FINANCIAL MANAGEMENT

1. FINANCIAL MANAGEMENT MILAGROS SANTOS-ONG ASLP Seminar on Organizational Development, Leadership Change & Future of Libraries RDMU, Iba, Zambales, April 20-23, 2005

2. I.                    INTRODUCTION Financial Planning Environment • Political Factors • Planning with Reduced Sources • Planning for Information Provisions • Governance Structure • Networks & Structure Sharing • New Technology

3. BUDGETING

4. BUDGETING • Stages/Types • Long Range/Short Range Planning • Decision Making Process • Priority Setting • Factors Governing Budget/Decisions • Approval Cycle • No Growth Environment

5. INTERNAL BUDGET MANAGEMENT • Human Factors • Attitudes Toward Change • Structure • Promotion of Change • Communication with Budget Makers

6. DATA GATHERING METHODOLOGIES COSTS • How much does a service costs • Unit costs • Depreciation • Physical Plant • Fixed and Variable Costs • Building Block Unit Costs • Cost Accounting • Cost-Benefit study • Cost Effectiveness

7. BUDGET DESIGN • Line-item budget • Program & Performance Budget • Operating Budget, Performance Budget Format • Zero-Base Budget

8. BUDGET DESIGN The Program Budget

9. The Program Budget Administration Personal Services Salaries Personal Benefits Training and Conferences Interdepartmental Services Auditing Insurance Automobile Expenses Building and Grounds Maintenance Printing and Duplicating Contractual Services Rental of Space Telephone Utilities Equipment Rental Maintenance Service Membership and Dues Supplies and Materials Office Supplies Postage Maintenance Supplies Janitorial Supplies TOTAL ADMINISTRATION

10. 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. Positions Professional Nonprofessional Clerical Benefits Equipment Charging Equipment Card Catalog Unit Book Truck Supplies Listing of all paper, forms, record-keeping supplies to circulation service

11. The Program Budget Contractual Rental of Copy Machine Printing Binding Collection Rentals Similar descriptions, anticipated accomplishments, workloads indicators and resources will be listed for each of the following: Reference Services Childrens Services Audiovisual Services Bookmobile Outreach Branches Special Services (e.g., federal grant to be administred which would be recorded here with grant funding to be reported under income) TOTAL

12. BUDGET DESIGN Operating Budget, Performance Budget Format

13. Administration Personal Services Salaries Personal Benefits Training and Conferences Interdepartmental Services Auditing Insurance Automobile Expenses Building and Grounds Maintenance Printing and Duplicating Contractual Services Rental of Space Telephone Utilities Equipment Rental Maintenance Service Membership and Dues Supplies and Materials Office Supplies Postage Maintenance Supplies Janitorial Supplies TOTAL ADMINISTRATION

16. BUDGET DESIGN Zero-Base Budget

17. DECISION UNIT SUMMARY • DECISION UNIT NAME: Interlibrary Loan • OBJECTIVE OF DECISION UNIT: Delay in order Processing (days) Customer complaints (per month) # ILL New ILL

18. SAMPLE RANKING TABLE

19. SOURCES OF INCOME • Regular Income • Income Generation • Political/government • International Organizations/Institutions • Library Service and product strategies • Fines, reprographic services, document supply delivery • Advertising and promotion

20. SOURCES OF INCOME Rent such as library space Consultancy Electronic Services: online searching and multimedia Information searching Publishing, reading lists and bibliographies Seminars, short courses and training Retailing and Merchandizing

21. FINANCIAL CONTROL

22. 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 informationdelivery project. What project will you recommend? • XIT Corporation offers an online library software for the following library functions: • Circulation including the costs of labels P1 million • Circulation with security system P1.7 million (security machine includes) • Cataloging module P500,000.00 • Acquisition P500,000.00 • Serials P500,000.00 • Indexing Module P500,000.00 • Online periodical subscription (e.g. Dialog, Medline etc.) P400,000 • Server P500,000.00 • Service Provider • Computers P60,000 per unit • Printer P20,000.00 • Scanner P10,000 • CD burner P5,000 • CDs P10.00 each • IT Staff support P25,000.00 per month • Prepare the budget • How will you maintain it?

23. 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