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Welcome Members!
I am pleased to welcome Zone 1 members of the Canadian Kennel
Club (Nova Scotia & Newfoundland). It is my intention, through
this web site, to offer members the latest information available on
CKC actions, activities and programs. Effective communication,
however, requires interaction. I invite you to approach me at
a local canine event, call me at any time or send me an email.
|
2007 information has been archived. To view 2007 information
click here
2008 information has been archived. To view 2008 information,
click here
2009 information has been archived. To view 2009 information, click here |
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The Canadian Kennel Club
200 Ronson Drive
Suite 400
Etobicoke ON
M9W 5Z9 |
| July 30,
2010 |
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Dear CKC Member,
During the third week of
July, a full analysis
was again completed of
the CKC financial
situation with
information current to
the end of June
available on which to
make decisions. In
using last year's
performance as a
benchmark, we are now
able to predict that the
measures taken to date
to improve the overall
financial health of the
organization have been
effective. The bottom
line has improved to a
significant degree,
enabling a stable cash
flow for the present and
an ability to meet
expenses to a break even
level at the end of
December. We are
working to achieve a
position that will
enable the organization
to gain the dollars
necessary to sustain a
surplus position at year
end. That surplus of at
least $350,000 is
absolutely essential to
the ability of the CKC
to meet its' minimal
obligations through the
first three months of
2011.
In addition to the
operating funds
required, there must be
a focus on the future of
the organization. Many
have expressed
frustration with our
existing computer
capability. With the
advanced age of the
existing system, we are
fortunate to have staff
able to maintain any
forward momentum given
the changing demands of
our workloads. To
develop and maintain a
new system, funds are
needed over and above
operating dollars. This
is a primary goal, one
that has been recognized
for many years and one
that must be responded
to. These are immediate
goals of the Board and
will be addressed in the
coming month as we
discuss with members the
approach to the 2011
Business Plan. Your
ideas for revenue change
are most welcome.
Last week, during the
financial review,
reductions were made to
all budget lines that
are not fixed costs. A
meeting with our real
estate professionals to
explore rent options and
discuss our downsizing
of existing space
occurred earlier this
week.
There is now a plan to
meet with the landlord
on our behalf as soon as
possible.
The CEO has met with
staff this week and
explained the progress
made as well as the
challenges still facing
the organization. Staff
has been advised that
there will be a change
to their benefit plan
effective September 1,
2010 - a move that will
assist the organization
in reducing the overall
salary obligation in
this area.
Progress is being made
in recruiting candidates
for the position of
Comptroller. A position
description is being
revised to better
reflect the changes in
the organization. An
accounting credential is
also added as a basic
requirement of this
position. Our Audit
Committee is working
with staff in this
recruitment, bringing
their expertise and
experience as
professionals in the
area of accounting to
the recruitment
process.
From a revenue
perspective, options
being analyzed are: the
membership structure and
associated costs; costs
of non-core functions of
CKC and the ability to
move those functions to
other areas of the
Fancy; other fee revenue
and its appropriateness
given the cost/benefit
analysis of the various
areas of the operation.
In the previous message,
you received a full
comparison of revenues
and expenditures for
2009 versus the same for
2010. Our expenses are
$300,000 less than last
year to the end of
June. This improvement
is as a result of cuts
made last year (that are
realized in 2010) as
well as this year's
restraint measures.
However, our revenue is
$100,000 behind 2009
(and in real dollars
almost $200,000 less
since the donations have
supported us at a level
of $86,000). While we
must be frugal, we must
concentrate on revenues
in the coming months to
ensure stability into
2011.
This week a total
budgetary re-forecasting
process has been
completed based on our
second quarter results
and previous year
experience. The
financial report will be
presented in two weeks
to the Audit Committee
at their regular meeting
and then will be made
available to the
membership.
The Board of
Directors and CEO
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| July 17,
2010 |
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Dear CKC Member,
With the summer
show season underway and
members fully immersed
in dog activity, the CKC
is working at full
capability to respond to
shows and trials. Our
revenue is
not increasing at a
significant rate but is
anticipated to improve
as show results are
finalized and
submitted. Entries
appear to be reasonably
stable - with the ups
and downs normally
associated with summer
events balancing as they
have in previous years.
Registrations, however,
have not rebounded. The
number of purebred dogs
in Canada is decreasing
at the same time that
Canadians are adding
dogs to their households
in increasing numbers.
The impact of this
decline is felt today in
our revenue streams and
is likely to be a factor
in our events if we are
unable to attract new
breeders to our
diminishing pool.
This decline in breeding
is occurring throughout
North America. The AKC
mirrors the CKC change
at a much higher level
given their greater
population. As we
grapple with this change
in the dog fancy, we
must look to new and
innovative ways to both
promote purebred dogs
and to attract new
members. It is these
new members who will
develop the passion for
our breeds that we
have. They will carry on
our legacy and they will
strive for decades into
the future to improve
breeding stock; offering
to the public that
predictability of traits
that makes our purebred
dog so valuable to
society.
We have work to do to
ensure this happens.
Mentoring must become
the norm in all breeds
to ensure their future
viability. Mentoring
must also occur in Clubs
for the same reason.
Volunteers are in the
decline for many reasons
and we must encourage
puppy purchasers to work
with us to ensure the
viability of our sport.
