Under a Board approved initiative to provide additional targeted services to members and raise incremental revenues in a manner consistent with CRKN's strategic plan, CRKN has offered members the opportunity to participate in foreign exchange projects in each of the past four years. These projects are intended to give members additional options to protect their collections budgets by offsetting the risks of unfavorable FX movements.
Participants could choose to lock in a market exchange rate earlier or to bid for a better rate for their estimated commitment for several of CRKN's largest licenses. In return, participants paid a fee on the funds requested and booked under the provisions of the projects to offset the organizational resources required to offer the project. For the 201516 FY, members were also given the limited option to be invoiced in USD for two CRKN license agreements, under a similar fee structure.
In February, at the direction of the Finance & Audit Committee, CRKN released a discussion paper on foreign exchange and hosted two teleconferences describing CRKN's approach to foreign exchange. In addition to providing information to members, staff sought member input on ways in which CRKN might tailor its services to better meet member needs.
CRKN shared information on the optional 2016 foreign exchange project (including options for USD invoicing) for the Elsevier Science Direct, Wiley Blackwell and SpringerLink licenses.
In total, 22 members have committed to participate in the foreign exchange project, and an additional 7 members have asked to be invoiced in USD for the same licenses. As before, the timing of the project has been arranged to coincide with members' fiscal year ends the majority of which are March 31st or April 30th. In all cases, CRKN will not bill members until the start of their new fiscal year likely, no earlier than May 1st.