Page 139 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Library Administration and Management

Notes The three basic steps in the control process are – establishing standards, comparing results with
standards and taking corrective action. Preparation of the budget is nothing but establishing the
cost standard. This process begins with the top management setting goals and objectives and the
lower level managers developing budgets for their units and the same successively reviewed
and integrated at each higher level. Unlike profit-oriented organizations where the budget for
marketing expenses can influence the amount of revenue, the service-oriented and
not-for-profit organizations should have different kind of simple matching of revenues and
expenses.

Statements relating to commitments and actual expenditure should be regularly checked and
continuously reviewed to control the budget. In the actual practice of the budgetary control
system, operating statements have to be prepared for each of the budget centres (or heads or
items) involved. These statements should form part of the Management Information System
(MIS) used to control the performance of the library or information centre against the budget
plan. A good budgetary control system should follow the. theory of “management by exception”
and focus its attention on matters that are adverse or that show an unusual variation in addition
to providing full details of budget statements.
In practice, it may suffice to have monthly reporting in the beginning of the financial year and
changing it to fortnightly during later part of the year. However, the unit heads may have data
on a daily or weekly basis throughout the year to facilitate operational control and the same
need not be sent to the head of the library or information centre.

Task If there is an excess in library spending beyond the budgeted allotment, state the
methods of adjusting the excess.

Self Assessment

Fill in the blanks:
16. ………………….. is a complex process that allows one to set aside money to pay for
ordered items.
17. ……………………….. is one of the oldest and transitional control techniques used by
managers.

Case Study National Library of Australia

Governance over Capital Budgeting
An important aspect of any capital asset replacement process is that effective governance
arrangements are in place throughout the organisation. The National Library of Australia
(the Library) achieves this through various sub-committees of the Corporate Management
Group. There is a Collection Management Committee, a Building Works Coordination
Committee and an Asset Management Committee. The Library Council is responsible for
endorsing overall acquisition programs and ministerial approval is required for any
individual acquisitions or disposals in excess of $1 million.

Contd...

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