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Contents 01 Our aims 28 Output and performance 02 Chairman’s introduction measures 04 Director’s overview 32 BBC Board of Governors’ 08 Coverage of the Iraq crisis World Service Consultative 10 BBC Arabic Group Report 12 Reconstruction of 33 BBC World Service Afghanistan – one year on Management Board 2002/03 15 Seventy years of BBC World 34 Financial review Service 35 Financial statements 20 BBC World Service 38 Statement of accounting new media policies 21 BBC Monitoring 40 Notes to the financial 24 BBC World Service Trust statements 25 Looking forward – priorities 50 Reports on compliance for 2003-06 and regulatory matters 60 Further information

Front Cover Image After 24 years under Saddam Hussein, Iraqis are facing an unpredictable future. The World Service remains committed to providing trusted news and information in Arabic and English to the Iraqi people Our aims

To be the world’s best-known and most-respected voice in international broadcasting, thereby bringing benefit to Britain

To be the world’s first To be a global hub for Projecting Britain’s Promoting the English choice among international high-quality information values of trustworthiness, language, learning and broadcasters for authoritative and communication openness, fair-dealing, creativity, interest in a modern, and impartial news and enterprise and community contemporary Britain information, trusted for its accuracy, editorial Providing a forum for Offering a showcase independence and expertise the exchange of ideas for British talent across cultural, linguistic across the world and national boundaries

BBC World Service Annual Review 2002/2003 1 Chairman’s introduction Abeacon of independence

In December 2002, BBC World Service celebrated its 70th birthday with a global concert across five continents and a 14-hour broadcast that linked some 50 locations around the globe

They were part of a season of special During the Iraq war, the BBC Arabic Service began programmes of considerable range and ambition. a new daily debate programme, Nuqtat Hewar.It They showed that the BBC still has the capacity offered a forum for radio listeners and online users to fulfil a powerful role on the world stage, just to exchange opinions – a unique offer across the as it has from its birth in 1932. Arab world.

This has been a momentous year for international The programme has received thousands of emails broadcasting. The war in Iraq has meant that and texts every day, allowing major global leaders, global news services have never been more local politicians and ordinary Arabs to join prominent or important. But the war also together. This type of debate can really help to demonstrated that while the world is connected achieve greater understanding, openness and technologically, it is far from connected in terms dialogue. of mutual understanding. This is why in December 2002 we brought This globalised world increases the scale of together our international services across radio, international business and the specialisation television and online, under the umbrella of the of trade which could dramatically improve the new BBC World Service & Global News Division standard of living of all the world’s citizens. led by Mark Byford. But it also increases the speed of social change, the potential for a rapid spread of bigotry and The division comprises World Service radio, our other bad ideas, and the impact with which international television channel, BBC World, and cultures can collide. the BBC’s international online services.

Fostering mutual understanding across These services are available on three different international borders and cultural divides must platforms, but all share the same values of be a key way forward. independence, impartiality, quality, accuracy, breadth and depth of agenda, expertise and The global news service of the BBC is one of only eyewitness reportage. a few organisations in the world well positioned to make a contribution to this healing process. With better co-ordination across all these services and under a strict fair-trading framework, The challenge for BBC World Service is to make we will maximise our potential editorially and sense of what seems a confusing and contradictory achieve greater impact for the BBC brand among world, providing a forum for the exchange of ideas audiences around the world. By so doing, we across cultural, linguistic and national boundaries. will bring credit to Britain. If the service can continue to contribute in these crucial areas, it will be worth the cost, many times over.

Gavyn Davies As reconstruction BBC World Service BBC Chairman continues in Afghanistan provided a lifeline service the BBC’s Pashto and of trusted information to Persian Services remains the Iraqi people 24 hours of vital importance to a day, offering a forum for audiences there listeners and online users

2 BBC World Service Annual Review 2002/2003 “All the Iraqis, even those who defend Saddam, know the extent of this sadistic regime…” Listener, Kuwait

“I do not support Blair, Bush or this war, but I can rely on the World Service to bring the truth.” Listener, Iraq

Excerpts from calls taken on the Arabic interactive programme Nuqtat Hewar

BBC World Service Annual Review 2002/2003 3 Director’s overview Building for the future in a changing world

It has been an extraordinary year for the BBC World Service in which we built on our outstanding reputation as a beacon of trust, independence and quality

As the Iraq war began, the BBC World Service in more important time to connect with our English undertook its biggest news programming audiences and encourage them to connect operation ever, providing continuous news and with each other. analysis for over 220 hours. In July 2002, the Government announced a The BBC Arabic Service also played a pivotal role Spending Review settlement for the World Service in providing independent, trusted information to with an average 3.4% above RPI annual increase the people of Iraq and across the Arab world. It for 2003-06. New investment plans focus on broadcast live from Cairo at breakfast time and content enrichment in radio for services to the produced an extra 13 hours of news and current Arab world and Afghanistan; FM expansion in affairs output every day. the major global conurbations; and building our multi-lingual internet presence with enhanced A wide range of voices and opinions was interactivity. reflected in daily interactive discussion forums on the English and Arabic radio services and online, We retained our global audience of at least which became a strong and distinctive feature of 150 million weekly listeners in a world of exploding the output. competition. This has been achieved by expanding local partnerships and our FM presence. The World In Iraq itself during the war, we were providing a Service is now available on FM in 138 capital cities. lifeline service of trusted information to the Iraqi people through the BBC Arabic Service. At the In some countries, BBC World Service has as same time, coalition forces were tuning in to the great an impact as BBC Radio 2 – Britain’s most- World Service in English on the battlefield as they listened-to station – has in the UK. For example, advanced to Baghdad. Meanwhile, at the Central World Service programmes in Nigeria and Kenya Command Centre in Qatar, BBC World was a have a weekly reach of over 30%. key source of information. Moreover, the first independent city-wide survey It was a vivid reminder of the role and in Kabul since the fall of the Taleban showed BBC responsibility the BBC plays in providing trusted, World Service to be the leading broadcaster in the reliable, accurate, impartial information to all its Afghanistan capital with an unprecedented 82% audiences; to make sense of a complex, confusing of Afghans listening to BBC broadcasts in Persian and contradictory world; and to provide a forum and Pashto every week. for the exchange of ideas. Audiences in the USA listening via FM At its best, international broadcasting has the rebroadcasters on public radio are now at their potential to foster understanding and establish highest level ever. Audience figures have increased a genuine dialogue across cultural, linguistic and by 70% in the past two years – up from 2.3 million national boundaries. There has never been a in 2001 to 3.9 million, in one of the world’s most

Pro-democracy leader Aung San Suu Kyi was released in May 2002 after 19 months of house arrest by the Myanmar The World Service government. “I depended covered the 2002 a lot on the BBC World Commonwealth Games, Service. It was my which took place in only connection with Manchester in the the world” United Kingdom

4 BBC World Service Annual Review 2002/2003 competitive markets. An average 22% of opinion BBC Monitoring, based at Caversham, responded formers in Boston, New York and Washington to the particularly high demand for fast and listen to the World Service each week. accurate global media monitoring in the past year, particularly during the Iraq conflict. Customer Surveys from nine selected markets around satisfaction ratings for usefulness, range, selection the globe show that the BBC World Service and responsiveness remained high. is the most trusted and objective international broadcaster in each market. The World Service marked its 70th anniversary throughout December 2002 with high-profile A MORI survey of UK MPs showed a further events of ambition and innovation that made rise in the World Service favourability rating impact both globally and at home. Programmes to its highest level ever. Moreover, the latest included a global concert – live from Dakar, Kabul, independent survey of British Ambassadors and London, Mexico City and Mumbai – and a special High Commissioners reveals that 93% agree that 14-hour programme on the anniversary day of the BBC World Service enhances Britain’s image 19 December, linking more than 50 outside abroad. Some 70% of the UK population is now broadcasts around the world. aware of the World Service. UN Secretary-General Kofi Annan, in his special An international English language version of 70th anniversary lecture, memorably described the BBC news online site – bbcnews.com – the World Service as a “lifeline to learning, was successfully launched in July. It built on the enlightenment and to hope itself”. BBC’s reputation for convenience, depth, analysis, expertise and innovation – a trusted and widely It’s a testimony we will strive to uphold. used news forum on the internet for debating key global issues, promoting interactivity and dialogue. It won the prestigious 2002 Webby award for the best news website in the world.

