BBC Trustees’ expenses BBC Trust expenses policy In line with its commitment to transparency and openness, the Trust decided in April 2008 to publish Trustees’ individual expenses with effect from April 2007. These are published on a six monthly basis. This publication of expenses covers the first half of the 2008/09 financial year (1 April to 30 September 2008). The Trust’s code of practice sets out the principles by which Trustees undertake their duties and observe the highest standards of propriety with respect to the stewardship of public funds and the governance of the BBC. It also provides guidance on the support Trustees should expect in performing their roles and the Trust’s expenses policy. A summary report and the full expenses are below. Trustees’ expenses are scrutinised by the Trust’s Finance and Compliance Committee every six months in line with the Trust’s code of practice. Explanatory notes on expenses information The reported expenses include the costs of all travel, accommodation and other support services for individual Trustees. The majority of these expenses are costs incurred through the BBC’s central procurement systems for travel and accommodation. These are listed as ‘Central Procurement’. 'Out of pocket' expenses, where Trustees have incurred the costs and subsequently claimed for reimbursement, are listed as ‘e-expenses’ or ‘manual expenses’. The variation in travel and accommodation expenses between Trustees reflects their respective time commitments and duties, the range of activities they undertake, the location of their homes and other individual factors. For example, the Chairman and Vice Chairman have additional time and other commitments attached to their roles, the National Trustees have specific responsibilities related to chairing the Audience Councils, various Trustees are located outside London (eg the Chairman is based in the Midlands) and all Trustees are required to travel around the UK to some extent. Compared against the last set of published expenses, the Chairman’s costs have increased. Note the two sets of expenses cover different time periods (the Chairman was appointed part way through the last financial year and these figures only cover a six month period). Reasons for the rise are summarised below. These expenses include the Chairman’s driver costs in the figures for the first time (as reported in the 2007/08 BBC Annual Report & Accounts, the Chairman has part-time access to a BBC driver when working in London on BBC business. The BBC Trust contributes £25,000 per annum from its budget to cover its share of the cost of the driver and car. Half of this annual cost is included in the six monthly expenses). On occasions when the Chairman’s regular BBC driver is unavailable an alternative driver and car may be hired for the day. Costs incurred will normally encompass multiple journeys. His overall costs also reflect the increase in his duties since his arrival and a programme of visits to various parts of the UK and allow him to meet a wide range of stakeholders. Note that Dermot Gleeson’s term as Trustee ended on 31 October 2008 and his expenses are included in the report. Anthony Fry’s term as Trustee began after this reporting period on 1 November 2008. His expenses will be reported in the next six monthly report. Specific notes on terms used in the expenses data are included below. 1. Business entertainment The Trust code of practice recognises that Trustees are expected to attend events and engage with a wide range of stakeholders. The Trust Unit organises a number of meetings and events around the UK to assist Trustees in meeting and listening to a range of external stakeholders and licence fee payers. Costs of these meetings and events are not included in the Trustees’ expenses. The main events where Trustees provided hospitality to external contacts are listed below. Hospitality provided: Date Event Cost 6 July 2008 Wimbledon Tennis Championship – Sir Michael Lyons and Diane Coyle hosted an event for opinion formers. £9,803.99 19 July 2008 BBC Proms – Chitra Bharucha hosted a box for external opinion formers. £451.25 21 July 2008 BBC Proms – Mehmuda Mian hosted a box for external opinion formers. £511.95 8 September 2008 BBC Proms – Patricia Hodgson hosted a box for external opinion formers. £621.35 9 September 2008 BBC Proms – Janet Lewis-Jones and Diane Coyle hosted a box for external opinion formers. £664.25 13 September 2008 BBC Proms - Sir Michael Lyons hosted a box for external opinion formers. £1587.55 a. external Covers any business entertainment provided to external parties (includes meals and refreshments). Trustees can only claim the cost of business related hospitality. The code of practice recognises that liaising with a range of stakeholders is an expected part of a Trustee’s role, but requires that there is a demonstrable and appropriate business reason for providing hospitality. b. internal Covers any business entertainment provided to members of the BBC (includes meals and refreshments). The same Trust code of practice rules apply to internal entertainment as external entertainment, and only business related hospitality can be claimed. 