Nutrition
Evaluations Report
V. PROGRAM FUNDING, COSTS, AND EFFICIENCY
A. COST OF TITLE III MEALS Part 1
The services provided by the Elderly Nutrition Program (ENP) are
defined by legislative authority but are shaped in large part
by the costs associated with providing such services and by the
diverse funding structure of the program. This chapter examines
these factors. Section A provides estimates of the costs of providing
ENP meals. Section B discusses program funding. Sections C and
D discuss the transfer of funds among different parts of the Title
III program.
A. COST OF TITLE III MEALS
The evaluation's cost analysis of meals provided under the ENP
studied the key factors most likely to affect meal costs and program
efficiency. After calculating unit costs of congregate and home-delivered
meals, we examined the degree to which costs varied by program
size, setting (urban or rural), and geographic location of the
project, as well as by the type of meal preparation method used
by the project. We also conducted a regression analysis to jointly
examine the effects of these factors on meal costs. We found that
project size and the geographic location of a project were key
indicators of meal costs. In addition, only a slight difference
existed between the cost of a congregate meal and a home-delivered
meal.
In this section, we discuss the methodology used in collecting
the cost data. Next, we present average meal costs and average
meal costs by selected nutrition project characteristics. Results
of a regression analysis are then presented to examine further
the effect of these characteristics on average meal costs. We
conclude the section with a discussion of nutrition projects'
perceptions of the cost of the special meals they provide to participants.
1. Methodology
Two main principles guided the development of the methodology
for the cost data collection process. First, the process required
a random sample of projects from which to collect the data. After
these projectswere selected, the cost data collection focused
on one randomly selected congregate and home-delivered meal distribution
site within each project. Second, the data collection methodologies
at each site had to be consistent to provide uniform data, so
that costs across sites could be averaged. The sampling methods
are discussed in detail in Volume III, Appendix A. Here, we provide
a brief overview of the data collection process.
In collecting the cost data, we tried to achieve uniform cost
measures for all nutrition projects in the sample. Thus, we requested
a standard set of information on the resources that projects used
at the individual sites in preparing and delivering meals. ENP
nutrition project staff recorded these data on cost data collection
instruments, which were developed for the ENP evaluation and mailed
to sites. In addition to other items, these instruments requested
information on such meal components as the staff and volunteer
time used to plan, cook, serve, and deliver the meals and each
staff member's wages and fringe benefits; the cost of the food
ingredients or payments made to vendors for already prepared meals;
the cost of supplies and equipment used in preparing meals; and
the number of meals served or delivered by the selected sites
in an average week. [ Nutrition projects do not always allocate
nonlabor costs to individual sites. Thus, although the cost data
collection focused on a particular congregate and home-delivered
site at each project, the nonlabor costs were most often collected
for the overall nutrition project and allocated to the site in
proportion to meals it served or delivered.]
The data forms filled out by the projects were then mailed or
faxed to MPR, where they were reviewed by MPR analysts, who made
follow-up calls as necessary to clarify any possible problems.
[ The analysts who performed this work were individuals with master
's degrees with several years of policy analysis experience.]
With these detailed data collected for each project, the MPR analysts
could be reasonably confident thatconsistent data had been collected
for each project. [ We received complete cost data for 178 Title
III projects. Of the 272 projects in the original sample, 26 were
found to be ineligible because they were not, in fact, elderly
nutrition projects. (As discussed in Volume III, Appendix B, many
of these organizations turned out to be sites that had been mistakenly
included in the project sample from data supplied by the Area
Agency on Aging [AAA].) Thus, the final completion rate of the
eligible sample was 72 percent (or 178 completes). Of these 178
projects, 170 operated congregate meal sites, and 156 operated
a home-delivered meal program. ] Then, using the costs of these
meal components, the analysts calculated (or "built up")
the total cost of preparing and serving (or delivering) meals
at a particular project. The cost per meal for a particular site
was calculated by dividing the weekly meal program costs by the
number of meals served (or delivered) in the same week.
2. Analysis of Title III Nutrition Projects Average Meal Costs
The average full costs of a congregate meal and a home-delivered
meal, including volunteer labor and donated food or space, were
$5.17 and $5.31, respectively (see Table V.1). [ These are weighted
averages. For a discussion of the weighting algorithm, see Volume
III, Appendix C.] Paid labor accounted for 35 percent of the full
cost of a congregate meal and 37 percent of the full cost of a
home-delivered meal. Most paid staff members worked at the meal
sites and were involved in preparing or serving the meals. Transporting
meals to homes in the home-delivered meal program cost an average
of 34 cents, or 17 percent of paid labor costs paid. Food costs--ingredients
or payments made to vendors for already prepared meals--were approximately
$1.75 in both programs.
TABLE V.1
AVERAGE COST PER TITLE III CONGREGATE AND HOME-DELIVERED MEAL (In Dollars)
Cost Component
| Title III Congregate
Meals
| Title III Home-Delivered
Meals
|
Total Labor Costs
| $2.22
| $2.43
|
Paid Labor
| 1.79
| 1.96
|
Site
| 1.18
| 1.04
|
Central kitchen
| .11
| .13
|
Central administration
| .47
| .42
|
Transportation to site
| .04
| .03
|
Transportation to homes
| NA
| .34
|
Volunteer Labor
| .43
| .47
|
Site
| .42
| .10
|
Central kitchen
| *
| *
|
Central administration
| .01
| .01
|
Transportation to site
| *
| *
|
Transportation to homes
| NA
| .36
|
Total Nonlabor Costs
| 2.95
| 2.88
|
Foods/Vendor
| 1.74
| 1.72
|
Supplies
|
.13
| .11
|
Rent
| .14
| .13
|
Insurance/Utilities
| .30
| .30
|
Equipment
| .26
| .30
|
Other Costs
| .11
| .06
|
Donated Food/Space
| .28
| .26
|
Total Paid Costs
| 4.46
| 4.57
|
Total Costs (Paid and Nonpaid)
| 5.17
| 5.31
|
Unweighted Sample Size
| 170
| 156
|
Source: Elderly Nutrition Program Evaluation, cost data collection instruments, weighted tabulations.
