Swanepoel.p65 Toward an Understanding of Annual Reports 141 141 Towards an Understanding of Annual Reports of University and Technikon Libraries in South Africa A.J. Swanepoel and I.P.J. Smit A. J. Swanepoel is Deputy Director of Library Services at Technikon Pretoria and I. P. J. Smit is a Statis- tical Analyst at the Directorate of Research and Development at the same institution. Because of the almost total absence of research on annual reports of university and technikon libraries in South Africa, very little is known about the everyday use of their reports outside their institutions.1 This article reports the findings of a survey aimed at obtaining more knowledge on the topic. Areas covered include the purpose of annual reports of univer- sity and technikon libraries, issues included in those annual reports, re- cipients of the reports, promotion and distribution of annual reports, avail- ability of annual reports, and feedback. The findings presented a wealth of information previously not available or known and also draw attention to a number of issues that could lead to further research. nnual reports play an impor- tant role in the corporate world. It is common practice for shareholders, creditors, and analysts to use annual reports as cred- ible, confirmatory databases of informa- tion. Not only are they reliable tools for assessing management�s stewardship and performance, but annual reports also are generally used for predicting, comparing, and evaluating potential cash flows and for making comparisons with other enti- ties and with the industry and the economy as a whole. Managers also use corporate annual reports as tools for attracting sources of financing or facilitating investment deci- sions; for showcasing company products and services; for responding to the public�s expectations; and for meeting statutory and regulatory requirements.2 The importance of annual reports in the corporate world is underlined by the depth and amount of research done an- nually on the topic of annual reports. It includes issues such as the usefulness of annual reports, the future of annual re- ports, the readers of annual reports, an- nual report trends, and content analyses of annual reports.3�7 The latest develop- ments and trends in corporate annual re- porting also feature regularly at confer- ences, at annual competitions for the best annual report, and in newsletters and journals specifically aimed at corporate annual reporting.8�10 The Role of Annual Reports in University and Technikon Libraries From the introductory remarks above, it should be clear that many indicators point to the important role that annual reports play in the corporate world. However, it is far more difficult to come to a conclu- sion about the role of annual reports in libraries, in general, and in academic li- 142 College & Research Libraries March 2003 braries, in particular. There is little theory on the subject and no extended literature base to highlight the role of annual re- ports. Apart from a number of articles on the annual reports of Australian univer- sity libraries that appeared in Australian Academic and Research Libraries, one does not see or read much about the practical use or application of annual reports of academic libraries. 11 This situation surely applies to university and technikon librar- ies in South Africa as well. The most recent research on annual reports of South African university librar- ies was published almost twenty years ago. In a 1983 article, Reuben Musiker compared the contents of the annual re- ports of seventeen university libraries in terms of the number of (1) books and bound periodicals in stock, (2) items is- sued to borrowers, (3) interlibrary loan transactions, and (4) photocopies made. 12 In addition, he reviewed a few other top- ics featured in the annual reports, such as progress in computerization and de- velopments in new library buildings. Although Musiker recommended that an advisory body consisting of the heads of university libraries �give attention to the possibility of establishing a set of stan- dards which could be used as guidelines in the preparation of an annual report,� his recommendation was never taken up by the then Inter-University Library Com- mittee.13 Apart from the almost total absence of research on the topic of annual reports of South African university and technikon libraries, very little, if anything, is known about the everyday use of their annual reports outside their institutions. This situation creates a need to learn more about the annual reports of university and technikon libraries and to try to come to some understanding of their role. Better knowledge and understanding of the an- nual reports of university and technikon libraries would open up various research possibilities that could lead not only to better reporting, but also to better assess- ment of university and technikon librar- ies in South Africa. Objectives To gain more knowledge of the annual reports of university and technikon librar- ies in South Africa, and subsequently to start with an up-to-date knowledge base on the topic, the objectives of a recent study were to obtain answers to the fol- lowing questions: 1. Who is responsible for compiling the annual reports? 