WIC EBT Feasibility Study and Cost‐Benefit Analysis

VIRGINIA DEPARTMENT OF HEALTH
PAPER‐BASED SYSTEM
RETAILER‐BORNE COSTS
INSTRUCTIONS: Transaction description, labor rates, annual quantities, transaction times and comments may be entered into shaded areas.
Return to Index
BASELINE: ONE YEAR ESTIMATED RETAILER‐BORNE COSTS RELATED TO PAPER‐BASED WIC ISSUANCE (SUBJECT TO INFLATION)
Labor
Estimated
Number of Estimated Time
Transactions per Transaction Estimated
Item Description
Labor Rate per Year (Minutes) Cost Per Year Comments
1 Conduct a Purchase Transaction
$ 8.93 930,501 4.3 $ 595,505 See ** below (Cashier Transaction)
2 Conduct a Purchase Transaction
$ 19.59 297,073 4.3 $ 417,076 Cashier transaction, Manager assist
3 Deposit FIs
$ 10.66 162,189 10.6 $ 304,004 See *** below
4 Handle Rejects
$ 10.66 39,723 14.4 $ 101,557
5 Enter Pricing Into Retailer Database
$ 10.66 3,084 41.7 $ 22,848
6 Train Personnel
$ 9.80 3,084 30.0 $ 15,104 Blended Rate. See **** below
TOTAL RETAILER‐BORNE COSTS RELATED TO THE PAPER‐BASED ENVIRONMENT (SUBJECT TO INFLATION) $ 1,456,094
BASELINE: ONE YEAR ESTIMATED RETAILER‐BORNE COSTS RELATED TO PAPER‐BASED WIC ISSUANCE (NOT SUBJECT TO INFLATION)
Rejects*
Item Description
Cost per Unit
Number of
Units per Year Cost per Year Loss per Year Comments
1 Rejected Food Instruments ‐ Unrecoverable
$ 179,723
2 Amount Exceeding Allowable Maximum $ 113,026
3 Bank Fee for Food Instrument Rejects
$ 0.46 39,723 $ 18,273
Cost of money based on 5 day
4 Cost of Money $ 0.0007 $ 89,838,232 $ 59,114
payment period, at an annual rate of
5 $ ‐
$
‐
6 $ ‐
$
‐
TOTAL RETAILER‐BORNE COSTS RELATED TO THE PAPER‐BASED ENVIRONMENT (NOT SUBJECT TO INFLATION) $ 370,135
NOTATIONS
* Only the rejects that occur in the paper‐based environment and are anticipated to be eliminated in the e‐WIC environment.
**Quantity based on 78% of FIs presented for payment; on a monthly basis 3.87 FIs per client per transaction;
24.2% of survey respondents stated that a manager assists with or conducts WIC transactions to alleviate errors
***75% of stores responding to the retailer survey stated that they perform this function daily; 6.3% every other day; 12.5% once a week; 6.3% once a month
Number of Stores: 578.3 48.6 96.4 48.6 772
Number of Deposits: 150280 6314 5012 583 162189
**** Retailers were reluctant to provide a time and with those that did, time varied widely. Assumed that 30 minutes training dedicated to paper‐based processes.
E‐WIC Cost‐Benefit Analysis
Retailer Borne Cost Baseline:
Paper‐Based Issuance Page 14