| Directly Related Links |
|
Auditors Report now missing BC gov't web site
|
|
|
|
|
|
|
|
|
|
Notes on the 2010 Olympics Auditors Report
Perry Cates |
| JANUARY 18, 2003
PAGE 1 - The A/G examined the process used to develop the bid book estimates. The actual costs numbers in the bb have not been examined. There has been no cost/benefit analysis initiated on any of the bid book numbers.
If Vancouver "wins" the bid, the bid corporation will dissolve, to be replaced by the Organizing Committee For The Olympics Games (OCOG).
|
| PAGE 2 - The Province is the sole guarantor of the games. British Columbians are on the hook for mistakes in costs, costs overruns, revenue shortfalls, exchange rates, world threat levels and implied healthy economic conditions for the next 7 years.
"Predicting costs, revenues and economic conditions seven years into the future is inherently difficult and imprecise" - A/G
"Achieving the financial results predicted by the bid corporation will need excellent management, effective marketing and a favourable economy" - A/G
Good luck.
|
| PAGE 3 - The Province's costs shown in this report do not include the $495 Million estimated expansion to the Vancouver Trade and Convention Centre. Note: this is the same venue that Bentall bailed on. They also do not include the rapid transit link from YVR to downtown.
"Obtaining the predicted economic impacts will require extensive tourism marketing" - A/G.
"the economic impact scenarios with the biggest payoffs will require an exemplary tourism marketing program both before and after the games for the whole of British Columbia, in addition to the games marketing planned for by the bid corporation.
Note: this will entail a 7 year coordinated effort, the costs of which are completely unknown. I find this completely surprising, as I was certain that the games would bring the tourism dollars, NOT the other way around. This is an 180 degree turn!!
The $139 Million contingency is completely unrealistic.
|
| PAGE 4 - "Even at the present time it appears much of the contingency allowance could be used up by inflation and unplanned costs" - A/G Note: All costs are in today's dollars and DO NOT provide for Future Value Costs to amortize construction, over runs, or any further contingencies.
The A/G pegs the estimated minimum costs at $2.892 Billion, NOT including the Trade & Convention Centre or the rapid transit line from YVR to downtown. These initial estimated minimum costs do not include any financing costs.
Note: Consider these games as a $6 Billion ++ cost to the taxpayer, once the financing is amortized, NOT including operations costs, the convention centre, the transit line, or the NEW marketing/tourism program.
|
| PAGE 6 - 7 - covered above |
|
|
|
