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The ´óÏó´«Ã½ World Service corporate governance framework

´óÏó´«Ã½ World Service is responsible for commissioning and scheduling its own programmes and for making programmes for its language services, but purchases English language programme-making and technical and support services from other parts of the ´óÏó´«Ã½ (‘the Suppliers').

´óÏó´«Ã½ World Service also receives services from and supplies services to the ´óÏó´«Ã½'s commercial subsidiaries (‘the Subsidiaries').

It was agreed by a joint Foreign and Commonwealth Office (FCO)/´óÏó´«Ã½ World Service Working Group that the ´óÏó´«Ã½ would draw up guidelines to govern the trading relationship between ´óÏó´«Ã½ World Service and other parts of the ´óÏó´«Ã½ in order to ensure that ´óÏó´«Ã½ World Service maintains its distinctive voice and to preserve the clear separation between Grant-in-Aid and licence fee income.

Each of the Suppliers then drew up detailed agreements with ´óÏó´«Ã½ World Service.

KPMG LLP (the ´óÏó´«Ã½'s external auditors) have received a summary of the value of transactions and the related cash flows, which have taken place during the year between ´óÏó´«Ã½ World Service and the Suppliers and Subsidiaries. KPMG LLP have reported to the ´óÏó´«Ã½'s Executive Fair Trading Committee that, in their opinion, the information included in the summary of transactions for the year ended 31 March 2009 has been accurately extracted from the books and records of ´óÏó´«Ã½ World Service and the Suppliers and Subsidiaries, and has been properly prepared on the basis of cost allocation and apportionment methods set out in the agreements between ´óÏó´«Ã½ World Service and the Suppliers and Subsidiaries and, on this basis, there has been no material cross-subsidy between Grant-in-Aid and licence fee funds or between Grant-in-Aid and the ´óÏó´«Ã½'s commercial subsidiaries.

´óÏó´«Ã½ Executive Board statement on ´óÏó´«Ã½ World Service trading protocols

The ´óÏó´«Ã½ Executive Fair Trading Committee is responsible for monitoring and reviewing compliance with the Trading Protocols.

Following reports by the Controller, Fair Trading & ´óÏó´«Ã½ Compliance Officer and by internal and external auditors, the ´óÏó´«Ã½ Executive Fair Trading Committee is satisfied that:

• the Trading Protocols reflect the requirements of the FCO/´óÏó´«Ã½ World Service Working Group;
• agreements consistent with the Trading Protocols are in place; and
• there has been no material cross-subsidy between Grant-in-Aid and licence fee funds or between Grant-in-Aid and the ´óÏó´«Ã½'s commercial subsidiaries.

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