LIS 315 Academic Libraries

T/F 5:30 7:00 / LDR 1

Ms. Jennifer N. Samontaez

Financial Framework of the Academic Library (Resource Management)

Libraries are expensive services. The buildings from which they operate even when services
are received remotely are expensive. Specialist staff must be paid appropriate salaries. IT
equipment and software are expensive, not only to purchase but also to maintain and to
replace at regular interval. As a result of all these requirements, the annual running costs of the
university library can, and often does, run into millions of pounds.

Budgeting is an important component of collection development and management. Library

financing is changing. With continued tight economic times, librarians will increasingly need to
defend their budgets and seek outside funding for their materials.

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

The library budget 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
the librarys service objectives.

(add the meaning of resource management/ financial framework)

Funding in Academic Institutions

Budget financial statement of the estimated revenues and expenditures of an institution
for a definite period of time.

Two Components of the academic library funding

1. Revenue budgets are intended to cover the ongoing costs of the operation: staff
salaries, staff development, consumables, minor equipment, heating and lighting, and
so on.
2. Capital funding is reserved for major capital asset, one-off purchases such as a new
building, a major purchase of PCs or the acquisition of a major collection.
Factors affecting the library budget allocation:
Overarching university strategies, such as a decision to reduce administrative staffing
cost.
The operation of university policies, such as decision to move to a more student-centred
approach to learning.
The operation of benchmarks.
Special factors like need to move to a new building.

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
a. Library Fees
b. Share from the institutions budget
c. Library Fines
d. Donations
e. Book Fairs
f. Fund raising activities
g. Taxes (SUCs)
h. Gifts
i. Contributions

MANAGING BUDGETS
The budget should be realistically based on a solid financial framework and follow sound
financial procedures that promote accountability and efficiency. Thoughtful planning that
demonstrates an understanding of library workflows and politics should be employed in the
development of the budget, and standard accounting practices should be used.

Budgets are distributed in a number of different ways:

Revenue budgets (look for its meaning) (inclusion)

Staffing budget
 The operation of staffing budgets is more variable than that of other revenue
allocation. Options include:

1. Devolving responsibility to the librarian in the same way as other

budgets, for expenditure at his/her discretion.

2. Devolving responsibility to the librarian, but only to operate within an

agreed/approved staff structure. The librarian may then make
appointments to any vacancies which occur provided they are within the
approved structure and the allocated overall budget, but may not invent
new post without specific approval.
3. Keeping the staffing budget centralized and simply providing an agreed
staffing structure specifying the number of posts to each level. In affect
the librarian has no staffing budget, expect perhaps a small allocation to
enable temporary cover to be bought in.

Capital budgets (look for its meaning) (inclusion)

Budget techniques for Librarians: (Types of Budget)

1. Line Item Budget
a. Operating Budget
Maintenance funds used to maintain the current level of
operations with no expansion of the programmes.
Improvement funds these funds are those that permit an
increase level of operations or new services.
b. Capital Expenses usually one time expenditures to enhance the librarys
real property or tangible goods.
2. Performance budget are arranged according to functions, activities, and projects.
3. Zero based budget financial planning that starts from zero at the beginning of each
new budget cycle.

Standard for financial resources

A. The academic library head shall prepare an annual budget covering the needs and
priorities of the library in accordance with the existing policies of the parent institution.
B. The library fee shall be set at realistic level.
C. The academic library shall explore other ways of augmenting the librarys financial
resources when the institutional funds are inadequate.
Standard for governance/administration
A. The supervision and control of the academic library shall be clearly defined within the
organizational structure of the parent institution.
B. The academic library shall be administered and supervised by a full time professional
librarian with at least Masters Degree in Library and Information Science.
C. The academic library shall have an advisory library committee composed of
representatives of the faculty and students.
D. The academic library shall formulate a development plan which shall include a program
for a continued development and improvement of library resources and services.

Financial Regulations

Angela Grace DG. Caper

Reporter

Sources:
Brophy, Peter (2005) The Academic Library, 2nd ed. London: Facet Pub.
Khanna, J.K. (1997) Manual for Administering Academic Libraries. New Delhi: Beacon Books
http://eduscapes.com/collection/9.htm (accessed on July 31, 2017)
https://www.slideshare.net/PAARLOnline/financial-management-in-libraries (accessed on July
31, 2017)