The FIA has released details regarding their approach to ensuring a swift resolution for the Formula 1 cost cap audit in the upcoming 2022 season.
In the preceding year, three teams – Red Bull, Williams, and Aston Martin – encountered issues with the regulations.
Teams submitted interim reports last year, with full submission being made on March 31, 2023. In an effort to enhance the procedure for the teams, the FIA has undertaken substantial modifications in recent months.
Federico Lodi, FIA Single-Seater Financial Regulations Director, explains modifications:
“It’s clear that there is an interest from the stakeholders to have a quick outcome.
“We have strengthened the department, and now we have 10 full-time employees working on Formula 1 financial regulation. This is a significant increase over last year, when it was just four.”
Given the constraints faced by the FIA, Lodi highlighted the challenge of adhering to a strict timeline due to teams submitting extensive documents of 150-200 pages each.
“There are many variables that need to be taken into account. First, there are the findings themselves – what we identify and what we need to dig into further,” said Lodi.
“On top of that, we also have to take into account the fact that we do the review with the support of the team, and obviously, the finance department of the team is also busy with running its business; they may also have a reporting commitment to their shareholders for example.
“So, while we need to work as quickly as possible, for us the most important thing is not to undermine the robustness of the process.”
He further clarifies that with the passage of time, teams will progressively learn to optimize the internal process within their own organizations for greater efficiency.
“The more everyone becomes accustomed to the regulation, the more you become accustomed to the process, the more we are structured, and clearly the time will be reduced,” said Lodi.
“We have to be realistic, because I don’t think that it will be feasible to finalise the review after one month or 45 days. It also depends on the findings, because if you need to open a formal investigation, it takes time.
“There are lawyers involved, advisory boards, so the process is a long one. But we have a clear target in mind to do it quicker.”
