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Financial Management in Libraries

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Lecture presented by Michael A. Pinto at PAARL Seminar- workshop with the theme "Managing Today’s Learning Commons: Re-Skilling Seminar for Information Professionals" held on September 20-22, 2016 at the Crown Legacy Hotel, Kisad Road, Baguio City.

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Financial Management in Libraries

  1. 1. FINANCIAL MANAGEMENT IN LIBRARIES Presented by: MICHAEL A. PINTO, MPA Librarian IV/Head Cagayan 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
  2. 2. Managing a budget and handling basic financial literacy can be daunting and overwhelming, but the ability to do so is crucial for librarians ALA
  3. 3. 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
  4. 4. 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
  5. 5. 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.
  6. 6. 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
  7. 7. SOURCES OF BUDGET Library Fees Share from the institutions’ budget Library Fines Donations Book Fairs Fund raising activities Taxes (public libraries) Gifts Contributions
  8. 8. SCOPE OF THE BUDGET 1. Collection development Books is ____% of the budget Periodicals is ___ % of the budget Audio-visuals is ___% of the budget Online and E-resource subscription is ___% of the budget
  9. 9. SCOPE OF THE BUDGET 2. Building/furniture/equipment maintenance - New Furniture/fixtures -New Equipment (i.e. computers) - Repair and maintenance of the building - Repair and maintenance of furniture
  10. 10. 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
  11. 11. SCOPE OF THE BUDGET 4. Administration costs of the library - lighting and ventilation - electricity and water consumption - additional staff benefits - supplies and other materials
  12. 12. SCOPE OF THE BUDGET 5. Projects - automation - security system - digitization - archival collection - outreach and extension activities
  13. 13. SCOPE OF THE BUDGET 6. Licenses or subscription - Renewal/withdrawal of subscription - Maintenance /Technical Support Fee - additional subscription/licenses
  14. 14. PHASES OF BUDGET CYCLE 1 Preparation of the budget Things 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
  15. 15. PHASES OF BUDGET CYCLE 2. 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
  16. 16. 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
  17. 17. SAMPLE BUDGET COMPUTATION
  18. 18. 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.
  19. 19. 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.
  20. 20. 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 ____
  21. 21. THANK YOU FOR LISTENING!!
  22. 22. WORKSHOP
  23. 23. REFERENCES:  www.uksg.org/sites/uksg.org/files/PresentationTaylor-Roe.ppt  https://www.webjunction.org/documents/webjunction/Developing_the_Li brary_Budget.html  http://www.managementstudyguide.com/financial-management.htm  http://www.ala.org/advocacy/advleg/advocacyuniversity/budgetpresenta tion/preparing/tenthings

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