2023-07-24 17:23:47
The FIA has become aware of the need for F1 and the teams to produce reliable and rapid conclusions under the sway of the financial regulations recently put in place. As a result, the workforce assigned to this task within the organization more than doubled in 2023…
The establishment of financial regulations that are intended to be strict in order to govern the resources that can be exploited by the F1 teams cannot be done without some trial and error and full collaboration between all the parties concerned.
As much as they are controlled and monitored by an institution, the teams also have pressure tools on the FIA, in particular because they share, with the championship promoter, the need to give credibility to their investment through official results leaving no room for doubt, and analysis conclusions produced in acceptable time.
This is why the FIA is expected at the turn and is investing significant resources in a more efficient and faster method of reporting its analyses, without diminishing the quality of these complex controls.
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Ten employees involved in the F1 budget verification procedure
The first month is usually spent doing a detailed review of all documentation to identify areas that require a bit more in-depth analysis. “We then identify follow-up questions and request further documentation, if necessary, in preparation for our expected arrival on site”explains Federico Lodi, former financial manager of Toro Rosso and director of financial regulations of the FIA for single-seaters, in an exclusive interview granted to Motorsport.com.
“That’s when we undertake an on-site audit, which usually starts in early May. From there, we spend months on the road, visiting team after team and approving their case.”continues Lodi.
Given the scale of the operation, it’s no surprise that it takes time to review everything.
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However, Lodi is well aware that F1 as a whole cannot wait as long as last year, when confirmation of Red Bull’s penalty came almost seven months after the last submissions.
“It is clear that stakeholders have an interest in seeing things happen quickly”he says. “As the FIA, we understand these requirements, which is why we have reinforced the department, and we now have 10 full-time staff working on F1’s financial regulations. This is a significant increase from last year when there were just four.
However, it remains difficult for the Fédération Internationale de l’Automobile to commit to delivery times according to a rigid schedule, as many variables must be taken into account. “First, there are the results themselves – what we identify and what we need to investigate further”explains Federico Lodi.
“Additionally, we also have to take into account that we are carrying out the review with the support of the team and that of course the finance department of the team is also very busy managing its business; it may also have a commitment to reporting to its shareholders, for example. Although we need to work as quickly as possible, the most important thing for us is not to compromise the robustness of the process.”
A difficult recruitment of auditors
Lodi acknowledges that recruiting the right people for her extended team has not been easy due to the nature of the profiles sought and the speed of action required…as well as the fact that these people are often of interest to the teams themselves!
“It’s extremely complicated. All the members of our department are former listeners. That’s no problem, the pool of listeners is quite large. The challenge is to find someone with a sports background, then a motorsports background and finally a knowledge of F1, because it is specific.
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