4
Terrill Taylor
ILS-565-S70
Professor Bielefield
August 2, 2006
Cost Finding Exercise
The purpose of this cost finding exercise is to determine the unit cost (per child registered) of providing the Summer Reading Program at the Portsmouth Free Public Library (time-frame: six weeks). This service consists of an incentive program which registers number of books read per week and a performance program which provides entertainment each week. Task analysis shows that this service can be subdivided into two major activities: registration/promotion and programming.
Direct Cost Analysis
Activity 1: Registration/Promotion
Program registration and book recording is available all hours that the library is
open for the six week Summer Reading Program session and requires the services
of a library assistant level position.
Hours of operation: 9-8 MT, 9-5 WThF, 9-1 S = 50 hours/week
32 hours/week are covered by the Foster Grandparent Program.
The librarian spends 2 days promoting the program at schools.
Labor
Description / Required for Program / Total Hours / Hourly Rate / CostLibrary Asst. for Registration / 18 hrs. x 6 wks. / 108 / $8.57* / $925.56
Librarian to Visit Schools / 2 days / 14 / $20.47* / $286.58
Total / $1,212.14
Materials and Supplies
Description / Unit Cost / # Required / Total CostPrizes / Bulk / $140.98
Books / $130.00
Paper / $8.99/500 / 1,000 fliers / $ 17.98
Total / $ 288.96
Registration forms and bookmarks supplied by the state at no charge.
Activity 2: Programming
Programming consists of 12 shows outsourced (costs below) with librarian
attending all programs (2 hours/program) and finale (7 hours/librarian and
2 assistants). The librarian also spends 1 day (7 hours plus travel) with state
organization to book programming.
Labor
Description / Required forProgram / Total Hours / Hourly Rate / Total Cost
Attend 12
Programs / 2 hours / 24 / $20.47
(Librarian) / $ 491.28
Set-up and
Attend finale
Assist finale
(2 staff) / 7 hours
7 hours / 7
14 / $20.47
(Librarian)
$ 8.57 (Staff) / $ 143.29
$ 119.98
Book Programs / 7 hours / 7 / $20.47
(Librarian) / $ 143.29
Total Labor: $ 897.84
Travel
Description / Roundtrip Mileage / Mileage Rate / Total CostTravel to
Providence / 60 miles / .36 / mile / $21.60
Total Labor + Travel = $ 897.84 + 21.60 = $ 919.44
Materials & Supplies
Juice & Cups = $ 25.00
Other Direct Costs
Performances booked: 12 programs at a total cost of $720.00
Depreciation
Description / Cost / Usage / AnnualDepreciation / 11% Allocated
(6/52 weeks)
50 chairs @
$35.00 / $1,750.00 / 10 years / $ 175.00 / $ 19.25
Indirect Cost Analysis
Indirect Cost Allocation: Total Library Square Footage: 15,030
Total Annual Physical Plant Expenditure: $55,125*
Activity 1 takes place in 950 square feet of Children’s Room. Activity 2 takes place in Program Room (1,000 square feet).
Sq. Ft./Activity / % Library Occupied. / Annual Allocation / Cost per Week / Cost for 6 Week ProgramAct. 1: 950 / 6% / $3,307 / $64 / $381
Act. 2: 1,000 / 7% / $3,859 / $74 / $444
Administrative Overhead Allocation: Total Library Salaries: $327,988*
Total Library Benefits: $ 87,121*
Ratio Benefits/Salary 26%
Front Office Salaries $73,954*
Plus 26% Benefits $93,182 Admin. Overhead
The Children’s Department would be allocated 43% of this administrative overhead.
Children’s Dept. Staff / Total Library Staff / Ratio / Annual Allocation / Summer Program (25% children’s staff for 6 wks)6 / 14 / 43% / $40,068 / $1,158
The summer program requires the Children’s Librarian and an 18-hour Library Assistant (1/2 position). At l-1/2 positions, it would be 25% of the Children’s Staff. Annual allocation would be $10,017 or $193/week and $1,158 for the 6 week Summer Program.
This is allocated to Activity 1 which involves promotion and the most librarian time.
Cost Summary – Summer Reading Program
Registration Programming Total
Labor $ 1,212.14 $ 919.44 $ 2,131.58
Materials $ 288.96 25.00 $ 313.96
Depreciation $ 19.25 $ 19.25
Other Direct $ 720.00 $ 720.00
Total Direct $ 1,501.10 $ 1,683.69 $ 3,184.79
Physical Plant $ 381.00 $ 444.00 $ 825.00
Administrative $ 1,158.00 $ 1,158.00
Total Indirect $ 1,539.00 $ 444.00 $ 1,983.00
TOTAL COST $ 3,040.10 $ 2,127.69 $ 5,167.79
TOTAL COST / REGISTERED PARTICIPANTS (495) = $ 10.44 COST PER UNIT.
Sources Consulted
· Salary information and physical plant expenditure from: “Comparable Statistics of Rhode Island Public Libraries, 2005.” Office of Library and Information Services, Providence, RI. Available at: http://www.lori.ri.gov/reports/compstats/csonefile.pdf
· Rosenberg, Philip. “Cost Finding for Public Libraries: A Manager’s Handbook.” Chicago: American Library Association, 1985.