MLS Presents Annual Report and Audit

by Alice Calabrese-Berry and Scott Remmenga, MLS

At the end of the fiscal year, Metropolitan Library System (MLS) must present an annual report to the Illinois State Library.  The FY2007 Annual Report will be posted to the MLS website at http://www.mls.lib.il.us/aboutus.asp#annualreport after it has been submitted to the Illinois State Library on September 28, 2007. Below are a few highlights from Executive Director Alice Calabrese’s narrative.   

Significant Accomplishments
MLS created a Department of Consulting and Continuing Education.  A Director was hired in the last fiscal year.  Three professional staff members were hired, all with experience working in multitype libraries.  Three support staff members were transferred from other departments within the organization and utilized according to their expertise. 

• IMPACT:  Members are better served with a team of consultants with a variety of library type experience.  Site visits increased and three times as many CE events were offered.

The new Consulting and Continuing Education Department created two six-month calendars of CE events meeting the requirement in the System Standards.

• IMPACT:  The calendar is used as a communication and marketing tool for the CE program.

The new Consulting and Continuing Education Department also created MLS E-nnounce, an online newsletter which debuted January 24, 2007. MLS E-nnounce is published twice a month by the Consulting Team.

• IMPACT:  The online newsletter keeps members informed with information that is current and relevant.  The online newsletter was requested by the membership.

• IMPACT:  The SWAN membership had input at all levels, achieving buy-in from the stakeholders and a trust in the process.
• IMPACT:  This new structure should streamline the decision-making process. 
• IMPACT:  Communication to the members of SWAN will be standardized and consistent, with the minutes of the meeting being the agreed form of communication. 

Economic Challenges
The budgetary financial crisis at the State has not improved and the System has been told not to expect funding increases.  This environment also predicates the possibility of funding cuts.  In response, the Board has encouraged staff to investigate alternative sources of revenue.  Staff has begun to implement cost saving measures in order to continue providing the same level of services now performed.

LIMRiCC (Library Insurance Management and Risk Control Combination) renewals remained below the industry trend on July 1 for health insurance and related programs.  In order to keep rate increases down, the membership has committed to make minimum plan changes for the benefit of the majority of the members.  An emphasis on growing the size of the health insurance pool to help diminish the impact of large claims and provide more service has been started and will continue in the future.

Technology Challenges
It is difficult for poorly-funded libraries to keep up-to-date technologically; as members of SWAN, their inability to upgrade equipment, routers, etc. affects decision-making for consortia members.  Many of our librarians voice frustration with aging technologies and the inability to afford upgrades. 

We see the digital divide increasing within MLS, with a huge financial gap in the public libraries we serve. Some public libraries have been forced to cut service hours, placing a burden on neighboring libraries.  In communities where the citizens have little or no access to computers in the home, free public access to computers is essential. 

In response, we have encouraged and supported legislation which could bring additional dollars to libraries.  In the next fiscal year we will query the membership about their financial state and its effect on their ability to serve the citizens in their communities.  Baseline data will be collected and shared with the Illinois State Library and the rest of the state.  Once the data has been collected, the Board will discuss with the membership a course of action.

Financial Highlights
In addition to the annual report, MLS performs an annual audit.  Results are submitted to the State Library and are available online at http://www.mls.lib.il.us/aboutus.asp#annualreport.  Highlights from the Audit include:

• Assets exceeded liabilities by $8,087,038 (net assets) at the close of the fiscal year.  Of this amount, $6,879,279 is unrestricted and available to meet ongoing and future obligations.
• The change in total net assets for the System is $484,026.  Governmental activities had an increase of $132,260 through expenditure containment as overall revenue decreased from prior year.  Business-type activities had an increase of $351,766 primarily due to growing investment income and continued positive claim experience for the year.
• Total governmental funds reported an end of the year fund balance of $1,553,834.  This was an overall increase of $260,530 and from the credit received on Chicago office rent when signing five-year lease extension on Suite 680, reduced personnel/contractual costs, and increased investment income. 
• Governmental funds reported a combined total of $3,727,315 in revenues and $3,466,785 in expenditures. 
• The General Fund’s total revenue of $3,413,168 was higher than budget by $83,443.  The expenditures in the fund were $137,087 lower than budgeted which resulted in a net increase of $260,530 in the fund balance.  
• Proprietary LIMRiCC Fund’s total revenue of $2,974,057 was below budget by $82,793.  However, expenses were also significantly below budget resulting in a net asset increase of $290,298.   Net assets for the LIMRiCC Fund as of June 30, 2007 were $4,349,477.

Published September 19, 2007 in vol. 1, iss. 17 [View]