1. CAUL Meeting, Cairns, September, 20031 Library Valuations Janine Schmidt University Librarian University of Queensland

2. CAUL Meeting, Cairns, September, 20032

3. 3 Valuations Collections Total/sum of the parts Access vs ownership Replace? Repair? Expense or capitalise? Depreciate? Appreciate? Period of time – straight line, diminishing balance Inexhaustible resource

4. CAUL Meeting, Cairns, September, 20034 What is everyone doing? Something different… Rare or special collections only Write off after 5, 10 or 15 years Historical costs, depreciate over 20 years (books), 50 years (journals), not at all (rare books) Depreciation rates vary from 2% to 20% to 100% after 4 years Insurance value – replacement cost based on average cost per volume of serials and monographs purchased in most recent year x inventory

5. CAUL Meeting, Cairns, September, 20035 Value Market/resale value/use Purchase price – wear and tear, obsolescence Replacement cost Processing costs – cataloguing, binding Based on accurate inventory Individual item values External Internal Estimate based on average Research collection vs teaching and learning

6. CAUL Meeting, Cairns, September, 20036

7. 7 What is UQ doing? Number of monographs x average price ($104) + processing costs ($13) for insurance Number of journal volumes x average price for last 10 years (replacement photocopies for earlier) ($924) + processing costs ($22)for insurance Special Collections valued separately by independent valuer

8. CAUL Meeting, Cairns, September, 20038 What is UQ doing? Number of microforms x average cost ($45) Number of sound recordings x average cost ( $50) Number of videos x average cost ($147) Number of maps x average cost ($15)

9. CAUL Meeting, Cairns, September, 20039 Changes proposed by QAO New policy – Non-Current Asset Accounting Guidelines for the Qld Public Sector Collection to be valued at historic cost Future purchases to be expensed (if below the nominated asset value for the collection) or depreciated (if above the asset threshold value)

10. CAUL Meeting, Cairns, September, 200310 Changes proposed by QAO Heritage or unique collections will be valued on a “fair value” basis QAO believes this would apply to very small part of UQ collection Common use material with limited useful lives is measured at historic cost annually and depreciated (14.25% suggested) over the expected useful life of the item QAO believes this would be major part of UQ collection

11. CAUL Meeting, Cairns, September, 200311 Changes proposed by QAO An appropriate asset recognition threshold to be established taking into account the need to recognise as assets only the more valuable items (Section 45, FMS 1997) Material purchased with a cost below the asset threshold will be expensed each year and the cost written off – this would mean majority of purchases would be written off each year! Assets valued at historical cost should never be revalued upwards (Section 4.3, NCAA Guidelines)

12. CAUL Meeting, Cairns, September, 200312 Another issue – asset management practices Licensed access not ownership Authorized users Employees, faculty, students Walk-in users – physically present Authenticated access IP address, password No archival rights Limitations Campus Document delivery

13. CAUL Meeting, Cairns, September, 200313

14. CAUL Meeting, Cairns, September, 200314

15. CAUL Meeting, Cairns, September, 200315 The Future UQ will continue to persuade the QAO that as a research intensive library the collection is maintained permanently its value does not diminish over time large amounts of material at UQ actually increase in value over time the collection is in fact a “cultural asset” Therefore should be valued on fair value principles