1. THE NORTHERN IRELAND GUIDE TO EXPENDITURE APPRAISAL AND EVALUATION (NIGEAE)
Revised DFP guidance on Expenditure Appraisal, Evaluation, Approval and Management
Michael Brennan
Strategic Policy Division
Department of Finance & Personnel
Signal Centre, 25th November 2009

2. Background Green Book 2003 NI Practical Guide 2003
DFP appraisal website 2004
Local guidance still required
Guidance needed refreshing

3. Key Points Printed NIPG has been withdrawn
Online guidance will aid regular updating
New title – ‘NIGEAE’
Basic steps of appraisal & evaluation unchanged
Some specific changes to procedures

4. Developments NI v UK perspective PPP v Conventional Procurement
Revised Approval Procedures
Refocusing of PPE monitoring
Revised guidance on:
Programme & project management
Use of consultants

5. NI versus UK Perspective
NI focus reflects devolution
Subtle change of focus, not a radical change
NI & UK impacts often coincide
Can make a difference in tourism & industrial assistance
Flexibility remains to consider UK, RoI and EU impacts

6. Infrastructure Procurement Options
Separate strategic & procurement appraisals
VFM assessment:
Consider different forms of both PPP and Conventional procurement
Examine Conventional Procurement Option at key procurement stages
Extra DFP approval required prior to appointment of a preferred bidder
March 2009 HMT Infrastructure Finance Unit
August 2009 HMT guidance on “PPP Projects in Current Market Conditions”

7. Approval Procedures DFP must have reasonable time for consideration
Retrospective approval – Not likely!
Approval at SOC stage for major projects & ‘high profile’ cases
PFI projects require approval at four stages: SOC, OBC, ABC & FBC
Use of Gateways

8. DFP Monitoring of PPEs PER & PPR required for all projects > £500k
Terms PPE & PPR used interchangeably
DFP 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 cases
PPEs are still required with proportionate effort in all cases – and DFP may test drill occasionally

9. The role of appraisal & evaluation in the current financial climate
Financial pressures = greater need to scrutinise spending
Appraisal principles are relevant to
the search for efficiencies
assessment of options for reductions
What 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!

10. Next Steps Departments should: Absorb & disseminate NIGEAE
Reassess their own guidance in light of NIGEAE
CARRY ON APPRAISING!

11. Questions?