Page 140 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Unit 7: Budgeting

Notes
Each of the three committees meets at least quarterly throughout the year to develop,
amend and monitor progress against annual asset programs. Meetings are also timed to
coincide with overall strategy review and budget timetables. Some staff are members of
one or more committees, which help provide an integrated approach across capital and
operational budget requirements. Other than the Collections Management Committee,
there is a representative from each division on each committee and that person is responsible
for presenting divisional proposals and discussing progress against agreed plans.
In October or November each year asset bids for the upcoming year are finalised by the
various committees and presented to the Corporate Management Group for consideration
as part of the Library’s strategy and budget processes. Major capital projects are managed
through the Library’s Balanced Scorecard system.
Planning for Capital Replacement
As most long-lived assets require active management beyond the budget and forward
years it is important to take a long-term view of their ongoing maintenance and
replacement.

Within the Library, the Building Works program is based on:
(a) A 15 year strategic building asset plan which is revised every three years to identify
replacement and maintenance requirements of the various components of the
building over that period;
(b) A strategic building master plan that focuses on library service issues (for example,
collection delivery issues, reading room locations, public program requirements
and staffing issues);
(c) A collection storage plan that aims to optimize collection storage within the Library
buildings and identifies when additional external collection storage is required;
and a conservation management plan.

The Library also has a separate building management system that identifies building
asset replacement and maintenance requirements. This system is also used to help manage
associated contracts.

Any additional whole of life (for example, maintenance) and depreciation expenses are
built into budget proposals as required. Some capital funding is held in reserve each year
to take account of major purchases required in future years. These quarantined funds are
considered as part of budget processes and are held for major categories of assets and the
duration of asset management plans.
Questions
1. Critically analyse the case study and state the role of authorities in capital budgeting.

2. State the purpose of planning for capital replacement.
Source:http://www.anao.gov.au/~/media/Uploads/Documents/developing_and_managing_
internal_budgets1.pdf
7.7 Summary

In this unit, we have discussed the library budget, its features and attributes.
A library, being a service institution, offering its services without any price, does not
support itself financially.

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