County glossary for 2002–03 operating statements

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Attachment II
COUNTY OF LOS ANGELES PUBLIC LIBRARY
2002-2003 LIBRARY OPERATING STATEMENTS
The following information describes various categories of cost and revenue items included
in individual library operating statements prepared for Fiscal Year 2002-03. This cost
report is based on actual year-end expenditures for all cost centers in the County Public
Library for 2002-03. The revenue reflects reimbursements for non-operating costs,
including building refurbishments and County grants for information technology. The
Operating Statements do not include other revenues contributed from cities or other
sources. The data comes directly from the County's automated countywide accounting
system, and reflects the Auditor-Controller's year-end costs for the Public Library after the
books were closed for the fiscal year.
Operating Costs
The operating costs are related to the day-to-day operation of the library and its various
services. This includes costs incurred directly by the individual library for operations
located in the facility, such as employee salaries, utilities for the building, and the purchase
of library books and materials. Also included are costs for expenses incurred by the library
for services located elsewhere but directly attributable to the library and the service it
provides, such as the cost of the computer system for checking out books, the delivery of
books and supplies to the library, and the maintenance of the building by staff
headquartered at other library or County facilities.
Operating costs included in this report include the various categories of expense identified
in the Library Operating Statements and described below. The examples listed for various
costs are not exhaustive, but provide a useful overview of the kinds of expenditures
involved in the operation of the libraries.
Salaries and Employee Benefits
These are the direct costs for the salaries of permanent (full-time) and temporary
(hourly) employees assigned to the individual library. Also included are the costs of
employee benefits such as health insurance, sick leave, retirement, and worker's
compensation, as well as overtime, shift differentials, and bilingual bonuses where
applicable.
Books and Materials: Purchase of books and other library materials such as
magazines, computer databases and audio-visual materials.
Lease - Buildings: Lease costs of facilities not owned by the county or debt service
associated with the acquisition or use of a facility.
Maintenance - Buildings and Grounds: General maintenance of library facilities such
as building maintenance and repair, grounds maintenance, and other housekeeping
costs such as custodial services, trash disposal and pest extermination services.
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Maintenance - Equipment: Costs for the maintenance of equipment items located in
the library facilities.
Facilities Special Jobs: Costs for extraordinary maintenance items, including building
refurbishments and replacements of roofs, air-conditioning systems, or other major
building systems that are not included as regular building maintenance.
Insurance: Costs of commercially issued insurance for casualty losses of our library
facilities and their contents.
Supplies: Routine and special-order supply items such as stationery, forms and
office supplies.
Utilities: Charges for utilities in the library facility such as electricity, water, gas, and
telephone service.
Facilities Services Operations: In-house services provided by Library Department
employees, including maintenance, procurement and warehousing of supplies,
contracting for services, and delivery of books and supplies to the library.
Regional Operations: Cost of providing day-to-day supervision, management and
support of library operations by the Regional offices, including staffing functions, staff
development, training, planning of regional direct service programs, coordination of
regional collection purchases, and daily trouble shooting for customer service issues
not resolved at the local library.
Acquisitions and Cataloging: Technical services to the library such as ordering
library books and materials, assigning and preparing individual copies for distribution
to local libraries, producing and maintaining the catalog, and interlibrary loan
services.
Integrated Library System: Costs of operating and maintaining the integrated library
system containing records of all book circulations and registered borrowers, and
overdue books and materials.
Information Services: Costs for the operation of various specialized information and
reference services used by all libraries, such as the municipal reference service,
business subject specialty center, ethnic resource centers, consumer health
information programs and services (CHIPS), document delivery center and
community access library line (CALL).
Equipment Purchase: Costs of purchasing equipment for the library, which may
include items such as cash registers, book detection systems, fax machines,
computers, and Integrated Library System equipment.
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Support Costs
Costs included in this category represent expenditures for various services which provide
policy direction and support to the public service operations in the libraries. These include
key functions required to operate to the library services, including County Public Library
headquarters support as well as other County services.
Administration: Costs include the executive level management of the Public Library
Department, administrative support services such as personnel and payroll services,
business office services such as payments for leases and invoices, cost accounting,
telecommunications, and PC support, graphic arts, and volunteer program
coordination.
Program Specialists: Costs include program specialists from headquarters who plan
and implement Library-wide service programs including reference and information
services, programs and collections for children and adults, and grant development
and coordination. Examples include coordinating the public access Internet program;
summer reading program design, training and materials; and negotiating Library-wide
discounts for online databases used for reference support.
Countywide Overhead Charges: This category is for Countywide overhead costs
charged to the Public Library for central administrative costs and services provided
by other County departments that are not otherwise billed to the Public Library. The
County Public Library pays approximately $11 million for various services within the
County which are directly billed. An additional amount for Countywide overhead
charges has been waived since 1995-96 in recognition of the County Library's
funding limitations. However, this charge, which is estimated to be near $2 million
annually, could be reinstated in future years, and is listed to illustrate that it would be
part of the general overhead costs for administration of the County Library.
Offsetting Revenue - Special Jobs
Occasionally, the Department receives revenue from the Board of Supervisors or other
sources as reimbursement for non-operating costs incurred at a library.
Refurbishments: Reflects reimbursements for building refurbishment projects.
Information Technology Fund: Reflects County grants for information technology
projects.
Operating Revenue
The revenue amount indicated in the operating statement reflects actual fines, fees and
lost material charges collected at the local library.
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