerk of the Parliaments Clerk of the House PICT AB (formerly JBSB) PEB PICT Advisory Board Parliamentary Estates Board 3

4 FAQs Where do I go for help? Your finance manager should be your first contact for help. Why do we need business cases? The business case is used to obtain management commitment and approval to invest the Houses valuable resources: people and money, to complete a project. When do I need to write a business case? If you work in either Estates or PICT you will need to produce an outline business case to obtain programme funding regardless of the value of the project. Once outline approval has been given then the total value of your project will determine which type of business case you will need to produce. If you do not work in the PED or PICT then you need to write a business case if you: want to request additional budget, in excess of 50,000, for a scheme or initiative. For requests below 50,000, departments are expected to find the money from existing budgets. Please note, annual requests for changes to staffing levels are not covered by this guidance. Please refer to the staff planning guidance (HoC) or the Finance Department (HoL) in these cases already have sufficient budget but the total cost of your project is in excess of 150,000 you will need to complete a formal business case Please note that using business case disciplines are recommended even if your request does not need to be approved by the Finance Directors and are likely to be needed if the proposed expenditure could be deemed novel or contentious. What is the difference between an outline and a detailed business case? An outline business case is used at the start of the planning process to obtain senior management s approval in principle to a proposal. It focuses on WHY the project needs to be evaluated and can be a trigger for initial development funding where needed. 4

5 A detailed business is prepared after approval in principle is received and investigates HOW the proposal will be achieved. Who needs to approve my business case? Who approves your business case will depend on the total costs of the proposal and whether there is existing budgetary provision in place. Details of the approval process can be found in the annex to this guidance. How do I know which strategy board to submit my business case to? If your business case involves estates or ICT then you need to submit your outline business case to a strategy board. ICT related business cases are submitted to PICT-AB and estates related business cases are submitted to PEB. If your outline business case does not involve ICT or estates related work then you need to submit it directly to the Finance Directors. Please consult your finance managers for further guidance. What is the deadline for submitting a business case? ICT and estates outline business cases need to be submitted to: Strategy boards by June The Finance Directors by mid July (please note for estates, business cases need to be with the Finance Directors by June) All other outline business cases need to be submitted to the Finance Directors by mid July. When your outline business case has been approved, if the detailed business case requires approval by the Finance Directors then you need to submit your business case to them at least four months before the procurement procedure for the project concerned is due to start. If your business case only relates to one or other House then you should submit it to the Finance Director of that House. Most large projects are bi-cameral in nature and where that is the case you should submit your business case to both Finance Directors simultaneously, as they both need to approve it. Urgent business cases can be submitted to the Finance Directors as they arise. 5

6 What is strategic intent? Strategic intent is how, and to what extent, a project meets the corporate objectives or strategy. Providing evidence of this is an essential part of the outline business case. Who do I need to consult? Business cases can be very complex and cover a broad range of areas. For larger business cases that will involve a significant number of stakeholders, it is recommended that you consult as many people as possible to ensure that the business case is as comprehensive and robust as possible. Who needs to be consulted will depend on the project or programme: where a proportion or all of the costs will be shared between the Houses the proposal needs to be discussed and agreed with each House at an early stage. where there are building works or changes in accommodation, you need to discuss this with estates or accommodation services. changes to staff numbers which in turn will require changes to software and/or IT equipment need to be discussed with PICT procurement of software or hardware need to be discussed with PICT during the planning stage. I can t think of any options, what do I do? You need to be realistic about the options you propose perhaps you have already thought of alternatives but have already disregarded them? If this is the case you still need to document them as possible options but then you need to explain why you disregarded them including the do nothing option. Business cases offer senior management choices over whether, how, and when to invest. They need to be given a range of reasonable options from which to make a decision. I don t understand the financial appraisal template. Contact your finance manager for help. If they are not available or you do not have one, contact your finance department. 6

7 Business case - Your role as a manager Manager means the person who is responsible for producing the business case and managing the project. you must ensure consultation takes place with all concerned parties you must be realistic in your assumptions and achievements you must ensure compliance with all appropriate House regulations and procedures you must ensure the correct approvals are obtained before incurring any expenditure which is outside of your authority to incur you must allow sufficient time for preparation and approval Don t try to complete a business case independently, especially if you have never done one before. Consult as many people as possible to ensure all aspects have been covered. When completing any business case, it is important to be CLEAR, CONCISE and FOCUSED. Don t waffle! Your finance manager can help you with the production of a business case. However if you require more formal support, training seminars are provided by the Financial Management Directorate (HoC), and the Finance Department (HoL). 7

8 Types of Business cases What is a business case? Overview Programmes and projects Gateway Reviews Stages of producing a Business Case Business Planning Calendar Outline business case Detailed business cases 8

9 What is a business case? Key Points A business case is used to obtain management approval for projects requiring investment and to monitor ongoing viability. Overview When do I need to prepare a business case? You will need to prepare a business case if you want to request additional budget, in excess of 50,000, for a scheme or initiative. For requests below 50,000, departments are expected to find the money from existing budgets. You will need to discuss your requirements with your finance manager and Director General/ Budget-holder. already have sufficient budget but the total cost of your project is in excess of 150,000 you will need to complete a formal business case anyway have a contract that needs renewing whose value is expected to be in excess of 250,000 If you work in Estates, you need to produce a business case for: each standalone project and rolling maintenance programmes. Where the level of expenditure falls below these limits, it is recommended that business case disciplines are used. Please ask your finance manager for guidance. Full authorisation details can found towards the end of this guidance. 9

10 Who is responsible for preparing the business case? The client project manager is responsible for preparing the business case. For example, if your project is the purchase of software for your department, although PICT will be involved significantly in its procurement and testing, you will need to prepare the business case. What is the purpose of a business case? The business case is used to obtain management commitment and approval to invest Parliament s valuable resources: people and money to complete a project, even if money is already available. It provides a framework for planning the project or investment and is used to structure issues and actions in a logical fashion. The purpose of a business case is to: identify the desired outcomes (including possible savings) focus on deliverables (what users of the service want) examine methods of delivery (for example, compare life-time costs and relative effectiveness) identify scope of big changes (and manage big risks) consider cross-cutting dependencies (for example, another office) Once approved, the business case is then used to manage the progress of the project and monitor its ongoing viability. Some business cases can be completed quite easily whilst others will be complex and can take weeks or months to finish. The main types of business case are: outline business case. detailed business case 10

11 Programmes and projects The level of information and detail required for a business case will vary depending on whether the business case is for a stand-alone project or a programme which incorporates a number of projects. What is the difference between a project and a programme? A project A project has definite start and finish dates, clearly defined outputs and benefits, defined finances and other resources. It will have, depending on the size, an outline business case (for planning purposes or seed corn funding) followed by a detailed business case, eg. School Transport Subsidies and the Big Ben Exhibition. A programme The Office of Government Commerce (OGC) states that a programme business case, embraces the wider horizons of strategic benefits and outcomes from the programme s projects In the simplest terms, a programme is a group of projects managed together for added benefit. It is about managing groups of projects to achieve a desired outcome or benefit for an organisation, and the structuring and control of those projects so they deliver effectively as a group. A programme business case focuses on the strategic benefits and seeks management s commitment to adopt the recommended approach, eg. the cast iron roof programme and the Mechanical and Electrical Modernisation programme, both of which are long term programmes consisting of individual projects. 11

12 Gateway Reviews What is a gateway review? The OGC Gateway Process is the trademark name for the peer review process designed by the Office of Government Commerce, in which independent practitioners from outside the programme/project use their experience and expertise to examine the progress and likelihood of successful delivery of the programme or project. The reviews use a series of interviews, reviews and experience to provide an additional perspective on the issues facing the project team, and an external challenge to the robustness of plans and processes. When is a review needed? The use of gateway reviews will depend on the assessment of potential risks of the programme or project. For low risk proposals health checks based on Gateway criteria and checkpoints will be sufficient. For medium or high risk proposals, you will need to arrange for a Gateway review to be carried out in accordance with OGC brand principles. Timetable Gateway Reviews for high risk, large schemes can take up to 12 weeks to complete. You will need to take this into account when planning your project or programme. In summary: Stand alone project gateway review needs to be completed prior to the submission of the detailed business case Programme initial gateway review needs to be completed prior to the submission of the outline business case. Subsequent interim reviews may need to be completed prior to the submission of the detailed business case. Detailed guidance on the Gateway Review process can be found under the project management section of the intranet. 12

