Second quarter financial statements of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) released last Friday 14 reflects operational expenses are in line with business plan projections.“Financially, we’re in a positive position with a cash balance of $56.5 million and a sound contingency on the capital construction side,” said VANOC Chief Financial Officer John McLaughlin.
VANOC’s net deferred operating expenses in the current quarter were $57.3 million as compared to $6.4 million for the period ending October 31, 2007. Excluding the impact of unrealized foreign exchange losses and gains, deferred operating expenses were $43.1 million for the quarter ended January 31, 2008, and $25.7 million for the quarter ended October 31, 2007. The $17.4 million increase over the preceding quarter is the result of higher spending across all divisions as activity increases organization-wide in the move from a planning phase to an operational phase.
VANOC’s net deferred operating revenue from sponsorship and other sources for the quarter ending January 31, 2008 was $43.1 million, as compared to $6.7 million in the last quarter.
Domestic sponsorship revenue increased significantly over the prior quarter, from $4.3 million to $43 million, as several large cash milestone payments were received, and $4.1 million in domestic value-in-kind (VIK) revenue was recorded during the quarter. VANOC has now entered into domestic sponsorship agreements worth approximately $709 million in total, or over 90 per cent of the overall target of $760 million. VANOC’s total venue development expenditures for the quarter were $38.4 million, as compared to $63.3 million in the previous quarter, and now total $466.3 million. VANOC’s venue development central contingency remains adequate to protect against the remaining $125.5 million in the venue construction budget.
The venue construction timeline ensures venue readiness through Sport Events and other training and competition in advance of the Games. In particular, VANOC completed its field-of-play testing at the first official VANOC Sport Event for alpine skiing – the recently completed FIS Alpine World Cup, at Whistler Creekside.
VANOC’s workforce continues to grow substantially as the 2010 Winter Games draw near – increasing by 87 during the reporting period, to reach a total of 590 full-time staff. In accordance with Canadian generally accepted accounting principles, all operating revenues and expenses are deferred prior to Games time. VANOC’s next quarterly report, covering the three months ending April 30, 2008, will be available in June 2008.