MILAGROS SANTOS-ONGASLP Seminar on Organizational Development, Leadership Change & Future of Libraries

RDMU, Iba, Zambales, April 20-23, 2005

I.                    INTRODUCTIONFinancial Planning Environment

Political FactorsPlanning with Reduced SourcesPlanning for Information ProvisionsGovernance StructureNetworks & Structure SharingNew Technology

BUDGETING

BUDGETING

Stages/TypesLong Range/Short Range PlanningDecision Making ProcessPriority SettingFactors Governing Budget/DecisionsApproval CycleNo Growth Environment

INTERNAL BUDGET MANAGEMENT

Human FactorsAttitudes Toward ChangeStructurePromotion of ChangeCommunication with Budget Makers

DATA GATHERING METHODOLOGIES COSTS

How much does a service costsUnit costsDepreciationPhysical PlantFixed and Variable CostsBuilding Block Unit CostsCost Accounting Cost-Benefit studyCost Effectiveness

BUDGET DESIGN

a. Line-item budget

b. Program & Performance Budget

c. Operating Budget, Performance Budget Format

d. Zero-Base Budget

BUDGET DESIGN

The Program Budget

Administration

Personal ServicesSalariesPersonal BenefitsTraining and Conferences

Interdepartmental ServicesAuditingInsuranceAutomobile ExpensesBuilding and Grounds MaintenancePrinting and Duplicating Contractual ServicesRental of SpaceTelephoneUtilitiesEquipment RentalMaintenance ServiceMembership and Dues

Supplies and MaterialsOffice SuppliesPostageMaintenance SuppliesJanitorial Supplies

TOTAL ADMINISTRATION

The Program Budget

Circulation Services (Sample Narrative)

Description: Record all loan transactions; maintain circulation and registration records, generate required statistics; keep collection, card catalog, and other collection access tolls in order.

Anticipated Accomplishments: Convert charging system to a new automated format.

Workload Indicators: Annual circulation statistics for three prior years, and a projection for budget year based on the past year’s experience.

PositionsProfessional Nonprofessional Clerical Benefits

EquipmentCharging EquipmentCard Catalog UnitBook Truck

SuppliesListing of all paper, forms, record-keeping supplies to circulation service

The Program Budget

ContractualRental of Copy MachinePrintingBindingCollection Rentals

Similar descriptions, anticipated accomplishments, workloads indicators and resources will be listed for each of the following:

Reference ServicesChildrens ServicesAudiovisual ServicesBookmobileOutreachBranchesSpecial Services (e.g., federal grant to be administred which would be recorded here with grant funding to be reported under income)

TOTAL

The Program Budget

BUDGET DESIGN

Operating Budget, Performance Budget Format

Administration

Personal ServicesSalariesPersonal BenefitsTraining and Conferences

Interdepartmental ServicesAuditingInsuranceAutomobile ExpensesBuilding and Grounds MaintenancePrinting and Duplicating

Contractual ServicesRental of SpaceTelephoneUtilitiesEquipment RentalMaintenance ServiceMembership and Dues

Supplies and MaterialsOffice SuppliesPostageMaintenance SuppliesJanitorial Supplies

TOTAL ADMINISTRATION

Input Cost Service Program Objective Output Totals

Cost Per Output

$84,430 General Service

Provide library materials and equipment

187,650 $.45

63,570 Circulation Service

Lend materials to public

298,460 .21

35,280 Reference Service

Provide readers advisory and reference service

33,601 1.05

36,000 Bookmobile Service

Provide circulation and services to patrons in Green and Stone countries

4 book-mobiles

9,000.00

Input Cost Service Program Objective Output Totals

Cost Per Output

14,640 Records Services

Maintain records of use and users for statistical reports and planning input, overdues sent, etc.

11,340 persons

1.29

15,860 Special Services

SDI, special research projects to individuals or groups

463 services

34.26

1,300 Public Relations Service

Publicize library resources and programs

104 programs

12.50

Zero-Base Budget

BUDGET DESIGN

DECISION UNIT SUMMARY

DECISION UNIT NAME: Interlibrary Loan

1. OBJECTIVE OF DECISION UNIT: To manage interlibrary loan service so that all faculty, staff, graduate and undergraduate students receive satisfactory service, in terms

of locating requested items and providing shortest possible delivery time.____________________________________________________________________________

2. CURRENT OPERATIONS AND DESIRED RESOURCES

There is a head of interlibrary loan, two searchers, three clerks and students help equivalent to one full time subprofessional position.____________________________________________________________________________

(cum. )

Work - loan/ Performance Summary

3. LIST ALTERNATIVE WAYS WHICH COULD ACCOMPLISH OBJECTIVE AND REASON FOR NOT USING IN 1982.

Quality Quantity

a. Purchase all items requested for loan--limited acquisition budget, limited potential use of many requested items, delay caused by ordering materials usually greater than delay in borrowing.

b. Issue universal borrowing cards to borrowers so that they can visit holding institution and use items there--limited number of potential holding institutions in area.

