Presenting financial management principles and best practices applicable to both public and academic libraries, this comprehensive text elucidates a broad array of issues crucial for those entering a managerial position. Both thorough and straightforward, Sannwald's treatment

• gives readers a solid grounding in the basics of accounting and finance, with an emphasis on applicability to library management and operations;


• ties budgets and strategic planning to library vision, mission, goals, and objectives;


• discusses the roles of stakeholders such as boards, governmental/municipal bodies, the university, and the community;


• looks at a variety of funding sources, from tax revenue to gifts and donations, and presents sound strategies for including them when projecting income and expenses;


• articulates and discusses the pros and cons of various budget strategies;


• includes sample budgets and forms that can be customized as needed;


• offers expert guidance on modifying budgets for windfalls and shortfalls;


• explains operating ratios, fiscal benchmarking, and metrics, demonstrating how to use these to effectively create and manage a budget and assess the fiscal health of the library; and


• advises on how to effectively prepare and present a budget and annual financial statements to a library's governing agency.

List of Illustrations
Preface

1    Introduction to Budgeting and Strategic Planning
Learning Objectives
What Is a Budget?
Budgeting and the Library’s Strategic Planning Process
Types of Budgets That May Be Used in Libraries
Budgetary Approaches
Budgetary Tools
Financing Libraries
Budgetary Controls
Cash Flow, Forecasting, and Tools for Determining the Size of the Budget
Forecasting
Budget Planning Team and Budget Preparation Process
Budget Presentation
Exercises
References

2    Accounting Concepts
Learning Objectives
Accounting History
Financial and Managerial Accounting
Basic Accounting Equation
Generally Accepted Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB)
The Auditing Process
Cash-Basis and Accrual-Basis Accounting
The Balance Sheet
The Income Statement
The Statement of Cash Flows
Chart of Accounts
Accounting Cycle
Summary
Exercises
References

3    Library Budget Development Process and Participants
Learning Objectives
Budget Calendar
Budget Process Questions
Budgetary Checklist
How Is the Dollar Amount of the Library’s Budget Determined?

• San Diego State University
• Chula Vista Public Library
• Schaumburg Township District Library

Budget Development Team Participants

• San Diego State University
• Chula Vista Public Library
• Schaumburg Township District Library

Summary
Exercises
References

4    Library Performance Measures and Operating Ratios
Learning Objectives
Introduction
Standards, Inputs, Outputs, Processes, Satisfaction, and Outcomes

• Standards
• Inputs and Outputs
• Processes and Satisfaction
• Outcomes

Benchmarking

• Steps in the Benchmarking Process
• Criteria for Selecting a Benchmarking Set

Data Sources

• ACRLMetrics
• Public Library Data Services
• Edge
• State and Local Resources
• Operating and Financial Ratios

Programmatic Needs
What Can We Afford?
Exercises
References

5    Budgeting and Forecasting
Learning Objectives
Budgeting
Types of Budgets

• Master Budget
• Operating Budget
• Financial Budgets
• Capital Budgets
• Other Budgets
• Budget Build Up

Budgeting Techniques or Formats

• Line-Item Budgets
• Program Budgets
• Performance Budgets
• Zero-Based Budgets

Forecasting
Summary
Exercises
References

6    Revenue Sources
Learning Objectives
Tax-Supported Academic Libraries
Privately-Supported Academic Libraries
Tax-Supported Public Libraries

• District Libraries

Fines and Fees
Philanthropy

• Ongoing Support
• Capital Campaigns
• College and Research Library Philanthropy
• Public Library Philanthropy
• Local Public Library Philanthropy

Foundations and Grants
Other Revenue Opportunities
Summary
Exercises
References

7    Capital Budgets
Learning Objectives
Capital Budgeting
Capital Budgeting Decisions
Capital Budgeting in the Profit and Nonprofit Sectors

• Net Present Value
• Internal Rate of Return
• Net Present Cost
• Annualized Cost

Estimating Capital Needs
Financing Capital Projects

• Bond Issues
• Funding from the Parent Institution    
• Foundation Grants
• Developer Fees

Estimating Capital Budgets for Library Buildings
Case Study—New Library Branch for San Diego State University

• What Factors Drive the Need for a New Library Building?
• Who Will Be Served?

Summary
Exercises
References

8    Approval and Control
Learning Objectives
Budget Submittal, Approval, and Communication

• Budget Submittal
• Budget Communication
• Budget Approval

Control

• Financial Control Process
• Financial Dashboards
• Modifying Budgets
• Financial Condition Analysis
• Financial Audits
• Deviant Financial Behavior and Fraud
  • Inappropriate Absenteeism or Tardiness
  • Theft of Organizational Assets or Property
  • Destruction of Organization Assets or Property

Summary
Exercises
References

9    Budgetary Categories, Comparisons, Forms, and the Balanced Scorecard
Learning Objectives
Budgetary Categories
Budget Comparisons

• Historical Comparisons
• Future Estimates
  • Forecasting
  • Scenario Analysis
• Budgetary Systems
  • Payroll System
  • Purchasing System
• Balanced Scorecard
• Financial and Budgetary Forms
  • Uniform Chart of Accounts
  • Balance Sheet
  • Income Statement
  • Statement of Cash Flows:
  • Annual Operating Budget
  • Department Build-up Budget
  • Program Budget
  • Capital Budget
  • Modifying Budgets for Windfalls and Downturns

Summary
Exercises
References

Exhibits
Index