Public Sector Appraisal Framework in Ireland
"Explore the common appraisal framework used in the Irish public sector for project evaluation and value-for-money analysis. Learn about key steps in developing a business case, appraisal guidelines, and thresholds for engagement. Understand the structure and process involved in creating a business case for public projects."
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Presentation Transcript
DTTAS Common Appraisal Framework Project Appraisal in the Irish Public Sector Kevin Threadgold, Strategic Research and Analysis Division, 22/11/2017
Contents Irish appraisal system (Public Spending Code) DTTAS Common Appraisal Framework Key steps when developing a business case Forthcoming updates 2
Established 2012 by DPER an integrated cross-Government service to enhance the role of economics and value for money analysis in public policy making Civil servants (economists/evaluators) IGEES units (e.g. SRAD) Outputs policy analysis papers, VFMPRs/FPAs, etc. 3
Appraisal Guidelines I Public Spending Code (DPER) Since 2013 Rules (updated) to ensure VFM New requirements: All public expenditure Thresholds for appraisals Others (VFMPR, QAP, PPR) 4
Appraisal Thresholds Required Engagement Estimated Project Cost Scale of Appraisal Required Below 0.5 million Simple Assessment Single Appraisal incorporating elements of a Preliminary and Detailed Appraisal Between 0.5m and 5m Between 5mand 20m At a minimum, a Multi Criteria Analysis (MCA) Agree PAP with SRAD Detailed Economic Appraisal - Cost Benefit Analysis (CBA) (or Cost Effectiveness Analysis (CEA)) SRAD and PER confirm PSC compliance Over 20 million Current expenditure (with an annual spend of at least 5m) Detailed Economic Appraisal - Cost Benefit Analysis (CBA) (or Cost Effectiveness Analysis (CEA)) SRAD and PER confirm PSC compliance Over 100m* As above Sign-off at Cabinet level 5
Appraisal Guidelines II Common Appraisal Framework Latest edition 2016 (update from 09) In tandem with PSC & literature Transport parameters Broader appraisal guidance 6
Steps in developing a business case Sponsoring Agency Responsible for appraisal, planning, management E.g. local authority Sanctioning Authority Responsible for granting approvals E.g. TII, NTA, DTTAS (these can vary) Submission depends on thresholds 8
Business Case Contents Problem Define the Objectives (& rationale) Clarify the Scope Assess the Feasibility (constraints) Explore the (multiple) options to achieve the objectives Preliminary Appraisal Identification and Scoping Analyse the Main Options (incl. Do-Nothing/Do-Min) Financial Appraisal Economic Appraisal Risk Analysis Defining Options and Assessing VfM Detailed Appraisal Planning, Planning and Design Issues incl Implementation Evaluation Plan and Proofing Appendices Implementation and Review 9
Economic appraisal common pitfalls Poorly defined rationale and/or objectives What problem are you trying to solve? Which objective/s really matter? Lack of detailed/comparative assessment of options Case making MCA weighting of criteria not clearly set out and documented or even conducted CBA incorrect parameter values Need to be consistent with PSC and CAF Lack of sensitivity analysis conducted on costs and benefits Presentation of costs and benefits 10
Decision Points & Required Approvals Identify Project Proposal If > 5m, agree assumptions/Project Appraisal Plan with SRAD Carry out Preliminary (& Detailed) Appraisal If > 20m, submit CBA to SRAD/DPER for approval If necessary, revise & resubmit appraisal Taking on board comments from Sanctioning Authority/SRAD/DPER Finalise Business Case Sanctioning Authority gives approval in principle 11
Updates to appraisal guidelines DPER updating PSC - 4 central parameters SRAD updating CAF - Base year 2016 - New parameters for journey reliability & crowding - MCA guidance Both due 2018 12
Thank You 13
