OHIONET ANNUAL REPORT - 1
Contents
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5
6
7
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10
12
22
Board of Trustees
OHIONET Advisory Councils
OCLC Services Department
Consortium and Technology Services
Library and Member Services
Accounting and Business Services
OHIONET Financial Statements
OHIONET Members
OHIONET is a membershipdriven organization that
provides cost-effective
information sharing with
integrity, innovation, and
responsive customer service.
OHIONET also promotes
cooperative partnerships
within the library and
information community.
OHIONET ANNUAL REPORT - 3
Board of Trustees
Chair: Ms. Constance Britton (2004)
Librarian
Ohio Agricultural Research &
Development Center
The Ohio State University
1680 Madison Ave.
Wooster, OH 44691
(330) 263-3773
Fax: (330) 263-3689
britton.4@osu.edu
Chair Elect: Ms. Theresa Byrd (2003)
Director of Libraries
Beeghly Library
Ohio Wesleyan University
43 Rowland Ave
Delaware, OH 43015
(740) 368-3246
Fax: (740) 368-3222
tsbyrd@cc.owu.edu
Treasurer: Ms. Virginia G. Saha (2004)
Director
Cleveland Health Sciences Library
Case Western Reserve University
2119 Abington Road
Cleveland, OH 44106-4914
(216) 368-3436
Fax: (216) 368-3008
vmg2@po.cwru.edu
Secretary: Ms. Gretchen A. Hallerberg
(2003)
Manager, Library Services Department
Cleveland Clinic Alumni Library
9500 Euclid Avenue NA30
Cleveland, OH 44195
(216) 445-7333
Fax: (216) 444-0271
hallerg@ccf.org
4 - OHIONET ANNUAL REPORT
Mr. Robert Briell (2004)
Director
Warren-Trumbull Cty Public Library
444 Mahoning Ave NW
Warren, OH 44483-4692
(330) 399-8807
Fax: (330) 395-3988
briellro@oplin.lib.oh.us
Ms. Jean Mulhern (2005)
Library Director
Stokes Library, Wilberforce University
PO Box 1003
Wilberforce, OH 45384-1003
(937) 708-5629
Fax: (937) 376-5787
jmulhern@wilberforce.edu
Ms. Martha Gardin (2003)
Director
Greene County Public Library
76 East Market St.
Xenia, OH 45385
(937) 376-2996 x201
Fax: (937) 372-4673
mgardin@mailserv.gcpl.lib.oh.us
Ms. Lisa Plymale (2005)
Head, Technical Services
NEOUCOM
4209 State Rt. 44
Rootstown, OH 44272
(330) 325-6621
Fax: (330) 325-0522
lma@riker.neoucom.edu
Ms. Susan Hagloch (2003)
Library Director
Tuscarawas County Public Library
121 Fair Avenue NW
New Philadelphia, OH 44663-2600
(330) 364-4474
Fax: (330) 364-8217
haglocsu@oplin.lib.oh.us
Ms. Susan Schaefgen (2004)
Library Manager
Porter, Wright, Morris & Arthur,
Attorneys at Law
41 S. High Street
Columbus, OH 43215
(614) 227-2090
Fax: (614) 227-2100
sschaefgen@porterwright.com
Ms. Kemberly A. Lang (2004)
Battelle Technical Information Center
Resigned Spring, 2003
Ms. Ann Moore (2005)
Director
Upper Arlington Public Library
2800 Tremont Road
Columbus, OH 43221
(614) 486-0900
Fax: (614) 486-4530
moorea@oplin.lib.oh.us
Ms. Julia Zimmerman (2005)
Dean, University Libraries
Ohio University
Alden Library
Athens, Ohio 45701-2971
(740) 593-2705
Fax: (740) 593-270
8zimmerj1@ohio.edu
OHIONET Advisory Councils
2002/2003
Advisory Councils
OHIONET’s Advisory Councils exist to provide member
involvement by creating awareness of library issues
and trends, providing a forum for product and training
review, and establishing networking opportunities
between member institutions.
Library Technologies & Telecommunications
Council
• Michael Boock, Cleveland State University
• Sharon Bressert, University of Cincinnati
• Magda El-Sherbini, CHAIR, The Ohio State University
Libraries
• Keith Washburn, Lorain County Community College
• Lynda Hartel, Prior Health Sciences Library, The Ohio
State University
• Corey Seeman, University of Toledo
The Library Technologies & Telecommunications
Council organized a successful workshop entitled
“Accessible Libraries: Strategies That Address ADA
Concerns” in May. The program was well attended and
received very positive evaluations. Carol Ritzenthaler
is the OHIONET liaison to this Council.
Reference and Resource Sharing Council
• Abbie Basile, Chair until March, 2003, Ohio Dominican
University
• Paul Burnam, Ohio Wesleyan University
• Kellie Clarke, Chair after March, 2003, Otterbein
College
• Julie Flanders, College of Mount St. Joseph
• Susan E. Hill, Cleveland Health Sciences Library, Case
Western Reserve University
Mary Conroy, Library & Member Services Department,
and Gene Gummo, OCLC Services Department, are the
staff liaisons to this Council.
The focus of the FY 2002/2003 Reference and Resource
Sharing Council was to develop a workshop that
would address challenges to patron confidentiality
as a result of the Patriot Act and information policy
issues facing all libraries today. “Threats, Liberties
and Information: Libraries Coping with Government
Change” was held June 4, 2003, at Ohio Wesleyan
University and attracted more than 70 people.