4. SUMMARY OF INCREMENTS FOR 1982. SERVICE PROVIDED

Increment Incremental Cumulative

(Identify the “Current Level): Number Expense Employees Expense Employees

Head of ILL, 2 Searchers, 1 Clerk, 5 FTE Students

1 of 4 53,620 4.5 53,260 4.59 8 4,0000 600

Add 2 clerks 2 of 4 17,000 2 69,360 6.5 7 10 5,000 1,100

Add .5 Students FTE 3 of 4 3,120 .5 72,480 7 5 3 5,000 1,400

Add 1 Searchers 4 of 4 12,000 1 84,480 8 3 3 5,400 1,400

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1981 Forecast expense and employees 55,600 5 5 3 4,400 900

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(1) Organizational Units being ranked Library (2) Prepared by W. Prentice (3) Date 6/9/80 (4) Page 1 of 1

(5) Decision Unit Increments (6) 1981 Proposed

(7) 1981 Cumulative

(8) 1980 Forecast (9) % Change 1981 - 1980

x 100

Rank Increment Number

Expense Expense Expense Expense

1. Interlibrary Loan 1 of 4 53,260 53,260 55,600

2. Online Searching 1 of 3 25,000 78,260 31,600

3. Bibliographic Instr. 1 of 3 42,100 120,360 49,300

4. Interlibrary Loan 2 of 4 17,000 137,360

5. On Line Searching 2 of 3 16,000 153,360

6. Interlibrary Loan 3 of 4 3,120 156,480

7. Bibliographic Instr. 2 of 3 13,400 169,880

8. On Line Searching 3 of 3 9,500 179,380

9. Interlibrary Loan 4 of 4 12,000 191,380

10. Bibliographic Instr. 3 of 3 6,240 197,620

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Total 197,620 197,620 136,500

SAMPLE RANKING TABLE

SOURCES OF INCOME Regular IncomeIncome Generation

a. Political/governmentb. International

Organizations/Institutionsc. Library Service and product

strategiesFines, reprographic services, document

supply deliveryAdvertising and promotion

Rent such as library spaceConsultancyElectronic Services: online searching and

multimediaInformation searchingPublishing, reading lists and

bibliographiesSeminars, short courses and trainingRetailing and Merchandizing

SOURCES OF INCOME

FINANCIAL CONTROL

ASLP is a government agency under the Office of President.. Its Library, the ASLP Library, continuously disseminates all the latest information to primarily 50 state universities and colleges, National Library and 100 public libraries and 500 government libraries and information centers throughout the Philippines. It is the depository of all government documents from all of the three branches of government. The main source of fund is an annual budget of P10 million. This budget includes salaries, acquisition of books, and other library materials and equipment broken down as follows:

a. Acquisition of books - P5 million b. Equipment and supplies P2.5 million

Present are 2 computers, 1 printer Cable connection with a fee of P2,500 a month

c. Salaries - P2.5 million Librarian (2)

Clerk (2) Utility (1)

The Auscan government is donating P 5 million dollars for an information delivery project. What project will you recommend?

XIT Corporation offers an online library software for the following library functions:

1. Circulation including the costs of labels P1 million2. Circulation with security system P1.7 million (security machine includes)3. Cataloging module P500,000.004. Acquisition P500,000.005. Serials P500,000.006. Indexing Module P500,000.007. Online periodical subscription (e.g. Dialog, Medline etc.) P400,000 8. Server P500,000.009. Service Provider10. Computers P60,000 per unit11. Printer P20,000.0012. Scanner P10,00013. CD burner P5,00014. CDs P10.00 each15. IT Staff support P25,000.00 per month

Prepare the budget

How will you maintain it?

Sources:  Prentice, Ann E.. Financial Planning for Libraries. N.J.: Scarecrow Press, 1983 222p. Roberts, Stephen A. Financial and Cost Management for Libraries and Information Services. 2d ed. London: Bowker, 1998