With the Iraq war creating huge interest Mark Byford worldwide in our online news offer, international Director traffic in March 2003 increased year-on-year by BBC World Service and Global News over 200% for the combined international facing news site in English and the language services to 228 million page impressions. This easily broke all previous records. There were particularly large gains for online services in English, Arabic, Spanish and Persian.

As world leaders including Thabo Mbeki, Riots broke out in South African President, the northern city of gathered at the Earth Kaduna, Nigeria over Summit in Johannesburg the Miss World beauty in September the World contest that was due Service broadcast to take place in Abuja in-depth analysis in November

BBC World Service Annual Review 2002/2003 5 BBC journalists reporting for the World Service, both embedded with coalition forces and reporters travelling independently, provided insight and analysis during the Iraq war

“An American warplane has bombed a Kurdish convoy in northern Iraq which had been joined by members of the US Special Forces, killing several people in a ‘friendly fire incident’.” The BBC’s world affairs editor John Simpson who was travelling with the convoy broadcast live from the scene minutes after the attack. His translator Kamaran Abdurazaq Muhamed was one of those killed

Rageh Omaar Clive Myrie reported for reported live as the BBC whilst travelling Baghdad fell to with the Royal Marines coalition forces of 40 Commando Unit

6 BBC World Service Annual Review 2002/2003 John Simpson described a “scene from hell”, with all the vehicles in the convoy on fire and bodies – American and Kurdish – burning in front of him

Paul Wood spent ten weeks “One of the joys of being part of the World in the Iraqi capital where he Service is the ability to be on the road, live, had to work under restrictions whenever it happens,” says Lyse Doucet, imposed by officials presenter of Newshour and Talking Point, who reported for the World Service from Baghdad

BBC World Service Annual Review 2002/2003 7 A year in review Coverage of the Iraq crisis

To cover the conflict in Iraq, and events leading up to it, BBC World Service’s English network mounted its most comprehensive news operation – the largest it has ever undertaken

More than 150 As the first bombs fell on Baghdad, news teams “Thanks to the revolution in satellite telephone correspondents, began over 220 hours of live, continuous coverage technology, our reporters were able to file live producers and technical on the English network, combining vivid eyewitness from the battlefield, giving our audiences a closer reportage from the heart of the conflict with glimpse of war than ever before,” says Peter Burdin. staff were involved in analysis from the World Service’s team of “We received breaking news on the military special programmes specialists on diplomatic, military and Islamic affairs. engagements as the fighting unfolded. They were of hour-by-hour news our eyes and ears on the ground, giving us a better coverage, debate In Iraq, news teams reported directly from grasp of the story than in any previous conflict.” and discussion Baghdad and the north of the country on the Kurdish response and the advance of coalition “We were ‘embeds’ with a unit keen to have us on forces.Despite the fact that their reports and board, so from the start we were not treated like movements were restricted by Iraqi Ministry outsiders but as an integral part of the team,” says of Information officials, Andrew Gilligan, Rageh correspondent Clive Myrie, who was embedded Omaar and Paul Wood, together with Bureau with the Royal Marines 40 Commando Unit. “The Editor Paul Danahar, were able to maintain pressures were enormous, having, of course, to a regular supply of compelling reports from deal with the dangers of life close to the frontline the capital. of a major conflict, but also the daily pressure of not knowing whether or not we would get our “Many other media organisations were expelled material on air. I hope we managed to give a little from Baghdad before and during the war and we bit of insight into what life is like for a marine lived with the constant fear that we would also be fighting a war. We could never hope to provide forced off air at any moment,” says Peter Burdin, a wide-ranging view of the war overall – what Assignment Editor, World Newsgathering. “It is we provided was a valuable snapshot, I think.” a tribute to the professionalism and accuracy of our team that they were able to stay on air, even BBC World Service’s experts on defence and through the final days when their hotel suffered military strategy ensured that these eyewitness a direct hit, killing several of their colleagues from accounts were put into context, as well as the international press. They demonstrated the exploring what the war meant to the Arab world highest levels of maturity and courage and were and the wider international community. Defence able to tell the story of the fall of Baghdad for Correspondents, based at the headquarters our audiences around the world.” of the US Central Command in Qatar, provided regular analysis of the military position. BBC World Service reporters also gained unprecedented access to frontline action, with “During the conflict it proved essential not just more than a dozen teams ‘embedded’ with UK to report what Central Command was saying, and US military forces during the conflict. The but to report what was happening on the ground result of weeks of negotiation with the Ministry of with the accuracy and impartiality our audiences Defence and the Pentagon prior to the war, these expect – but also to find room for the widest teams were a key source of eyewitness material. possible range of voices and perspectives. BBC News journalists and programme-makers worked

As events unfolded During the Iraq conflict during the military of 2003, the ubiquitous conflict all generations images of Saddam which in Iraq listened to the dominated both public radio for news of the and private spaces were latest developments torn down or vandalised

8 BBC World Service Annual Review 2002/2003 closely with the regional specialists in the Arabic “The strange thing for me, as a first-time visitor and the other language services to make the to Egypt, was the extent of anti-American feeling most of the World Service’s unique strengths,” among the people when the government there said Phil Harding, Director English Networks and is ostensibly pro-American,” says correspondent News. “And listeners told us in unprecedented Mark Doyle, who was based in Cairo. “There numbers what they thought of the war. There were lots of noisy demonstrations at mosques and were so many conflicting views, it proved essential universities. They were not really violent but more to try to guide our audience to as complete an formulaic, with shouting, then suppression from understanding of the conflict as we could provide,” the massive police presence because people know he added. from long experience that they will be locked up if they go further.” In London, the World Service trebled the size of its specialist unit to ensure that experts Throughout its coverage of the conflict, BBC were available to provide analysis live 24 hours World Service ensured that listeners could hear a day. The team included experienced diplomatic from all the different groups with an important correspondents William Horsley and Barnaby perspective on the conflict. Studio discussions Mason, plus additional World Affairs featured experts from Arab and non-Arab Muslim correspondents and reporters. countries, as well as those from Britain and the USA. The views of people and politicians in News teams reported from Kuwait, Bahrain, countries such as France, Germany and Russia Jordan, Syria, Israel, Egypt, Saudi Arabia, Iran and who opposed the coalition action were given Turkey.To give audiences access to a wider range prominence, too. Coverage also examined the of voices, sections of major news programmes impact of the crisis on important long-running were presented directly from Amman, Kuwait global relationships, for example between the City and Cairo, as well as from Washington and US and Europe, and the role of the UN. the UN headquarters in New York. It was not only experts and officials who were “One great example from Jordan was a debate able to voice their opinions. Through its interactive on the war between Jordanian, Kuwaiti, Saudi and programming, BBC World Service invited listeners Iraqi analysts and academics,” says Liliane Landor, to share their views. Setting a new precedent for Editor, Programmes, BBC World Service News audience participation, letters, emails, telephone and Current Affairs. “It was so compelling that calls and, for the first time, SMS text messages many in the department stood still just listening provided an immediate response to events from to it. To hear all those different Arab voices and to audiences around the world. find out how the separate representatives saw the situation was absolutely fascinating, and their views “It has been vital to our credibility to give as were not necessarily what one would expect.” broad a perspective on the story as possible,” says Mary Hockaday, Editor, BBC World Service News Programmes and Current Affairs. “Whether it’s a five-minute bulletin or a rolling broadcast, we have tried to put the detail into a bigger picture.”