Growth areas are those
where there is less
subjectivity and more
action. Agility and
Rally are thriving - new
sports with high degrees
of activity, little
subjectivity and no
reach for BIS or
HIT. That is, in and of
itself, interesting. New
models must be found for
our foundation events or
they may well not be
supportable in years to
come. How should we
evaluate breeding stock
beyond our current
Conformation Model? Why
is Obedience declining?
What is the change
needed to have a North
American solution
to our current
malaise? Other kennel
clubs around the world
are doing well but their
models are significantly
different from ours. As
we move through the
summer, the Directors
are working to formalize
a 2011 Business Plan
with a new model to
support breeders, show
enthusiasts and the dog
fancy. We look forward
to your input.
As of mid-July, our
overall registration
trend has not recovered
and is still moving on
a slight decline, down
6.5% from last year.
Our revenue and expense
numbers for
our second quarter are
as follows:
2010
2009
2010
2009
Revenue
Revenue
Expense
Expense
April
2,474,350
2,571,611
2,115,483
2,237,109
May
2,882,315
3,025,433
2,541,672
2,829,231
June
3,401,463
3,501,279
3,083,957
3,370,698
These trends combine to
tell us that while we
are improved in our cash
position and have
succeeded in reducing
expenditures, our
revenues are not
rebounding. Additional
reductions in
expenditures must occur
and revenues must
increase to ensure a
robust surplus at year
end. We continue to work
to achieve our goal of a
strong year end
financial position. Your
continued interest and
support is appreciated.
The Board of
Directors and CEO
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| July 10,
2010 |
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Dear CKC Member,
With our short week last
week, production of the
Bulletin was
interrupted. We
apologize. On a slightly
different note this
week, we would like to
offer you an overview of
a recent meeting with
Agriculture Canada.
Subsequent to the June
Board meeting, a meeting
with Agriculture Canada
was held, attended by
Directors Cairns and
Graveley and the Board
Chair. The Agenda was a
full one since meetings
of this nature have not
been frequent through
the life of the CKC.
Agenda items included
the current financial
challenges faced by the
CKC, workloads that are
required of us by
Agriculture Canada; our
obligations under the
APA; procedural
interpretations of
various Policies; bylaw
interpretations and
opportunities open to
the CKC (building on the
experience of other
registries).
Among the most pressing
of the issues examined
is the requirement for
the addition to our
bylaws of "Rules of
Eligibility" for each of
our recognized breeds.
Rules of eligibility are
the most basic of rules
for identification of
and thus "eligibility"
for registration of a
dog within a breed. This
is a very significant
workload. We are the
most complex of the 74
registries administered
under the Animal
Pedigree Act. Most are
single breed registries;
some support multiple
breeds but none to the
extent of the CKC (with
in excess of 180
standards). Other
registries have treated
the inclusion of rules
of eligibility in
different ways.
Agriculture Canada is
not demanding a uniform
approach, nor is this a
bureaucratic
requirement, but rather
one that devolves from
the Act itself.
Since the requirement
for the rules was added
to the APA in the late
80's, we have initiated
a response in the bylaws
with the listing of
breeds, the addition of
the referendum process
for the acceptance of
new breeds, and
expansion of our
definitions. This is
insufficient and at this
meeting, we have been
reminded of that. The
question is: What would
be sufficient? It is
not reasonable to be
required to publish 180
breed standards within
the bylaws (not only
cumbersome and expensive
but also meaning a
referendum item for any
breed standard change).
Agriculture Canada is
not asking this of us
but rather is looking to
us to include a unique
description of "the
essence of the breed".
Meetings this month will
further this discussion;
we will work with
examples and will
provide additional
information to you
as progress is made.
With examples
established, we can work
with clubs and
interested members (in
the absence of clubs),
as well as the breed
standards committee, to
establish the rules.
This of course, because
of the bylaw impact,
will go to you, the
members, by
referendum.
On the subject of shows
and trials, advice was
given that caution must
be exercised by the CKC
in the use of breed
standards for our listed
breeds. Although these
dogs are not registered
by the CKC, Agriculture
Canada is of the opinion
that we are walking a
fine line in including
dogs registered with
other registries in our
CKC shows unless we are
particularly cognizant
of the breed standard of
the existing registry
and do not deviate from
it - whether the
standard of the country
of origin or the
standard of another
registry under the APA.
Agriculture Canada
expressed support for
the concept of the CKC
in some way embracing
the non-purebred dog in
its mandate. Also
discussed was the
'advanced registry'
concept, the meeting of
the mandate requirements
of the APA to breed
improvement, consumer
protection and
prevention of fraud, and
the building of a solid
genetic base for the
recognized breeds.
There was a discussion
of our regulatory system
with an expressed view
by Ag Canada that we are
being perhaps overly
zealous in some cases in
the administration of
the Act. They note we
are the most litigious
of their registries and
more challenged than
most in effectively
managing a dispute
resolution
process. This, of
course, speaks at many
levels, to the diversity
of our membership
organization and the
number of breeds, as
well as our competitive
structure (not all of
these elements are
enjoyed by other
organizations).
Broader topics included
value-added options for
improved breeding
practices, a discussion
of % animals (a
definition of purebred
and a method to widen
the genetic base by
introducing genes
outside the particular
breed), and alternative
methods of improving
confidence in registered
genetics as well as
administrative issues
between our two
organizations. It is
fortunate that both
Agriculture Canada and
the CKC Board have
geneticists working on
these files - with both
Mrs Cairns and Mr
Windsor carrying that
expertise in addition to
that of our excellent
resource, Mr Trus, at
Agriculture Canada.