13 Stages of producing a business case All major business cases should be related, as far as possible, to the annual planning cycle in both Houses. This is particularly important where funding needs to be secured. In some cases this may not be possible, eg if one or both Houses identify an urgent, in-year need. The level of information and detail required for a business case will vary depending on the stage in the planning process. Stage one: Planning Stage in principle Before the summer recess (May to July) for the financial year starting the following April, business units (departments and offices) will need to start the business planning process. At this stage if you are, or will be, responsible for a potential project or investment that will deliver an improvement to the business; you will need to complete an outline business case. This can then be used to judge the merits of taking forward a bid for your proposal in preference to other possible bids. In the outline business case you will need to explain why the project needs to be considered. This is your opportunity to explain how the project or investment fits with the Houses corporate objectives and why the project needs to be completed sooner rather than later. You need to send your completed outline business case to your Director General (HoC) or Head of Office (HoL) so that they can submit all your departments business cases to the Finance Directors as part of the business planning process. The business cases need to be submitted to the Finance Directors before the summer recess and according to the timescale set out in the annual guidance by the relevant House so that the appropriate authorisations can be obtained prior to each House submitting its budget request for future years. For ICT and Estates related projects, these outline business cases will need to go to the relevant strategy boards ie PICT-AB and PEB prior to submitting to the Finance Directors. Ensure that you take this additional step into account when completing your business case. PICT need to be consulted from the outset in business-led business cases with ICT content. 13

14 When a satisfactory business case has been submitted to the Finance Directors, they will review, approve and where necessary pass it to the Accounting Officers for approval. It is the Senior Responsible Officer s (SRO) responsibility to ensure the appropriate approvals are obtained. Financial provision for the business cases which successfully complete this process and are approved will be included in the draft financial plan of the relevant Houses budget request to the House Committee (HoL) or House of Commons Commission (HoC) in December. Once the House Committee and/or the House of Commons Commission approves the provision for inclusion in the Houses budget for the following year, the proposed projects will have been approved inprinciple. In the case of the House of Lords a bid for funding will then be made to the Treasury, again in December. However, at this stage you do not have the authority to incur any expense unless the approval of the outline business case provides funding for undertaking initial research or feasibility work for the project. Stage two: Delivery Stage - detailed business case Once you have approval for an outline business case, depending on the anticipated costs of the scheme, you will need to complete a detailed business case: for project costs above 150,000 (non-estates), 500,000 (Estates) where you have funding for project costs above 50,000 where you are asking for funding. Occasionally, a project is approved by one of the Houses Committees (House of Lords House Committee, House of Commons Commission, Finance & Services). In these cases, an outline business case is not required and you can proceed directly to the full business case stage. 14

15 Business planning calendar The business planning exercise starts in the spring/summer prior to the start of the following financial year (April): April - June outline business cases to the relevant strategy boards if applicable (PICT-AB, JEB) for priority ranking May - mid July - to Finance Directors, for scrutiny over the summer recess and to start the approval process. October Business plans incorporating approved business cases presented to the Management Board. November - December Corporate business plan presented to the relevant House Committee. The diagram on the next page illustrates the planning cycle for ICT related business cases in a pictorial format. Non-ICT related business cases will follow a similar timetable. Occasionally, you will need to complete a business case for an urgent project. In these situations, business cases can be submitted to your Finance Directors outside of this timetable. Please discuss the situation with your finance manager. 15

16 ICT ANNUAL BUSINESS CYCLE Finance & Services Cttee considers Estimate bid House Committee and Commission consider outturn and next year s budget C & L Management Boards agree financial plan options Oct Nov Dec Jan Feb Key Programme Governance PICT level JBSB level Management Board level Committee level Trilateral Finance Ds/OCE/PICT budget review PICT budget review and deadline for any last minute bids (DPICT and FD staff) Brief F&S and House Cttees Sep Aug Jul C & L Management Boards consider overall business plan including ICT proposals Jun May Mar Apr JBSB considers overall ICT plan JBSB reviews outline business cases Commons and Lords Management Boards set initial strategy Submit Outline business cases to Finance Directors 16

17 Completing an outline business case Key Points Part of three year planning process. Leads to approval in principle only. The project may not be started at this point but initial research work can be undertaken if budgetary provision is available. You will need to complete an outline business case in order to obtain approval in principle if you want to start an improvement project which requires investment. If a project has been approved by one of the Houses Committees (House Committee, House of Commons Commission, Finance & Services Committee), then an outline business case is not required and you can proceed directly to the detailed business case stage. If your project involves Estates/Accommodation Services or ICT, you will need to submit your outline business case to the relevant programme board (PICT-AB and PEB) prior to submission to the Finance Directors, to obtain an in principle decision regarding the direction and priority of programmes of work. Use this document to explain clearly and justify fully why the project should be considered in more detail. You need to ensure that the project achieves the Houses objectives and that there is a clear benefit to the House. Approval of an outline business case is approval in principle only. This means that the concept has been approved, but you will still need to complete a more detailed business case in order to gain approval to start the full project. However, you can use the outline business case to request funds to undertake detail research and feasibility studies. Once approval in principle has been given, you will need to start producing a detailed business case. 17

18 Content of outline business case The main areas to include in an outline business case are: Executive Summary Explanation of the strategic intent: Objectives, benefits and performance indictors: Initial risk assessment: Stakeholder interests: Resources: Next steps: Summarise the key points and state clearly what is required from the approver. Explains the problem or opportunity and why it needs to be addressed. The focus needs to be on how it meets the House s objectives including value for money (VFM). Indicate the nature of the benefits to be gained and when they will be achieved Identifies and assesses the key risks and issues involved Identifies the key stakeholders Provides a global estimate of the scale of the initiative detailed costs are not required at this stage, although it would be beneficial to align resources to possible approaches that could be taken. Determines the priority of the actions required. 18

19 Completing a detailed business case Key Points Must be submitted at least four months before the start of the procurement procedure for the project is due to start. The aim of the detailed business case is to obtain the Finance Directors approval to undertake a scheme including potentially novel or contentious schemes. A scheme is potentially novel or contentious if it is likely to attract high levels of publicity, for example, a project which has been specifically requested by an MP or Peer may attract excessive attention. The Finance Directors must always be consulted if you are uncertain whether a scheme might be considered novel or contentious. House of Lords away-days The House of Lords also requires a business case to be completed for departmental away-days. Specific guidance is available from the Human Resources Office and business cases need to be approved by the Finance Director to ensure VFM and to avoid reputational risk. The House of Lords has defined away-days as to allow management and staff to discuss work related issues in an informal environment. If in doubt, please ask your finance manager. As a general rule of thumb, if your business case needs to be approved by the Finance Directors, you will need to prepare a detailed business case. Content: The main areas to include in a detailed business case are: Executive summary Objectives including benefits Consultation Risks/achievability Options Financial Consideration Project plan and timetable 19

20 Conclusion Appendices option appraisals Timetable You will need to complete a detailed business case at least four months before the procurement procedure for the project concerned is due to start. If your business case only relates to one or other House then you should submit it to the Finance Director of that House. Most large projects are bi-cameral in nature and where that is the case you should submit you business case to both Finance Directors simultaneously, as they both need to approve it. This is to allow sufficient time for scrutiny and resolution of issues. If you do not meet this timetable the project may be rejected. Remember: for medium or high risk projects, a Gateway Review must be completed before submission of the detailed Business Case. 20

21 Content of Business Cases Executive Summary Strategic Intent Objectives and benefits Benefits Critical Success Factors Consultation Risks and achievability Options Option assessment SWOT analysis Financial Considerations Capital Costs Non-cash transactions VAT Project plan and timetable Appendix: Investment Appraisal 21

22 Executive Summary Key Points An executive summary is used to highlight to the reader the KEY points in a business case. It should not include anything that has not been referred to in the main body of the report. Content Imagine yourself in the position of the PEB/PICT-AB or the finance director. What are the main aspects of the business case that you need to know? Ask yourself questions such as: Why is this investment needed at all? Why is it preferable to a different investment? Why do it now as opposed to later? Summarise your thoughts: Why the scheme is being proposed What the scheme will achieve How it will be achieved indicate the preferred option and why it is the preferred option How much the preferred option will cost (including savings) What are the main risks to non-achievement of the objective Remember: keep it brief and to the point. 22

23 Strategic Intent Key Points To explain WHY the project is needed and why this project should take priority. You will need to explain why the scheme or project is being proposed; this is referred to as the strategic intent and is the main focus of the outline business case. The strategic intent needs to explain clearly how the project meets the strategic objectives of the Houses of Parliament. If the justification for the scheme is not clear then the project may not be approved. In this section of the business case, you need to: describe how or why this project is being proposed, for example is it due to a: o business change, (eg. the need to reduce costs) o technological developments (eg new software) or o regulatory or statutory change (eg health and safety legislation) o does it provide environmental benefits (eg reduction in carbon emissions) explain how it contributes to the Houses core tasks and objectives, including value for money (VFM) consider whether it needs to be implemented now or whether it can be delayed consider the implications if it is delayed highlight the other partners involved who need to be, or have been, consulted, eg the House of Lords or the House of Commons Include any research data of analysis to support the case you are making. 23