2. What is the purpose of annual reports of university and technikon libraries? 3. What issues are included in those annual reports? 4. Who are the recipients of the reports? 5. How do university and technikon librarians market or promote their annual reports? 6. How available are the reports? 7. How often do they get feedback on the annual reports? Method To find answers to the questions men- tioned above, a questionnaire was sent in 2001 to all university and technikon li- braries in South Africa, excluding those of privately owned institutions. The is- sues covered in the questionnaire all re- lated to the questions above. Because there are relatively few uni- versity and technikon libraries in South Africa, questionnaires were sent to the total population of twenty-two university and fifteen technikon libraries. Of the thirty-seven questionnaires mailed, thirty-one were returned. How- ever, one university library indicated that it had ceased to publish annual reports three years earlier and therefore could not take part in the survey. Thus, the survey was limited to the remaining thirty-six university and technikon libraries that publish annual reports. The exclusion of the said university library reduced the population to thirty-six and the respon- dents to thirty. Some university and technikon librar- ies in South Africa do not publish their own or separate annual reports, but their annual reports, or parts thereof, are in- cluded or incorporated into their parent Toward an Understanding of Annual Reports 143 institutions� annual reports. Therefore, the questionnaire made provision for librar- ies to submit data on any one of the two kinds of annual reports, or both, whatever was applicable to a particular library. The results were entered into a spread- sheet program and converted by the SAS program (Statistical Analysis Software, Version 8.1) to frequency tables for all variables. Results It appeared that of the thirty libraries re- sponding to the survey, twenty belong to a group (group 1) that publishes their own annual reports and twenty belong to a group (group 2) whose annual reports, or parts thereof, are included in their parent institutions� annual reports. From the above, it is clear that ten libraries belong to both groups, publishing their own an- nual reports and having them, or parts thereof, included in their parent institu- tions� annual report. Preparation of Annual Reports Section A of the questionnaire dealt with two questions regarding the preparation of library annual reports. The results show that, in 95 percent of cases, the re- TABLE 1 The Purpose of Annual Reports of Libraries Separate or Library Reports Own Reports Incorporated in the Parent Institutions� Annual Reports (Group 1 Libraries) (Group 2 Libraries) n=20 n=20 Purpose Yes To No Yes To No some some extent extent To present a general overview of key trends and highlights 84%* 16%* 0%* 90% 10% 0% To inform management 80% 20% 0% 75% 15% 10% To keep a record of the library�s performance 80% 20% 0% 53%* 26%* 21%* To present a program report (e.g., whom the library serves and how it serves them) 63%* 21%* 16%* 53%* 31%* 16%* To present financial statements 20% 40% 40% 10% 30% 60% To market the library 50% 40% 10% 60% 35% 5% To influence policy makers 45% 45% 10% 40% 40% 20% To gain recognition 40% 50% 10% 42%* 42%* 16%* To give an overview of future plans, strategies, and directions 35% 40% 25% 30% 45% 25% *n = 19 Purposes relating to presenting past information Purposes relating to �soft� issues Purposes relating to future plans, strategies, and directions 144 College & Research Libraries March 2003 sponsibility for preparing a university or technikon library�s annual report rests with the management structure of a li- brary, but not necessarily with the head of the library. It was interesting to note that univer- sity and technikon librarians have a fairly free hand in preparing their annual re- ports. Of those libraries that publish their own or separate annual reports (group 1), only 25 percent have to follow guidelines provided by their parent institution, li- brary board, or library advisory commit- tee with regard to content and format. Even of those libraries whose annual re- ports are incorporated in their parent in- stitutions� annual reports (group 2), only 68 percent have to follow guidelines. Purpose of Annual Reports of Libraries Section B of the questionnaire included a number of questions regarding the pur- pose of the annual reports of libraries. The results are presented in table 1. Although the questions regarding the purpose of annual reports of libraries were not listed in a particular order, they can be classified into three broad catego- ries: (1) purposes relating to presenting past information; (2) purposes relating to �soft� issues (e.g., marketing, influencing, and gaining recognition); and (3) pur- poses relating to future plans, strategies, and directions. There is a definite inclination in group1 to regard the