* = Less than one cent.
NA = Not applicable.
Nutrition projects relied heavily on volunteer labor and donations
to obtain additional resources to provide meals to their clients,
and the full cost estimates cited here include the value of these
resources. When only direct monetary costs are considered, the
average costs were $4.46 for congregate meals and $4.57 for home-delivered
ones. Volunteer labor accounted for much of the differences. Most
projects employed volunteers in the kitchen to help with food
preparation, in the dining rooms to help serve the congregate
meals, and as deliverers of meals to individual homes. In-kind
contributions mostly involved space donated or leased at very
low prices for use by the nutrition projects.
TABLE V.2 TITLE III PROJECT DISTRIBUTION OF AVERAGE COSTS PER MEAL
(Percentage of Projects)
|
Title
III
Congregate Meals
| Title
III
Home-Delivered Meals
|
Cost per Meala
|
Less than $3.00
| 7.7
| 4.0
|
$3.01 to $3.50
| 13.6
| 12.5
|
$3.51 to $4.00
| 12.8
| 9.8
|
$4.01 to $4.50
| 11.5
| 16.1
|
$4.51 to $5.00
| 9.1
| 8.5
|
$5.01 to $5.50
| 13.3
| 11.8
|
$5.51 to $6.00
| 5.9
| 13.2
|
$6.01 to $6.50
| 5.2
| 2.9
|
$6.51 to $7.00
| 3.7
| 4.8
|
$7.01 to $7.50
| 3.8
| 4.2
|
$7.51 to $8.00
| 3.4
| 0.8
|
More than $8.00
| 10.1
| 11.2
|
Average Cost
| $5.17
| $5.31
|
Median Cost
| $4.69
| $4.74
|
Unweighted Sample Size
| 170
| 156
|
Source: Elderly Nutrition Program Evaluation, cost data collection instruments, weighted tabulations.
a Includes all paid and nonpaid costs, including volunteer labor and donations.
Average meal costs showed a broad distribution among the 170 congregate
programs and 156 home-delivery programs included in the cost study.
For both congregate and home-delivered meals, Figure V.1 shows
that the average meal costs, including volunteer time and donated
supplies, were clustered between $3.00 and $6.00. There were outliers
at both extremes, however; the maximum congregate meal cost reported
was $14.20, and the minimum was $1.65. About 10 percent of the
congregate programs and 11 percent of the home-delivered meal
programs reported an average meal cost that was more than $8.00
(see Table V.2). The average cost of the congregate meals ($5.17)
was higher than the median cost ($4.69), demonstrating the effect
of these more expensive outliers. [ These outliers were retained
in the cost analysis data file, after the data were checked through
a four- step process. First, when the completed cost data collection
instruments were returned to MPR, the cost analyst processed the
data and noted any problems or irregularities in the data. Second,
the cost analyst conducted a follow-up telephone call with the
respondent to clarify or revise the data and record explanations
for any data that appeared questionable. Third, one of the evaluation
's principal investigators reviewed the final calculations that
resulted in the project 's cost per meal and directed the cost
analyst to follow up again with the respondents if any questions
were still unanswered. Fourth, the cost analyst made a final telephone
call to the respondent to clarify further or revise the cost data.]
Average paid costs of a congregate and a home-delivered meal were
slightly higher than the costs calculated by Kirschner (1981).
(See Table V.3.) According to the Kirschner study, the average
paid cost of a congregate meal was $3.86, or 13 percent lower
than the cost per meal calculated in this study. [ Data for the
Kirschner report were collected between January and April 1981.
We constructed an index to inflate the data to December 1994 dollars.
] The cost of a home-delivered meal was calculated at $4.42 in
the Kirschner study, only 15 cents less than the cost per meal
calculated in this evaluation.
TABLE V.3 COMPARISON OF TITLE III AVERAGE MEAL COSTS
(In Dollars)
|
Title III
Congregate Meals
| Title III
Home-Delivered Meals
|
Paid Costs
|
|
|
MPR
| $4.46
| $4.57
|
Kirschnera
| 3.86
| 4.42
|
All Costs, Including Volunteer Labor and
Donations
|
|
|
MPR
| 5.17
| 5.31
|
Kirschnera
| 5.09
| 6.14
|
Sources: Elderly Nutrition Program Evaluation, cost data collection instruments, weighted tabulations; Kirschner et al. (1981).
a Cost data from Kirschner (1981) have been inflated to December 1994 dollars.
Both sets of analyses also showed that home-delivered meals cost
more than congregate meals. However, our data show that, on average,
the home-delivered meal cost only 11 cents more in paid costs
than a congregate meal and only an additional 3 cents in donated
or volunteered costs. Kirschner's results Sindicated that the monetary and
nonmonetary cost of a home-delivered meal is, on average, 20 percent
(or $1.05) more than a congregate meal. Kirschner's study attributed
most of this difference to the increased cost of packaging and
shipping the meals to individual homes. However, our analysis
suggests that, while the home-delivered meal programs incurred
significant costs transporting meals to homes, they incurred significantly
less on-site staff costs than congregate programs--thus requiring
relatively few on-site staff to operate the home-delivered programs
and offsetting the transportation costs.
Last Modified: 1/15/2009 11:05:58 AM |
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