Graduate School of Library and Information Science University of Illinois at Urbana-Champaign

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1 Graduate School of Library and Information Science University of Illinois at Urbana-Champaign Certified Public Library Administrator (CPLA) Program Budget and Finance Core Syllabus Outline September 5 October 8, 2007 Purpose of course: To familiarize the student with the basic principles of library financial administration, including budgeting and planning within the mission and goals of the organization. Upon completion of the course the candidate is expected to be able to develop program budgets, conduct operational analysis for budget forecasting, develop capital budgets, conduct cost/benefit analyses including financial and managerial assessment of operations, and be aware of other managerial accounting techniques, and work with accounting personnel. Topics include line item, program, and capital budgets, basic managerial accounting concepts, performance measures and operations indicators, capital projects, and fiduciary responsibilities of the library director, trustees, and others having responsibilities for financial administration in the library. Since the understanding of financial statements and budgets involves some basic knowledge of accounting, there will be one session devoted to this topic, to provide a solid base for subsequent sessions. The use of Microsoft Excel is assumed and will be used at a level appropriate for someone who has basic knowledge of Microsoft Excel. Scope and length: The course will consist of 6 live synchronous sessions of 2 hours each for a total of 12 direct contact hours. Students will also be expected to participate asynchronously during the 6 weeks via discussion boards, which will add another 2-3 contact hours to the course. The course will be conducted using the Moodle course management system, which combines both synchronous and asynchronous components to deliver course content. Course Text: Selected readings from the library literature and case studies which will be made available electronically. Evaluation of student progress: Completion of five graded/evaluated individual weekly projects/assignments will be required of each student. Each of the five weekly assignments will count 25 points. To successfully complete the course the student will have to accrue 95 points (75%) and complete all assignments. In addition each student will participate in a wiki that will foster small group collaboration. Session 1 A. Purpose and structure of the course, expected learning outcomes, and evaluation B. Topics to be introduced in Session 1 in order to provide context for what follows: Financial vs. managerial accounting in the non-profit/governmental environment Financial reporting vs. budgets

2 Basic elements of financial reporting and budgets Basics of financial administration Ethics and accounting principles Accounting standards: GASB, GAAP Budgeting and planning within the context of the organization s goals and objectives should be able to identify the basic elements of financial administration in libraries, the difference between financial and managerial accounting, the difference between financial reporting and budgets, the basic accounting standards, and the ethics and fiduciary responsibilities of those involved in financial management. Readings for Session 2 1. Daubert, Madeline J. Financial management for small and medium-sized Libraries. Chicago: ALA, 1993, p (available on course website as a PDF) A. Review/comment on assignment one B. Topics to be covered in Session 2 Session 2 Basic accounting operations Double entry bookkeeping and accounting processes the journal, ledger, etc. Chart of accounts (major accounts and structure) How a budget and cost analysis produce resolution only as good as chart of accounts allows them to be should be able to explain and carry out basic accounting procedures, including doubleentry bookkeeping and creation of the chart of accounts, and interpret the basic elements of actual budget statements and financial statements. Readings for Session 3 1. Gross, Malcolm, John H. McCarthy, and Nancy E. Shelmon. Financial and Accounting Guide for Not-for Profit Organizations, 7 th ed. Hoboken, N.J., John Wiley and Sons, Chapter 20; p (available on course website as PDF) 2. Hallam, Arlita W. and Teresa R. Dalston. Managing budgets and finances. New York: Neal-Schuman, p (available on course website as a PDF) Session 3 A. Review/comment on assignment two.

3 B. Topics to be covered in Session 3 Presentation and description of line item budget Elements of line item budgets Levels of detail Aspects of budget lines Presentation and description of program budget Conversion of line item budget to program budget Hybrid budgets (combination of line item and program budgets) should be able describe the differences between a line-item budget and a program budget, convert a line item budget to a program budget, and be able to interpret a hybrid budget. Readings for Session 4 Smith, G. Stevenson. Managerial accounting for libraries and other not-for-profit organizations, 2 nd ed. Chicago: ALA, p. 1-28, , , (Note that are answers for exercises in Ch 1. (p. 1-28) and similarly p are answers for exercises in Ch. 5 (p ). (Available on course website as a PDF) A. Review/comment on Assignment 3 B. Topics to be covered Managerial accounting Cost/benefit analysis Assessing costs Costs over time and inflation How to assess and measure benefits Break even points Session 4 should be able to identify basic procedures of managerial accounting, identify costs and benefits, and perform cost/benefit analysis. Assignment: See instructions for Assignment 4. (25 points) Due: by 8:00 a.m. the day of the next class. Readings for Session 5 1. Hiller, Steve and James Self. From measurement to management: Using data wisely for planning and decision-making. Library Trends, vol. 53, no. 1, summer 2004, pp (available on course website as a PDF)

