LIS 901B: Summer 2005 Lecture 3

1
LIS 901B Summer 2005Lecture 3

• Acquisitions Funding
• Acquisitions Gifts

2
Acquisitions Budgets

• Who prepares/authorizes
• Organization of a budget
• Allocation method
• Establishing a budget
• Adjustments/revisions
• Accounting
• Auditing requirements

3
Budget

• Definition of materials expenditure changing
• Proliferation and cost of electronic resources
• Materials are often a protected budget category
• Access expenditures
• Traditional ILL invoices
• Subsidized, unmediated document delivery
• Online searching expenses
• Bibliographic utilities

4
Budget (cont.)

• Acquisitions direct-cost expenditures
• Cost of materials
• Shipping and handling costs
• Book vendor supplied shelf-ready expenses
• Record enrichment costs for newly purchased items
• PromptCat or purchased government document
  cataloging expenses
• Aggregator bibliographic records
• Binding

5
Budget (cont.)

• Allocating funds within materials budget
• Serials
• Automatic ship (i.e. approval plans)
• Slips and firm order materials
• Electronic/digital resources
• Accounting issues
• Segregation of duties
• Fund account structure
• Tracking high-cost/high-growth categories

6
Budget (cont.)

• Should be separated into various funds designated
  according to type of material to be acquired,
  regardless of size of organization
• Small public library may have separate funds for
  fiction, reference works, local history, etc.
• Large research institution may have separate
  funds for humanities, social sciences and
  science, etc.

7
Budget (cont.)

• Should, and probably required, to be separated by
  donations and endowments, etc.
• Allows tracking of trends and control of
  individual accounts

8
Financial Management

• Budgeting
• Operations budgeting
• Unit cost assessment
• Collections budgeting
• Purchase price negotiations
• Vendor performance monitoring
• Price projections

9
Allocation Methods Depend Upon 3 Factors Plus
Politics

• Internal library factors and politics
• Organization, past practice, purpose of
  allocation (control or guideline)
• Institutional needs and politics
• Mission, goals, budget control, financial
  condition
• Extra-institutional factors and politics
• Politics, values, accountability. Social
  expectations, outside agencies (control or
  monitor)

10
6 Allocation Methods

• Historical (we always do it this way)
• Zero-based (not historical)
• Formula (weighted ratios, , - )
• Ranking (priorities, strengths, numbers)
• Percentages (represents community)
• Modeling (e.g. conspectus if we spend this the
  collection will look like that in 5 years)

11
Allocation in Research Libraries

• Based upon differing factors and differing
  weights given to factors, e.g.
• Departmental enrollment (majors) or student FTE
  in departmental courses
• Ratio of serials to monographs
• Ratio of grad to undergrad students
• Strengths or weaknesses of collection measured
  against curriculum
• Changes in curriculum
• Circulation and other measures of use
• Ratio of electronic to paper-based media

12
Allocation in Public Libraries

• Differences in service communities
• Ratio of bestsellers to general titles
• Ratio of fiction to nonfiction
• Demand
• discretionary funds for patron requests
• Formats Serials
• Formats Electronic, paper, non-paper media

13
Allocation in School Libraries

• Curriculum and curriculum changes
• Number of students
• Grades of students and number of students per
  grade
• Aging of collection
• Replacement of lost books
• Formats Electronic, paper and non-paper media
• State standards

14
Allocation in Special Libraries

• Needs of clients
• Number of clients
• Immediate access to materials or to information
• Importance of electronic materials
• Number of subject areas
• Ratio of serials to monographs

15
Acquisition of Electronic Resources

• Very little standardization from library to
  library with regard to selection and ordering
  process
• High cost, leading libraries to pursue the
  formation of consortia to increase purchasing
  power

16
Acquisitions Process for Electronic Resources

• After electronic resource selected, standard
  acquisitions functions of verifying bibliographic
  information, identifying pricing options, and
  determining terms of availability are challenging
• A single database or electronic journal may be
  available from multiple sources, each with
  different search software, retrieval capabilities
  and user functions
• Acquisitions librarians must work closely with
  vendors
• Placing an order may be a challenge because
  standard ordering procedures and forms may need
  to be supplemented with info on number of users,
  etc.