Our communications and
relationship with
Agriculture Canada are
becoming more frequent
and improved. We will
continue this by meeting
once more in July to
further the work on the
Rules of Eligibility.
The Board of
Directors and CEO
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| July 8,
2010 |
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Dear CKC Member,
As June comes to
a close, the CEO has
provided the Board with
the full May financial
reports as well as an
analysis of our
performance to date. As
a result of the
strategic planning
session held at the June
Board meeting, the Board
has worked this week on
the finalization of the
draft Business Plan
goals. These have been
distributed, are posted
on some Directors
websites and are
available to you for
your input and for
discussion with
Directors. The 2011
Business Plan is a
critical document in the
planning of the CKC's
positioning for the
upcoming year. It is
also important as
a basis for changes that
will be reflected in the
2011 Referendum.
We look forward to you,
as members, bringing us
your input and your
insights through the
summer so that a solid
draft may be finalized
in August for Board
presentation in
September. Our
budgeting process will
depend heavily on this
Plan, so its development
and implementation are a
high priority. The
Strategic Plan and the
draft Goals are also on
the members' area of the
website. We urge you to
become involved in the
future of the Club by
reading our plans and
offering comment.
Our financial situation
continues to improve,
largely as a result of
expenditure reduction.
While this is a critical
position to achieve, we
also recognize that
without
a comparable improvement
in our revenues, the
ability to achieve an
adequate surplus at year
end could be
compromised. The best
news for the CKC is that
registration is
significantly improved
over May of 2009. Our
individual registrations
are up 11.5% and litters
are improved by 7%.
While these numbers
indicate a strengthening
within the breeder
community in May, and
perhaps an increased
appetite for breeding
and registering dogs,
our year to date
registration income
remains almost identical
to the 2009 figures (a
1% difference to the end
of May). As has been
mentioned in earlier
messages, registration
is our most significant
measure of the financial
health of the
organization. If
purebred dogs are being
registered at
increasingly lower
levels, there will be
drops in all other
revenue streams.
Therefore, a
strengthening in May
does bode well.
Our deficit position is
improving. From
($38,940) in April, the
current month position
is ($18,112) and
importantly shows an 86%
improvement over May of
last year. The expenses
have dropped by $300,000
year to date over the
same period in 2009.
However, revenues are
$123,000 lower than
2009. Our excess
revenue over expense
position to the end of
May is $360k, an
improvement over the
$164k of 2009.
In summary, revenues are
flat year to date but
showing some signs of
improvement. Expenditure
reductions have been
significant and are
assisting in maintaining
a positive bottom line,
but are not sufficient
to bring us the surplus
necessary to year
end. Additional cost
cutting will have to
occur during the summer
to ensure viability
going into 2011. At the
same time we are looking
to fee increases
in some areas to bolster
revenues.
The breeder listings are
coming in to APEX for
the Dogs Annual and were
sufficient this week
that they overwhelmed
both our telephone lines
and our computer
system. For that we
apologize. We look
forward to an excellent
Annual both online and
in print and are
heartened to see that
our breeder community
feels the same way.
There were questions
again this week
surrounding the CFIA
import requirements
for dogs. If you check
the CKC website you'll
find a host of
information, including
government guidelines,
listings of local
provincial offices, a
Permit to Import
application and links to
the CFIA website.
The Board of
Directors and CEO
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| June 22,
2010 |
The Board has developed a draft Business Planning set of
goals. It is being presented for member comment and
suggestions. It is a proposed direction for the club to take
to ensure long term viability and relevancy.
click here to read the report |
| June 14,
2010 |
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Dear CKC Member,
As we move into the June
period and the show season
is in full swing, the
financial position of the
CKC continues to improve
but, not at a significant or
unexpected rate. A
preliminary view of the May
financials supports the
Board and CEO's expectation
that our registration
amnesty period has been at
somewhat successful.
Although an analysis of the
registration figures will
not be of value until our
two month amnesty birthday,
our registration figures for
May are ahead of last year.
We continue to be behind in
overall registration year
over year but the decline
has slowed. That is an
encouraging indicator.
Also in May, the overall
revenue picture is improving
with our financial balance
at the end of May stronger
than it was in May of 2009.
Due to timing of payments
and of revenue recognition,
month end balances are not
always what they seem.
While our balances are
better than 2009, this is an
indicator only of a slight
return to better financial
health. But again, it is a
positive sign and one that
is encouraging.
Member and Club donations
continue to come in. This
week, we have reached a
donation of $80,000. The
donated funds are critical
to our ability to move
forward in our restructuring
of the CKC. While it is not
anticipated we will have
sufficient funds to
restructure the organization
at the level we would wish
during the current year, we
do anticipate that we will
be able to finalize some
reduction in 2010, largely
thanks to you, the members
and member clubs. This will
put us in a much stronger
position going in to 2011.
This is the week that the
Board is meeting in
Toronto. Preliminary
sessions including
Responsible Dog Ownership,
Strategic Planning and the
APEX Board meeting occurred
as well as a day of
financial analysis and
Business Planning. Goals
were set for the remainder
of 2010 and 2011 and will be
validated throughout the
weekend as additional
presentations are heard and
more financial information
is provided. This
information will be taken to
the membership through the
next month by the Directors,
will be validated by you and
returned to the Office to
achieve a Business Plan at
the September meeting.