OCLC Members Council
The OHIONET delegates to the 2002/2003 OCLC
Members Council and the dates their terms expire are
as follows:
• Cliff Glaviano, Bowling Green State University
June 2005
• Judith Sessions, Miami University
June 2005
• Carol Diedrichs, The Ohio State University
June 2004
The alternate delegates were:
• Magda El-Sherbini, The Ohio State University Libraries
June 2004
• Timothy G. Kambitsch, Dayton & Montgomery County
Public Library
June 2005
• Edward Krakora, Heidelberg College
June 2005
OHIONET delegates to the OCLC Members Council
represent our OCLC member libraries at OCLC
Members Council meetings. It is through the Members
Council that members’ needs are voiced to influence
OCLC policy and planning.
The actual number of delegates allotted to each OCLC
network is based on a formula that recognizes both
the number of participating member libraries and
the total financial contribution to OCLC. OHIONET
continued to have three delegate and three alternate
positions this year. As delegate and alternate terms of
service expire, new delegates are elected by OHIONET
members each year in April.
OCLC Product Advisory
Committees
Staff from OHIONET member libraries represented
the network on OCLC Product Advisory Committees
during 2002/2003. Advisory committee members are
called upon by OCLC to provide insight into existing
and prospective products and services based on
their areas of experience and expertise. Committee
members from OHIONET in 2002/2003 were:
OCLC Reference Services Advisory Committee
Martin Jenkins, Wright State University Libraries
OHIONET ANNUAL REPORT - 5
OCLC Services Department
A. OCLC product-related courses included the following:
The OCLC Services Department is responsible for
marketing, sales, training, and support of all OCLC
products and services in the OHIONET territory, which
includes the state of Ohio and portions of Pennsylvania
and West Virginia.
In addition, the Department published the
OHIONETWORK newsletter and the OHIONET Training
Calendar through the first half of the fiscal year.
Responsibility for this activity no longer resides in the
Department.
Members of the Department assist in coordinating
activities of the OHIONET Advisory Councils and provide
liaison to the OCLC Members Councils and Product
Advisory Committees. Additional responsibilities of the
department include conference coordination, customer
database maintenance, digitizing projects, developing
OCLC–related training programs, and facilities, vehicle
and equipment maintenance.
Staffing
There were no changes in the staffing of the OCLC
Services Department at OHIONET this year. George Klim
continued in his position as department head. Carol
Ritzenthaler continued her activities in the areas of
cataloging and interlibrary loan. Gene Gummo continued
in her position of the OCLC Services Representative.
Larry Wilson remained in his support position. Donna
Schroeder’s temporary appointment to the position of
cataloging support was extended.
All staff of the OCLC Services Department have shifting
responsibilities as OCLC products and services continue
to evolve.
Training
During FY 2002/2003 OHIONET staff and guest trainers
presented over 50 sessions on topics related to OCLC
products and general library services. Several new
workshops were introduced during the course of the year.
6 - OHIONET ANNUAL REPORT
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
OCLC Searching
OCLC Searching - Advanced Techniques
Cataloging with OCLC Connexion
Introduction to WebDewey
More on Dewey and Dot
OCLC Authority file
OCLC CatME
OCLC Pathfinders
ILL Basics
Introduction to OCLC ILL
First Search: What I Need to Know
B. Workshops on general library and technical services
topics included:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Library of Congress Subject Headings
Assigning LC Class Numbers
Cataloging Fundamentals
Online Electronic Resources
Introduction to Copy Cataloging
Introduction to MARC
Advanced MARC
Advanced Copy Cataloging
Electronic Resource Cataloging
Internet Resources for Catalogers
Basic Serials Cataloging
Video Cataloging
Sound Recording Cataloging
How do I catalog the squirrelly things?
Cataloging Originals
Cataloging Integrating Resources
C. On-site training was offered at the following libraries:
1. Toledo Lucas County Public Library–Cataloging
with OCLC Connexion
2. John Carroll University–Cataloging with OCLC
Connexion
3. Lane Public Library–Cataloging with OCLC
Connexion
4. Stark County District Library–Cataloging with
OCLC Connexion
5. NORWELD–First Search
A total of 353 students attended the training sessions
that were offered or sponsored by the OCLC Services
Department.
The Information Network for Ohio Schools (INFOhio) is a statewide initiative
that provides services to school libraries through the Ohio Educational
Computer Network (OECN) and 24 Data Acquisition Sites (DASites). INFOhio
is a group member of OHIONET and uses many of the OHIONET services,
most notably the OCLC CatExpress copy cataloging service and OHIONET training services. Following the successful
completion of the pilot test of OCLC web-based cataloging that began in 1998 and involved twelve INFOhio schools
and several DASites, INFOhio schools continued to sign up for CatExpress cataloging for FY 2002-2003.
Consortium and Technology Services
The Consortium and Technology Services department, created in 2003, is responsible for overseeing all aspects
of OHIONET’s technological infrastructure. The department provides internal service to OHIONET and its staff by
supporting and maintaining the organization’s internal network, workstations and servers.
The department is also responsible for the administration of the shared integrated library system for OPAL (Ohio
Private Academic Libraries), a consortium of 20 academic libraries. In that capacity, the department provides end user
support and training to OPAL library staff.
Staffing
The Consortium and Technology Services department is comprised of four individuals: the Director of Consortium and
Technology Services, Senior Library Technology Consultant, Library Technology Consultant and System Technician.
