Games remain on time, on budget in latest TO2015 fiscal results
Conference call with TO2015 CEO and executives today at 10:00 a.m.
TORONTO, Nov. 21, 2013 /CNW/ - The TORONTO 2015 Games and its growing
community awareness in southern Ontario is proving attractive to major
Canadian companies, with four more coming on board this fall, the
TORONTO 2015 Pan Am/Parapan Am Games Organizing Committee (TO2015)
reported today as part of its quarterly fiscal update.
TO2015's senior leadership team will be available to the media at 10:00
a.m. (ET) today. For details on how media can dial in, please see
The flurry of major announcements included Loblaw Companies Ltd.
(grocery retailer) as a Premier Partner of the Games; Opening Ceremony
Creative Partner Cirque du Soleil; as well as Official Suppliers the
Royal Canadian Mint (medals) and McKesson Canada (pharmaceutical).
Additional partnerships will be announced in December.
The quarterly financials — which show the Organizing Committee remains
on budget — were reviewed by TO2015's Audit Committee. Documents
outlining TO2015's infrastructure budget and quarterly financial graphs
covering the fiscal period ending September 30, 2013 (FY 2014, Q2) are
available at TORONTO2015.org.
"The TORONTO 2015 Games are attracting a great deal of interest from
high-profile Canadian companies," said Ian Troop, chief executive
officer of TO2015. "These partners are bringing invaluable expertise,
as well as goods and services to the table that are critical for us to
successfully deliver the largest international multi-sport Games ever
held in Canada."
Highlights of the quarter include:
TO2015's operating expenses were $12.4 million and were predominantly
spent in the areas of corporate, technology and workforce. Since
inception, the Organizing Committee has spent $83.2 million or 10.8 per
cent of its total operations budget of $767 million.
Currently at 239 employees, TO2015 is continuing to ramp up hiring for
Games time with almost 200 anticipated staff yet to be recruited.
TO2015's total venue construction expenditures for the quarter were
$86.1 million, including the second milestone payment of $44 million
for the CIBC Pan Am/Parapan Am Aquatics Centre and Field House, $20
million for the CIBC Hamilton Pan Am Soccer Stadium, $11.1 million for
the Cisco Milton Pan Am/Parapan Am Velodrome and $10.4 million for the
Markham Pan Am/Parapan Am Centre and the balance on other smaller
Project-to-date venue construction expenditures amounted to $262.5
million, representing 36 per cent of its total capital budget.
TO2015's overall capital building program is continuing to come in under
budget. The $57.5-million positive variance in the capital budget first
reported in the November 2012 Quarterly Report remains unchanged.
Ninety-four per cent of the capital budget is locked in, with financial
contingencies built into each individual venue budget. Potential for
cost increases has been mitigated by using a project management design
that shifts risk to private sector contractors.
TO2015 is tracking on target against its quarterly operating budget. In
July 2013, the Organizing Committee, as required by the Multi-party
Agreement, delivered Version 2 of its Business Plan for the Games. The
plan is under review by the provincial and federal governments with
approval expected in early 2014.
Other highlights include:
TO2015 hosted 350 international and regional sport leaders during
Toronto's first-ever Pan American Sports Organization (PASO) General
Assembly. A number of important decisions were reached during the
PASO confirmed the TORONTO 2015 Games will use the sole World
Anti-Doping Association (WADA) accredited laboratory in Canada, located
at the Institut National de la Recherche scientifique-Institut
Armand-Frappier (INRS) in Montreal.
PASO confirmed the dates for the 2014 Chef de Mission seminar: September
16-20, 2014, in Toronto.
The Canadian Olympic Committee (COC) named famed Canadian cyclist Curt
Harnett as its chef de mission for Team Canada at the TORONTO 2015 Pan
Lima, Peru, was chosen as the Host City for the 2019 Pan Am/Parapan Am
Games, defeating bids from Argentina, Chile and Venezuela.
The $70-million TORONTO 2015 Sport Legacy Fund will ensure three key
Games' venues provide a lasting legacy for high-performance sport in
Canada and maximize the community and recreational use of these
facilities. The fund, supported by the Government of Canada and
Province of Ontario, will go towards the CIBC Pan Am/Parapan Am
Aquatics Centre and Field House, Cisco Milton Pan Am/Parapan Am
Velodrome and the CIBC Pan Am/Parapan Am Athletics Stadium at York
TORONTO 2015 merchandise — including a collectable plush PACHI the
porcupine — will be available to take home this holiday season at the
newly designed TORONTO2015.org website, as well as at other retailers
TO2015 has posted a revised version of its Business Expense and Travel
Policy online at TORONTO2015.org. The policy was approved by TO2015's
Board of Directors. As indicated in the policy, management will be
posting a summary of the executive and Board of Directors' expense
claims on a quarterly basis. The quarter ending September 30, 2013, has
already been posted.
