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ITEM NO:A03 APPENDIX 5b PROGRAMME NOTE 40 NEW DEAL FOR COMMUNITIES (NDC) PROJECT APPRAISAL AND APPROVAL GUIDANCE REVISED EDITION NOVEMBER 2006

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ITEM NO:A03 APPENDIX 5b

PROGRAMME NOTE 40

NEW DEAL FOR COMMUNITIES (NDC) PROJECT APPRAISAL AND APPROVAL

GUIDANCE

REVISED EDITION

NOVEMBER 2006

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CONTENTS CHAPTER 1 INTRODUCTION - Differences from April 2002 version - What is project appraisal? - Which projects should be appraised? - When should projects be re-appraised? - The roles of the NDC partnership, Accountable Body and Government Office in

project appraisal - Where technical advice should be sought by NDC partnerships - How to use this guidance? CHAPTER 2 The Project Development Cycle, Project Cycle Management and how Project Appraisal fits in: - Identifying what you want to achieve - Project Design - Project Application - Project Appraisal - Project Approval - Project Implementation and Management - Project Evaluation CHAPTER 3 Key Principles of Project Appraisal - Separate application, appraisal and approval and who does what - The value of technical knowledge - Documenting evidence - Information needed – a summary - Planning and scheduling to avoid delays - Delegated authority - Novel or contentious projects - Very small projects - Potentially risky projects CHAPTER 4 The Project Appraisal Process - Information needed - Appraisal process APPENDIX 1 Example of an NDC Project appraisal form

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Table 2 - For section 2 of the appraisal 'outputs' Table 5A - For section 5 of the appraisal 'cashflow by funding source' Table 5B - For section 5 of the appraisal 'cashflow for other public sources' APPENDIX 2 Project Cycle Management (PCM) documentation, which may be used to replace sections of the project appraisal form.. APPENDIX 3 Standard NDC outputs as agreed with NDCs in 2004 and included in NDC PN 28.

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CHAPTER 1 INTRODUCTION 1.1 This guidance on NDC project appraisal replaces the version dated April 2002

It differs from the previous version by: -

• Incorporating the changes made following the post implementation review of the April 2002 guidance which was sent out as a separate document in September 2003.

o Clarifying when project re-appraisal is needed o Clarifying the respective roles of the NDC, Government Office and

Accountable Body in project appraisal o Identifying when technical advice should be sought in appraising

capital projects • Incorporating the national performance indicators as agreed with NDCs

and set out in NDC PN 28 in the section on outputs.

The revised NDC Project Appraisal Guidance is consistent with the single Programme Appraisal Guidance which the Regional Development Agencies use for all their programmes, including the Single Regeneration Budget (SRB) programmes and Treasury Guidance ‘Appraisal and Evaluation in Central Government’ known as “ The Green Book”. NDCs which are using other sources of public funding should talk to their GO in order to agree a suitable way forward on Project Appraisal with the other funding bodies to ensure only one appraisal is needed.

WHAT IS PROJECT APPRAISAL? 1.2 Project appraisal is part of the process of designing and implementing projects

to solve problems and improve the quality of life in NDC areas. Your Partnership’s Delivery Plan set out the desired outcomes and vision for the area. Project appraisal is a tool to help partnerships choose the best projects to achieve these outcomes at the best price. Project appraisal helps to select projects which: -

• Will help to achieve the desired outcomes in the Delivery Plan • Are deliverable • Involve local people • Take proper account of the needs of people from ethnic minorities and other

minority groups • Are sustainable (i.e. benefits will continue even when the NDC funding stops) • Provide the best value in delivering results • Have identified appropriate sources of mainstream or other funding to make

NDC funds go further • Need NDC funding • Have sensible ways of managing risk • Will be properly monitored and managed • Will be monitored and evaluated so the partnership learns what works well

and what doesn’t

It also helps the partnership to: -

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• Be consistent and objective in choosing projects • Make sure that its programme benefits all sections of the community,

including those from ethnic groups who have often been left out, in the past. • Provide documentation to meet financial and audit requirements and to explain

decisions to local people 1.3 For project appraisal to achieve this, it must be seen by partnerships to be a

useful tool rather than a Government imposition. For this to happen, partnerships need to be able to use project appraisal flexibly and design their own forms where they wish. For this reason this guidance identifies (in Chapter 4) the minimum requirements for project appraisal to meet Government requirements on the use of public funds. Whilst partnerships may wish to use the appraisal form in Appendix 1, they need not do so if they would rather design their own, based on the requirements in Chapter 4.

WHICH PROJECTS SHOULD BE APPRAISED? 1.4 All projects should be appraised. However the level of detail in your appraisal

should be proportionate to the level of funding and degree of risk.

All project appraisals should follow the requirements in Chapter 4. These are based on weighing up the advantages and problems with different options as in section 10, and looking at ways to reduce the risk of the preferred option not meeting the required outcomes. All the questions should be considered for each project but shorter and simpler answers will be appropriate for smaller projects. For projects over £1m of public grant, and very technical or complex ones of below this value where it would help partnerships to take better decisions, a full analysis of the options is required. This is set out in section 11 of Chapter 4.

WHEN SHOULD PROJECTS BE RE-APPRAISED? 1.5 If there is a significant change in the nature of a project such as its main

purpose, outputs or outcomes or the total project cost increases by more than 10% for projects costing £10,000 or more in NDC grant, (or more than £1,000 for projects costing less than £10,000) then the project should be re-appraised and re-approved by the partnership.

THE ROLES OF THE NDC PARTNERSHIP, ACCOUNTABLE BODY AND GOVERNMENT OFFICE IN PROJECT APPRAISAL 1.6 It is the responsibility of the NDC partnership to ensure each project is

properly appraised and approved according to this guidance. It is the responsibility of the Accountable Body to ensure that the partnership has adequate systems in place to appraise and approve projects as required by this guidance and to check on a sample basis that these systems are being used. It is the responsibility of the Government Office to approve projects over the partnership's delegation level. This entails checking that the appraisal and approval have been carried out properly by the partnership. In the case of complex or technical projects the GO may wish to seek specialist advice on

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the technical issues or require the partnership to do so if this has not already been done.'

WHERE TECHNICAL ADVICE SHOULD BE SOUGHT BY NDC PARTNERSHIPS 1.7 For capital construction projects costing over £0.5m in NDC grant independent

advice on the design and construction costs should be obtained by NDCs. In such cases the NDC should liaise with the Government Office to agree a suitable Architect, Surveyor or Quantity Surveyor to provide such advice, which will be of use to both the NDC and the Government Office in deciding whether or not to approve a project. Funding for such advice may be charged to the project or to a separate technical advice budget, similar to those many NDCs have set up for feasibility studies. When appraisals for such projects are submitted to the Government Office they should include all relevant information including such things as land ownership, planning permission, building regulation issues, a business plan for running the building when completed etc.

HOW TO USE THIS GUIDANCE 1.8 Within NDC partnerships the Board should know about the key principles and

requirements of project appraisal. They should therefore be aware of the contents of chapters 1-3. Partnerships using Project Cycle Management should take particular note of the contents of Chapter 2.

1.9 Those who carry out project appraisals within or on behalf of the NDC should be aware of the whole document and Chapter 4 in particular which identifies the information which must be considered in appraising projects and the process appraisers should go through in testing whether a project should proceed and which option should be selected.

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CHAPTER 2

THE PROJECT DEVELOPMENT CYCLE, PROJECT CYCLE MANAGEMENT AND HOW PROJECT

APPRAISAL FITS IN. 2.1 The process of developing and delivering projects consists of the following

stages. This is the case whether or not partnerships are using the methods known as Project Cycle Management (PCM). Project Cycle Management is a method of designing and managing projects to help local people become more involved. Many NDC partnerships have been trained in this method and it is set out in ‘Project Cycle Management and Logical Framework Toolkit’ (NRU/Freer Spreckley, produced in 2001). In going through the stages, reference is made to the PCM terminology in square brackets and in bold type. A diagram of the stages is also included at the end of this chapter.

