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ANNUAL REPORT 2006

ANNUAL REPORT 2006

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1. FROM THE PRESIDENT 4

2. GOVERNING BOARD AND HONORARY BOARD 6

3. VISION AND MISSION 7

4. ORGANIZATIONAL STRUCTURE 8

5. ABOUT THE IPC 9

6. TORINO 2006 PARALYMPIC WINTER GAMES 10

7. THE YEAR IN IPC SPORT 12

8. STRATEGIC PLAN 2006-2009 13

9. HIGH PERFORMING ORGANIZATION 14

10. MEMBERSHIP DEVELOPMENT 19

11. RESOURCE CREATION 22

12. GAMES SUCCESS 24

13. GLOBAL RECOGNITION 27

14. FINANCIAL INFORMATION 30

CONTENTS

Photo: © Lieven Coudenys

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FROM THE PRESIDENT

2006 has been a truly remarkable year forthe International Paralympic Committee(IPC). We have hosted a number of themost successful Paralympic sportingevents to date, and at the same timeembraced a diverse new governancestructure, which has enabled us to achievea number of organizational goals.

It has been my honour to lead IPC's newlyelected membership body through the last12 months and I am excited by theprospect of embarking on new challengeswith them. It also gives me great pleasureto reflect on the accomplishments of thepast year, which saw IPC's performancegreatly enhanced through theimplementation of the Strategic Plan(2006 - 2009).

Of course the highlight of the year was thesuccess of the Torino 2006 ParalympicWinter Games, which utilized many of IPC'snew organizational strategies. The onlything we could not provide was the magicof the event, which came from theperformances of our athletes, who onceagain showed tremendous strength,courage and skill.

We did however ensure the right mediastrategies were in place to present theexcitement to the world. Broadcastviewership exceeded all previous Gamesas a result. Significant progress was alsomade in raising the international profile ofthe Paralympic Brand with the launch ofthe Internet television channelwww.ParalympicSport.TV.

“Due to the intensework carried out in2006, IPC is inexcellent shape toface the challengespresented throughoutthe following yearand beyond.”


IPC ANNUAL REPORT 2006 5IPC ANNUAL REPORT 2006

Sir Philip Craven, MBEPresidentInternational Paralympic Committee

While Torino showcased the talents of ourwinter sports athletes, athletic recordswere being set across all IPC sports duringthe seven IPC World Championships thatwere hosted throughout the year.

IPC also consolidated its positiverelationship with the International OlympicCommittee (IOC), which showed itsunwavering support for the ParalympicGames by extending the IOC/IPCagreement from 2012 to 2016. Theexcitement of the Beijing 2008 ParalympicGames is just round the corner andpreparations are already underway for the2010 Games in Vancouver and 2012Games in London.

It is important to recognize that thevictories of the past year were not onlywon in the sporting arena. 2006 also sawtriumphs for the Paralympic Movement asa whole and will also be remembered forthe UN Convention on Rights for Personswith a Disability, which was adopted by theUN in August.

I am pleased to report that 2006 was alsosuccessful in terms of securing IPC'sfinancial status. The achievements of2006 would not have been possiblewithout funding, generated throughsuccessful marketing of the ParalympicBrand during the Games, and throughcorporate partnerships.

Of course, we also faced many challenges.Like all sports organizations IPC had toadopt stringent measures against dopingand enforce new legislation outlined in theWorld Anti-Doping Code. We also had tomake some tough decisions relating toClassification to guarantee our verifyingprocedures were robust enough to ensurefair competition for our athletes.

We tackled these challenges, and made ourdecisions in the best interest of ourathletes and the sports. Due to the intensework carried out in 2006, IPC is in excellentshape to face the challenges presentedby the following year and beyond.

My sincere thanks go to the staff of IPC,our Governing Board and all the volunteersaround the world who have madeParalympic Sport the steadily growingphenomenon it is today. Support for thework of IPC's member organizations isongoing and I would like to thank them forcontinuing to play such a vital role withinthe Paralympic Movement.

I am particularly looking forward to buildingon IPC's many successes during the co-ordination of the Beijing 2008 ParalympicGames, which are shaping up to be themost spectacular Games yet.

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IPC HONORARY BOARD(in order of acceptance)

HRH Princess Margriet of the Netherlands

HRH Grand Duchess Maria Teresa of Luxemburg

HRH Crown Princess Victoria of Sweden

HSH Prince Albert of Monaco

Maria Guleghina, International Opera Singer

James Wolfensohn, former President of the World Bank

HRH Princess Haya Bint Al Hussein of Jordan

IPC GOVERNING BOARD 2005-2009President Sir Philip Craven MBE

Vice President Miguel Sagarra

Members at Large:

Mr. Zainal Abu Zarin

Mr. Masoud Ashrafi

Mr. Jose Luis Campo

Ms. Ann Cody

Mr. Alan Dickson

Mr. Greg Hartung

Mr. Patrick Jarvis

Mr. Karl Vilhelm Nielsen

Dr. M. Nabil A. Salem

Mr. Zhifei Shen

Athletes' Representative Ms. Ljiljana Ljubisic

IPC Chief Executive Officer Mr. Xavier Gonzalez

Co-opted Member Mr. Fred Jansen




IPC GOVERNING BOARD AND HONORARY BOARD

IPC ANNUAL REPORT 2006 7

To guarantee and supervise theorganization of successful ParalympicGames.