24 Objectives and Benefits Key Points In this section you need to identify clearly the objectives of the proposed project: what are you trying to ACHIEVE? when will you know you have achieve it set TARGETS are there DEGREES of success? You need to be clear about what you are trying to achieve as this is one of the most important sections of a business case, yet tends to be the one that is completed the least effectively. Remember: in order to measure the achievement of an objective or benefit it is essential that you identify the starting point. You will need to explain the current, quantified position so that the senior manager approving your business case understands the extent of improvement projected. You must avoid using words like improve, optimise, clarify, and help as they are vague and cannot be measured. Include details of the: benefits the project will realise how they will be measured quantifiable targets critical success factors You will also need to indicate the extent to which the targets need to be met in order for the project to be considered a SUCCESS, ie if the targets are not met fully, does that mean the project has failed? Is the scheme still considered to be successful if a target is only 80% achieved? 24

25 Benefits In this section you need to identify the benefits of the project; both financial and non-financial and how they will be measured. Where possible your business case needs to include quantifiable benefits, however it is recognised that some projects may only have qualitative benefits such as improved security or staff morale. Where you have identified financial benefits, these need to be included in the option appraisal section as these will reduce the cost of the project. Ensure the objectives are SMART benefits should be specific, measurable, achievable, realistic and timely Important point to note: You need to identify clear benefits and indicate how you will know when they have been achieved otherwise this may cause delays approving your business case. Areas you should consider inlcude: financial savings value for money benefits o efficiency improvements eg. will it improve the workflow of a process or reduce waste (measure reduction in errors or waste, or the time taken to complete an activity) o will costs be avoided eg. will the number of insurance claims be reduced or avoided or will it prevent penalties being enforced? reputational benefits: o will the project improve staff motivation (eg. can measure the reduction in sickness and recruitment and retention targets) o sustainability agenda eg green agenda could measure reduction in CO2 emissions (energy usage), or achievement of recycling targets. compliance o with a statutory requirement if the Houses of Parliament adopt the relevant legislation (need to indicate what will happen if the Houses were non-compliant) o Houses objectives and policy commitments 25

26 Critical success factors Critical Success Factors are the essential areas of activity that must be performed well if you are to achieve the project objectives. In large projects, so many issues can compete for your attention that it is often difficult to see the wood for the trees. If you are managing a team, it can be extremely difficult to get everyone on the team pulling in the same direction and focusing on the true essentials. You will not need to identify critical success factors for small projects; only large projects need to consider this aspect. The following is an extract (only a few of the factors are listed) from the Access Control System business case (value > 5m). Although the business case detailed other benefits including the ability to integrate the system into all areas of the Palace and improved reliability, the main objectives which had to be achieved were the improved security aspects. Improvement Priority Driver Consequence of not adopting Improved Security to Essential Operational and Potential for harm the Perimeter Security to those on the estate Improved Security between public and private areas The ability to monitor the movements to and from the estate Essential Essential Operational and Security Operational and Security and fire safety legislation Alternatives None Measurement of success No breaches of security to the perimeter Potential for harm to those on the estate None No internal breaches of security Non compliance None Entry and egress reports 26

27 Consultation Key Points Consult all interested parties including those who will be affected by the project as well as those who need to input into the project. Stakeholders - Other departments in the House of Lords or the House of Commons (including PICT) You need to indicate in your business case the full range of consultation that has taken place, what is planned and the effects of the consultation. Many projects will involve other departments, the House of Lords, the House of Commons and/or third parties. It is important that you recognise the input of, or the impact the project has on, other departments. You will need to consult with stakeholders at an early stage regarding: departments who need to contribute to the project eg is Estates, Accommodation Services or IT support required? the procurement route to be followed, including timetable the impact the delivered project will have on departments eg will other departments need additional training, support, guidance? House of Lords and/or House of Commons - the full cost of the scheme needs to be identified along with the amount to be allocated to each party 27

28 Risks and achievability Key Points A realistic assessment and management of the risks that would prevent a successful outcome for the project. In this section you need to consider any risks that may prevent the project from being successful. Once you have identified the risks you will need to indicate how you are going to manage them. Risk Management Risk management is the identification and management of risks which could affect the success of your project. You need to consider two areas of risk in your business case: those associated with the project as a whole irrespective of which option is selected; and those associated with specific options Be realistic and: identify the key risks indicate how you are proposing to manage the risks produce action plans to manage the risks Remember: where you have identified risks that are likely to occur and have a significant impact you must include the cost of managing these risks in the financial appraisal. You need to assess each risk in terms of its probability or likelihood of occurring and it potential impact. This is in line with the two Houses corporate risk management policy guidance. Please see your House guidance. (HoC staff see attached) When you have identified the risks you need to plot them on the heat map. 28

29 The heat map assigns a traffic light colour to the risk: red, amber and green. You will need to indicate the action you are going to take to reduce the likelihood or impact of the risks that fall in the amber and red zones of the heat map methodology. Where this action requires resources these need to be included in the business case proposal. For example, if there is a high risk that the House may change the specification of a new build project the contract will need to be flexible enough to accommodate these additional costs and therefore may be more expensive. This type of additional cost needs to be included in the business case. Risks to consider Potential risks to consider are how changes in personnel will be managed how changes in scope or objectives will be managed how changes in budgetary requirements will be managed management of business continuity issues Note: if the scope or objectives of a project are altered, you will need to re-examine the business case. If the project changes significantly then the business case will need to be re-approved in accordance with the delegated authority limits as though it were a new project. Dependencies You will also need to consider whether the project is dependent on any events or other projects and conversely whether any other projects are dependent on this one. What will happen if this dependency is not met? 29

30 Options Key Points Identify reasonable alternative options for achieving your objective. Options You need to consider the different options available for achieving your objective(s). Identify the criteria that you will use to evaluate each option and determine which is the most appropriate. You will need to complete a section for each option you consider. It is important that you are realistic in the options you put forward. Your business case will be delayed if you propose spurious options. For each option you need to provide: a description of the option an assessment of its strengths and weaknesses an investment appraisal taking into account costs and savings over the full life-cycle (summarise the results in the main body of the report but attach the details as appendices) an assessment of the risks and benefits associated with each option and how they will be managed if they have not already been covered by the earlier risk and benefits sections 30

31 Option assessment Description and assessment You need to demonstrate in the business case that a reasonable range of options has been explored. You will need to: identify at least three reasonable options of which one option should be a do minimum or do nothing option. (This option has caused confusion in the past; it does NOT mean that we cease any work we are currently undertaking but actually means we would carry on as normal. For example, if an asset is currently being maintained then the do nothing option would be to continue with this maintenance.) one option could be to increase maintenance rather than replace the asset. consider new or innovative approaches to achieve the objective. Just because the Houses of Parliament have always purchased an asset or service in a certain way does not mean that it should continue to do so. The House may achieve substantial cost savings or service improvements by considering new and alternative ways to achieving the objective, for example: o outsourcing or franchising o partnership working o leasing o automation You will need to complete an assessment of the strengths and weaknesses for each option you may wish to use a SWOT analysis (alternative methodologies can be used proper consideration of strengths and weaknesses including risks is more important than which methodology you use.) 31

32 SWOT analysis SWOT analysis A SWOT analysis provides a structure for analysing the strengths, weaknesses, opportunities and threats for any scenario: Strengths Weaknesses Opportunities Threats It is one step in a process that helps you to appreciate the strengths of a situation, which need to be built up on define the weaknesses, which need to be minimised make the most of opportunities that present themselves recognise the possible threats and manage them in a planned and organised way. To help in completing a SWOT analysis for each of the options you have proposed, suggested questions have been provided below. Strengths & weaknesses what are the advantages/disadvantages of the option? is there an impact (good or bad) on the reputation of the Houses of Parliament? what is the impact on resources: assets and people? o Do we have the resources and skills or do we need to buy-in? Could there be a problem with staff continuity? o How large is the budget? Is there a risk of significant overspend? do we have the experience, knowledge and data to support the option? do we already have or will we have the right processes, systems, IT and communications in place? do we have or will we have the right cultural, attitudinal and behavioural attributes to ensure success of the option/project? 32

33 Opportunities and threats are there opportunities for collaboration? (ie partnership working, timing of work to piggy-back other work) are there any dependencies which would impact on the success of this option/project? could political interference/support affect the scheme? are there any environmental impacts which need to be considered? would developments in IT assist in achieving the project s objectives? how likely is the loss of key staff? 33

