By
Patrick Brethour and Stanley Tromp, Globe and Mail, 17 Jan. 2008
Audit suggests provincial
worker shortage could create problems for organization
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British Columbia's growing labour
shortage poses a "significant" risk to the 2010 Olympic Games, says
an audit commissioned by the provincial government and obtained by The Globe
and Mail.
The audit, completed by May,
2007, said the committee faces difficulties in recruiting or retaining 40
highly qualified workers, a large proportion of its total staff of 370.
Those difficulties persist,
said Donna Wilson, the executive vice-president of work force and sustainability
at the Vancouver Organizing Committee for the 2010 Olympic and Paralympic
Winter Games. "The market is still tight," she said, adding that the
committee has reduced employee turnover since the time of the audit.
The employees in highest
demand work in information technology, human resources and financial services,
she said.
The organizing committee is
spending $33-million on raises and bonuses through to the end of the Games in a
bid to retain staff - inducements that rise with salary, seniority and length
of service.
The audit noted other human
resources issues, including the need to strike agreements to obtain temporary
and volunteer staff, security-clearance procedures, and work visas and
accreditation. Despite those concerns, the auditors concluded that the
committee's planning process was essentially sound.
The 2010 Olympic and
Paralympic Winter Games Secretariat (a branch of the B.C. Economic Development
ministry) had asked the B.C. Comptroller General for the narrowly focused
audit; the terms of reference did not permit the auditors to assess the overall
Olympic plan, or make recommendations to government as to whether it should be
accepted. The Globe obtained an edited version of the confidential report
through an access to information request.
The audit questioned several
budgetary practices of the organizing committee, but concluded that "with
almost three years to go before the 2010 Winter Games it is not unusual for VANOC to have uncertainties in
developing its revenue and expense estimates."
Among the concerns noted
were:
* some revenue estimates were
based on un-negotiated or partly negotiated contracts,
* VANOC's $100-million contingency fund was not directly
linked to its assessment of the fiscal risks it faces, and some of those risks
could have a material impact on the committee's bottom line. The next six lines
detailing those risks were edited from the copy provided to the Globe,
* the lack of a
"comprehensive strategy" to deal with budget deficits that might
arise, other than ongoing monitoring of spending and risk.
VANOC's business plan calls for
the 2010 Games to break even.
Asked if a deficit plan is
still an issue today, VANOC
chief financial officer John McLaughlin said the committee can't come up with
an effective plan ahead of time, since circumstances can change so quickly.
"It is and isn't an issue," he said of the auditors' critique.
"As soon as we see things are getting out of balance, then we take
remedial action before we get into a position of forecasting a deficit."
Mr. McLaughlin said the
committee is continuing to revise its estimates of expenses, but noted that VANOC's approach to contingency
funding was examined and approved by experts from the International Olympic
Committee and the chief financial officer of the 2002 Salt Lake City Winter
Olympic Games.
He said he viewed the
auditor's report as positive. "It's the equivalent of an auditor jumping
up and giving you a high five."
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