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Measuring Finacial Outcomes. The ROI of AE. Linda Asche, St. Louis Park Community Education. Revenue /Expenditure Model. On the surface, successful financial management of AE requires a positive net profit margin: the proverbial bottom line. - PowerPoint PPT Presentation
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The ROI of AE
Measuring Finacial Outcomes
Linda Asche, St. Louis Park Community Education
Revenue /Expenditure Model•On the surface, successful financial management of AE requires a positive net profit margin: the proverbial bottom line. •If we show a profit after every tuition dollar is tallied and every expense is paid for, we’ve survived to coordinate another semester.
An holistic view of assets
What if we don’t show a positive net margin? Consider intangible assets:• Taxpayer approval of local referenda• Volunteerism • Stable housing prices
Intangible assets
•Goodwill is intangible, not fictitious•Intangible does not mean un-measurable•Goodwill is the present value of anticipated earnings
ROI of AE: Real $$ from Goodwill
Adult EnrichmentRevenues $185,000 Expenses $200,000Total ($15,000)
Annual district income from Operating Levies$3,400,000
Annual value of district volunteerism $157,000Total $3,557,000
What % of $3,557,000 does AE contribute?
Can we make a case for 1%? Consider the Decision Resources data:
Community Education program users are 14% more supportive of referendum proposal than non-users. These gains are also realized among all age groups and household types. More striking, though, Community Education programs users are three-times more likely to be "strongly" supportive of referendum efforts. In fact, among seniors over the age of 65, a solid majority of program users support referenda; among non-users, seniors oppose referenda by a two-to-one majority.
Does AE contribute 1% ??
1% of annual referenda and volunteer revenue in St. Louis Park = $35,570
The Formula
ROI = gain from investment–cost of investment cost of investment x 100
$35,570– $15,000 $15,000 = 1.37 – that’s a 137% return on the dollar
Goodwill
Goodwill shows up as an asset on a balance sheet. Given the same annual profits and operating expenses, goodwill generated by AE looks like this:Revenue: $35,570Expense: $15,000Profit: $20,570
ROI analysis in YOUR district•Expenses
•What kind of dollar amounts can you attribute to intangible assets?