34 Financial Consideration Key Points The total cost of the project needs to be identified. In this section, you need to consider whether the options you have proposed are affordable and how the Houses will fund the project. You need to identify the budget requirement that you are asking for. You need to be explicit about what you are asking for: how much funding are you asking for? how much is coming from o existing budgets? o bids against central budgets? (in this case, you need to indicate why existing departmental budgets can not be used) o is it bicameral and have they agreed? o other third parties? what resource will be required? This includes staff and accommodation (not just budget) what is the impact on other departments? Can they, and will they, support the scheme? Highlight any financial benefits which may not be realised immediately, for example, freeing up accommodation for others to use or staff savings which will materialise over the long-term due to natural staff turnover. What is the difference between the budget requirement and the Net Present Value? The Net Present Value (NPV) is calculated using a technique called Discounted Cash Flows (DCF) as part of the investment appraisal and identifies, from a financial perspective, which option would provide the best value for money. DCFs use only cash items ie. those transactions that have an effect on cash such as a payment to a third party. 34

35 The budget requirement is the total cost of the project and needs to include non-cash items such as depreciation. 35

36 Capital costs The costs that you can classify as capital are limited to those which comply with International Financial Reporting Standards. The guidance in this standard can be subject to interpretation but in general it refers to costs incurred as a result of long-term investment in assets both purchased and enhanced. You can capitalise costs associated with: the purchase of, or improvement to, assets; and project fees incurred in bringing those assets into use If in doubt about whether expenditure can be capitalised please ask your finance manager or the central finance department. When you capitalise expenditure, it creates revenue transactions called depreciation and cost of capital, sometimes referred to as below the line transactions. You will need to recognise these transactions in your budget requirement. 36

37 Non-cash (below the line) transactions If your project includes capital costs then you also need to recognise the associated below the line transactions. These are costs which do not result in a cash transaction they are accounting transactions. These transactions include: Depreciation Capital charges (currently at 3.5%) Remember, if you are unsure please contact your finance manager for assistance. Depreciation When an asset is purchased the transaction is not shown in your department s revenue account (income and expenditure account). As the expenditure has been classified as capital the transaction only affects the balance sheet at this initial stage. As the asset is used and its value deteriorates because it is being used, a transaction needs to be put through the revenue account to represent this. This transaction is called depreciation and you calculate it as follows: Cost of the asset any residual value on disposal the life of the asset in years For example, an asset costing 200,000 to acquire with an asset life of ten years and an expected residual value of 20,000 on disposal would create an annual depreciation charge of 18,000. Cost of the asset any residual value on disposal = 200,000 20,000 the life of the asset in years 10 The only exceptions to this are land, antiquarian library books, and heritage assets which are not depreciated. Depreciation starts in the year that the asset is brought into use. Please contact your finance department for details of asset lives. 37

38 Cost of capital The cost of capital is a notional charge and represents a return on taxpayer s equity in a similar way that a private company would have a return in shareholder s equity. There are plans for this charge to be abolished in the future but at present HM Treasury still require it to be calculated. If you have any doubts please contact your finance department. You calculate the cost of capital on the average net assets of the House. This means the average of the opening and closing balances of assets less liabilities multiplied by a standard rate issued by the Government. [(opening cost of asset opening depreciation) + (closing cost of asset closing depreciation)] * 3.5% 2 The exception to this is Heritage assets (antiquarian books, furniture, silver etc), which do not have a charge for the use of capital applied to them. Following on from our previous example (an asset purchase for 200,000, with an asset life of ten years), the cost of capital would be Value of asset (net book value) = cost of asset less depreciation charge Year 0 Year 1 Year 2 Year 3 Year 4 Opening balance = 200, , , , ,000 Closing balance = 200,000-18, ,000-18, ,000-18, ,000-18, ,000-18,000 Therefore the cost of capital is, Year 0 [(200,000-0) + (200,000 18,000)] * 3.5% = 6,685 2 Year 1 [(182,000) + (182,000 18,000)] * 3.5% = 5,110 2 etc 38

39 VAT You should include VAT when it is not recoverable from HMRC (Her Majesty s Revenue & Customs). As a general rule, VAT is not recoverable on goods or services which can not be provided in-house. A current list of account codes /expenditure types where VAT is recoverable is provided at standard data document 2. [include HoL list] 39

40 Project plan and timetable Key Points Indicate the key deadlines and significant dependencies. Deliverables You need to provide details of the proposed timetable and project plan, indicating the completion dates for key deliverables, such as the procurement timetable. You also need to indicate how the project will be delivered. This could include: internally or externally through outsourcing if externally procured, the type of procurement procedure are you proposing. 40

41 Appendix - Investment Appraisal Investment Appraisal Content of Financial Analysis Full Life-cycle costs Discounted cash flow Sensitivity Analysis 41

42 Investment Appraisal Key Points In this section you need to identify the true cost of each option. An investment appraisal identifies the cash flows for each option in order to ascertain which, from a financial perspective, would provide the best value for money. It is a cost-benefit analysis of the before and after situation. The current financial situation needs to be known and understood at the start of the process otherwise the true cost and savings can not be identified. Remember, the decision to select one option over another is not always about the cost. Non-financial benefits will also play a significant part in the selection of the preferred option. You need to prepare an investment appraisal for each of the options you have identified and attach them as annexes to the business case. A template is provided to assist you in providing the key information required. Sensitivity Analysis You will need to prepare a sensitivity analysis to ensure that the chosen option is still the preferred one even if some of the assumptions change. 42

43 Content of financial analysis When you complete an investment appraisal of each option, you will need to include: the full life-cycle costs all the financial years of the project, not just the initial set-up all the cash items divided into: initial acquisition or development on-going running/operating costs capital and non-capital costs contributions from third parties savings (if applicable) You can use the template provided in this guidance. You need to ensure that all costs are included, such as: other departmental costs (if the project needs input from facilities (eg estates or accommodation services), PICT or any other department then these costs need to be shown clearly, this will mean early consultation with other departments) VAT but only if it is not recoverable When you have identified all the costs and savings, the results should be discounted to reflect the value of future cash flows. If you are using existing budgets then this should be shown clearly. This is particularly relevant if you are preparing a Facilities or a ICT related business case. You do not need to include adjustments for inflation. 43

44 Full life-cycle costs Full life-cycle costs refer to the total costs of a scheme over its entire life; not just its initial set-up costs but its running costs throughout its life, including maintenance. For example, if the project you are proposing is for the purchase of an asset which has a life of 10 years, then your appraisal should also cover 10 years. When you use full life-cycle costs, your appraisal may indicate that the cheapest project to purchase initially is not necessarily the most economical one. For example, asset A may be cheaper to buy initially compared to asset B, but asset B may have lower maintenance and running costs. Therefore, when considering the cost of the asset over its life, asset B may represent better value for money. i.e. Asset A, purchase price 50,000, no maintenance costs Asset B purchase price 20,000, with annual maintenance costs of 10,000 p.a. Over the life of the asset (say five years), Asset A would represent the better value for money. 44

45 Discounted cash flows You do not need to make any adjustments to the figures in the business case to reflect inflation. The costs you produce should be provided at the current day price. Discount Factors If your project is going to last longer than one year then you will need to discount its future cash flows to reflect the current year value, ie 1 today will not have a value of 1 in five years time. The longer the project, the more important it is to obtain the true cost of the scheme, for example, If you were comparing two pieces of equipment, say a boiler, and both boilers incurred the same total costs, 5,500 over their useful life (10 years), but boiler A incurred more costs at the beginning of its life, whereas boiler B incurred costs towards the end of its life. When a discount factor of 3.5% is applied, Boiler B is the most economic boiler to purchase; boiler B costs 4,490, whereas boiler A costs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Before discounting Boiler A Boiler B Apply discount factor to cash flows Boiler A Boiler B The financials templates provided with this guidance will automatically adjust your figures for you. HM Treasury has set the cost of capital at 3.5% (as at 2008/09 please check with finance to ensure that this has not changed). For details of rates see standard data document 3. 45

Project Evaluation Guidelines

Project Evaluation Guidelines Project Evaluation Guidelines Queensland Treasury February 1997 For further information, please contact: Budget Division Queensland Treasury Executive Building 100 George Street Brisbane Qld 4000 or telephone

More information

TEC Capital Asset Management Standard January 2011

TEC Capital Asset Management Standard January 2011 TEC Capital Asset Management Standard January 2011 TEC Capital Asset Management Standard Tertiary Education Commission January 2011 0 Table of contents Introduction 2 Capital Asset Management 3 Defining

More information

Management Board. Business and Financial Planning and Performance Management

Management Board. Business and Financial Planning and Performance Management Management Board Business and Financial Planning and Performance Management A paper by the Office of the Chief Executive and the Department of Resources 1. Purpose 1.1 To establish the approach to be taken

More information

The Transport Business Cases

The Transport Business Cases Do not remove this if sending to pagerunnerr Page Title The Transport Business Cases January 2013 1 Contents Introduction... 3 1. The Transport Business Case... 4 Phase One preparing the Strategic Business

