ASSET MANAGEMENT

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Welcome to Library Directors 101, brought to you by COSLA, the Chief Officers of State Library Agencies, an independent organization of the chief officers of state and territorial agencies designated as the state library administrative agency and responsible for statewide library development. COSLA's CE (Continuing Education) Connector project is supported through funding from the Institute of Museum and Library Services (IMLS) and the Bill & Melinda Gates Foundation.

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There are four videos in this series. In this session on Asset Management, we discuss how you will be managing all the assets of your library system, which include buildings, your collection, the budget, and your staff.

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As a new director, you want to become familiar with all the library’s assets, including personnel, the collection, the main facility and any branches,as well as available financial resources.

Knowing how the library is organized is an important first step in understanding your responsibilities for many of these assets.

  • Is your library a tax-exempt501(c)3, part of municipal government, or organized in another manner?
  • Are some or all of the employees unionized?

Find out where this information is located and start reading!

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Learning about many of these assets will be easier if the library already has organized the following materials in one place:the organization’s bylaws, any articles of incorporation, IRS Tax Status letter, personnel and procedural manuals, collection development policies and long range plans.If your library does not have some of these available,include them on your list of future considerations.Check out the resources available with this recording for examples.
Becoming familiar with the library’s assets should be approached with a desire to understand how everything operates.Learn what works well and note where problems may exist; however, you should not be looking to make changes now.Reasons for the way things operate may not be apparent initially.
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Let’s begin by talking about managing your personnel assets.

Become familiar with city or county management personnel policies. Check the library’s Personnel Manual for departmental hierarchy, job descriptions and policies on leave, and hiring and firing of paid employees.

The manual should also include policies on employee benefits, such as health, retirement and paid leave as well as grievance procedures and scheduling information.Are federal laws referenced in the manual?If this information is not compiled in a personnel manual, you may want to gather the various related policies that do exist as a basis of a future manual.Policies that have not been developed should be discussed with the board or municipality for the governing authority’s eventual approval.All personnel policies should be applied consistently.
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You may have a mix of degreed librarians and non-degreedstaff.If the union represents any employees, read over any collective bargaining agreements. You may also have volunteers, work-study students or other program workers.Refer to the volunteer manual or the agreements the library may have with other work programs.Are accommodations made for those workers with special needs?You are ultimately responsible for these areas even though the library may have a human resources department or volunteer coordinator.Learn about federal employment law and consider taking a general course on employment laws in your state if you are unfamiliar with them.

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During the first few weeks, get to know the library employees and volunteers. Make yourself accessible. Having a new director is also a transition for them and some workers may feel insecure or have questions. Make an effort to meet each worker individually if the size of your organization permits. Ask them about their job, work background and their proudest accomplishments.Do they have any suggestions for their work area?Regular meetings with staff are important to keep everyone informed and to prevent inaccurate speculation.Heads of departments should be able to provide you with information about current programs and any issues that need your attention.

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You are responsible for hiring, managing, and potentially firing, staff.If you are part of city or county government, hiring may be done by their human resources department but you may be invited to the interviews and will have input on evaluations.Your decisions in the area of personnel and hiring staff are your most significant responsibilities.

Find out where your employees excel and learn to delegate. Staff members want to feel they are important contributors to the library’s success. By giving them responsibilities related to their talents, they contribute in meaningful ways. Don’t try to do it all. Trust your staff.

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You will eventually evaluate those who report directly to you. Having an up to date job description is essential for employees, and also volunteers. The job description lists their duties and responsibilities and therefore provides a basis for evaluating their performance. Evaluations are helpful to the employee as well as to managementand can be a means for determining training needs, setting goals, reassignments or in determining whether the employee and the library are still a good match for each other. Make sure that job descriptions are kept up to date.Evaluations should be done at least annually.

