Instructions for completion of Form 2 –
Business Case Analysis
This report provides a summary of the information required to complete the Business Case
Analysis template. Note all shaded areas in the template will require data input. The Business
Case Analysis template is made up of the following worksheets:
 Table1 - EFTSU and Income
 Table 2 - Space, Salary and Expenditure
 Table 3 - Capital Expenditure Schedule
 Table 4 - EFTSU projection
 Table 5 - Income projection
 Table 6 - Business Case Summary
Note please contact Business Services – Management Accounting on 52230 for assistance in
completing the template.
Table 1 - EFTSU & Income
This Table requires projections for commencing EFTSU, attrition rates and fee income levels to
produce EFTSU and Income projections for the program. This report feeds into all other reports
including:
 Table 2 - Space, Salary and Expenditure
 Table 4 - EFTSU projections
 Table 5 - Income projections
 Table 6 - Summary Business Case analysis.
The template requires the following information.
Program Details:
1. Complete Faculty Name.
2. Complete title of new Program.
3. Complete Commencement date.
4. No. of units per year.
Projected commencing EFTSU
5. Commencing Australian fee paying EFTSU per year from year 1 to 10.
6. Commencing International fee paying EFTSU per year from year 1 to 10.
7. Commencing Commonwealth funded EFTSU per year from year 1 to 10.
Projected Attrition Rate
8. Enter estimated attrition rates for each year of study.
Proposed Tuition Fee level
9. Australian tuition fee per unit for years 1 to 10.
10. International tuition fee per unit for years 1 to 10.
11. Commonwealth fund level per EFTSU.
12. Percentage growth in Commonwealth funding per year.
Capital Contribution
13. The University deducts a capital contribution from Gross tuition fees. This is a DEST
requirement for International fees. The capital contribution is set 25% above the DEST level
for International tuition fees and Australian fees are set at the DEST level. From the drop
down list select the code that matches the Programs discipline from the capital contribution
worksheet i.e. for a Law program the International code would be E2.
14. The University overhead deducted after capital contributions is 30%.
Table 2 – Space, Salary and Expenditure
Based on EFTSU projections and teaching contact hours this table produces:
 No. of classes per year
 Teaching hours per year
 Total FTE based on teaching requirements
 Academic and General Salaries
 Other Expenditure
Teaching Style and Contact Hours
1. Enter Course Code and Course title for all core courses within Program. Enter non core
courses for each year simply as Non Core 1 and Non Core 2. For each course enter the
teaching style for that course i.e. 1 Lecture and 1 Tutorial or 1 Seminar etc
2. Enter assumptions for Class size, Contact hours per week and No. of weeks per year i.e.
Lecture size = 200, Contact hours = 2, No. of Weeks = 13 or Seminar size = 40, Contact hours
= 3, No. of Weeks = 13.
3. Total EFTSU is linked from the Input Table EFTSU and Income.
4. No. of classes is calculated based on EFTSU projections and teaching requirements previously
entered.
5. Teaching hours is calculated from number of classes, contact hours and number of weeks.
Staff Requirements
The staffing profile is based on the assumption that an increase in EFTSU will result in an increase in
the number of classes and teaching hours and therefore an increase in teaching costs. Based on the
projected EFTSU for the Program and estimated student / staff ratio, a projected teaching FTE is
calculated. From the FTE a salary profile is created and costs calculated.
6. Enter estimated student staff ratio.
7. Based on Total EFTSU and student staff ratio, an estimated teaching FTE is calculated.
8. Based on the estimated FTE enter teaching profile for Program i.e. 15 FTE equals 9 Associate
Lecturer’s, 4 Lecturer’s and 2 Senior Lecturer’s.
9. Calculate Academic Salaries by selecting the appropriate level for the drop down list i.e.
Senior Lecturer select salary level from C1 to C6.
10. Calculate General staff Salaries, enter estimated FTE and select appropriate level from drop
down list i.e. 50% FTE and level 3.3.
Other Expenditure
11. Other estimated expenditure and percentage increase in expenditure each year.
12. NPV enter appropriate NPV for project. This feeds into the summary sheet and calculate the
NPV of the project based on the net cashflows for the project over the 10 year period. This
report feeds into Table 6 Business Case Summary.
Table 3 – Capital Expenditure Schedule
List capital expenditure requirements and estimated expenditure timeframe. This report feeds into
Table 6 Business Case Summary.
Table 4 – EFTSU Projections
This table is linked to Table 1 - EFTSU & Income and calculates 10 year EFTSU projections based on
commencing EFTSU and attrition rates. EFTSU projections are calculated for:
 Australian Fee paying
 International Fee paying
 Commonwealth funded places
Table 5 – EFTSU Projections
This table is linked to Table 1 - EFTSU & Income and calculates Gross Income, Capital Contributions,
University Overheads and Net Fee Income distributed to Schools for the 10 year period. Income is
calculated for:
 Australian Fee paying
 International Fee paying
 Commonwealth funded places
This report feeds into Table 6 Business Case Summary.
Table 6 – Business Case Summary
This report produces a cashflow summary for the project over a 10 year period.