The revenues were basically composed of part of the income of the International Olympic Committee (IOC) from the market it developed and the earnings from TV broadcasts that went to the host city as agreed upon. That part accounted for 40% of the total income of the BOCOG. Then, there was the income amounting to RMB 9.
87 billion from the market development by the BOCOG under the authorization of the IOC, which included various levels of sponsorship contributions from partners, sponsors, suppliers etc. as well as earnings from the franchised businesses operations. Also, there were revenues to the amount of RMB 1.96 billion from admission tickets, lodging, payment cards, bank interests and assets disposal and others, of which RMB 1.
28 billion were from ticket sales and RMB 240 million were earnings from assets disposal .
Under the IOC regulations for expenditure scopes and purviews of the BOCOG preparatory work as well as the accounting item classification, the BOCOG had 28 budgetary expenditures titles which were consolidated into eight areas by nature and purposes: RMB 3.962 billion were spent on subsidies for renovation of venues, tents used during the sports competitions, prefabricated houses, railings, partitions, pipes and wirings, dedication of temporary facilities and rentals as required by the IOC of the host city with regard to the hardware for the Games venues and their surroundings; RMB 3.
298 billion on the timing and scoring systems for sports events and telecom techniques as indicated in the Sports Events Guide and the Technical Manual of the Beijing Olympics and as an effort to satisfy the needs of international single sports event organizations and the TV broadcast businesses; RMB 1.
965 billion on purchase of sports facilities used in training venues, rental expenses, outlays for pre-Olympics Good Luck Beijing test contests as well as subsidies for energy consumption and energy operation safeguard during contests; RMB 5.092 billion on TV broadcasts, accommodation, transport, medical care, food and beverage and other services incurred under the host agreement and the established practice of the previous Olympics, of which RMB 1.
723 billion were expenses for TV broadcasts and RMB 3.369 billion were expenses incurred from accommodation and food and beverage of sportsmen, officers and guests of honor, car rentals and anti-doping tests as well as medical equipment purchase and designated hospitals subsidies; RMB 1.272 billion were on the creations, organizations, executions, home and overseas torch relays, public relations (PR) and theme topics activities.
RMB 1.424 billion on working staff wages and expenses for recruiting, training , motivation, uniforms for staff and volunteers as well as other human resources-related outlays; RMB 1.846 billion on the BOCOG s administration, offices, legal counseling and life insurances for sportsmen, technical officers, working staff and volunteers as well as property insurance, payment cards operations, and RMB 484 million on the subsidies given by the Olympics to the Paralympics as agreed upon under the host city agreement.
In order to embody the principle of hosting a money-saving Olympics , and minimize the overlapping input, the budget for the Olympics took on all the budgetary expenses inseparable with the Games such as facilities and equipments that could be used even after the Games (e.g. temporary structures, broadcast transmissions and techniques etc.
) as well as administration and offices, working staff salaries, legal service. The budget for the Paralympics was by and large spent on the preparations for the event and those special services intended exclusively for its sportsmen (e.g. opening and closing ceremony, torch relays, sports equipments, accommodation, food and beverage, uniforms, timing and scoring systems, medical classifications, artificial limbs and wheelchairs repairs).
Based on the above estimates, the revenues and expenditures were RMB 863 million each.
To make the ceremonies a success, the BOCOG formed a steering group for the Olympics opening and closing ceremonies, working department for the two ceremonies as well as their respective operation centers which were run along the lines of decision-making level, management level and enforcement level.
At the same time, the BOCOG s Audit and Supervision Department sent a group to the operation centers to be a full-time watchdog, thereby ensuring a smooth run-up to the events. The expenditures incurred from the opening and closing ceremonies of the Olympic Games and the Paralympics totaled RMB 831 million.
The audit has found that the BOCOG has followed through the above guideline, persisted in materializing the idea of a green Olympics, a hi-tech Olympics and a people-oriented Olympics and after seven-year unswerving effort, the Olympics and the Paralympics were a resounding success: they had distinctive features , were up to high standard and equally amazing .
The BOCOG governed by the progress in preparatory work, had been streamlining its organization, steadily pushing forward with the venues construction, team capacity building, opening and closing ceremonies rehearsals and test matches as well as other key activities, thus securing highly efficient and orderly progress.
Also, the BOCOG had been tightening its internal control by taking a strict approach to budget, making incessant effort to better the authorization and procedure for examination and approving funds, keeping a close watch at each outlay from the budget, thereby bringing expenditures under effective control, and ensuring a better cost-effectiveness resulting in a surplus of RMB 1 billion, a figure substantially larger than the RMB 410 million as originally projected as well as a well-controlled budget.
Following the Games, the BOCOG had carefully scrutinized the outstanding balance and other remaining matters. They were down-to-earth and strict in controlling expenses, and saw to it that the follow-up expenditures be authentic and reasonable. Meanwhile, the BOCOG did a good job of post-Games maintenance, buy-back and disposal of materials in accordance with the principle of fairness, openness and transparency.
Overall, the BOCOG had a fairly sound internal control system, a comparatively strict oversight and management, a relatively good handling of the expenses. Therefore, the auditors have not found any major violations of law.
The BOCOG has given great attention to the problems found by the audit and the audit s opinions and recommendations. They have acted on the written instructions of the State Council leadership and the BOCOG leadership by taking timely and effective steps to make amend ments, and have yielded apparent results.