During the APEX meeting,
the Board was pleased to
receive both a financial
analysis showing a profit
forecast to the end of the
year and also a significant
realignment of the magazine
to purebred dogs and the CKC
breeder.
The Board meetings will be
full with heavy agendas in
each of the two days. We
are looking forward to
accomplishing as much as is
possible to better position
the club and to support the
Fancy through the remainder
of the year and into 2011.
The Board of Directors and
CEO |
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| June 8,
2010 |
Dear CKC Member,
As we work through the many
challenges facing the CKC
during this period of
change, there are some good
news stories and some
not-so-good news stories.
We have tried to share both
over the past two months of
Special Bulletins. Some
members are concentrated on
revenues while others focus
on expenditure
reductions. Both our revenue
and expenditure streams are
managed carefully on a daily
basis and this daily
financial focus will
continue.
In July, the HST
implementation in Ontario
will be felt nationwide.
The CKC has just been
advised that tax
applications will have to be
implemented on a provincial
basis
for any company dealing with
national accounts. This
means that members will see
increases to their billings
at their provincial tax
rates, rather than the GST
rate previously used in
Ontario.
On Monday of this week, our
staff and the Board were
advised that CKC's
Controller has decided to
retire. Lita Plaza is a
valued staff member, having
worked with the organization
in several financial
positions for over 30
years. With her will leave
a great deal of CKC history
and experience and I am sure
you will all join me in
wishing her well. While we
cannot replace her
experience, this is a
position that will be
staffed as soon as is
possible. The CKC requires
a financial manager. We
will take the time to
analyze the structure of the
organization and the
requirements of the
position. We recognize
our changed environment, and
will seek qualified
candidates for the position
in the near future.
Several requests were made
last week to renew the
Amnesty program for
registration penalty
waivers. We are pleased to
advise you that the Amnesty
period for the completion of
registrations that are
outstanding has been
extended. Charges for all
registrations that have not
been completed within 120
days will be billed at the
120 day rate until the end
of June.
Registrations continue to be
a concern, both as a revenue
generator and also from the
'health of the purebred dog
industry' standpoint. While
May showed a slight increase
in registration units, the
overall trend for 2010
continues downward.
Breeders are simply not
breeding and registering
purebred dogs at the level
that has been the case prior
to 2005. This is not a one
year phenomenon and
parallels the AKC
experience.
Next week, the Board will be
provided the results of the
preliminary member survey
conducted in March that
spoke to dropping
registrations. At a high
level, we can advise you
that there is no one reason
breeders are breeding and
registering fewer dogs. The
pressures on individuals
coming from many areas are
combining to make
dog breeding an increasingly
difficult challenge - and
whether considered a hobby
or a business, the impact is
being felt throughout the
country. This change also
impacts our membership
renewals as well as shows
and trials - all three of
the CKC's revenue streams.
As a Fancy, we must together
find answers to the
challenges we are facing,
not simply administrative
answers to the management of
funds but also answers to
support breeders. These
will not be CKC answers
alone. They will be
solutions born of ideas and
input from our members -
actions that you as members,
breeders and trial
enthusiasts must put forward
to improve our sport so that
it exists in coming years.
The CKC is a parent
organization - a medium size
company existing to support
a varied and changing member
base. What can we do as
members to ensure that the
Fancy strengthens? What are
you willing to do to make
that happen? These are the
questions we have to ask at
the same time we are working
to financially secure the
organization.
As the Board meeting
approaches, the CEO is
concentrated on the
finalization of a
reforecasting exercise to
support the financial
updates being provided to
the Board on a monthly basis
as each month's books are
closed. The Board is
concentrated on our overall
financial health and the
change that must be made to
bolster our position, but is
also looking at the overall
health of the dog fancy.
We look forward to your
input with respect to the
changes you feel will be
necessary.
The Board of Directors and
CEO
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| June 3,
2010 |
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CKC Extends Breeder
Amnesty for Registration
of Canadian Born Dogs!
Due to an overwhelming
response, we have chosen to
extend our Amnesty for
Registration of Canadian
Born dogs to June 30, 2010.
The amnesty is for all
breeders who have, at some
time in the past, registered
a litter but failed to
register the individual
dogs. Right now, and until
the end of June, the CKC is
offering to
waive all late fees and
register the dogs
individually at the 120 day
fee!
This is the first time in
our history that we have
made this type of offer, and
it has the potential to wipe
out years of late fees. The
Amnesty is available to all
breeders, including
non-members, and will be
applied to both online and
mail-in registrations.
Time is ticking--the
Amnesty ends on June 30--so
if you're sending a mail-in
application post it as soon
as possible, to ensure it
will arrive in time. |
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| May 29, 2010 |
| | | | Dear CKC Member,
Week three of the recovery plan is behind us and progress continues on both the financial front and our move toward a stronger client focus.
From a financial perspective, to provide a sense of the current situation, revenues continue to improve; deposits for this week averaged $21,302 which is up 40% from the previous week when deposits averaged $15,195. Our financial picture traditionally improves in late spring and through the summer as event revenues begin to flow.
As the year progresses and the show season winds down, this revenue source decreases. It is critical to our financial health that these revenues increase in an amount adequate to support our expenditures in late fall and through the first three months of 2011.