To ensure the growth and strength of theParalympic Movement through thedevelopment of National Paralympiccommittees (NPCs) in all countries andsupport to the activities of all IPC memberorganizations.

To promote and contribute to thedevelopment of sport opportunities andcompetitions, from initiation to elite level,for Paralympic athletes as the foundationof elite Paralympic Sport.

To develop opportunities for femaleathletes and athletes with a severedisability in sport at all levels and in allstructures.

To support and encourage educational,cultural, research and scientific activitiescontributing to the development andpromotion of the Paralympic Movement.

To seek the continuous global promotionand media coverage of the ParalympicMovement, it's vision of inspiration andexcitement through sport, its ideals andactivities.

To promote the self-governance of eachParalympic sport either as an integral partof the international sport movement forable-bodied athletes, or as an independentsport organization, whilst at all timessafeguarding and preserving its ownidentity.

To ensure that in sport practiced within theParalympic Movement the spirit of fairplay prevails, violence is banned, the healthrisk of the athletes is managed andfundamental ethical principles are upheld.

To contribute to the creation of a drug-freesport environment for all Paralympicathletes in conjunction with the World Anti-Doping Agency (WADA).

To promote Paralympic sports withoutdiscrimination for political, religious,economic, disability, gender, sexualorientation or race reasons.

To ensure the means necessary to supportfuture growth of the ParalympicMovement.

VISION AND MISSION

TO ENABLE PARALYMPIC ATHLETES TO ACHIEVE SPORTING EXCELLENCE AND INSPIRE

AND EXCITE THE WORLD


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In 2006, the organizational structure of IPC was composed of the General Assembly(GA), the Governing Board (GB), the Management Team (with permanent headquartersin Bonn, Germany), and various Councils and Standing Committees.

ORGANIZATIONAL STRUCTURE

*The Legal Committee assumedthe responsibilities of the EthicsCommittee, as decided by theGoverning Board in 2006.


During World War II traditional methods ofrehabilitation were recognized asinadequate to meet the medical andpsychological needs of large numbers ofsoldiers and civilians with a disability. Atthe request of the British government, Dr.Ludwig Guttmann, a German neurologistand neurosurgeon who had fled the Naziregime to Great Britain, set up a SpinalCord Injuries Centre at Stoke MandevilleHospital in 1944. At Stoke Mandeville,Guttmann introduced sport as a form oftherapy and as an aid for remedialtreatment and rehabilitation. His workresulted in the increased prominence ofsport for individuals with spinal cord-related injuries and the first StokeMandeville Games in 1948. This led to theInternational Stoke Mandeville Games thattook place in 1952.

In time, multi-disability competitionsdeveloped to become the ParalympicGames - the first being held in 1960 inRome and the first Paralympic WinterGames in 1976. In 1982, the InternationalCo-ordinating Committee of World SportsOrganizations for the Disabled (ICC) wasestablished to govern the ParalympicGames and to represent the participatingorganizations in dialogues with theInternational Olympic Committee (IOC) andother global organizations.

The International Paralympic Committee(IPC) is now the global governing body ofthe Paralympic Movement and isresponsible for co-ordinating theorganization of the Paralympic Games,while acting as the International Federationfor ten IPC Sports. Founded in 1989, IPCis an international non-profit organizationwith an extensive membership basecomposed of National ParalympicCommittees (NPCs), International

Organizations of Sport for the Disabled(IOSDs), International Federations (IFs)and Regional Organizations (ROs). Since1999 the Management Team has beenlocated at IPC's HQ in Bonn, Germany.

IPC has a democratic governancestructure, made up of a General Assembly(the highest decision making body thatmeets biennially), a Governing Board, andseveral Councils and Committees. InNovember 2005, the present GoverningBoard was elected and Sir Philip Cravenwas re-elected for another term of office(2005 - 2009).

The last year has been particularlyimportant for IPC because it started to seethe benefits of an extensive restructuringprocess, which began with the StrategicReview in 2002. This led to a newconstitution and governance structure,which was adopted by the ExtraordinaryGA of 2004 and fully implemented in2006. As a result of this restructuringprocess, the Governing Board replacedthe Executive Committee and bylaws forIPC Councils and Standing Committeeswere developed. These key structuralchanges, led by concise strategic directionthrough the adoption of the Strategic Plan(2006 - 2009), have significantly increasedthe stature of IPC.

ABOUT IPC

Photo: © IPC

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'Passion Lives Here' was the motto of the Torino 2006 Paralympic Winter Games andit was certainly true.

From 11 to 19 March, a total of 474 athletes, including 99 women (21% of the totalnumber) competed in four sports in 58 medal events. Alpine Skiing was held on theslopes of Sestriere Borgata, Ice Sledge Hockey in the central Torino Esposizioni and theNordic Skiing events were held in Pragelato.

Wheelchair Curling made its Paralympic debut in front of packed crowds in Pinerolo.

Photo: © Getty Images

IPC Strategic Plan 2006-2009TORINO 2006 PARALYMPIC WINTER GAMES


TORINO 2006 PARALYMPIC WINTER GAMES

Mexico and Mongolia were welcomed to their first Winter Paralympics, bringing the totalnumber of participating countries to 39. Athletes and officials lived in two ParalympicVillages, in Sestriere and Torino.

The medal tally was topped by Russia with 13 gold medals, followed by Germany witheight golds and Ukraine, France and USA with seven gold medals each. Ukraine sawan exciting development, moving from 18th place at the Salt Lake 2002 WinterParalympics to third at Torino.

