REEF Treasurer presents financial statements at AGM

REEF Treasurer presents financial statements at AGM

REEF's audited financial statements for 2016 were presented by Treasurer Paul Byrne at the recent AGM, outlining the achievement of a small surplus.

Financial statements

I have pleasure in presenting to REEF's audited financial statements for the year ended 31 December 2016.

2016 was financially a difficult year for REEF, but I'm pleased to report that despite this we were still able to achieve a small surplus of $2,842.

As a not-for-profit organisation, I'm extremely proud that REEF was able to return this modest operating surplus while continuing to provide an extensive suite of professional products and services as part of the membership subscription. For less than $14 per week, I believe that REEF membership still represents outstanding value for money.

As we have experienced over the past eight or so years, membership retention remains REEf’s greatest challenge. Income from membership subscriptions still represents over 96 per cent of REEF’s income and so remains the 'lifeblood' for our ongoing viability. I'm therefore delighted to report that we finished 2016 with 1,479 members, which represented a small increase in membership from 2015.

In summary, the notable financial highlights of the year included:

  • Membership increased to 1,479 from 1,473
  • Operating costs increased by 9.6 per cent  
  • Income from membership grew by 2.2 per cent
  • Total income exceeded the 2015 results by just under 1 per cent
  • The net asset position of REEF improved by 22 per cent to just over $1.7 million.

The increase in operating costs and the increase in the net asset position are highlights worthy of some further clarification.

In early 2016, REEF underwent significant personnel changes. These changes included the appointment of a new Chief Executive Officer, the creation of the new position of Membership Services Director and the appointment of two casual industrial support officers. While necessary, and in some respects unavoidable changes to the personnel structure at REEF, they combined to significantly impact on our overall 2016 operating costs.

As members would be aware, in the latter half of 2016 REEF was a leading participant in the statutory four-year review of the Real Estate Industry Award 2010. Throughout these proceedings, REEF felt that it was crucially important to engage the services of a specialist industrial law firm and legal counsel to comprehensively represent and protect the interests of our members. The subsequent and considerable legal expenses associated with this review therefore also impacted on the 2016 operating costs.

In 2005, the Committee of Management decided that to ensure REEF’s longevity, it should cease renting premises and acquire our own property. The office suite at 97-99 Bathurst Street was ultimately chosen to become REEF’s new home and purchased using a combination of cash reserves and debt. It's therefore extremely pleasing to report that some 11 years later the loan has long been repaid and the office suite has significantly increased in value. The strong increase in the net asset position of REEF in 2016 was therefore primarily due to the re-valuation of the office suite and the reflecting of this change on the balance sheet.

It's my pleasure to present this report and the accompanying financial statements to members which are also available by clicking here >>>

Paul Byrne

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About REEF

The Real Estate Employers' Federation is the real estate industry’s leading not-for-profit employer and workplace relations advisory association. It has more than 1600 members and subscribers across Australia.

Each year, REEF receives more than 20,000 calls from real estate employers needing help and guidance on matters affecting the employment relationship.

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  •  Level 6, 99 Bathurst Street,
     Sydney  NSW   2000

  •   1300 616 170

  •   02 9261 2622