A report from auditing firm KPMG on Los Angeles 2024’s projected budget of $5.3 billion is substantially reasonable ©LA 2024/KPMG

A report from auditing firm KPMG on the projected budget of Los Angeles 2024 of $5.3 billion (£4.2 billion/€5 billion) has claimed the figure is "substantially reasonable" - but the company warned its "ongoing viability" depends on the Bid Committee living up to promises made.

KPMG, considered one of the four biggest accounting firms in the world, were commissioned by Los Angeles 2024 to provide an extensive review of the budget.

The figure, revealed yesterday, confirms the Bid Committee has abandoned the standard practice of having separate operational and infrastructure budgets after insidethegames exclusively revealed that would be the case last month.

It was described as "low-risk" by Los Angeles 2024, who stressed their confidence that they would avoid problems of spiralling costs which have often been evident in previous Olympic and Paralympic Games budgets.

KPMG claimed "the level of rigour considered in the development of the budget is detailed for this stage of the bid process" and praised the Bid Committee for a "complete" figure which "adhered to a bottom-up conservative approach".

While KPMG identified "no significant findings" or causes for concern when conducting the review, they did offer Los Angeles 2024 with advice going forward and criticised certain parts of the budget.

"The ongoing viability of the budget depends on the continued adherence to the assumptions and estimates made at this stage in the bid process," the report from KPMG read.

The company, whose headquarters are located in Amsterdam, The Netherlands, also claimed that certain elements of the budget, such as ticketing revenue estimations, went against the “conservative” mantra of Los Angeles 2024.

"The process for estimating revenue deviated from the guiding principle of using a conservative approach," KPMG said.

Los Angeles 2024 chairman Casey Wasserman said they had
Los Angeles 2024 chairman Casey Wasserman said they had "deeply engaged" with the IOC before releasing the budget ©Getty Images

Los Angeles 2024 expect ticketing would provide $1.47 billion (£1.15 billion/€1.37 billion) – the second largest source of income behind the domestic sponsorship programme, which they estimate will generate $1.93 billion (£1.51 billion/€1.81 billion).

They added that the methodology used to create estimations for certain expense categories "limited comparability to industry benchmarks".

KPMG also raised four elements not include in the budget for the consideration of the City of Los Angeles, which they felt were "key to the successful delivery of the Olympic Games" and were therefore deemed worthy of a mention.

This list was comprised of security costs, city vision and impact on municipal services, timing of other city infrastructure projects and ongoing oversight.

It comes as Los Angeles 2024 reiterated their claim that other building work going on in the city, such as a $120 billion (£95 billion/€112 billion) transport plan due to be completed in time for the Games, was separate from the bid and did not need to form part of their budget.

Venue infrastructure, which includes renovation work on the 30 existing venues due to be used if Los Angeles wins the rights to host the 2024 Olympics and Paralympics, is highlighted as the largest cost at just shy of $1.2 billion (£950 million/€1.1 billion).

Other factors taken into account in the figure are Olympic venue overlay, rental agreements and temporary venue construction.

Los Angeles 2024 had recently confirmed their budget information would be made available either by the end of the year or when the third bid file is submitted to the International Olympic Committee (IOC) on February 3.

They insist they have been able to use a single figure because they do not have any wider non-operational infrastructural costs.

Los Angeles 2024 chairman Casey Wasserman claimed they had "deeply engaged" with the IOC before releasing the figure, which came as a result of an "open and transparent process".

Budapest and Paris are also bidding for the 2024 Olympics and Paralympics.

The IOC is due to elect its chosen host city at its Session in Lima on September 13.

To read the full report click here.