Transformation Financial Case
Transformation Financial Case
[This section demonstrates that the project is affordable and that the benefits, even if spread across the council, are properly accounted for. For a Full Business Case, this section must provide complete certainty on costs and funding.]
1. Chief Financial Officer (Section 151 Officer) statement
[For a Full Business Case, this section should include a formal statement from the CFO (or designated deputy) confirming that the costs are robust, the funding sources are confirmed and available, and that all financial risks and implications have been reviewed and are considered acceptable. For an OBC, this may be a statement of principle or confirmation that the project can proceed to the next stage of financial scrutiny.]
2. Summary financial impact
[This table provides the single most important view of the project’s financial implications. It must be clear, comprehensive, and based on realistic assumptions. Ensure all costs, benefits, and funding sources are clearly laid out to show the whole-life cost and return. In the ‘Cashable Savings / Income’ line, you may note that these benefits may be realised in other service budgets. These must be signed off by the relevant budget owners. Add a prompt for any corporate fund top-ups or matched funding contributions from partner services that reduce the net bid to the Transformation Fund.
| Financial Element (£000s) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total |
| One-off Capital Costs [e.g. Hardware (iPads, VR headsets, touch screens), initial software development if capitalised.] | ||||||
| One-off Revenue Costs [e.g. Procurement support, supplier set-up fees, initial content/design work, staff training, project launch communications.] | ||||||
| Ongoing Annual Revenue Costs [e.g. Software licences, support and maintenance, internal staff time for project/platform management, paid social media/marketing budget.] | ||||||
| Total Project Costs | ||||||
| Cashable Savings / Income [e.g. Reduced printing/postage, reduced officer time on manual data entry (quantified), income from selling service to partners.] | ||||||
| Net Financial Impact (per year) | ||||||
| Cumulative Net Impact |
Return on Investment and payback period
[State the calculated payback period in years/months based on cashable savings only. If the primary benefits are non-cashable, state this clearly and refer back to the Value for Money statement in the Economic Case.
- Funding sources: [Clearly list the confirmed sources of funding for the Total Project Costs. Past projects highlight a need to be explicit about both initial and ongoing funding.
- Initial project funding: e.g. PropTech Engagement Fund Grant, Capital Programme allocation, Departmental Earmarked Reserve.
- Ongoing funding (post-project): How will the solution be sustained? e.g. Base budget provision in future Medium Term Financial Strategy (MTFS), ongoing income from partners, decommissioning of a legacy system.]
3. Detailed cost breakdown
[Provide the detailed work that underpins the summary table. This is where you demonstrate the robustness of your estimates. A common lesson from past projects is that initial supplier quotes often do not represent the full project cost.
- Supplier costs: Detail the costs for software, implementation, training, and any specialist consultancy. Be explicit about what is included (and excluded) and whether VAT is applicable.
- Internal staffing costs: This is a critical and often underestimated cost. Estimate the number of days/hours required from different roles (e.g. Project Manager, Planning Officers, Comms Officers, IT staff) and apply a standard daily rate. Past projects show that officer time is a significant ‘hidden’ cost that must be factored in.
- Marketing and communications costs: Do not assume engagement is free. Several councils found that a dedicated budget for paid social media promotion was vital to reaching target audiences. Include costs for advertising, flyers, video production etc.
- Contingency: For innovative projects using new technology, a contingency of 15-20% is advisable to cover unforeseen technical challenges or scope adjustments – a common experience in the pilot projects.
- Key assumptions: List the key financial assumptions made (e.g. ‘Supplier licence costs are assumed to increase by X% annually’, ‘Staff costs are based on a blended day rate of £Y’). This demonstrates transparency and helps stakeholders understand the basis of your financial model.