Select Committee on BBC Charter Review Minutes of Evidence


Annex 1

  VALUATION APPROVAL PROCESS

Prior to Approval

    —  All expenditure must be within BBC Sport's approved operating budget.

    —  Investments must be authorised before any contractual or financial commitments are made.

    —  Investments below £500,000 must be signed off by the Director of Sport, Director of Rights and Finance, or Senior Rights and Commercial Executive (unless otherwise delegated).

    —  All investments over £500,000 must have a project sponsor and an Investment Proposal (see above).

    —  All Investment Proposals require approval by both the Director of Sport and Finance Director of BBC Sport.

    —  Any Investment Proposal over £2 million must also be approved by the Director General's Finance Committee ("DGFC").

    —  Occasionally, at the DGFC's discretion, the Investment Proposal may go to Governors for their approval.

    —  For all investments requiring DGFC approval, the Investment Proposal is first sent to the Financial and Commercial Strategy team (a separate department in the BBC) for its review and comment. This team will prepare a 1-2 page Investment Critique, to be attached to the Investment Proposal and sent to DGFC for consideration.

Post Approval

    —  Once the outcome of any project over £500,000 can be reasonably assessed, a Post Implementation Review ("PIR") must be drafted by BBC Sport's Finance Director and the project sponsor.

    —  It is the BBC Sport's Finance Director's responsibility to review all PIRs.

    —  For all investments over £2 million a copy of the PIR is also sent to the Investment Manager (in Financial Commercial and Strategy).

    —  A quarterly summary of all relevant PIRs (across the whole of the BBC) is provided to DGFC along with a summary of conclusions and lessons learnt.

    —  An annual summary of PIRs is reported to the BBC's Executive and Audit Committee.





 
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