1. DTTAS Common Appraisal Framework
Project Appraisal in the Irish Public Sector
Kevin Threadgold, Strategic Research and Analysis Division, 22/11/2017

2. Irish appraisal system (Public Spending Code)
Contents
Irish appraisal system (Public Spending Code)
DTTAS Common Appraisal Framework
Key steps when developing a business case
Forthcoming updates

3. Civil servants (economists/evaluators) IGEES units (e.g. SRAD)
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.

4. 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)

5. Appraisal Thresholds Estimated Project Cost
Scale of Appraisal Required
Required Engagement
Below €0.5 million
Simple Assessment
Between €0.5m and €5m
Single Appraisal incorporating elements of a Preliminary and Detailed Appraisal
Between €5m and €20m
At a minimum, a Multi Criteria Analysis (MCA)
Agree PAP with SRAD
Over €20 million
Detailed Economic Appraisal - Cost Benefit Analysis (CBA) (or Cost Effectiveness Analysis (CEA))
SRAD and PER confirm PSC compliance
Current expenditure (with an annual spend of at least €5m)
Over €100m*
As above
Sign-off at Cabinet level

6. Appraisal Guidelines II
Common Appraisal Framework
Latest edition 2016 (update from ‘09)
In tandem with PSC & literature
Transport parameters
Broader appraisal guidance

7. CAF Structure

8. 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

9. Business Case Contents
Define the Objectives (& rationale)
Clarify the Scope
Assess the Feasibility (constraints)
Explore the (multiple) options to achieve the objectives
Problem Identification and Scoping
Analyse the Main Options (incl. Do-Nothing/Do-Min)
Financial Appraisal
Economic Appraisal
Risk Analysis
Defining Options and Assessing VfM
Planning and Design Issues incl Implementation
Evaluation Plan and Proofing
Appendices
Planning, Implementation and Review
Preliminary Appraisal
Detailed Appraisal

10. 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

11. Decision Points & Required Approvals
Finalise Business Case
Sanctioning Authority gives approval in principle
Taking on board comments from Sanctioning Authority/SRAD/DPER
Carry out Preliminary (& Detailed) Appraisal
If >€20m, submit CBA to SRAD/DPER for approval
Identify Project Proposal
If >€5m, agree assumptions/Project Appraisal Plan with SRAD
If necessary, revise & resubmit appraisal

12. Updates to appraisal guidelines
DPER updating PSC central parameters
SRAD updating CAF - Base year New parameters for journey reliability & crowding - MCA guidance
Both due 2018

13. Thank You