Year ended December 31, 2017, with comparative information for 2016 Operations Fund Insurance Program Fund Total 2017 2016 2017 2016 2017 2016 Revenue: $ $ $ $ $ $ Registration fees (note 7(a)) 14,578,586 13,857,474 - - 14,578,586 13,857,474 Application review fees 1,864,020 - - - 1,864,020 - Insurance premium fees (note 7(b)) - - 28,999,512 26,782,344 28,999,512 26,782,344 Premium stability fees (note 7(b)) - - 1,068,487 912,905 1,068,487 912,905 Insurance administration fees (note 7(b)) - - 1,236,680 1,044,877 1,236,680 1,044,877 Education (note 8) 4,339,160 3,624,275 - - 4,339,160 3,624,275 Other income 1,456,706 1,411,284 160,425 120,293 1,617,131 1,531,577 22,238,472 18,893,033 31,465,104 28,860,419 53,703,576 47,753,452 Expenses and expenditures: Council expenditures (Schedules 1 and 2) 20,193,872 17,630,569 30,137,960 27,887,641 50,331,832 45,518,210 Operating income before interest income 2,044,600 1,262,464 1,327,144 972,778 3,371,744 2,235,242 Interest income 296,232 255,006 332,406 304,641 628,638 559,647 Net income 2,340,832 1,517,470 1,659,550 1,277,419 4,000,382 2,794,889 See accompanying notes to financial statements. Year ended December 31, 2017, with comparative information for 2016 2017 2016 Investment in capital assets and intangible assets Restricted insurance program fund balances Internally restricted operating reserve Unrestricted Total Total $ $ $ $ $ $ (Schedule 2) Balance, beginning of year 4,693,937 19,704,148 2,000,000 5,620,968 32,019,053 29,224,164 Net income - 1,659,550 - 2,340,832 4,000,382 2,794,889 Interfund transfer - - 4,000,000 (4,000,000) - Purchase of capital and intangible assets 1,233,451 - - (1,233,451) - - Amortization of capital and intangible assets (992,770) - - 992,770 - - Capital equipment lease payments 13,841 - - (13,841) - - Balance, end of year 4,948,459 21,363,698 6,000,000 3,707,278 36,019,435 32,019,053 See accompanying notes to financial statements. Real Estate Council of Ontario Statement of Operations Real Estate Council of Ontario Statement of Changes in Fund Balances INDEPENDENT AUDITORS' REPORT/RECO 2017 ANNUAL REPORT /55