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“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.”

“The London Olympic and Paralympic Games may seem a long way away, but with a programme of this magnitude it is vital to keep the momentum up. There is a lot more to do and a variety of risks to be managed if the Games are to be a success. Failure in any one area will impinge on others. Finalising the budget should be a priority to allow the Olympic programme to move forward with greater confidence and certainty.

“As well as learning from the experience of other cities that have hosted the Games, I have also arranged with my counterpart in China to learn lessons from the Beijing Games in 2008 that could usefully be applied to London.”

Licence fee payers are naturally anxious to know their money is being used as efficiently as possible. I am satisfied that the Department has enough information at its disposal to take a view on the BBC’s efficiency when determining the level of the next licence fee settlement.

“The Community Fund have made progress in improving their controls aimed at ensuring lottery money is spent on the causes for which it was intended, but there is more still to do to reduce the risk of loss through fraud. When grants are fraudulently obtained, the real losers are the voluntary and charitable groups who could have put this money to good use.”

Press release issued by the BBC:  http://www.bbc.co.uk/pressoffice/pressreleases/stories/2006/11_november/21/value.shtml