Page 154 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Unit 8: Library Accounting

Temporary and permanent appropriations and any amendments for board approved Notes
modifications.

Accounting Records (cash journal, receipts, and appropriation ledgers)
Payroll information – time sheets or timecards, sick leave and vacation records, tax
information (federal, state, city), OPERS reports, accumulated and unpaid vacation
and sick leave balances, etc.
Organizational chart, salary schedules, staff handbook, current policies.

Documentation regarding trusts, endowments, and federal funds.
Fixed assets inventory.
Questions
1. Explain the purpose of financial audit of the library.
2. What all items are required for the Audit of a library by an Auditor? Elaborate.

Source: http://www.olc.org/AccountingHandbook/LibraryAccountingHandbook4thedition82608.pdf

8.5 Summary

The final aspect of financial management is that of keeping accurate records of the money
spent, and of the remaining balance.

Accounting means a systematic maintenance of the income and expenditure flow on records.
The fund accounting system should allow for verification of all the transactions and provide
an accurate report.

There are standard procedures and rules for maintaining different types of records of
expenditure which are described with examples.

Library expenditure is subject to audit to ensure that the expenditure has been according
to norms, rules and procedures.

Libraries and information centres normally have post-audit by external/central/statutory
auditors, who usually look into the loss of reading materials, irregularities in procurement
processes and outstanding advance payments and supplies.

Auditing is a scrutiny of the financial transactions of government and semi government
bodies. It provides control over irregular, inappropriate and wasteful spending.

8.6 Keywords

Accounting: A systematic maintenance of the income and expenditure flow on records.
Auditing: It is an official examination of accounts and scrutiny of financial transactions of a
government or non-government body/institution.
Cash Book: The cash book is a record in which details of daily cash transactions regarding
income and expenditure of an institution are entered.
Creditors: Creditors are the persons who supply books and other material to the library on
credit, or bankers or lenders of money.

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