2021-10-12 P&E Agenda - Item 10 - Attachment 1 - Social Return on Investment Evaluation

A                     B                            C                   D                              E                  F                  G                H               I                 J
Focus area            Output / benefit             No. of units 1      Value or                       Interim Value      Deadweight   2     Attribution      Drop off 3      Displacement 4    Value /
                                                                       Financial proxy                                   Would have         Allowing for     Extent of       Benefit taken     impact
                                                                                                                         happened           external         estimate        from
                                                                                                                         anyway             assistance/      decline at      somewhere else
                                                                                                                                            factors          12-month
                                                                                                                                                             mark
                      Total Social Return on Investment calculation/ total (2020-21) no grants                                                                                                 $4.8m
                      Total Social Return on Investment calculation/ total + value of grants (for 2020-21)                                                                                     $8.65m


Notes
     1.      The number of units selected is informed by survey ratios and/or                                         In the view of the evaluators this ‘deduction’ of value best resides in the
             conservative assessment to generate a relative or notional proportion. A                                 deadweight category
             stance was taken to deliberately under-estimate the likely units to not                            6.    The implicit value of networking for the Digital Hub members is
             over-state benefits                                                                                      deliberately not calculated for this stakeholder set, but it is calculated for
     2.      Deadweight (value attributable to external factors such as skills and                                    the digital network stakeholder set. The value for members may be
             aptitude before attending/ participating at the Digital Hub has been                                     attributed to value of their products and investment, and the value of
             assessed by survey results and assumptions drawn from anecdotal                                          networking and skill development was not calculated to avoid any risk of
             information. A stance was taken to deliberately ‘over-weight’ deadweight                                 double counting of these related values. This is a conservative position to
             to not over-state benefits                                                                               not over-state benefits.
     3.      ‘Drop off’, wherein the benefit reduces over time, is based on                                     7.    On a ‘profit and loss’ basis, the costs of operating the Digital Hub were
             benchmarking and estimates. A conservative position was taken to likely                                  greater than revenues in 2021, by $80,000. This loss is included, and the
             overstate attrition and therefore not overstate benefits                                                 economic value of the wages and services was not attributed, although
     4.      Displacement values were applied when it was likely or possible the                                      the related expenditure and consumption would have certainly generated
             benefit generated through the Digital Hub may reduce benefits elsewhere                                  economic benefits (relevant to the total SROI)
             in the community and economy that would have otherwise occurred                                    8.    The grants received in 2020/21 were competitive, and Council’s success
             without the presence of the Digital Hub. This was assessed as a low value                                meant other applicants weren’t funded. However, no displacement is
             in most circumstances, and is unlikely to mean the SROI is overstated                                    attributed, as it is reasonably assumed as the potential economic benefit
     5.      As the question sought intended investment outlook over 3 years, a                                       for another region would not be relevant to the Noosa LGA economy.
             deadweight of 66% (2/3rds) was applied to only account for one (1) year.




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