OHIONET ANNUAL REPORT - 7
Library and Member Services Department
The Library & Member Services Department
is responsible for all non-OCLC products and
member services. The Department publishes
the OHIONETWORK newsletter, the OHIONET
Training Calendar, Annual Report and OHIONET
marketing and promotional brochures. Members
of the department share responsibility with the
OCLC Services Department for the activities of
the OHIONET Advisory Councils. Additional
responsibilities include developing training
programs on library topics, working with
outside trainers to present workshops, design
and support of the OHIONET website, and
coordination of member activities. With the reorganization of the Library & Member Services
Department in the fall of 2002, OHIONET
reaffirmed its commitment to providing quality
services to its members. Departmental priorities
include identifying member needs and services,
developing an appropriate response to those
needs, creating a consistent message and image,
and ensuring that all membership activities
are aligned with the strategic direction of the
organization.
8 - OHIONET ANNUAL REPORT
Staffing
The Library and Member Services Department
has a staff of five. Carol Verny joined OHIONET in
December, 2002, as Director of Library & Member
Services. As Library Services Coordinator, Mary
Conroy facilitates cooperative purchasing
discounts and consortium deals for OHIONET’s
electronic resources. Jill Boggs is Sales Support
Representative for OHIONET equipment
and supplies and has assumed editorial
responsibilities for OHIONETWORK. Scott Debney
serves as Graphic/Web Designer, and Larry Fischer
is OHIONET’s Systems Analyst/Web Developer.
Both Scott and Larry share responsibility for the
web design services OHIONET offers to members
and non-members.
Training
During the first half of FY 2002/2003, OHIONET
partnered with New Horizons Computer
Learning Center to offer specialized technology
training. New Horizons staff taught the following
workshops:
Library and Member Services Department
•
•
•
DreamWeaver MX – Level 1
DreamWeaver MX – Level 4
Flash MX – Level 1
Topics of current interest and library
trends continue to be a focus of workshop
development. General interest workshops
presented at OHIONET included:
•
•
•
•
•
•
•
Hands-On Book Repair
Government Resources on the Internet
Disaster Prevention and Emergency
Planning
Promoting Reading in the Library
Ohio Bicentennial Resources for Young
Adults and Children
Your Building, Its Hazards and the ADA
Using the Internet at the Reference Desk
Greene County Public Library in FY 2002/2003.
Current design clients include Clermont County
Public Library and the corporate library of the AK
Steel Company.
Product Discounts
OHIONET visits to member libraries were
instrumental in the increase in sales of
computers, equipment and supplies. The
Department negotiated a contract with Staples
to offer office supplies to member libraries
at significant discounts through the Staples
Business Advantage Program. Other product
discounts include:
•
•
•
•
•
•
•
3M library supplies, circulation and
security systems
Bar Code Discount Warehouse
Computype
Avery Labels
Optelec magnifiers and other visual aids
Library supplies and equipment through
Brodart, Demco, Gaylord, Highsmith, and
the Library Store
Discount programs for online reference
products
Reference Databases
Internet and Web Services
The Library and Member Services Department
continued to support libraries by providing web
hosting, development, and design services to
members and non-members. In addition to
hosting external websites for Ohio libraries and
library organizations, OHIONET also provides
discussion list and email services. OHIONET has
seen growing interest in its web development
services. The Department completed significant
design projects for the Ohio Library Council and
OHIONET continues to work with OhioLINK
to offer elective database products to the
academic, public, school and special library
communities. The reference database service
has been a source of substantial growth in
revenue this year as publishers introduce new
reference products and approach OHIONET
with consortia deals. Among the significant
new products added in FY 2002/2003 were
products from these publishers of electronic
media: EBSCO, HW Wilson, Greenwood and
Morningstar. OHIONET successfully negotiated
pricing with the publisher to ensure that McGraw
Hill’s AccessScience would be included in the
collection of electronic resources made available
statewide by Libraries Connect Ohio (LCO).
OHIONET ANNUAL REPORT - 9
Accounting and Business Services
What an exciting year it has been. OHIONET
has completed its second year on the TRAVERSE
Accounting Software and now has two years
of history as reference to meet the needs
and answer the questions of our members.
Accounting staff continue to find the software
easy to use and are able to give our internal and
external customers timely information and detail.
Taking Traverse to the next level, the OHIONET
Board of Trustees approved moving forward with
the eBusiness Customer Inquiry Solution. In the
September-October timeframe, Accounting staff
began working with Alternative Business Systems,
the local vendor in Columbus, and Open Systems,
the software vendor in Minnesota, regarding
OHIONET’s accounting for customer accounts.
With requirements in hand, Open Systems began
programming for OHIONET. As programming
progressed, OHIONET accounting staff were given
access to view work-in-progress and to test the
data produced. Customer accounts were viewed,
tested and the results relayed to Open Systems
and Alternative Business Systems. Adjustments
were made and finally, in March, we asked the
Board of Trustees to do beta testing of the system.
In April, OHIONET opened the new program to
all members to permit them to view their billing
history and accounting information. With the
success of this new program, OHIONET members
can go to MyAccount, via the Internet, print an
invoice, or statement, research products and
services purchased for a defined time period, or
10 - OHIONET ANNUAL REPORT
verify that OHIONET received a payment. All the
information available to the members is up to the
minute, real time.
What began as a successful program last year
continues to exceed OHIONETs expectations.
