Select Committee on Public Accounts Twenty-Fourth Report


3  ARRANGEMENTS FOR THE COMPTROLLER AND AUDITOR GENERAL'S WORK AT THE BBC

15. Under an arrangement introduced in 2003, covering the three year period up to December 2006 when the BBC's current Royal Charter expires, the Comptroller and Auditor General is carrying out a programme of six value for money reviews at the BBC. Under the terms of the arrangement, the Comptroller and Auditor General submits the reviews to the BBC Governors' Audit Committee and the Governors are responsible for laying them before Parliament with, where possible, the BBC's Annual Report.[20]

16. The review of the White City 2 development was carried out under these arrangements and has provided Parliament and licence fee payers with insights about the BBC's use of public money which would not otherwise have been available. The BBC confirmed that its editorial independence had not been put at risk and acknowledged that it was difficult to envisage such circumstances arising.[21]

17. On the question of the programme of work, it would be better if the Comptroller and Auditor General were able to assess value for money risks and, on this basis, identify subjects for examination, bringing the arrangements at the BBC into line with those for the other central government bodies that the Comptroller and Auditor General audits. It is worth noting that the Office for National Statistics has recently decided to re-classify the BBC as part of central government for National Accounts purposes. The BBC said it would be happy to discuss any proposals for areas the Comptroller and Auditor General would like to examine, but the Governors wished to retain the final say over the selection of study topics.[22] The Committee regards this as unacceptable.



20   Amendment to the Agreement between the Secretary of State for Culture, Media and Sport and the BBC dated 4 December 2003. Back

21   Qq 42, 94-99 Back

22   Qq 86, 94, 99-102 Back


 
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Prepared 14 February 2006