Financials

Financial Results

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

As can be seen in the following chart, operational revenue comes primarily from membership fees and Heritage Content Access and Preservation (HCAP) fees. CRKN relies on past accumulated surpluses, monitors cash flows, and subsidizes our operating activities with interest and other revenues where appropriate.  

2023–2024 Revenues by Source

($4,618,234 Total)

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

With the spike in interest rates, 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 2023-2024 fiscal year.

Average Interest Rate from Bank of Canada

Expenses

CRKN’s salary costs are the largest component of the annual budget as CRKN employs a diverse team of librarians, developers, technicians, and other professionals to deliver on our strategic objectives. To support CRKN’s robust governance, CRKN budgets for one in-person meeting per-committee and two in-person meetings for the Board in addition to the annual Member Summit. The bulk of budgeted governance costs are in travel expenses, which are on the rise post-pandemic. 

2023–2024 Actual Expenses

($4,308,792 Total)

Surpluses and Reserves

CRKN restricts 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 still leaves significant unrestricted net assets to address budget shortfalls and contingencies in 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 to reinvest in the organization’s capacity in alignment with its approved strategic plan.  

Financial Outlook

In March 2024, the Finance and Audit Committee and the Board recognized the need to continue to invest in the organization and recommended a deficit budget for fiscal year 2024–2025.

Management continues to pursue additional sources of revenue to support CRKN’s long-term sustainability as interest rates, which have been unusually high and have resulted in multi-year surpluses, cannot be relied to upon for the future.

2023–2024 Summary Financial Statements