To ny Blair, in a major interview for the BBC Hans Blix speaks to the Arabic Service, pledged media in New York after that Iraq’s future a UN Security Council government would meeting on Iraq in March consist of Iraqi people

BBC World Service Annual Review 2002/2003 9 A year in review BBC Arabic

From the outbreak of military action in Iraq on 20 March 2003, the BBC Arabic Service began broadcasting rolling news and analysis round the clock to its global audience of Arabic-speaking listeners

The BBCArabic.com Presented from London and the new media centre The BBCArabic.com website recorded a massive website recorded a in Cairo, the Arabic service produced an extra increase in traffic at the start of the conflict. massive increase in 13 hours of news and current affairs output every On 20 March 2003, page impressions reached day. The broadcasts carried live set-piece events, an unprecedented one million milestone within traffic at the start of the including statements and press conferences by a 24-hour period. Audiences were also able to conflict. On 20 March US President George Bush, British Prime Minister air their views about the war live on the popular, 2003, page impressions To ny Blair and senior Iraqi ministers, together with twice-daily debate programme Nuqtat Hewar, reached an Security Council debates and military briefings. hosted by Hosam El Sokkari, the Head of unprecedented one BBCArabic.com. Interactive forums have been an million milestone within In addition to hourly news bulletins, an extensive important and distinctive way of capturing a wide network of reporters – based in Baghdad, Arbil range of views from across the Muslim and Arabic- a 24-hour period in the Kurdish zone in northern Iraq, Kuwait, speaking world about the conflict. Emails, too, Amman, Riyadh, Istanbul and Tehran – were able offered a valuable insight into audience reaction to provide regular live updates as well as reflecting to our radio programmes and online sites. the diversity of Arab views about the conflict. This year, delivery has been improved across As the war progressed, presenters and technical the Arabic-speaking world. Additional short wave support staff were deployed from Cairo to frequencies have been introduced into North other capitals in the region. Africa and the Gulf area, while medium wave transmissions have also been boosted. An Reporting from Baghdad was particularly additional FM station, set up in northern Jordan, demanding for correspondents from the BBC can be heard in Israel and as far north as Arabic Service. Iraqi reporter Sobhy Haddad Damascus in Syria. It supplements FM coverage was based in Baghdad and was first to report from Amman. BBC Arabic is also available on FM the opening bombardment around the capital. in Kuwait, Bahrain and Qatar and in Khartoum and He and his Jordanian colleague, Sa’ad Hattar, Wad Madani in Sudan. BBC Arabic and BBC World continued filing their reports despite the dangers. Service in English have been made available on several satellite stations’ audio channels, including In addition to its reporters in the region and Nilesat, Arabsat, Orbit and Worldspace, and local London, the BBC Arabic Service was able to utilise stations are also rebroadcasting programmes. the specialist skills, knowledge and analysis of the BBC’s defence and diplomatic correspondents, As seismic shifts occur in the geopolitical landscape plus its news reporters in Washington, Moscow and international diplomacy reacts to dramatic and other European capitals to provide depth, and fast changes in Iraq, Afghanistan and the context and global opinion. Middle East, the thirst for reliable, authoritative and impartial news and information remains at an all time high. The World Service remains committed to bringing insightful news and topical features and debate in Arabic and English.

BBCArabic.com offers Anti-war demonstrators interactive forums in Cairo protested as for Arabic speakers Arab foreign ministers around the world discussed unfolding events

10 BBC World Service Annual Review 2002/2003 Listeners from across the Middle East – including soldiers, refugees and residents directly affected by the conflict – tuned extensively to the BBC World Service. In Iraq, electricity failures left battery operated radios as the only reliable source of information

BBC World Service Annual Review 2002/2003 11 A year in review Reconstruction of Afghanistan – one year on

BBC World Service’s Pashto and Persian services have long enjoyed an unparalleled reputation in Afghanistan, effectively serving as a national broadcaster through two decades of civil war and humanitarian crises

“Feedback from across Since the fall of the Taleban, the challenge for a week of specially extended programming. the cities in Afghanistan BBC World Service has been to maintain its This included reporting from inside the national started national debates relevance in the face of growing choice and assembly, capturing debates and broadcasting changing audience needs as the country embarks the voices of political representatives, members among people from on reconstruction. of the public and a variety of experts. different parts of Afghanistan and “It has been a year of challenges and “Feedback from across the cities in Afghanistan throughout the opportunities,” says Baqer Moin, Persian and started national debates among people from diaspora” Pashto Service Head. “In moving from war to different parts of the country and throughout peace in Afghanistan we have had much to deal the diaspora,” says Behrouz Afagh, Head of with,reporting how the Afghan people would EurAsia Region. like to see their society moving.” Other highlights included the live broadcast Building on its strong reputation, the World Service from Kabul as part of the World Service’s 70th has shifted from being a lifeline broadcaster to anniversary celebrations. “It was unimaginable until serving a more diverse set of audiences with a then that Afghan musicians could play to the world compelling mix of bilingual rolling news, special from a country where music was banned until programming and features. a short time ago,” says Afagh.

Output in Pashto and Persian has reflected the But it’s not just formerly silenced musicians who audience’s changing habits with the critical theme value the work of the Persian and Pashto services being the reconstruction of the country and strong in Afghanistan. The World Service provides a international and regional coverage. forum for politicians like Hamid Karzai, Ashraf Ghani, Dr Abdullah and President Bush’s special The World Service’s Pashto and Persian services envoy to Afghanistan, Zalmay Khalilzad, target Afghanistan with a mixture of national to share their views, and an unprecedented and international news and features, including opportunity for Afghan people to question a range of development-focused programming. them directly. The main delivery platform has been short and medium wave, boosted by a new 1314 medium “Because of our impact we have no trouble wave frequency. Audibility in the major conurbations getting big names. International leaders recognise has now been greatly enhanced by securing how important our service is; they know we are 24-hour FM relays in Kabul and Mazar-e-Sharif. the direct line to the Afghan people,” says Behrouz Afagh. In June, the Pashto and Persian services marked the importance of the Loya Jirga – Afghanistan’s The editorial team includes a significant number most important traditional and political event of women, including Asma Habib, Najiba Kasree when 2,000 representatives from 30 provinces and Meena Baktash. There has been a deliberate gathered to elect a new administration – with and concerted effort to bring women’s issues to the fore, and to ensure that women’s voices are heard in programmes.

The Persian and Pashto services mounted a special week of programmes to cover Politicians like Ashraf the Loya Jirga which Ghani took part in elected a new president interactive debates for Afghanistan with listeners

12 BBC World Service Annual Review 2002/2003 The role of women within the media is still Declaration in June 2002 and, in conjunction a hotly debated issue in Afghanistan. To help with the Trust, organised the country’s first media women increase their involvement, the BBC reconstruction and development conference World Service Trust launched the Afghan in September. Women’s Empowerment Project in January 2003. This culminated in Afghan Women’s Month in With much of the country destroyed, it is difficult Kabul, which featured films, discussion groups, for journalists to operate effectively, particularly training courses and talks related to the work outside Kabul. Through long years of war, Afghans of women journalists and media workers in have come to rely on international radio for Afghanistan, encouraging women to form their accurate, balanced news to the extent that families own journalism associations and to mentor have been prepared to do without necessities to female journalism students. obtain batteries to hear the radio.

The BBC has near-universal awareness and high “With the help of the BBC, Afghanistan has trust ratings in Afghanistan. The first independent drawn up a new strategy for its media which is research, following the launch of FM broadcasts progressive and comes closest to the accepted in 2002, showed that the BBC World Service has international standards of ‘free’ media, in the an 82% weekly reach in Kabul, the highest reach whole of the region,” says Moin. of any broadcaster in the capital. “The government of Afghanistan says the majority A team made up of the Pashto and Persian of Afghans are illiterate, yet the level of political services, the BBC World Service Trust and a wide discourse in Afghanistan is very sophisticated range of experts from BBC Technology, BBC Public because they have been listening to BBC World Policy, and the Afghan Education Project provided Service radio for 50 years,” says Moin. “It is Radio Afghanistan with two fully equipped, self- therefore very rewarding to work with Afghans operating studios, digital-editing equipment, as they are some of the most sophisticated computers and mini discs, satellite phones and consumers of the media. In terms of reacting to other essential production equipment. It also new ideas, you take one step and they take ten – opened a Media Resource Centre in Kabul. The they seem to have a real hunger for learning and centre, currently managed by the BBC, includes a determination to improve their lives and to training facilities, computers and audio-visual become a 21st century country with a 21st equipment. It currently provides basic computer century media.” and digital-recording training to nearly 300 staff, as well as to other outside organisations. The World Service is determined to ensure that the Persian and Pashto services continue The Trust provided a strategic advisor to the to provide their Afghan audiences with trusted Ministry of Information and Culture to help information, adding purpose, learning and shared develop a plan for the media. As a result, the understanding for people there. Afghan Interim Authority issued a Policy