purpose of their annual re- ports to be a tool to present past informa- tion. Eighty-four percent of group 1 librar- ies said the purpose of their annual re- ports was to present a general overview of key trends and highlights, whereas 80 percent said it was to inform management and to keep a record of the library�s per- formance. The remainder of group 1 in- dicated that those issues were �to some extent� a purpose of their annual reports. However, the majority of libraries nota- bly disregarded two other issues that also deal with past performance. Those issues are to present a program report and to present financial statements. It is worth noting that of all the listed purposes the presentation of financial statements was considered by the fewest libraries as a purpose of their annual reports. Only 20 percent indicated a definite yes, com- pared to 40 percent who said it was not a purpose of their annual reports at all. Fewer libraries in group 1 regarded �soft� issues such as marketing, influenc- ing, and gaining recognition as a purpose of their annual reports. Only 50 percent or less of the libraries replied to the ques- tions above with a definite yes. With the exception of presenting finan- cial statements, the issue regarded by the fewest group 1 libraries as a purpose of their annual reports was that of giving an overview of future plans, strategies, and directions. Only 35 percent of the librar- ies replied yes to this question. With regard to what they considered the purpose of their annual reports, the response of group 2 was very similar to that of group 1, with two notable excep- tions: A much larger percentage of group 2 did not regard it as a purpose of their annual reports to keep a record of their library�s performance and regarded the presentation of financial statements even less of a purpose than did group 1 librar- ies. In conclusion, the findings indicate that the majority of university and technikon libraries in South Africa regard issues relating to past performance to be the main purpose of their annual reports. Fewer libraries regard �soft� issues such as marketing and influencing as pur- poses, and only a minority of libraries regard issues such as future plans, strate- gies, and directions as a purpose. Only a very few libraries see it as a purpose of their annual reports to present financial statements. Content of Annual Reports of Libraries Section C of the questionnaire listed a number of issues and asked librarians which of those issues had been included in their last annual reports. The results are presented in table 2. Table 2 shows that the majority of li- braries in group 1, that is, libraries that Toward an Understanding of Annual Reports 145 TABLE 2 Content of Annual Reports Separate or Library Reports Own Reports Incorporated in the Parent Institutions� Annual Reports (Group 1 Libraries) (Group 2 Libraries) n=20 n=20 Issues Included in the Last Annual Report Yes No Yes No Library statistics 100% 0% 63%* 37%* Overview of key trends, highlights, and accomplishments of the previous year 90% 10% 95% 5% Breakdown of activities per library department 85% 15% 25% 75% The chief librarian�s review 70% 30% 42%* 58%* Donations and grants received 60% 40% 30% 70% Acknowledgments 50% 50% 37%* 63%* List of library staff 45% 55% 10% 90% List of library board members 45% 55% 5% 95% Outline of the library�s clients and whom the library supports 40% 60% 20% 80% The library�s mission statement 30% 70% 35% 65% Financial statements 25% 75% 10% 90% Organizational charts 20% 80% 5% 95% List of suppliers 0% 100% 0% 100% Other 0% 0% 0% 0% *n = 19 publish their own annual reports, include issues that relate to past performance. All the libraries include statistics; 90 percent include a narrative account of key trends, highlights, and accomplishments of the previous year; 85 percent give a break- down of activities per library department; and 70 percent include a chief librarian�s review. The least-covered issues in the annual reports of universities and technikons are financial statements (25%), the libraries� mission statements (30%), and organiza- tional charts (20%). None of the libraries includes lists of suppliers in their annual reports. With regard to group 2, that is, those libraries whose annual reports are in- cluded in their parent institutions� annual reports, it is clear from table 2 that the content of the annual reports of the vast majority (95%) consists primarily of an overview of key trends, highlights, and accomplishments of the previous year. The only other issue that is covered by a fairly large number (63%) of group 2 li- braries is library statistics. The chief librarian�s review is included by only 42 percent, and only 35 percent include the library�s mission statement. The findings in table 2 clearly show that the content of annual reports of group 1 differs substantially from that of group 2. Although the emphasis in the annual reports of both groups is on library sta- tistics and an overview of key trends, highlights, and accomplishments of the previous year, there appears to be more variety and detail in the annual