Â鶹Éç

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The Â鶹Éç World Service corporate governance framework

Â鶹Éç 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 Â鶹Éç (‘the Suppliers').

Â鶹Éç World Service also receives services from and supplies services to the Â鶹Éç's commercial subsidiaries (‘the Subsidiaries').

It was agreed by a joint Foreign and Commonwealth Office (FCO)/Â鶹Éç World Service Working Group that the Â鶹Éç would draw up guidelines to govern the trading relationship between Â鶹Éç World Service and other parts of the Â鶹Éç in order to ensure that Â鶹Éç 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 Â鶹Éç World Service.

KPMG LLP (the Â鶹Éç'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 Â鶹Éç World Service and the Suppliers and Subsidiaries. KPMG LLP have reported to the Â鶹Éç'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 Â鶹Éç 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 Â鶹Éç 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 Â鶹Éç's commercial subsidiaries.

Â鶹Éç Executive Board statement on Â鶹Éç World Service trading protocols

The Â鶹Éç Executive Fair Trading Committee is responsible for monitoring and reviewing compliance with the Trading Protocols.

Following reports by the Controller, Fair Trading & Â鶹Éç Compliance Officer and by internal and external auditors, the Â鶹Éç Executive Fair Trading Committee is satisfied that:

• the Trading Protocols reflect the requirements of the FCO/Â鶹Éç 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 Â鶹Éç's commercial subsidiaries.

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