Chapter Two : Background to the study
2.5 The budget
The University‟s total budget for 2003 was R 719 080.0 million and 3.4 percent was allocated to the Library. The total budget for the Library for the 2003 year was R 15 490 000. (University of KwaZulu-Natal 2004b : 1)
2.5.1 The Library budget
Previously the libraries were funded under a different formula. The allocation was
incremental, whereby the library received about three percent more than the previous year.
Currently the policy of the new University is to top slice 3.4 percent of the University budget for the Library. This amount is then divided between the Durban (including Medical and Edgewood) and the Pietermaritzburg centres in the ratio of 63:37. (Walker 2003 : 4) The Library budget is further divided between the Materials budget , Supplies and Services, and Furniture and Equipment. The Supplies and Services budget covers the running expenses of the Library, such as operating expenses, photocopy costs, small building repairs, licences to URICA and so on. The Pietermaritzburg and Durban libraries then allocate the resources from the Materials budget between Faculties on the basis of formulae. Within Faculties the amount is divided between books and journals for each School in a variety of ways. (University of Natal Annual Report 2003b : 5)
2.5.1.1 The funding formula
The distribution of the Materials budget by UND Libraries took place in accordance with the Mulholland formula. The formula was devised by Professor M.M. Mulholland of the Faculty of Engineering to determine the distribution of funds between the Faculties. It is based firstly upon the collation of a large amount of statistical data and the identification and definition from these of certain key parameters. It takes into consideration the following:
total journal cost, research output, research staff numbers, academic staff numbers, student numbers, average book price, average journal price, and faculty income. All quantities are expressed as a percentage. (Hey 2000 : 3)
A component of the government‟s subsidy to Universities is a subsidy for Library purchase of books and journals. The subsidy was six percent in 2002 and 2003, which increased sharply from the four percent in 2000. The Department of Education made allowances for the increase in costs of Library materials. But the University income that was allocated to the Library was two percent in 2002 and three percent in 2003. This figure was calculated with respect to actual university income rather than budgeted income. In 2003 the books and journal allocation to the library was 3.4% of the budgeted income. (Walker 2003 : 12) The Faculty of Science was allocated 21.5% of the Library Materials budget for 2003 according to the Mulholland formula. The formulae used in Durban and Pietermaritzburg are different but produce similar effects. (Hey 2000 : 3)
Before the allocations are made an amount is first top sliced for general reference,
electronic databases and customs charges. Thereafter the balance of the Library allocation is divided between the Faculties, according to the Mulholland formula. An estimated amount for journal subscriptions for each Faculty is first top sliced off each Faculty‟s materials allocation. Negotiations then commence with the Faculties as to how their book allocations are to be spent. The Materials budget has to be approved by the Durban Library Advisory Committee. The University Librarian advises the Library representative of each Faculty of their share of the budget. Throughout the year, the Acquisitions department provides the subject librarians with the expenditure statements or month-ends for book purchases.
The total amount of the Library grant for 2003 was R 15 490 000. This was made up of R 14 102 000 (10% standard increase) and R1 388 000 Natal University Development Foundation (NUDF) bridging funds. The amount available for distribution was R 14 102 000. The general and reference materials budget of R 1 500 000 was deducted from the grant, leaving a balance of R 12 602 000 to be distributed between the various Faculties. The amount allocated to Science was R 2 709 430.00 for the period 2003, 21.5% of the total amount for distribution. Ten percent of this allocation was top-sliced for books (R 270 943) leaving the journal allocation at R 2 438 487.00.
The estimated cost of the journals for 2003 was R 3 258 264. This meant that, in effect, the Faculty of Science would be overspent by R 548 834 for 2003 (University of Natal 2003b : 5).
2.5.1.2 How and when journals are paid for
The Library budget is only physically awarded to the Library between April to May of each year, but the library pays for the journals in advance, in October to November of each year.
The journals received in 2004 were paid for in October 2003, from the 2003 April budget.
Likewise the journals received in 2003 were paid in October 2002, from the 2002 budget.
So the current subscriptions refer to journals that will be received in the following year.
The estimated cost of the journals for 2003 was R 3 258 264. This figure was arrived at by taking the amount paid for the 2002 journal subscriptions, and adding 18 percent for inflation and other charges. As the Faculty of Science would be overspent for the period of 2003, as noted in section 2.5.1.1, Professor Karim, to whom the Library (University Librarian) reported, advised the Library that the University would cover the shortfall for the journal expenditure for 2003. This was reflected in the Budget as the NUDF funding.
Professor Karim indicated that his office was committed to find ways to fund the libraries and had therefore halted any process of journal cancellations for budgetary reasons.
(Karim 2003 : 1)
As a result of Professor Karim‟s intervention, in 2003, the Faculty of Science was given the opportunity to examine its journal subscriptions, cancel those titles not required and re-instate or take out new subscriptions for the titles required. The year 2003 was an
exceptional year for the Library journal cancellation procedure. But in 2002, the Faculty of Science received an allocation of R 2 226 756 and (theoretically) spent R 2 833 273 on journals. It was overspent by R 606 517.00. The library was therefore forced to cancel titles to this value at the end of 2002 for budgetary reasons.