Women journalists in Afghanistan saw their role supported by the The BBC brought BBC World Service the first reports Tr ust which launched of the attempted its Afghan Women’s assassination of the Empowerment Project Afghan president Hamid in January Karzai in September

BBC World Service Annual Review 2002/2003 13 “For many the BBC World Service has been a lifeline – to learning, to enlightenment, to hope itself. Even today, to hear that trademark series of bleeps signalling the top of the hour is to hear humankind awakened, informed, empowered. No matter where one listens, no matter what one’s station in life, the BBC’s programmes resonate with special urgency.” Kofi Annan, Secretary-General, United Nations December 2002

14 BBC World Service Annual Review 2002/2003 A year in review Seventy years of BBC World Service

On 19 December 2002, BBC World Service broadcast a day of special live programming from the top of Table Mountain in Cape Town, South Africa to mark its 70th anniversary

“The 70th anniversary During the inaugural broadcast in 1932, the BBC’s most ambitious live outside broadcast we have programmes showcased first Director General, Sir John Reith, said that ever done,” comments David Stead, the season’s the best of what we’ve radio would become “a connecting and co- editor. “We were broadcasting via satellite from ordinating link between the scattered parts of the Mexico City, Dakar, Kabul, Mumbai and London.” done in the past but British Empire”. Twelve months later, a programme also highlighted what we was broadcast back to London for the first time. The event necessitated a huge amount of are capable of today” Produced by the Africa Broadcasting Company, it collaboration between BBC departments and was transmitted from the top of Table Mountain. other media providers, with many working In 2002, it was the turn of Ben Dotsei Malor, a together for the first time. Roger Short, a producer and presenter with the African Service, producer with the BBC’s domestic station Radio 3, to wish listeners a good morning as the sun rose travelled to Dakar with two studio managers from over the ocean to mark another historic occasion. the African Service to organise broadcasts from there. In Kabul, the Pashto and Persian services Highlights of the programming on 19 December worked with the Afghan Educational Trust to included interviews with Archbishop Desmond co-ordinate the concert in Afghanistan. Tutu, actress Angelina Jolie, singer and UN Special Envoy Geri Halliwell and footballer Thierry Henry. The concert was a resounding success. Anchored A special edition of the interactive programme by broadcasters John Peel and Emma B from Talking Point gave listeners across the globe the London, the event featured many leading names opportunity to put their questions to Mark Byford, from world music, including the acclaimed Director, BBC World Service and Global News. Senegalese musicians Youssou N’Dour and Baaba And during the day, the presenters read out Maal,the Mexican band Los de Abajos, Indian listeners’ emails and broadcast calls from around drummer Trilok Gurtu, UK star Ms Dynamite, and the world. renowned Afghan musicians, who had not played live in their country since the Taleban seized The anniversary season began with two control in Kabul in 1996. special broadcasts which gave listeners a unique opportunity to question two world leaders. “The 70th anniversary programmes showcased From 10 Downing Street, the British Prime the best of what we’ve done in the past but also Minister, Tony Blair, answered calls and emails highlighted what we are capable of today,” says sent in to a special Talking Point.Days later, UN Nigel Chapman, Deputy Director, BBC World Secretary-General Kofi Annan gave the World Service, who led the co-ordination of the season. Service 70th Anniversary Lecture from New York, “We connected our listeners with the world offering his perspective on the challenges facing leaders who shape their lives, put on major the world, and then engaged in discussion with concerts, mounted technically challenging listeners around the globe. broadcasts from unlikely places and produced a range of programmes of celebration and The other highlight of the 70th anniversary reflection. The feedback was very positive with celebrations was the global concert, broadcast listeners telling us that we continue to make live on 15 December from five cities. “It was the a big difference to their lives.”

Youssou N’Dour was To ny Blair took questions one of many international from listeners around the musicians invited to play world in Talking Point as at the 70th anniversary part of the BBC World global concert, broadcast Service 70th anniversary live on 15 December celebrations from five cities

BBC World Service Annual Review 2002/2003 15 70 years of change 1943 The BBC began teaching Many voices, one world… English through the airwaves for a few minutes early in the morning to help people already studying English

George Orwell resigns from the World Service because he felt he was wasting both his time and public money

The Monitoring Service moved For 70 years BBC World Service has maintained to its present site, Caversham its reputation for broadcasting excellence and Park, just outside Reading high standards of accuracy and impartiality

1944 “Almost all Germans listen to Caversham Park the BBC’s Hier ist England. No 1934 1938 death penalties are imposed The Empire Service acquired BBC Arabic – the BBC’s first because it would entail most its own news section foreign-language service – of the Wehrmacht’s demise” was launched. Soon followed reported a French student by Spanish and Portuguese who escaped from occupied for Latin America. French, Brittany German and Italian were 1933 heard for the first time this 1942 A programme was broadcast year too, when, during the The BBC began to broadcast back to London for the first Czechoslovak crisis, the in Morse code in the early time.Produced by the Africa Foreign Office asked for hours of the morning to Broadcasting Company, it was a broadcast by Prime Minister help clandestine newspapers, transmitted from the top of Neville Chamberlain to be which were beginning Table Mountain by Post Office transmitted in those languages. to appear in most of the wireless beam Today the World Service can occupied countries be heard in 43 languages

1932 1937 1942 1947 1952 1957 1962

05101520 25 30 1932 1935 1940 The Empire Service first began The Silver Jubilee of Winston Churchill famously broadcasting to the British George V was broadcast broadcast a message on the Empire from makeshift huts French service, just before in Daventry 1936 the French surrender The abdication announcement During the Service’s inaugural of Edward VIII broadcast The BBC broadcast in short wave broadcast, the Burmese for the first time BBC’s first Director General, in September at the outbreak Sir John Reith, said that radio of war in the Far East. Hindi would become “a connecting and Urdu were launched the and co-ordinating link between 1939 same year the scattered parts of the Outbreak of World War II. Alistair Cooke British Empire” The Nazis had been jamming In October a delayed-action BBC broadcasts bomb killed seven people, 1945 Six days later, echoing Sir experimentally for several injured many others and blew Death of Hitler announced John’s sentiments, King George months, and on the day out part of the west side of on the German Service after V took his place before the Britain and, France declared Broadcasting House. Listeners Kurt and Willi, a satirical ‘take’ microphone to deliver the war, listening to the BBC to the nine o’clock news on the effects of the war on first Christmas message to was made illegal in Germany heard the announcer pause, the English his subjects. Rudyard Kipling and then continue wrote it for him The Ministry of Information asked the BBC to set up In December a land mine 1946 a monitoring operation and caused so much damage to Russian Service opened in Wartime programme agreed to pay for it Broadcasting House that the March after the Soviet guide European service had to be government lifted a wartime The BBC Empire Orchestra moved to a disused skating restriction on privately-owned is created rink in Maida Vale. This was radio sets capable of receiving hardly the best place to be overseas broadcasts when London was being bombed every night and a new home was found. This King George V was Bush House, where there were already some basement studios and offices

16 BBC World Service Annual Review 2002/2003 1979 The Shah of Iran blamed the Persian service for his fall from power. It was later confirmed by the British ambassador at 1956 the time that the BBC had At the time of the Suez reported fairly by telling the crisis BBC broadcasts in Iranians, in their own language, 1997 Arabic were increased of events that were happening Westway, the longest running in the country drama serial broadcast to the 1962 world, began. In 2002, the New technology allowed a world’s first known satellite to send information international soap character about the ionosphere, which transfer happened when would improve the quality Westway character Zamira of short wave broadcasts 1982 turned up a month later in the The BBC began to take World Service’s Albanian soap advantage of satellite Rruga Me Pisha 1965 broadcasting to send signals 1990 The Empire Service, having by satellite to its relay stations The Liberian civil war of 1990 undergone many name provided an extraordinary changes, finally became the example of BBC influence, World Service and its coverage resulted in perhaps the closest the BBC Miss Dynamite’s ever came to a saturation electrifying audience performance at the 1992 70th celebrations A new computer system shows that World (EDiT) came into operation, Service is at the cutting revolutionising the distribution edge of modern music 1986 of news material within Bush Agreement was reached House. It was described as for the American Public Dylan Thomas is just one the ‘probably the largest and Radio network to take of many international most complex system of its World Service news and literary greats whose kind in the world’ with 1,000 current affairs programmes works have been featured terminals, 300 printers and and distribute them to its on the World Service 100km of fibre optic cabling affiliated stations 1972 1977 1982 1987 1992 1997 2002

