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This Eight Section Financial Analysis Tool is to support better decision-making ensuring that resources are effectively allocated to support the organizations vision, mission and goals. Often projects should not be completed unless organizations perform a financial analysis. The tool not only has the necessary spreadsheets to perform the calculations, it also provides an overview of the process and a sign-off page. The image on the right is the sign-off page. It displays the results of all the analyses from the previous spreadsheets; ultimately recommending a "go" or "no-go" financial decision. Additionally, this analysis provides a way to identify (and quantify) intangible benefits. |
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WORK SHEET OVERVIEW |
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| Section | Worksheet | Purpose | Optimal Team | What You Need |
| 1 | Staff Costs | To gather the names, loaded rates and Cost Centers for all staff involved in the project. | Business Analyst, IT Analyst, Project "Owner" | Who is going to be working on or impacted by the project, by how many hours and at what rate? |
| 2 | Staff Hours | To assist in planning the total amount of all staff hours involved. | ||
| 3 | One-Time Costs | To determine the one-time costs involved in completing a project. | Estimation of hard costs by project step. | |
| 4 | On-Going Costs | To determine the total costs of a project over time. | Estimation of maintenance and revision modes. | |
| 5 | Tangible Benefits | To provide a reasonable monetary estimate of the project's benefits. | Estimation of avoided costs, potential fines, savings, generated revenues, etc. | |
| 6 | Intangible Qualities | To help determine how important intangible qualities are to the service provided by the project. | Business Analyst, Project "Owner," other appropriate interested parties | Qualitative data surrounding the service provided in relation to the strength of qualilties offered by the proposed project. |
| 7 | Intangible Scoring | To provide a relatively subjective analysis of a comprehensive set of intangible qualities. | ||
| 8 | Sign-Off | To provide a one-page summary and approval process for proposed project cost benefit analyses. | Business Chief & Analyst, IT Chief & Analyst, Department Budget Analyst, Director (if over $XX,XXX) | Costing detail, approval authority. |
| 9 | Categories | Background definitions provided for information only. | n/a | Provided for information only. |