1. Greater Western Library Alliance 2006 Spring Membership Meeting Arizona State University, Tempe AZ February 27, 2006 Brinley Franklin Vice Provost, University of Connecticut Libraries and Principal, Library Management Consulting Optimizing the Recovery of Sponsored Research-related Library Costs

2. Why Perform a Library Cost Analysis Study? A library cost analysis will probably increase your university’s indirect cost recovery by at least $1 million/year Higher education’s revenue sources are limited: tuition; sponsored grants and contracts; gifts; overhead cost recovery; public support; auxiliary income The United States government allows educational institutions to seek reimbursement for library expenses related to funded research via the university’s indirect cost rate using OMB Circular A-21

3. The Library is Often Overlooked as an Overhead Rate Component An F&A Proposal might look like: Administration26% Operations and Maintenance10 Building Depreciation 4 Equipment Depreciation 4 Interest 3 Library 2 49%

4. OMB Circular A-21 Allows Two Methods For Assigning Library Expenses to Sponsored Research Standard (Full-time Equivalent) Method (Section F-6) Library Cost Analysis Study - Section E2(d)

6. Library expenses are assigned to cost centers Cost centers assigned to sponsored research, instruction, and other activities based on user surveys In-house and web-based user surveys are based on the random moments sampling technique and are conducted over a 12 month period Cost allocations are based on actual (not remembered or projected) use Remote library users are also surveyed using a web- based survey Key Components of the Library Cost Analysis Study

7. Has been used with minor modifications since 1982 Has been conducted 50 times in 160 libraries at 35 institutions using a consistent approach with data from more than 150,000 respondents 35 institutions include 23 public colleges, 12 private universities and 30 of the 100 largest recipients of science and engineering research The academic libraries surveyed are geographically diverse The DHHS/KPMG Agreed Upon Library User Study Methodology

8. Overview of the Library Cost Analysis Study COST ANALYSISLIBRARY USER SURVEYS COMPILE DIRECT LIBRARY EXPENSES BY OBJECT CODE FROM UNIVERSITY FINANCIAL ADMINISTRATOR’S YEAR-END FINANCIAL REPORTS. CONDUCT YEAR-ROUND LIBRARY USER SURVEYS TO MEASURE: PATRON CLASSIFICATION PATRON UNIQUE IDENTIFICATION PATRON AFFILIATION SURROGATE USAGE NUMBER OF MATERIALS AND SERVICES USED BY TYPE OF MATERIAL OR SERVICE PURPOSE OF USE FOR EACH MATERIAL AND SERVICE USED NON-RESPONDENTS’ PATRON CLASSIFICATION GROUP LIBRARY EXPENSES INTO DIRECT COST CATEGORIES SUCH AS PERSONNEL, BOOKS, JOURNALS, ELECTRONIC SERVICES, AND OTHER EXPENSES. ASSIGN DIRECT COST CATEGORIES TO SPECIFIC LIBRARIES AND LIBRARY COST CENTERS SUCH AS REFERENCE SERVICES, RARE BOOKS AND MANUSCRIPTS, CIRCULATION, ELECTRONIC SERVICES, AND OTHER EXPENSES. COMPILE INDIRECT LIBRARY EXPENSES AND ASSIGN THEM ON THE BASIS OF SQUARE FEET (SPACE-RELATED INDIRECT EXPENSES) AND MODIFIED TOTAL DIRECT COST (ADMINISTRATION-RELATED INDIRECT EXPENSES) TO SPECIFIC LIBRARIES AND LIBRARY COST CENTERS. COMBINE DIRECT AND INDIRECT LIBRARY EXPENSES FOR EACH COST CENTER AND ASSIGN APPLICABLE CREDITS (I.E., COPY CENTER AND PRINTING REVENUES). CALCULATE USAGE OF SPECIFIC LIBRARY MATERIALS AND SERVICES BY PATRON CLASSIFICATION AND BY PURPOSE OF USE. APPLY NON-RESPONSE FACTORS BY LIBRARY BY CLASSIFICATION (E.G., UNDERGRADUATE NON-RESPONDENTS). CALCULATE TOTAL USE OF SPECIFIC MATERIALS AND SERVICES FOR BOTH RESPONDENTS AND NON-RESPONDENTS TO DETERMINE THE ALLOCATION BASES FOR SPECIFIC COST CENTERS. ASSIGN LIBRARY EXPENSES FOR ALL LIBRARIES AND LIBRARY COST CENTERS BY PURPOSE OF USE (E.G., ORGANIZED RESEARCH, INSTRUCTION, PATIENT CARE, AND OTHER INSTITUTIONAL ACTIVITIES) BASED ON USE OF SPECIFIC MATERIALS AND SERVICES AT SPECIFIC LIBRARIES BY PRIMARY CATAGORIES OF USERS (I.E., FACULTY/STAFF; UNDERGRADUATE STUDENTS, GRADUATE STUDENTS, AND ALL OTHER USERS. DETERMINE TOTAL LIBRARY EXPENSES BY PURPOSE OF USE BY COMBINING RESULTS FROM ALL LIBRARIES INCLUDED IN THE STUDY.

13. LIBRARY USER SURVEY (continued)

14. Sponsored research use varies considerably by type of library There is considerable variation in sponsored research use at even the same type of library Interlibrary loan use and journal use are the two most heavily used traditional library services proportionally by sponsored researchers Sponsored research use of electronic services in the current environment is generally at the same level as print journal use in the print environment was Major Findings

15. Sponsored Research Usage by Type of Library

16. Demonstrating the Validity of the Study Via Longitudinal Research Use at One Main Academic Library

17. ClientFTE Allocation (points before study) Library Study Allocation (points after study) University of Utah (FY 2005)1.52.8 University of Colorado (FY 2005)0.92.4 Oregon State University (FY 2005)1.42.7 University of Connecticut (FY 2005)2.03.8 Washington University (FY 2004)1.31.6 UConn Health Center (FY 2003)1.32.5 University of Arizona (FY 2001)1.12.2 Average (n=7)1.42.6 1.2 points potentially equals a $1.2 million/yr recovery gain on a $100 million base Impact of Recent Library Studies

18. Questions/Comments? Brinley.Franklin@UConn.edu This presentation is available at: www.lib.uconn.edu~bfranklin