7/ Deferred revenue (continued) B/ INSURANCE PROGRAM FUNDS Deferred revenue represents insurance payments received that relate to the next fiscal year. The movements in the deferred revenue balance during the year were: Insurance Premium Fund Premium Stability Fund Insurance Administration Fund Total $ $ $ $ Balance, December 31, 2016 18,888,645 621,337 752,066 20,262,048 Amounts received in 2017 29,387,642 1,312,792 1,417,959 32,118,393 Less amounts recognized as revenue in 2017 28,999,512 1,068,487 1,236,680 31,304,679 Balance, December 31, 2017, and amounts to be recognized as revenue in 2018 19,276,775 865,642 933,345 21,075,762 8/ Education revenues Education revenues include fees charged for Mandatory Continuing Education and amounts received under the Education Services Agreement. An Education Services Agreement between the Registrar, appointed under REBBA 2002, RECO and OREA became effective August 1, 2008. In this agreement, the Registrar designated OREA as the sole fiduciary designate to provide the services, functions and responsibilities described in the agreement for a five-year period. The agreement was extended to July 31, 2018. On January 11, 2016, the agreement was amended to allow for an end date of December 31, 2020, and included changes in the fee structure as follows: • For the period commencing January 1, 2016, to March 31, 2016, OREA agreed to pay $50,000 on February 1, 2016, and 5 per cent per annum of all course revenues, education materials and other revenues of the OREA Real Estate College up to March 31, 2016, to be paid quarterly. • For the period commencing April 1, 2016, OREA agreed to pay $42 per enrollment, minus reimbursements, for student contracts for vocational programs signed on or after April 1, 2016, to be paid quarterly, and $32 per enrollment, minus reimbursements, for student contracts for vocational programs signed prior to April 1, 2016, to be paid quarterly. 9/ Commitments In addition to the capital lease obligation described in note 3, RECO has minimum operating lease commitments under leases for premises and equipment. The future estimated payments are as follows: $ 2018 751,847 2019 734,261 2020 734,261 2021 734,261 2022 183,565 3,138,195 RECO is also committed to make insurance premium payments of $901,698. These payments are due on August 31, 2018. 10/ Funds held in trust RECO holds in trust consumer deposits transferred by brokers as dormant trust funds. As at December 31, 2017, these deposits amounted to $4,697,841 (2016: $5,211,283). These amounts have not been included in the financial statements as RECO does not control or benefit from these funds. 60/ RECO 2017 ANNUAL REPORT/INDEPENDENT AUDITORS' REPORT