Finance

Financial Management: The sections or parts of the library depend on how big the library is and what its resources and collections are. Sometimes, they are also based on the type of library i.e. whether it is a school library or a public library or a college or university library.

The administrative section of a library is the nerve centre to the entire administrative system of the library. It aims to assist the establishment activities of the library. It is staffed with skilled and partially-skilled personnel for handling the task of management and finance, which involves the tasks such as building cleanliness, building maintenance, lift maintenance,  central air conditioning maintenance, vehicle maintenance, staff safety, staff leave and staff matters, payment processing, revenue collection, etc. This section also ascertains that all circulars, rules and regulations are upheld and keeps and maintains the records pertaining to various budgetary provisions of the library like salary, expenditure and other matters pertaining to physical stock and infrastructure of the library. More long-term issues include the planning of the construction of new libraries or extensions to the existing ones.

 

Finance: The word “Finance” means to obtain or provide money for some programme or activity and budget is a list of all planned expenses and revenues. The word “finance” is used to express any statement of monetary accounts or comparison of income with expenditure. Broadly speaking, finance is concerned with obtaining funds and making the optimal use of these funds. It is the life blood of any institution or firm and is essential for its effective functioning.

            Finance plays a very important and significant role in the organization and management of the libraries. Libraries are not profit making institutions; they are spending institutions. Once a library has been established then funds would be required on a recurring basis to maintain it in proper order and shape. It heavily depends on the continuous supply of funds for organizing their activities, programmes and services. In addition, libraries are growing organizations, larger a library grows; the more money it might require for its maintenance it. So, for continuous supply of funds there should be some assured sources of income for each and every library.

a) Sources of Fund for the Library: Different types of libraries receive funds from different sources, though some of them are common to all types of libraries.

i) Funds from Parent Organization: The university libraries get financial support from their respective universities out of their own funds; college libraries get financial support from the college budget. Same is the case for school; which is fully financed by the school management. Libraries attached to other teaching institutions are also fully financed by the management of the concerned institution.

ii) Grants from UGC: UGC is the second major source of income to the college and university library. The UGC grants are mainly plan grant which are mainly of three types:

- Recurring grants;

- Non-recurring grants;

- Adhoc grants.

            The recurring grants are given for the purpose of books and periodicals, maintenance of regular services and for anticipated contingency. The non recurring grants are given for specific equipment. The adhoc grant is given for specific purposes on the recommendation of the various visiting UGC groups.

iii) Grants from Raja Rammohun Roy Library Foundation (RRRLF): RRRLF is an autonomous organization under Dept of Culture, Govt of India and it provides book assistance (matching and non matching grants) and financial assistance to different kinds of libraries.

iv) Library Legislation: Library tax / rates form the basis of financial support for public libraries in the states having library legislation. Library rate is levied by a local authority but the tax is levied by state or central government.

v) Central Government Grants: The central universities are directly funded by the Central government (Ministry of Human Resource Development) through UGC.

vi) State Government Grant: The maintenance of state universities depends on the grants of the State government. The government grants are not directly given to the academic libraries. Government provides grants for parent organization and then the parent organization allots the necessary share to the library. The grants given by state government to the libraries of various universities are mainly non-plan grant.

            In case of a school library in some cases the state government, municipal bodies, local bodies or other organizations give funds occasionally. The government schools get full assistance from the state government.

vii) Fees and Caution Money: Almost each academic library charges fee from the students who become their members for the use of the library whether it is a university library or school library. But, the amount of library fee is usually so meager that it cannot be considered a dependable source of finance. Many libraries receive caution money from the reader. It is refundable and is refunded when a reader surrenders his/her library membership. But its interest may become a source of income for the library.

viii) Fine and Penalties: The libraries can impose fine and penalties for the late return of books or against losses or misuse of books. But it is not enough to be considered as a source of finance because its main aim is to compel the users to return the borrowed books in time and not to damage it.

ix) Research Activities: When research projects are approved by the UGC, the government departments like DST, CSIR, Planning Commission, etc or other agencies like ICSSR, ICHR, ICPR, etc, a part of the research grant is kept for books and journals which, after the completion of the project, are to be deposited in the university or college library.

x) Endowment and Private Donation: Libraries sometimes receive gift both in cash and kind from various sources. Generally, people with charitable bent of mind and those who love learning and believe in imparting learning to their fellow-beings donate a good number of books from their own collection. But these endowments and private donations are not permanent sources of finance and the libraries cannot depend on them.

xi) Sale of Publication: The library helps a university in publications and some libraries may have their own publications. The sale proceeds of these publications go to the library. Some big libraries publish and sell catalogues, bibliographies, etc. and thereby raise their funds.

            The income from all these publications should not be considered as a source of revenue since these publications should be made available to the user on no profit no loss basis so that the readers may be made interested in using the library resources.

xii) Income from Service: Libraries generally provide reprographic, translation, services and do charge subsidized rates for such works. These also form a source of income for the libraries.

xiii) Other Sources: Libraries can also generate their funds by sale of waste papers, money received from rent of the seminar hall of the library, etc. All these also form a small source of income for the library.

            Library tax/rates form the basis of the financial support for public libraries in the states having library legislation. In college libraries, library fee and grants from the state and Central Government are the main sources. In a special library, money would come from the parent body. In case of the Central University libraries, UGC is the source. Gifts and endowment are not very common.

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