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Financial Framework of The Academic Library (Resource Management)
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.
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.
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.
Staffing budget
The operation of staffing budgets is more variable than that of other revenue
allocation. Options include:
Financial Regulations
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)