Registration revenues continue to decline marginally. That decrease is a source of concern, not only from a financial perspective but also as a bellwether for the health of the purebred dog industry in Canada. Analysis tells us that our share of the dog-owning Canadian public is small and not growing. This is an area of concern for you as breeders and, more broadly, a worry throughout the purebred dog fancy. The same situation is also occurring in the United States.
We continue to focus on the financial stability of the CKC. But this is not our only activity. We must also work to better understand how breeders can use the tools that already exist to better support the public understanding of the value of the purebred dog and its' place in Canadian society.
APEX continues to review its' opportunities and support to the CKC and the Fancy. Last week a decision was taken by the publisher to re-orient the magazine to an increased focus on purebred dogs. This week, in response to Board and breeder expressed concerns, it was decided that DIC would once again print the breeder listings as part of the Dogs Annual. The early-bird discount for submissions of breeder listings in the Annual has been extended to mid-June. At the same time, analysis is on-going for areas where expenditures may be reduced without impacting revenues. The APEX mandate is the achievement of a positive bottom line at the end of 2010.
As we move to strengthen the client support to members, this week all forms were redeveloped to enable 'fillable' content rather than having to print and handwrite the information. All registration, membership and shows & trials forms can now be completed on your computer. The exceptions to this are forms completed at events, including Judges Books, Breed Sheets and Move Up Forms, to name a few.
Thank you for your many emails and feedback to last week's Bulletin. We appreciate the support you are showing, as well as the questions and suggestions, as we move forward in the recovery initiative.
The Board of Directors and CEO
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| May 29, 2010 |
The agenda for the June Board Meeting is now available. Click here to read it. |
| May 24, 2010 |
Hi Folks As you know, as a cost saving measure, the CKC has been forced to cease publication of the print version of Kennel & Bench (previously called the Official Section). The publication of the information will now be exclusively on line for members only and can be accessed through the CKC homepage. Below, you will see a response from our IT manager with respect to the time it will take to download if you are on dial up internet service. We have made the files as accessible as possible. Thanks for your understanding as we work to stabilize the financial situation at the CKC. Lee Steeves The June version of Kennel and Bench is just 1 MB in size, even in dialup this is a small file that should download pretty fast. May file is about 2 MB and April about 6MB, so maybe it was the April version the one she tried that was a bit slow to download (March is less than 1MB). On dialup (33 kbps or 56 kbps) it takes from 3 to 4 minutes to download a 1MB file, so the April pdf could be taken around 20 minutes to download (the rest should be below the 5 minutes mark so should be ok). |
| May 22, 2010 |
Dear CKC Member,
This week marks the beginning of the phase two implementation of our Recovery Initiative.
We urge you to speak with your directors regarding the accomplishments to date and plans for the next three months. As stated above, we are working on phase two - a new business plan for the CKC. Included in this plan will be a shift - from a 'policing' focus to a customer service focus that will be supported by extensive policy change.
This change in policy will begin in June and continue throughout the year. We look forward to supporting initiatives that will reduce paperwork and staff time and will put increased responsibility in the hands of the clubs and members. Some motions will be brought to the Board table at the June meeting.
We are changing policy to allow scans and faxes rather than requiring original documentation. Effective immediately, there will be a decrease in requirements for affidavits, asking instead for letters in support of missing documentation or errors made in the registration process. For example: formerly an affidavit was necessary when explaining a missing identifier for a puppy. Now, a letter from the breeder will be sufficient. A policy change will occur in June that eliminates the requirement for a picture when amending colour. Again, a letter is all that will be required. Also, policy change will be brought forward to allow for acceptance of a fax or email for tattoo application, kennel name application and some foreign dog applications. These points are just a few examples. There are many existing policy areas that do not support efficient and affordable management practices. With staff support, we will continue to examine these policies and make changes that will reduce costs and better serve you, the member. We look forward to your input and perspective as we move through this process. The policy manual is on-line and available for your analysis and comment to the board. The second initiative this week is the APEX review. As per Mr Shoreman's recommendations and the on-going work of the APEX Board, a revised business model is being considered. Our current model is not affordable. Both your questions and the questions of the directors are being responded to and evaluated as we grapple with the fundamental change that must and will occur in this area of our business. Financially, we continue to make progress. Our current bank balance is $465,284.75. This will pay our obligations for the next 35 days, leaving a balance of $157,705.75. Our short term cash flow issue is behind us. This is a far cry from the day-to-day existence of two months ago, but we need far greater cash capability to be sustainable this year. We appreciate your continued donations. These funds will be the dollars used to enable us to move forward and finalize the downsizing initiatives that are moving us to a smaller operation The Board of Directors and CEO |
| May 13, 2010 |
Board Accomplishments during the Recovery Period End March – early May click here for report |
| May 9, 2010 |
Dear CKC Member,
Progress continues at the CKC. Our cash flow crisis is now behind us for this period and we are able to look to the future for changes that need to occur to stabilize the organization. We now have monies in the bank to pay our current obligations for a full one month period. That is good news.
Actions to date on the salary side have reduced our obligations by $251,981.
Our debts are not paid in full. We do not have the resources to pay severance to the staff who are on layoff nor have we made a significant start on monies that will be required for the January to March 2011 period. These are commitments that we are carrying and that will require further significant expenditure reduction plans to support. At present, the CEO is exploring benefit options, with a view to reductions, thus providing a lesser salary burden.
