Transcript FINANCIAL MANAGEMENT IN THE SMALL PUBLIC LIBRARY

Safeguards and
protection for
your library
Policies
and
Procedures
Table of contents
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Slides 2 – 14 Introduction and overview
Slides 15 – 39 Fiscal responsibilities
Slides 40 - 61 Library Facilities, including
security and disaster planning
Slides 62 – 76 Personnel
Slides 77 – 86 Collection policies, including
Children’s Services
Slides 87 – 95 Intellectual Freedom
Slides 96 –101 Public Access Computers
Can you answer these
questions?
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Does your library have up to date policies?
What common policies don’t you have?
Is there a process in place to regularly review
policies? What is it? What should it be?
Do you have an ethics policy?
Why does our library need policies and
procedures?
What’s the difference between a
policy and a procedure?
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A policy is a course of action on a specific
topic adopted by a library.
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Procedures are the steps to be followed in
implementing the policy.
Library Policies
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Policies are the rules of the Library
Policies should be developed thoughtfully
and revised regularly
Policies provide you and the library with legal
protection
Policies are useless unless you and your
patrons know them
Categorizing policies
Internal Policies
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personnel, disaster planning, etc.
External Policies
•
dealing with the public
These areas can be further broken down to suit your
library’s particular organizational structure.
Essential Policies
Board Policies
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By-laws
Meeting Protocols
Continuing Education
Ethics and conflicts of interest
Friends Groups
Financial accountability
Essential policies, continued
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Security and Emergencies
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Public Safety
Crisis Management
Inclement Weather
Facilities
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The Library Building and Grounds
Meeting room and Displays
Equipment
Essential Policies, continued
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Personnel Policies
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Staff Manuals
Union Contracts/Contracts
Employee acknowledgement
The Library as a “Limited” or “Designated”
Public Forum
Essential policies, continued
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Operational Policies
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Library hours and days open
Lending rules, library cards, etc.
Patron behavior
Collection Management
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Selection
Weeding
Essential policies, continued
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Intellectual Freedom
Challenges to library material
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Public Computers
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Sample Policies
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http://www.owlsnet.info/L4L/policies/sample.asp
http://winslo.state.oh.us/publib/policies.html
Ethics and the Public Library
Conflicts of Interest
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General Municipal Law; Sec. 800
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“no officer or employee shall have an interest in
any contract with the municipality of which he is
an officer or employee…”
Inclusion of family members
“Free” services prohibited
Application to Association Libraries
Friends Groups, the Library
Director and the Library Board
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Common understanding of library’s goals
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Roles of the library administration and the
Friends
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Importance of communication
When conflict arises
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Address conflict ASAP
Working toward the same end
Clarify roles
Establish liaisons
Contact Empire Friends
Fiscal Responsibility
TWO THOUGHTS
“Oh, don’t bother me,” said the Duchess,
“I never could abide figures.”
-- Lewis Carroll, Alice’s Adventures in Wonderland
We are responsible public managers.
-- Sandra Nelson, Planning for Results
Financial policy
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involvement of a financial professional,
a public budgeting process involving both Board
and staff,
good accountability,
appropriate levels of support for the library and
compensation of its staff, and
the necessity for political work on behalf of the
library
BEST PRACTICES FOR
FINANCIAL PROCEDURES
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The library manager attends all Board meetings
The manager is involved in budget preparation and
reporting
Enough people can sign on the bank accounts so
that the required number of signatures always is
available to sign payroll and other deadline
expenses.
BEST PRACTICES, con’t.
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The library’s financial records are kept in the
library, not on the treasurer’s dining room
table, nor in the treasurer’s computer.
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This applies to all business records.
WHOSE JOB IS THIS?
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The manager and treasurer draft the budget
together.
The finance committee may review the draft.
The draft reflects the Board’s decisions in
goal setting.
The Board reviews, amends, and adopts the
budget by resolution.
FINANCIAL REPORTING
Think of it as a cycle:
 The Budget tells you what you’re going to do
– it forecasts.
 Monthly Reports tell you how you’re doing –
they are snapshots of the present.
 The Audit looks back to tell you how you did.
FINANCIAL REPORTS
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Prepared monthly
Show opening balance, transactions, and ending
balance for each fund
Show actual versus budget for the month and the
year-to-date.
Include a balance sheet for an overall picture of the
library’s finances.
Include notes to comment or explain items as
needed.
THE AUDIT
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An annual evaluation of the library’s financial
records and procedures.
Vital to our responsibility of public
accountability.
Brings professional expertise and advice to
the increasingly complex world of financial
management.
DO WE NEED ONE?
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The short answer is, YES!!
The longer answer is, for a very small library,
a professionally conducted CPA’s audit is
expensive.
Where’s the cut-off?
What are the alternatives?