Ukrainian athlete Olena Lurkovska led the medal tally taking four gold, one silver anda bronze medal. The Russians secured their golden glory thanks to the performanceof a number of standout athletes in the Nordic Skiing competition: Lioubov Vasilievawon three gold medals and one bronze, Taras Kryjanovski took two gold and two silverand Rustam Garifoullin won two golds and a silver.

For the German team, the veterans shined as Martin Braxenthaler (sitting) took homethree golds for his country and Gerd Schoenfelder (standing) won two golds, a silverand a bronze, making him the most decorated male athlete in Paralympic Alpine Skiing.Canada was the only country to win gold in every discipline, Hockey, Curling, Downhilland Nordic.

In the Ice Sledge Hockey competition the USA, who won gold at the Salt Lake 2002Winter Paralympics, went home with the bronze medal while Canada defeated worldchampions Norway 3:1 to take the gold medal. Despite only scoring three goals in theentire competition, the Italian Ice Sledge Hockey Team still managed to fill the venuefor each of their games.

Several competitions, including the finals of the Ice Sledge Hockey and WheelchairCurling as well as the Opening Ceremony, were sold out.

While the Italian athletes were the crowd favourites of course, spectators cheeredheartily for great performances given by athletes from several different countries.

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THE YEAR IN IPC SPORT

2006 was a busy year for the ParalympicMovement with seven WorldChampionships held for sports on theParalympic Programme. Hundreds ofathletes with a disability were involved.Europe was the most popular location,hosting eight of the fifteen worldchampionships. The other fivecompetitions moved further afield,reaching Korea, New Zealand, Brazil andSouth Africa.

The 2006 IPC Powerlifting WorldChampionships, kicked off the year inBusan, South Korea. This competitionproduced outstanding results and 12 worldrecords were broken. From a total of 57participating countries, China topped themedal tally with nine gold medals, closelyfollowed by Iran and Egypt.

The 2006 IPC Shooting WorldChampionships followed in Sargans,Switzerland. This exciting competition sawsix individual and seven team worldrecords broken. China topped the medaltally with six gold medals, five silver andone bronze.

The 2006 IPC Athletics WorldChampionships were the largestchampionship event of the year, bringingover 1,500 athletes from 76 countries toAssen, in the Netherlands. China finishedfirst with a total of 55 medals, including 22gold. The USA and Australia both finishedwith a total of 32 medals, with 16 goldmedals each.

The 2006 IPC Cycling WorldChampionships were also held inSeptember at the International Cycling

Union (UCI) World Cycling Centre in Aigle,Switzerland. Germany came first overall,winning a total of 26 medals, including 12gold. There was a bonanza of 17 worldrecords on the track in the first three daysof competition and some highlycompetitive races on the road.

Next came the 2006 IPC Table TennisWorld Championships in Montreux,Switzerland. China dominated the medaltally at the Championships, taking 14 gold,four silver and seven bronze medals. GuiXiang Ren of China was the 'Queen of theChampionships', winning three goldmedals.

In October, in Arnhem, the Netherlands, atotal of 66 couples from 18 countriescompeted in Standard (Waltz, Tango,Viennese Waltz, Slow Foxtrot andQuickstep) and Latin American Dance(Samba, Cha-Cha, Rumba, Paso Doble andJive), in both combi-style dancing (awheelchair user and an able-bodiedpartner) and for the first time at a worldchampionship, duo-dance (with twowheelchair users).

A total of 549 athletes took part in the2006 IPC Swimming World Championships,one of the largest Swimming competitionsfor athletes with a disability after theParalympic Games. The event was held inDurban, South Africa, under theorganization of Disability Sport SouthAfrica. Great Britain topped the medaltally with 24 gold medals, closely followedby USA and Ukraine.


STRATEGIC PLAN (2006 - 2009)

2006 was a crucial year for the International Paralympic Committee (IPC) because itcompleted and implemented its Strategic Plan. By working towards a series of specificobjectives IPC will get closer to fully realising its vision to enable paralympic athletes toachieve sporting excellence and inspire and exite the world.

The five objectives: High Performing Organization, Membership Development, ResourceCreation, Games Success and Global Recognition have been developed in accordancewith the ongoing work of the IPC Management Team and IPC Committees and Councils.IPC has already taken significant steps to adopt a number of strategies outlined withineach of these objectives, as this report will go on to illustrate.

The strategies will be reviewed on an annual basis to ensure that IPC is adapting to thefast changing sporting environment, while continuing as an innovative and proactiveorganization.

Photos ©: Busan 2006, Prezioso, Gallo Images, Yuko Sato, Prezioso,

An efficientorganization with a

clear governancestructure and

concise strategicdirection, which

supports reliableoperations.

HighPerformanceOrganization



HIGH PERFORMANCE ORGANIZATION

A CONSTITUTION REBORN

Throughout the year IPC's performanceas a universal democratic sportingorganization was enriched by diversity andgreatly enhanced by strategic direction.The achievements made in 2006 illustratethat the benefits of implementing a newgovernance and management structurewere manifold.

IPC propelled its way through 2006 withincreased vigour and direction, as a resultof an extensive restructuring process,which began after the Strategic Review in2002. A new constitution was adopted bythe Extraordinary General Assembly of2004 and registered with the GermanCourt. As a result, the Governing Boardreplaced the Executive Committee tobecome IPC's highest layer of governance.Bylaws for IPC Councils and StandingCommittees were developed inaccordance with the new governingstructure, providing them with the rightframework to achieve their goals.

