1. Return on Investment and Budget Development for Reutilization Programs Joy Kniskern, Georgia Dept. of Labor/Tools for Life and Sara Sack, Assistive Technology for Kansans

2. Source: www.cartoonstock.comwww.cartoonstock.com

3. Similar Discussion at ATIA in January— But Even More Important Now….Why? Always important to run an efficient, effective operation More likely to be asked to demonstrate your program’s effectiveness Sept. 14, 2010 Sunshine Review report—Budgets for FY2011 are even more difficult than 2010 Yolanda Kodrzycki, an economist at the Federal Reserve Bank of Boston, told the National Governors Association meeting in July 2010 that budgeting for next year would be "just as tough" for state budget makers.

4. Cost Benefit, Simple ROI, ROI/Business Case: What Are We Talking About? Similar but slightly different terms Cost Benefits – a general list. ROI – performance measure to compare efficiency of different investments. ROI/Business Case – stated definitions and assumptions and yields some insights on how to improve business in the future.

5. Simple ROI Calculation ROI = (Gains from investment – Cost of investments) divided by Cost of investment Which is a better investment? $1,000 that earns $50 $100 that earns $20

6. Simple ROI Calculation $1,000 that earns $50 ($1050 - $1,000)/ $1000 =.05 or 5% ROI $100 that earns $20 ($120 - $100)/$100 =.20 or 20% ROI

7. Before You Start Your Calculations 1. List your costs 2. List your benefits 3. State your definitions and focus 4. Think about what a “good” return would be…. Kansas legislator when talking about another program was pleased with a $2 return State your goal for a return

8. Kansas Reuse Program ROI

9. Simple ROI: Regional Data (3 rd Q)

10. Simple ROI: Regional Data (4 th Q)

11. Comparison of Quarterly ROI

12. Collection Drive ROI

13. Collection Drive Adjusted ROI

14. Collection Drive Complex ROI Assumptions/Benefits Accept only lightly used, high cost or bariatric DME. Increased DME provider and network partner involvement. Increased public’s awareness of program resulting in increased donations and requests.

15. Collection Drive Complex ROI

16. Practice Calculating Simple ROI ROI = (Gains from investment – Cost of investments) divided by Cost of investment A B C D Total Expense 28,036 121,306247,487 50,850 Net Income (199) 00 0 Value11,045273,513895,482 551,897 ROI

17. ROI is a Useful Tool for: ROI is a useful tool for making program decisions. Consider conducting ROI for: pickup and delivery, shipping, collection drives, methods of cleaning and sanitization (volunteers, paid staff, contractor, purchase of sanitizing equipment)

18. Questions? Joy Kniskern, 404-638-0387 or joy.kniskern@dol.state.ga.us joy.kniskern@dol.state.ga.us Sara Sack, 620-421-8367 or ssack@ku.edu

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