YOU SHOULD HAVE A
CERTIFIED AUDIT BECAUSE:
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Beginning in 2009 for the 2008 fiscal year, all
non-profit agencies are required to file an IRS
Form 990 tax return.
YOU NEED A CERTIFIED AUDIT IF:
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you take in $25,000 or more annually.
ALTERNATIVES TO THE
CERTIFIED AUDIT
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Ask an accountant for a review rather than a
certified audit.
Appoint an audit committee of Board
members
Find qualified community members who will
check the library’s books on a volunteer
basis.
FINANCIAL PROCEDURES
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Goal setting: manager recommends, Board
reviews and revises; adopts by resolution
Budget development: manager and treasurer
draft, reflecting Board’s direction.
Finance committee (all Boards should have
one) reviews, revises.
Board adopts budget by resolution
FINANCIAL PROCEDURES:
PAYING BILLS
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5.
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Authorization to purchase goods
Receipt of goods
Approve payment
Write the check
Sign the check
File the records
VOUCHERS
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The voucher authorizes payment.
It shows:
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Who is being paid
How much
Charged to what account
Signature or initials of authorizing individual
CHECKS
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The library manager approves most bills and
prepares checks for treasurer’s signature.
Checks above a certain amount of money may
require two signatures.
Checks should be paid on a regular schedule,
generally twice a month.
A check may be written outside that schedule if
payment deadlines require.
PAYROLL
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Payroll is complex and if filings are not done in a
timely manner, the penalties are expensive.
Use a payroll service such as Paychex or ADP, or be
sure your payroll software is updated annually to
reflect current tax law. The Library System
provides payroll services for member libraries
employing seven or fewer people.
A payroll service will insure that payroll taxes are
paid on time.
DOCUMENTATION OF PAYROLL
EXPENSES
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Time sheets are the basis of payroll documentation and
all paychecks should be prepared from them.
The library needs to be able to establish the person,
date, and times worked.
This is necessary for accurate handling of workers
compensation claims, Human Rights Commission
investigations, and so forth.
Time sheets also keep track of sick and annual leave
balances.
They should be signed and dated by the employee and
by the person approving the payroll and kept forever.
BANK ACCOUNTS
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Keep a file of the current signature cards and
be sure they are changed every time signers
change.
Open additional accounts in separate banks
as needed to keep deposited amounts within
the FDIC insurance limit.
Banks will bid on banking services: ask them
for a free safe deposit box, or a sweep
account, or free checking for employees . . .
See what they will do for you.
FINANCIAL CONTROLS FOR
THE SMALL LIBRARY
How can you protect your library from theft or
fraud?
 Separate financial duties as much as you
can.
 If the manager prepares the checks, then the
treasurer should do the bank reconciliations.
MORE CONTROLS
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Use the voucher system vigorously. It
provides 4 points of approval for every
expenditure.
Use consecutively numbered checks,
purchase orders, and vouchers.
Keep unused checks locked up at all times.
STILL MORE CONTROLS ….
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Use second signatures on large checks.
Have written financial policies and
procedures and follow them.
Establish a by-laws clause about self-dealing
and profiting from library operations.
AND FINALLY . . . .
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Periodic review of financial controls by the
finance committee
Annual scrutiny of financial controls by the
auditor
ASSUME NOTHING
BEST PRACTICES FOR
FINANCIAL CONTROLS
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Each check is signed and supporting documentation
reviewed by someone other than the check
preparer.
The library’s financial records are kept in the library.
Blank checks are kept locked up and no checks are
written out of number sequence.
Copies of the audit are mailed by the auditor directly
to the Board President and executive committee.
HOW PEOPLE STEAL MONEY
Because the bad news is that sometimes they do.
 They steal cash receipts from fines or fund-raisers.
 They write checks to library vendors like the phone
company, but for their own bills.
 They falsify financial reports and audits.
 They make side deals with vendors.
WHAT YOU CAN DO
Be sure that:
 the Board understands the financial reports and the
library’s financial situation.
 both Board and staff understand and are following
all policies and procedures.
 people doing financial work take scheduled
vacations during which their part of the work is
performed by someone else.
ASSUME NOTHING!
Library Facilities
The Building and Entrance
The Library Board and the Director must be able to
answer:
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Does the Board have a “Building and Grounds” or
“Facilities” committee?
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Are there Building and Grounds/Facilities policies
that includes clear-cut procedures?
The Building
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Who does the library call or contract with for
routine repairs?
Is there a plan in place for exterior
maintenance of the library that includes
regular inspections of the roof, windows,
siding, and gutters?
Does the library budget include money for
routine maintenance as well as reserve funds
for building emergency repairs?
Meeting Rooms
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Policies
Forms
Scheduling Mechanisms
Meeting Rooms:
Other Considerations
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What technology (i.e., equipment, sound systems) is
available?
