In FP Canada’s 2022–23 fiscal year, revenue from certification fees was up while revenue from exam fees was down — all while expenses rose.

Revenue from certification fees increased to $10.3 million from $8.6 million, representing 70% of total revenue, FP Canada’s recently released financial summary said, versus about 55% in the previous year.

In contrast, the certification body earned less from its professional education program and exams because the offerings had lower registrations compared to the prior year, the summary said. Revenue from professional education program fees was $2.0 million, compared with $3.2 million in 2022; exam fees generated $1.6 million, compared with $2.7 million the previous year.

Fiscal 2022–23 was the first year in which a two-year post-secondary diploma became a prerequisite for the qualified associate financial planner (QAFP) certification, and a bachelor’s degree became a prerequisite for the CFP certification. Growth in exam writers rose ahead of the QAFP replacing FPSC Level 1.

Expenses in 2022–23 increased to $15.5 million from $13.2 million the year before as FP Canada invested in its education programs and technology. “These investments will support future organizational growth and sustainability,” the summary said.

All told, expenses exceeded revenue by $956,000. That compared to excess revenue of $2.3 million in 2022 and $2.4 million in 2021. Cash flow from operations was negative $727,035 compared to +$2.4 million in 2022 and +$3.0 million in 2021.

Net assets of $7.3 million compared to $8.3 million in 2022 and $6.0 million in 2021.

Available reserves were $6.7 million, compared to $7.6 million in 2022 and $5.2 million in 2021, and accounted for five months of operating expenses, the summary said.

“FP Canada is in a financially sound position and has a solid strategy to continue to diversify revenue and maintain an appropriate level of reserves available for operations,” it said.

One of those revenue diversifiers is the technical education for its programs, which FP Canada began providing this year, after it took its professional education in-house in 2019.