Spotlight
June Board Meeting Agenda
 

BSL Task Force
V
 


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2007 information has been archived.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2008 information has been archived.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2009 information has been archived.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
 

The Canadian Kennel Club
200 Ronson Drive
Suite 400
Etobicoke ON
M9W 5Z9

July 30, 2010
 
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
July 17, 2010
 
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

 

July 10, 2010
 
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
July 8, 2010
 
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

 
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
 
 
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  
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
June 3, 2010
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.

 

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
 

 
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.
 
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
 
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

CKC FINANCIAL CRISIS
Part 2

Last week, the Board concentrated on revenue generation - with appeals to Clubs and to the membership.  The shortfall for the May June period will require in infusion of cash.  Depending on the amount collected, there will also have to be expenditure reductions in both variable costs and salaries to make the budget work.  With the increase in shows and trials and the concomitant recording fees, there will not be an issue beyond early summer, provided we are able to pay our bills now.  If bills have to be deferred, so too will be the deficit amount, with the catch up period taking longer and the impact on staff greater.  There will be a drop in service levels, particularly in May/June while we work through this crisis.


Monies are coming in targeted for the recovery effort.  Clubs like yours are donating amounts significantly above the $1000 asked for, understanding that many clubs cannot or will not be able to respond positively. 

There will be no impact on the Registry.  There is more than sufficient registration revenue to support our 8 Registration staff.  The impact will be felt elsewhere in the organization.  As I have met with folks and clubs in this area, I have likened the procedure going forward to a target.  In the center is our core function - Registration.  That is sacrosanct and will not be impacted.  The next layer out is shows and trials.  Here an impact will be felt as we continue to generate funds in non-traditional ways to meet payroll.  At this time, there are not sufficient funds to pay our fixed costs plus payroll to the end of April.  Decisions will have to be made on both deferrals and on staff impacts.  The next layer of staff beyond shows and trials include the support services.  Some will be minimally impacted because of the nature of their function during the recovery initiatives - those like our three financial staff, communications and IT are integral to our functioning and being able to ensure the membership is aware of the decisions being taken.  Others will be impacted more directly.  Managers and staff will be treated in a fair and equitable manner.  We are currently undertaking a cost/benefit analysis by Sector.  With that information, we will be able to take decisions that will strengthen the organization once we move beyond this cash flow crisis.  And we will be able to do that. 

I hope that we will have an expenditure reduction strategy by Friday and a plan beyond that strategy by early next week.  The efforts of the Board are concentrated on the crisis and on communicating to the members so that everyone has the best possible and most recent information on which to base decisions. 

If you have specific questions, please send them along and I will do my best to answer them or to find the answers for you.
Lee Steeves
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
   
   
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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