Appendix 1 Business Case Template Expenditure < £250,000 Project Title: Directorate: Prepared by: Date: Director Approval: Note: The level of appraisal required is to be proportionate and appropriate to the level of expenditure to be incurred. 1. Introduction and Assessment of Need Please provide a brief explanation of what the expenditure is for and why it is needed. What would the implications be if project/acquisition does not proceed? Include: Background Information What you are hoping to achieve What is the current problem Provide a strategic context – ie departmental business plan, corporate plan, regional strategies, government strategies 2. Aim and Objectives Please state the aim and objectives of the project Aim: What are you hoping to achieve – be specific Objectives: Set SMART targets 3. Options Please identify if there are any alternative options and provide a brief explanation as to why these have not been considered further. Set out a number of options. Always include a do nothing option (status quo). Explain each option and how it would meet the aim and objectives and whether it is carried forward for further consideration or not. 4. Monetary Costs and Benefits Please state the monetary cost of the project/acquisition. A sentence should also be included to explain how this cost has been estimated e.g. previous experience. If there are any monetary benefits, these should be included here. Include capital costs, revenue costs, income generated and savings made for each option carried forward for consideration. 5. a] Non-Monetary Costs and Benefits Please briefly identify any non-monetary costs and benefits. Non-monetary: Sustainability: environmental, social, health and well being Non-monetary costs – costs which can’t be measured in financial terms. 1 Non-monetary benefits – use a weighted scoring method. Document rationale for the scores used. Mark each option. b] Social Value Has social value been considered? Social value can be defined as the additional benefit to the community that can be derived from a procurement process over and above the direct purchasing of goods, services or works 6. Risks Please indicate if there are any notable risks associated with the project/acquisition. Consider financing, market conditions, contractor capabilities, the requirements for statutory approvals, land ownership, etc; any factor which would have a negative impact on seeing the project run smoothly. 7. Analysis and Selection of Preferred Option Summarise all of the options based on costs and benefits: both monetary and nonmonetary. Clearly document the preferred option. 8. Monitoring and Evaluation Please identify who will be responsible for monitoring the project/asset. Also indicate how and when performance will be evaluated. Document who will manage the project, who and how the budget will be monitored, how the benefits will be measured. 9. Financing Please indicate how the project/acquisition will be financed. Example: grant aid (making reference to any conditions associated with the grant aid including timescales/restrictions), included in estimates. 2