More information

DIRECTORATE OF AUDIT, RISK AND ASSURANCE Internal Audit Service to the GLA

DIRECTORATE OF AUDIT, RISK AND ASSURANCE Internal Audit Service to the GLA Appendix 2c DIRECTORATE OF AUDIT, RISK AND ASSURANCE Internal Audit Service to the GLA Review of Programme and Project Management Framework- Strategic Land and Property DISTRIBUTION LIST Audit Team David

More information

13. Performance Management

13. Performance Management 13. Performance Management Summary Delivering schemes on time and on budget Management of Capital Programme Management of Risk Gateway Reviews Resource requirements Project Management and skills development

More information

Project Management Toolkit Version: 1.0 Last Updated: 23rd November- Formally agreed by the Transformation Programme Sub- Committee

Project Management Toolkit Version: 1.0 Last Updated: 23rd November- Formally agreed by the Transformation Programme Sub- Committee Management Toolkit Version: 1.0 Last Updated: 23rd November- Formally agreed by the Transformation Programme Sub- Committee Page 1 2 Contents 1. Introduction... 3 1.1 Definition of a... 3 1.2 Why have

More information

Part B1: Business case developing the business case

Part B1: Business case developing the business case Overview Part A: Strategic assessment Part B1: Business case developing the business case Part B2: Business case procurement options Part B3: Business case funding and financing options Part C: Project

More information

NORTH AYRSHIRE COUNCIL CORPORATE ASSET MANAGEMENT STRATEGY 2013-2023 JANUARY 2013

NORTH AYRSHIRE COUNCIL CORPORATE ASSET MANAGEMENT STRATEGY 2013-2023 JANUARY 2013 APPENDIX 1 NORTH AYRSHIRE COUNCIL CORPORATE ASSET MANAGEMENT STRATEGY 2013-2023 JANUARY 2013 Page 1 of 10 1. INTRODUCTION It is widely recognised that asset management is a core component of effective

More information

Project Risk Analysis toolkit

Project Risk Analysis toolkit Risk Analysis toolkit MMU has a corporate Risk Management framework that describes the standard for risk management within the university. However projects are different from business as usual activities,

More information

PUBLIC SECTOR BUSINESS CASES USING THE FIVE CASE MODEL GREEN BOOK SUPPLEMENTARY GUIDANCE ON DELIVERING PUBLIC VALUE FROM SPENDING PROPOSALS

PUBLIC SECTOR BUSINESS CASES USING THE FIVE CASE MODEL GREEN BOOK SUPPLEMENTARY GUIDANCE ON DELIVERING PUBLIC VALUE FROM SPENDING PROPOSALS PUBLIC SECTOR BUSINESS CASES USING THE FIVE CASE MODEL GREEN BOOK SUPPLEMENTARY GUIDANCE ON DELIVERING PUBLIC VALUE FROM SPENDING PROPOSALS 2 BUSINESS CASE GUIDANCE Index Forewords Chapters 1. Introduction

More information

Value for Money Assessment Guidance: Capital Programmes and Projects

Value for Money Assessment Guidance: Capital Programmes and Projects Value for Money Assessment Guidance: Capital Programmes and Projects October 2011 Value for Money Assessment Guidance: Capital Programmes and Projects Foreword This guidance has been prepared and issued

More information

PROJECT MANAGEMENT FRAMEWORK

PROJECT MANAGEMENT FRAMEWORK PROJECT MANAGEMENT FRAMEWORK DOCUMENT INFORMATION DOCUMENT TYPE: DOCUMENT STATUS: POLICY OWNER POSITION: INTERNAL COMMITTEE ENDORSEMENT: APPROVED BY: Strategic document Approved Executive Assistant to

More information

Delivering e-procurement Local e-gov National e-procurement Project Overarching Guide to e-procurement for LEAs

Delivering e-procurement Local e-gov National e-procurement Project Overarching Guide to e-procurement for LEAs 1. Introduction Background The National e-procurement Project (NePP) and Centre for Procurement Performance (CPP) are working to support and enable schools to meet their e- Government targets and to gain

More information

Managing ICT contracts in central government. An update

Managing ICT contracts in central government. An update Managing ICT contracts in central government An update Prepared by Audit Scotland June 2015 Auditor General for Scotland The Auditor General s role is to: appoint auditors to Scotland s central government

More information

AGENDA ITEM: 8 SUMMARY

AGENDA ITEM: 8 SUMMARY AGENDA ITEM: 8 SUMMARY Report for: Housing and Community Overview and Scrutiny Committee Date of meeting: 28th January 2015 PART: 1 If Part II, reason: Title of report: Contact: Purpose of report: Recommendations

More information

Accessing finance. Developing a business case for your resource efficiency projects

Accessing finance. Developing a business case for your resource efficiency projects Accessing finance Developing a business case for your resource efficiency projects Developing a business case for your resource efficiency projects 2 Contents 1 Planning a resource efficiency project?

More information

Information Commissioner's Office

Information Commissioner's Office Information Commissioner's Office IT Procurement Review Ian Falconer Partner T: 0161 953 6480 E: ian.falconer@uk.gt.com Last updated 18 June 2012 Will Simpson Senior Manager T: 0161 953 6486 E: will.g.simpson@uk.gt.com

More information

16 April 2014 Item 10 CM/04/14/10

16 April 2014 Item 10 CM/04/14/10 MEETING: Agenda item and Paper Number Agenda Title Sponsor Author CQC Public Board 16 April 20 Item 10 Oracle License Procurement Eileen Milner Martin Pitcher PURPOSE OF PAPER: Actions required by the

More information

PROJECT MANAGEMENT PROCESS for MAJOR CAPITAL PROJECTS

PROJECT MANAGEMENT PROCESS for MAJOR CAPITAL PROJECTS PROJECT MANAGEMENT MANUAL PROJECT MANAGEMENT PROCESS for MAJOR CAPITAL PROJECTS FOR ESTATE MANAGEMENT November 2012 PMM REV1.4 CONTENTS INTRODUCTION PROJECT MANAGEMENT PROCESS FLOWCHARTS STAGE ZERO 0.0

More information

CHESHIRE FIRE AUTHORITY SUBJECT : 2014-15 DRAFT BUDGET, COUNCIL TAX AND MEDIUM TERM FINANCIAL PLAN

CHESHIRE FIRE AUTHORITY SUBJECT : 2014-15 DRAFT BUDGET, COUNCIL TAX AND MEDIUM TERM FINANCIAL PLAN CHESHIRE FIRE AUTHORITY Item 2 ITEM: 2 MEETING OF : FIRE AUTHORITY DATE : 12 FEBRUARY 2014 REPORT OF : CHIEF FIRE OFFICER AUTHOR : HEAD OF FINANCE SUBJECT : 2014-15 DRAFT BUDGET, COUNCIL TAX AND MEDIUM

More information

CAPITAL PLANNING GUIDELINES

CAPITAL PLANNING GUIDELINES CAPITAL PLANNING GUIDELINES 1. INTRODUCTION... 2 2. EXTENSION OF EXISTING INFRASTRUCTURE PROJECTS... 2 3. NEW CAPITAL PROJECTS... 2 4. MINIMUM INFORMATION REQUIRED... 3 5. PREPARATORY WORK... 3 5.1 NEEDS

More information

SPACE MANAGEMENT POLICY

SPACE MANAGEMENT POLICY SPACE MANAGEMENT POLICY Originated by Assistant Director, Management Services: October 2010 Impact Assessment: 11 November 2010 Recommended by Estates Committee: 1 November 2010 Approved by Council: 22

More information

Aberdeen City Council. Performance Management Process. External Audit Report o: 2008/19

Aberdeen City Council. Performance Management Process. External Audit Report o: 2008/19 Aberdeen City Council Performance Management Process External Audit Report o: 2008/19 Draft Issued: 11 February 2009 Final Issued: 6 April 2009 Contents Pages Pages Management Summary Introduction 1 Background

More information

1.1 Objective 4. 1.2 Competencies and resources required 4. 1.3 Scope 4. 1.4 Related documents 5. 3.1 Defining the objectives and scope of projects 7

1.1 Objective 4. 1.2 Competencies and resources required 4. 1.3 Scope 4. 1.4 Related documents 5. 3.1 Defining the objectives and scope of projects 7 Contents 1.0 Introduction 3 1.1 Objective 4 1.2 Competencies and resources required 4 1.3 Scope 4 1.4 Related documents 5 2.0 Project evaluation 5 3.0 Project feasibility 7 3.1 Defining the objectives

More information

Tax risk management strategy

Tax risk management strategy Vodafone Group Plc has a tax strategy focused on the following 6 key areas: Integrity in compliance and reporting Enhancing shareholder value Business partnering Influencing tax policy Developing our people

More information

Gateway review guidebook. for project owners and review teams

Gateway review guidebook. for project owners and review teams Gateway review guidebook for project owners and review teams The State of Queensland (Queensland Treasury and Trade) 2013. First published by the Queensland Government, Department of Infrastructure and

More information

The Risk Management strategy sets out the framework that the Council has established.