Members have found the credit card a convenient
way to do business and pay for services. Credit
cards, along with ACH deposits, simplify the billpaying process.
The Accounting and Business Services
Department is staffed by five. Pamela Rossman
handles the OHIONET mail and receptionist
duties. The purchase orders, workshop
registrations and questions are the priority of
Latasha Marshall . Cash receipts, workshop, and
Dialog billing reside in the capable hands of Rita
Bennett. Deborah Ross has the responsibility
for the database billing, membership, support,
and British Library billing along with OHIONET’s
accounts payable, fixed assets and inventory.
As we continue to cross train staff, Rita is billing
OCLC services and Latasha is assisting with
inputting cash receipts. Shirley Davenport is
responsible for the overall management of the
department along with reconciling the general
ledger and producing financial statements.
OHIONET’s gross revenue increased 7% over the
prior year. Much of this was due to the increase
in sales of 3rd party databases, Web development,
and OPAL service.
Accounting and Business Services
OCLC
49%
OHIONET Net Revenue
Membership
17%
Misc. 1%
Workshops
2%
Equipment/Supplies
2%
OPAL
13%
Other
4%
Reference
Databases
& Services
9%
Web Design
3%
Operating Expense increased just 10.5% over the prior year. OHIONET has added a Director of Library
and Member Services while increasing visits to member libraries. Additional expense was incurred to
facilitate the eBusiness program A final but important expense was the OHIONET 25th Anniversary
Celebration and dinner hosted by OHIONET at the OLC Diversity Conference in September 2002.
OHIONET Operating Expense
Wage/Benefit
70%
Eq/Dep/Mnt/Ren
8%
Misc
3%
Prof Serv
3%
Travel
4%
Office Exp
6%
Building
6%
As always, OHIONET’s goal is to continue to provide our members with quality programs, services,
benefits, and information while controlling the expense of doing business.
OHIONET ANNUAL REPORT - 11
OHIONET
Financial Statements
June 30, 2003 and 2002
12 - OHIONET ANNUAL REPORT
BENEVIAT & TORTORA
CERTIFIED PUBLIC ACCOUNTANTS
AND
BUSINESS ADVISORS
5900 ROCHE DRIVE
SUITE 200
COLUMBUS, OHIO 43229
M E M B E R S OF :
A MERICAN IN S T I T U T E OF
CERTIFIED PUBLIC ACCOUNTANTS
OHIO SOCIETY OF
CERTIFIED PUBLIC ACCOUNTANTS
614.888-2122
614.888-2185 (fax)
mbeneviat@copper.net
To the Board of Trustees and Members of
OHIONET
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying Statements of Financial Position of OHIONET (a
nonprofit corporation) as of June 30, 2003 and 2002, and the related Statements of
Activities and Cash Flows for the years then ended. These financial statements are the
responsibility of the companyÕ
s management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of OHIONET as of June 30, 2003 and 2002, and the
results of its operations and the changes in its cash flows for the years then ended in
conformity with accounting principles generally accepted in the United States of
America.
September 23, 2003
OHIONET ANNUAL REPORT - 13
OHIONET
STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2003 AND 2002
ASSETS
2003
CURRENT ASSETS
Cash and Cash Equivalents (Note 1)
Cash and Cash Equivalents - OPAL (Note 3)
Total Cash and Cash Equivalents
$
902,035.29
772,645.36
1,674,680.65
2002
$
1,388,512.31
646,059.88
2,034,572.19
Short-Term Investments (Note1)
2,181,275.83
1,677,454.93
Accounts Receivable (Note 1)
Accounts Receivable - OPAL (Note 3)
Total Accounts Receivable
1,101,874.20
479,173.46
1,581,047.66
1,304,396.85
466,995.59
1,771,392.44
Inventories (Note 1)
Prepaid Expenses and Deposits
Prepaid Expenses - OPAL (Note 3)
Total Current Assets
30,736.62
584,285.28
522.95
6,052,548.99
30,763.40
678,718.55
0.00
6,192,901.51
PROPERTY (Note 1)
Land and Building
Office Furniture and Equipment
Total Property
Less: Accumulated Depreciation
Net Property
930,731.99
639,730.44
1,570,462.43
(690,326.81)
880,135.62
928,335.78
586,119.59
1,514,455.37
(631,726.16)
882,729.21
OTHER ASSETS
Equipment and Software
Licenses - OPAL (Note 1 and 3)
1,404,721.50
1,423,225.18
Total Assets
$
8,337,406.11
$
The accompanying notes are an integral part of these financial statements.
14 - OHIONET ANNUAL REPORT
8,498,855.90
OHIONET
STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2003 AND 2002
LIABILITIES & CORPORATE EQUITY
2003
CURRENT LIABILITIES
Accounts Payable and
Accrued Expenses (Note 1)
Accounts Payable and
Accrued Expenses - OPAL (Note 3)
Total Accounts Payable and Accrued Expenses
$
Unearned Revenues and
Other Obligations - (Note 1)
Unearned Revenues and
Other Obligations - OPAL (Note 3)
Total Current Liabilities
Total Liabilities
UNRESTRICTED CORPORATE EQUITY (Note 1)
Undesignated
Undesignated - OPAL (Note 3)
Board Designated (Note 2)
Reserve Fund (R&D)
Total Corporate Equity
Total Liabilities and Corporate Equity
$
2002
663,137.18
$
821,129.34
34,786.36
697,923.54
78,994.49
900,123.83
1,667,336.46
1,815,384.85
2,515,773.43
4,881,033.43
2,362,350.31
5,077,858.99
4,881,033.43
5,077,858.99
2,584,185.51
106,503.48
2,545,454.29
94,935.85
765,683.69
3,456,372.68
780,606.77
3,420,996.91
8,337,406.11
$
8,498,855.90
The accompanying notes are an integral part of these financial statements.