reports of group 1. This is probably due to the fact that group 1 has more of a free hand in deciding the content and format of their 146 College & Research Libraries March 2003 TABLE 3 Publication Date of Last Annual Report Separate or Library Reports Own Reports Incorporated in the Parent Institutions� Annual Reports (Group 1 Libraries) (Group 2 Libraries) n=20 n=20 2000 and after 70% 11.11% 1999 10% 66.67% Before 1999 20% 22.22% annual reports and also that the annual reports of group 2 libraries often contain only a summary or selection of issues that a library would normally include in its own annual report. Notwithstanding the differences between the annual reports of group 1 and group 2 libraries, it is notice- able that very few university and technikon libraries include in their annual reports their mission statements, financial statements, organizational charts, and is- sues relating to clients and suppliers, all of which are issues normally included in the annual reports of the corporate world. Publishing and Distributing Annual Reports Section D of the questionnaire dealt with the publishing and distribution of the annual reports of libraries and was aimed at obtaining information on (1) the last time a library published an annual report, (2) the number of copies printed or pub- lished, (3) who the recipients of their annual reports are, and (4) what initiatives libraries take to distribute their annual reports. The first question in this section dealt with the date of publication of the last annual report. The follow- ing question dealt with the number of copies printed of the last annual report. This question, however, was limited to group 1 libraries because group 2 libraries do not have con- trol over the number of annual re- ports published. The responses to these two questions are reported in tables 3 and 4, respectively. As indicated before, twenty (66.66%) univer- sity and technikon librar- ies indicated that they publish their own annual reports, separate from those of their parent in- stitutions. However, of those libraries, only 70 percent published an an- nual report during the past year and only 80 percent published a re- port during the past two years. Four of the libraries (20%) published an annual report three or more years ago. It is somewhat disturbing to note that 20 percent of libraries in both groups indicated that they last published an annual report more than three years ago. It is clear from table 4 that group 1 li- braries publish a very limited number of annual reports. The majority of libraries (72.22%) publish fifty reports or less per a n n u m . Figure 1 shows that the majority of group1 libraries distribute their annual reports to members of their advisory com- mittee or library board (94.74%), to man- agers of their institution (85%), and to their own library staff (80%). Only a relatively small number (25%) of the libraries distrib- ute their annual reports to other libraries. Although it is probably fair to expect that a large percentage of group 1 librar- ies would have recipients of their own TABLE 4 Number of Copies of Annual Reports Printed or Published Separate or Own Reports (Group 1 Libraries) n = 18 Number of Copies Printed or Published % Cumulative % 1�10 11.11% 11.11% 11�30 44.44% 55.56% 31�50 16.67% 72.22% 51�100 22.22% 94.44% 101�150 5.56% 100.00% Toward an Understanding of Annual Reports 147 institutions on their distribution list, it was somewhat surprising to note that three out of twenty libraries do not dis- tribute their annual reports to managers of the institution and four out of twenty libraries do not distribute their annual reports to their own library staff. Apart from wanting to know who re- ceives copies of a library�s annual report by way of a formal distribution list, the questionnaire also included a question to obtain information on other ways in which libraries distribute their annual reports. The results of this question are outlined in table 5. The data in table 5 largely reiterate the results presented in figure 1. Table 5 shows that the majority of group 1 librar- ies seldom or never promote their annual reports in other ways than to distribute copies to members of their own institu- tion or to other libraries. Only a small percentage of group 1 libraries use other initiatives, such as including copies of their annual reports in fund-raising let- ters or giving suppliers copies. Like group 1 libraries, the majority of group 2 libraries focus on their own staff and managers when distributing their an- nual reports in ways other than by means of formal distribution lists. However, a small percentage of group 2 libraries have a tendency to broaden their scope by in- cluding conference delegates, donors, and suppliers as occasional recipients of their annual reports. Availability of Annual Reports Section E of the questionnaire dealt with the availability of annual reports of uni- versity and technikon libraries. The re- sults show that only 16 percent of group1 libraries and 12.5 percent of group 2 li- braries have their annual reports available on their institutions� Intranet. Even