The London Games still has "plenty of hurdles to jump" amid continued concern over the potential need to use the contingency fund and the legacy of sections of the Olympic Park.
Locog, the local organising committee, remain on course to deliver the venues and infrastructure on time and within the £9.325bn budget, according to a largely positive report from the National Audit Office. But following the withdrawal last year of £621m to finance the Media Centre, the NAO warns that there is "less contingency funding available to meet unforeseen cost pressures" meaning there is less room to manoeuvre.
"Plans for the delivery of the Games themselves need to be fleshed out, in particular making sure that Locog is on track at least to break even," said Amyas Morse, head of the NAO. "In addition, securing long-term use of facilities such as the Media Centre and the Main Stadium should remain a priority."
Edward Leigh, chairman of the Public Accounts Committee, said: "There are plenty more hurdles which the delivery team are yet to jump. Locog must also work with government to ensure they at least break even to prevent the taxpayer having to pick up another bill."
A spokesman for the Department of Culture, Media and Sport said: "It is good news ... however, we are not complacent about the risks that remain."
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