Preface

The NSW Government is committed to the ongoing improvement of public services by ensuring resource allocation decisions are directed to services that provide the greatest benefits to New South Wales. Preparing a rigorous business case is vital to inform Government decision makers that the proposal is necessary, consistent with government priorities, offers value for money and the nominating agency has the capacity to deliver the service delivery benefits outlined.

NSW Treasury Circular Revised Project Size /Risk Thresholds for the Submission of Business Cases and Gateway Reports (NSW TC 08/07) defines the thresholds for submitting capital business cases to Treasury. A single set of thresholds applies to all asset classes including information and communication technology (ICT).

The Guidelines for Capital Business Cases promotes a consistent approach across all public sector agencies in preparing both a preliminary and final business case for all categories of proposed resource allocations decisions for:

◼ construction

◼ goods and services

◼ information technology and communications

◼ property and accommodation.

The business case process is separated into two stages:

◼ The preliminary business case constitutes the planning framework for the business case and is used to demonstrate and justify the service rationale, consider service delivery alternatives and also inform internal agency priority setting

◼ The final business case documents a defined project that contains an updated justification of the service rationale, determines value for money, and demonstrates that the agency has the capability to implement the service.

The business case process aims to help agencies choose the best means to satisfy a specified objective and rank competing proposals and enable Government to prioritise its resource allocation decisions. The business case should clearly demonstrate the agency's capacity to implement the proposal and realise the intended service delivery benefits.

Using these Guidelines ensures robust analysis for decision making is consistently applied when considering new proposals. Quantitative evidence is preferable to support all areas of the business case for more informed decision making and will lead to better performance in the implementation of new services for NSW.

This policy and guidelines paper aims to help agencies prepare preliminary and final business cases for proposed capital investments. Feedback is invited on the guidelines and templates.

Michael Schur
Acting Secretary
NSW Treasury
December 2008

Note

General inquiries and feedback on this document should be initially directed to:

Anil Pillai (Tel: 9228 5547, or E-mail: anil.pillai@treasury.nsw.gov.au) of NSW Treasury.

This publication can be accessed from the Office of Financial Management Internet site

[http://www.treasury.nsw.gov.au/]

For printed copies contact the Publications Officer on Tel: (02) 9228 4426.