Members of the Governing Board wereelected at the General Assembly in 2005.By this time a revised budget had alsobeen approved to accommodate for thechanges in governance. The budgetbecame a fundamental part of IPC'sstrategic development, which eventuallyresulted in the creation of the StrategicPlan (2006 - 2009). This plan and its wide-ranging objectives were approved andapplied by the Governing Board in 2006.

A clear governance structure,complimented by the diverse andinternational membership of the GoverningBoard, allowed IPC to tackle thechallenges of 2006, while responding tothe demands of its environment.

ANTI-DOPING

Like all sports organizations, IPC had towork hard to defend the integrity andcredibility of its competitions by adoptingstringent measures against doping andenforcing the the legislation outlined inthe World Anti-Doping Code (WADC). IPCillustrated its commitment to this issue bymaintaining a strong relationship withWADA and revising the IPC Anti-DopingCode in accordance with international lawsand standards.

In 2006, WADA initiated a review processof the World Anti-Doping Code (WADC)and the WADC International Standards.IPC contributed to various stages of thereview process and provided detailedfeedback on revised draft versions of theWADC and International Standards.


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IPC also adopted the Anti-DopingAdministration Management System(ADAMS) to ensure the effectiveimplementation of anti-doping policies andprocedures. Anti-Doping Outreachprograms were also carried out during the2006 IPC Athletics World Championshipsin Assen, The Netherlands, and the 2006IPC Swimming World Championships inDurban, South Africa.Measures taken to ensure that OrganizingCommitees fully complied with IPC'spolicies on anti-doping, included theproduction of the IPC Anti-DopingHandbook for Organizing Committees ofIPC Sanctioned Events.

Throughout the year IPC conducted 658doping control tests during competitionsand 204 tests outside the sporting arena.A further 73 tests have been done onathletes participating in IPC Sports, afteragreements were made with the WorldAnti-Doping Agency (WADA) and otheranti-doping authorities. During the Torino2006 Paralympic Games 130 out-of-competition and 171 in-competition dopingcontrol tests were found to be negative.

Advancements were also made in thedevelopment of protocols and proceduresrelating to the Therapeutic Use Exemption(TUE) assessment process. This has led tothe successful management of anincreasing number of TUE applications. In2006 IPC approved 456 TUE applications,62 of which were handled before andduring the Torino 2006 Paralympic Games.

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CLASSIFICATION

IPC continued to strive for maximumfairness, consistency and accuracy in allverification processes used to determinethe eligibility of athletes enteringinternational competitions. Extensive workwas done to create effective sport-focused classification systems andprogess was made with the development of the Classification Code, in accordancewith the Classification Strategy, which wasformulated in 2003 to support thisprocess. These regulations aim to createconsistency and harmony in allclassification issues by defining a series ofpolicies and procedures that are commonto all sports. A rigorous assessment wasalso made of existing procedures used todetermine the eligibility of athletes with anintellectual disability. The InternationalSports Federation for Persons with anIntellectual Disability (INAS-FID) isresponsible for the implementation andverification of the processes used fordetermining the eligibility of athletescompeting in an international competition.

To be eligible to compete, athletes withinthe Paralympic Movement must meet aminimal eligibility requirement. However,the IPC Governing Board determined thatthe eligibility system developed by INAS-FID did not achieve the standardexpected for IPC sanctioned competitionsand was not sufficiently robust to ensurefair competition for athletes with anintellectual disability. Consequently, theseathletes can not take part in IPCsanctioned events, including the Beijing2008 Paralympic Games.

IPC has taken steps to ensure that all itspolicies developed on classification areunderpinned by solid scientific research.The importance of research wasreiterated at the VISTA 2006 ConferenceClassification: Solutions for the Future.And measures have since been taken tofurther integrate science into the athleteevaluation process through collaborativework carried out between the IPC SportsScience Committee, the IPC ClassificationCommittee and classification experts in anumber of different sports. As a result, anumber of athletes were evaluated andallocated a sport class on the basis of theirabilities in a particular sport.

Research was also carried out during theTorino 2006 Paralympic Games to minmizethe health risk to athletes competing at anelite level. Research applications approvedby the Sports Science Committee,included the use of a Paralympic InjurySurvey into the cause and frequency ofinjuries. A skill observation protocol wasalso drawn up, containing detailed criteriaof what constitutes the performance of amature ice sledge hockey player, as well asan examination of the physiologicalcharacteristics of Nordic sit-skiers incomparison to their performance.


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SPORT MANAGEMENT

During the second quarter of 2006, stepswere taken to establish a reliable andsustainable sport management structurethat addresses the accountability andviability of sports under the governance ofIPC. Under the direction of the GoverningBoard, the IPC Sport Governance andManagement Initiative has led to aredrafting of the IPC Sport TechnicalCommittee bylaws, as well as therestructuring of the IPC Sport TechnicalCommittees. An organizational alignmentexercise focused on strengthening IPCsports by clarifying roles, responsibilitiesand dedicating resources with a strategicfocus.

A commitment was also made to hire IPCSport Managers to further support thegoals of the initiative. Nine IPC SportForums were conducted throughout thecourse of the year, most on the occasionof the respective IPC WorldChampionships, which providedopportunities for sport leaders to debateproposals and exchange information onmatters concerning the futuredevelopment of each of the IPC Sports.

