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. Pass It On Center - AT Reuse Strand 2

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6. Source: www.cartoonstock.comwww.cartoonstock.com

7. Similar Discussion at ATIA in Chicago— 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.

8. 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.

9. 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

10. 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

11. 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

12. Kansas Reuse Program ROI

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

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

15. Comparison of Quarterly ROI

16. Collection Drive ROI

17. Collection Drive Adjusted ROI

18. 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.

19. Collection Drive Complex ROI

20. 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

21. 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)

22. Church Collection Drive Collection Drive Atlanta, Georgia Costs Personnel$540 Travel$10 Supplies$15 OtherTruck & Fuel$260 Advertising$50$310 $875 AssetsDME N=101$15,000 Computers N=500 Donations$100 $15,100 Collection Drive ROI$16.70 *ROI = Assets - Costs/Costs

23. STAR Network Items: 3 yr Grant Period Year 2009-2010 Total thru 6/31/10 Costs3 Year STAR Grant Award$587,703 Assets Payment for Reused Items5% MSRP$70,554 Computers and AT items836 Manual Wheelchairs320 Powered WC and Scooters63 Hospital Beds40 Daily living and bathroom aids894 Vision Products7 Environmental Products1 Recreational Products7 Total Reused Items216855%MSRP$775,161$845,715 * $1,409,384 - MSRP value of products January 2007 through June 2010 ** $70,554 - Reuse value of products paid by consumers Resulted in 5% of MSRP value was cost to consumers 55% MSRP55% MSRP value of products - January 2007 through June 2010 = $775,161 ROI = Assets - Costs/Costs $1.40 ROI Does not include jobs created, infrastructure development and training given to consumers and materials development.

24. Recommendations for Future Work in ROI Consider factoring in costs savings/benefits of: Prevention of injuries from falls Reduction in number of emergency room visits Increased independence/less personal assistance Reduction of work absence by having back-up/secondary equipment Value of increased time producing homework with refurbished laptop Calculation to determine value of waste kept out of landfills or value of repurposed scrapped materials.

25. 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

26. Thank you for attending this session. Watch for us in Chicago this November! Please help us improve the quality of our conference by completing your session evaluation form. Completed evaluation forms should be submitted as you exit or to staff at the registration desk. Thank You!