By JUDY MONCHUK
Globe and Mail
Saturday, November 24, 2001

Amateur sports bracing for cuts

CALGARY -- Canada's amateur sports organizations are bracing for a $6-million funding shortfall -- that's what the Canadian Olympic Association is facing after the Winter Games in Salt Lake City.

Coping with the cuts -- the result of the COA's endowment fund being hard hit by the slumping global economy -- will be discussed at a COA directors meeting this weekend in Calgary.
On the chopping block are grants to national sport governing bodies and national training centres.

"We've made cuts in all areas to reflect the economic realities of today," said Lou Ragagnin, the COA's interim chief executive officer. "We've crafted a plan we think is prudent."

The four-year, $65-million economic blueprint is in effect until 2004.

"Any change will certainly have a negative impact on the athletes, the coaches and the ability to do well at the Olympics and on the World Cup circuit," said Kerry Moynihan, head of the national downhill ski team, which gets $80,000 of its annual $7.7-million annual budget from the COA.
The 77 board members -- from 51 organizations -- will also discuss changing the criteria of who receives funds in the future.

It has already revamped funding to reward performance, meaning sports that do well and receive Olympic medals get more money.

A final decision on funding criteria will be made at the next board meeting, set for Edmonton in April.

Complicating the money woes is a call from some board members for a forensic audit of the COA's books.

Ragagnin says the call is unfounded and an "irresponsible" cost as programs are being slashed.
A forensic audit -- which could cost upward of $100,000 -- is generally called when there is evidence of fraud or impropriety.

"At this point, there's no shred of this evidence," Ragagnin said, adding that the books are already subject to annual audits.

"We don't handle our money -- we hire highly qualified management firms that manage billions of dollars."

At least one board member has resigned over the COA's refusal to conduct the audit. It was first suggested by Paul Henderson, who resigned from the COA on an unrelated matter.
Henderson could not be reached for comment yesterday.

Moynihan, also a board member, opposes the audit.

"This is a lot of money in difficult times," he said. "To me, $100,000 represents the cost of one skier for the year. I certainly think the money should be spent on the athletes and coaches as opposed to writing a cheque to some forensic auditor, given that there are many controls and audits in place." The cuts will also impact on the eight national training centres across the country.

"If we as a country want to get athletes on the Olympic podium, we've got to set up and retain this network of centres," said Dale Henwood, who runs the facility at the University of Calgary.
In 1998, about 60 per cent of the Canadian athletes in the winter Olympic sports made use of training facilities and expertise of the Calgary staff. Henwood says he expects similar numbers this year.

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