We have asked APEX staff for the development of an updated business model. This area of the organization is able to generate funds independently and also supports the CKC in our Kennel and Bench product. However, revenue generation has been slow and a fundamental change is required to position APEX as a much stronger support to the CKC, with a significantly lower cost. This model will be shared with you as decisions are made - you have asked for increased involvement in our decision-making processes and this will be the start of that dialogue.
The Board is meeting in June to move this financial agenda forward. We look forward to an increased member presence at the meeting.
Lee Steeves Interim Chair; Joe Mauro CEO; Michael Shoreman Advisor;
Line Champagne Audit Committee Chair; and the CKC Board of Directors |
| April 30, 2010 |
Dear CKC Member,
With the end of April, we continue to see progress toward our financial goals. While we are not in positive territory for the full month ahead of us, we do have sufficient salary dollars to month's end and anticipate that we will have funds to pay our full obligations for May within the next week. That is a move forward of three weeks in our financial capability month over month.
Our financial obligations are being reduced as quickly as we are able to do so and maintain an operation. This week, we have added three layoffs to the six already complete. While this does not sever these employees from our payroll, it does offer the organization a reduced salary requirement - a reduction now amounting to 14% of our staff complement in the CKC and 15% in Apex.
This week the IKON equipment is being installed and the replacement for Xerox is nearly complete. This will result in more than a $22,000/month savings in printing and mailing costs.
As we reduce staff, we are realizing savings in office space. A plan is under development to configure and sub-let this space to several of our corporate partners - offering them a supported work environment and defraying our lease costs - a win/win scenario.
The three phase plan to support the organization's recovery is moving forward on schedule. The financial analysis, now virtually complete, supports the initial view that, in the short term, we must focus on three areas to achieve the majority of our savings - HR costs, building costs and APEX. Additionally, with the acceleration of the show season, Shows and Trials revenues assist in moving us to a more stable position.
The donations received to date are being used to pay current expenses and have been critical to our success in maintaining the continued operation at acceptable levels.
Phase two of our process is now being implemented. This is the point at which we move from a singular focus on making sure there is enough cash to pay the bills, and on to the changes to the organization that are required to ensure there is enough revenue to meet not only our current obligations but also enough to guarantee that this situation will not recur. Mr Shoreman is working on a cost/benefit analysis, sector by sector, for both the CKC and APEX. There is a new cash flow reporting system that has been instituted with support from BDO, and Mr Shoreman will be providing support for an improved quarterly financial reporting system with a rolling re-forecasting capability.
Also, with the financial information largely analyzed, we are able to move forward with the beginning of a Business Planning process that will support changes to our Policies and Procedures, as well as By Law revisions, which will be recommended to you as we work to better position the organization.
A week that includes layoffs is a very difficult one - for those losing their salary, for those delivering the message, and for the staff who have worked with these folks for many years. As members, our obligation is to support the organization and the staff during these difficult days. Together, we will be the stronger for it.
Lee Steeves Interim Chair; Joe Mauro CEO; Michael Shoreman Advisor;
Line Champagne Audit Committee Chair; and the CKC Board of Directors |
| April 26, 2010 |
Dear CKC Member,
Thank you for your continued support. That is the message that the Board and the Working Group want most to express as we manage the CKC through this financial challenge. Your donations have increased by 50% this week - and these donations are important to our being able to resolve the issues we are facing, in a more timely and effective way than would otherwise be the case. Our cash position is improving weekly. While we will have at least one more month of a concentrated phase one Recovery focus on cash management and control, we anticipate that May could be the final month of phase one. We do require your donations to make this happen and to move us as quickly as possible to the rebuilding phase of our three phase strategy.
During phase one, there is work being done that will support our phase two commitment to a changed, more efficient and vital organization. Included in the work now occurring is a detailed operational and financial review, continuation of the cost benefit analysis, external benchmarking and priority and resource allocation of both CKC and APEX. The Business Plan, to be finalized this summer as phase two of the plan, will take into account the lessons learned in phase one and will look to the future to support strategies that will prevent a recurrence. Better expenditure management is a cornerstone of our improved position and will continue to be a priority for the organization. All lines of our expenses - fixed and variable - are being analyzed for potential savings over the short, medium and long term. These savings will be realized through RFP processes, restructuring, and in some cases reductions of services that are not affordable. In addition, new revenue opportunities are being explored. New revenue streams are essential to our long term improved financial position and, with a business case applied to each, will be integral to the success of the Business Plan's multi-year strategy.
This week, the CEO implemented a revised Cash Flow management system, with the assistance of our accounting firm, BDO. This system provides a daily, weekly and monthly view of our cash position and is an effective tool for the Canadian Kennel Club. This is an example of the changed systems and processes that are being developed to better support the organization. Additionally, we are working on enhanced revenue and expenditure control mechanisms to provide better forecasting report capabilities.
More frequent financial reporting is another outcome of this period. The Board has instituted a process for being provided a monthly financial update rather than the previous quarterly report process that had been used for many years. This provides not only an ability to be more current but also supports our ability to respond to you - the membership.
During this week, as a result of meetings being held across Canada, we have had an opportunity to meet with several of our major partners. We have discussed with them the financial position of the organization, our strategy for moving the organization forward and our commitment to resolving this problem as quickly as possible. All have been receiving these Bulletins and all expressed confidence in the ability of the CKC to move forward to become a stronger and more efficient organization.
