FIA accounts criticised for lack of transparency
PwC audited Formula One accounts criticised for lacking disclosure, specifically around personnel spending
FORMULA ONE’S governing body the FIA has been criticised by its partner club the RAC over a lack of disclosure in its accounts.
The Royal Automobile Club (RAC), is a partner of Fédération Internationale de l’Automobile, which governs international racing competition Formula One.
RAC’s chairman Tom Purves wrote to the FIA president demanding further details over payments totaling €14.4m (£12.2m) in its latest annual financial statement, audited by PwC, The Sunday Telegraph reports.
In particular he had two points of contention, the personnel expenses of €6.1m and €8.3m for travel, missions and conferences.
Purves is reported to have said in a letter to FIA president Jean Todt, “there is a lack of the narrative or detail in the FIA accounts that one would not expect of an international entity or UK entity”.
“This may be because they are prepared in a way that meets merely the minimum standards required of a French, not-for-profit organisation.”
The FIA’s office is in Geneva but it’s headquartered in Paris where it does not need to file publicly-available accounts, because it is a not-for-profit organisation
A response from Nick Craw, president of the FIA’s decision making body, said, the RAC “was duly represented at the general assemblies relating to the accounts for 2010 and 2011” and had raised no questions.
“The costs indicated in the FIA accounts reflect the salaries and social security contributions for those staff. Our accounts… are audited by PwC, one of the largest audit firms in the world and their certification of our accounts is without reservation, which confirms to our members the strictness and quality of our bookkeeping.”
The RAC declined to comment further.