2. Subsistence Covers meals when working away from home. 3. Mileage Covers costs payable to Trustees using their own car when travelling on BBC Trust business. The standard public service mileage rate is used. 4. Accommodation Covers the cost of accommodation when away from home on BBC Trust business. Accommodation costs listed are per booking and therefore may cover more than one night’s accommodation and meals at the accommodation. Wherever possible, if several nights’ accommodation has been listed as one cost, this has been noted. Where accommodation was in London and therefore likely to incur higher hotel rates, this has also been noted. 5. Travel (other costs) Covers travel costs not included under other headings, such as parking or road tolls. 6. Flights Covers the cost of flights incurred on BBC Trust business. All reported flights are UK domestic unless marked. 7. Cars Covers use of cars with drivers when on BBC Trust business (including mini cabs, taxis, and long distance private hire cars). Reported single car costs include journeys that may cover several destinations. Cars may be shared between Trust members, but the costs will only be allocated against one name. Cars are booked for Trustees for long distance journeys when public transport is not a feasible alternative for carrying out Trust business or a car is the most cost effective option available. 8. Rail Covers the cost of rail and tube journeys to attend BBC Trust business. Some rail costs may cover multiple journeys or weekly season ticket costs. 9. Other expenses Covers other categories that may be claimed in accordance with the code of practice. This includes satellite subscriptions (set to a maximum), audio visual equipment and office supplies. Trustees are offered home use of audiovisual equipment to enable them to experience the full range of television and digital radio channels available (including satellite subscriptions) in support of their responsibility supervising the BBC’s services and their operation within the wider media market. This equipment remains the property of the BBC and is on loan to Trustees. It must be either returned or purchased at the end of a Trustee’s term. Satellite subscriptions are capped at the approximate cost of a basic high definition subscription (i.e. £25 per month). 10. Transaction dates The date reported for individual amounts is generally the date that an expense is paid and not when it was incurred. 11. Other i. Negative amounts Occasionally, negative amounts are shown in the report. These are refunded costs, for example when a travel booking has been cancelled. ii. Personal data Personal data has been removed from the published expenses (for example the postcodes for car destinations, hotels where Trustees stay). Trustees Expenses for April 2008 - September 2008 TrusteeBusiness Entertainment- ExternalBusiness Entertainment - SubsistenceMileageAccommodationTravel (other) Travel - DriverFlightsCarsRailOther ExpenditureTotal* ChairmanSir Michael Lyons*£425.15£81.79£183.42£107.60£8,156.69£58.60£16,367.95£1,346.80£2,804.62£5,449.20£145.00£35,126.82Vice ChairChitra Bharucha£87.83£3,459.10£568.90£2,508.78£1,667.25£462.15£8,754.01Trust Member for Northern IrelandRotha Johnston£1,990.85£3,454.96£981.74£153.50£573.57£7,154.62Trust Member for ScotlandJeremy Peat£764.80£5,908.68£102.10£5,053.60£1,923.96£1,097.60£200.00£15,050.74Trust Member for EnglandAlison Hastings£78.78£89.24£3,465.48£35.00£130.50£1,690.96£2,702.00£150.00£8,341.96Trust Member for WalesJanet Lewis-Jones£1,441.60£4,108.00£245.70£487.80£729.75£2,704.00£156.00£9,872.85Trust MemberPatricia Hodgson£60.00£325.00£993.48£168.40£1,546.88Trust MemberDavid Liddiment£325.00£364.40£166.62£856.02Trust MemberMehmuda Mian £125.00£110.60£128.02£85.00£448.62Trust MemberDermot Gleeson£2,205.62£168.10£269.06£218.00£2,860.78Trust MemberRichard Tait£325.00£178.40£1,437.67£1,941.07Trust MemberDiane Coyle£44.40£325.00£0.90£443.50£180.65£432.90£123.24£1,550.59TOTAL£469.55£160.57£360.49£2,374.00£30,719.42£442.30£16,367.95£12,307.56£13,815.31£14,459.85£2,027.96£93,504.96* Sir Michael Lyons' expenses total includes half of the annual £25,000 cost for his access to a BBC car and driver. These costs are already reported in the BBC Annual Report and Statement of Accounts and is included here for completeness.