40 45 50 55 60 65 70 1987 1991 1998 The Soviet authorities stopped The first World Service Arabic became the World jamming the BBC World television news bulletin went Service’s first foreign-language Service on the air with a version website. Expanded as of Lilliburlero, the tune that BBCArabic.com in 1999. 1970 The World Service gained introduced World Service Chinese, Russian, Spanish, Radio Newsreel became a access to a satellite covering bulletins for many years Hindi, Urdu, Persian and purely overseas programme most of Europe Portuguese for Brazil soon New control room in Bush followed. Today audio from House formally opened all 43 languages can be heard via the BBC World Service 1971 website To wards the end of the Indo-Pakistan war a BBC 1988 Bengali reporter was dragged The title World Service, out onto the streets and originally confined to the murdered in front of his wife service in English, was and children by supporters extended to services in of Pakistan infuriated by the foreign languages replacing BBC broadcast. The murdered the term External Services 2002 reporter was not responsible Wole Soyinka, 1986 On 19 December, BBC World for the reports The BBC resumed its daily winner of the Nobel Service broadcast a day of service to the Caribbean. prize for literature has special live programming from This had been abolished in written plays for the the top of Table Mountain in 1974 as a result of funding World Service Cape Town, South Africa to shortfalls mark its 70th anniversary. Ben Dotsei Malor, a presenter with the African Service, wished listeners a “Good Morning” as the sun rose over the Indian Ocean to mark another historic occasion Ben Dotsei Malor

BBC World Service Annual Review 2002/2003 17 “I think BBC World Service is a fantastic service, a service of information that has great responsibility and that reaches the whole world.” Ronaldo

18 BBC World Service Annual Review 2002/2003 BBC World Service Annual Review 2002/2003 19 A year in review BBC World Service new media

The war in Iraq coincided with the internet’s coming of age as an indispensable source of news and information for millions of users

Around the world the Demand for news about the Iraq war led to site was relaunched successfully to provide BBC World Service unprecedented levels of traffic for the World two editions, one for UK users and the other, sites are a key source Service’s news websites. In March 2003, traffic bbcnews.com, for international users. almost doubled from the previous month’s figure for both headline news to 228 million page impressions. More than In 2002, BBCArabic.com was redesigned to and comprehensive 13 million users visited World Service sites during include extra index pages. The World Service also analysis the conflict. There were nearly 22 million page launched new news sites in Hindi, Urdu and Pashto impressions registered at BBCArabic.com, more – breaking new ground in language web publishing. than seven million at BBCMundo.com (the Spanish Many journalists now work in bi-media newsrooms, site) and more than six million at BBCPersian.com. creating content for both radio and online.

Listening to news reports online also increased There is also a move to make World Service substantially. On 20 March, there were more content available on other platforms, such as than a million ‘listens’ online to World Service mobile phones and Personal Digital Assistants live news coverage. (PDA). People in China can now learn English through a new BBC English language teaching “The internet is now a trusted source of news service giving them hints, tips and vocabulary via and information,” says Myra Hunt, Head of New their mobile phones. News headlines and radio Media. “Around the world the BBC World Service bulletins are now available on mobile phones in sites are a key source for both headline news countries ranging from Nigeria to India. Online and comprehensive analysis. In particular, content is syndicated to partners around the BBCArabic.com and BBCMundo.com have firmly world such as UOL in Brazil and Yahoo! in Spanish, established themselves as primary worldwide helping to raise awareness of BBC World Service reference points in Arabic and Spanish.” news sites and reaching out to new users.

Throughout the year, BBC World Service sites “New technologies are giving us a level of ran multilingual, multimedia Talking Point forums. interaction with our audiences we have never seen Among those responding to audience questions before. It is remarkable and rewarding,” says Nigel were Russian Foreign Minister Igor Ivanov, UK Chapman, Deputy Director, BBC World Service. Foreign Secretary Jack Straw and the Saudi ambassador to the UK, HRH Prince Turki al-Faisal. “As well as offering services to scattered diaspora communities, the World Service keeps people in World Service news sites have been built to be touch with their language, country of origin and its robust and reliable at times of high traffic. This news, by creating shared communities of interest was helped by the relaunch of the English news which cross traditional broadcasting boundaries,” site in a new widescreen format (800 pixels wide) says Myra Hunt. in February 2003. In July 2002, the English news

During the Iraq crisis in March 2003, traffic on New technologies the World Service’s news offer audiences a more sites doubled from the sophisticated level previous month’s figure of interaction

20 BBC World Service Annual Review 2002/2003 A year in review BBC Monitoring

“Monitoring the world’s media during the Iraq crisis was tougher than it was during the first Gulf War. The range of influential media that needed monitoring was bigger and BBC Monitoring played a more prominent role that led to greater demands,” says Brian Rotheray, Managing Editor, BBC Monitoring Customer Services

Today, the impact of The conflict in Iraq presented a huge challenge BBC Monitoring maintained high customer world media reporting to BBC Monitoring in its role as an international satisfaction ratings. Of those customers surveyed, has never been greater media watchdog, tracking global broadcasts for 35% said the service had improved over the past stories of impact and significance. Extra staff were 12 months, citing its access to key sources, the and technological brought in to monitor the coverage of the crisis selection skill of its staff and increased advances mean that by the world’s media, with Arabic-speaking staff responsiveness as important attributes. reports can be around working round the clock. the world in seconds In April 2003, Dr Chris Westcott – formerly Head BBC Monitoring produced special media of New Media at BBC World Service – took over summaries, providing an overview of all that as Director BBC Monitoring, succeeding Andrew was happening in the region. It also increased its Hills. “To capture both the significant content and tracking of new stations broadcasting into Iraq, the powerful impact of the world’s media is a such as Radio Tikrit. The team was also able to daunting task, but a vital one,” Dr Westcott said provide feeds from various Iraqi and regional of his new role. TV stations back to the BBC and government departments. Based at Caversham in Berkshire, BBC Monitoring has overseas units in Moscow, Kiev, Baku, Tashkent Staff kept a close watch on the Iraqi media’s and Nairobi, and a network of independent reporting of the war, tracking speeches by the contractors. Funded by the Foreign Office, the Iraqi leader, Saddam Hussein, and his ministers, MoD, the Cabinet Office and BBC World Service, following the broadcast news reports and assessing it employs over 500 staff and monitors more than the mood of Iraq as conveyed by the media there. 3,000 radio, TV, press, internet and news agency sources in over 100 languages. It works closely In March 2003, a new Arabic television channel, with the US Foreign Broadcasting Information Al-Alam (The World), suddenly came on air. Service (FBIS), the two units sharing newsgathering Based in Tehran and run by IRIB (the Iranian state duties around the world. radio and TV service), it quickly gained viewers in Baghdad. One of the latest 24-hour news channels Today, the impact of world media reporting has to appear in the Middle East, Al-Alam’s broadcasts never been greater and technological advances were traced by BBC Monitoring to an area on the mean that reports can be around the world in Iran-Iraq border. seconds. “Increasingly, the media not only reports on world events but reflects international opinion As well as informing its customers of what the and helps to shape global debate. More than ever media in the Arab and Muslim worlds were saying, before, audiences, newsrooms and government during this international crisis, BBC Monitoring also departments rely on BBC Monitoring to tell them maintained its full range of in-depth reporting on what the rest of the world is thinking,” says other countries and regions of the world, their Dr Westcott. internal politics and foreign relations.