IDENTIFY WHAT YOU WANT TO ACHIEVE IN THE NEIGHBOURHOOD

2.2 This was done in the Delivery Plan. In the light of existing problems and knowledge about the area (baseline information), appropriate long term outcomes of what you want the neighbourhood to be like have been set. This sets the context for projects to be developed. Anyone who wishes to develop a project and apply to the partnership for grant should read the Delivery Plan to see if and how the project fits in. If it does not, there is no point in proceeding. It is also a good source of information for a number of questions in the appraisal process. [In Project Cycle Management (PCM) this is undertaken at stage 1 'Programme' where the strategic visions and project criteria are established.]

PROJECT DESIGN

2.3 Ideally projects will be designed by a group of people who experience a particular problem or are involved in some other way with it. This would include local residents and people from agencies responsible for providing services, which relate to the problem.

2.4 The first part of the process is to identify the problem you want to tackle, and what you want to achieve from the project. [In PCM this is Stage 2 'Identification'.] The second part is producing ideas to do this, and assessing which are the most sensible. As part of this process, various sensible options may be identified and appraised. If options are appraised at this stage it is important that the reasoning is documented and kept so it can be checked in the formal project appraisal. [In PCM this is Stage 3 'Formulation and Appraisal' .] In partnerships not using PCM or local workshops to develop projects , projects may come forward in other ways from people or organisations that think they would be a good idea.

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2.5 In some NDCs applications for funding are only considered if they are

commissioned by the Partnership. People who have ideas for projects attend working groups to discuss them and if they fit in with the Delivery Plan they are commissioned to work them up in more detail. This reduces potentially abortive work. If projects are well designed to meet the outcomes identified in the Delivery Plan they are more likely to stand up well during appraisal. Good project design is crucial to ensuring the problem identified will be dealt with and the desired outcomes met. However it takes time, often some 6 - 9 months between an idea and project approval. Partnerships need to realise this and plan for it.

PROJECT APPLICATION

2.6 However a project has been identified, a written project proposal is needed.

This will form the basis of an application for funding and provide most of the information needed for project appraisal. It will help everyone (including those appraising and approving the project) to be clear what is proposed, how much it will cost, who will benefit from it etc. [In PCM this is done at the end of Stage 3 'Formulation and Appraisal', in preparation for Stage 4 'Commitment and Financing'.]

PROJECT APPRAISAL

2.7 Project appraisal is an important stage in the process as it is on the basis of the appraisal that the partnership will decide whether or not to fund a project.

The purpose of the project appraisal is to check whether the project: - • Will help to achieve the desired outcomes in the Delivery Plan and meet its

objectives • Is deliverable • Involves local people • Takes proper account of the needs of people from ethnic minorities and

other minority groups. • Is sustainable (i.e. benefit will continue even when NDC funding stops) • Provides the best value in delivering results • Has identified appropriate sources of mainstream or other funding to make

NDC funds go further. • Needs NDC funding • Has sensible ways of managing risk • Will be properly monitored and managed • Will be evaluated so the partnership learns what works well and what

doesn’t

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2.8 It ensures all the necessary information is weighed up so that a

recommendation can be made to the Board on whether or not to proceed with the project and whether conditions should be applied to reduce the risk of the project not fully delivering its impact.

[In PCM the part that deals with whether a project will achieve the desired outcomes and its sustainability, is Stage 3 'Formulation and Appraisal' and the funding in Stage 4 'Commitment and Financing' . The key documentation from these stages can be used in the appraisal.]

PROJECT APPROVAL 2.9 This is the stage where the Board or a subgroup authorised by the Board takes

the decision whether to fund the project or not in the light of the appraisal. 2.10 For projects over the partnership's delegated authority limit the Government Office must also approve the project before it can proceed. PROJECT IMPLEMENTATION AND MANAGEMENT 2.11 Once the project has been approved and the grant offer letter issued and

accepted by the applicant the project then gets underway. No money should be spent or commitment entered into on the project before it is approved. However once it has been approved it is important that systems are in place to monitor its progress and to take decisions to deal with problems which arise as it proceeds. The method for doing this will have been included in the appraisal but the partnership should check that it is actually happening.

[In PCM this is Stage 5 'Implementation' .] PROJECT EVALUATION 2.12 The purpose of project evaluation is to assess whether the project has made the

impact it was designed to and to learn lessons for the future. These lessons may be taken into account in making changes to the current project and in the design of future projects. It is therefore important that the partnership agrees if an evaluation will be required for a particular project, what it will be expected to cover (in broad terms) and when the partnership will expect to receive the results of the evaluation. These results will be fed into project groups responsible for designing or appraising future projects. For many projects, particularly those which are expected to continue for several years it is worth including provision for interim evaluation so that the effectiveness of the project can be assessed as it develops. This allows changes to be made to improve its effectiveness sooner rather than later, if required. [In PCM this is Stage 6 'Evaluation'.]

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The Project Cycle

This diagram shows the project cycle described above in paragraphs 2.2 - 2.12, in the oval boxes. The oblong boxes show the same cycle as described in Project Cycle Management and how they fit in with the non-PCM Project Cycle.

What we want to achieve in

the area.

Programme Evaluation

Implementation

Identification

Commitment & Financing

Evaluation

Implementation

Project Approval

Project Appraisal

Project Application

Project Design

Formulation and Appraisal

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CHAPTER 3

KEY PRINCIPLES OF PROJECT APPRAISAL 3.1 Each partnership may develop its own project appraisal system. In doing so, it

should ensure that the requirements set out in chapter 4 are met and that the following key principles are followed: -

3.2 Keep project application, appraisal and approval functions separate. It is

important that these functions (as explained in chapter 2) are kept separate and carried out by different people to show that decisions have been taken properly.

• Applications may be made by individuals or groups who wish to obtain

funding for a project. • Appraisals should be carried out by people in or on behalf of the partnership

who have been trained in this and who are authorised by the partnership to do it. Ideally it will involve local residents. They should be objective and not subject to any vested interest, so they must not be people involved in delivering the project. An appraisal should result in a recommendation to approve or reject the project or certain options within it or suggest an alternative form of action.

• Approval should be carried out by the Board or a panel given that function by the Board. It should not be done by people who have submitted the application or will deliver the project or have appraised the project.

• Projects over the partnerships’ delegation level (usually £250,000) must be sent to the Government Office for their approval.

3.3 Race equality and other equality issues. Promoting race equality and

ensuring that people from all sections of the community benefit, are key principles of NDC. Procedures for appraising projects need to be based on these principles. The main points you need to check are: are people from ethnic minorities (and other minority groups) sufficiently involved in designing, running and monitoring the project and will people from ethnic minorities and other minority groups benefit appropriately from the project. In doing this consideration should be given to those people in the NDC area who may be excluded due to social, religious, cultural, ethnicity, gender or sexuality. This will be different in different NDCs.

3.4 The value of good project design and development. Projects are less likely

to encounter difficulties at appraisal if they have been well designed and developed in consultation with the NDC partnership. However this takes time, often 6 – 9 months from an idea to project approval. It is important that everybody involved is aware of this and plans accordingly.

3.5 The value of technical knowledge. Project appraisers need a good

understanding of the key issues of project appraisal. For large or complex projects, partnerships may wish to obtain technical support from consultants or other people who have such specialist knowledge such as Neighbourhood Renewal Advisors. The Government Office can identify suitable people. For capital construction projects costing over £0.5m in NDC grant, independent

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advice on the design and construction costs should be obtained by NDCs. In such cases the NDC should liaise with the Government Office to agree a suitable Architect, Surveyor or Quantity Surveyor to provide such advice, which will be of use to both the NDC and the Government Office in deciding whether or not to approve a project. Funding for such advice may be charged to the project or to a separate technical advice budget, similar to those many NDCs have set up for feasibility studies.

