Concept Approval and Business Case - Department of Treasury

Strategic Asset Management FrameworkApplicationSAMF therefore provides supplementary guidelines to support the main ACA andbusiness case method. The guidelines clarify, for example, the unique issues thatshould be addressed for ICT assets, for non-residential buildings, or to ensure thatland assembly issues are well covered in a business case to acquire or dispose ofa facility [forthcoming hyperlinks].To assist the proponents and reviewers of asset investment proposals to apply theSAMF model, the remainder of this module clarifies the sorts of key issues andquestions that should be addressed in each section of an ACA or business case.The shared objective should be to clarify the expected results, significant risks,and necessary action from the government’s perspective, as the investor onbehalf of the taxpayer.Executive SummaryThis section should outline: the purpose of the investment, the business problemthat would be addressed; the pros and cons of the recommended and alternativeoptions; and the key approvals and next steps.Clear advice should be provided on:• the most cost effective investment option that would best serve thegovernment’s policy, and an agency’s service delivery objectives; and the• alternative options, should decision-makers conclude that the first option doesnot have priority for investment at the levels of expenditure and risk proposed,or should future financial, economic or other capacity constraints preclude it.Examples of key approvals and next steps include that: action should commenceto acquire a parcel of land for the asset as a matter of priority; and that formalnegotiations should start with stakeholders.The advice should be presented in summary, rather than argued. The informationin the remainder of the ACA or business case should provide the necessarybacking.16Exposure Draft – December 2010