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Session: Public Session

Subject: Financial Update – Financial Statements to August 31, 2013

Prepared By: Barbara Jessop, Susanna Hubbard Krimmer

Presented By: Barbara Jessop

Purpose of Report: For Receipt and Information Only

RECOMMENDATION: It is recommended that the Library Board receive this report. ISSUE/OPPORTUNITY The purpose of this report is to provide the London Public Library Financial Statements for the period ending August 31, 2013, along with explanatory notes identifying any significant variances from budget. REVIEW There are no significant concerns related to the variances; nevertheless, the following explanations are provided for clarification: Expenditures Human Resources Services:

Registration and Conferences: while over spent to date, it consists of attendance at the Ontario Library Association conference, which was the major conference expense for 2013, and staff attendance at events with speakers and/or subject matter relevant to the LPL strategic planning process.

. Purchased Services:

Legal and consulting: includes the fees for the consulting firm engaged to support the strategic plan process.

Marketing and communications: although underspent to date, planned expenditures, including costs associated with the strategic planning process, will mean that this line will be spent out by the end of the year.

Memberships: most memberships have been purchased for the year. We are starting to see an increase in cost for professional library association fees/memberships such as FOPL (Federation of Ontario Public Libraries).

Stationery and supplies: expenditure to date includes a four to six month supply of adhesive thermal paper which is used in the holds process.

Facilities Services:

Building Repairs and Maintenance: over budget due, in part, to snow removal expenditures. Even though it was a mild winter, there were periods of significant snowfall resulting in an increased number of trips for sanding, clearing, deicing and snowplowing.

Vehicle Expense: over budget due to a greater amount of vehicle repairs involving body and mechanical work.

Rents: slightly under budget due to the charitable rebate for 2013 realty taxes and adjustments to common area charges.

Collections:

Although currently underspent, this line will be expended by the end of the year.

Furniture and Equipment:

Expenditures are currently being planned. Revenues With some minor variances overall, the revenues are on target. Library Programs/Exam Proctoring:

While revenues are over budget, the corresponding expenditures are also over

budget (see Program Services). The 2013 fines budget was decreased slightly, based on 2012 experience. However, LPL is continuing to see a decline in fines revenue. Influencing factors include: service enhancements to patrons including email notification of upcoming fines; the convenience of being able to pay fines online, as well as by debit machine; the circulation of e-books and e-videos which have no fines; and a slight decline in circulation. The loss of the Employment Resource Centre funding in 2012 has meant a decrease in meeting room rental revenues. Subject to Board approval, implementation of the PwC revenue audit recommendations will give LPL an opportunity to increase revenues both short term and long term. The Wolf Performance Hall has experienced a decline in revenue in 2013. A consultant has completed a comprehensive review of the business model for the Wolf Hall.