17
Three Requirements of Budgets

• They should be an estimate, often itemized, of
  expected income and expense
• They should be a plan of operation based upon
  such an estimate
• They should serve as an estimated allotment of
  funds for a given period

18
Electronic Resources Defy These Requirements

• These materials have such a variety of payment
  plans that it is hard to estimate what expense
  they will cause
• These materials demand peripheral support which
  makes it difficult to develop a plan of operation
  without that support in place
• These materials are being published without much
  advance notice and are also politically sensitive
  since they decrease funds available for other
  formats

19
Pricing Models for Electronic Resources

• If library subscribes to print version,
  electronic version can be accessed at no
  additional charge
• If library subscribes to print version, there may
  be a small additional charge for access to
  electronic version
• Some electronic versions are available without
  subscription to print version, at same
  subscription cost as print
• Some publishers offer an electronic only
  subscription for slightly less than print

20
Pricing Models for Electronic Resources (cont.)

• Some publications are only available
  electronically and they carry their own cost for
  subscription
• Some publishers and aggregators operate on a
  pure bundling model where a library or
  consortium must license the entire list of their
  journals with no individual selections possible
• Some aggregators of electronic journals and
  databases offer a pay-per-view option that allows
  users to enter an account number already
  established to access articles from journals that
  are not on subscription
• Many electronic products are, of course, freely
  available on the web

21
Budgeting Access Issues

• Publisher can define location of usage, e.g.
  building, IP address
• Price may be based on number of simultaneous
  users or number of ports
• Price may be based on number of passwords issued,
  size of acquisitions budget, or dollars spent
  with publisher
• May be additional charges for printing or
  downloading

22
Budgeting Access Issues (cont.)

• Prices may be computed according to whether the
  product is networked or stands alone, the number
  of transactions, the number of users or FTEs
• ILL rights may be restricted
• May be special conditions regarding backfiles or
  prior usage

23
Budgeting Other Issues

• Overlap of titles offered by different providers
  and package deals that cause duplication
• Confusion exists over exactly what the library
  owns
• Lack of stable price lists

24
Budgeting for Electronic Resources

• All purchases of electronic resources and
  subscriptions are taken from the general
  materials budget of the library
• Some electronic resources or subscriptions are
  taken off the top of the budget before the
  materials budget is allocated
• Some libraries set aside a certain percentage of
  the materials budget for electronic resources, or
  they may set up a spending ratio of books to
  serials to electronic resources in order to make
  allocations

25
Budgeting for Electronic Resources (cont.)

• Some libraries allow a portion of their materials
  budget to cover hardware costs, processing costs
  (e.g. bibliographic records) as well as software
  costs
• Some libraries require purchases of electronic
  resources through team selection or at least with
  a check-off system so that a wide-ranging review
  of a product is made before it is finally
  selected for purchase. This approach is also
  helpful regarding the broad range of subject
  matters that may be included in an electronic
  resource, so coordination across disciplines and
  between subject specialists and technical experts
  can be achieved

26
Budgeting for Electronic Resources (cont.)

• Consortium purchases
• Information at the article level
• Document delivery service
• Block for titles owned in print?

27
Tracking Electronic Resources Prices

• Local library estimates
• Working with vendors to track expenditures
• Ordering through a bibliographic utility
• Adding a position for electronic services

28
Budgeting Tips

• Acquire expensive titles through political
  efforts contact departments, donors, consortia
  memberships
• Track electronic expenditures using expense codes
  in online acquisitions system
• Make case that electronic resources are not a
  panacea which will replace print and other media
  and may not provide cost savings for the library
  in the long-run
• User outreach is important
• Planning is important involve as many staff as
  necessary

29
Cost Analysis of Acquisitions and Cataloging

• Define the function to be measured.
• Determine the unit of measure and the number of
  units produced on an annual basis
• Determine labor cost for the function being
  measured
• Identify annual costs for supplies and operating
  expenses for the function in question

