the sydney 2000 olympic and paralympic games - Australian Sports ...

APPENDIX 1 : OVERVIEW OF FINANCIAL STRUCTURE AND CONTROL
Inclusive in Sydney’s successful Bid for the 2000 Games was the NSW Government's commitment to
underwrite the Games and provide essential support services. This commitment necessitated close NSW
Government involvement in the financial management of Olympic and other Government agencies,
including the management of Games-time risks and the wind up process.
The following initiatives represent key elements of Sydney's finance and control structure:
• SOCOG and SPOC Finance Structure
• Other Olympic and Government agencies
• Olympic Committee of Cabinet
• Games-time Contingency Management
• Games Wind Up process
These processes ensured that the NSW Government closely managed Games finances.
SOCOG and SPOC Finance Structure
The Sydney Organising Committee for the Olympic Games (SOCOG) was established as a wholly State
owned corporation, which had accountability to the Parliament of NSW. The Minister for the Olympics was
appointed President of SOCOG shortly after the 1996 Atlanta Games thus enhancing the levels of public
accountability and financial control in relation to SOCOG.
SOCOG’s legislation provided for the establishment of a Board of Directors which had the power to form
committees as deemed necessary. A Finance Sub-Committee of the Board was established comprising
four members of the Board and OCA's Executive Director Finance. A separate Audit Sub-Committee was
also formed. The Auditor-General of NSW was the Statutory auditor of SOCOG and Ernst and Young
were appointed as contract auditors to the Auditor-General. SOCOG also appointed Arthur Andersen as
its internal auditor.
SOCOG’s program budgets were established through a structured bidding process. The Finance
Committee recommended proposed program budgets to the SOCOG Board, who in turn recommended
the consolidated budget to the Minister for the Olympics for approval.
The SOCOG Act required SOCOG budgets to be approved by the Minister for the Olympics, subject to the
Treasurer of NSW’s concurrence. SOCOG could not borrow without the Treasurer's approval under
separate State legislation. The Treasurer and Minister imposed various conditions in respect of SOCOG's
financial controls with the approval of each budget revision.
A similar finance and control structure was established to manage SPOC and the Paralympic Games.
Other Olympic and Government Agencies
The Global Olympic Budget was established by OCA to identify and manage NSW Government Games
expenditure. Key NSW Government agencies provided services such as transport, security, health,
emergency services, waterways management and provision of Government owned and operated facilities
and venues.
OCA sought Government endorsement of a definition of Olympic costs and the establishment of criteria
against which funding requests could be assessed.
Agencies were required to lodge strategic plans for delivering necessary Games services. These plans
were to be accompanied by a Statement of Resource Requirements and Budgets. Funding requirements
were the subject of review by a special working group which made recommendations to a Senior Executive
Committee which in turn made recommendations for funding approval to Budget Committee. Specific
Olympic funding was allocated to allow agencies to meet their Games commitments. Once funding was
allocated it was included in the Global Olympic Budget. A Memorandum of Understanding between
SOCOG, OCA and other agencies locked in service level requirements.