More Transparent Bookkeeping Rules For 2016 Bid Cities - IOC

The seven cities bidding to host the 2016 Summer Olympic Games have been told by the International Olympic Committee (IOC) to provide more accurate budgets of costs in their bids. The cities were told at a seminar in Lausanne this week that the final cost estimates should be in 2016 prices.

This Is London reports the IOC has adopted “more transparent” bookkeeping rules following recommendations from London 2012 and Vancouver 2010 organizers whose budgets have come under pressure due to rising property venues.

When they submit their candidate files next year the bid cities will have to estimate costs in local currency and U.S. dollars in 2009 and 2016 prices. The formula adopted to calculate seven years’ inflation will be up to each city but will be subject for approval by the IOC Finance Department.

An IOC spokeswoman told the Evening Standard: “although it is very difficult to make precise forecasts seven years out, we feel this will reduce the chance of surprises occurring. This is a more transparent system”.

Meanwhile the IOC reports a key message emanating from many of the presentations at the seminar this week has been the importance of building the right relationships early on with all of the relevant parties that will be involved in helping to organize the Games.

It was made clear by the speakers that the organization of the modern Olympic Games is very much a team effort and unless all levels of government, commercial partners, public services, community groups, local populations and sports authorities are on board the successful organization of the event would be affected and bidding for the Games would be very difficult.

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