Category: BBC

Date: 25.11.2004
Printable version

The BBC's Board of Governors held meetings at the Media Centre, White City, London, yesterday and today.

1. Delivering Building Public Value: the four strategic reviews

Since our October Board meeting - when we received progress reports - Governors have met our own team of advisers and two external consultants to analyse the recommendations emerging from management on the four strategic reviews:

Out of London

Commercial Services

Content Supply

Value for Money

At our meetings this week, we have restated our full commitment to the long term ambitions in Building Public Value and endorsed the strategic framework within which implementation planning will take place.

We agreed that more detailed scrutiny will be necessary before the Board can confirm how these proposals can be funded and deliver more efficient and effective BBC services to our licence payers.

We will resume these discussions at our meeting with the Executive Board on 1 December. But following that meeting, we are confident that the Director-General will be able early in December to provide clarity for BBC staff about the findings of these reviews and next steps in developing proposals for the Governors.

2. Ernst & Young review of the BBC's system of financial controls

The Board of Governors commissioned Ernst & Young to carry out an independent review of the BBC's system of financial controls in August.

The Board was briefed by Ernst & Young in October and has now received its findings and recommendations.

Ernst & Young has concluded that the BBC's system of financial controls and procedures is fundamentally sound, but that a number of specific controls need tightening and that some budgetary processes need to be reviewed in the interests of improved accountability and value for money.

Ernst & Young has submitted its recommendations and the Governors have passed these to the Director-General, Mark Thompson, and Chief Operating Officer, John Smith, for action and have requested they report on implementation to the next Audit Committee meeting in December.

On behalf of the Board, BBC Chairman Michael Grade said:

"The BBC must be conscious always that it is funded by public money. As the custodians of this public money, the Governors have a duty to monitor the BBC's financial controls.

"The Governors are reassured that this review by Ernst & Young has found the BBC's overall system of financial controls to be fundamentally sound.

"As part of our new governance arrangements, the Governors are committed to strengthening our methods for monitoring the BBC's financial performance and this will include commissioning ad hoc reviews of this type."

Mark Thompson, Director-General, said: "Ernst & Young's recommendations are timely. BBC management is committed to delivering the best value for licence fee payers and I, along with all my Executive colleagues, will ensure we continue to improve the BBC's performance."

Ernst & Young's management letter is available in PDF format towards the top of this page, on the right.