RECEIVABLES

Short-term receivables consist of the following:



(in 000s)
As of	July 31, 2013			July 31, 2012			April 30, 2013
Loans to franchisees	$	64,041		$	60,459		$	65,413
Receivables for tax preparation and related fees	37,547			35,194			49,356
Canadian CashBack receivables	2,412			6,601			47,658
Emerald Advance lines of credit	22,649			24,215			23,218
Royalties from franchisees	4,070			2,096			10,722
Credit cards	7,309			—			7,733
Other	35,887			31,269			53,134
	173,915			159,834			257,234
Allowance for doubtful accounts	(52,606		)	(43,477		)	(50,399		)
	$	121,309		$	116,357		$	206,835

The short-term portion of Emerald Advance lines of credit (EAs), loans made to franchisees, CashBack balances and credit card balances is included in receivables, while the long-term portion is included in other assets in the consolidated balance sheets. These amounts are as follows:



(in 000s)
	EAs		Loans to Franchisees		CashBack		Credit Cards
As of July 31, 2013:
Short-term	$	22,649	$	64,041	$	2,412	$	7,309
Long-term	6,906		106,119		—		15,446
	$	29,555	$	170,160	$	2,412	$	22,755
As of July 31, 2012:
Short-term	$	24,215	$	60,459	$	6,601	$	—
Long-term	11,689		112,810		—		—
	$	35,904	$	173,269	$	6,601	$	—
As of April 30, 2013:
Short-term	$	23,218	$	65,413	$	47,658	$	7,733
Long-term	9,819		103,047		—		15,538
	$	33,037	$	168,460	$	47,658	$	23,271

EAs - We review the credit quality of our EA receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of July 31, 2013, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2013	$	8,657
2012	1,177
2011	2,083
2010 and prior	6,297
Revolving loans	11,341
	$	29,555

As of July 31, 2013 and 2012 and April 30, 2013, $26.8 million, $30.3 million and $30.0 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively.

Loans to Franchisees - Loans made to franchisees as of July 31, 2013 and 2012 and April 30, 2013, consisted of $124.2 million, $129.3 million and $121.2 million, respectively, in term loans made primarily to finance the purchase of franchises and $46.0 million, $44.0 million and $47.3 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs.

As of July 31, 2013 and 2012 and April 30, 2013, loans with a principal amount of $2.5 million, $0.5 million and $0.1 million, respectively, were more than 30 days past due, however we had no loans to franchisees on non-accrual status.

Canadian CashBack Program - During the tax season our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency for a fee (the CashBack program). Refunds advanced under the CashBack program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. CashBack amounts are generally received within 60 days of filing the client's return. As of July 31, 2013 and 2012 and April 30, 2013, $0.8 million, $2.6 million and $1.8 million of CashBack balances were more than 60 days old, respectively.

Credit Cards - We utilize a four-tier underwriting approach at origination. Each of the four tiers, with Tier 4 representing the most risk, is comprised of a combination of FICO scores ranging from 521 to 680, generic and custom credit bureau based risk scores and client attributes. The criteria in the tiers are not subsequently updated. The population also includes certain clients which are “un-scorable.” Although we utilize the borrower's credit score for underwriting, we do not consider the credit score to be a primary measure of credit quality, since it tends to be a lagging indicator. Credit card receivable balances as of July 31, 2013, by credit tier, are as follows:



(in 000s)
Tier 1	$	5,127
Tier 2	9,532
Tier 3	2,815
Tier 4	5,281
	$	22,755

An aging of our credit card receivable balances as of July 31, 2013 is as follows :



(in 000s)
Current	$	13,740
Less than 30 days past due	1,778
30 - 59 days past due	1,262
60 - 89 days past due	1,312
90 days or more past due	4,663
	$	22,755

As of July 31, 2013 and April 30, 2013, a total of $1.1 million and $2.1 million in unamortized deferred fees and costs were capitalized related to our credit card balances, respectively.

Long-Term Note Receivable - We have a long-term note receivable in the amount of $54.0 million due from McGladrey & Pullen LLP (M&P) related to the sale of RSM McGladrey, Inc. (RSM) in November 2011. This note is unsecured and bears interest at a rate of 8.0%, with all principal and accrued interest due in May 2017. As of July 31, 2013, there is no allowance recorded related to this note. We continue to monitor publicly available information relevant to the financial condition of M&P to assess future collectibility. This note is included in other assets on the consolidated balance sheet, with a total of $61.6 million, $56.9 million and $60.4 million in principal and accrued interest recorded as of July 31, 2013 and 2012 and April 30, 2013, respectively.

Allowance for Doubtful Accounts - Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the three months ended July 31, 2013 and 2012 is as follows:



(in 000s)
	EAs		Loans to Franchisees		CashBack			Credit Cards			All Other			Total
Balance as of May 1, 2013	$	7,390	$	—	$	2,769		$	7,304		$	40,240		$	57,703
Provision	—		—		158			2,367			534			3,059
Charge-offs	—		—		(673		)	(2,523		)	(688		)	(3,884		)
Balance as of July 31, 2013	$	7,390	$	—	$	2,254		$	7,148		$	40,086		$	56,878

Balance as of May 1, 2012	$	6,200	$	—	$	2,279		$	—		$	36,110		$	44,589
Provision	—		—		225			—			72			297
Charge-offs	—		—		(972		)	—			(437		)	(1,409		)
Balance as of July 31, 2012	$	6,200	$	—	$	1,532		$	—		$	35,745		$	43,477

There were no changes to our methodology related to the calculation of our allowance for doubtful accounts during fiscal year 2014.