Annual Report 2024-25

The Association of Professional Engineers and Geoscientists of the Province of British Columbia Notes to Non-consolidated Financial Statements June 30, 2025

Appropriated funds

The Appropriated funds are internally restricted funds that comprise the property, equipment and systems replacement fund, the legal and insurance fund and the new Advocacy body fund.

The “Property, equipment and systems replacement fund” represents an appropriation by the Board, which serves the long-term objective of setting aside funds to replace and improve property, equipment and systems when required. Any repairs, maintenance and improvement associated with the building are deducted from this fund. The Board reviews the method and the amount appropriated to ensure that the appropriation provides a reasonable basis for property, equipment and systems replacement. All repairs, maintenance and improvement deducted from the fund and property, equipment and systems acquisitions are approved by the Board as part of the annual budgeting process. The “Legal and insurance fund” relates to an appropriation by the Board to set up a legal and insurance reserve to allow for extraordinary cases and situations over and above annual expectations. This allows the Organization to be prepared for future contingencies. The amount appropriated for legal and insurance is reviewed by the Board annually.

The Board approved the creation of an “Advocacy body fund” in fiscal year 2023. The purpose of this reserve is to fund the formation of an independent advocacy body for the professions.

Revenue recognition and deferred fees

The Organization follows the deferral method of accounting for contributions. Restricted contributions are deferred and recorded as revenue in the period in which the expense has been incurred. Annual fees and other revenues that are received, but for which services have not yet been performed, are reported as deferred revenue. Registration and other fees are billed and received in advance on a calendar-year basis. Accordingly, a portion of these fees received prior to June 30, 2025, has been deferred for financial reporting purposes and will be recognized as revenue when services are rendered.

All other revenue is recognized when earned if the amount to be received can be reasonably estimated and collectibility is reasonably assured.

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