Page 141 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Library Administration and Management

Notes Funds have to be provided by its parent organisation or by the government. From the
appropriations of funds made, it organises and regulates its expenditures for its functions
and services according to certain norms and procedures.
There are a few methods of budgeting which include line item budgeting, programme
budgeting, performance budgeting, planning programming budgeting systems and
zero-base budgeting.
Budgets are usually prepared in conformity with standard norms, particularly with
reference to the distribution of funds towards different competing items of expenditure.
In Indian libraries the conventional line item budgeting is common. The proportion of
funds for staff salaries is generally more than that of books and journals in any library.
A few helpful guidelines are provided to prepare budgets. The contents of the budget
document, justification for expenditure and other usual budget formalities are also
explained in this unit.
While the budget is a financial statement which provides details of the proposed revenues
and their utilisation for expenditure for a specific period, the budgetary control is the
process of comparing what was planned with what has been accomplished during the
period.
Libraries and information centres have certain peculiarities as service-oriented and
not-for-profit organisations and hence implementation of budgeting and the budgetary
control system in such institutions is more difficult than in profit-oriented organisations.
Budget and the budgetary control system have many merits like use of the rupee as a
common denominator, dealing directly with the efficiency, of the organisation, stimulating
good management practices, detecting deviations, suggesting corrective actions, facilitating
centralised control and availing of be collective wisdom of the people involved.

7.8 Keywords

Budget: A financial and/or quantitative statement prepared and approved prior to a defined
period of time of the policy to be pursued during that period for the purpose of attaining a given
objective.
Budget Centre: A section of the organization or the undertaking defined for the purpose of
budgetary control.
Budgetary Control: Budgetary control is the process of comparing what was planned with what
has been accomplished during the budget period.
Cost Analysis: Knowledge of the reaction of individual costs (i.e., fixed, variable and semi-
variable costs) and expenses to changes in the volume of activity. Cost analysis helps (1) planning
the amount of costs to be incurred in future periods (2) estimating profits from future activities;
and (3) determining whether costs have been adequately controlled by those responsible for
this.
Encumbering Funds: Encumbering funds is a complex process that allows one to set aside money
to pay for ordered items.
Flexible Budget: A budget that recognizes the difference in the behaviour pattern of fixed and
variable costs and which is designed to change in relation to the level of activity actually
attained.
Restricted Funds: Restricted funds do not allow flexibility in the use of funds. Like grants for
specific purposes, restricted funds cannot be used for purposes other than those specified.

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