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Our Financial Statements

CRKN continues to deliver value to members, meeting our strategic goals while remaining committed to a sustainable future for our members.

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Summary Management Discussion & Analysis

Financial Results

CRKN’s commitment to financial stability is evident in our multi-year financial objectives. CRKN management actively control costs, drawing down accumulated surpluses, and reducing reliance on interest income where appropriate. Management also carefully balance the size and scope of CRKN activities with the appropriate revenue sources to fund ongoing operations.

As the following chart shows, membership fees and HCAP fees remain CRKN’s primary sources of operating revenues accounting for 67% of revenues. However, the financial health of CRKN is enhanced with revenue from a diverse range of sources including interest revenue, external fee-for-service digitization projects, hosting revenues, in-kind contributions for facilities, CRKN conference registration fees, grants, and foreign exchange service fees. CRKN realizes ORCID-CA consortium fees on a cost-recovery basis and the work of the PID’s program is further supported with funds from the Digital Research Alliance of Canada. These diverse revenue streams, paid primarily by CRKN members, provide a robust foundation for the financial stability of the organization.

2025–2026 Revenues by Source

($4,990,422 Total)

Average Interest Rate From Bank of Canada

The most significant increase to revenue came from much higher than anticipated interest revenue, which greatly exceeded our budget. Other revenue increases were seen in the PIDs program and in fees for hosting services. Heritage Content Access and Preservation fees (HCAP) and Membership fees also increased to account for inflation. Digitization revenue varies from year to year based on the projects undertaken and is thus difficult to predict at budget time. CRKN continues to recognize, in internal financial statements, the in-kind contribution of Library and Archives Canada for office space at 395 Wellington in Ottawa as part of our operating revenues.

With the unexpected revenue due to a slower decline in interest rates than anticipated, as can be seen in the following chart, combined with cost savings, CRKN was able to offset a planned deficit and instead deliver a surplus at the end of the 2025–2026 fiscal year.

Expenses

CRKN has a diverse team of librarians, developers, technicians, and other professionals to address the changing needs of its member community and deliver on strategic objectives. As a result, payroll expenses are the largest component of CRKN’s annual budget. CRKN is governed by a twelve-person Board, five standing committees, and several sub-committees and task groups. The bulk of budgeted governance costs for in-person meetings are in travel and accommodation related expenses. CRKN had cost savings of 36% in professional services due to shifting priorities. In various administrative areas, including conference attendance, equipment maintenance, professional development, and telecommunications, CRKN spent less than budgeted. The finance team compares actual results to the budget each month, maintaining and adjusting year-end forecasts every quarter. This process ensures accurate financial reporting for review with the Finance and Audit Committee (FAC) and the Board of Directors.

2025–2026 Expenses By Source

($4,947,508 Total)

Surpluses and Reserves

Over the past few years, CRKN has realized a series of surpluses. Following the direction of the Net Asset Policy, CRKN restricts assets, at a value of 40% of the approved operating budget, to provide for outstanding operational obligations in the event of the wrap-up of the organization. After accounting for capital assets, this leaves significant unrestricted net assets to prepare for future investment in hardware, address budget shortfalls at year end, and provide a contingency fund for future years. CRKN’s financial reserves and management practices provide the Finance and Audit Committee and the Board with the flexibility and confidence to support deficit budgets and to reinvest in the organization’s capacity in alignment with its approved strategic plan.

Financial Outlook for FY 2026-2027

In March 2026, the Finance and Audit Committee and the Board recognized the need to continue to invest in the organization to advance the objectives of the 2025-2029 Strategic Plan and beyond, recommending a deficit budget of for the FY2026-27 year.

The Bank of Canada has continued to navigate a complex economic landscape in 2026, marked by ongoing trade tensions and inflationary pressures. In October 2025, the Bank of Canada lowered the interest rate by 25 basis points to 2.25% in response to persistent economic challenges and has remained unchanged as of January 2026. While some economists suggest that additional rate cuts may be on the horizon, the central bank appears cautious about taking aggressive actions this year. The forecasts from other economists suggest a potential rise in interest rates to 2.75% as early as January 2027. Most analysts predict that as the Bank of Canada aims to balance stimulating the economy with the need to control inflation, it will refrain from implementing additional rate cuts in 2026. However, there is a segment of the economic community that foresees the necessity for more substantial cuts, should the economic situation deteriorate further.

The projected increase of 54% in revenues when comparing to prior year is a result of the addition of two new revenue streams, CFI and Scholars Portal Journals, as well an increase in funding from the Digital Research Alliance of Canada to support the expansion of the PID’s program, an economic increase to membership and HCAP fees, an anticipated increase in digitization and hosting service fees.

The projected increase of 42% in expenses includes an increase staff with the CFI project, as well as professional fees, governance fees for in person committee meetings and administrative fees (travel, equipment and maintenance).

CRKN operates in a complex environment with many factors that are outside the control of the organization. CRKN utilizes risk management strategies and develops mitigation, prevention and control strategies in risk registers to reduce the impact where possible. Management continues to pursue additional sources of revenue to support CRKN’s long-term sustainability.

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2025–2026 Summary Financial Statements

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A governance chart for CRKN showing that the Executive Director, Board, and CRKN membership oversee CRKN's standing committees. The Content Strategy Committee, Preservation and Access Committee, and CFI Application Strategy Task Group also have sub-committees and task groups that report to them.

From the CRKN team, thank you for your continued support.

Board & Committees

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