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The American Kennel Club CHAIRMAN’S REPORT

November 2006 - The American Kennel Club’s structure as a “club of clubs” is unique among not-for-profit organizations. In addition to the AKC’s main charge to govern the sport of purebred dogs and uphold the integrity of the registry, we also provide valuable guidance to clubs in such areas as hosting events, enlisting new members and helping clubs set up their governance structure. When it comes to a club’s administrative activities, one of the most critical posts in any club is that of treasurer. Without sound financial stewardship, clubs are not able to properly advance their missions by holding dog events or conducting public outreach. Nor can they donate money to the community in such diverse ways as scholarships or donating K-9’s in areas where they are sorely needed, etc. The typical “job description” of a treasurer includes tasks such as collecting and recording all monies due to or belonging to the club, depositing monies in accounts on a timely bases, using monies to pay the club’s debts, reporting on the status of monies at meetings and compiling an annual report. These activities are very crucial to the club’s fiscal health and should only be conducted by those with experience in this area and not be left to chance. Unfortunately, when things go awry with a club’s financial situation it is very difficult to rectify. The AKC does not exercise jurisdiction in these matters because it is impossible for us to properly investigate cases that would require the legal authority to subpoena bank statements and other private records. It is crucial that clubs take preventative measures. I have listed below, what we believe to be the best blueprint for success when dealing with club monies and what has been recommended by major auditing companies: ° Ensure that the club’s treasurer is bonded against loss of funds (visit www.bond007.net for more information on a treasurer bond). ° Perform a periodic audit of the treasurer’s records to:      ° Ensure proper invoices (or other documentation) adequately support any payments.      ° Verify that bank reconciliations are performed accurately and timely. ° If possible, it is preferable to have a person approving invoices different than the individual preparing and/or signing the checks. Similarly, it is desirable to have an individual reconciling the bank accounts who is different from the person preparing and /or signing the checks. Segregation of these tasks provides a more desirable level of internal control. ° Consider establishing an audit committee of club members not involved in preparing or signing checks. Their role would be to annually review the details of all cash receipts and disbursements. ° The Treasurer should prepare a quarterly balance sheet and an income statement. This should include an itemized listing of all cash receipts and disbursements during the quarter. In the area of cash management: ° All cash receipts should be deposited timely. ° Bank accounts should be formally reconciled each month on a timely basis. ° Follow up on any checks outstanding for more than 3 to 6 months. ° Consider requiring a second authorized signer for all checks over a prescribed dollar amount, usually $250. ° Consider investing excess funds in an interest bearing account or certificate of deposit.   In an ideal world, we wouldn’t have to worry about these matters. Yet from a practical standpoint, it is essential that we not bury our heads in the sand and all make it our business to put sufficient internal controls in place within each of our clubs. By reviewing and embracing as many of these points as possible, clubs will go a long way towards ensuring the financial stability and integrity of their treasuries and enable members to continue the important work they do for the benefit of purebred dogs. Sincerely,   Ron Menaker Chairman

Highlights from the November 2006

meeting of the AKC Board of Directors

° The AKC Inspections Program has been enhanced and the following procedure adopted:

The AKC Kennel Inspections Program will achieve broader coverage and prevent breeders from falling through the cracks by adopting a risk-based system. This system would ensure that anyone whose breeding reached threshold numbers would be inspected even if their numbers dropped below the minimums in some years; it would require annual inspections of all breeders of 25+ litters and all distributors annually; 18 months inspections of 7+ breeders; and the policy would include a number of random inspections.
 

° Effective January 1, 2007, the individual dog registration fee is being increased to $20. This action offsets inflation, standard operating cost increases and takes into consideration recent registration enhancements, including online services and other added-value features. AKC registration fees have historically been raised every few years to account for these factors, with the last increase occurring in 2001. There is no change in the litter registration fee. For more information visit: http://www.akc.org/contact/
answer_center/faq_dogreg_fee_increase.cfm
 

° The Board approved a non-regular International Class in Obedience, effective January 1, 2008. The intent is to enable American Dogs to better prepare for international competition.
 

