---------- Forwarded message ----------
Date: Mon, 3 Nov 1997 12:02:43 -0600
From: Sharon McCaslin <sharonm@PSCOSF.PERU.EDU>
Subject: Re: Periodicals Invoices and budget years

I think "established accounting procedures" depends a lot on who does the
establishing.  In our three state college system (all with the same
auditors, theoretically the same computerized operating system, answerable
to the same state board office) we have three libraries.  One of them does
something like you suggest (splitting the year).  We do not.  I do not
know what the third college does.  Obviously "acceptable" practice (to the
very same auditors mind you) differs quite a bit.

Up until this fall, however, on our campus we had been counting all
subscriptions as "epehemeral" material rather than a part of the permanent
collection (due to an error in definition on the budget explanation).
After making that change, we may have a rude awakening next year, who
knows?  I just try to get a firm answer on what the accountants (THIS
year's accountants that is) want, and then go from there.

No, I do not think III will do the split for you -- you will have to do it
yourself.  However, since the money actually goes out this year, you may
want to ignore the split on Innovative.

Enjoy!!!
                                                        Sharon
At 08:33 AM 10/29/97 -0600, you wrote:
>Here is a question I have not seen addressed on this list since I've been
>a subscriber. Each year around this time our library receives our annual
>renewal invoice from our major periodicals vendor. The amount is usually
>around $ 60,000. In past years we have simply paid the invoice on our
>automated Library system, approved the invoice for payment and sent it
>over to the business office to have the check cut, no problems.
>
>Well this year there is a problem. Now our controller and other business
>office higher ups are saying that since some of these issues will not be
>received until after July 1, 1998 that 1/2 of the invoice total will be
>charged to the Library's 1998-99 fiscal year budget and the other 1/2 to
>the current 1997-98 fiscal year budget. They will go ahead and cut the
>check for the full amount right now, but when July 1, 1998 rolls around we
>will start the year out with our periodicals budget in the hole for the
>amount equal to 1/2 of the invoice we have just recieved (around $ 30,000)
>Our fiscal year runs July 1 - June 30.
>
>Their reasoning is that since we will not actually be "using" or
>"receiving" some of these journal issues until the next fiscal year, we
>cannot pay for them with money from the current fiscal year.
>
>Of course when we receive the renewal invoice in the Fall of 1998 1/2 will
>be paid from FY 1998-99, and 1/2 from FY 99-00 (boy it's weird typing
>that!) It sort of makes sense but also seems like a big bother to me. I am
>also a little concerned about what this means in terms of keeping track of
>how much has already been expended against the next year's budget. There
>is also the issue of how our Library system (Innovative) will handle this. I
>don't think it has the capability of splitting an invoice total between
>fiscal years.
>
>The business office keeps bringing up "established accounting procedures
>and standards" as their rationale. Well, they never seemed to be concerned
>about these "standards" in years past and I don't think periodicals
>publishers and vendors fall into the same categories as maintenance and
>service contracts, their example of the proper application of these
>standards.
>
>Does this sound familiar to anyone out there? Are these accounting
>standards applied to other libraries' periodicals invoices and budgets?
>Our VP of finance is interested in the response I get, so if this is not
>standard operating procedure in most college libraries maybe I can win
>this battle. If it is the established procedure, I guess I can live with
>that too.
>
>Thanks in advance for all responses and advice
>
> Peter Boll
> Acquistions/Serials Librarian
> Central College
> Pella, IA 50219
>
> bollp@central.edu
>
>
Dr. Sharon McCaslin                     sharonm@bobcat.peru.edu
Technical Services Librarian/           (402)872-2306
Associate Professor
Peru State College
P.O. Box 10
Peru NE  68421