Olympic Financial Summary Released

By 250 News

Responding to calls for a more transparent system, VANOC has released its first quarterly financial report.

The CEO for the 2010 Olympics, John Furlong, says the report shows the project is moving forward on budget “The financial statements released today demonstrate the tremendous progress we’ve made against those challenges, and our confidence that the venue program will be delivered within the $580 million venue development budget announced this past February.”

Here are some of the highlights:

-VANOC’s operating expenses for the quarter ending April 30, 2006 were $25.1 million and now total $78.8 million since the project started.

-Revenue from sponsorship and other sources for the quarter ending April 30, 2006 was $8.5 million and now totals $43.1 million since project inception.

-VANOC’s venue development expenditures for the quarter ending April 30, 2006 were $6.9 million and now total $101.9 since project inception.

The budget to build the venues and the necessary infrastructure was initially $470 million that has since been revised to $580 million.  VANOC says the increase is a result of the difference between the original bid which quoted 2002 dollars and the value of dollars in 2006.  Both the Federal and Provincial governments have been asked share that $110 million dollar difference.    VANOC still hasn’t heard if the two levels of government will come across with those dollars.

On the upside, Furlong says the 22% increase is far below the 40-50% increase in costs being experienced in other construction areas.

The report also notes some of the avenues taken by VANOC to reduce costs.  It cites the change in ice size for hockey, redesigning the Nordic trail system, and moving the broadcast center from Richmond to  Vancouver as measures that have been taken to  save dollars.

The next financial summary will be released to the public this fall.

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