The Risk Management strategy sets out the framework that the Council has established. Derbyshire County Council Management Policy Statement The Authority adopts a proactive approach to Management to achieve Best Value and continuous improvement and is committed to the effective management

More information

A COMPARISON OF PRINCE2 AGAINST PMBOK

A COMPARISON OF PRINCE2 AGAINST PMBOK Introduction This comparison takes each part of the PMBOK and gives an opinion on what match there is with elements of the PRINCE2 method. It can be used in any discussion of the respective merits of the

More information

ICT Indicators. The scope of the ICT function covers all aspects of infrastructure, systems, processes and disciplines required to support:

ICT Indicators. The scope of the ICT function covers all aspects of infrastructure, systems, processes and disciplines required to support: ICT Indicators ICT value for money indicators guidance 1) Introduction This document sets out the indicators for the ICT Function. The guidance below starts by defining the scope of the function and goes

More information

Review of Financial Planning and Monitoring. City of York Council Audit 2008/09 Date

Review of Financial Planning and Monitoring. City of York Council Audit 2008/09 Date Review of Financial Planning and Monitoring City of York Council Audit 2008/09 Date Contents Introduction and Background 3 Audit approach 4 Main conclusions 5 Financial Planning Findings 6 Financial Monitoring

More information

Accessing finance. Developing a business case for your resource efficiency projects

Accessing finance. Developing a business case for your resource efficiency projects Accessing finance Developing a business case for your resource efficiency projects Developing a business case for your resource efficiency projects 2 Contents 1 Planning a resource efficiency project?

More information

HIGHWAY INFRASTRUCTURE ASSET MANAGEMENT STRATEGY

HIGHWAY INFRASTRUCTURE ASSET MANAGEMENT STRATEGY HIGHWAY INFRASTRUCTURE ASSET MANAGEMENT STRATEGY 16 November 2015 Highway Infrastructure Asset Management Strategy Contents Introduction 1.0 The Need for Asset Management 1.1. Background 1.2. Aims and

More information

Management Board / Performance Panel / Cabinet. Corporate Improvement Officer (Performance) (Rachel Glynn)

Management Board / Performance Panel / Cabinet. Corporate Improvement Officer (Performance) (Rachel Glynn) Agenda Item No... REPORT TO: Management Board / Performance Panel / Cabinet DATE: 15 th May 2014 / TBC / 18 th June 2014 SERVICE AREA: REPORTING OFFICER: SUBJECT: WARD/S AFFECTED: Corporate Affairs Corporate

More information

P3M3 Portfolio Management Self-Assessment

P3M3 Portfolio Management Self-Assessment Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire P3M3 Portfolio Management Self-Assessment P3M3 is a registered trade mark of AXELOS Limited Contents Introduction

More information

Data Communications Company (DCC) price control guidance: process and procedures

Data Communications Company (DCC) price control guidance: process and procedures Guidance document Contact: Tricia Quinn, Senior Economist Publication date: 27 July 2015 Team: Smarter Metering Email: tricia.quinn@ofgem.gov.uk Overview: The Data and Communications Company (DCC) is required

More information

DRAFT V5. PFSC 16/05/2014 Appendix 1. Outline Plan to deliver the County Council s investment property Strategy

DRAFT V5. PFSC 16/05/2014 Appendix 1. Outline Plan to deliver the County Council s investment property Strategy PFSC 16/05/2014 Appendix 1 Outline Plan to deliver the County Council s investment property Strategy 1. Strategic Drivers 1.1 The County Council s property investment strategy sets out how its property

More information

Guideline. Records Management Strategy. Public Record Office Victoria PROS 10/10 Strategic Management. Version Number: 1.0. Issue Date: 19/07/2010

Guideline. Records Management Strategy. Public Record Office Victoria PROS 10/10 Strategic Management. Version Number: 1.0. Issue Date: 19/07/2010 Public Record Office Victoria PROS 10/10 Strategic Management Guideline 5 Records Management Strategy Version Number: 1.0 Issue Date: 19/07/2010 Expiry Date: 19/07/2015 State of Victoria 2010 Version 1.0

More information

Electricity Market Reform:

Electricity Market Reform: Electricity Market Reform: Consultation on Low Carbon Contracts Company s and Electricity Settlements Company s operational costs 2015/16 Government Response January 2015 Crown copyright 2015 URN 15D/001

More information

Business Change Mandate (Including Budget Mandates) Proposal Number: B18 Title: Strategic Property Review

Business Change Mandate (Including Budget Mandates) Proposal Number: B18 Title: Strategic Property Review Business Change Mandate (Including Budget Mandates) Proposal Number: B18 Title: Strategic Property Review All information requested must be completed on the proposed mandate to enable the Cabinet to decide

More information

The Gateway Review Process

The Gateway Review Process The Gateway Review Process The Gateway Review Process examines programs and projects at key decision points. It aims to provide timely advice to the Senior Responsible Owner (SRO) as the person responsible

More information

Capital Planning Guidelines

Capital Planning Guidelines Capital Planning Guidelines Contents Capital Planning Guidelines... 1 1. INTRODUCTION... 3 2. CAPITAL PROJECTS EVALUATION PROCESS... 3 3. APPRAISAL PROCESS UNDERTAKEN BY DEPARTMENTS... 4 3.1 Extension

More information

Information Commissioner's Office

Information Commissioner's Office Phil Keown Engagement Lead T: 020 7728 2394 E: philip.r.keown@uk.gt.com Will Simpson Associate Director T: 0161 953 6486 E: will.g.simpson@uk.gt.com Information Commissioner's Office Internal Audit 2015-16:

More information

Risk Management Strategy

Risk Management Strategy Risk Management Strategy 2010 RISK MANAGEMENT STRATEGY 1 INTRODUCTION 1.1 What is Risk Management? 1.1.1 Risk can be defined as uncertainty of outcome (whether positive opportunity or negative threat).

More information

2010 MTEF: Budgeting for infrastructure and capital expenditure guidelines

2010 MTEF: Budgeting for infrastructure and capital expenditure guidelines 2010 MTEF: Budgeting for infrastructure and capital expenditure guidelines Introduction The guidelines below provide departments and entities with information to make budget submissions for capital projects

More information

2 Matters to report from internal audit work completed during the period

2 Matters to report from internal audit work completed during the period 1 Introduction Appendix A 1.1 This report summarises the work undertaken during the nine months of the year to 31 December 2011 by the council's Internal Audit Service under the internal audit plan for

More information

1.20 Appendix A Generic Risk Management Process and Tasks

1.20 Appendix A Generic Risk Management Process and Tasks 1.20 Appendix A Generic Risk Management Process and Tasks The Project Manager shall undertake the following generic tasks during each stage of Project Development: A. Define the project context B. Identify

More information

Project, Programme and Portfolio Management Delivery Plan 6

Project, Programme and Portfolio Management Delivery Plan 6 Report title Agenda item Project, Programme and Portfolio Management Delivery Plan 6 Meeting Performance Management and Community Safety Panel 27 April 2009 Date Report by Document number Head of Strategy

More information

FINANCIAL ADVISERS REGULATION: VOLUNTARY AUTHORISATION

FINANCIAL ADVISERS REGULATION: VOLUNTARY AUTHORISATION OFFICE OF THE MINISTER OF COMMERCE The Chair CABINET ECONOMIC GROWTH AND INFRASTRUCTURE COMMITTEE FINANCIAL ADVISERS REGULATION: VOLUNTARY AUTHORISATION PROPOSAL 1 I propose that regulations be promulgated

More information

Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire. P3M3 Project Management Self-Assessment

Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire. P3M3 Project Management Self-Assessment Procurement Programmes & Projects P3M3 v2.1 Self-Assessment Instructions and Questionnaire P3M3 Project Management Self-Assessment Contents Introduction 3 User Guidance 4 P3M3 Self-Assessment Questionnaire

More information

Lexcel England and Wales v6 Guidance notes for in-house legal departments Excellence in practice management and client care. 2015 The Law Society.