OHIONET ANNUAL REPORT - 15
OHIONET
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED JUNE 30, 2003 AND 2002
2003
2002
UNRESTRICTED REVENUES
Sales of Services and Products to
Member Libraries
Direct Costs of Services and Products
$
Gross Profit
Investment Income
Investment Income - OPAL (Note 3)
Miscellaneous Income
Miscellaneous Income - OPAL
Net Operating Revenues
7,957,261.87
(6,654,189.98)
$
7,444,472.80
(6,249,623.99)
1,303,071.89
1,194,848.81
52,255.30
8,477.58
2,451.07
3,000.00
105,439.10
13,089.82
5,501.89
0.00
1,369,255.84
1,318,879.62
957,014.04
288,574.36
88,291.67
876,708.41
312,956.80
87,955.70
1,333,880.07
1,277,620.91
35,375.77
41,258.71
3,420,996.91
3,379,738.20
OPERATING EXPENSES (Note 4)
Salaries, Wages and Related Payroll
Taxes and Benefits
Administrative
Building Expense
Total Operating Expenses
EXCESS OF
UNRESTRICTED REVENUES OVER EXPENSES
CORPORATE EQUITY AT BEGINNING OF YEAR
CORPORATE EQUITY AT END OF YEAR (Note 1)
$
3,456,372.68
$
The accompanying notes are an integral part of these financial statements.
16 - OHIONET ANNUAL REPORT
3,420,996.91
OHIONET
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2003 and 2002
2003
2002
CASH FLOWS FROM OPERATING ACTIVITIES
Increase in Corporate Equity
$
35,375.77
$
41,258.71
Adjustments to reconcile Increase in Corporate Equity
to net cash provided by operating activities:
Depreciation
116,368.39
103,853.84
(3,077.94)
(2,500.00)
190,344.78
226,187.63
93,910.32
(410,029.13)
26.78
26,048.29
18,503.68
(53,762.00)
Accounts payable and accrued expenses
(202,980.26)
2,278.25
Unearned revenues and other obligations
(148,048.39)
552,614.54
153,423.12
247,881.84
253,846.25
733,831.97
3,556,127.56
4,101,058.56
(4,059,948.46)
(4,033,375.18)
3,110.00
2,500.00
(113,026.89)
(117,246.50)
(613,737.79)
(47,063.12)
-
(314,003.00)
-
(314,003.00)
(359,891.54)
372,765.85
2,034,572.19
1,661,806.34
(Gain) on disposal of equipment
(Increase) decrease in:
Accounts receivable
Prepaid expenses and deposits
Inventories
Other assets
Increase (decrease) in:
Unearned revenues and other obligations - OPAL
Net Cash Provided By Operating Activities
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from sale of short-term investments
Purchases of short-term investments
Proceeds from sale of property
Purchases of property
Net Cash Provided (Used) By Investment Activities
CASH FLOW FROM FINANCING ACTIVITIES
Reduction of long-term debt
Net Cash Provided (Used) By Financing Activities
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT
END OF YEAR
$
1,674,680.65
$
2,034,572.19
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING TRANSACTION:
Purchase of property financed by accounts payable
$ 779.97
$-
The accompanying notes are an integral part of these financial statements.
OHIONET ANNUAL REPORT - 17
OHIONET
NOTES TO FINANCIAL STATEMENTS
June 30, 2003 and 2002
NOTE 1 - ACCOUNTING POLICIES AND PROCEDURES
General - OHIONET was incorporated in December 1977 as a nonprofit organization to
maintain a library network and to provide bibliographic cataloging services and other library-related
products, services and information for its members, primarily academic institutions and
public libraries in Ohio. The Corporation may not distribute its corporate equity to its members,
and, in the event of dissolution of the Corporation, the Board of Trustees is to adopt such
plans for distribution of remaining assets as is consistent with the purpose of the Corporation
and applicable law.
OHIONET provides services and products to its members by assessing membership and
administrative fees and surcharges on certain products in order to cover operating expenses.
During fiscal 2003 and 2002, approximately 68% and 72% respectively of the direct costs of
services and products provided to members consists of amounts billed by OCLC (Online
Computer Library Center Incorporated), a nonprofit corporation that provides bibliographic
cataloging services and other library related products, services, and information to its member
networks, including OHIONET. In fiscal 2003 and 2002, the cost of OCLC products and
services provided to members totaled $4,491,732.28 and $4,492,561.92 respectively. At June
30, 2003 and 2002, accounts payable included $480,122.90 and $472,648.08 due to OCLC
for products and services.
OHIONET operates under a definite network agreement with OCLC, pursuant to which OCLC
provides services and products to OHIONET and its members. While the initial term of the
network agreement expired June 30, 1983, the agreement has been extended indefinitely
while the parties re-negotiate the terms of the contract. The original contract includes a
provision that either party must give sixty days prior written notice to terminate the agreement.
Basis of Accounting - The financial statements of OHIONET have been prepared on the
accrual basis of accounting and accordingly reflect all significant receivables, payables, and
other liabilities.