Is there an outside entrance to the meeting room?
Is there a kitchen in or close to the meeting room?
Are there restrooms close to the meeting room?
Can the meeting room, kitchen, and restrooms be
used when the library is closed?
Is there a storage area in or adjacent to the meeting
room for craft supplies, equipment, and chair or
table storage?
Exhibits, Displays
and Bulletin Boards
Equipment for Patrons
New York State minimum standards require
that all public libraries have:
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telephone
photocopier
microcomputer and printer
telefacsimile machine
other equipment necessary to facilitate access to
information
Additional Equipment
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Microfilm or microfiche reader/printer
Ellison or similar die-cut machine
Typewriter
Digital camera
Laptop computers
Media projector
DVD or Video Cassette Player
Equipment Policies
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It is essential that policies for use of library
equipment are in place and reviewed
regularly.
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Questions to ask when developing an
equipment policy include:
Equipment Policy
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What may be used by the public?
Is age a factor for use?
“Use of Equipment Policy” separate from
“Computer Use Policy” ?
Is there a charge? (copier, printer, fax
machine)
Can staff use personally?
How will exceptions be granted?
The Grounds
The Library Board and the Director must be
able to answer these questions:
 grounds maintenance
 safety for patrons and staff
 lighting
The Parking Area
The Library Board and the Director must be
able to answer these questions:
 regular
inspections
 maintenance: snowplowing, resurfacing
 accessible parking with signage
Security
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Collection security
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Burglary protection
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Display and/or display
case protection
Security Policies
Areas to consider:
 Entry and exit procedures
 Meeting room registration
 Special collections
 Entry key management procedures
 Personal belonging restrictions
Library Security
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Libris Design offers detailed instruction about
library security
Disaster Planning
and Emergency Contacts
Dealing with
Emergency Situations
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All staff should receive instruction about how
to handle emergencies.
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Procedures must be developed so that staff
knows who to call or contact first in the case
of emergency.
Dealing with
Emergency Situations
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Staff training in basic first aid – Red Cross or
ambulance corps
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Where the first aid kit is located?
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Develop a timetable for training on a
recurring basis.
Dealing with
Emergency Situations
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Similarly, staff must receive instruction about
what to do if they discover a forced entry.
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Contact your local police or sheriff’s
department to see if they offer training on
workplace safety.
Dealing with
Emergency Situations
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If the library has a security system, staff must
be instructed not to enter the building if the
alarm is sounding.
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All staff should know where fire extinguishers
are located and how to use them.
Dealing with
Emergency Situations
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Evacuation plan should be discussed with
staff annually; part of orientation for new staff.
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Diagram of emergency exits should be
displayed.
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A meeting place for staff to gather outside
should be established.
Disaster Planning
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Board of Trustees should develop a disaster
plan that is reviewed on a regular basis.
An emergency contacts list should be
included.
Procedures must be in place to handle
situations like break-ins.
Links to other disaster plans may be found in
the Resource List.
PERSONNEL
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The library director is the only employee
supervised by the library board
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The director is responsible for the
management and supervision of all other
library employees
Staffing and Strategic
Planning
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5 Year Goals
Changing expectations for libraries and
workplaces
Checklist of personnel policies
Legal Aspects of Employment
What is Compensation
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Direct Compensation
Indirect Compensation
Total Compensation
Hiring Process Overview
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Writing job descriptions
Hiring and the ADA
Interviewing
Making job offers
Orientation and training
Probationary periods
Hiring and the 5 – Year Plan
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Library goals
Staff workload
Job descriptions
Writing Job Descriptions
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Structuring the position
Abilities and skills
Sample job descriptions
Advertising
Hiring and the ADA
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Americans with Disabilities Act
Equal opportunities
Essential Job Functions
Reasonable Accommodations
Orientation and Training
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Elements of the Orientation
Personnel files
Opportunities for meeting staff
Interesting early tasks
Training
Managing Employee Job
Performance Overview
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Probationary Periods
Annual Performance Evaluations/Reviews
Performance Issues/Disciplinary Action
Terminating Employees
Rewarding Employees
Probationary Periods
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What are probationary periods?
6 months – 1 year
Importance of feedback
Annual Performance Evaluation
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Useful in establishing goals for employees.
Identifying areas for training
Provides standard documentation for job
performance
Provides management and staff with a clear
view of expectations for the coming year.
Assures that work standards and
expectations are clearly understood
Managing Performance
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Standards and expectations
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Document everything!
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Follow library procedure for addressing
disciplinary issues.
Disciplinary Action Process
If the issue is not resolved, you need to initiate
your library’s disciplinary procedure.
