Project Policy and Financial Appraisal Training Course

Participants can define a policy problem and establish a justified case for intervention.

• Problem trees separating root causes, direct causes and observable effects
• Baseline analysis using existing data, service records and stakeholder evidence
• PESTLE analysis identifying external drivers affecting project rationale
• Policy mapping linking project objectives to mandated strategic priorities
• Counterfactual definition describing likely conditions without proposed intervention
• Problem statements framed with scale, affected groups and consequences

Participants can map stakeholders and construct a theory of change for a proposed project.

• Stakeholder power-interest grids identifying influence, expectations and engagement priorities
• Beneficiary segmentation distinguishing direct users, indirect groups and excluded populations
• Theory of change linking interventions, assumptions, outputs and outcomes
• Logical framework matrices defining objectives, indicators, sources and risks
• Benefits maps connecting project outputs to measurable organisational outcomes
• Assumption testing using evidence, expert judgement and stakeholder challenge

Participants can define project scope and test the demand assumptions underlying an investment case.

• Scope statements specifying deliverables, boundaries, exclusions and acceptance criteria
• Demand forecasting methods using trends, cohorts, capacity and utilisation data
• Service capacity calculations identifying bottlenecks, throughput and resource requirements
• Technical options defined through performance specifications rather than solutions
• Work breakdown structures translating scope into costable project components
• Requirements traceability linking needs, specifications, benefits and acceptance tests

Participants can generate credible project options and assess their strategic fit.

• Long-list development including do-nothing, do-minimum and alternative delivery options
• Option screening criteria covering policy fit, feasibility, cost and risk
• Multi-criteria decision analysis using weighted scores and documented judgements
• Strategic alignment tests against policy objectives, mandates and organisational priorities
• Short-list selection supported by transparent elimination rationale
• Optimism bias identified when early options understate complexity or costs

Participants can estimate project costs across delivery, operation, maintenance and closure.

• Cost breakdown structures separating capital, operating, contingency and lifecycle costs
• Bottom-up estimating from quantities, unit rates and resource schedules
• Analogous estimates calibrated using comparable completed project data
• Parametric estimating with cost drivers, ratios and scaling assumptions
• Life-cycle costing includes maintenance, renewal, disposal and residual value
• Contingency provisions linked to quantified uncertainty and risk exposure

Participants can forecast revenues, identify funding sources and assess project affordability.

• Revenue models based on prices, volumes, collection rates and timing
• Funding source analysis covering grants, debt, equity and budget allocations
• Drawdown schedules matching funding availability to implementation cash requirements
• Affordability tests comparing annual commitments against approved budget ceilings
• Working capital requirements calculated from receivables, inventory and payables
• Funding gaps identified through cumulative cash flow analysis

Participants can interpret project financial statements and connect them to appraisal decisions.

• Income statements distinguish revenue, operating costs, depreciation and profit
• Balance sheets identify assets, liabilities, equity and capital structure
• Cash flow statements reconcile operating, investing and financing movements
• Depreciation treatment separated from cash expenditure in financial models
• Debt service schedules calculate interest, principal and outstanding balances
• Financial ratios assess liquidity, solvency, profitability and debt capacity

Participants can build a discounted cash flow model using documented financial assumptions.

• Cash flow timelines sequence investment, operating, financing and terminal flows
• Nominal and real cash flows treated consistently with discount rates
• Discount factors calculated from rate assumptions and appraisal periods
• Spreadsheet model architecture separates inputs, calculations, outputs and checks
• Formula auditing identifies broken references, circularity and inconsistent signs
• Model documentation records sources, assumptions, units and update responsibilities

Participants can calculate and interpret core financial viability measures for project options.

• Net present value compares discounted inflows and outflows at valuation dates
• Internal rate of return tested against hurdle rates and financing costs
• Payback period measures time required to recover initial investment
• Discounted payback incorporates time value of money into recovery analysis
• Profitability index ranks constrained-capital investments using present-value ratios
• Break-even analysis identifies volumes or prices required for viability

Participants can distinguish financial returns from economic costs, benefits and public value.

• Financial appraisal compared with economic appraisal and fiscal impact analysis
• Cost-benefit analysis values monetised costs, benefits and externalities
• Cost-effectiveness analysis compares unit costs where benefits resist monetisation
• Willingness-to-pay estimates applied cautiously to non-market project benefits
• Deadweight, displacement and attribution adjusted within benefit estimates
• Distributional analysis identifies who gains, pays or bears project risks

Participants can identify, assess and quantify risks affecting project value and delivery.

• Risk breakdown structures classify strategic, financial, technical and delivery risks
• Risk registers assign owners, triggers, responses and review dates
• Probability-impact matrices prioritise risks using defined scoring scales
• Expected monetary value calculates risk exposure from probability and consequence
• Three-point estimates use optimistic, most likely and pessimistic assumptions
• Risk-adjusted costs distinguish contingency allowances from management reserves

Participants can test whether appraisal conclusions remain valid under changing assumptions.

• One-way sensitivity analysis tests individual assumptions against appraisal results
• Two-way sensitivity tables test combined price, volume and cost movements
• Scenario analysis models coherent best-case, base-case and downside conditions
• Tornado charts rank variables by influence on net present value
• Switching values identify assumptions required to reverse an investment decision
• Decision rules distinguish manageable variation from unacceptable value erosion

Participants can assess how procurement and delivery choices affect cost, risk and value.

• Make-buy analysis compares internal delivery with outsourced service provision
• Procurement routes assessed for competition, control, timing and risk allocation
• Contract types allocate price, quantity, performance and escalation risks
• Whole-life value assessed beyond lowest initial purchase price
• Supplier due diligence reviews financial capacity, capability and dependencies
• Implementation schedules connect procurement milestones to funding and cash forecasts

Participants can establish appraisal governance and prepare evidence for formal project approval.

• Stage-gate reviews test readiness before funding and commitment decisions
• Business case governance defines authors, reviewers, approvers and decision rights
• Independent assurance challenges assumptions, methods, evidence and recommendation quality
• Approval conditions specify thresholds, actions, contingencies and reporting requirements
• Change control assesses implications for scope, benefits, costs and affordability
• Audit trails preserve model versions, source data and decision records

Participants can write a concise, evidence-based appraisal document for senior decision-makers.

• Business case structure presents strategic, economic, financial and delivery arguments
• Executive summaries state decision requested, recommendation, value and key risks
• Option comparison tables present criteria, scores, costs and trade-offs
• Financial model outputs translated into decision-relevant narrative and charts
• Recommendations distinguish approval, conditional approval, deferral and rejection
• Appendices organise assumptions, calculations, technical evidence and supporting documents

Participants can plan benefits tracking and financial control after project approval.

• Benefits realisation plans assign measures, owners, dates and dependencies
• Key performance indicators define baselines, targets, thresholds and data sources
• Forecast versus actual analysis identifies emerging cost and revenue variances
• Earned value management connects scope progress, schedule performance and cost performance
• Reforecasting cycles update cash flow, funding and affordability projections
• Post-implementation reviews test realised benefits against original appraisal commitments

Participants can build, review and present a complete project policy and financial appraisal with a justified recommendation.

• Problem definition, baseline evidence and policy alignment assembled into appraisal narrative
• Theory of change and benefits map tested against stakeholder needs
• Short-listed options compared using financial, economic and strategic evidence
• Discounted cash flow model validated through assumptions, formulas and checks
• Risk, sensitivity and affordability findings incorporated into recommendation
• Approval paper presented with decision request, conditions and implementation controls