Basis of Presentation - Financial statement presentation follows the recommendations of the
Financial Accounting Standards Board in its Statement of Financial Accounting Standards
(SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117,
the Organization is required to report information regarding its financial position and activities
according to three classes of Corporate Equity: Unrestricted Corporate Equity, Temporarily
Restricted Corporate Equity, and Permanently Restricted Corporate Equity. The Corporation
had only Unrestricted Corporate Equity for the years ended June 30, 2003 and 2002.
Expense Allocation - The costs of providing various member services programs have been
summarized on a functional basis in Note 4. Accordingly, certain costs have been allocated
among the programs and supporting services benefited.
Promotional Materials – The organization expenses promotional cost, which includes a small
amount of advertising as incurred. Promotion and advertising expense amounted to $4,298.50
and $20,035.23 for the years ended June 30, 2003 and 2002, respectively.
18 - OHIONET ANNUAL REPORT
OHIONET
NOTES TO FINANCIAL STATEMENTS
June 30, 2003 and 2002
Pension Expense - Effective July 1, 1980, the Corporation established a defined contribution
pension plan covering all full time employees with at least one year of service. Contributions to
the plan are based on participants’ salaries. Through December 31, 2001, each employee
who desired to participate was required to contribute 1% of gross salary into the plan while
OHIONET contributed 6% of each participant’s gross salary. Effective January 1, 2002
OHIONET’S contribution was increased to 8% and the participant contribution was increased
to 2%. The Corporation’s policy is to fund pension costs as accrued. The total pension
expense in fiscal 2003 and 2002 was $58,667.31 and $41,199.27, respectively.
Financial Investments - The organization invests excess cash in overnight money market
funds, certificates of deposit, and commercial paper. All banking is carried out at a single
Columbus financial institution. At times during the fiscal years ended June 30, 2003 and 2002,
and at times through the date of this report, the amount of cash on deposit exceeded the
federally insured limit of $100,000.00
Cash and Cash Equivalents – For purposes of the Statements of Cash Flows, OHIONET
considers all unrestricted liquid investments with original maturities of ninety days or less to be
cash equivalents.
Short-Term Investments - Short-term investments consist of certificates of deposit and
commercial paper with original maturities between 140 days and 306 days. Short-term
investments are stated at cost because that approximates market value.
Property and Depreciation - The organization capitalizes all expenditures for property in excess
of $300.00. Property is recorded at cost. Depreciation is provided using the straight-line
method at rates based on the estimated useful lives of the computer equipment (three years),
office furniture and equipment (three to ten years) and the remodeled building (thirty years).
The total depreciation expense in fiscal 2003 and 2002 was $116,368.39 and $103,853.84,
respectively.
Inventories - Inventories consist of supplies valued at cost which approximates market, using
primarily the first-in, first-out method of valuation.
Accounts Receivable - OHIONET extends credit to its members, substantially all of whom are
located in Ohio. Any accounts deemed to be uncollectible are charged to expense when that
determination is made. In fiscal 2003 and 2002, accounts totaling $ 0.64 and $ 0.61 were
deemed uncollectible.
Federal Income Tax - The corporation has obtained tax exempt status under Section 501(c)(3)
of the Internal Revenue Code and has no net unrelated business income. Accordingly, no
provision for federal, state or local income tax has been made. In addition, the Organization
qualifies for the charitable contribution deduction under Section 170 (b)(1)(A) and has been
classified as an organization other than a private foundation under Section 509(a)(2).
OHIONET ANNUAL REPORT - 19
OHIONET
NOTES TO FINANCIAL STATEMENTS
June 30, 2003 and 2002
Other Assets - OPAL equipment and software licenses are owned by OHIONET on behalf of
the participating OPAL members. As a result no depreciation is provided for these assets.
Estimates - The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
certain amounts and disclosures. Accordingly, actual results could differ from those estimates.
Unearned Revenues - OHIONET records prepayments from members as a liability, unearned
revenues, and recognizes revenues as services are performed.
NOTE 2 - BOARD DESIGNATED EQUITY
It is the policy of the Board of Trustees of OHIONET to designate specified amounts of
unrestricted corporate equity for specific purposes, projects or investments. The following
designations have been approved:
The Reserve Fund was established to exploit opportunities in technology and
telecommunications and to expand services, membership and revenue.
NOTE 3 - THE OHIO PRIVATE ACADEMIC LIBRARIES (OPAL) PROJECT
During fiscal 1998 OHIONET entered into agreements with seventeen private academic
institution members to provide an avenue to group membership in OhioLINK. Through June
30, 2002 three additional private academic institutions joined the initial group. On July 1, 2002
nineteen of the members signed a new three-year agreement with OHIONET. One additional
institution joined the group effective July 1, 2003. The OPAL project agreements provide that
all hardware and software licenses and other assets, which are purchased by the participants
as part of the project, will be owned by OHIONET as administrator of the project on behalf of
the participating OPAL members. As required by the OPAL Project Agreements, OHIONET
separately accounts for OPAL activities. OPAL equity represents the investment earnings on
OPAL deposits held by OHIONET.