They have devised, amended and fine-tuned ten internal management regimens, and restructured the plan for activities as per the audit recommendations by instituting a better management, cutting back on expenses, raising the cost-effectiveness, and they have had a savings of over RMB 100 million. The final accounts (draft) audited has shown that the actual balance has considerably exceeded the forecasted amount.
With the exception of some independent training halls, the CNAO audited 93 projects, whose investment involved totaled RMB 19.455 billion, accounting for 99.82% of the full amount of investment. As of the end of March, 2009, except for the Shenyang Sports Center which has yet to finish its final accounts, the remaining 92 projects have already completed their respective final accounts, and are in the process of going through relevant formalities.
The overall investment in the 92 projects that have completed the final accounts amounted to RMB 18.344 billion, the cumulative paid- in investment reached RMB 17.53 billion, of which the central finance allocated RMB 3.505 billion, local governments contributed RMB 8.264 billion whereas overseas Chinese compatriots donated RMB 1.
084 billion, the Olympic Organizing Committee subsidized RMB 368 million, the three education-ministry affiliated universities raised RMB 386 million on their own. Other financial resources were secured through project legal persons tenders and bank loans.
The CNAO has conducted full-course carry-on audit of the Olympics venues construction since the second half of 2005. The 41 central-financed projects operated by the General Administration of Sport including such landmark projects as the National Stadium and the National Swimming Center, five venues built by the universities affiliated to the Education Ministry and the then Commission of Science, Technology and Industry for National Defense were directly audited by the CNAO, and the rest was audited by the audit institutions of the localities, where the venues are located as per the unified arrangement of the CNAO.
Throughout those carry-on audits, the CNAO has always been governed by the guiding concept of serving the Olympics and safeguarding the Olympics and strictly adhered to the principle of prevention first . Their comprehensive audit covered the entire lead time, quality, safety, investment control and fund employment.
Any problem thus found would be addressed timely, and its ratification was monitored by auditors. The purpose of which was to call on project management departments and engineering units to discharge their functions in a down-to-earth manner, enhance their management, and complete the quality venues building according to schedule.
In the course of the four years, the cumulative number of acceptance checks documents selectively verified by the CNAO relating to inconspicuous engineering work, documents regarding materials discharge, quality controls by supervisory stations totaled more than 30 thousand copies and the number of audit reports on certain single projects came to over 240.
In addition, they found more than 350 cases of offenses involving bids and tenders conducted against the rules, outstanding issues left behind by project legal persons. Also, the CNAO has put forward nearly 800 audit recommendations. So far, the problems found and the recommendations given by the CNAO have in the main been addressed and implemented with outstanding results.
As regards single projects, once it was completed, the CNAO got down to the audit of its final account, and it has scrutinized more than 4500 of them. The 92 completed projects have got back with their final accounts involving RMB 16.67 billion, and RMB 15.253 billion have been approved, meaning there is a cutback of RMB 1.
417 billion, or 8.5%.
The audit findings have indicated that the General Administration of Sport, the Education Ministry, the Beijing municipality and local governments concerned have all attached great importance to the Olympics venues construction, and for this purpose, they have formed relevant coordination groups. The National Development and Reform Commission as well as others joined in coordination by giving special treatment to special matter, thereby creating excellent externality for the construction of Games-related projects.
All project legal persons, engineering units, construction supervisors and other construction-related units took a serious approach to their responsibilities, quicken the construction progress, improve the control over quality, investment and safety, and made a point of regulating financial management and fund employment.
Also, all departments and units concerned made much of the audit recommendations by fixing their problems, taking effective measures to ensure a better management. On balance, the construction of Olympics venues went on smoothly with all projects completed and dedicated on time, and all the venues acceptance check was 100% satisfactory.
There were 38 projects awarded with 118 prizes including the Lu Ban Prize intended for the best state construction projects, the Zhan Tianyou Chinese Civil Engineering Awards, Great Wall Cup Golden Prize for good structure. All of them had met the competition needs of the Olympics, and were widely recognized by the IOC, various delegation officials, sportsmen as well as domestic and foreign guests.
Furthermore, there was no major accidents resulting from poor quality or safety negligence, nor were there cases of huge losses or waste or legal offenses. The raising of funds and their spending were basically reasonable, and the total amount of investment was under control. In the wake of the Games, the Olympic center has become one of the new landmarks and tourist destinations, and a number of major events have taken place there.
So far it has been visited by over 4 million persons, not a bad socio-economic result.
In order to draw funds from the society for Olympics project construction, and solve the problem of the post-Games commercial operation of competition venues, the Beijing municipality invited tenders to become project legal persons for the National Stadium and other venues in order for bid-winners to incorporate companies for fund-raising, design, construction and post-Games operation.
However, some project investors failed to make their funding available, and instead, quit in the middle of these undertakings, divided the main structural work and engaged in their respective constructions. The problem was made more complicated by the difficulty in pursuing the preferential land and tax policy promised by the government to project legal persons.
For instance, the Jinzhou Holding Group Co., Ltd, one of the National Stadium shareholders had failed to contribute its share of invested money from the very beginning of the construction work, and up till now, it still owes RMB 47 million.
The National Administration of Sport, the Beijing municipality and other departments and units gave high priority to the problems found by auditors by actively fixing them, correcting them as the audit went ahead and achieved remarkable results. There were instances where the audit found some projects lagging behind the schedule, and the National Administration of Sport and the Beijing municipality lost no time in exploring ways to tackle them.
They focused on those projects having more serious problems, followed them all the way with the department in charge and the engineering units turning the work schedule upside down and delegating responsibility to each and every one. Such energetic measures guaranteed the work progress and quality.
