Financial Management in Libraries

FINANCIAL MANAGEMENT IN LIBRARIES

Presented by:MICHAEL A. PINTO, MPALibrarian IV/HeadCagayan Provincial Learning and Resource Center

PAARL Seminar on Managing Today’s Learning Commons: Re-Skilling Seminar for Information Professionals September 20-22, 2016  Baguio City

Managing a budget and handling basic financial literacy can be daunting and overwhelming, but the ability to do so is crucial for librarians

ALA

WHAT IS FINANCIAL MANAGEMENT?

- means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise.

- It means applying general management principles to financial resources of the enterprise.

- Management Study Guide

WHY IS FINANCIAL MANAGEMENT IMPORTANT?BY: JILL TAYLOR-ROE

Enables us to stay in business! Helps us to be competitive Helps us to provide the best and most

cost effective services for our users Enables us to demonstrate to our

paymasters that we are appropriate and effective managers of the funds they entrust us with

Helps us to make sound business cases and plans for future service enhancement

THE LIBRARY BUDGET? It is a tool for turning library dreams

into reality. The budget determines the services

that will be offered by your library and the resources devoted to each library program.

A carefully developed budget will ensure that available funds are effectively utilized to realize your library’s service objectives.

IMPORTANCE OF BUDGET

Sets planning parameters for the administration

Justifies the allocation of funds Provides accountability from item of

expenditures Links achievement of student outcomes to

resources input Identifies priorities of the library Develops awareness of the financial

requirements of the library

SOURCES OF BUDGET Library Fees Share from the institutions’ budget Library Fines Donations Book Fairs Fund raising activities Taxes (public libraries) Gifts Contributions

SCOPE OF THE BUDGET1. Collection development

Books is ____% of the budgetPeriodicals is ___ % of the budgetAudio-visuals is ___% of the budgetOnline and E-resource subscription is ___

% of the budget

SCOPE OF THE BUDGET2. Building/furniture/equipment maintenance

- New Furniture/fixtures-New Equipment (i.e. computers)- Repair and maintenance of the building- Repair and maintenance of furniture

SCOPE OF THE BUDGET

3. Growth in priority areas- recommendations during accreditations- priority programs of the institutions (e-

services)- Weak areas in the collection - Staff requirements

SCOPE OF THE BUDGET

4. Administration costs of the library- lighting and ventilation- electricity and water consumption- additional staff benefits- supplies and other materials

SCOPE OF THE BUDGET

5. Projects - automation - security system- digitization- archival collection- outreach and extension activities

SCOPE OF THE BUDGET

6. Licenses or subscription- Renewal/withdrawal of subscription- Maintenance /Technical Support Fee- additional subscription/licenses

PHASES OF BUDGET CYCLE1 Preparation of the budgetThings to do:

- know important things Check your strategic plan and action plan No of enrolees (per department/school) Amount of library fee and other fees Amount of collections (fines, donations, gifts,

etc Know how to allocate (use formulas) Know how much is allocated for the library

PHASES OF BUDGET CYCLE2. Presentation to the funding authorities, with full justification linking inputs (financial) with outputs (results)

Justification – convincing the funding authority that a certain development makes sense and that it should be supported

PHASES OF BUDGET CYCLE

3. Implementation of the actual beginning of the phase for which the budget has been allocated.

Monitor the revenue and expenses

Collaborate with the accounting for the update of your budget

SAMPLE BUDGET COMPUTATION

10 THINGS I KNOW TO BE TRUE ABOUT BUDGETING FOR LIBRARIES

BY TONI GARVEY

1. Budgeting is a year-round exercise. 2. You can’t make responsible decisions without

the right information. 3. Budget staffs have long memories. 4. It’s easier to build up than tear down… 5. We cannot afford irrelevant excellence. 

10 THINGS I KNOW TO BE TRUE ABOUT BUDGETING FOR LIBRARIES

BY TONI GARVEY

6. Even in bad times, you are building for the future. 7. A communication plan is essential. 8. You need to think like your audience. 9. It’s not always about the numbers. 10. You can’t say “thank you” too often. 

ITULOY ANG MGA KATAGANG ITO:

Ang library na walang pera ay ___________________Ang library na walang budget ay _________________Ang librarian na di marunong gumawa ng budget ay ____

THANK YOU FOR

LISTENING!!

WORKSHOP

REFERENCES:

www.uksg.org/sites/uksg.org/files/PresentationTaylor-Roe.ppt https://

www.webjunction.org/documents/webjunction/Developing_the_Library_Budget.html

http://www.managementstudyguide.com/financial-management.htm

http://www.ala.org/advocacy/advleg/advocacyuniversity/budgetpresentation/preparing/tenthings