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The library’s community is best served by library staff who do their job well. Training is important to help staff keep up with needed skills and the changing needs of the community.As the director you can provide workers with internal training and can provide time and encouragement for library workers to attend online and outside workshops as well as to actively participate with professional associations.
Besides general training, such as customer service, each library employee has separate training needs depending on their job function.Become familiar with each work area of the library.Learn how each department of the library interacts with the others.Is there a procedural manual that provides each department with instruction?Are the written procedures the ones that are actually being followed?If not, find out why.

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Next, let’s talk about managing your library’s financial assets.

To be a good steward of the library’s resources you need to understand the library’s financial situation and obligations.Gather the library’s annual report, the Federal 990 form (if the library is a nonprofit organization), and monthly income and expense reports.

  • How are invoices reviewed and routed?
  • Are bills paid electronically?
  • Who signs checks?
  • How is petty cash handled?
  • How does the library ensure a system of checks and balances?
  • Are audits regularly performed?
  • What accounting firm is used, if any?
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If you do not have access to a bookkeeper or accounting office, find out who is responsible for completion and submission of financial reports.If you will be responsible for keeping the ‘books’ consider taking a course to learn a financial software program.Ask for recommendations from other librarians in the area or your state liaison.

As the director,you will be responsible for ensuring that accurate records are kept and may make regular expenditure reports to a board or other governing authority.You will also have reporting responsibilities to other funders, such as to the state library, if you receive state aid, or to granting authorities.Youneed to become familiar with the budget and its various line items.Budgets are critical because they serve many functions: (a) they are a policy document; (b) a financial process; (3) an operations guide; and (4) a communications device for the community you serve.

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Here are some budget preparation tips and best practicesaccording to The Indispensable Librarian, by Doug Johnson.

Effective library budget makers:

•Submit budget proposals even when they have not been requested or the
chances of funding are slim.

•Counter the argument that the free Internet will replace libraries, books, and purchased online information sources.

•Describe the consequences of an under-funded budget in concrete terms.

•Construct outcome-driven budgets that are specific in supporting library goals.

•Recognize the sources for budget dollars and who controls those dollars.

•Include maintenance as a line-item in the budget

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Effective library budget makers also:

•Are prepared to report on how past budget dollars have been spent

•Use their advisory committee or library Friends group to build support for
the budget request

•Are active and visible as a leader in professional and community organizations

•Use technology to improve their budget and communication skills

•Think about sustainability, not just short-term funding

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Revenue is the life-blood of a thriving library program.

Become familiar with the library’s various streams of revenue and current expenditures.Libraries typically receive local government funding, such as a dedicated library tax or millage, state or federal income, grants, fines, and gifts and donations as well as income from annual appeals or interest income from investments.Some libraries may have taxable income from operating a cafe or from the sale of books.Find out if you are expected to do fundraising and when any fundraising events are normally held.
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Expense line items may include salaries, wages and benefits, fundraising expenses, materials and utilities, insurance and other facility maintenance expenses.You may find it helpful to further define each line item for more specific expenditures, such as books and e-resources.Even within those expenditures you may want to keep closer track of what you spend.For example, under ‘Books’ you could create line items by types (children, adult fiction, nonfiction etc), by income source (memorial, specific grant, etc) or by particular vendor or purchasing plan.The line items are a tool for your use and for informing others, keeping in mind any reporting obligations that are required.Typical percentages in a budget are 60-80% for personnel, 10-20% for materials and the balance for other expenses.You can find sample budgets among the resources for this module.
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Line items on the budget are a guide.You will not receive, or necessarily spend, the exact amount listed for each item.If you spend less in one area you may spend more in another as long as you keep within the total budgeted amount.Ask your governing authority if there is a percentage change of line items that would require their approval.Be aware that some of these expenses may be obligations as reflected by grants or gift income line items, and you may not be able to change the expenditure.Youwould not be able to count on receiving such income and making those expenditures in the following year.You may also have to comply with maintenance of effort in funding or expenditures in order to receive some funding streams.Check with your local government funders or state liaison.Monitor your income and expenditures on a regular basis.
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A good look at the library’s income, expenses and any transfers in from endowments or dedicated funds should give you an indication of the health of the library’s finances.Use this information when planning expenditures, considering whether to apply for grants or whether to recommend that the board consider additional municipal assistance or other actions. You will eventually prepare a preliminary annual budget recommendation to the board or governing authority, based on present and anticipated revenues.You may use the previous year’s proposal as a guide with the knowledge that some income line items may not be available and that other expenses may be incurred.It is a good idea to have a miscellaneous line item of at least ten percent.The board or governing authority will make the ultimate decision on the budget.
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You need to be able to speak knowledgably about the library’s finances and give an approximate amount when asked about the library’s budget or particular line item amounts.Learn about account transfers and dedicated funds if you are not currently familiar with these terms.Does the library use the cash basis or accrual method of accounting, or a modified form of either?Knowing how to read a financial report will be useful as you may be called upon to explain the library’s finances to new board members and to groups outside the library.