3.6 Documentary evidence. It is important that the appraisal and approval

processes are well documented to ensure reasons for decisions are clear to people within the partnership and for audit purposes.

3.7 Information needed. You must have sufficient, accurate information on a

project and alternative options before undertaking a project appraisal to avoid badly informed decisions. Chapter 4 sets out the minimum requirements in detail for practitioners. A summary version is set out here for partnership members who want a general understanding of what is needed.

a) Which organisation will deliver the project and its contact details b) Purpose and benefits of the project including:-

- the need for it / problem it is to solve - what it will do and the impact it will have - how that will contribute to meeting the vision and outcomes in the

Delivery Plan - which groups within the community will benefit from it. - is there evidence that this type of project has been successful

elsewhere?

c) Community involvement including:- - how the community has been involved in the development of the

project - how the community will be involved in its delivery - what has or will be done to involve people who are difficult to reach,

such as those from various ethnic minorities.

d) Linkages including:- - how the project fits in with other local and regional strategies - how it fits in with other projects in the area. Does it complement or

duplicate them? - which organisations will be involved in its delivery, how, and what is

their 'track record' in delivering similar projects?

e) Cost / Value for money including:- - whether NDC funding is needed - total cost and total NDC cost - cash flow - how the costs compare to similar projects and whether it gives good

value for money

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f) Risk including:- - risks to delivery - risks that benefits will be lost to the neighbourhood - ways these risks will be managed and reduced

g) Milestones, Monitoring and Management including:-

- key tasks in delivering the project and when they are planned to happen eg. appointing staff or starting building works

- how progress against milestones, cashflow and outputs will be

monitored and action taken if the project slips. Who is responsible for this and how often?

h) Evaluation including:-

- how and when the project will be assessed on its impact in the area so the partnership learns what works well and what doesn’t

i) The Future including:-

- how the benefits of the project will continue once NDC funding stops - who will be responsible for any assets once NDC funding stops

j) Options including:-

- the other options considered and why they were rejected

k) Main reasons for selecting the preferred option From this information an appraiser can weight up the pros and cons in order to recommend whether the project should be funded, which option is the best and whether there should be any conditions on how the project should be implemented in order to reduce certain risks.

3.8 Planning and scheduling to avoid delays. The need to carry out appraisals

and approve projects can cause delays in getting projects underway. This can be reduced by ensuring that they are planned in advance. Some partnerships have several groups of people who meet to approve projects. This means that with 3 groups say, they only need to meet every 6 weeks but there is an appraisal meeting every fortnight. Where a project needs to be approved by the Government Office as well as the partnership, as it is over the delegation limit, the time taken can be reduced by sending the project to the GO as a draft prior to the NDC’s appraisal and approval. This allows them to raise any issues of concern and the formal application, which should outline any changes from the draft, is then likely to be processed much quicker.

3.9 Delegated authority. Each partnership has a delegated authority level set by the Government Office. This is the maximum grant which it may approve in any one project. (For most partnerships this is £250,000 although for new ones the GO may wish to approve all projects until it is satisfied that the partnership has adequate systems in place). Projects over the delegated authority limit must be approved by the GO before they can proceed. Projects must not be artificially reduced to come in under delegated authority levels.

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3.10 Novel or contentious projects

Irrespective of the amount of expenditure proposed, "novel or contentious" expenditure proposals must be referred to GOs for approval (who will seek advice from Department of Communites and Local Government HQ, and if necessary the approval of the Treasury). It is not possible to define the terms precisely; nor to provide an exhaustive list of what might be considered "novel or contentious". Partnerships should seek guidance from GOs if in any doubt. Generally speaking, "novel or contentious" should be taken as meaning expenditure which is of an new kind or nature, or is likely to cause dispute or argument. For example, these are proposals which are likely to cause major controversy or risk bringing Partnerships or the Government into disrepute; or which have significant wider financial implications by setting an expensive precedent (through repercussions on other programmes) or which may affect the future level of public resources required. The following are examples of expenditure proposals which should be referred in the first instance to GOs to decide whether approval may be given or whether the project must be treated as novel or contentious: (a) the purchase of land at a higher price than its value; (b) the disposal of land at less than open market value as part of a

development agreement; (c) projects requiring the use of innovative or untried technology; (d) rental or other guarantee projects; (e) endowments

3.11 Very small projects. Many partnerships have set up funds for small

projects such as ones to help develop community capacity and involvement eg. community chests, or ones for feasibility studies to determine whether certain project ideas would be viable locally. This is a good way to ensure that such projects do not need to go through the full appraisal process which is too detailed for their size. In such cases the project to set up the fund would be fully appraised allowing a much reduced and more appropriate level of appraisal for calls on the fund.

3.12 Potentially risky projects. The idea of NDC is to make an impact in

improving the neighbourhood. This will involve trying out new and innovative ideas as well as tried and tested ones. One way of reducing risk with innovative projects is to approve them for a short period such as a year or so and then reappraise them after this time to decide whether they should continue, be changed or be dropped. Good evaluation will be particularly important with such projects.

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CHAPTER 4

THE PROJECT APPRAISAL PROCESS

4.1 This chapter consists of two main sections. The first sets out the information which must be considered in your appraisal of different projects. The proforma at Appendix 1 allows for the required information to be included. Partnerships may wish to design their own forms. This is fine provided they allow for the information identified in this chapter to be included.

4.2 The second part offers guidance on the process which appraisers should go through in testing whether a project should proceed and that the best option is selected.

4.3 In most cases when a project comes forward for appraisal there is a preferred

option. This is either because it has been worked on by a group of people from the partnership who have designed it to meet certain objectives possibly through Project Cycle Management, or because it has been put forward by an organisation or individual who believes a particular project and way of carrying it out has merit.

4.4 The methodology set out in this chapter accepts that this is the case and has

therefore put all the information on the preferred option together. This is followed by information on other options considered and why they were rejected. This helps to reduce duplication. However in appraising and approving schemes it is important that the partnership checks that the preferred option is the best for the area and not just someone's 'pet' scheme. The follow example is a good reminder of this:-

'In one borough, a high rate of vandalism to cars was believed to be driving people from using the town centre. It was thought that CCTV would be the best solution. Further research revealed, however, that the damage was concentrated on particular days of the week. It then emerged that the problem appeared most commonly during one period of time on those days. Moreover, it was found that when the damage occurred, the cars had typically been parked in one small area. When this was investigated it turned out that the problem was not one of vandalism at all. Instead, the higher than normal rate of damage was caused by careless market traders when they set up early in the morning! The lesson is obvious. Town Centre CCTV would have been an expensive non-solution. The problem needed an altogether different approach.'

4.5 Different partnerships will have developed different ways of designing,

appraising and approving projects. This means that collecting the relevant information, as set out in this chapter, to appraise projects may differ between partnerships. For example if a local individual or organisation is putting in an application for funding it may not provide particularly good information on local linkages, evaluation or alternative options. In such cases it is up to the partnership to ensure this information is provided prior to or as part of the appraisal. It is often possible for partnership staff to do this in liaison with the applicant. On the other hand a partnership which has set up local working groups to develop and commission projects is likely to have collected the necessary information as part of the design process.

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4.6 Where a partnership used Project Cycle Management to design and document

a project the PCM Project Measurement Toolkit documentation should be used. This has been designed to cover the same areas as those in this chapter and can be used as the appraisal method. Within each of the sections in this chapter reference is made in square brackets and italics to relevant standard PCM documentation, which may be used instead of completing that section of the appraisal form. These documents are set out in 'PCM Project Measurement Toolkit' by Freer Spreckley 2002.

