Presentation on theme: "THE NORTHERN IRELAND GUIDE TO EXPENDITURE APPRAISAL AND EVALUATION (NIGEAE) Revised DFP guidance on Expenditure Appraisal, Evaluation, Approval and Management."— Presentation transcript:
1THE NORTHERN IRELAND GUIDE TO EXPENDITURE APPRAISAL AND EVALUATION (NIGEAE) Revised DFP guidance on Expenditure Appraisal, Evaluation, Approval and ManagementMichael BrennanStrategic Policy DivisionDepartment of Finance & PersonnelSignal Centre, 25th November 2009
2Background Green Book 2003 NI Practical Guide 2003 DFP appraisal website 2004Local guidance still requiredGuidance needed refreshing
3Key Points Printed NIPG has been withdrawn Online guidance will aid regular updatingNew title – ‘NIGEAE’Basic steps of appraisal & evaluation unchangedSome specific changes to procedures
4Developments NI v UK perspective PPP v Conventional Procurement Revised Approval ProceduresRefocusing of PPE monitoringRevised guidance on:Programme & project managementUse of consultants
5NI versus UK Perspective NI focus reflects devolutionSubtle change of focus, not a radical changeNI & UK impacts often coincideCan make a difference in tourism & industrial assistanceFlexibility remains to consider UK, RoI and EU impacts
6Infrastructure Procurement Options Separate strategic & procurement appraisalsVFM assessment:Consider different forms of both PPP and Conventional procurementExamine Conventional Procurement Option at key procurement stagesExtra DFP approval required prior to appointment of a preferred bidderMarch 2009 HMT Infrastructure Finance UnitAugust 2009 HMT guidance on “PPP Projects in Current Market Conditions”
7Approval Procedures DFP must have reasonable time for consideration Retrospective approval – Not likely!Approval at SOC stage for major projects & ‘high profile’ casesPFI projects require approval at four stages: SOC, OBC, ABC & FBCUse of Gateways
8DFP Monitoring of PPEs PER & PPR required for all projects > £500k Terms PPE & PPR used interchangeablyDFP will give priority to monitoring PPEs for larger projects & those with ‘read across’Approval letters will state whether PPE must be submitted to DFP in individual casesPPEs are still required with proportionate effort in all cases – and DFP may test drill occasionally
9The role of appraisal & evaluation in the current financial climate Financial pressures = greater need to scrutinise spendingAppraisal principles are relevant tothe search for efficienciesassessment of options for reductionsWhat is indispensable and what can be cut or discontinued?How can we make savings with minimum impact on services?The alternative to rational appraisal is arbitrary cuts!
10Next Steps Departments should: Absorb & disseminate NIGEAE Reassess their own guidance in light of NIGEAECARRY ON APPRAISING!