Quote:
Originally Posted by dustygoon
Yep. It was audited. But that isn't my point. Not going to geek out, but I think they use nonprofit fund accounting rules...means you have different pools of funds for different activities. There is a set of financials for each fund showing revenues and expenses. This cbc article shows the "operating budget" numbers. And they perfectly balance. Of course they do, because someone has to pay for the expenses. Lots in there from Canada and BC governments. And that is just the operating budget. The "Venue" fund is another fund that is used for site development. Lots in there from the governments too.
Check out page 18:
http://www.fin.gov.bc.ca/reports/201...rt_English.pdf
It's just who had to pick up the unpaid bills (taxpayers....which they did). I am not against gov't spending on olympics....there is some future net benefit. But saying they "broke-even" is disingenuous. This particular fund broke even. |
Umm... a budget is a tool. Furthermore, a budget is imaginary and made up. I would explain a budget as being lines in a coloring book. It's there to guide proper allocation of colors and resources, but the moment you decide to "draw outside the lines", it's useless.
Example: If I budget $1500 for a tv, I have created an imaginary boundary for which to work with. The budget hence becomes completely useless if I decide to blow $5000 on a home theatre system.
Of course the budget will balance. No one generally wants to put together a budget that doesn't balance. Doing so is the equivalent of saying you want to operate with a flawed set of boundaries to work with (ie: spend more than you have or will receive on purpose). I guess you could even say it's the equivalent of a quantified business plan. Back to the home theatre example, no one will say, "I have $1500 in the bank for a TV, I will budget to spend $5000".
Not going to discuss fund accounting. It's pretty much the equivalent of consolidated statements though in a nutshell.