Financial case

In the financial section of a Green Book business case for improving Wi-Fi, the focus is on the financial feasibility, affordability, and funding implications of the project. This section needs to present detailed cost estimates by financial year, funding sources, and an assessment of financial risks.

Examples of sections and content to include:

Capital costs: provide a detailed breakdown of upfront costs, including:

• hardware - costs for access points, routers, servers, cables, and other infrastructure components
• software - licenses for network management software, security tools (such as firewalls, encryption), and monitoring systems
• installation and setup - costs for site surveys, installation labour, network configuration, and testing

Operating costs: outline ongoing costs over the project's life cycle, such as:

• maintenance and support - annual fees for technical support, software updates, and hardware maintenance
• staff training - costs for training IT staff and healthcare professionals on the new Wi-Fi system
• utility costs - increased electricity consumption due to additional network equipment

Contingency budget: include a contingency reserve (typically around 10% of the total costs) to cover unforeseen expenses, such as network upgrades or unexpected technical challenges.

Funding sources: identify potential funding sources, such as:

• internal funds - budget allocations from your organisation’s capital or operational budgets
• external funding - grants or funding programmes (such as NHS England’s transformation funds or government infrastructure grants) that support digital infrastructure projects in healthcare

Leasing or financing: explore options for leasing equipment or using finance plans to spread costs over time, making the investment more affordable in the short term.

Cash flow analysis: provide a cash flow forecast showing the timing of expenditures. Include a year-by-year breakdown of costs to ensure your organisation can afford the project over its life span.

Return on investment (ROI): if applicable, estimate the ROI by comparing the project's financial benefits (such as operational efficiencies, cost savings) to its total costs. This might include savings from reduced paperwork, improved resource allocation, or avoiding costs related to network outages.

Payback period: calculate how long it will take for the benefits of improved Wi-Fi to cover the initial investment costs. A shorter payback period can potentially indicate a more financially sound project. This can be a complex and organisationally derived consideration (that is, the appropriate payback period may well differ between organisations).

Budget impact: assess the impact on your organisation’s current and future budgets. Confirm that sufficient funds are available for both the initial investment and ongoing operational costs without compromising other critical services.

Cost-saving opportunities: highlight areas where the improved Wi-Fi could lead to cost savings. Examples include reduced paper use through digital records, decreased reliance on physical networks, or lower administrative overheads due to streamlined processes.

Financial risks: identify potential financial risks, such as cost overruns, inflationary impact, exchange rate fluctuations, unexpected maintenance expenses, or delays in implementation that could increase costs.

Mitigation measures: outline strategies to manage financial risks, including fixed-price contracts with vendors, phased implementation to control spending, and regular financial reviews.

Contingency fund: specify the size of the contingency fund set aside to cover unforeseen costs and detail when and how this fund might be used.

Discuss the system’s long-term financial sustainability, including potential savings from improved operational efficiencies, reduced IT support needs, or future-proofing the network to avoid costly overhauls.

Asset management: include plans for equipment depreciation and eventual replacement or upgrades, indicating how you manage these costs in the future.

Include consideration of software licencing costs, support models and durations.

Investigate the availability of funding or support for digital projects available from NHS England or other areas of local or national government.

Engage with your organisation's finance department to understand what information and level of detail would be expected for your business case, and if they have templates or guidelines on what information must be included. This will differ based on total spend and local governance requirements. 

Engage with host finance team with regard to:

• capital
• revenue
• VAT
• timings for approval process
• asset register
• financial years (single/multiple)
• ongoing or additional revenue charges
• future years decommissioning