Ian is right.  It is unlikley that central support costs will reduce if some libraries close.  The costs will either be distributed around the rest of the library service or across the council as a whole.  Whilst I appreciate that we do need to see the true costs of running any service, reduced service budgets should also affect these costs.  In my experience there is little transparency in these costs, though other councils may be better.  It proved very difficult in my last post to get any sort of formula as to how the costs were allocated - some services did try to reflect each buisness unit's actual use, but others just divided it between each unit based usually on staff, whether we used the service or not. 
 
During my last couple of years in post, I tried to merge a service with a similar service in the neighbouring council (not libraries!).  The two services received no Council revenue funding, but a direct government grant.  However, both services were 'subsidised' by central support costs.  The merger was going very well until we hit the brick wall that was those central costs.  We proved that these costs would be reduced by the merger, but neither council were prepared to offer those reductions as savings and so a full merger could not be progressed.
 
Shelagh Levett
Managing Director
Culture Counts Consultants Ltd.
----- Original Message -----
From: [log in to unmask] href="mailto:[log in to unmask]">Ian Stringer
To: [log in to unmask] href="mailto:[log in to unmask]">[log in to unmask]
Sent: Monday, January 31, 2011 5:38 PM
Subject: Re: missing millions in Somerset?

But  I think Tim Coates is going in the right direction by pointing out the large amount of the Library Budgets spent on Council recharges, often as much as 45%. Whilst libraries with supplier selection have reduced costs  I think Tim is referring to the costs of the councils on-line ordering system.

Remember in real terms your 65p cost must include leasing of computers and IT staff time.

Backroom in the council rather than backroom in the library As most orders now have to go through the councils purchasing computer rather than direct,  the library is charged a cost for the running of this system and as a share of the wages of all people who check it.


 Some councils have saved a lot of money by getting rise of Inhuman Rresources one of the biggest drains on Library budgets. Just call in outside HR when needed. Otherwise you are paying a percentage often based on total staff and equivalents. Libraries with comparatively low levels of sickness and recruitment end up paying out of proportion.  


 Libraries often pay more than their share of corporate phone bills. These are aimed at reducing call charges. Most libraries receive far more calls than they make and are thus subsidising departments that make lots of calls.


Direct works repairs. These are usually charged to libraries at a profit based cost not on an actual cost. Direct works therefore make a profit at Libraries expense.


Many charges are based on a square meterage of building rather than number of staff once again this often means libraries are yet again subsidising  other departments. 

 

Many costs continue when a library is closed. For example the directors wage is often shared between all departments. This cost is part of running a branch but when the branch closes  the cost of the director is not saved . Perhaps if he/she took a small wage cut with every closure they might think twice about cuts.

Ian Stringer


On Mon, Jan 31, 2011 at 5:00 PM, Maggie Sumner <[log in to unmask]> wrote:
Note that Somerset too is among the list of organisations holding a current BIC E4Libraries accreditation as a reflection of its back office efficiency.

Maggie Sumner

Honorary Fellow and Past Chair, National Acquisitions Group



On Mon, Jan 31, 2011 at 4:21 PM, David Tanner <[log in to unmask]> wrote:
"The same book going through a council purchasing system will cost £20
to put on the shelf, because it has to go through so many hands."

What??
If you use supplier selection, EDI and catalogue services, as you
should,  how can you possibly add that amount of cost onto a £5.99
book?(Which we wouldn't pay 5.99 for anyway but a heavily discounted
price.) Our books are selected to a detailed spec by the supplier all we
do is unpack, receipt onto the LMS and send out to libraries within 48
hours. This efficiency has been reflected in us achieving E4 libraries
accreditation from BIC two years running. Am I alone in thinking that
this sounds like a headline grabbing figure rather than a true
reflection of how most modern library services operate?

--

David Tanner
Manager: Stock and Systems
Adult and Community Services (Information)
North Yorkshire County Council
Library HQ
21 Grammar School Lane
Northallerton
North Yorkshire
DL6 1DF
Tel: 01609 533814
Fax: 01609 780793
email: [log in to unmask]

At the moment I am reading Slipstream: A Memoir
by Elizabeth Jane Howard
http://www.guardian.co.uk/books/2002/nov/02/featuresreviews.guardianreview2

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