Capital Development Guidelines

A budget analysis should illustrate how the preferred option meets the proposal’s objectives. A budget analysis should allow decision-makers to consider the option, which will deliver the best outcomes in line with government objectives and have a demonstrable impact on output/service delivery performance. Where hard budget constraints exist (where funding sources are not available or are not endorsed for the proposed investment), it may not always be the case that the option, which provides the highest net benefits, will be selected. Instead, decision-makers may select the option that maximises net benefits within the overall budgetary constraints and investment mix.

The budget analysis must identify the operating budget (revenue and expenses) over the proposal’s lifecycle and the capital cost impacts over its life (initial costs and any known renewals requirements) together with cash flows for each financial year over the forward estimates period.

It should outline:

• The impact on the department’s outputs and associated outcome targets (i.e. Measurable impact on performance);
• The cost impact including all changes to revenues and expenses (capital charging, depreciation equivalent as well as maintenance, security, cleaning etc.) And the impact on the net cost of agency outputs;
• Asset investment requirements net of any income from the sale of surplus or redundant assets (net capital costs); and
• Cash outflows and inflows, including explicit identification of the proposed funding sources and details of any financial arrangements including user charging.

This section should summarise the findings and conclusions from sections 6,7,8,10. It should detail the financial and asset approvals sought to proceed with the project.

Indicate where the project sits in the DHS Asset Management Plan and Multi-Year Strategy.

Indicate which part of the asset management cycle is being targeted eg, DHS ERC bid for 200x/x