Financial Review as at June 30th, 2015
This financial review is based on the audited financial statements for the year ended June 30, 2015 and the comparative figures for the year ended June 30, 2014.
General operations are funded predominantly by revenues from licensing and assessment fees required by the Council Bylaws under RESA. The fees are collected in advance for a two year period 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, licensees 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 2015 are $5,924,834, an increase of $345,484 from fiscal 2014 of $5,579,350. Recognized licensing and assessment revenues are $5,444,116 for fiscal 2015, an increase of $251,342 from $5,192,774 in fiscal 2014. Recognized course revenues in fiscal 2015 are $263,250 and have increased by $74,450 from $188,800 in fiscal 2014. Recognized interest, education fund, and other revenue in fiscal 2015 is $217,468 and has increased $19,692 from $197,776 in fiscal 2014.
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 2015 by $523,199 to $6,528,497 from $6,005,298, the previous year. Administrative expenditures were lower by $93,654, investigation expenditures higher by $487,534, and other expenditures were higher by $129,319.
Administration expenditures decreased 3% over the previous year. Investigation expenditures increased 23% and other expenditures increased 30% in fiscal 2015.
Net Operating Deficit from Operations and Accumulated Net Assets
The net excess expenditures over revenue for the year were $603,663 compared to a deficit of $425,948 in fiscal 2014. This deficit resulted in a decrease in the unrestricted accumulated net assets of $633,493 from $3,783,338 in fiscal 2014 to $3,149,846 in fiscal 2015 and the Education Fund increased $29,829 from $199,437 in fiscal 2014 to $229,266 in fiscal 2015.
Net Current Assets (working capital)
Net current assets were $2,841,333 at June 30, 2015 compared to $2,272,271 at June 30, 2014.