fewer libraries make their annual reports available on the Internet: Only one of the libraries that publishes its own re- ports and two of the libraries whose re- ports are included in their parent institu- tions� annual reports make their annual reports available on the Internet. It was interesting to note that only 53 percent of libraries that publish their own annual reports and only 67 percent of li- braries whose annual reports are incor- porated into their parent institutions� an- nual reports keep copies of the reports as information resources. Regardless of whether or not libraries keep their annual reports as an informa- tion resource, only 77 percent of the li- braries that publish their own reports have a complete set of the last five years, whereas 72 percent of the libraries whose reports are incorporated into their parent institutions� annual reports have a com- plete set of the last five years. 95% 80%85% 25% Yes No FIGURE 1 Recipients on the Distribution List Managers Library Library Other of the Committee Staff Libraries Institution 100% 80% 60% 40% 20% 0% 148 College & Research Libraries March 2003 Feedback on Annual Reports The last section (section F) of the ques- tionnaire dealt with feedback. Table 6 shows that the majority of libraries from group 1 and group 2 libraries seldom or never get any feedback on their annual reports. Conclusion As indicated earlier in the article, the ob- jectives of this research were mainly to obtain information on several issues re- garding the annual reports of university and technikon libraries in South Africa and subsequently start with an up-to-date knowledge base on the topic. The find- ings reported in this article presented a wealth of information previously not available or known. From the findings, the following general conclusions can be made: � The majority of university and technikon libraries in South Africa do not fully utilize the potential applications of annual reports. They use their annual re- ports primarily as tools to present past in- formation and tend to neglect other uses, such as marketing, influencing, and gain- ing recognition. In addition, far too few university and technikon libraries use their annual reports to give overviews of future plans, strategies, and directions. Surpris- ingly, although the libraries tend to focus on past performance, only a small percent- age include financial statements in their annual reports�notwithstanding the fact that university and technikon librarians manage millions of rands per annum. � Very few university and technikon libraries include in their annual reports their mission statements, financial state- ments, organizational charts, and issues relating to clients and suppliers, all of which are issues that are normally in- cluded in the annual reports of the cor- porate world. TABLE 5 Other Ways In Which Libraries Distribute Their Annual Reports Separate or Library Reports Own Reports Incorporated in the Parent Institution�s Annual Reports (Group 1 Libraries) (Group 2 Libraries) Ways in Which Libraries Distribute Their Annual Reports n Never Seldom Often n Never Seldom Often I take enough copies to conferences. 19 95% 5% 0% 17 76% 18% 6% I include copies with fund-raising letters. 18 72% 17% 11% 18 72% 17% 11% I provide copies to new library board members. 19 63% 21% 11% 16 69% 19% 12% I give copies to new library staff. 18 47% 21% 32% 17 35% 47% 18% I circulate copies to my regular staff. 18 28% 11% 61% 17 24% 35% 41% I send copies to news media. 18 94% 6% 0% 17 100% 0% 0% I send copies to colleagues in other libraries. 18 61% 28% 11% 17 71% 23% 6% I give copies to suppliers. 18 89% 11% 0% 17 88% 6% 6% Toward an Understanding of Annual Reports 149 � Those libraries that publish their own annual reports also tend to be re- served in terms of publishing and distrib- uting their annual reports: Relatively small numbers are published. In addition, the majority of libraries that publish their own annual reports tend to limit distri- bution to their own institutions and ne- glect or ignore the possibilities of present- ing their annual reports to library users, suppliers, donors, peers, news media, and so on. � The seemingly reserved way in which university and technikon libraries go about presenting their annual reports also is noted by the manner in which they make their reports available to the general public. Very few libraries make use of ei- ther the Internet or their own institutions� Intranets to publish their annual reports. And, contrary to their nature as providers of information, almost half of the univer- sity and technikon libraries that publish their own annual reports do not make their reports available to library users. � The reasons for the apparent underutilization and low profile of annual reports of university and technikon librar- ies could, among others, probably also be attributed to the fact that very few of those libraries follow, or need to follow, any guidelines when preparing their annual reports. In addition, the vast majority of university and technikon libraries seldom or never get any feedback on their annual