International audiences, newsrooms, and government departments need to know what the BBC Monitoring analysed media around the world Russian media as the is saying Moscow siege unfolded

BBC World Service Annual Review 2002/2003 21 “Audiences, newsrooms and government departments rely on BBC Monitoring to tell them what the rest of the world is thinking” Dr Chris Westcott 22 BBC World Service Annual Review 2002/2003 BBC World Service Annual Review 2002/2003 23 A year in review BBC World Service Trust

Through the innovative use and reach of mass media, the BBC World Service Tr ust has been pioneering new ways to aid reconstruction, promote health and reduce poverty in the developing world

The HIV/Aids campaign An independent charity established in 1999 and than 3,500 video screenings of the programmes developed new radio the international development arm of the BBC, in rural villages with poor access to radio and and television the Trust has supported reconstruction work television. These were followed by community in Afghanistan, launched the largest HIV/Aids discussions conducted by NGO facilitators. programmes in India to campaign ever undertaken in India, concluded reinforce key messages, an 18-month trachoma-awareness initiative in The campaign is aimed at preventing an epidemic reaching more than Ethiopia, Ghana, Nepal and Niger, and launched in India’s northern states. With an estimated 50 million people a ground-breaking literacy initiative in Somalia. four million cases at the end of 2001, India has the world’s second highest absolute number of “There is no shortage of ideas,” said Stephen King, HIV cases after South Africa. In a country where Director, BBC World Service Trust. “The range and discussing sexual health is still considered taboo, scale of our projects is growing rapidly and with using television and radio to promote changes the right funding there is much more we can do in behaviour and attitudes towards HIV/Aids to reduce poverty in a highly effective way.” has proved to be an effective way of tackling the problem. This past year, the Trust’s HIV/Aids media campaign has yielded some impressive results. Four months Other highlights during the year include the rapid into the 10-month campaign, an independent survey response which the Trust was able to mount to conducted by A C Neilsen and Johns Hopkins the crisis in Afghanistan. A week after the fall of University found that the campaign had reached Kabul, the Trust put together a BBC team to 60% of the target population in five northern undertake an assessment of the immediate needs Indian states – more than 50 million people. of the Afghan media. These findings were fed into the UN’s reconstruction conference, which took On a national level, some of the television place in Tokyo in early 2002. The Trust then programmes are watched weekly by more than embarked on a comprehensive programme of 150 million people. The campaign developed new training Afghan journalists, equipping Radio TV radio and television programmes to reinforce key Afghanistan with the country’s first digital studios messages about HIV/Aids. These were primarily and working alongside the Ministry of Information based on the need for young people to protect and Culture to help develop the first policy for themselves and for an end to discrimination changing Radio TV Afghanistan into a public against those living with Aids. The programmes service broadcaster. included Jasoos Vijay (Detective Vijay), India’s first interactive detective drama which was screened All the Trust’s work in Afghanistan is now three times a week and involved the audience managed by the Afghan Education Project, a highly in the detection process; Haath Se Haath Milaa skilled resource of Afghan dramatists, writers and (Let’s Join Hands Together), a weekly youth ‘reality’ production staff. They have been producing the television travel show; and Chat Chowk,a weekly innovative radio soap opera, New Home New Life, radio phone-in show dealing with personal in Peshawar in Pakistan for the past eight years. health issues. In addition to these programmes, The team moved to Kabul in October 2002 and advertising spots ran three times a day, on both re-established production of the educational soap Haath Se Haath Milaa television and radio, for the duration of the along with a distance-learning programme for (Let’s Join Hands campaign. In total, over 1,000 individual broadcasts children and is now at the forefront of educational Together) a weekly youth ‘reality’ television travel were aired and the campaign also organised more and developmental broadcasting in Afghanistan. show is part of India’s largest ever mass-media The World Service Trust campaign aimed at has recently concluded increasing awareness an 18-month trachoma- of HIV/Aids awareness initiative

24 BBC World Service Annual Review 2002/2003 A year in review Looking forward – priorities for 2003-2006

In July 2002, the UK Government announced the Spending Review settlement for BBC World Service for the period 2003-06, with additional operating funds of £27 million per annum by 2005/06, increasing Grant-in-Aid to £239 million per annum

At this critical time for This provides an average increase of 3.4% above The World Service will also be investing in major the Arabic-speaking RPI for each of the three years in the Spending landmark series on themes of global importance, world, the World Review period and will enable BBC World Service such as international security, Islam and modernity, Service is devoting to focus investment in: and HIV/Aids. specific funding to + Enriching programme content in languages Investments in internet services have been a key enhanced newsgathering with major geo-political impact feature of the World Service’s evolution in the in the region and special + Building our internet presence, with enhanced digital age. The World Service’s online offer is programming in radio interactivity already reaching significant numbers of users and and online + Improving audibility including FM expansion gaining recognition as an industry leader. The in capitals and major cities World Service aims to improve this service over the Spending Review period. We will be increasing At this critical time for the Arabic-speaking the depth and breadth of our English and Arabic world, the World Service is devoting specific sites, extending Russian and Portuguese for Brazil funding to enhanced newsgathering and special online to full 24/7 services and enhancing the programming in radio and online. The BBC Arabic online provision for users in South Asia. The Service has maintained its 24-hour news presence World Service will also invest in improving throughout the conflict in Iraq and will continue interactivity in English and key languages including to offer enhanced current affairs, analysis and Arabic, by developing ‘world forums’ to promote interactive debates. engagement and dialogue across nations and communities. Despite the focus of world attention having moved to Iraq and the Arab world in recent BBC World Service is already available in 138 months, the World Service’s enhanced programming capitals around the world, but FM expansion must in key languages of relevance to South West Asia continue if the service is to remain competitive. (Persian, Pashto and Urdu), which was temporarily In a growing number of markets, FM is now the introduced after 11 September 2001, remains a main method of delivery of World Service critical broadcasting priority. programming. As well as targeting specific capital cities not yet reached by FM, including in the Arab Africa continues to be a priority for new world and Russia, we will expand our networks of programmes and services. The World Service transmitters and local partners to include major is investing in a weekly programme in English, conurbations in our most important markets. Africa Live, to increase understanding of vital development issues, and it will be enhancing newsgathering for this critically important region.

The temporarily funded services for Rwanda and Burundi in Kinyarwanda and Kirundi will be supported on a permanent basis following research which demonstrated the very high level of listenership there.

A solar-powered FM Africa Live has pioneered transmitter has been a new interactive format built to bring the where listeners all over World Service to the the continent use their predominantly Hazara mobile phones to debate population of the Baiman critical development issues region in Afghanistan

BBC World Service Annual Review 2002/2003 25

The BBC World Service Tr ust uses media to raise awareness of human rights and health issues across the globe A year in review Output and performance measures

1 Global Radio Audience Average weekly audience (millions) Number of adults listening in an average week, through direct and/or indirect broadcasting via partners, excluding areas where measurement is not possible. Global totals are shown rounded to whole numbers; regional figures are shown rounded to nearest half million. The regional figures, therefore, may appear not to add up to the global total.

National surveys are carried out in a range of countries every year in order to update the global audience figure and to assess performance among target audiences. From 2002/03, surveys are now carried out annually in countries covering around 75% of the global audience, with other countries being surveyed periodically.

2001/02 2002/03 2002/03 Actual Target Actual Global 150 156 150 Regional Africa and the Middle East 59.0 62.0 61.5 Americas 9.5 12.5 11. 5 Asia and the Pacific 57.0 55.5 55.0 EurAsia 10.5 11.0 8.5 Europe 14.5 15.0 13.0

Awareness, Reach, Objectivity and Relevance From 2002/03, national surveys now include data on awareness, reach, objectivity and relevance, both for BBC World Service and for international public service radio competitors. This data will be reported annually which will enable trends to be identified over time. Prior year data has been omitted from the tables below as it is not on a comparable basis.