APPRAISAL INFORMATION

1. PROJECT INFORMATION

The information in this section is a summary of the key facts about the preferred option or way of delivering this project and contact details. Its purpose is to have this information on a one page cover sheet for ease of use. [In PCM this information is generated in Stage 3 'Formulation and Appraisal' and recorded in sections 1 and 2 of the application form] The information required is as follows:- Project Name This should be easily recognisable and where possible relate to the name in the Delivery Plan.

Reference Number Optional but it is useful for partnerships to set up a reference system so that

appraisals can be easily filed and retrieved. This will be increasingly important over the years as the volume of projects and appraisal documents increases. If you save documents on computer this could be the computer file name and

location. Location/Address of Project Where this is not straightforward it might be helpful to include a location plan.

Projects must be located in, or provide services to, residents, businesses or organisations in the NDC area.

Length of Project For capital projects this should include estimated start and completion dates.

For revenue projects it should include for how long the project is expected to run on the NDC provision and also give estimated start and completion dates.

Organisation responsible for running the project Project Officer The person responsible for running the project. Job Title / Tel Number / Fax Number / E-mail Address / Address Contact information for the person responsible for running the project.

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Other partners involved Other organisations who are involved in delivering or running the project and

a brief description of their role in the project. Brief Description of Project A short (one or two paragraph) summary of what the project is and what it will

do.

Total Project Cost The estimated total cost of the project including capital and revenue, public

and private sector funding. Total NDC Cost The NDC funding (capital and revenue) needed for the project

2. PROJECT PURPOSE AND BENEFITS This section sets out why there is a need for this project, what problem it aims

to tackle, what it is designed to achieve and how it contributes to meeting the outcomes set out in the Delivery Plan.

[In PCM this information is generated in Stage 2 'Identification' from the

Problem and Objective Assessment and recorded in section 3 of the application form 'Problems to be addressed' and Section 4 'Stakeholders']

The need for the project This should identify the problem which this project will address. If certain local communities are affected more than others this should be mentioned (Annex A of the NDC Race Equality Guidance explains how to assess the needs of ethnic minority communities). It should include evidence about the problem particularly drawing on baseline or other statistical data. This should also link back to the Delivery Plan. Project Description and Purpose This should identify what the project is, what it will do, how it will do it and how it will make a difference to the identified problem. Who will benefit from the project? This should identify which people / groups are the main intended beneficiaries of the project. It should refer to people from different ethnic, age, gender, disability and other groups where relevant.

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Project Benefits (measurable outputs and long term impact)

Outputs This should set out the measurable things the project will achieve, how many and when. They are the short term things the Project will provide which help to achieve the longer term outcomes. Wherever possible the output measures used should be the standard NDC outputs as agreed with NDCs in 2004 and set out in NDC PN 28. This list is also included as Appendix 3 to this document and gives the definition of each of the 34 standard outputs. NDC may use other output measures but only where there is not an appropriate standard one. Outputs, eg. number of people trained, number of homes improved, should be listed together with the dates when they are expected to be achieved. If the project is to target different ethnic groups or other minorities this should be included. For simple projects a list will be sufficient. For more complex projects a spreadsheet as in table 2 of Appendix 1 may be easier to use where different numbers and output types are expected over several years. It also provides the information needed to monitor the project through ‘System K’.

However whilst outputs are important as they are tangible things the project will provide they will not in themselves ensure the project will make a real difference to the area. This is why we need to consider the project’s long term impact or outcomes. Long Term Impact or outcome on the NDC Neighbourhood This should identify which outcomes in the Delivery Plan the project will contribute towards meeting. The Delivery Plan paints the picture of how the area is to be transformed by the NDC programme. If a project does not contribute to meeting Delivery Plan outcomes it should not receive NDC funding. This is therefore an assessment of how the project will make an impact in the area and help meet the outcomes set out in the Delivery Plan. (For example how will 100 people completing a particular training course reduce worklessness in the area? Will it contribute to other outcomes such as reducing crime?) This can be done as a simple list giving the relevant Delivery Plan outcomes and how the project will assist in achieving them. It should be remembered that a project may achieve outcomes indirectly in other theme areas. If so these should be included. For example a project which helps local people get jobs may improve the income of local people and therefore help the viability of local shops. In some cases reference should be made to the section on linkages to other projects as this project may be part of a package to achieve a particular outcome. (For example a project to create certain jobs may be linked to another providing specific training to help local people develop the necessary skills to get the jobs created.) Learning from other Projects

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This should identify if the project is based on good practice examples from one of the Policy Action Team (PAT) reports or evidence elsewhere of what has worked well and whether it has been adapted to be relevant to local conditions in this area. It should also identify if it has taken into account any findings from the evaluation of other projects in the NDC and if so how. In other words is there any evidence that this approach works well, with these sort of people in these types of circumstances.

3. COMMUNITY INVOLVEMENT

The purpose of this section is to show the relevance of this project to local people and ensure particular groups are not excluded from involvement or benefit, whether intentionally or unintentionally. The following questions should therefore be answered. How have local residents been involved in developing this project? This should mention how different ethnic communities or other groups (such as young people or people with disabilities) have been involved, and any groups who have not been reached. What evidence do you have that there is demand for this project from local residents, workers or businesses?

How will local people be involved in the running of the project? This should explain how local people (including these from ethnic minorities and other minority groups) will be involved. How will you ensure all local groups know about and will be able to benefit from the project?

This should explain the steps the project will take to make sure that people from different parts of the community, particularly those who are difficult to reach are able to benefit from the project.

[In PCM this, information is generated in Stage 2 'Identification' and Stage 3

'Formulation and Appraisal' and recorded in the application form in Section 4 'Stakeholders' and Section 7 'Origin and Preparation of the Project']

4. LINKAGES

The purpose of this section is to identify how this project links into others which are operating locally to avoid duplication and add value to what is already going on. It also checks that the project is not working against other regional or local strategies and takes local market conditions into account where relevant. Finally it looks at the partners involved in the project and the nature of their involvement. How does this project link in with other projects in the area?

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This should identify other projects in the area which are for related or similar activities and identify how this one differs and what additional benefits it brings to the area. In some cases it may fill a gap to ensure other projects are more successful. Are there links to other regional or local strategies or particular market conditions which will affect the project? If so what are they?

Partners involved This should identify other partners in funding, delivering or running the project and the nature of their involvement. It should also mention their track record and that of the main partner in running similar projects successfully. It is important that if projects are set up to try out different ways of providing local services, the mainstream service provider is involved as a partner in the project. [In PCM this information is generated in Stage 3 'Formulation and Appraisal' and recorded in the application form in Section 5 'Local Setting' and Section 6 'Relevant Policy Fit'.]

5. COST / VALUE FOR MONEY

The purpose of this section is to identify the total cost of the project how it is broken down, how much is to be paid from NDC resources, what other sources of funding are available and who needs to pay what and when. It is also important to check that the project is providing good value for money and that NDC funds are really needed. The cost included should be the total costs of carrying out the project. They should include for increases over the life of the project due to salary rises etc. If unsure as to the level of increase, look at past trends, other statistics should be used for costs which are likely to rise. Breakdown of cost by funder and timescale Table 5A in Appendix 1 should be completed to provide this information. For simple projects where only NDC funding is required the table should still be completed but will just break the cost down between capital and revenue and provide a cash flow over the life of the scheme. This cash flow is important if the project is approved as it provides the starting point to monitor progress on spend and to update the partnership's overall programme spend for the current and future years. Breakdown of cost by Public Agency If other public sources are being used for some of the funding table 5B in Appendix 1 should be completed to identify the specific source(s) of funding, how much and when. Ensuring that each agency is ‘signed’ up to providing their share of funding when it is needed is crucial to delivering the project.

