07 Funding

7.1 Source of funding
7.2 Funding allocation
7.3 Budget management
7.4 Collection asset plan
7.5 Valuation of the collection

7.1 Source of funding

ACL/TPK is funded by Auckland City Council through rates, and membership is free to all residents and ratepayers and students who attend school in Auckland City.

Final responsibility and authority for collection development rests with the Libraries Group Manager who operates within the framework of the policies adopted by Auckland City.

Funding for the collections is part of ACL/TPK’s operating budget. 

Capitalization of the collection budget is under investigation.  If adopted this would take effect from July 2005, when most current use collections would be capitalized.  Some materials such as newspapers and limited retention magazines would continue to be expensed, and Heritage collections are already treated as an asset.  The current use collections are depreciating assets; the Heritage collections are appreciating assets.

There is also a small amount of funding for collections from trust funds.

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7.2 Funding allocation

Funding allocation is reviewed annually within the context of the priorities of the three-year Collection Development Plan, which takes into account the use patterns over the previous year and the targets set for the next year.

The funding is allocated at the first level into these categories: Adult Fiction; Adult Non-fiction; Adult Literacy & Language courses; Children’s; Teenage; Large Print; World Languages; Non-book including Revenue Generating; Music Scores; Serials; Digital Resources; Heritage; and LOGIS.

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7.3 Budget management

Selectors are responsible for the ongoing management of their portion of the budget throughout the year, and work to agreed targets for expenditure levels at given times of the year.

Overall responsibility for delivering the budget and the appropriate expenditure and management of collection budgets rests with the Collections Manager.

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7.4 Collection asset plan

A key tool in managing the collection budget is the collection asset plan ^xvi, which develops a strategic approach to the management of ACL/TPK’s collection as an asset. The ACL/TPK collection represents a significant capital investment, with service potential and economic benefits as well as a measured value.

The Collections Asset Plan:

• Contributes to the best utilisation of the library collection in the delivery of services in-line with council outcomes.
• Supports managers in developing the library collection, ensuring that it responds to the changing environment in which library services are delivered.

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7.5 Valuation of the collection

Auckland City accounting policies require a valuation of the ACL/TPK collection to be completed every three years. The purpose of the valuation is to update asset values. The next is due in 2005.

The last valuation was completed in the 2001/2002 financial year. ^xvii Methodologies for conducting the valuation were developed to ensure that the Institute of Chartered Accountants Financial Reporting Standard No. 3 (FRS-3) for Accounting for Property, Plant, and Equipment were met.  Audit New Zealand reviewed and approved the methodologies.  ACL/TPK’s collections were divided into two key areas for the valuation – Heritage Collections and Current Use Collections.

Heritage Collections are held by ACL/TPK permanently.  The key collections include Printed Collections, Manuscripts, Photographs, Historical Maps, Ephemera, Heritage Music, Te Kohinga Matua Maori, and Local and Family History.  These collections of national and international significance continue to increase in value each year, and are considered a major asset of Auckland City.

The Heritage collections in 2002 included 62,458 printed books, over 500,000 photographs, 5,233 historic maps, 27,878 pieces of ephemera plus other items in various formats.  

For the 2001/2002 valuation the total Heritage collections were valued at $126,974,761, an increase of $40,256,722 since the 1998/99 valuation.

Current Use Collections are resources used on a day-to-day operational basis. The collections include lending material users can borrow and reference material users can access.

In 2001/2002 the current use collections included in the valuation consisted of 1,134,469 items, and were assigned a depreciated value of $13,791,134. 

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