Financial Review as at June 30th, 2014
This financial review is based on the audited financial statements for the year ended June 30, 2014 and the comparative figures for the year ended June 30, 2013.
General operations are funded predominantly by revenues from licensing and assessment fees required under the Council Bylaws under the Real Estate Services Act. The fees collected are for a two year period in advance and are recognized as income in the period received. Deferred revenue is recognized on the effective date of the licence. Other sources of revenue include application fees, course revenue, net interest income, and discipline hearing cost recoveries.
All receipts for discipline penalties may only be expended by the Council for the purpose of education of the public, licensee and other participants in the real estate industry in BC about the operation and regulation of the industry and issues related to real estate and real estate services. These funds are held in trust and segregated from general operating funds.
Operations-General and Education Funds
Total net revenues in fiscal 2014 are $5,579,350, an increase of $179,120 from fiscal 2013 of $5,400,230. Recognized licensing and assessment revenues are $5,192,774 for fiscal 2014, an increase by $177,636 from $5,015,138 in fiscal 2013. Recognized course revenues in fiscal 2014 are $188,800 and have increased by $2,700 from $191,500 in fiscal 2013. Recognized interest, education fund, and other revenue in fiscal 2014 is $197,776 and have increased $4,184 from $193,592 in fiscal 2013.
Expenditures include general administration and facilities, Council and committee honorariums, per diems, meeting costs, and other corporate expenses, such as communications activities, election costs, and grants and endowments. Total expenditures increased in fiscal 2014 by $281,577 to $6,005,298 from $5,723,721, the previous year. Administrative expenditures were higher by $172,541, investigation expenditures higher by $205,078, and other expenditures were lower by $96,042.
Administration expenditures increased 5% respectively over the previous year. Investigation expenditures increased 11% and other expenditures decreased 18% in fiscal 2014.
Net Operating Deficit from Operations and Accumulated Net Assets
The net excess expenditures over revenue for the year was $425,948 compared to a deficit of $323,491 in fiscal 2013. This general fund deficit resulted in a decrease in the unrestricted accumulated net assets of $456,445 from $4,239,783 in fiscal 2013 to $3,783,338 in fiscal 2014 and the Education Fund increased $30,497 from $168,940 in fiscal 2013 to $199,437 in fiscal 2014.
Net Current Assets (working capital)
Net current assets were $2,272,270 at June 30, 2014 compared to $1,914,956 at June 30, 2013.