1. MILAGROS SANTOS-ONG ASLP Seminar on Organizational Development, Leadership Change & Future of Libraries RDMU, Iba, Zambales, April 20-23, 2005

2. I. INTRODUCTION Financial Planning Environment  Political Factors  Planning with Reduced Sources  Planning for Information Provisions  Governance Structure  Networks & Structure Sharing  New Technology

3. BUDGETING

4.  Stages/Types  Long Range/Short Range Planning  Decision Making Process  Priority Setting  Factors Governing Budget/Decisions  Approval Cycle  No Growth Environment

5. INTERNAL BUDGET MANAGEMENT  Human Factors  Attitudes Toward Change  Structure  Promotion of Change  Communication with Budget Makers

6. DATA GATHERING METHODOLOGIES COSTS  How much does a service costs  Unit costs  Depreciation  Physical Plant  Fixed and Variable Costs  Building Block Unit Costs  Cost Accounting  Cost-Benefit study  Cost Effectiveness

7. BUDGET DESIGN a.Line-item budget b.Program & Performance BudgetProgram & Performance Budget c.Operating Budget, Performance Budget Format d.Zero-Base BudgetZero-Base Budget

8. BUDGET DESIGN The Program Budget

9. Administration Personal Services Salaries Personal Benefits Training and Conferences Interdepartmental Services Auditing Insurance Automobile Expenses Building and Grounds Maintenance Printing and Duplicating Contractual Services Rental of Space Telephone Utilities Equipment Rental Maintenance Service Membership and Dues Supplies and Materials Office Supplies Postage Maintenance Supplies Janitorial Supplies TOTAL ADMINISTRATION The Program Budget

10. Circulation Services (Sample Narrative) Description: Record all loan transactions; maintain circulation and registration records, generate required statistics; keep collection, card catalog, and other collection access tolls in order. Anticipated Accomplishments: Convert charging system to a new automated format. Workload Indicators: Annual circulation statistics for three prior years, and a projection for budget year based on the past year’s experience. Positions Professional Nonprofessional Clerical Benefits Equipment Charging Equipment Card Catalog Unit Book Truck Supplies Listing of all paper, forms, record-keeping supplies to circulation service The Program Budget

11. Contractual Rental of Copy Machine Printing Binding Collection Rentals Similar descriptions, anticipated accomplishments, workloads indicators and resources will be listed for each of the following: Reference Services Childrens Services Audiovisual Services Bookmobile Outreach Branches Special Services (e.g., federal grant to be administred which would be recorded here with grant funding to be reported under income) TOTAL The Program Budget

12. BUDGET DESIGN Operating Budget, Performance Budget Format

13. Administration Personal Services Salaries Personal Benefits Training and Conferences Interdepartmental Services Auditing Insurance Automobile Expenses Building and Grounds Maintenance Printing and Duplicating Contractual Services Rental of Space Telephone Utilities Equipment Rental Maintenance Service Membership and Dues Supplies and Materials Office Supplies Postage Maintenance Supplies Janitorial Supplies TOTAL ADMINISTRATION

14. Input CostServiceProgram ObjectiveOutput Totals Cost Per Output $84,430General Service Provide library materials and equipment 187,650$.45 63,570Circulation Service Lend materials to public 298,460.21 35,280Reference Service Provide readers advisory and reference service 33,6011.05 36,000Bookmobile Service Provide circulation and services to patrons in Green and Stone countries 4 book- mobiles 9,000.00

15. Input CostServiceProgram ObjectiveOutput Totals Cost Per Output 14,640Records Services Maintain records of use and users for statistical reports and planning input, overdues sent, etc. 11,340 persons 1.29 15,860Special Services SDI, special research projects to individuals or groups 463 services 34.26 1,300Public Relations Service Publicize library resources and programs 104 programs 12.50

