Audit, Risk & Integrity
Committee Report
XXXIV World Triathlon Congress
Virtual
Contents
01 Introduction
02 Review of the Committee’s Progress in 2020/21
03 Key Projects & Achievements
04 Targets for Upcoming Season
05 Review of the Audited Accounts 2020
04 Auditor’s Report
05 Q&A
2
Welcome
Welcome to the Audit, Risk & Integrity Committees Virtual Presentation
On behalf of my fellow members of the Audit Risk and Integrity Committee, I would like to welcome you to our virtual presentation.
The members of the Committee are:
We will be happy to take any questions as they come up, so please use the chat box…
3
Introduction
4
Review of Progress in 2020/21
5
Risk
Audit
Integrity
Our Committee met with our Auditors, PwC to review the audited finances of World Triathlon for the period 2019/20 and had opportunity to examine the findings of their Audited Accounts and to closely question their findings.
As a committee we are pleased with the comprehensive nature of the Audit and answers to the questions, which we posed to the auditors.
We find as a committee, that we have full confidence in the audit procedures and the findings as contained with their report which is contained in your Congress pack.
6
Our Committee will continue to regularly review our finances and compare them to the budget, to meet our obligations to you, our member Federations.
We can confirm that, in the opinion of our Committee, the 2022 budget is realistic given the current uncertainty around the recovery phase of the pandemic and we have confidence that this can be delivered.
We are optimistic as to the future, as we beginning to see signs of the recovery.
However, we are mindful of the ongoing global pandemic, which resulted in a significant loss of revenue to World Triathlon in 2020 as well as in this current year, 2021, has the potential to impact this and future budgets.
Nevertheless, in the opinion of the Committee, given the level of reserves held, together with good management, robust systems, and controls, it allows World Triathlon to continue to be an effective world governing body.
7
Our Committee has over the past year worked on several key projects which has seen the introduction of new and revised policies.
Two of these new policies have seen World Triathlon strengthen their financial controls, in the key areas of Foreign Exchange and our Investment Policy.
One other key project, which will soon be completed, will see a revised World Triathlon Procurement Policy.
In early 2022, we hope to see the introduction of a Risk Register aimed at ensuring we have the correct balance of good governance and controls in place across our organisation.
8
By a continuous reviewing of our existing policies and introducing new policies where necessary, which reflect our strong moral and ethical principles and reflect our values, this ensures World Triathlon maintains its operational and professional integrity as a leading sports world governing body, to lead others and to be at the forefront of innovation.
9
Integrity
Targets for 2022 and beyond
To ensure that World Triathlon is compliant, efficient, and effective in all areas of governance.
To establish, identify, review and maintain a World Triathlon Risk Register, and monitor known risks to the organisation.
To establish, review and maintain a Central Policy Register and assist World Triathlon in policy reviews, as and when required.
In 2022, we will review the World Triathlon grant process and its subsequent impact as it related the Continental Confederations so that they are used in a fair, purposeful way and with the same structure for all Confederations.
10
2020 Revenue Audited
11
| AMOUNT (US$) | | ||
Revenue | 2020 | 2019 | Variance | |
Olympic games | 1,982,916 | 3,572,256 | -1,589,340 | -44% |
Sponsorships | 665,551 | 1,358,614 | -693,063 | -51% |
Television and event fees | 141,921 | 2,374,410 | -2,232,489 | -94% |
Grants and contributions | 98,596 | 98,182 | 414 | 0% |
Prize money received | 0 | 460,000 | -460,000 | -100% |
Affiliation fees | 43,200 | 30,900 | 12,300 | 40% |
Other Income | 396,168 | 237,698 | 158,470 | 67% |
| 3,328,352 | 8,132,060 | -4,803,708 | -59% |
2020 Expenditure Audited
12
Expenses | AMOUNT (US$) | |||
| 2020 | 2019 | Variance | |
Administrative expenses | 166,042 | 287,667 | -121,625 | -42% |
Anti-doping related expenses | 284,451 | 372,671 | -88,220 | -24% |
Bad debt | 0 | 206,000 | -206,000 | -100% |
Committee | 63,573 | 343,464 | -279,891 | -81% |
Competitions and Events | 458,289 | 1,621,084 | -1,162,795 | -72% |
Contingency | 184,594 | 165,406 | 19,188 | 12% |
Depreciation of capital assets | 16,801 | 15,433 | 1,368 | 9% |
Development | 403,317 | 1,150,827 | -747,510 | -65% |
Executive Board | 31,337 | 264,516 | -233,179 | -88% |
Legal and Accounting | 34,097 | 25,204 | 8,893 | 35% |
Marketing | 155,652 | 244,443 | -88,791 | -36% |
Media and Television | 390,930 | 1,121,146 | -730,216 | -65% |
Olympic Games expenses | 0 | 265,360 | -265,360 | -100% |
President's Honorarium | 210,870 | 208,765 | 2,105 | 1% |
Salaries | 1,745,423 | 1,831,491 | -86,068 | -5% |
Sport Department | 171,999 | 495,397 | -323,398 | -65% |
Expenses Total | 4,317,376 | 8,618,877 | -4,301,501 | -50% |
Earnings before interest and taxes | -989,025 | -486,817 | -502,208 | 103% |
Extraordinary Income | 423,844 | - | 423,844 | 100% |
Financial income | 723,195 | 701,891 | 21,304 | 3% |
Financial expenses | - 57,646 | 95,958 | -153,604 | -160% |
Profit/loss for the year | 100,369 | 119,117 | -18,748 | -16% |
Summary of PwC Findings
13
Summary of PwC Findings
14
Closing Remarks
I would like to take this opportunity to thank my fellow members of the committee, who have each made valuable contributions to our work over the past year and for their support.
I would also like to thank our Ian Howard our Executive Board liaison, Antonio and Adrienne for the invaluable assistance they have afford us over the past year and for the continued support and confidence of the President and Executive Board.
Yours in sport
Jamie Gordon, Beth Friberg, Victoria Brumfield Boubacar Gaye, Ramachandran Narayanaswamy
15
Thank you