POSTED: Monday December 15th 2008
FOR IMMEDIATE RELEASE

VANOC remains on track financially as it ends 2008

Quarterly report released

     VANCOUVER, Dec. 15 - The Vancouver Organizing Committee for the
2010 Olympic and Paralympic Winter Games (VANOC) today released its report for
the first quarter of the fiscal year, which includes a management discussion
and analysis, and interim financial statements for the period ending October
31, 2008. The report also includes a look ahead to initiatives planned for
2009. VANOC\'s quarterly report is available at www.vancouver2010.com.
     \"In light of the world\'s current turbulent economic outlook, we are
fortunate to remain in a sound financial position as 2008 comes to an end,\"
said John McLaughlin, VANOC\'s chief financial officer. \"We have secured the
majority of the funding commitments we require and our venue construction is
largely finished. Looking ahead we must continue to remain prudent
financially, and this discipline will be reflected in our revised budget to be
released in early 2009.\"
     The report highlights operational expenditures predominantly in the areas
of technology and sport. Deferred operating expenses exceeded deferred
operating revenues by $65.2 million for the quarter. As is typical in the life
cycle of an Olympic Games Organizing Committee, the balance of funds in the
operating budget will shift between an excess and a deficiency throughout the
projects lifespan. The fluctuation is attributed to the timing of the receipt
of revenues and the payment of expenses, as it is dependent on specific
contracts and does not follow a regular business cycle.
     \"Although operating expenditures exceed revenues for the quarter as we
expected, VANOC remains on track to finish the Games with a balanced budget.
The next quarter will show high revenues from payments from the International
Olympic Committee (IOC), sponsors and ticket sales,\" continued McLaughlin.
     The Organizing Committee\'s net deferred operating revenue from
sponsorship and other sources for the quarter was $33.9 million. On a
project-to-date basis, deferred operating revenues were $370.6 million and
were comprised mostly of sponsorship revenues and contributions from the IOC.
This represents approximately 23 per cent of budgeted operating revenues for
the project.
     VANOC\'s net deferred operating expenses in the quarter were $99.1
million. Excluding the impact of net foreign exchange loss, deferred operating
expenses were $78 million. On a project-to-date basis, deferred operating
expenditures totalled $463.2 million, or about 28 per cent of the project
budget. In accordance with Canadian generally accepted accounting principles,
all revenues and expenses are deferred prior to Games time.
     VANOC\'s total venue construction expenditures for the quarter were $21
million. Project-to-date venue construction expenditures now total $515.5
million, which represents 88 per cent of the venue construction budget. All
venues are substantially complete, and as such, development activities in this
quarter largely focused on the continuation of homologation works for the
outdoor venues. Work is also progressing on the Whistler Athletes\' Centre, as
well as on indoor competition venues, which will be substantially complete
this calendar year.
     The next financial report will be released in March 2009 and will include
interim financial statements for the second quarter of fiscal 2009 ended
January 31, 2009. The Organizing Committee also confirmed that an updated
budget is being finalized and will be released on schedule in early 2009.

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Keywords · Vanoc · Winter Games · Vancouver 2010

Name: Jason Macnaughton
Organization: Vancouver 2010
Email:
Phone: +1.(778) 328-6734
URL: http://www.vancouver2010.com/en/-/32678/q0c15c/index.html

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