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Verbal Warning
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Written Warning
Termination – the last resort
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Prepare by reviewing the disciplinary action and termination
policy, the processes of attempting to correct the problem, and
any documentation involved.
The employee’s immediate supervisor is responsible for handling
the termination proceedings.
At the termination meeting:
 Make sure to have another manager or Board member present.
 Hold the meeting in a confidential and private place.
 Inform, don’t discuss. Guidelines will be defined by your
disciplinary procedures and policy.
 Since termination is the final step of established disciplinary
procedures, it should not come as a surprise to the employee.
Successful Supervision Overview
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Challenges in the small library
Checklist for creating a positive & productive
workplace
Communication
Meetings
Teambuilding
Training
The Collection
Circulation policies and
Operational procedures
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Lending rules
Library cards
Overdues
Patron Behavior
Collection Development Policy
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Identification, selection, acquisition, and
evaluation of materials.
A set of resources that will be most useful for
your community.
Why are a collection development policy and
subsequent procedures helpful to you?
• Point of reference for staff to make informed decisions
• Guidelines and protection for addressing donations and
patrons’ concerns about materials.
Elements of a Collection
Development Policy
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Goals of the collection
Materials Selection
Collection Evaluation and Assessment
Reconsideration of Materials
Sample Collection Development Policy
Evaluation of Collection
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On a yearly basis
Review the selection policy and goals for the
collection.
Depth and range
Subsections: Reference, juvenile, large print,
etc.
Replacement and updating of materials
Assess the collection
Weeding
What do we do with discarded
books?
HAVE A PLAN
 Sell
 Donate
 Recycle (as paper or art)
 Throw away
Public Concerns about
Weeding
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Post your Collection Development Policy on
your web page
Post signs
Designate a contact for questions
Children’s Services
Resources online
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For information on long-range planning and policies for youth
services at your library, see:
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Nothing but the Best: Professional Standards for Youth services in
Public Libraries in New York State. Albany, NY: New York Library
Association Youth Services Section, 2006.
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Kids Welcome Here! Writing Public Library Policies That Promote
Use by Young People. Anne E. Simon, Ed. Albany, NY: New York
Library Association, 1990. Also, Kids Still Welcome Here! An
Update of Public Library Policies That Promote Use by Young
People. Albany, NY: New York Library Association Youth Services
Section, 2001.
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Many Moons: A Year of Planning for Youth Services Librarians in
Public Libraries in New York State (in .PDF format)
Policies for Juvenile Borrower
Records
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Ages eligible
Parental permission
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Not required
Required
Family Cards
Laws and Statements about
Intellectual Freedom
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Required library policies
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Statements to include in library policies
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Relevant laws
Banned and challenged
materials
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Censorship vs. selection
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Difference between “challenged” and
“banned” materials
When the censor comes
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When the patron is in front of you
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After the patron leaves
Challenges can be opportunities
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Banned Books Week
Access of patrons to
library service
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Restricting access to materials
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Restricting programs
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Public spaces in the library
Intellectual Freedom & Youth
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“A person’s right to use a library should not
be abridged because of origin, age,
background, or views.” –ALA Library Bill of Rights
in loco parentis
Confidentiality vs. Privacy
“What happens in the library, stays in the library.”
Bill Barnes and Gene Ambaum, Unshelved.
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Privacy = un-scrutinized inquiry
Confidentiality = keeping Personally
identifiable information (PID) from the public
eye and ear
Library Policy on
Confidentiality
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What happens to collected PID
Third party restrictions on use of PID
Opt–in
Borrower information given over the phone
How borrowers give permission for others to
use card
NYLA’s Intellectual Freedom
Checklist
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Have – policies & procedures
Do – training & PR
Know – laws & community
Keep in Touch - communicate & read
Tell the World – promote intellectual freedom
Resources
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ALA Office for Intellectual Freedom:
Intellectual Freedom Manual, 6th ed. ALA: 2002.
New York Library Association’s Intellectual
Freedom Manual
Public Access Computers
Public Access Computers
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The computer use policy should be available
to users.
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Information on the library’s printing policy and
charges should be clearly displayed.
Public Access Computers
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Is library staff trained to help library users
with their computer-related questions?
Are staff members familiar with the computer
use policy and aware of how much
assistance to provide library users?
What competencies are expected of library
staff?
Public Access Computers
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The building should have enough circuits and
electrical outlets and network drops for
present and future needs.
Surge protection, antivirus software, and
firewall security is essential.
Youth & Library Computers
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Potential access to all Internet sites
Parent discomfort with computer technology
Youth comfort with computer technology
Internet and Acceptable Use Policy
Filters – Issues for All Ages
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Purpose of filters
Caveats about using filters
Keeping it in perspective
Strategies for safe Internet surfing
Policies and
procedures
safeguard
and protect
your library,
your patrons,
and you.