Checkpoint

Check Point: Cost Per Output and Cost Per Outcome HSM/260 Andrea Peleg Christine Navarro August 25, 2011 Check Point: Cost Per Output and Cost Per Outcome Christine Navarro The reason for cost per output and cost per outcome calculations being valuable to a human service agency is because the money that is being used to service the targeted population is being funded by the government, state, donations, city and/or public funds and the organization has to break the money smoothly. Human service agencies have very little money to run their agency; therefore they depend on other funding sources to continue their services. The cost per outcome and cost per output allows the funders to view what their money is being used for what program and will evaluate if in the future to continue funding the same agency for the same program. If a human service agency does not determine the cost per output and cost per outcome the agency would not be able to determine the amount spent per unit of performance measure. For example in a Feed the Hungry Agency they would not be able to determine the deriving cost per one meal and may not be able to control the estimating number of clients that the program will accommodate. The agency can loose the grant/budget for the following year and their agency may have to close down. The government/state contract may be misused by the agency in providing servicing and pricing appropriately. The financial management department uses cost per output and cost per outcome as a tool to identify the amount they have to spend on program(s) and the number of client/participants that are assisted when provided such program(s).