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How secure is the funding from other sources? What is being done to ensure these costs are met? Where other funders are involved the purpose of this section is to identify how firmly committed their funds are to the project, and what is being done to firm this up. Is there evidence that the funding will be available, such as a letter from the funder? In some cases the technical requirements of certain funding may influence the timing of the project. This should be mentioned and needs to be taken into account in the cash flow and milestones etc. Breakdown of cost by use of funds In assessing value for money it is important to know how the project costs are broken down between different uses. This section provides the information on the uses the money will be put to and how much for each. The sorts of headings will differ between different types of project but will include things such as:- Use Amount How calculated Which agency to fund (where relevant) Staff costs Equipment of different types Management / Admin Accommodation Evaluation Transport Purchase of land / building Building costs VAT (if relevant) Is the VAT recoverable? Y/N

Why is NDC funding needed? It is important that NDC funds are not used where a project could go ahead without them or where such work could be funded by a mainstream service provider. In addition if contributions are made from other funding sources NDC funds can go further. In some cases NDC funding may be needed to pilot new ways to deliver local services to help persuade mainstream funders that they are feasible and improve local service provision. The purpose of this question is to ensure NDC funding is really needed and at the level requested.

How does this project represent good value for money? It is important to identify whether a project is good value for money so that partnerships are able to stretch their funds as far as possible. The sort of things which should be considered are: - - How much does the project cost per output? / per outcome? - Is this in line with similar projects locally?

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- Are the costs per worker or for the rental or purchase of a building or specific equipment in line with the ‘going rate’ locally?

However for different projects different measures will be appropriate. We are

trying to ensure that the desired outcome is achieved in the most cost effective way. Outputs are only a means to that end and good value outputs will not always ensure good value outcomes. But it is important for the NDC to check that they are not paying 'over the odds' for different parts of the project or could achieve the same outcome more cheaply in another way.

[In PCM this information is generated in Stage 3 'Formulation and Appraisal'

and recorded in the application form in section 11 'Finance'].

6. RISK

The purpose of this section is to identify the different sorts of things which could happen to stop the project from being successful in delivering its outputs and long term impact. The areas of risk which should be considered are risk to project delivery and risk of loss of benefit to the area. Risk to project delivery The sort of things which could stop a project from delivering include: - • poor project management – This may be due to the lack of experience or

‘track record’ of the organisation carrying out the project or to a lack of good systems to monitor progress, identify problems and resolve them during delivery.

• financial assumptions - eg. increases in cost or reduction in funding due to

a funder pulling out. If costs overrun how will they be met?

• delays to the project – these may be due to difficulties in obtaining necessary approvals such as planning permission or due to staff sickness or competing priorities.

• Project complexity – with complex projects a preliminary feasibility study

and / or professional advice is vital to ensure it is workable before comitting funds.

Risk of loss of benefit to the area The sort of things which could reduce the local benefit of the project are: -

• some of the benefit might have arisen without the project • some of the benefit going to people from outside the neighbourhood

reducing its benefit to local people • the project might take trade, labour or land from existing local businesses,

so whilst a project might create jobs in one business it results in the loss of jobs elsewhere.

• the project might encourage people to substitute one activity or group of people for another. For example, local business may take on local staff

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because of a subsidy to do so but may lay off existing more expensive staff.

Ways the project will reduce these risks

Every project will have risks. However a good project will identify the potential risks and identify ways to overcome or reduce them should they arise. It will also have good systems to ensure that risks are identified early so that their impact is reduced. [In PCM this information is generated in Stage 3 'Formulation and Appraisal' under Assumptions in the logical Framework and recorded in the application form in Section 8 'Objectives and Outputs'].

7. MILESTONES, MONITORING AND MANAGEMENT

Milestones are key events that are critical to the successful delivery of a project. They should be used to monitor the project’s progress so that if progress slips management decisions can be taken as to how to bring the project back on course. Milestones will differ for different projects but will include the following types of key event: - - Appointment of staff - Purchase of equipment - Obtaining planning permission - Production of specification - Tendering of work - Start of contract - Completion of contract

How will the project be monitored and managed? Information should be provided on the systems to be put in place to monitor progress against milestones, cash flows and benefits and how problems will be

managed. It should also include who will be responsible for this work and how often updates will be provided to the partnership. [In PCM this information is generated in Stage 3 'Formulation and Appraisal' under Indicators and Source of Verification in the Logical Framework and Activity Plan and in the application form Section 10.3 and Annex 1 and 2].

8. EVALUATION

It is important that projects are evaluated so that the partnership can learn what works and what doesn’t. This learning needs to be fed into future project decisions.

How will you evaluate the success of the project and how will this link into the wider evaluation of the NDC programme in the area?

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Information should be provided on the proposed method and timing of the evaluation of the project. Evaluation is concerned with how well the project contributed to meeting the outcomes ie. long term impact rather than outputs or milestones. As there will be overall evaluation of each NDC area it is important to ensure the evaluation proposed for this project complements and does not duplicate that work or resources will be wasted. Consideration should be given to measuring how the project may have impacted differently on people of different ethnicity, age, disability etc. For many projects, particularly those which are expected to continue for several years it is worth including provision for interim evaluation so that the effectiveness of the project can be assessed as it develops. This allows changes to be made to improve its effectiveness sooner rather than later, if required. How will residents be involved in the evaluation? As the whole point of the NDC programme is to involve and benefit local people, it is vital that they are involved in the evaluation of projects. How will lessons learnt from the evaluation be passed on? It is important that systems are in place to pass the results of evaluation, back to local decision makers to ‘take on board’ in considering future projects. Information is therefore required on how this will be done for this project. In addition these findings may be relevant to mainstream service providers so ensuring they are informed is important. Have the cost of the evaluation been included in the overall project costs?

Yes / No If not why not? [In PCM this information is generated in Stage 3 'Formulation and Appraisal' and recorded in the application form in section 10.5 'Evaluation Requirements'].

9. THE FUTURE

One of the main objectives of the NDC programme is to get mainstream service providers to provide more and better services in NDC neighbourhoods. It is important to ensure that benefits provided though NDC projects can continue once NDC funding finishes. The following information is therefore needed:- - What will happen when the NDC funding finishes? How will the

benefits of the project be continued? If this has not yet been determined explain how and when this will be sorted out over the course of the project. This should include whether mainstream service providers will build the continuation of the project or the new ways of working into their long term service planning.

- How will any assets provided through the project be used when the

NDC funding finishes? Who will be responsible for their safe keeping and maintenance or disposal? If this has not yet been determined the way it will be sorted out and when, over the course of the project, should

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be explained. It is important that these decisions are not left til the last minute as this is likely to lead to poor decisions.

[In PCM this information is generated in Stage 3 'Formulation and Appriasal' and recorded in the application form in Section 9 'Sustainability' and section 11 'Finance'].

10. OPTIONS (FOR PROJECTS OF £1M OR LESS OF TOTAL PUBLIC

GRANT)

This section looks at the other options which were considered and why they were rejected in favour of the preferred option. For all projects with a total public grant cost of £1m or less the following information should be provided. For projects of over £1m the information in Section 11 should be provided. Relaxing the amount of detailed information required on options for projects costing less then £1m does not reduce the importance of assessing the alternatives rigorously and being sure that the best option has been chosen. Proper appraisal is an important tool for partnerships to work out what will achieve the best outcomes in their area. It is not just a bureaucratic requirement. For particularly complex or innovative projects costing less than £1m the Partnership may wish to do a more detailed option analysis as in Section 11. Options can be of very different types. In some cases the Delivery Plan will have been very specific on the type of projects needed. (For instance in reducing crime several projects may have already been identified such as more beat policemen, working with schools and the use of CCTV. If this is the case a particular project is likely to deliver one of these ideas. In such cases options will be to do with the amount and location of the provision. In other cases where the Delivery Plan is less specific options might include the comparison of extra beat police with CCTV.)