The promotion of IPC Sport self-governance made significant strides thisyear with two IPC Sports achievingtransfers of governance to theirrespective international federations,specifically IPC Equestrian to theInternational Equestrian Federation (Para-Equestrian) and IPC Cycling to theInternational Cycling Union (Para-Cycling).Both of these transfers reinforced thegrowing trend among a number ofinternational sport federations to embraceParalympic sport as an integral part oftheirstrategic direction.

Photo: © Prezioso

Ensuring IPC memberorganizations havedefined roles andresponsibilities, areable to sustain theiroperations and areaccountable andeffective whendelivering theiractivities.

MembershipDevelopment


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OUR MEMBERSHIP BODY

IPC has 178 members, 161 NationalParalympic Committees (NPCs), two ofwhich are suspended (Cameroon andMozambique), four IOSDs, nineInternational Federations (IFs) and fourRegional Organizations (ROs). Since the2005 General Assembly (GA), theGoverning Board has approved provisionalmembership for seven organizations, twoNPCs (Liberia and Panama), one RO(Asian Paralympic Committee) and fourIFs: The International Rowing Federation(FISA), International Equestrian Federation(FEI), International Cycling Union (UCI) andthe International Table Tennis Federation(ITTF). These provisional memberships willbe ratified at the 2007 General Assembly.

As part of efforts to improve themanagement of this large membershipbase, IPC published a series of definedand agreed upon roles, responsibilities andaccountability mechanisms for each of thefour membership categories. Theseappeared in the Rights and Obligationssection of the IPC Handbook, which wasreleased in June.

SUPPORTING THE MOVEMENT

IPC's membership organizations givepeople all over the world the chance to beempowered and inspired throughparticipation in Paralympic Sport.Membership organizations must be activeand self-sustainable to play a vital rolewithin the Paralympic Movement. This wasachieved through a number ofdevelopment projects, which took placethroughout the year.

Nowhere was it more apparent that NPCsdeliver excellent services in the mostdifficult circumstances than in tsunami-devastated areas of Sri Lanka. IPCworked with the National ParalympicCommittee of Sri Lanka and the AsianParalympic Committee to deliver theRehabilitation through Sport in TsunamiAffected Areas (RESTA) project.

RESTA provided mobility aids, includingwheelchairs and prosthetic limbs to 72people affected by the tsunami in sevendistricts. Specialised training was given tocoaches and administrators from sportclubs in each of the areas.

Throughout the year, remarkable work wasdone to address athlete, leadership andorganizational development. A shiningexample of this could be seen in theefforts made by the Women in SportCommittee to raise awareness of genderequality and leadership within theParalympic Movement.

After the 2006 National Women in SportsLeadership Training sessions were held inNiger (25 participants) and Kenya (44participants), NPCs set up their ownwomen in sports committees anddeveloped National Action Plans to

MEMBERSHIP DEVELOPMENT

Photo: © Mark Zibert


address leadership and equality. A Womenin Sport Leadership toolkit was created tohelp IPC member organizations tacklethese issues.

2006 was also the second year of thehighly successful Healthy Paralympiansprogramme, delivered by NPCs inRwanda, Uganda and Tanzania to improvehealth education and raise awareness ofHIV/AIDS. As a result of the programme,the only one of its kind, more than 1,000aspiring Paralympic athletes receivedhealth education and an opportunity to tryout Paralympic Sports. Local clubs werecreated and new volunteers wererecruited to work with NPCs.The HealthyParalympians Programme compels policymakers to take notice of the valuable rolepeople with disabilities play in society,making them aware of how important it isto include them in health educationprogrammes.

In 2006, IPC provided 14 DevelopmentGrants totalling 41,000 Euros to memberorganizations. The money was used tosupport the following events:

National Paralympic Day in SloveniaAthletics Classification and Training Sessionin LebanonAdaptive Rowing WorkshopAn Introductory Seminar on Football inBulgariaThe Paralympic Film Festival in HungaryA Seminar for Athletes, Coaches andAdministrative staff in Turkmenistan,Alpine and Nordic Skiing DevelopmentCamps Football 7-a-side Classification ResearchWheelchair Basketball and WheelchairRugby Classification Clinics.

ATHLETE REPRESENTATION

To be truly successful a sport-centredorganization needs direct input frompeople that live and breathe sport everyday. This is why IPC has continued todevelop its Athletes' Council - an electedbody of athletes, which meet with theGoverning Board once a year to makerecommendations on decisions made at alllevels of the organization. The primary goalof the Athletes' Council is to ensure thatIPC's priorities are athlete-centred.

The Council is composed of nineParalympic athlete representativeselected for a four-year term. Six athletesare elected during the Paralympic SummerGames and the remaining three during theParalympic Winter Games. At the 2006Torino Paralympic Games, KatarzynaRogowiec (Nordic Skiing, Poland), HansBurn (Alpine Skiing, Switzerland) and EskilHagen (Ice Sledge Hockey, Norway) werevoted into the council.

MEMBERSHIP DEVELOPMENT


ResourceCreation

Photo: © Phil Cole

IPC has a solid andsustainable human and

financial foundationthat ensures its long-

term viability.

IPC ANNUAL REPORT 2006

OUR CORPORATE PARTNERS/PATRONS

The year 2006 proved to be critical for thegrowth in corporate support for the IPC.The remarkable achievements of 2006would not have been possible without thecore funding generated from the IPC'sWorldwide Partners and Patrons.