As of June 30, 2003 and 2002 OPAL’s assets, liabilities and equity are:
Cash and Cash Equivalents
Accounts Receivable
Prepaid Expenses
Equipment and Software Licenses
Total Assets
$
Accounts Payable and Accrued Expenses
Unearned Revenues and Other Obligations
Equity
Total Liablities and Equity
$
20 - OHIONET ANNUAL REPORT
$
$
2003
772,645.36
479,173.46
522.95
1,404,721.50
2,657,063.27
34,786.36
2,515,773.43
106,503.48
2,657,063.27
$
$
$
$
2002
646,059.88
466,995.59
1,423,225.18
2,536,280.65
78,994.49
2,362,350.31
94,935.85
2,536,280.65
OHIONET
NOTES TO FINANCIAL STATEMENTS
June 30, 2003 and 2002
The OPAL agreements permit the OHIONET Board of Trustees to end its participation in the
OPAL project by providing 90 days notice of its intent to all participants. Termination by a
participant does not eliminate the obligation of the participant to make all payments required by
the agreement. Should OHIONET elect to end its participation, a successor entity with a
purpose similar to the OPAL project will be chosen by the participants to succeed to the
ownership and management of the project. In the event the project is terminated any excess
OPAL funds remaining shall be applied solely for purposes of the OPAL project.
NOTE 4 - FUNCTIONAL ALLOCATION OF EXPENSES
The costs of providing the various members services by function are as follows:
Salaries, wages and related
payroll taxes and benefits
Administrative
Building expense
Totals
Salaries, wages and related
payroll taxes and benefits
Administrative
Building expense
Totals
2003
Total
Member
Services
Administration &
Accounting
$ 957,014.04
288,574.36
88,291.67
$ 1,333,880.07
$ 631,088.84
194,796.42
75,604.15
$ 901,489.41
$ 325,925.20
93,777.94
12,687.52
$ 432,390.66
2002
Total
Member
Services
Administration &
Accounting
$ 876,708.41
312,956.80
87,955.70
$ 1,277,620.91
$ 568,572.81
207,550.46
74,296.18
$ 850,419.45
$ 308,135.60
105,406.34
13,659.52
$ 427,201.46
OHIONET ANNUAL REPORT - 21
OHIONET Members
Ada Public Library
Adams County Hospital
Adams County Public Library
AK Steel Corporation
Akron Art Museum
Akron Summit County Public Library
Alexandria Public Library
Amos Memorial Public Library
Antioch College
Ashland Chemical, Inc.
Ashland Theological Seminary
Ashland University
Athenaeum of Ohio
Avon Lake Public Library
Baker & Hostetler
Baldwin-Wallace College
Barberton Public Library
Battelle Memorial Institute
22 - OHIONET ANNUAL REPORT
Beaver County Library System
Bellevue Public Library
Belmont Technical College
Bexley Public Library
Birchard Public Library of Sandusky County
Bluffton College
Bowling Green State University
Bowling Green State University - Firelands
Bradford Public Library
Burton Public Library
Butler County Law Library Association
Canal Fulton Public Library
Capital University
Capital University Law Library
Carnegie Public Library
Case Western Reserve University
Cedarville College
Central State University
OHIONET Members
Charles F Kettering Foundation
Chemical Abstracts
Childrens Hospital–Columbus
Childrens Hospital Research Foundation
Christ Hospital
Cincinnati Art Museum
Cincinnati Bible College and Seminary
Cincinnati Historical Society
Cincinnati Law Library
Cincinnati State Technical & Community College
Clark County Public Library
Clark State Community College
Clermont County Law Library Association
Clermont County Public Library
Cleveland Area Metropolitan Library System
Cleveland Botanical Garden
Cleveland Clinic Foundation
Cleveland College of Jewish Studies
Cleveland Health Sciences Library
Cleveland Institute of Art
Cleveland Institute of Music
Cleveland Museum of Natural History
Cleveland Public Library
Cleveland State University
Cleveland-Marshall College of Law
Clinton Memorial Hospital
College of Mount St. Joseph
College of Wooster
Columbiana Public Library
Columbus Aids Task Force
Columbus City Schools
Columbus College of Art and Design
Columbus Dispatch
Columbus Law Library Association
Columbus Metropolitan Library
Columbus State Community College
Columbus Zoo
Council of Ashtabula City Libraries
Cuyahoga Community College
Cuyahoga County Public Library
Dayton & Montgomery County Public Library
Dayton Art Institute Library
Dayton Law Library Association
Defense Finance Accounting Service
Defiance College
Defiance Public Library
Delaware County District Library
Denison University
Department of Veterans Affairs (Chillicothe)
DeVry Institute of Technology
Dr. Samuel L Bossard Memorial Library
EISC, Inc.
Environmental Quality Management
Ernst & Young Center for Business Knowledge
Fairfield County District Library
Federal Reserve Bank of Cleveland
Ferro Corporation
Findlay-Hancock County Public Library
Flower Memorial Hospital
Foreign Science Library
Franciscan University of Steubenville
Franklin Public Library
Franklin University
GE Aircraft Engines
Geauga County Public Library
Germantown Public Library
Glenville State College (W. Va.)
