ANNUAL REPORT 2017
REAL ESTATE BOARD OF GREATER VANCOUVER
Mary Galaugher, FCPA, FCGA
Chief Financial Officer
RESULTS OF OPERATIONS: 2017 compared to 2016
Total revenue in 2017 was $26.6 million compared to $25.4 million in 2016, an overall increase of 5%.
Total expense in 2017 was $24.7 million compared $23.1 million in 2016, an overall increase of 7%.
Active membership has increased by a net of 741 members since January 1, 2017, from a membership of 13,443 to 14,184 at the end of 2017. Corporate membership has increased year over year by 19 member offices/branches, from 571 at January 1, 2017 to 590 corporate members at December 31, 2017.
Membership revenues have increased 7% over last year. This is primarily attributed to new REALTORS® joining the Board during fiscal 2017.
Total unit sales on MLS® for 2017 were 37,456 compared to 41,752 for 2016, declining by 10%. Total listings on MLS® for 2017 were 58,574 compared to 61,963 for 2016, declining by 5%.
Listing fees, which include the end fee charges, the monthly access fees and listing processing fees has declined by 1% over 2016.
Technology dues in 2017 were 6% higher than 2016. This is consistent with an increased membership base.
Education fees increased 11% in 2017 over 2016. This is consistent with an increasing membership base since 2009 and a greater number of members participating in our PDP offerings.
Provincial and national association dues have risen by 7% over 2016. This increase in costs is consistent with an increasing membership base.
MLXchange user fees have increased over 2017. This is largely due to the addition of MLS® data and an increasing membership base.
Professional and consulting fees have increased significantly over 2016. This category of expense is largely dependent on the projects that the Real Estate Board is involved in during the year. In 2017, key projects focused on changes to BCREA and CREA’s Three-Way Agreement. We also sought legal advice related to the Toronto Real Estate Board’s legal dispute with the Competition Bureau and contract negotiations for our new Customer Relationship Management system.
Salaries and Benefits have increased 6% over 2016. At December 31, 2017, the staff complement has changed from 85 full-time and three contract employees to 85 full-time and six contract employees. This is consistent with our increase in membership over the past three years.
The costs of providing direct education expense (instructors and course materials) has declined over 2016. This is consistent with REBGV creating courses specific to our membership, having them PDP accredited through BCREA, and, as a result, not having to pay BCREA learner fees for courses we developed in-house.
Other MLS® processing and administration fees have increased by 11% over last year.
Statement of financial position
As at December 31, 2017, our cash position was $9.4 million in cash and investments. During the year, we utilized $958,000 for the purchase of capital assets. The Board of Directors authorized cash reserves in 2017 to cover the future costs of: a reserve for the replacement of our membership management systems ($2.2 million), a building capital fund ($94K), funding for our 100-year anniversary ($100K) and funding for future MLS® technology enhancements ($500K) for total reserves of $2.9 million at December 31, 2017. Net Assets is comprised of unappropriated net assets ($6.4), appropriated net assets of ($2.9) and equity in capital assets ($3.6) for total net assets of $12.9 million.
SELECTED FINANCIAL INFORMATION FOR THE 5 YEARS ENDING DECEMBER 31,
Note 1 Realtylink in Print service was discontinued 12/31/13.
Note 2 Non-recurring items are as follows:
2013 – Write off CRM costs
2016 – ROBC proposed amalgamation costs
Copies of our Audited Financial Statements are available by contacting Vickie Hankins at (604) 730-3041.
2017 FINANCE AND ADMIN COSTS (allocated) $7.8 M - (2016 $7.8 M)
2017 FULLY ALLOCATED COST OF MLS® SERVICES $10.5 M - (2016 $10.5 M)
2017 FULLY ALLOCATED COST OF ASSOCIATION SERVICES $15 M - (2016 $14.5 M)