In February 2006, the IPC signed apartnership agreement with Samsung, justin time for the Torino 2006 ParalympicWinter Games. Following these Games, theIPC also welcomed on board Allianz andDeutsche Telekom as the first two GoldPatrons of the IPC.

Visa reinforced its position as IPC's firstWorldwide Partner, by sponsoring thelaunch of the Paralympic Hall of Fame, aswell as becoming Presenting Sponsor(together with Samsung), ofParalympicSport.TV, the new IPC 24/7,free internet TV channel. Otto Bock, whobecame Worldwide Partner of the IPC in2005, continued to show its support andcommitment throughout 2006. Électricitéde France (EDF) maintained itscommitment as Silver Patron of the IPC.

In 2006, the IPC received a significantfinancial contribution from the GermanGovernment (Federal Ministry of theInterior, the State of North Rhine-Westphalia and the City of Bonn)amounting to EURO 240,000. In addition,the 2006 VISTA Conference wassupported by the Federal Ministry of theInterior with a grant.

FINANCIAL MANAGEMENT AND COSTEFFICIENCY MEASURES

IPC utilized a number of financialprocedures to ensure its resources weremanaged in a cost efficient andeconomical way. IPC's financialmanagement benefited from tighterinternal controls and the continued use ofhedging systems to reduce exchangelosses. Processes used for payments,transfers and budgets became moreefficient and all systems were in fullcompliance with German Code, tax lawsand HR legislation.

A customer relations managementdatabase was set up to improve the dailyworking functions of IPC, providing onlinecontact for staff and membershiporganizations. Plans are being developedfor key stakeholders to have access to thedatabase, which will aid clear andtransparent communication, andconsolidate positive relationships.

RESOURCE CREATION

Gold Patrons:

Worldwide Partners:


Games Success

The Paralympic Gamesare a viable, sustainableand distinctive sportingexperience that inspires

and excites the world.

Photo: © CPC

TORINO - AN OPERATIONALSUCCESS STORY

The magic witnessed on the slopes and iceof Torino during the 2006 ParalympicGames left no doubt in anyone's mind thatthe Games are still one of the world's mostexhilarating and exciting sporting events.

Torino was the first Paralympic Games tobe managed by IPC's Games Co-ordinationOffice (GCO) - an onsite control centrethat ran the day-to-today operations of theevent and acted as the first point ofcontact for services provided. The GCOcreated strong links with local authoritiesand the Organizing Committee, whilesending regular updates to IPC's CEO.GCO provided a complete overview ofissues that arose during the course of theGames and supported executive decision-making processes.

LOOKING TO THE FUTURE

IPC not only ensured smooth operationsduring the Games it also organized theParalympic Observers Programme,designed to give future organizingcommittees an insight into the operationalmanagement of a major sporting event.The organizing committees of the Beijing,Vancouver, London Paralympic Games andbid cities were in attendance. Organizersof the Track and Field WorldChampionships, the Special Olympics andthe Skiing World Cup were also present.

Knowledge workshops were heldthroughout the year, two of which tookplace in Beijing and one in Vancouver.Organizing committees were briefed on theParalympic requirements needed for allevent functions. This will ensure that theParalympic Games will develop a clearidentity and provide excellent services that are both sport and athlete focused. InJune IPC provided a comprehensivedebriefing on the Torino Games to theInternational Olympic Committee (IOC),detailing the requirements bid cities wouldhave to meet to successfully host theParalympic Games. IPC provided itsfeedback to the IOC for applicant cities, aswell as candidate cities. The information oneach city was gathered with a series ofdetailed questionnaires, which focused onmarketing, accommodation, venue, sportsand the vision of the Games.

A Paralympic Games Master Schedulewas drawn up to improve the planning andmonitoring of all Games related activitiesand further technical guidelines weredeveloped with the IOC for organizingcommittees. These guidelines will becomelegal requirements when they form part ofthe Host City Contract signed in 2007.

GAMES SUCCESS

Photo: © Prezioso

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IOC-IPC AGREEMENT

In strong support for the ParalympicGames the IOC extended its agreementwith IPC from 2012 to 2016. IPC now haslong-term commitment to continuemanaging future Paralympic Gamesshortly after the Olympic Games. Thismeans Paralympic athletes will benefitfrom the same excellent sports venuesand facilities as Olympic athletes. IPC'sfunding for the 2014 and 2016 Games hasalso been increased as part of theagreement, signed in Lausanne,Switzerland in June.

A VEHICLE FOR SOCIALDEVELOPMENT

The value and benefits of the ParalympicGames continue long after the spectacularclosing ceremony. The host countryinherits a long term sporting legacy,accessible sport facilities, as well as theresources needed to stimulate large-scalesocial change.

The Games increase the interest in theParalympic Movement and, thereforeencourage sport to develop in a way that'smore inclusive.They also have an impacton the way persons with a disability areperceived in the host country, thusimproving their position insociety.Throughout 2006, IPC furtherdefined its approach to legacy, ensuring itwas aligned with its Paralympic GamesPrinciples.

Processes and strategies were developedto monitor the influence the Olympic andParalympic Games have on each other.

IPC began to integrate its own ParalympicGames methodology PGI with the OGI,which was developed by the International Olympic Committee (IOC). By integratingthese two methodologies, the way impactand legacies are measured will beimproved. IPC's revised approach will alsoset legacy and impact goals for hostcountries, allowing IPC to define its ownframework of analysis and developstrategies and documentation to ensurethat legacy projections can become areality. IPC wants to see legacy plannedfor throughout the organization of theParalympic Games, so that host countriesare fully equipped to manage, develop andmaintain good legacy practice after theGames. Extensive work in this areaculminated in the Legacy LivesConference, held in London in January2007.