Good Samaritan Hospital
Good Samaritan Hospital and Health Center
Goodyear Tire and Rubber Co
Gould Electronics
Grandview Heights Public Library
Granville Public Library
Greene County Public Library
Greenville Public Library
Heidelberg College
Hiram College
Hocking Technical College
Holden Arboretum
ICI Paints
INFOhio
International Paper Packaging
John Carroll University
Kent Free Library
Kent State University
Kent State University - Stark Campus
Kent State University - Trumbull Campus
Kent State University School of Library
& Information Science
Kenyon College
OHIONET ANNUAL REPORT - 23
OHIONET Members
Kettering Medical Center Libraries
Kinsman Free Public Library
Lake Erie College
Lakeland Community College
Lakewood Public Library
Lane Public Library
Lebanon Public Library
Lexis-Nexis
Library Association of Sandusky
Lima Public Library
Lloyd Library and Museum
Logan County District Library
Lorain County Community College
Lorain Public Library
Lourdes College
Lubrizol Library
Mahoning Law Library Association
Malone College
Mansfield-Richland County Public Library
Marietta College
Marion Public Library
Marvin Memorial Library
Marx Law Library, College of Law, University
of Cincinnati
Mary L. Cook Public Library
Marysville School District Public Library
Mason Public Library
Massillon Public Library
McDermott Technologies, Inc.
Mead Technical Information Center
MedCentral Health System
Medical College of Ohio
Medina County District Library
Mercy College of Northwest Ohio
Mercy Hospital Anderson–Cincinnati
Mercy Medical Center
Methodist Theological School in Ohio
Miami University
Miami University - Hamilton
Miami University Middletown
Middletown Public Library
Mount Carmel School of Nursing
Mount Union College
Mt Vernon Nazarene College
Muskingum College
Muskingum County Library System
24 - OHIONET ANNUAL REPORT
NASA Glenn Research Center at Lewis Field
National Technology Transfer Center
National Underground Railroad Freedom Center
Nationwide Library
New Albany Plain Local Schools
New Carlisle Public Library
Newark Public Library
NOLA Regional Library System
North American Center for Marianist Studies
North Baltimore Public Library
Northeastern Ohio Universities College of Medicine
Northwest Library District (NORWELD)
Northwest State Community College
Oberlin College
Ohio Agricultural Research and Development
Ohio Dominican College
Ohio Environmental Protection Agency
Ohio Historical Society
Ohio Legislative Service Commission
Ohio Library Council
Ohio Northern University
Ohio Northern University Law Library
Ohio State University
Ohio State University College of Law
Ohio University
Ohio University - Chillicothe
Ohio University - Eastern Campus
Ohio University - Ironton
Ohio University - Lancaster
Ohio University - Southern Campus
Ohio University - Zanesville/Muskingum Area
Ohio Valley College (W. Va.)
Ohio Wesleyan University
Ohioana Library Association
OhioLINK
Otterbein College
Owens Corning Science & Tech Center
Owens Community College
Payne Theological Seminary
Peninsula Library & Historical Society
Pickaway County District Public Library
Pickerington Public Library
Pilkington Corporation
Plain City Public Library
PolyOne Corporation
Pontifical College Josephinum
OHIONET Members
Portage County District Library
Porter Public Library
Porter, Wright, Morris & Arthur
Preble County District Library
Prior Health Sciences Library - OSU
Proctor & Gamble Technical Library
Public Library of Cincinnati and Hamilton County
Public Library of Mt Vernon & Knox County
Public Library of Youngstown and Mahoning County
Raymond Walters College
Riverside Methodist Hospital
Rocky River Public Library
Rodman Public Library
Ross Laboratories
Rutherford B Hayes Presidential Center
Saint Vincent Medical Center
Saint Xavier High School System (KY)
Salem Public Library
Shawnee State University
Sherwin-Williams Company
Sinclair Community College
Southeastern Ohio Regional Library Center (SOLO)
Southern State Community College
Southwest Public Libraries
Southwestern Regional Library
Squire Sanders & Dempsey, L.L.P.
Stark County District Library
State Library of Ohio
Stow-Munroe Falls Public Library
Supreme Court of Ohio Law Library
Taylor Memorial Public Library
The Timken Company
Tiffin University
Tiffin-Seneca Public Library
Toledo Hospital
Toledo Museum of Art
Toledo-Lucas County Public Library
Trinity Lutheran Seminary
Troy-Miami County Public Library
Tuscarawas County Public Library
Union Township Public Library
United Theological Seminary
University of Akron - Wayne College Library
University of Akron
University of Akron School of Law
University of Cincinnati
University of Cincinnati - MCIC Libraries
University of Dayton
University of Dayton Law Library
University of Findlay
University of Rio Grande
University of Toledo
University of Toledo College of Law Library
Upper Arlington Public Library
Upper Sandusky Community Library
Urbana University
Ursuline College
US Air Force FASTC
Veterans Administration Medical Center,
Brecksville
Veterans Administration Medical Center,
Chillicothe
Walsh University
Warren-Trumbull County Public Library
Washington & Jefferson College (PA)
Washington–Centerville
Washington State Community College
Waynesburg College (PA)
Western Reserve Historical Society
Westerville Public Library
Westlake Porter Public Library
Wheeling Jesuit University (W. VA.)
Wilberforce University
Willoughby-Eastlake Public Library
Wilmington College
Winebrenner Theological Seminary
Wittenberg University
Worthington Industries
Worthington Public Library
Wright Memorial Public Library
Wright Patterson Air Force Base
Wright State University
Wright State University - Celina
Wright State University - Fordham Health Sciences
Library
Xavier University
Youngstown & Mahoning County Public Library
Youngstown State University
OHIONET ANNUAL REPORT - 25
Your Library and Information Partner
OHIONET
1500 West Lane Avenue
Columbus, Ohio 43221
Phone (614) 486-2966
Toll Free (800) 686-8975
Fax (614) 486-1527
memserv@ohionet.org
www.ohionet.org
(November 2003)