The Vancouver Olympic Organizing Committee (VANOC) proudly released its first quarterly report claiming to be on budget and on schedule. Nothing to see here folks, everything is going according to plan. Dig a little deeper into the report, however, and VANOC's assurances ring hollow.

The reports starts off with an alarming disclaimer, "these statements are subject to a number of risks and uncertainties that may cause actual results to differ materially." Which risks and uncertainties According to VANOC, the biggest financial risk is its major funding partner-government-because they have yet to buck up and cover the construction costs overruns of $110 million. The report fails to include a back-up plan. And despite this $110 million hole in the budget, VANOC claims to be on budget and on schedule.

Another risk is the revenue levels from broadcast and sponsorships. The actual dollar amounts have yet to be negotiated and can substantially threaten the integrity of VANOC's financial plan.

The report fails to acknowledge inflation, security, staffing, administration and construction costs as risks to their plan. As noted above, the venue construction budget is already $110 million over, security costs are expected to double and administration and personnel costs are already ballooning.

The fact that VANOC choose not to lists these factors as risks should be causing alarm bells to ring. If the Organizing Committee fails to acknowledge the most obvious pressures on their budgets, it seems obvious that they have no plans to address them.

The closest the report comes to addressing its budget pressures is to note that "it may be necessary to increase its available credit facilities in order to finance future operations." Growing expenses to VANOC's operational budget include staffing, human resources and marketing. Since 2003, VANOC has spent over $51 million on communications, marketing and human resources.

As of April this year, VANOC recorded 207 full time employees (FTE). A cursory review of VANOC's website reveals over 20 new positions, including, most notably a manager of revenue! VANOC's plans to finish 2006, four years from the Games, with 30 per cent of its anticipated 1,300 work force to be hired and working. That translates to 390 full time employees. At a conservative salary and benefit estimate of $60,000 per person, per year, would be staffing expenses up to $23.4 million!

Other growing expenses include payments to the International Olympic Committee (IOC) and the Canadian Olympic Committee (COC). The first quarterly financial report notes that in the past nine months, VANOC paid the COC $12.5 million for marketing royalties and the IOC $2.7 million. Both committees also charged VANOC for travel costs of up to $600,000.

VANOC is expecting taxpayers to fork over another $110 million for venue construction but has failed to look at its own budget for savings. And taxpayers are in the dark as to whether they are getting value for their money because VANOC is exempt from Freedom of Information laws. Contracts and expenditure items are unavailable to the public. It's time the provincial government demand a better, more comprehensive and transparent budget from VANOC and suspend further funding until the conditions are satisfactorily met!