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Now let’s talk about managing the collection – another important part of the library’s assets.

As a new director you need to become familiar with the collection and the library’s collection development policy.A library should offer a range of materials and e-resources that are current, classified and relevant to the community.The collection development policy will address how materials are selected.Selection should also consider any resources available through shared regional or state organizations.Regional partnerships or state standards may also dictate depth or size of the collection. If this is a brand new facility, has an opening day collection been planned?

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How material is de-accessioned, or weeded, should also be mentioned in the policy.Weeding is essential to keep the collection current.A procedure for handling complaints should be included.Consider including ALA’s Library Bill of Rights and The Freedom to Read Statement.

The director may help or entirely write the collection development policy but it is the board’s, or governing authority’s, role to adopt policy.The collection development policy should be reviewed annually.Check the resources available with this recording for sample policies.

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Circulation records and user requests can help determine what materials are needed.

  • What is the collection size and condition?
  • Has an inventory been done in the last few years?
  • What items are missing that need to be replaced?

Professional reviews should also be consulted. You also need to be aware of any collection size or expenditures that need to be met for any regional or state aid requirements.

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Selection of materials may be done by various departments responsible for sections of the collection, handled by one person, or may be the library director’s responsibility.It may depend on the size of the library and depth of collection.Whether donations or gifts for the collection are accepted should be addressed in the collection development policy.
What vendors are used by the library?The library may use one vendor for particular materials and different vendors for other materials.Vendors are able to offer discounts based on the order size and other factors.Forty percent discount for book orders is not an unrealistic expectation.Also find out if your library is eligible for any cooperative purchasing plans with other libraries.

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After materials are selected, they need to be processed for circulation, classified and added to the library’s or a shared integrated library system (your ILS).A more cost effective option may be to purchase materials already processed, with MARC records.

You will need to report on general collection and circulation statistics.Become familiar with your automated circulation system and its capabilities.

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Safeguarding the collection is also an important responsibility.

  • Is there a regular procedure for ensuring the return of materials?
  • Is shelf-reading done on a regular basis?
  • How and when is the collection inventoried?
  • Is the facility well maintained? Water leaks and other factors can affect the collection.
  • Does the library have a security system?
  • And is your collection insured? (Usually insuring for an ‘opening day’ collection amount is sufficient for most community libraries)

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Finally, let’s talk about Facilities.
As described by PLA’s Managing Facilities for Results: “The public library’s image is part of the community’s image…so routine assessment of the condition of your library building is critical for facilities management.”

The way your library looks, feels and smells affects people who come to the library even before they begin to access the resources you provide.Looking at your facility with ‘fresh eyes’ over time is important.It is a good idea to do at least a seasonal ‘walk-around’ the facility to check items both inside and outside the building.

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When assessing the Exterior of your facilities think about the following:

  • Signage: Is it adequate and easily readable from the street? Are your hours posted?
  • Landscaping: Do the library grounds meet or exceed community standards?
  • Parking: Is it Sufficient during all opening hours? And are parking areas well lit?
  • Are doorways clearly marked and ADA-compliant?
  • Is there any weather related damage that requires attention?
  • Does the building façade need painting or a good cleaning?
  • Check all areas of the exterior including the condition of the roof, windows, and foundation

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