Awareness Percentage of adult population who are aware of BBC World Service (BBC WS)/main international radio competitor

2002/03 2002/03 Country Main international radio competitor BBC WS Competitor Nigeria Voice ofAmerica 50.2 40.2 Egypt Radio Monte Carlo 26.6 28.2 Kenya Voice of America 54.7 25.6 Pakistan Voice of America 40.6 9.1 Bangladesh Voice of America 39.4 29.7 Indonesia Voice of America 9.2 3.4 Russia Radio Liberty 31.8 28.8 Poland Deutsche Welle 36.6 11.8 Romania Radio Free Europe 41.3 61.2

28 BBC World Service Annual Review 2002/2003 A year in review Output and performance measures

1 Global Radio Audience continued Reach Percentage of adult population who listen to BBC World Service/main international radio competitor weekly

2002/03 2002/03 Country Main international radio competitor BBC WS Competitor Nigeria Voice ofAmerica 32.0 22.2 Egypt Radio Monte Carlo 5.0 6.2 Kenya Voice of America 32.6 9.2 Pakistan Voice of America 15.7 1.2 Bangladesh Voice of America 15.8 7.3 Indonesia Voice of America 3.3 0.7 Russia Radio Liberty 1.7 1.4 Poland Deutsche Welle 5.0 0.6 Romania Radio Free Europe 12.0 5.2

Objectivity Percentage of listeners who say that BBC World Service/main international radio competitor “provides unbiased and objective news and information”

2002/03 2002/03 Country Main international radio competitor BBC WS Competitor Nigeria Voice ofAmerica 63 47 Egypt Radio Monte Carlo 17 9 Kenya Voice of America 74 37 Pakistan Voice of America 25 10 Bangladesh Voice of America 85 47 Indonesia Voice of America 39 16 Russia Radio Liberty 18 13 Poland Deutsche Welle 32 17 Romania Radio Free Europe 27 14

Relevance Percentage of listeners who say that BBC World Service/main international radio competitor “provides news that is relevant to me” 2002/03 2002/03 Country Main international radio competitor BBC WS Competitor Nigeria Voice ofAmerica 69 52 Egypt Radio Monte Carlo 14 7 Kenya Voice of America 61 29 Pakistan Voice of America 43 8 Bangladesh Voice of America 60 37 Indonesia Voice of America 43 40 Russia Radio Liberty 12 10 Poland Deutsche Welle 12 4 Romania Radio Free Europe 26 10

BBC World Service Annual Review 2002/2003 29 A year in review Output and performance measures

2 Online Audience Monthly text and audio page impressions (millions)

March 2002 March 2003 March 2003 Actual Target Actual BBC World Service site 28.9 38.0 77.3 International facing news site(a) 46.4 67.0 150.4 To t a l 75.3 105.0 227.7 (a) A new international facing news site was launched in July 2002, replacing the World News site

3 Short Wave Audibility Audibility reports are based on data from the total number of signals monitored. Quality is rated as follows:

5 very good 4 good 3 acceptable 2 poor 1 unacceptable

Percentage of all short wave signals scoring 3, 4 or 5

2001/02 2002/03 2002/03 Actual Target Actual Global 85 86 86 Africa and the Middle East 84 86 87 Americas 74 76 77 Asia and the Pacific 83 85 85 EurAsia 88 88 88 Europe 93 93 90(a) (a) The Europe ratings were affected by a number of factors, including propagation conditions leading to poor reception from the Antwerp transmitter, and an aerial fault on 12095 kHz requiring services to be temporarily transferred

4 Capital Cities with FM Presence March 2002 March 2003 March 2003 Actual Target Actual Number of capital cities with FM presence 129 131 138

5 Staff Numbers Figures refer to the number of equivalent full-time staff in World Service Broadcasting

March 2002 March 2003 March 2003 Actual Target Actual UK based 1,086 1,299 1,290(a) Overseas based 247 263 278 To t a l 1 , 333 1,562 1,568 (a) In the year ended 31 March 2002 and prior years, studios and associated resources were provided by a BBC supplier division. On 1 April 2002 this activity was integrated into World Service, resulting in an increase of 185 in equivalent full-time staff

30 BBC World Service Annual Review 2002/2003 A year in review Output and performance measures

6 Hours of Output per Member of Staff per Week This indicator is based on the hours of language programming produced per week and the numbers of equivalent full-time staff employed both in the UK and overseas, excluding staff involved with online output. To aid consistency, the 185 equivalent full-time staff transferred to World Service on 1 April 2002, as explained above, have been excluded

2001/02 2002/03 2002/03 Actual Target Actual Hours 0.93 0.93 0.91

7 Revenue Earning These figures refer to gross revenue – not net profit. They reflect the additional revenue generated by World Service Broadcasting from sources other than the Foreign and Commonwealth Office Grant- in-Aid. They also include income generated by the BBC World Service Trust, a charitable company associated with BBC World Service. The BBC World Service Trust is not included within the financial statements of BBC World Service

2001/02 2002/03 2002/03 Actual Target Actual £m £m £m BBC World Service 5.0 5.0 4.7 BBC World Service Trust 4.9 6.8 6.5 To t a l 9 . 9 11. 8 11.2

The BBC World Service Trust figures exclude grants receivable from BBC World Service. The Trust’s revenue for 2001/02 has been restated to reflect the Trust’s audited financial statements published in January 2003.

These figures exclude any quantification of benefits in kind, for example gaining rebroadcasting agreements with local partners around the world, which increase BBC World Service’s audience reach at no additional cost.

The BBC World Service figure includes turnover from the BBC World Service shop of £0.7 million (2001/02 £0.6 million). The shop is operated by another BBC division and therefore this income does not appear in the BBC World Service financial statements.

BBC World Service Annual Review 2002/2003 31 BBC Board of Governors’ World Service Consultative Group Report

1 The Governors’ World Service Consultative Group was originally established following the 1996 BBC restructuring to provide the Governors with independent external advice on the range and quality of World Service output. The Consultative Group aims to review World Service output in English and other languages over a three-year cycle.

In 2002/03 the Consultative Group reviewed output in English, Arabic, Hausa, Somali, Portuguese, Spanish and Chinese. This selection followed the three-year research cycle, but was also informed by the political developments in the Middle East and the wish to review World Service output (Arabic) to that region. For each of these languages, a number of assessors were recruited by an independent market research and consultancy firm. Up to six assessors were chosen for each output category and a total of 46 reports 2 were received. The assessors were asked to listen to up to ten hours of output spread over one week in December 2002. The assessors’ reports were compiled during a very busy period in terms of world news, with the report from the UN arms inspectors in Iraq dominating the agenda.

The Consultative Group is satisfied that all the World Service output reviewed this year attracted high scores for authority and accuracy. This is particularly commendable since the week of output selected for the assessment was exceptional in terms of the world news agenda.

The Consultative Group notes that the BBC Arabic Service is an important language service performing 3 well in a challenging market. Recent data shows that in March 2003, during the Iraq War, usage of the Arabic online site increased by 135%, to a record of over 20 million page impressions. The Group notes that some of the scores given by the assessors are lower than the previous year, when the Arabic output was also reviewed by the Group. The Consultative Group urges World Service to continue with its programme of improvement, notably with the aim of: + Obtaining a wide range of opinions within its news output + Involving listeners more in the output + Ensuring presentation style is more contemporary and continues to be seen be as independent, fair, impartial and authoritative 4 + Increasing the appeal to a broader range of age groups The Consultative Group notes the impressive impact made by the World Service output to Africa in English, Hausa and Somali, as well as the high scores this output attracted from assessors. The Consultative Group believes that the World Service output to Africa has a strong educational dimension, bearing in mind its appeal across all socio-economic groups.

The Consultative Group commends World Service for achieving a significant impact in the USA in the context of a highly competitive media environment, with a weekly audience of 3.9 million, its highest ever. It notes that co-productions with American public radio are crucial in attracting that audience. However, 5 it asks World Service to keep such co-productions under review to ensure that they demonstrate the BBC’s strengths of accuracy, impartiality, relevance and depth, and do not lose BBC tone and style.

The Consultative Group observes that the World Service faces difficulties in making an impact in Latin America in Spanish and Portuguese. The Group is concerned that the awareness of the BBC output in the region appears to be low and agrees that high profile local partnerships are key to the delivery of the output both on radio and online.

