An Independent Financial Audit will be conducted by the International Olympic Committee (IOC) into grants it awards to the various International Federations and National Olympic Committees (NOCs) including the Bermuda Olympic Association in a bid to increase transparency within sport in the midst of corruption and doping scandals, Thomas Bach announced.
The process, to be initiated in 2016 and cover finances, as well as good governance aspects, was adopted by the IOC Executive Board at the conclusion of its meeting here.
It has the support of both the Federations and NOCs, according to the IOC, and 89 out of the 206 NOCs have already begun financial audits.
The news follows the Association of Summer Olympic International Federations adopting its own good governance task forces which aims to "practically support the Federations’ intention to ensure good governance within their own structures".
The IOC also claim several Federations from across the world “feel affected by incidents in some sports organizations and are concerned their reputation is being tarnished by generalization”.
Bach said: “The audit has to be independent as we don’t have the expertise in this area.
“Part of this process is already underway.
“We want to show the money that is coming from sport is going to sport.
“It is important that the decisions on who is benefitting from these contributions are being taken by respecting the rules of good governance.”
The IOC President also revealed the audit will cover the operational budget for next year’s Olympic Games in Rio de Janeiro but not construction contracts for the Olympic venues.
Earlier this week it was revealed that FIFA's acting secretary general Markus Kattner had highlighted “major deficiencies” and that beneficiaries of FIFA’s $350 million (£233 million/€322 million) Financial Assistance Programme (FAP) are falling down on basic record-keeping requirements.
“Recent incidents have shown that, in the interest of the credibility of all sports organizations immediate action to reinforce good governance is necessary,” Bach said.
The development comes as part of the IOC’s attempt to ensure the “protection of clean athletes in sport” amid the doping crises which has engulfed athletics in recent times, leading to the suspension of Russia by the International Association of Athletics Federations for alleged involvement in “state-supported” doping.
It is hoped the good governance structures being implemented will help prevent future corruption and doping scandals by enhancing the transparent nature of sports organizations.
The organization had already revealed the International Institute for Management Development (IMD), based in Lausanne, will undergo a review process of the current standards of governance within the IOC.
IMD are due to present their findings for consideration in March, coming after they conducted an extensive analysis, which includes interviewing all members of the Executive Board as well as the IOC’s external stakeholders.