STATEMENT REGARDING FINANCIAL CRISIS

     The Canadian Kennel Club is not insolvent nor is it contemplating bankruptcy. We are in tough economic times. There was a compounding impact to our budget as registrations slowed, membership declined and entries at CKC events dropped slightly. This came to a head when the normally strong fourth quarter registration numbers in 2009 failed to materialize. Coupled with an unexpected drop in membership, this created a cash flow crisis that the board was made aware of at the March meeting in Winnipeg.    

    Since that time the board has taken steps to place the CKC back on solid financial ground.  We requested help from our members and clubs, but we realize that donations will only solve the problem on an interim basis, but they do give the board breathing room to implement other plans of action. The CKC has to create a new way of doing business.

     The Board approved an interim committee to examine all business aspects of your club. The committee as many of you are aware is made up of Interim Chair Lee Steeves, CEO Joe Mauro, Audit Chair Line Champagne and Michael Shoreman.

    At the March board meeting the motion was passed to increase recording fees for all events by $1.50. The board also is looking at a different approach to registration that will hopefully increase revenues. Both these new initiatives will come into effect June 1, 2010. The board has is examining both short and long term strategies to generate revenue and cut costs.

    We are aware it’s a two way street. Revenues must increase and costs must be reduced.

    Members hopefully will understand that many of the areas they suggest savings come at a great expense or cannot be implemented due to our bylaws, contracts, leases or the APA. That being said, many savings are being made.

     An RFP for our mail room and printing services was issued and beginning in May savings of $20,000 monthly will be realized by this new contract with IKON.

     Salaries have been frozen, staffing and back staffing of vacant positions will not move forward, six employees have been laid off indefinitely including four from the CKC and two from APEX.

     Many of the rumours the membership is hearing are just that...rumours.  We are seeing mixed support for the request for donations. Rightfully so, many of the clubs and organizations want to know what the board’s plans for the future entail.

     As mentioned earlier the board is working on both short and long tern financial strategies. Trust is a very difficult word to throw out in these times but I assure the members in Zone 5 that the board members are working extremely hard to make this an even better CKC. There will be changes. Some of them will be difficult, all will effect the membership in one way or the other…but I promise they are being made with the view to saving this organizations that we are all passionate about.

    On a personal note, I apologize this editorial has taken so long. I was attempting to gather as much information as possible after the initial announcement to help make sense of this issue. It’s far from over and as more information comes available I will relay it to you as prompt as possible. Much has happened in the last three weeks and I expect much more to happen over the next few months.

    I appreciate all comments and suggestions. I have attempted to answer all emails in a timely fashion and if I’ve missed any, please resubmit since it has been a trifle hectic.