4 2. Gross, Malcolm, John H. McCarthy, and Nancy E. Shelmon. Financial and Accounting Guide for Not-for Profit Organizations, 7 th ed. Hoboken, N.J., John Wiley and Sons, Chapter 23; p (available on course website as PDF) A. Review/comment on Assignment 4 B. Topics to be covered Session 5 Develop performance measures and operations indicators Data driven decision making Evaluation How to collect data and importance of where it is stored (distributed or centrally) Setting benchmarks Service level agreements Internal control of accounting operations should be able to explain the importance of data-driven decision making, how to collect, store and retrieve relevant data for managerial decisions, set benchmarks, and perform evaluation of projects and proposals using both quantitative and qualitative factors. Readings for Session 6: 1. Hallam, Arlita W. and Teresa R. Dalston. Managing budgets and finances. New York: Neal-Schuman, p (available on course website as a PDF) 2. Daubert, Madeline J. Financial management for small and medium-sized Libraries. Chicago: ALA, 1993, p (available on course website as a PDF) A. Review/comments on Assignment 5 B. Topic for final session Session 6 Capital budgets Identify revenue sources State and local codes Trust funds Marketing and fund raising Interaction with Trustees and other fiscal authorities should be able to list the basic elements of a capital budget, identify all relevant costs and

5 revenue sources for capital budgets, identify the basic elements of marketing and its relation to the implementation of capital projects, and identify basic guidelines in dealing with Trustees and other fiscal authorities.

6 Graduate School of Library and Information Science, University of Illinois at Urbana-Champaign Certified Public Library Administrator (CPLA) Program Logistic Information for Budget and Finance - Core The course will be offered once annually, with the course starting on September 5, 2007 for six consecutive weeks. The course will be offered online via a combination of live, synchronous sessions and asynchronous discussion boards. Students will meet online weekly for 2 hours on Wednesday, September 5, and then on the following Mondays: September 10, 17, 24 and October 1 and 8, from 2:00 4:00 pm central time. Discussion boards may be accessed at any time during the course. The cost of the course including registration, fees, and materials is $300. Participants in the online seminars will need a reliable Internet connection via modem, ISDN, DSL, cable or other dedicated connectivity. A 28.8 or higher speed modem and SLIP, PPP, or other TCP/IP connectivity is required. Software requirements include a Java enabled Web Browser, Real Player software, and Adobe Reader. Hardware requirements are: an IBM compatible Pentium II or greater (at least 400mhz) with Windows 98/ME/2000/XP - or - Macintosh with OS X); 128MB RAM memory; a sound card with speakers and/or earphones; and a color monitor with at least 800x600 resolution. Students will be given a USERID and password to access online materials via the GSLIS server. Students will be able to communicate with each other and with the instructor via and the course discussion boards. Students may also contact the instructor by phone. No pre-work is required for the course. Students should be able to complete the coursework during the six week instructional period. There are no organizational requirements set by GSLIS or the University that students would have to meet prior to taking this course. Instructor: Robert H. Burger

7 Graduate School of Library and Information Science, University of Illinois at Urbana-Champaign Budget and Finance Core Instructor: Robert H. Burger Description of the Evaluative Component A manager who presents an effective program or capital budget to a higher governing authority must not only be conversant with the library and programmatic aspects of the project, but also have knowledge of the financial components of such a budget: what assumptions the cost projections were based on; the accounting system that helped produce such projections; the relation of these budgets to actual operations and the potential variances involved; the funding sources available and any constraints that may be inherent in these sources; appropriate performance measures and operations indicators; and the reliability of the data upon which projects are based. Each of the six sessions serves as a building block for integrating this knowledge. Each of the five assignments not only reinforces the knowledge gained in class, but each builds upon the other so that by the final assignment, each of the segments is fully integrated. Successful completion of the final assignment is evidence of the competencies gained throughout the workshop.