Where a project application has been received from an organisation or individual who has not considered options to their project the partnership may wish to consider whether there are sensible options which should be considered before the project is appraised. Finally where a partnership is using Project Cycle Management to design a project or group of projects the options will be other ideas which were considered within this process and rejected. These should be included as options in the appraisal to show that they had been tested. In such cases the relevant PCM documentation could be used provided it is clear why these options were rejected.

For some projects no options may have been considered. This may be because a project is looking for match funding from the NDC and there are no sensible options other than do nothing. Where this is the case it is only necessary to answer the question if no options considered explain why?

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For all projects the following question should be answered why is the preferred option better then doing nothing? This should include consideration of what would happen anyway without the project. This is important as money spent on a project which does not help significantly to meet desired outcomes is lost to other more productive uses. Where options were considered, which will be in most cases the following information is needed:- - Number or Name of option

This is just to help identify it

- Brief description of option - Benefits of option compared with the preferred one

This should outline how the benefits of this option differ from those of the preferred option. In many cases they will be similar so it is only the differences that need be mentioned.

- Total estimated cost of option - Total estimated NDC cost of option

- Value for money compared with the preferred option

This should outline how the VFM of this option differs from the preferred option.

- Risk of option compared with preferred option This should outline how the risks of this option differ from the preferred option

- Why rejected? Give a brief explanation of why this option was rejected.

[In PCM this information is generated in Stage 2 'Identification' and Stage 3'Formulation and Appraisal' and recorded in the application form in Section 3'Problems to be addressed'].

11. OPTIONS (FOR PROJECTS OF OVER £1M OF TOTAL PUBLIC

GRANT)

For such expensive projects it is important that full information on costs, benefits and risks is provided for each option. This is because they tend to be more complex and technical to assess against each other. Therefore for projects where over £1m of total public grant is required the following information is needed: - - Why is the preferred option better than doing nothing?

This should include consideration of what would happen anyway without the project. This is important as money spend on a project which does not help significantly to meet desired outcomes is lost to other more productive uses.

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- Number or Name of option For identification

- Brief Description of option

- Benefits of option (outputs and impact) This should be as in Section 2 for the preferred option.

- Linkages This should outline how this option differs from the preferred option.

- Cost / Value for money This should be as in Section 5 for the preferred option.

- Risk This should be as in Section 6 for the preferred option.

- Milestones, Monitoring and Management This should outline the differences from the preferred option.

- Why rejected? This should give the main reasons why this option was rejected. [In PCM this information is generated in Stage 2 'Identification' and Stage 3'Formulation and Appraisal' and recorded in the application form in section 3 'Problems to be Addressed' and Section 8 'Objectives and Outputs'].

12. MAIN REASONS FOR SELECTING PREFERRED OPTION

This should explain why the preferred option is regarded as better than the others and why it is better than doing nothing.

13. RECOMMENDATIONS

Once an appraisal has taken place it is important that the recommendations are written down. This may be to approve the project, reject the project, approve it with certain conditions or something else, for example work up an alternative option. The reasons for the recommendation should also be stated. In many cases this will simply be referring back to section 12. The appraiser(s) should also sign and date their recommendation.

14. DECISION

The partnership Board or sub group authorised to approve projects should note their decision and sign and date it. If the delegation limit is exceeded the project should be sent to the GO who should also note their decision and sign and date it. [In PCM this information is generated in Stage 4 'Commitment and Finance and recorded in Stage 4.2 the Appraisal Record].

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APPRAISAL PROCESS

In order to recommend whether or not a projects should be funded, the person or group carrying out the appraisal must use their judgement in assessing the information provided. This section provides a check list of the kinds of things which appraisers should weight up in making their recommendation. Project Purpose & Benefits 1. Is there a need for this project? Has the problem it addresses been clearly set

out? 2. Will the project contribute towards meeting Delivery Plan outcomes? 3. Is there a clear link between the project's outputs and the desired long term

impact or outcomes? 4. Who will benefit from the project? Is that satisfactory? Have some groups been

excluded? 5. Is there evidence from other evaluations on similar projects which provide

lessons relevant to this project? If so does this project need to be changed in any ways?

Community Involvement 6. Have local people (including people from ethnic minorities and other minority

groups) been sufficiently involved in the project? 7. Is there a clear way to involve different sections of the community in running the

project? (eg. people from different ethnic groups, older / younger people, men / women, people with disabilities etc)

Linkages 8. Will the project complement others in the area? 9. Does it fit in with regional and local strategies? 10. Will it be affected by particular local market conditions? Cost / Value for Money 11. Is NDC funding needed? 12. Does the project represent good value for money? Risk 13. Is the project deliverable? 14. Are all key risks identified? 15. Will too much of the benefit be lost to the area? 16. Are the ways of managing risk adequate? Milestones, Monitoring and Management 17. Are the milestones adequate to monitor progress? 18. Are monitoring & management arrangements adequate?

- organisation involved - funding available from other sources - delays

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Evaluation 19. Are evaluation methods adequate? 20. Do they fit in with NDC wide evaluations? The Future 21. Is there a clear strategy to continue the benefits when NDC funding finishes or a

clear plan to work this out over the course of the project? Options 22. Would one of the other options be better? 23. Is there another option not mentioned which could be better and should be

considered? Main Reasons for selecting Preferred Option 24. Are these correct? Conclusions Appraising projects is a matter of applying judgement. No project will be perfect in all respects. It is a matter of selecting the best available. However there are certain issues which should be taken very seriously and result in rejection of a project. These are:- a) The project not contributing to the Delivery Plan vision and outcomes b) The project not being deliverable or the risks to delivery being so great and

unmanageable that successful delivery is unlikely . c) The project not providing good value for money. d) The project going against local or regional strategies. In other cases the pros and cons need to be weighed up in taking a decision. In some cases a problem with a project can be reduced by putting a condition on how it is implemented. For instance if a small voluntary organisation with no track record is to deliver a project it may be asked to work with another organisation to ensure they can deliver, or a project may be recommended subject to it not proceeding until written confirmation is received from one of the funders. Such conditions will usually be related to reducing risk.

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APPENDIX 1

EXAMPLE OF AN NDC PROJECT APPRAISAL FORM

1. Project Information for the selected option

Project Name: Ref. No: Location / Address of Project: Length of Project: Organisation responsible for running the project: Project Officer: Address: Job Title: Tel. No: Fax No: E-Mail: Other parties involved and their role in the project: Brief Description of Project: Total NDC Cost: Total Project Cost:

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2. Project Purpose and Benefits The Need for the Project: (ie problem project will address & evidence of it) Project Description and Purpose:

(ie what it is, what it will do, how it will do it and how this will make a difference to the identified problem)

Who will benefit from the project?

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Project Benefits Outputs

List outputs in the section below if simple to describe and date. Alternatively if more complex use table 2 at the end. Output Date

1. 2. 3. 4. 5. . . . . Long Term Impact on the NDC Neighbourhood Delivery Plan Outcome How project will help achieve it 1. 2. 3. 4. 5. . . .

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Learning from other Projects

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3. Community Involvement (Consider people from different ethnic groups, different ages, men / women, people with disabilities etc) How have local residents been involved in developing the project?

What evidence do you have that there is demand for the project from local residents, workers or businesses?

How will local people be involved in the running of the project? How will you ensure all groups know about the project and will be able to benefit from it?

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4. Linkages How does this project link in with other projects in the area? (identify how it differs from or complements them)

Are there links to other regional or local strategies or particular market conditions which will affect the project? If so what are they? Partners involved, nature of their involvement and track record in running similar projects successfully.

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5. Cost / Value for Money

The costs included should be the total costs of carrying out the project. They should include for increases over the life of the project due to salary rises etc.

Breakdown of cost by Funder and Timescale (please complete table 5A) Breakdown of cost by Public Agency

(if public funding in addition to NDC provision is going into the scheme please complete table 5B)

How secure is the funding from other sources? What is being done to ensure these costs are met?

