Accounting for Libraries and Other Not‐for‐Profit Organizations. 2nd ed.

Citation

Roberts, S.A. (2000), "Accounting for Libraries and Other Not‐for‐Profit Organizations. 2nd ed.", Library Management, Vol. 21 No. 8, pp. 443-447. https://doi.org/10.1108/lm.2000.21.8.443.4

Stevenson Smith is the standard North American work on financial accounting for the library and information sector. The first edition was published in 1983. The author’s introduction provides the reason for a new edition. Since 1983 numerous accounting changes have occurred in NFOs (not‐for‐profit‐organizations) financial reporting and the author has taken the opportunity to revise the text in accordance with these.

Although published by the American Library Association any other NFO professional body could have undertaken the task and substituted examples appropriately. On page 6 a generic list of NFOs is given: libraries, museums and galleries are key groups, but others as diverse as political action committees, cemetery organisations and social and country clubs are also included. This affirms the undisguised point that this is a manual on fund accounting written by a professor of accounting, which has been given the library treatment and library examples because of its sponsor and therefore its target audience. As long ago as 1943 the ALA published Edward A. Wight’s Public Library Finance and Accounting so in a sense some specific intellectual property is being well maintained with the appearance of this edition.

There is no doubt in the reviewer’s mind that some diligent study of this book would considerably improve proficiency in accounting applied to libraries. It is thorough, logical and detailed. Part 1 (about 40 percent) of the text, if studied would provide an excellent foundation and a basis for considerable competence. If this was grasped, the more detailed labour of studying part 2 (“Accounting for the major fund groups”) would be understood and probably seen as less daunting than appears at first sight. An accounting text is rarely an easy read, but this work has the merit of being clearly written. Accounting terminology can hardly be avoided, but key concepts are explained when introduced and there is a helpful glossary appended.

The book is rich in exemplary matter to illustrate principles in the form of graphical tables and listings, as well as with worked examples of accounting in practice. With these tools the text could be used for self‐study and suitably paced the motivated learner could achieve good results useful to practice. Highlighted exercises are given in each chapter which can be checked using the answers and worked examples/explanations at the end of the book. Inevitably, self‐study would require much to‐ing and fro‐ing. The author has not developed the work as a fully didactic independent study text and thus the package is still recognisably a hardback textbook (rather than a programmatic work with student workbook and tutor’s version; a model commonly used in accounting education). Retaining the traditional format perhaps gives the book a wider potential appeal, although losing the student market which may prefer a workbook format. This seems sensible and realistic. Library and information management students are very unlikely to have time or opportunity on their courses to work in this area in the way that accounting students are accustomed and have to do.

With such strategies and compromises understood, the target audience for this book is primarily library and information centre middle management and above. This group will have the need to familiarise with its content and the motivation to use it resourcefully. A knowledge of principles can be assimilated or refreshed, and an ongoing system improved through better understanding of technique or by the benefit of offering a critique. Although many information centres have to go along with host institution practice fund accounting and budgeting, a free standing start up organisation could use the material here to get a fund accounting system together. If it was an NFO this corpus of material provides an off‐the‐peg solution.

Stevenson Smith has built his work around an appropriately defined agenda the needs of the NFO – but there is some scope for development of the theme. Yet if we consider “library” as having a contemporary generic meaning incorporating many diverse forms of information provision and service with applications in the private‐for‐profit sector as well, the practitioner will need similar quality guidance in accounting and financial management in this broader commercial environment. To some extent the concluding chapter 10 (“Combined financial statements and analysis of the results of performance”) pushes the treatment out towards the complex total financial environment of financing, budgetary planning and budgeting, costing, accounting and managerial and financial decision making. The examples in this chapter illustrate the combined weight of these issues. However, they do not provide an off‐the‐peg solution.

But in many ways Stevenson Smith has to finish his work where many practising managers feel they would like to begin. Professional life requires them to address the macro aspects (general financial management) as well as the micro aspects (of fund accounting principles and practice). This may be the perceived desire and there is good potential for competent authors to offer texts dealing with the macro‐environment. But, practitioners cannot evade the detail of which Stevenson Smith attempts with some success to increase our familiarity. The reviewer’s own attempts to deal with the macro aspects in Financial and Cost Management for Libraries and Information Services (Bowker Saur, 1998) did not encompass the detail of fund accounting; instead choosing to focus on cost and costing as the starting point for financial management competence. Equally, Snyder and Davenport’s Costing and Pricing in the Digital Age (Library Association, 1997) had to make its choices to address its readership. In conclusion and with much respect for Stevenson Smith’s work, I would say the community still awaits the “dreamwork” of fusion which can address all the significant elements with high competence; this is the challenge for future authors!