Transcript ALA Finance Workshop The Operating Agreement Audra Caplan and Charles Kratz, Jr. 2008 ALA Finances 101 Philadelphia Marriott, Salon K/L Friday - January 11, 2008

ALA Finance Workshop
The Operating Agreement
Audra Caplan and
Charles Kratz, Jr.
2008 ALA Finances 101
Philadelphia Marriott, Salon K/L
Friday - January 11, 2008
ALA Policy 6.4: Divisions
Better known as:
The “Operating Agreement”
2008 ALA Finances 101
Policy 6.4: Divisions
Approved by the ALA
Council on June 28, 1989
in Dallas, Texas
2008 ALA Finances 101
What is in the Operating
Agreement?
• 3½ pages in the Handbook of
Organization
• 5 guiding principles or values
• Procedures
• Practices
• Provisions
• Protections
2008 ALA Finances 101
Principles & Values
• Unity—“ALA is one association”
– “Divisions and all other units of ALA are
inextricably linked…”
– “…the Divisions serve the American Library
Association as a whole”
– “By supporting Division operations…ALA
gives tangible evidence of its recognition of
the importance of divisions …”
2008 ALA Finances 101
ASCLA
ALA
LAMA
2008 ALA Finances 101
3 Additional Values
• Diversity—“ALA has a stake in the work of each of
its Divisions.”
• Authority—“ALA delegates to each Division
authority…in designated areas.”
• Autonomy–“Divisions are best able to carry out their
missions when their members have the autonomy,
independence, and freedom to pursue goals and
objectives of particular concern to them…”
2008 ALA Finances 101
The Fifth Value
• Collaboration/Cooperation—“ALA and its
Divisions have opportunities…to stimulate
and build on one another’s strengths and
resources to advance shared, as well as
diverse, goals.”
2008 ALA Finances 101
Procedures
• Annual review of Policy 6.4
– A shared responsibility
•
•
•
•
ALA management
BARC, representing ALA members
Division leaders
Division executive directors
– Responsibility of BARC to initiate review
• Midwinter BARC/Divisions meeting
• At Annual Conference a standing item on PBA agenda
• BARC depends upon the divisions to set that agenda
2008 ALA Finances 101
Procedures
• Operational Practices
– Nuts-and-bolts
implementation of 6.4
– Developed
collaboratively by ALA
management and
Division executive
directors
2008 ALA Finances 101
Practices
•
•
•
•
ALA basic services
Division Basic Services
Overhead
Mandated services
2008 ALA Finances 101
Practices—Mandated Services
• In the spirit of the five
shared values, ALA
provides certain services
to the Divisions. These
services include :
–
–
–
–
–
–
–
Human Resources
Membership Services,
Telephone
Purchasing
Fiscal Services Department
Legal Counsel
Office space
2008 ALA Finances 101
50 East Huron Street
Practices—ALA Basic Services
•
•
•
•
American Libraries
Accreditation
ALA library services
Government relations
(e.g., Washington Office)
• Intellectual Freedom
• Awards &
scholarships
2008 ALA Finances 101
© 1994 Deneba Systems,
Inc.
Practices—Division Basic
Services
• Journal, newsletter
• Membership
promotion & retention
• Awards &
Scholarships
• Your staff!
2008 ALA Finances 101
Practices—Overhead
• Divisions pay overhead to
ALA in the form of indirect
costs.
– For revenue-generating
operations
– Based on a study
conducted annually
• Building, Utilities, Finance,
Accounting, Human
Resources etc.
2008 ALA Finances 101
Provisions—ALA to the
Divisions
• Office space
• Telephone
• Basic furniture and
equipment
• Equipment
maintenance
• Personnel services
•
•
•
•
Purchasing
Data processing
Member services
Public Information
services
• Fiscal services
• Copyright services
2008 ALA Finances 101
Indirect Costs*
Divisions and General Fund Support
Unit
PLA
ACRL
CHOICE
AASL
ASCLA
ALCTS
LAMA
RUSA
ALTA
LITA
ALSC
YALSA
Total
Indirect Costs
$
$
$
$
$
$
$
$
$
$
$
$
Overhead
Small Division
General Fund
Paid
Support
Support
963,371.59
874,480.13
469,474.98
592,219.57
101,919.45
243,248.05
211,013.61
206,821.44
84,600.52
223,141.39
398,897.09
249,766.75
$
$
$
$
$
$
$
$
$
$
$
$
690,862
121,683
311,875
348,604
1,792
33,972
15,796
16,038
164
37,641
82,364
14,658
$ 4,618,954.56
$
1,675,449
$
56,154
$
85,961
$
$
2008 ALA Finances 101
*Based on 2006 Indirect Cost Study
142,115
$
$
$
$
$
$
$
$
$
$
$
$
272,510
752,797
157,600
243,616
156,281
209,276
195,218
190,783
170,398
185,500
316,533
235,109
$
3,085,621
Provisions—Collaboration
• Publications—ALA Publishing has right of first
consideration
• ALA Publishing Services pays royalties on
division publications
• ALA markets audio recordings of Conference
programs and pays royalties to Divisions
2008 ALA Finances 101
Provisions—ALA to the
Divisions: Conferences
• Staff travel costs
• Meeting rooms
• Office space at
conference site
• Exhibit space at
Annual Conference
• Equipment (including
cost of labor)
2008 ALA Finances 101
Provisions—Where
Divisions are Self-reliant
• Division personnel
• Furniture and
equipment purchased
by the divisions for
their exclusive use
• Projects not specified
in Policy 6.4
• Endowments
2008 ALA Finances 101
Protections
• Budget review
– Internal within Division
– BARC & ALA
management
• Small Divisions
– Subsidy, up to 50% of
operating expenses
– ALTA & ASCLA
2008 ALA Finances 101
Implications
• Know what 6.4 says
and does!
• Communicate
• Communicate!
• Communicate!!!
• Shared responsibility
– Division leaders and
Division staff
– ALA senior
management
– BARC
2008 ALA Finances 101
It is a living document!
It is NOT carved in stone!
2008 ALA Finances 101