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The NAO review looked at what the BBC is doing to maximise the efficiency of radio production across its Network and Nations radio stations, focusing on the use of cost comparisons for similar programme types within the BBC stations and with commercial competitors, the BBC’s efficiency plans and the BBC’s assessment of the impact of efficiency initiatives on performance.

“Grants awarded in the culture, media and sport sector support a diverse range of programmes, from funding education schemes for children to getting more people involved in sport. Grant-makers do, however, need to get a better handle on the costs and efficiency of their grant making if they are to demonstrate that as much of the money as possible goes into cultural and sporting activities rather than on administrative overheads.”

“With four years to go until the London Olympic and Paralympic Games, elite athletes need to know what support they will receive for 2012. Clear targets also need to be set for the level of success to be achieved at the Games, with the substantial funding available.”

“The Government’s digital switchover programme will affect almost every home in the UK and most of the costs will be met by consumers. Helping consumers through the switchover process requires strong and coordinated working between Government and delivery agencies.

“Progress so far is encouraging, but there is a long way to go with almost one third of licence fee payers still not understanding switchover, up to 26 million analogue television sets yet to be replaced or converted and nearly 1,200 transmitter sites to be upgraded.”

The NAO review looked at how the BBC manages its spending on goods and services and whether it is organised and equipped to deliver best value from its procurement. It also examined whether there was scope for the BBC to make further savings from its procurement arrangements.

The BBC Trust today published an independent review it had commissioned from the National Audit Office (NAO): The BBC’s Preparedness for Digital Switchover which looks in particular at how the BBC plans to meet its obligations set out under the Royal Charter and Agreement.

“The Olympic Games is now on a firmer financial footing thanks to the budget announced in March 2007. This should help all those involved in delivering the Games to move forward with greater confidence.

“However a budget is just that – a budget not a target. The Department must still work to contain funding and achieve value for money, and should make clear what will be delivered for the public’s money. There will be a need for clear and quick decision making on funding, effective commercial arrangements with suppliers, and finalisation of designs and legacy plans.”

The report makes recommendations to manage risk in relation to the budget. Those which require immediate action are:

“The Heritage Lottery Fund has done valuable work in preserving the UK’s heritage and promoting access to it. However, it needs to do more to simplify its procedures, to provide better support to applicants and grant recipients and to reduce time and cost overruns.”