reports. Possible Research Topics As indicated at the start of this article, there is an almost total absence of research on the topic of annual reports of univer- sity and technikon libraries in South Af- rica, and very little is known about the everyday use of their reports outside the institutions. The findings of the survey described in this article draw attention to the following issues that could lead to further research on the topic: � A need for guidelines for compil- ing annual reports. Those guidelines could be in terms of minimum require- ments, best practices, or other known guidelines. The guidelines could include, but should not be limited to, purpose, content, format, and presentation of an- nual reports. � Regular surveys to determine whether annual reports of university and technikon libraries have improved over a period of time. � Evaluating the effectiveness of an- nual reports of university and technikon libraries. � Effective ways of marketing annual reports. This includes effective ways to cater for more audiences and best prac- tices regarding communication and dis- tribution. � Ways to obtain and evaluate feed- back on annual reports. Other possible research topics that did not arise from this study, but could be worthwhile, are: TABLE 6 Feedback on Annual Reports Separate or Library Reports Own Reports Incorporated in the Parent Institution�s Annual Reports (Group 1 Libraries) (Group 2 Libraries) n=17 n=17 Never Seldom Often Never Seldom Often How often do you get feedback on your annual reports? 18% 59% 23% 47% 35% 18% 150 College & Research Libraries March 2003 � how to balance the information needs of the different audiences of annual reports; � how to change library managers� attitude to meet the challenges of good reporting. It is believed that research on the above topics will not only improve the quality of information included in the annual re- ports of university and technikon librar- ies but also will meet the changing needs of the users of those reports. Furthermore, it is believed that research will enhance the role that annual reports of university and technikon libraries can play in their institutions and in the library community, similar to the important role that annual reports play in the corporate world. Notes 1. A technikon is a technological higher educational institution in South Africa. 2. Canadian Institute of Chartered Accountants, Information to Be Included in the Annual Re- port to Shareholders (Toronto: Canadian Institute of Chartered Accountants, 1991), 30�31. 3. Mark Clatworthy and Michael Jones, �Annual Reporting: Room for Improvement?� Man- agement Accounting 77 (Apr. 1999): 1�4. Available online from http:// web6.infotrac.galegroup.com/itw/infomark/693/12/23189431w6/. 4. Ron Blunn, �Whither the Annual Report?� CIRI Financial Reporting Seminar (Montreal: Canadian Investor Relations Institute, Sept. 28, 2001). Available online from http:// w w w.blunnco.com/about/perspectives/perspective0901.htm. 5. �Annual Reports: Who Reads Them and Why? Findings from the Yankelovich Study,� @issue 1 (2001). Available online from http://cdf.org/cdf/atissue/vol1_1/yankelovich/ yankelovich.html. 6. Jonathan Pite, �Annual Report Trends,� Graffiti: The Art Directors Club of Denver (winter 1999�2000): 1�2. Available online from http://www.adcd.com/newsletters/ winter2000.pdf. 7. Carol Ann Tilt, �The Content and Disclosure of Australian Corporate Environmental Poli- cies� (Adelaide SA: Flinders University, School of Commerce, 1999), 22 (Research Paper Series: 99-4). Available online from http://commerce.flinders.edu.au/researchpapers/99-4.htm. 8. Examples are Sid Cato�s Annual International Annual Report Conference, available online from http://www.sidcato.com/events.htm; and a recent conference entitled �Corporate Disclo- sure and the New Role of the Annual Report: Guidance on Trends in Disclosure and Transpar- ency and Design,� held on Nov. 6, 2002, available online from http://www.niricentralfl.org/ calendar.cfm. 9. Examples are the Czech Top 100 Best Annual Report of the Year, available online from http:/ /www.czechtop100.cz/; and the American Society of Professional Communicators (ASPC) An- nual Report Awards Competition, available online from http://www.asprocomm.com/AnnRpt.htm. 10. Examples are Sidcato�s Newsletter on Annual Reports, published by Cato Communications, Inc., and Annual Report Information, published by Artisan Field Inc. 11. In the 1970s and 1980s, Australian Academic and Research Libraries published a number of articles by Harrison Bryan and others that surveyed and reviewed the contents of annual reports of Australian university libraries. This series ceased in 1988, although a similar overview ap- peared in 1993. See Colin Steele and Joan Jensen, �The State of the Nation: An Overview of Aus- tralian University and Research Library Annual Reports,� Australian Academic and Research Li- braries 24 (1993): 116�26. 12. Reuben Musiker, �South African University Library Annual Reports: A Comparative As- sessment,� Wits Journal of Librarianship and Information Science 12 (Dec 1983): 63�74. 13. Ibid., 74.