It is important to the CKC that our partners, including PetSecure, Iams, PetLynx and Purina are involved and supportive. As a Fancy, we benefit from these relationships at a member, club and organizational level. Benefits ranging from tangible; i.e. Iams support for our Junior Handling program, PetSecure's free insurance for our puppy purchasers, PetLynx support of our identification and recovery service and Purina's support of the CKC Foundation with our National Show; to the equally important provision of industry information, focus and demographics. Our partners provide this support, which is so necessary for an optimal positioning of our situation analysis within the new Business Plan, as we take decisions that will impact the CKC into the future.
Your Directors are holding meetings throughout the country to further explain the financial situation, the processes that have begun to resolve our issues in the short, medium and longer terms and to respond to your many questions. On our websites and in the members section of the CKC website, you will find detailed information on the financial challenges and on questions that you may want answered if you have been unable to attend meetings in your area. Your feedback is important to our success as an organization.
Lee Steeves Interim Chair; Joe Mauro CEO; Michael Shoreman Advisor;
Line Champagne Audit Committee Chair; and the CKC Board of Directors | | | | |
| April 15, 2010 |
CKC announces Amnesty Program CKC Amnesty Program for registration of Canadian born dogs
The Canadian Kennel Club is offering the opportunity for breeders, who may have, at some time in the past, registered a litter but failed to register the individual dogs to do so before May 31, 2010 and we will waive the late fees.
This is the first time in our history that we have made this type of offer, and it has the potential to wipe out years of late fees. Breeders who have sold dogs without registration would be well-advised to take advantage of this offer at this time.
The CKC Amnesty Program for registration of Canadian born dogs is available from April 15 to May 31, 2010 and applies to both online and mail-in registrations.
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| April 14, 2010 |
For a summary of how the club has found itself in this financial crisis, a description of the responsibilities of a CEO and of the Board plus a description of the actions taken to date , please click here. A Q & A format is used to make the material easier to read. |
| April 13, 2010 |
Please be advised that the audited financial statements for 2009,08,07,06 have been posted to the CKC website and can be reviewed at the link below…also posted to the web are the communications distributed to date and the page where donations can be made via PayPal. We will be adding a page to this same area of the website listing those clubs and individuals who have donated and will add to the list as further donations are received. The Financial statements: http://www.ckc.ca/en/Default.aspx?tabid=422 Communications: http://www.ckc.ca/en/Default.aspx?tabid=423 Donate: http://www.ckc.ca/en/Default.aspx?tabid=418 |
| April 9, 2010 |
| | | | Dear CKC Member,
On April 5, you received a bulletin advising you of the serious financial crisis facing the Canadian Kennel Club. Since that time many of you have been in touch with offers of assistance and support. We appreciate that.
On a positive note with your contributions our revenues are increasing and have brought us to a position to be able to cover our reduced salary requirement and reduced expense load to the end of April.
This week, at the request of the CEO, a committee has been struck to support our management of this financial crisis. The committee is comprised of Lee Steeves, Interim Board Chair, Joe Mauro, CEO, Line Champagne CKC Audit Committee Chair, and Mike Shoreman, a former Chair of Audit. Each member brings to the committee finance and business background and a firm commitment to a stronger Canadian Kennel Club.
In a meeting this week with our full staff we were encouraged by the staff commitment to the organization and their strong desire to be part of the solution in moving the organization forward.
As a member you will see change. There will be efficiencies realized through streamlining of services, some of which have already been begun, while others will be impacted as process improvements are established. An expenditure reduction plan, including impacts on both operating expenses and salaries will be brought forward in the coming days. Your ideas, comments and suggestions are being taken into account as the plan is developed.
It is our firm belief that the Canadian Kennel Club will emerge from this financial crisis and be a stronger and more viable entity. As we have repeatedly stated, our registry is not impacted by the situation in which we find ourselves. The unfortunate rumor that the CKC is bankrupt is just that and has no viability.
Following the stabilization of our cash flow, the committee will finalize a medium term strategy taking the organization to the end of 2010 with recommendations for by-law changes and improvements to ensure that this situation can not repeat itself.
This week Agriculture and Agri/Food Canada has been advised that a plan has begun assured that the registry is on a solid foundation and is not compromised and that the CKC will continue in its present form with modifications necessary to ensure our financial viability.That information has been received with an offer by Agriculture and Agri/Food Canada of full support and an assurance that they are strongly behind this organization.
With reductions of expenditures, optimization of our revenue potential and analysis of opportunities for improved revenue streams we look forward to a bright future.
We thank you for your continued support and encourage you to stay in touch.
Lee Steeves
Interim Chair of the Board
Joe Mauro
CEO
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| April 6, 2010 |
CKC FINANCIAL CRISIS
Part 1 Hello Folks
People are asking many good questions with respect to the CKC's financial crisis. The following is a summary response to some of those queries centering on expenditure management:
In 2009, the CEO managed expenses as revenues slid to unprecedented levels. We were under budget in expenses by $720,676 from the 2008 approved budget line tor total CKC expenditures excluding APEX. What this meant, in real terms, was that programs and projects that had been earmarked as able to go ahead were cancelled or deferred for the year, salaries were frozen for 2009 and again for 2010, positions that had been created to further CKC objectives were not filled, leave replacements were not hired for staff that left the employ of the CKC unless the positions were absolutely necessary to continued operations, the non-publishing of the Official Section netted a saving that was sorely needed (although that was not the primary reason for the change in communication to the membership) and all but two expense categories were effectively under-budget at year end. Those that exceeded budget expectations did so by less than the total of the previous year's expenditure.