Breakdown of cost by use of funds (please list below how the money is to be used, eg. staff costs, equipment, management, evaluation, VAT etc.)

Use Amount How calculated Which agency to fund (if relevant)

Why is NDC funding needed?

How does this project represent good value for money?

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6. Risk Risks to project delivery Risks of loss of benefit to the area Ways the project will manage these risks

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7. Milestones and Monitoring Milestone Date How will the project be monitored and managed? (This should include progress against milestones, cash flow and benefits, who who will do it and how often).

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8. Evaluation

How and when will you evaluate the success of the project and how will this link into the wider evaluation of the NDC programme in the area? (Concentrate on long term impact not achieving outputs) How will residents be involved in the evaluation? Have the evaluation costs been included in the overall project costs? Y/N If not why not? How will lessons learnt from the evaluation be passed on?

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9. The Future

What will happen when the NDC funding finishes? How will the benefits of the project be continued? How will any assets provided through the project be used when the NDC funding finishes? Who will be responsible for their safekeeping and maintenance or disposal?

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10. Options (for projects of £1m of total public grant or less)

If no options considered explain why Why is the preferred option better than doing nothing? The following information is required for each realistic option considered: - Number or Name of option Brief description of option Benefits of option compared with preferred one Total estimated cost of option: Total estimated NDC cost of option: Value for money compared with preferred option Risks of option compared with preferred option Why rejected?

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11. Options (for projects of over £1m of total public grant) Why is the preferred option better than doing nothing?

The following information is required for each realistic option considered: -

Number or Name of option Brief description of option Benefits of option (outputs and impact) (as in Section 2 for preferred option) Community Involvement (differences from preferred option) Linkages (differences from preferred option) Cost / Value for Money (as in Section 5 for preferred option) Risk (as in Section 6 for preferred option) Milestones, Monitoring and Management (differences from preferred option) Why rejected?

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12. Main reasons for selecting preferred option? 13. Recommendations Recommendation of Appraiser: Reasons(s) for recommendation: Name of Appraiser(s): Signature(s): Date:

15. Decision

NDC Partnership Decision:

Signature: Date:

GO Decision (if above delegation limit): Signature: Date:

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APPENDIX 2

Project Cycle Management Documentation which may be used to

replace sections of the Project Appraisal Form If NDCs wish to use PCM documentation for project appraisal purposes they should check that the full requirements in chapter 4 are met in the PCM documentation below. The sections marked with a * indicate that they include information required for project appraisal.

PCM Application Form

1. Factual Information *

1.1 Project Title: (Give your project a clear name)

1.2 Contact person:

(Give the name of the contact person, address, phone number and email)

1.3 Address: (Make sure you provide the full postal address) Tel/Fax: Email:

1.4 Location of project:

(Describe where the project will take place and what area it will cover) 1.5 Duration of Project:

(Provide the estimated start and finish dates for the project) 1.6 Implementation Agency:

(Who is going to implement the project?) 1.7 Partners:

(Who are the main partners in terms of delivering the project?) 1.8 Total cost of project:

(Provide information on the total cost of the project, divided between capital and revenue. If the project is over one year estimate the annual requirements. Are you applying for the total cost from the NDC or is part of the cost being provided from elsewhere? If so, can you indicate the amounts provided from other sources and who they are).

2. Project Description *

(Provide a brief summary of the project to include what is to be delivered and what is the planned Project Purpose and Outcome)

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3. Problems to be addressed *

(Describe the actual problem(s) the project aims to overcome, these will already be described in the 2.3 Problems and Objectives Record which you can include here.)

4. Stakeholders *

(Describe who the project Target Group(s) is and who the other Stakeholders are. This information is already available in the 2.2 Stakeholder Record that you can include here.)

5. Local Setting

(Describes the relevant physical, social and economic environment of the geographical area with specific reference to the Target Groups’ situation and linkages to other initiatives and policy.)

8. Objectives and Outputs *

(Describe the Guiding Principles and Operational Criteria already developed in Stage 1 and explain how the project will contribute to them. Also, elaborate the Logical Framework, in the same order, but, where necessary, in more detail, especially the Outputs, Assumptions and Indicators. Refer to the Budget in Annex 3 linking activities with costs and sources of funds.)

8.1 Overall Outcome 8.2 Project Purpose 8.3 Outputs

(Include here all the information on assumptions, indicators, sources of verification and activities; do not include the financial information.)

7. Origin and Preparation of the Project *

(Describe how the problems were identified, who was involved and how the people involved developed the initial ideas for the project. Most of this information will be in 2.3 Problems and Objectives Record.)

9. Sustainability *

(Identify the sustainable flow of benefits that the Target Group(s) will experience and how this contributes to the Overall Outcome. If financial and/or technical support is required beyond the life of the funded project explain where it will come from.)

6. Relevant Policy Fit *

(From the Overall Outcome level of the project objectives and the Strategic Visions and Project Criteria, previously developed, describe which policies and strategy guides this project fits with.)

6.1 Strategic Visions 6.2 Project Criteria 6.3 Statutory Bodies

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Annex 1 Logical Framework * Annex 2 Activity Plan * Annex 3 Terms of Reference for the Evaluation

Annex 4 Evidence of Commitment

The write-up of the Project Proposal will include all the above information and try to be less than 20 pages.

10. Implementation Arrangements

(Describe the management arrangements, how the work will be organised, other inputs required and where from and assign responsibility. Also, describe any legal and technical information concerned with implementation. Reporting procedures should also be described in this section. If Activity Plans are available refer the reader to Annex 2.)

10.1 Management structure 10.2 Accountability and decision making 10.3 Project and financial monitoring system and schedule * 10.4 Partnership relations 10.5 Evaluation requirements *

11. Finance *

(Describe the cost of the project using the Budget Plan, the sources of finance and use the ratios to compare costs. These ratios can be used to compare costs with other similar projects and as a way of developing local benchmarks by building up a collection of ratios that can be used in the future.)

11.1 Budget Plan and Payment Plan 11.2 Financial Ratio Assessment

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PCM - Appraisal Record

1. Factual Information 1.1 Project Title: 1.2 Date: 1.3 Names of appraisers: 1.4 Theme: 1.5 Budget amount: 1.6 Duration of Project: 2. Summary of Conclusions Relevance Objectives to solve the Problems Stakeholders Feasibility Logical Framework Measurement Context Best Value Sustainability Level of Commitment Management Arrangements Quality of Project Proposal As a way of showing the relative conclusions of the appraisal the Appraisal Team may wish to use the scoring category below. Note: a = Fully: b = Fairly: c = Hardly: d = Not At All 3. Relevance

Relates to the importance of the problem to be addressed and for whom the project is relevant

3.1 Objectives to solve the Problems

(Are the problems clearly stated, Do they match the objectives? Is there evidence that the problems are important for the community?)

3.2 Stakeholders

(Are the all Stakeholders clearly identified and are they all relevant? Do the problems relate to the Stakeholders? Are the initial objectives acceptable to the Stakeholders? See Stage 2 Records)

4. Feasibility

(Is the project technically feasible? Is the project financially cost effective?)

4.1 Logical Framework (Are all the statements logically linked? Is there any thing missing from the Logical Framework?)

4.2 Measurement Context

(Does the project relate to any of the Strategy Visions or Project Criteria specified in Stage 1? Does the project fit with local, regional or national policy?)

File Number: Date: Author:

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4.3 Best Value (Analyse the project budget by using ratios to work out a range of costs and how they compare with previous or similar projects. Identify the level of leverage and other contributions to the project and the recurrent costs and evidence of who is likely to pay for the on-going expenditure. See Stage 3 Records.)

5. Sustainability

(Are the project benefits likely to last much longer than the project? Are they likely to solve the identified problem(s)?)