30
Cost Analysis (cont.)

• If equipment is needed to perform function being
  measured, its cost should be included
• Decide whether overhead (utilities, space, etc.)
  should be included
• Total all costs and divide by number of units

31
Sources of Acquisitions Funds

• Appropriations
• Gifts
• Grants
• Other
• Endowment funds

32
Controlling Acquisitions (Financial Management)

• Ordering and payment centers different
• Audit trails
• How long to keep records?
• Electronic records adequate?
• Some institutions may require purchase orders to
  be issued from business office
• Library loses control over what gets ordered and
  when

33
Controlling Acquisitions (Financial Management)

• Payment
• Centered in library or institutions business
  office
• Additional discounts for early payment/pre-payment
  
• Handling of statements and notices for unpaid
  invoices
• Deposit accounts

34
(No Transcript)
35
Electronic invoicing

• EDI Electronic Data
  Interchange
• EDI is not ...
• Eating Disorder Inventory
• Economic Development Institute
• Idi Amin

36
EDI is EC (Electronic Commerce)

• EDI is not
• Free text electronic mail
• MARC
• Z39.50
• Bibliographic information

37
EDI What is it?

• Transfer of business documents between
  computers
• Business transactions routine orders, claims,
  invoices
• Standard formats UN/EDIFACT, X12
• Computer to computer no human involvement
• Use of telecommunications networks

38
EDI Benefits

• Improved service and business
• Increased accuracy
• Elimination of forms and postage costs
• Faster service
• Reduced stock inventory
• Fewer inquiries
• Time for other projects
• Required for doing business in some arenas

39
Gifts and Exchanges

• Organizationally, found in different parts of
  library
• Labor-intensive
• Require high-level staff
• No money changes hands

40
Exchanges

• Reciprocal
• Usually foreign publications
• Usually for serials
• Needs close monitoring for balance
• Requires special knowledge of languages,
  geographic areas
• Intense correspondence

41
Positive Points of Exchanges

• Exchanges between international libraries are an
  intercultural activity and an important gesture
  of goodwill
• Exchanges usually unaffected by subscription
  price increases
• Do not rely on currency conversion problems
• Certain titles only available on exchange

42
Positive Points of Exchanges

• Many titles acquired through exchange would be
  expensive to acquire
• Some are hard-to-find U.S. government and foreign
  university publications
• Can be valuable additions to collection
• Small staff can administer an automated exchange
  program

43
Negative Points of Exchanges

• Can be very labor intensive
• Exchange partners may send publications
  irregularly or not at all
• Difficult to establish a reciprocal or cost
  effective exchange agreement with unlisted
  subscription costs

44
Negative Points of Exchanges

• Exchange partners must often purchase the
  journals and monographs they offer as barter to
  other institutions
• Exchange programs usually have hidden expenses,
  such as the cost of shipping barter materials

45
Gifts

• Can obtain unique titles
• Significant source of out-of-print material
• Valuable mixed in with much thats not
• Much duplication or out of scope of collection
• Needs clear policy

46
Gifts (cont.)

• Requires tact when negotiating with donors
• May be asked to evaluate donation for tax
  purposes
• Tax forms

47
Positive Points of Gifts

• Gifts can replace worn and missing items in a
  library
• Out-of-print desiderata often surface from gift
  donations
• Gifts can foster communication and goodwill in a
  library community
• Gifts may become heavily used or important
  research additions to a collection

48
Positive Points of Gifts

• Some titles that are not available by purchase
  are available as gifts
• Worthwhile gift materials not selected for
  library collection can be put in a book sale,
  sold to dealers, or given away to underfunded
  libraries and institutions. Make sure this is
  approved by donor

49
Negative Points of Gifts

• Gifts require staff time and are costly to
  process
• Dealing with even well meaning gift donors is
  frequently an aggravation to staff
• Gifts take up precious space in a library
• Many collection managers give gifts a low
  priority, so they may sit on review shelves for a
  long time

50
Negative Points of Gifts

• A large percentage of most gifts are not added to
  the collection, which creates disposal problems
• Overall, since most gift books added to a
  collection are older editions, they will be less
  frequently used by library patrons