GAMES SUCCESS


A brand with definedattributes and clearmessages that isrecognised in thesporting environmentinstantly understoodby the general publicand the media andvalued by partners.

GlobalRecognition


GLOBAL RECOGNITION

PARALYMPIC VALUES

Determination, courage, inspiration andequality are considered the Paralympicvalues. The Paralympic Movement lives bythe courage, strength and determination ofParalympic Athletes who consistentlyinspire and excite the world by achievingthe unexpected. Our athletes reachbeyond the conventional demands ofathleticism just to compete, let alone win.First of all they must win the battle againsttheir own disability. It is this display ofextraordinary human spirit that makes theParalympic Games one of the world's mostunique and exciting sporting events. The Paralympic values are the drivingforce behind the Paralympic Movementand IPC strives to ensure that they areglobally recognised and easily understood.

DEFINING AND DEVELOPING THEPARALYMPIC BRAND

In 2006, a report commissioned by themarketing agency Helios Partnersdetermined ways to communicate anddevelop the Paralympic Brand through theuse of marketing and communicationsstrategies. The report highlighted that theperception of Paralympic Sport - as anelite sporting event, social movement, orcharitable organization - varies greatlybetween those who are close to theParalympic Movement and those whohave little awareness. Therefore, IPC mustbe realistic in its communication andpromotion of Paralympic Sport,recognising how highly the human-interestelements of Paralympic athletes resonatewith the public. The report concluded thatthe Paralympic Brand should use sport asa path to reach its ideals and values, whileembracing the roots of its history andusing the Paralympic Games to promoteits key messages. The report will also helpkey stakeholders to better align with theParalympic Brand.

RAISING AWARENESS

IPC's efforts to combat discriminationagainst persons with a disability finallyreceived the recognition it deserved whenit formed part of a treaty ratified by theUnited Nations in August. After five yearsof negotiations, history was made withpassing of the UN Convention on Rightsfor Persons with a Disability. IPC madesubstantial contributions to Article 30.5,stipulating that persons with a disabilityshould have equal choice and access tosport. Paralympic values ofunderstanding, determination and courageare passed on to future generationsthrough the Paralympic School Day (PSD).This educational programme was designedto create awareness and understanding ofpeople with a disability amongst schoolchildren. The two-year project, targets atstudents aged between six and 15 andwas launched in six European countries.

HONORARY BOARD

In 2006, IPC announced five newmembers of its Honorary Board: HRHCrown Princess Victoria of Sweden,former president of the World Bank JamesWolfensohn, international opera star MariaGuleghina, HRH Princess Haya Bint AlHussein of Jordan and HSH Prince AlbertII of Monaco. With the two initial HonoraryBoard Members, HRH Princess Margrietof the Netherlands and HRH MariaTeresa, Grand Duchess of Luxembourg,the IPC now has seven high-profilemembers in its Honorary Board.The IPC Honorary Board encouragesleaders of society to support the vision ofthe Paralympic Movement and use theirprofile to ensure that Paralympic Sport ishigh on the global agenda. They also playa valuable role in helping IPC raiseawareness and attract funding.

28

CAPTURING THE EXCITEMENT OFTHE GAMES

The excitement and action of theParalympic Games was captured andcommunicated through extensive highquality broadcast and print coverage. Thiswas particularly noticeable at the Torino2006 Paralympic Games, which benefitedfrom extensive media attention, as well asthe publicity generated from IPC's firstinternet television channelwww.ParalympicSport.TV, tuned into bythousands of people all over the world.

Progress has also been made in thedevelopment of a robust media strategy toincrease the visibility of the ParalympicGames. Edelman Communications becameIPC's first worldwide PR agency andworked with the Media Department todevelop and implement an innovativecommunications strategy. This strategyseeks to maximise the recognition,understanding and exposure of theParalympic Brand, establishing it as acredible vehicle to reach athletes with adisability, their supporters and the broaderpublic.

Ongoing promotion of the ParalympicMovement continued through theorganization of IPC events and the use ofpublications, media relations and thewebsite.

PROTECTING THE PARALYMPICLEGACY

The inspirational legacy of the ParalympicMovement will never fade from livingmemory due to efforts made to record themomentous occasions that have markedits history so far.

2006 saw the publishing of ParalympicWinter Games, 30th Anniversary - apresentation book looking back over thefascinating history of Paralympic WinterSport.

IPC has made improvements to itsDocument Centre to ensure that importantevents relating to the ParalympicMovement are catalogued, conserved andaccessible. The centre now has two morearchive rooms with climate control. TheParalympic Games archive collections havenow been moved to these rooms and themajority of books in the IPC Library havebeen catalogued on an electronicdatabase. The Documentation Centre hassupported researchers in gatheringinformation on the history of theParalympic Movement, as well asmanagement team members in transferringinactive records to IPC archives.

GLOBAL RECOGNITION



30

Once more, the IPC concluded asuccessful financial year in 2006 andclosed the books reporting a surplus ofEURO 55.245 with a total revenue ofEURO 5.186 million and an expenditure ofEURO 5.131 million.

About 40% of IPC's core funding wasgenerated through the Paralympic Gamesmarketing right sales. The second largestfinancial source (28%) came from grantsfrom the IOC and the GermanGovernment (City of Bonn, North-RhineWestphalia, Federal Government) andrevenue from Capitation Tax related toIPC Sports activities.