5.1 Level of Commitment

(Relates to the range, type and level of commitment to the project by other partners, have they agreed in writing or verbally? See Stage 3 Records)

5.2 Management Arrangements

(The appraisal will have to gauge the experience, background, the technical expertise and the management capacity of the agent. Also, the relationship of the agent with the community and the decision-making and monitoring systems it operates. See Stage 3 Records.)

6. Quality of Design – Objectives and Outputs

(Relates to whether the project objectives can be effectively achieved. Using the three Checklists: Relevance, Feasibility and Sustainability, the Team can appraise the quality of the Project Proposal.)

7. Decision * (Note the partnership's decision, who took it and when.)

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Appendix 3 NDC Standard Outputs and their Definitions Notes 1. Several definitions refer to ‘the number of people from the NDC area or

wider if specified in the project brief’. For most schemes it will be people from the NDC area that should be counted in measuring outputs. However in some cases there may be good reasons for an NDC project to provide for people from a wider area, possibly for reasons of community cohesion. This form of wording allows the NDC to decide which area is relevant for each of their projects. (If in doubt though use people from the NDC area.)

2. When counting beneficiaries people should be counted once, when they become engaged in a project rather than each time they attend.

Standard Outputs Output Code

Output Name and Definition

1 Number of local people going into employment (FTE) Definition: This relates to the number of people from the NDC area or wider area, if specified in the project brief, who have obtained a paid job as a result of an NDC subsidised activity. It is calculated in full time equivalents (FTE). A full time job is one that involves working a 30hour week or longer, excluding breaks. For part time work the full time equivalent is as follows: Hours worked Full time equivalent 3 or more but less than 6 0.1 6 or more but less than 9 0.2 9 or more but less than 12 0.3 12 or more but less than 15 0.4 15 or more but less than 18 0.5 18 or more but less than 21 0.6 21 or more but less than 24 0.7 24 or more but less than 27 0.8 27 or more but less than 30 0.9 30 or more 1.0

2 Number of people employed in voluntary work Definition: Number of people from the NDC area or wider if specified in the project brief, who are carrying out unpaid work voluntarily as the result of an NDC subsidised activity, regardless of the number of hours worked.

3 Number of people becoming self employed Definition: Number of people from the NDC area or wider if specified in the project brief, who have become self employed, ie who have registered with the Inland Revenue as self employed and who pay class 2 National Insurance contributions, as the result of an NDC subsidised activity.

4 Number of people receiving job training Definition: Number of people from the NDC area or wider, if specified in the project brief, who have received some form of training designed to help them obtain a job, as the result of an NDC subsidised activity.

5 Number of person weeks of job related training provided

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Definition: A week of training is calculated on the same full time equivalent basis as in 1 above. So if 30 people attend a training course for half a day each week (4 hours) for 10 weeks, that equates to 30 person weeks of training. (30 x 0.1 x 10). Job related training is any training, which is designed to help someone obtain a job or a better job, as the result of an NDC subsidised activity.

6 Number of people trained entering work Definition: Number of people from the NDC area or wider, if specified in the project brief, who received job related training and then obtained paid employment or became self employed, as the result of an NDC subsidised activity.

7 Number of people accessing improved careers advice Definition: Number of people from the NDC area or wider, if specified in the project brief, who received additional careers advice to that normally provided by existing service providers due to an NDC initiative.

8 Number of new businesses started up Definition: Number of new businesses created as a result of any NDC supported activities.

9 Number of new businesses surviving 52 weeks Definition: As 8 but excluding those, which cease to trade within 52 weeks of setting up.

10 Number of new businesses receiving advice/support Definition: Number of new businesses that receive advice or support from an NDC supported activity.

11 Number of jobs safeguarded Definition: Number of jobs in terms of full time equivalents, as in 1 above, that were expected to be lost in the NDC or wider area if specified in the project brief, but were retained due to an NDC supported activity.

12 Number of new childcare places Definition: Number of new nursery or other forms of registered childcare places available to children in the NDC area to facilitate their parents obtaining work. This should be measured in FTE as in 1 above.

13 Number of pupils benefiting from projects designed to improve Attainment Definition: Number of pupils living in the NDC area or wider if specified in the project brief who have benefited from an NDC supported initiative designed to improve key stage achievement.

14 Number of teachers / teaching assistance attracted or retained in schools serving NDC children. Definition: Number of teachers or teaching assistants, measured in FTE as in 1 above employed or persuaded to remain working in schools serving NDC children as the result of an NDC subsidised activity.

15 Number of schools physically improved Definition: Number of schools used by children resident in the NDC area that have had physical improvements as a result of NDC supported activities.

16 Number of adults obtaining qualifications through NDC projects, accredited Definition: Number of people from the NDC area or wider if specified in the project brief who have received an accredited qualification as a result of an NDC supported activity.

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17 Number of adults obtaining qualifications through NDC projects, non accredited Definition: Number of people from the NDC area or wider if specified in the project brief who have received a non accredited qualification as a result of an NDC supported activity.

18 Number of grants / bursaries awarded for study purposes Definition: Number of grants awarded to people from the NDC area or wider if specified in the project brief who have received financial assistance to help them undertake a study course as a result of an NDC supported activity.

19 Number of homes / businesses with improved security Definition: Number of individual homes or businesses that have undergone work to improve their security as a result of an NDC supported activity.

20 Number of additional police Definition: Number of additional police officers, in terms of full time equivalents, as set out in 1 above, policing the NDC area as a result of an NDC supported activity.

21 Number of additional wardens Definition: Number of additional neighbourhood or street wardens or Police Community Support Officers, in terms of full time equivalents, as set out in 1 above, providing a service in the NDC area as a result of an NDC supported activity.

22 CCTV cameras monitored and installed Definition: Number of CCTV cameras in operation in the NDC area, or wider if specified in the project brief, as the result of an NDC subsidised activity.

23 Number of victims of crime supported Definition: Number of people from the NDC area who have been the victim of crime and who have received support as the result of an NDC subsidised activity.

24 Number of young people benefiting from youth inclusion/diversionary projects Definition: Number of young people (ie under 18) from the NDC area or wider if specified in the project brief, who have taken part in activities designed to involve them in community or provide them with things to do, which may reduce them from ‘hanging around’, as the result of an NDC subsidised activity.

25 Number of new or improved health facilities Definition: Number of new or improved health facilities provided mainly for the benefit of NDC residents as the result of an NDC subsidised activity.

26 Number of people benefiting from new or improved health facilities Definition: Number of people from the NDC area who have benefited from a new or improved health facility provided as the result of an NDC subsidised activity.

27 Number of people benefiting from healthy lifestyle projects Definition: Number of people from the NDC area who have participated in projects to improve their health through lifestyle changes such as healthier eating, smoking cessation and increased exercise, as the result of an NDC subsidised activity.

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28 Number of homes improved or built Definition: Number of homes in the NDC area which have been built or improved to contribute toward meeting the decent homes standard as the result of an NDC subsidised activity.

29 Number of traffic calming schemes Definition: Number of schemes designed to reduce the volume or speed of vehicles in the NDC area as the result of an NDC subsidised activity.

30 Number of new or improved community facilities Definition: Number of new or physically improved community facilities (incl leisure, sport or cultural but excluding health facilities which are covered in 25) as the result of an NDC subsidised activity.

31 Number of people using new and improved community facilities Definition: Number of people from the NDC area or wider if specified in the project brief, that use the new or improved community facilities provided as the result of an NDC subsidised activity. This should be expressed in terms of number of people per month.

32 Number of community/voluntary groups supported Definition: Number of community or voluntary groups which provide a service to residents within the NDC area which have been supported as the result of an NDC subsidised activity.

33 Number of community chest type grants awarded Definition: Number of small grants provided to NDC residents to fund ways to involve people in the work of the NDC or to help it achieve certain outcomes.

34 Number of project feasibility studies funded Definition: Number of grants provided by the NDC for individuals or groups to work up project ideas in order to check their feasibility for higher levels of funding.