The FPA has reported an after-tax deficit of more than $500,000 for the year ending 30 June 2011.
The advice association reported an after-tax loss of $542,670, reducing its accumulated member funds to $5.8 million from $6.3 million a year earlier, its annual report said.
The FPA experienced a drop of $474,716, or 4 per cent, in total revenues from operating activities over the year to $10.8 million. The reduction in revenue was attributed to a number of factors, including lower Certified Financial Planning (CFP) enrollments and a significant loss from principal members due to the association’s restructure.
The FPA recorded a decrease of $72,171, or 15 per cent, in CFP certification revenue from the previous year, the report found.
The association’s conference and seminar revenues fell $98,661, or 6 per cent, over the year, and CFP enrollment revenues slid $65,920, or 8 per cent.
The FPA also recorded a decrease of $459,626 in contributions made by its principal members to its Value of Advice campaign and sponsorship from previous years due to the association no longer operating the campaign.
The association’s revenue from continuing education shrank $32, 758, or 6 per cent, and revenue from specialist programs decreased $8,401, or 35 per cent.
The cost of the FPA’s restructure also set the association back more than $800,000.
The FPA said the losses have been partly offset by an increase of $103,361, or 22 per cent, in interest income and growth of $190,194, or 116 per cent, in income from royalties from Hong Kong.
“We had to make some tough decisions, such as closing our Melbourne office, and we drew from our reserves to invest in our profession’s future [with the consent of members],” FPA chief executive Mark Rantall said.
“So whilst 2010/2011 saw a surplus from operations, the extraordinary expenses incurred produced an overall loss.
“I should point out that our financial position remains very strong, with more than $5.8 million in member funds.”
The FPA has a total of 11,283 members, the report said.