Lexcel England and Wales v6 Guidance notes for in-house legal departments Excellence in practice management and client care. 2015 The Law Society. Excellence in practice management and client care 2015 The Law Society. Contents Introduction... 3 PART ONE - GUIDANCE AGAINST LEXCEL STANDARD REQUIREMENTS... 4 1 - Structure and strategy... 4 2 - Financial

More information

december 08 tpp 08-5 Guidelines for Capital Business Cases OFFICE OF FINANCIAL MANAGEMENT Policy & Guidelines Paper

december 08 tpp 08-5 Guidelines for Capital Business Cases OFFICE OF FINANCIAL MANAGEMENT Policy & Guidelines Paper december 08 Guidelines for Capital Business Cases OFFICE OF FINANCIAL MANAGEMENT Policy & Guidelines Paper Preface The NSW Government is committed to the ongoing improvement of public services by ensuring

More information

Integrated Assurance & Approval Strategy and Integrated Assurance & Approval Plans

Integrated Assurance & Approval Strategy and Integrated Assurance & Approval Plans Integrated Assurance & Approval Strategy and Integrated Assurance & Approval Plans A guide to implementing integrated assurance and approvals Version 1.0 - May 2011 Contents Introduction 03 Integrated

More information

Nicola Greenfield, Deputy Director of Finance. Approve Adopt Receive for information. Finance Revenue & Capital X Equality & Diversity

Nicola Greenfield, Deputy Director of Finance. Approve Adopt Receive for information. Finance Revenue & Capital X Equality & Diversity Board of Directors Agenda Item Date: 26 th September 2013 Title of Report Monitor s revised Risk Assessment Framework for 2013/14 Purpose of the report and the key issues for consideration / decision Presented

More information

Planning and Performance Management Framework

Planning and Performance Management Framework This document is available, on request, in accessible formats, including Braille, CD, audio cassette and minority languages. Planning and Performance Management Framework NT/SPP/08/08/5648 0.5k CCD Index

More information

HIGH PEAK BOROUGH COUNCIL. Report to the Corporate Select Committee. 19th January 2016

HIGH PEAK BOROUGH COUNCIL. Report to the Corporate Select Committee. 19th January 2016 AGENDA ITEM 5 HIGH PEAK BOROUGH COUNCIL Report to the Corporate Select Committee 19th January 2016 TITLE: EXECUTIVE COUNCILLOR: CONTACT OFFICER: WARDS INVOLVED: Housing Revenue Account (HRA) Business Plan

More information

REPORT OF: DIRECTOR OF DEMOCRATIC AND LEGAL SERVICES 13/358 WARDS AFFECTED: ALL

REPORT OF: DIRECTOR OF DEMOCRATIC AND LEGAL SERVICES 13/358 WARDS AFFECTED: ALL REPORT TO CABINET TO BE HELD ON 15 OCTOBER 2013 A ITEM Key Decision YES or NO Forward Plan Ref No Corporate Priority All Cabinet Portfolio Holder Cllr Jane Kenyon REPORT OF: DIRECTOR OF DEMOCRATIC AND

More information

Lead Provider Framework Draft Scope. NHS England / 13/12/13 Gateway Ref: 00897

Lead Provider Framework Draft Scope. NHS England / 13/12/13 Gateway Ref: 00897 Lead Provider Framework Draft Scope NHS England / 13/12/13 Gateway Ref: 00897 1 Introduction The commissioning support lead provider framework is being developed in response to requests from CCGs for a

More information

Scotland Your project business plan

Scotland Your project business plan Scotland Your project business plan Scotland Your project business plan Further copies available from: Email enquiries.scotland@biglotteryfund.org.uk Phone 0870 240 2391 Textphone 0141 242 1500 Our website

More information

Nesta and the Open Data Institute Open Data Challenge Series Final Report

Nesta and the Open Data Institute Open Data Challenge Series Final Report www.pwc.com October 2015 Nesta and the Open Data Institute Final Report Generating innovative and sustainable solutions to social challenges using open data. 2 PwC Important Notice This report has been

More information

Consultancy spending approval process: Initial guidance to NHS foundation trusts

Consultancy spending approval process: Initial guidance to NHS foundation trusts Annex One Consultancy spending approval process: Initial guidance to NHS foundation trusts Summary 1. Monitor, the NHS Trust Development Authority (TDA) and NHS England are jointly implementing an approval

More information

7 Directorate Performance Managers. 7 Performance Reporting and Data Quality Officer. 8 Responsible Officers

7 Directorate Performance Managers. 7 Performance Reporting and Data Quality Officer. 8 Responsible Officers Contents Page 1 Introduction 2 2 Objectives of the Strategy 2 3 Data Quality Standards 3 4 The National Indicator Set 3 5 Structure of this Strategy 3 5.1 Awareness 4 5.2 Definitions 4 5.3 Recording 4

More information

Walton Centre. Document History Date Version Author Changes 01/10/2004 1.0 A Cobain L Wyatt. Monitoring & Audit

Walton Centre. Document History Date Version Author Changes 01/10/2004 1.0 A Cobain L Wyatt. Monitoring & Audit Page 1 Walton Centre Monitoring & Audit Document History Date Version Author Changes 01/10/2004 1.0 A Cobain L Wyatt Page 2 Table of Contents Section Contents 1 Introduction 2 Responsibilities Within This

More information

BEST PRACTICE GUIDE 6: ESTABLISHING CONTRACTS. RDTL MINISTRY OF FINANCE Procurement Service

BEST PRACTICE GUIDE 6: ESTABLISHING CONTRACTS. RDTL MINISTRY OF FINANCE Procurement Service RDTL MINISTRY OF FINANCE Procurement Service BEST PRACTICE GUIDE 6: ESTABLISHING CONTRACTS 1 RDTL Procurement Guidelines The Procurement Legal Regime Decree Law sets out new procurement processes which

More information

Bridgend County Borough Council. Corporate Risk Management Policy

Bridgend County Borough Council. Corporate Risk Management Policy Bridgend County Borough Council Corporate Risk Management Policy December 2014 Index Section Page No Introduction 3 Definition of risk 3 Aims and objectives 4 Strategy 4 Accountabilities and roles 5 Risk

More information

Management and Leadership. Level 5 NVQ Diploma in Management and Leadership (QCF)

Management and Leadership. Level 5 NVQ Diploma in Management and Leadership (QCF) Management and Leadership Level 5 NVQ Diploma in Management and Leadership (QCF) 2014 Skills CFA Level 5 NVQ Diploma in Management and Leadership (QCF) Page 1 Level 5 NVQ Diploma in Management and Leadership

More information

NHS ENGLAND BUSINESS CASE APPROVALS PROCESS. Capital Investment, Property, Equipment & ICT. 14 th August 2013

NHS ENGLAND BUSINESS CASE APPROVALS PROCESS. Capital Investment, Property, Equipment & ICT. 14 th August 2013 BUSINESS CASE S PROCESS Capital Investment, Property, Equipment & ICT 14 th August 2013 1 NHS England INFORMATION READER BOX Directorate Medical Operations Patients and Information Nursing Policy Commissioning

More information

Appendix D Programme Stream 6 CRM Procurement. Programme Stream 6 Remodelling of Customer Services Programme CRM Procurement

Appendix D Programme Stream 6 CRM Procurement. Programme Stream 6 Remodelling of Customer Services Programme CRM Procurement Programme Stream 6 Remodelling of Customer Services Programme CRM Procurement Recommendations That the Executive note CRM procurement will be put out to tender in 2010/11 and note the proposed phasing

More information

Digital Archives Migration Methodology. A structured approach to the migration of digital records

Digital Archives Migration Methodology. A structured approach to the migration of digital records Digital Archives Migration Methodology A structured approach to the migration of digital records Published July 2014 1 Table of contents Executive summary... 3 What is the Digital Archives Migration Methodology?...

More information

House of Commons Corporate Governance Framework

House of Commons Corporate Governance Framework House of Commons Corporate Governance Framework What is Corporate Governance? 1. Good corporate governance is fundamental to any effective organisation and is the hallmark of any well-managed corporate

More information

THE SOUTH AFRICAN HERITAGE RESOURCES AGENCY MANAGEMENT OF PERFORMANCE INFORMATION POLICY AND PROCEDURES DOCUMENT

THE SOUTH AFRICAN HERITAGE RESOURCES AGENCY MANAGEMENT OF PERFORMANCE INFORMATION POLICY AND PROCEDURES DOCUMENT THE SOUTH AFRICAN HERITAGE RESOURCES AGENCY MANAGEMENT OF PERFORMANCE INFORMATION POLICY AND PROCEDURES DOCUMENT ACCOUNTABLE SIGNATURE AUTHORISED for implementation SIGNATURE On behalf of Chief Executive

More information

Risk Management Policy and Process Guide

Risk Management Policy and Process Guide Risk Management Policy and Process Guide Status: pending Next review date: December 2015 Page 1 Information Reader Box Directorate Medical Nursing Patients & Information Commissioning Operations (including

More information

Place Scrutiny Briefing AGENDA ITEM 13

Place Scrutiny Briefing AGENDA ITEM 13 Place Scrutiny Briefing AGENDA ITEM 13 Meeting date: 13.7.15 Heading: Joint Spatial Plan and Joint Transport Study - Update Ward: All Bristol wards Author: Sarah O Driscoll Ext. No: 36722 Officer presenting