The culprit in our deficit situation at year end was the 7% drop in total revenue. It was simply unprecedented and not predicted. In addition, APEX suffered a loss whereas in previous years, our publishing arm ran modest surpluses. The combination of losses offered no ability to offset the revenue shortfall from existing revenue streams.
Monies are now being received from Clubs across the country and more is arriving daily. However, from our traditional revenue streams, we continue to see minor slippage year over year. Additional expenditure reductions must occur to balance the 2010 books, even as we manage through this short term cash flow crisis. An expenditure reduction plan is being worked on now and will be presented to the Clubs and the broader membership as we move to the medium term strategy to shore up the organization.
In short, there are two pressing issues. The first and most critical is the cash flow shortfall for this month and the projected shortfall for next month. Even with expenditure reduction, we are currently not able to meet salaries. The other is our ability to work through the medium term - the remainder of this year. With the shortfall handled, that is a much more achievable, will require expenditure reductions followed by stringent management practices. At the March meeting, the Board appointed an Audit Committee that is comprised of 3 members with CA designations. All are committed to working with the Board and staff to do whatever it takes to return the CKC to a viable financial position. Additional meetings are being scheduled by teleconference to ensure all are absolutely current on the progress being made and the decisions that must be communicated to the Board to ensure we are all on top of the financial situation. The staff is working with us at this critical time and, as always, are providing their support and determination to see the organization through.
Lee Steeves
Interim Chair of the Board
Canadian Kennel Club |
| April 6, 2010 |
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| April 1, 2010 |
| | | | Dear CKC Member,
At the March Board Meeting in Winnipeg, with reports from the Audit Committee and the CEO,
it became apparent that the Canadian Kennel Club is in the midst of a financial crisis. Dropping registration numbers, a slight decline in entries and falling membership, all products of a worldwide recession in many industries, have combined in the last quarter of 2009 to leave the CKC in a deficit position that is unable to be managed with our existing cash flow.
Traditionally the first quarter of any calendar year is one of low revenue streams - the show season
is only beginning, breeders register fewer litters at this time and expenses are static. Normally, we are able to weather this period within existing resources and saved earnings. This year is an exception. The deficit was so large ($451,475 for CKC and $150,024 for APEX) that our reserves
have not been able to support our financial position. During the 2009 year, understanding that revenues were soft, projects and programs were cut, expenses reduced and new contracts signed
to further reduce our obligations. These measures assisted in averting a 2009 financial crisis.
At the December Board meeting, the Audit Committee has financial information to the end of September. At that time our Chair of Audit advised that there was certainty in a deficit position
at year end. With advice from the CEO, she advised that the last quarter is generally one of our strongest and that this deficit should be within the capability of the organization to handle. We
now know that this year was not predictable, that revenues continued to drop and that our deficit
has created an issue of crisis proportions.
Appeals are now being made to you, our membership, and to CKC Clubs to assist the CKC with donations, as they are able. This one time cash infusion will be applied to the deficit and will shore up the organization over the next two months. During that period, the Board of Directors is working with members and staff to analyze expenditures, cut services as necessary and reduce obligations to effect positive change.
This is a difficult time for the CKC. We ask you, as a member, to work with the Board to move forward. We need your help and we need your support. There will come a time to analyze the history of this issue and to deal with the lessons we have and are continuing to learn. That will happen once the crisis is averted. Until that time we must work together as The Dog Fancy in Canada. We very much look forward to your support.
Lee Steeves
Interim Chair of the Board | | | | | | |
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| March 19, 2010 |
Hello Folks
It is a difficult day for dog breeders in Nova Scotia. In spite of letters written by the CKC and meetings and discussions with veterinarians, the Council of the NSVMA has imposed a ban on the procedures that it has deemed to be 'cosmetic' in nature and that impact our purebred dogs in a most significant way. I am sure you will find it as interesting as I that cat de-claws are not included in this ban. Attached is the announcement that ear cropping, tail docking and dew claw removal has now been taken out of the hands of veterinarians in Nova Scotia as of April 1 with a 6 month lead in to the total ban in this province. Note also the Veterinary interpretation in the Q and A attachment with respect to breeders who perform any of these procedures.
Lee Steeves
CKC Director Zone 1 Cosmetic surgery notification
NSVMA Cosmetic Surgery Q & A |
| February 19, 2010 |
There is a new company providing cargo service for Westjet. For information on the cargo locations across the country click here |
| January 15, 2010 |
September 2009 Board Meeting overview is now available. To read click here |
| January 26, 2010 |
Advice has been received that Westjet has changed their cargo agent. As many of you know, Westjet used the company ELS as their shipping agent until 2010. As of early January, this arrangement has changed. The new agent in charge of cargo (including dogs) is exp-Air Cargo. They are using a form similar to the one used by ELS and there is a spot for West Jet Account numbers in it. In communicating with this new company, they have noted that it normally takes a couple of days to create an account. This is the email address for them. The form can be accessed under "new account" http://www.expaircargo.com/ |
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