Advocis leaned heavily on its Century Initiative assets last year to keep its fund balances in positive territory.
In total, the association received $2.7 million from the contingency fund, according to the 2023 annual report, released on Thursday. While $700,000 of that amount isn’t repayable, the remaining $2 million is repayable with interest, the report said.
The Century Initiative, created in 2006 and funded with premium membership fees, was established to ensure the association’s capitalization.
Advocis faced a liquidity crisis over the past couple of years, with challenges such as increased operating costs and a post-pandemic drop in education demand. Expenses exceeded revenues by $2.7 million in 2022, and by $766,426 in 2023.
According to the 2023 annual report, the Century Initiative balance was $5.6 million at the start of the year and $3.3 million at year-end.
Advocis did not provide comment ahead of publication time that clarified the fund balances.
Contingencies to the 2023 financial statements are ongoing legal claims against the association that total $2.6 million. No provisions were made at year-end in the financial statements for these claims.