16. Zero-Base Budget BUDGET DESIGN

17. DECISION UNIT SUMMARY DECISION UNIT NAME: Interlibrary Loan 1.OBJECTIVE OF DECISION UNIT: To manage interlibrary loan service so that all faculty, staff, graduate and undergraduate students receive satisfactory service, in terms of locating requested items and providing shortest possible delivery time. ____________________________________________________________________________ 2. CURRENT OPERATIONS AND DESIRED RESOURCES There is a head of interlibrary loan, two searchers, three clerks and students help equivalent to one full time subprofessional position. ____________________________________________________________________________ (cum. ) Work - loan/ Performance Summary 3. LIST ALTERNATIVE WAYS WHICH COULD ACCOMPLISH OBJECTIVE AND REASON FOR NOT USING IN 1982. QualityQuantity a.Purchase all items requested for loan--limited acquisition budget, limited potential use of many requested items, delay caused by ordering materials usually greater than delay in borrowing. b.Issue universal borrowing cards to borrowers so that they can visit holding institution and use items there--limited number of potential holding institutions in area. 4. SUMMARY OF INCREMENTS FOR 1982. SERVICE PROVIDED Increment IncrementalCumulative (Identify the “Current Level):NumberExpenseEmployeesExpenseEmployees Head of ILL, 2 Searchers, 1 Clerk, 5 FTE Students 1 of 453,6204.553,2604.5 984,0000600 Add 2 clerks2 of 417,000269,3606.5 7105,0001,100 Add.5 Students FTE3 of 43,120.572,4807 535,0001,400 Add 1 Searchers4 of 412,000184,4808 335,4001,400 of 1981 Forecast expense and employees55,6005 534,400900 Customer complaints (per month) Delay in order Processing (days) # ILLNew ILL

18. (1) Organizational Units being ranked Library(2) Prepared by W. Prentice(3) Date 6/9/80(4) Page 1 of 1 (5) Decision Unit Increments(6) 1981 Proposed (7) 1981 Cumulative (8) 1980 Forecast(9) % Change 1981 - 1980 x 100 RankIncrement Number Expense 1. Interlibrary Loan1 of 453,260 55,600 2. Online Searching1 of 325,00078,26031,600 3. Bibliographic Instr.1 of 342,100120,36049,300 4. Interlibrary Loan2 of 417,000137,360 5. On Line Searching2 of 316,000153,360 6. Interlibrary Loan3 of 43,120156,480 7. Bibliographic Instr.2 of 313,400169,880 8. On Line Searching3 of 39,500179,380 9. Interlibrary Loan4 of 412,000191,380 10. Bibliographic Instr.3 of 36,240197,620 of Total197,620 136,500 SAMPLE RANKING TABLE

19. SOURCES OF INCOME Regular Income Income Generation a.Political/government b.International Organizations/Institutions c.Library Service and product strategies Fines, reprographic services, document supply delivery Advertising and promotion

20. Rent such as library space Consultancy Electronic Services: online searching and multimedia Information searching Publishing, reading lists and bibliographies Seminars, short courses and training Retailing and Merchandizing SOURCES OF INCOME

21. FINANCIAL CONTROL

22. ASLP is a government agency under the Office of President.. Its Library, the ASLP Library, continuously disseminates all the latest information to primarily 50 state universities and colleges, National Library and 100 public libraries and 500 government libraries and information centers throughout the Philippines. It is the depository of all government documents from all of the three branches of government. The main source of fund is an annual budget of P10 million. This budget includes salaries, acquisition of books, and other library materials and equipment broken down as follows: a. Acquisition of books - P5 million b. Equipment and supplies P2.5 million Present are 2 computers, 1 printer Cable connection with a fee of P2,500 a month c. Salaries - P2.5 million Librarian (2) Clerk (2) Utility (1) The Auscan government is donating P 5 million dollars for an information delivery project. What project will you recommend? XIT Corporation offers an online library software for the following library functions: 1.Circulation including the costs of labels P1 million 2.Circulation with security system P1.7 million (security machine includes) 3.Cataloging moduleP500,000.00 4.Acquisition P500,000.00 5.SerialsP500,000.00 6.Indexing ModuleP500,000.00 7.Online periodical subscription (e.g. Dialog, Medline etc.) P400,000 8.Server P500,000.00 9.Service Provider 10.Computers P60,000 per unit 11.Printer P20,000.00 12.Scanner P10,000 13.CD burner P5,000 14.CDs P10.00 each 15.IT Staff support P25,000.00 per month Prepare the budget How will you maintain it?

23. Sources: Prentice, Ann E.. Financial Planning for Libraries. N.J.: Scarecrow Press, 1983 222p. Roberts, Stephen A. Financial and Cost Management for Libraries and Information Services. 2d ed. London: Bowker, 1998