In addition, the IPC raised EURO 490,000from further fundraising and sponsoringactivities, partly related to IPC'sBroadcast and ParalympicSport.TVinitiative. As direct revenue from the 2006Torino Paralympic Broadcasting activities,IPC received the amount of EURO 1,16million.

On the expenditure side all budgetplanning was on target. In addition topersonnel costs, which amount to 40% ofthe total core expenditure, the grants

allocated directly to sports were thesecond largest expenditure with 19% ofthe total. The increase in this budget fromFY 05 to FY 06 is also related to the factthat we built up a financial provision forIPC Sports to guarantee their long-termdevelopment. The 2006 Torino ParalympicBroadcasting production had a direct costfor IPC amounting to EURO 1,17 million.

In 2006, an external audit was conductedby Deloitte & Touche. The following pagespresent the summarised financialstatements for 2006 (financial positionsand financial performance), withcomparative figures for the previous year.

FINANCIAL INFORMATION 2006



INDEPENDENT AUDITORS' REPORT

We have audited the annual financial statements comprising balance sheet and incomestatement, together with the bookkeeping system, of the International ParalympicCommittee (IPC) e.V., Bonn, for the business year from 1 January to 31 December2005. The maintenance of the books and records and the preparation of the annualfinancial statements pursuant to German commercial law are the responsibility of theIPC's legal representatives.

Our responsibility is to express an opinion on these annual financial statements, togetherwith the bookkeeping system, based on our audit. We conducted our audit of the annualfinancial statements by appropriate application of sec. 317 German Commercial Code(HGB) and German generally accepted standards for the audit of financial statementspromulgated by the Institut der Wirtschaftsprüfer.

Those standards require that we plan and perform the audit such that misstatementsmaterially affecting the presentation of the net assets, financial position and results ofoperations in the annual financial statements in accordance with German principles ofproper accounting are detected with reasonable assurance.

Knowledge of the business activities and the economic and legal environment of the IPCand evaluations of possible misstatements are taken into account in the determinationof audit procedures. The effectiveness of the accounting-related internal controlsystem and the evidence supporting the disclosures in the books and records and theannual financial statements are examined primarily on a test basis within the frameworkof the audit.

The audit includes assessing the accounting principles used and significant estimatesmade by the legal representatives, as well as evaluating the overall presentation of theannual financial statements. We believe that our audit provides a reasonable basis forour opinion.

Our audit has not led to any reservations. In our opinion, which is based on the resultsof our audit, the financial statements of the International Paralympic Committee (IPC)e.V., Bonn, comply with the legal regulations.

Düsseldorf, 17 February 2007

Deloitte & Touche GmbHWirtschaftsprüfungsgesellschaft

Crampton Dr. LochWirtschaftsprüfer Wirtschaftsprüfer[German Public Auditor] [German Public Auditor]

32 32


2005 (€)

186,800

379,295

794,335

27,207

1,387,637

2005 (€)

140,523

32,800

926,033

288,281

1,387,637

STATEMENT OF FINANCIAL POSITION (at 31 December 2006)

ASSETS

Fixed Assets

Current Assets

Cash and Bank Balances

Prepaid Expenses

Total Assets

LIABILITIES AND EQUITY

Equity

Provisions

Liabilities*

Deferred Income

Total Liabilities And Equity

2006 (€)

196,342

149,615

1,152,131

25,444

1,523,532

2006 (€)

195,768

305,928

954,389

67,447

1,523,532

* The liabilities include a loan of EURO 825.000 from International Olympic Committee (IOC)

REVENUE

Membership fees Marketing/Sponsoring/FundraisingBroadcastingGrantsOtherSpecific Project Funding

Total Revenue

EXPENDITURE

Executive OfficeParalympic Games LiaisonAdministrationSports BudgetsSport and IPSFs RelationsMedical and ScientificFinanceMedia and CommunicationMarketing and FundraisingMembership Services and SolidarityDevelopmentBroadcastingSpecific Project Expenditure

Total Expenditure

RESULT FOR THE PERIOD

2006 (€)

170,3192,214,9561,162,2541,005,258

186,377447,237

5,186,401

2006 (€)

341,644232,463

1,721,187667,82987,85967,20891,60672,502

122,51021,18995,668

1,179,424430,067

5,131,156

55,245

2005 (€)

135,7181,998,191

12,985940,911140,669181,137

3,409,611

2005 (€)

263,86985,676

1,693,013452,272112,95164,30988,06569,250

163,17255,80485,16210,339

181,137

3,325,019

84,592

STATEMENT OF FINANCIAL POSITION (at 31 December 2006)

1) Marketing fees from Organizing Committees, Sponsoring and Fundraising Revenue2) German Government (City of Bonn, North-Rhine Westphalia, Federal Government), IOC,Capitation Tax3) Project related resources to Development initiatives, IPC VISTA Conference and ParalympicSport.TV4) Administration, Salaries for IPC Headquarters Staff and Depreciation5) Grants to IPC and IF Sports and provision for IPC Sports

1)

2)

3)

4)5)

3)

33 33


International Paralympic CommitteeAdenauerallee 212-21453113 Bonn, Germany

Tel. +49-228-2097-200Fax. +49-228-2097-209

E-mail: [email protected]

www.paralympic.orgwww.paralympicsport.tv

© IPC 2007

Front Cover photo ©: Lars Baron

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