° Obedience jump heights are to be lowered to 3/4 the height at the withers for Sussex Spaniels and for Kuvaszok, effective January 1, 2007.
 

° A number of amendments were made to the Spaniel Hunting Test Regulations, effective February 1, 2007. The details are included in the minutes of the November meeting.
 

° Effective January 1, 2007, Kerry Blue Terriers, Pyrenean Shepherds, Norwegian Buhunds, and Swedish Vallhunds, will be eligible to participate fully in AKC Herding Events.

The following Delegates were approved:

° Wayne Harmon, Minneapolis, MN, to represent Cambridge Minnesota Kennel Club

° Sharon Jolly, El Paso, TX, to represent Rio Grande Obedience Dog Club

° Judy R. Melear, Fisherville, KY, to represent Louisville Kennel Club

° Barbara L. Norton, San Jose, CA, to represent Santa Clara Dog Training Club

° Scott Olund, San Raphael, CA, to represent Poodle Club of America

° Marile A. Waterstraat, Macedon, NY, to represent Nova Scotia Duck Tolling Retriever Club (USA)

AKC JUDGING CONFLICT OF INTEREST POLICY

Here is the actual policy that has generated so much debate:
"The American Kennel Club ® Board of Directors has adopted a new Judging Conflict of Interest Policy, effective January 1, 2007. AKC ® believes that it has the best judges in the world and expends millions of dollars a year to administer its judging approval system to ensure that quality remains high.

“AKC judging approval confers a certain status on an individual and with such status comes an enormous responsibility to both AKC and the Sport as governed by AKC,” said President and CEO Dennis B. Sprung.

The policy states, with some notable exceptions, that AKC approved judges should be focused on judging and supporting AKC events. Approved judges should not have a significant interest in another registry that is in direct conflict with AKC or be judging for another event-giving organization to the possible detriment of events held by AKC member and licensed clubs.

The complete policy is as follows.  Bolding has added for added for emphasis.

JUDGING CONFLICT OF INTEREST POLICY

No AKC judge may have a significant interest in a dog registry or dog event-giving organization deemed by the AKC Board to be in competition with the American Kennel Club. Significant interest would include, but not be limited to ownership of, employment by, a directorship in, and holding office in.

Any AKC-approved judge, who shall judge a purebred dog event in the U.S. not in accordance with the rules of AKC, which apply to such purebred dog events without the express permission of the AKC, may be disciplined even to the extent of having his or her AKC judging approval revoked.

An AKC-approved judge may judge breeds that are not AKC registrable and/or that they have not been approved for by AKC at non-AKC events. The AKC Board has also given permission for the judging of certain other events based upon the following criteria:
1. AKC has no comparable events in place.
2. While AKC has a program in place, AKC judges have officiated at events under the aegis of the other organization for years before the AKC program was initiated.
3. The type of event is not or would not be perceived as being contrary to the best interest of AKC and the sport of purebred dogs.
4. The event is a breed or type of breed-specific performance activity.

No AKC approval is needed to judge versatility or performance activities developed by AKC Parent Clubs and sponsored by such clubs.

Events held by the following organizations meet the above criteria, and AKC-approved judges may continue to judge them:

• American Sighthound Field Association Coursing Events
• American Working Terrier Association Earthdog Events
• American Herding Breed Association Events
• North American Versatility Dog Association Pointing Breed Hunting Tests
• American Field Pointing Breed Field Trials
• United Kennel Club Coonhound Events
• Professional Kennel Club Coonhound Events
• Any of the various organizations sponsoring Agility Trials

Other activities may be added to this list at the discretion of the AKC Board.

......  end of quotation 

____________________ Handy links:

Senior Conf. Judges Assoc. Letter to the AKC Board April 2006
Individual Rights or AKC's Right to Change The Rules in Mid-Game?

Senior Conf. Judges Assoc. Letter To Members
No Judges' Associations Were Contacted, SCJA Reacts, Seeks Input

Conflict Policy Prohibits Learning New Breeds May 2006
Where Are Judges To Learn About Plott Hounds and Icelandic Dogs?

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