More information

Performance Management and Service Improvement Framework

Performance Management and Service Improvement Framework Performance Management and Service Improvement Framework Author Marcus Evans, Operational Director - Performance and Customer Insight Date: September 2014 Contents Page 1. Introduction 3 2. Strategic ning

More information

Innovation 4 Growth (I4G) Guidance for Applicants

Innovation 4 Growth (I4G) Guidance for Applicants Innovation 4 Growth (I4G) Guidance for Applicants V5.0 (August 2015)) Contents 1. About Innovation for Growth (I4G) and Regional Growth Fund...3 2. Am I eligible to apply?...3 3. The types of project we

More information

Long Term Financial Planning

Long Term Financial Planning Long Term Financial Planning Framework and Guidelines Long Term Financial Planning Framework and Guidelines for Western Australian Local Governments p1. Contents Foreword 4 1. Introduction 7 2. Purpose

More information

Service and Improvement Plan 2015 18

Service and Improvement Plan 2015 18 Service and Improvement Plan 2015 18 Property and Risk 1. Introduction Property and Risk Service and Improvement Plan 2015 2018 1.1 The Property and Risk Service and Improvement Plan covers the period

More information

Facility management briefing checklist

Facility management briefing checklist Facility management briefing checklist The checklist has been prepared as a complementary document to BS 8536:2010 Facility management briefing. Code of practice. BS 8536 is a standard for facility designers,

More information

The Safer Hospitals, Safer Wards Technology Fund Expression of Interest Applicant name

The Safer Hospitals, Safer Wards Technology Fund Expression of Interest Applicant name FOI Ref 398 Tech Fund 1 Technology Bid to NHS England Appendix 1 The Safer Hospitals, Safer Wards Technology Fund Expression of Interest Applicant name State the organisation name for the project application.

More information

Fundamentals Level Skills Module, F8 (IRL)

Fundamentals Level Skills Module, F8 (IRL) Answers Fundamentals Level Skills Module, F8 (IRL) Audit and Assurance (Irish) June 2008 Answers 1 (a) Prior year internal control questionnaires Obtain the audit file from last year s audit. Ensure that

More information

Agencies and Public Bodies Team Public Bodies: A Guide for Departments

Agencies and Public Bodies Team Public Bodies: A Guide for Departments Agencies and Public Bodies Team Public Bodies: A Guide for Departments Chapter 7: Financial Management Planning, Funding and Control Chapter 7: Financial Management - Planning, Funding and Control FINANCIAL

More information

The Human Resources Department Work Plan for the period 1 April 2015 to 31 March 2016 is attached.

The Human Resources Department Work Plan for the period 1 April 2015 to 31 March 2016 is attached. Council, 25 March 2015 Human Resources Department Work Plan 2015-2016 Executive summary and recommendations Introduction The Human Resources Department Work Plan for the period 1 April 2015 to 31 March

More information

Maturity Model. March 2006. Version 1.0. P2MM Version 1.0 The OGC logo is a Registered Trade Mark of the Office of Government Commerce

Maturity Model. March 2006. Version 1.0. P2MM Version 1.0 The OGC logo is a Registered Trade Mark of the Office of Government Commerce Maturity Model March 2006 Version 1.0 P2MM Version 1.0 The OGC logo is a Registered Trade Mark of the Office of Government Commerce This is a Value Added product which is outside the scope of the HMSO

More information

Principal risks and uncertainties

Principal risks and uncertainties Principal risks and uncertainties Our risk management approach We have a well-established risk management methodology which we use throughout the business to allow us to identify and manage the principal

More information

BS EN 16001 Energy Management Systems VICTORIA BARRON, PRODUCT MARKETING MANAGER, BSI

BS EN 16001 Energy Management Systems VICTORIA BARRON, PRODUCT MARKETING MANAGER, BSI BS EN 16001 Energy Management Systems VICTORIA BARRON, PRODUCT MARKETING MANAGER, BSI Agenda Energy Management in context Why Energy Management? Business Needs How BS EN 16001 helps organisations meet

More information

EVALUATION OF THE CORPORATE PERFORMANCE MANAGEMENT FRAMEWORK

EVALUATION OF THE CORPORATE PERFORMANCE MANAGEMENT FRAMEWORK Appendix A EVALUATION OF THE CORPORATE PERFORMANCE MANAGEMENT FRAMEWORK 1. Introduction and Background 1.1 The County Council introduced a new corporate performance management framework in September 2002.

More information

SUPPLEMENTARY GREEN BOOK GUIDANCE

SUPPLEMENTARY GREEN BOOK GUIDANCE SUPPLEMENTARY GREEN BOOK GUIDANCE ADJUSTING FOR TAXATION IN PFI vs PSC COMPARISONS 1 INTRODUCTION 1.1 This guidance looks at the differential tax receipts that arise from the use of the Private Finance

More information

PAPER B. Purpose. 4. Specifically the report makes proposals for :-

PAPER B. Purpose. 4. Specifically the report makes proposals for :- PAPER B Committee CABINET Date 10 TH FEBRUARY 2009 Title MEDIUM TERM REVENUE AND CAPITAL BUDGET STRATEGY 2009/10-2011/12 AND COUNCIL TAX 2009/10 Report Author Purpose Dave Burbage, Director of Resources

More information

House of Commons Corporate Governance Framework

House of Commons Corporate Governance Framework House of Commons Corporate Governance Framework Published: May 2013 Page 1 of 19 Contents What is Corporate Governance?... 3 Purpose of the Governance Framework... 3 Decision-making... 3 The House of Commons

More information

Charities and investment matters: a guide for trustees

Charities and investment matters: a guide for trustees Charities and investment matters: a guide for trustees October 2011 Contents 1. Introduction 2 2. Executive summary 4 3. The legal framework for financial investment 6 4. Setting a charity s investment

More information

Tax relief on buildings. The Grant Thornton capital allowances service

Tax relief on buildings. The Grant Thornton capital allowances service Tax relief on buildings The Grant Thornton capital allowances service 5 Background to capital allowances Capital allowances are a statutory right to tax relief. As well as the more widely understood items

More information

Cost Management Guidelines for. 1 September 2010

Cost Management Guidelines for. 1 September 2010 Cost Management Guidelines for Public Transport Investment Projects 1 September 2010 Table of Contents Foreword iv 1. Introduction 1 1.1 Purpose Of The Guidelines 1 1.2 Applicability 1 1.2.1 Conventionally

More information

Developing your Budget. Third Sector Workbook 5

Developing your Budget. Third Sector Workbook 5 Developing your Budget Third Sector Workbook 5 The Third Sector Workbook Series This publication is one of a series of workbooks that have been developed to help organisations to manage their activities

More information

Date: 7 February 2013

Date: 7 February 2013 Item No. Report title: Classification: Open Ward(s) or groups affected: From: Date: 7 February 2013 Meeting Name: Deputy Leader and Cabinet Member for Housing Management GW2: Leasehold and Ancillary Properties

More information

Financial Plan 2015/16

Financial Plan 2015/16 Trust Board Public Meeting 28 May 2015 Page Executive Summary 2 Income & Expenditure 3 CIP 6 Balance Sheet 7 Capital Programme 8 Risks and Opportunity 9 Recommendations 10 Introduction Income and Expenditure

More information

Asset Management Policy

Asset Management Policy Asset Management Policy Issue Date: August 2011 Author: Head of Finance Approval Body: Senior Leadership Team CONTENTS Page 1. Policy Statement 3 2. Scope 3 3. Definitions 3 4. Accountabilities and Responsibilities

More information

Procedure Notes For Management of Construction Projects

Procedure Notes For Management of Construction Projects Isle of Man Government Reiltys Ellan Vannin Procedure Notes For Management of Construction Projects Issued by the Treasury Government Office Douglas, Isle of Man IM1 3PX April 2012 Record of Amendments

More information

AUDIT & PERFORMANCE REVIEW COMMITTEE ON 26 TH SEPTEMBER 2007

AUDIT & PERFORMANCE REVIEW COMMITTEE ON 26 TH SEPTEMBER 2007 PAGE: 1 REPORT TO: SUBJECT: BY: AUDIT & PERFORMANCE REVIEW COMMITTEE ON 26 TH SEPTEMBER 2007 ASSET MANAGEMENT CHIEF FINANCIAL OFFICER 1. REASON FOR REPORT 1.1 To provide the Audit and Performance Review

More information

The principles, processes, tools and techniques of project management

The principles, processes, tools and techniques of project management Unit 34: Plan and manage a project. 341 The principles, processes, tools and techniques of project management An industrial project, big or small, must be managed effectively to ensure the project s objectives

More information

ICT Digital Transformation Programme

ICT Digital Transformation Programme Officer and Date Item Cabinet 11 th May 2016 Public ICT Digital Transformation Programme Responsible Officer: Clive Wright, Chief Executive Email: Clive.wright@shropshire.gov.uk Tel: 01743 252007 1.0 Summary

More information