Rowing Canada has committed to sending its best team to compete at the
Pan Am Games. The world-class Royal Canadian Henley Rowing Centre will
host 14 men's and women's competitions. For the Games, the Government
of Canada and the City of St. Catharines are jointly funding the
renovation of the sole bridge linking the facility to the mainland.
Since inception, 769 businesses have sold goods and services to TO2015,
totaling more than $26 million as of October 31, 2013. Sixty-five per
cent went to businesses operating in the Greater Golden Horseshoe
region. Of the suppliers used, 178 are diverse suppliers, meaning they
are 51 per cent owned by women, visible minorities, Aboriginal peoples,
persons with disabilities or from the LGBTQ community. Diverse
suppliers accounted for $4.7 million in business with TO2015.
Enterprise Risk Management
Since mid-2012, TO2015 has implemented a robust enterprise risk
management process that is continuing to evolve in preparation for the
delivery of the Games.
By fiscal year-end March 31, 2014, TO2015 will add an internal audit
function to complement the activities of the internal audit functions
of the federal and provincial governments. This will provide objective
feedback to management and the board of directors that the appropriate
mitigating strategies are in place to ensure an operationally sound and
safe Games, as well as a fiscally responsible execution against budget.
TO2015 Budget Background
The overall budget for the TORONTO 2015 Games remains unchanged at
$1.441 billion. Of the total amount, $674 million is dedicated to a
capital budget for new venues and renovating existing facilities and
$767 million is dedicated to the operations of staging the Games.
The budget is composed of up to $500 million from the Government of
Canada, $500 million from the Government of Ontario, along with $288
million from municipal governments, universities and venue owners and
an estimated $153 million raised through sponsorships, ticketing and
other revenue measures.
The budget includes the costs of overlay, some essential services and
the need for appropriate contingencies for the capital and operating
components of the Games. It has been reviewed and confirmed by
independent third-party financial experts and by experts in staging
large-scale, international, multi-sport events.
In addition to the $674-million capital budget, there are other
supportive investments being made. As per the Bid Book, the
construction of the CIBC Pan Am/Parapan Am Athletes' Village, which
will be a permanent residential community following the Games, is not
included in the TO2015 capital budget.
The construction of the Field House in Markham is funded solely by the
City of Markham for $34 million. As announced in 2011, the Province of
Ontario is investing an additional $22.3 million in Hamilton's new
When it announced its budget in May 2012, TO2015 committed to regular
updates to the public. Today's Quarterly Report is the fifth in an
ongoing series of regular, quarterly organizational updates as the
organization moves forward to Games time.
Like the Province of Ontario, TO2015's financial reporting follows the
fiscal year, which ends March 31, rather than the calendar year, which
ends on December 31. This is why the bulk of the Organizing Committee's
operating expenses, for example, will be paid in fiscal year 2016;
though occurring in the summer of 2015, the Games will take place
during the second quarter of fiscal year 2016.
The next Quarterly Report will be released in February 2014 and will
cover the third quarter of fiscal 2014.
TO2015 Quarterly Report Media Conference Call Details
Thursday, November 21, 2013
10:00 a.m. to 11:00 a.m. (ET)
Ian Troop, chief executive officer, TO2015
Barbara Anderson, chief financial officer, TO2015
Katherine Henderson, senior vice-president, marketing & revenue, TO2015
Jason Fellen, senior director, capital projects, TO2015
To access the conference call by telephone, dial 416.981.9004 or
toll-free 1.800.750.5857 within North America. Please connect
approximately 10 minutes prior to the beginning of the call.
The TORONTO 2015 Pan Am/Parapan Am Games Organizing Committee (TO2015)
is tasked with the responsibility of planning, managing and delivering
the Games. Its mission is to ignite the spirit through a celebration of
sport and culture. The TORONTO 2015 Pan American Games will take place
July 10-26 and the Parapan American Games August 7-14.
The 2015 Games are funded by the Government of Canada, the Province of
Ontario, as well as other partners and sponsors. CIBC is the Lead
Partner of the Games.
For more information about the Games, please visit TORONTO2015.org.
SOURCE: Toronto 2015 Pan/Parapan American Games
For further information:
Director, Media Relations and Chief Spokesperson, TO2015