The Consultative Group notes that restrictions imposed by the Chinese authorities on the distribution of 1 Dame Pauline Neville-Jones the BBC World Service limits its impact, both on radio and online. In that context, the Consultative Group DCMG urges World Service to develop local partnerships based on the provision of education, business, science BBC Governor (Chair) and language training programmes, which the Chinese authorities are less likely to object to. The World 2 Professor Monojit Chatterji Service should also review the definition of the target audience for its Mandarin online site and the scope Professor of Applied for broadening its agenda beyond news and current affairs. Economics University of Dundee 3 Bill Emmott The Consultative Group notes the continuing growth in usage of the World Service English news online Editor: The Economist site.In particular in March 2003, during the Iraq War, usage of the site grew to its highest level ever at 4 Sir Michael Perry CBE over 150 million page impressions, a growth of 80% compared to the previous month. The Consultative Chairman, Centrica plc 5 William Shawcross Group feels that this provides an impressive testimonial of the value of the site for a world audience. Journalist and author The Consultative Group believes that the site could be more actively promoted on World Service radio.

32 BBC World Service Annual Review 2002/2003 BBC World Service Management Board 2002/2003

A B C A Mark Byford Director BBC World Service and Global News

B Behrouz Afagh Head of EurAsia from 15 March 2003 (David Morton left the BBC on 31 March 2003)

C Benny Ammar Head of Go Digital

D Alan Booth Controller Marketing D E F E Nigel Chapman Deputy Director BBC World Service

F Mike Cronk Controller Distribution And Technology

G Francois Delazun BBC World Service Secretary (Left the BBC on 31 May 2003, succeeded by Hugh Saxby) G H I H Lesley Granger Director Human Resources

I Phil Harding Director English Networks and News

J Andrew Hills Director BBC Monitoring (Chris Westcott became Director BBC Monitoring in April 2003)

J K L K Andrew Hind Chief Operating Officer and Director of Finance

L Zdenka Krizman Head of Europe

M Barry Langridge Head of Asia and the Pacific from 7 February 2003 (Elizabeth Wright left the BBC on 31 March 2003)

N Fred Martenson M N O Head of Strategy O Lucio Mesquita Head of Americas from 17 February 2003 (Previously Jerry Timmins)

P Jerry Timmins Head of Africa and Middle East from 3 March 2003 (Previously Barry Langridge)

Q Chris Westcott Head of New Media P Q (Myra Hunt who became Acting Head of New Media in April 2003, was appointed permanently in June 2003)

BBC World Service Annual Review 2002/2003 33 Financial review

Broadcasting The major editorial challenges in the year necessitated tight cost control to ensure that BBC World Service reacted appropriately to world events without undermining the sound management of our finances. I am pleased to report that, after some difficult decisions on reprioritising spend, the continuation of the additional output and transmission commenced in 2001/02 following the events of September 11th was funded from within our existing funding base. We also responded with additional programming during the early phase of the conflict in Iraq as the financial year drew to a close.

Within the framework of the Government’s 2000 Spending Review, Grant-in-Aid increased by £13 million in 2002/03. This brought total Grant-in-Aid to £201 million, comprising £168.9 million for operating expenditure, £5.1 million for a subscription to BBC Monitoring and £27.0 million for capital. The surplus for the year of £6.8 million (note 1a page 40) arises primarily from an excess of capital Grant-in-Aid over depreciation and other capital charges.

A major focus for capital activity over the last three years has been the building of a new transmitter site in Oman. This site came into service on time and within budget in autumn 2002, and is already providing improved reception and coverage to large and important audiences in the Middle East, Central Asia, Afghanistan and South Asia.

Looking forward, the Government’s 2002 Spending Review announced last July provides an average increase of 3.4% above RPI for each of the three years of the Spending Review period, commencing in 2003/04. This will help to ensure that BBC World Service is effectively equipped to face the fierce and growing competition in key media markets across the world.

Value for money BBC World Service continued its ongoing programme of increasing value for money. We were able to increase further, to 88.6%, the proportion of funding spent directly on content production and delivery, with only 11.4% spent on support functions and overheads. We aim to increase this content percentage to 91% by 2005/06, the final year of the 2002 Spending Review period. We were also able to achieve efficiency savings of £2.6 million in the year.

We continue to search for opportunities to offset costs by raising additional income in a manner consistent with the BBC’s editorial and commercial guidelines. Despite tough market conditions around the world, external income of £4.0 million was generated in the year.

We add further value to the core Grant-in-Aid through partnerships with radio stations and internet service providers around the world, which rebroadcast our programmes and material at no cost to BBC World Service. This enables us to further expand reach without additional distribution costs.

BBC Monitoring Subscription income from official customers (including BBC World Service Broadcasting) for the financial year 2002/03 amounted to £21.2 million which, combined with income from other sources, produced total revenue for BBC Monitoring of £24.3 million.

Andrew Hind Chief Operating Officer and Director of Finance

34 BBC World Service Annual Review 2002/2003 Financial statements

Statement of income and expenditure for the year ended 31 March 2003 2002 Note £m £m Grant-in-Aid 201.0 187.9 Other income 23.2 23.2 To tal income 1 224.2 211.1 Operating expenditure 2 (216.3) (205.0) Operating surplus 7.9 6.1 Profit on disposal of a property – 3.3 Surplus before interest and taxation 7.9 9.4 Interest receivable 0.6 0.6 Surplus before taxation 8.5 10.0 Ta x a t ion 4 – (0.2) Surplus for the financial year 1,11 8.5 9.8 Tr ansfer to capital reserve 11 (11.5) (7.2) Tr ansfer from revaluation reserve 11 0.8 0.8 (Deficit)/surplus for the year transferred to operating reserve (2.2) 3.4

The above results are derived from continuing operations.

BBC World Service Annual Review 2002/2003 35 Financial statements

Balance sheet at 31 March 2003 2002 Note £m £m Fixed assets Ta ng ible fixed assets 5 134.0 123.3 Current assets Stocks 7 – 0.2 Debtors 8 13.5 14.8 Cash at bank and in hand 13 12.5 11.4 26.0 26.4 Creditors – amounts falling due within one year 9 (13.3) (10.7) Net current assets 12.7 15.7 To tal assets less current liabilities 146.7 139.0 Provisions for liabilities and charges 10 (3.9) (4.7) Net assets 142.8 134.3

Represented by Capital reserve 128.4 116.9 Revaluation reserve 5.6 6.4 Operating reserve 8.8 11.0 11 142.8 134.3

The financial statements were approved by the Governors and the BBC World Service Management Board on 19 June 2003 and signed on their behalf by:

Gavyn Davies BBC Chairman

Greg Dyke Director-General, BBC

Mark Byford Director, BBC World Service and Global News

Andrew Hind Chief Operating Officer and Director of Finance, BBC World Service

36 BBC World Service Annual Review 2002/2003 Financial statements

Statement of total recognised gains and losses for the year ended 31 March 2003 2002 £m £m Surplus for the financial year 8.5 9.8 Prior year adjustment for the adoption of FRS 17 – 0.3 To tal recognised gains and losses since the previous financial year 8.5 10.1

Historical cost surplus for the year ended 31 March 2003 2002 Note £m £m Surplus before taxation 8.5 10.0 Difference between historical cost depreciation charge and actual depreciation charge for the year calculated on revalued assets 11 0.8 0.8 Historical cost surplus before taxation 9.3 10.8 Historical cost surplus for the financial year 9.3 10.6

Reconciliation of movement in reserves for the year ended 31 March 2003 2002 Note £m £m Opening reserves as previously stated 134.3 124.2 Prior year adjustment for the adoption of FRS 17 – 0.3 Opening reserves as restated 134.3 124.5 Surplus for the financial year 8.5 9.8 Closing reserves 11 142.8 134.3

Cash flow statement for the year ended 31 March 2003 2002 Note £m £m Net cash inflow from operating activities 12 25.7 20.4 Return on investments and servicing of finance Interest received 0.6 0.6 Taxation Ta xation paid (0.5) – Capital expenditure and financial investments Purchase of tangible fixed assets (24.8) (23.1) Proceeds from the sale of tangible fixed assets 0.1 3.3 Increase in cash 13 1.1 1.2

BBC World Service Annual Review 2002/2003 37 Statement of accounting policies

BBC World Service, funded principally by parliamentary Grant-in-Aid, is a division of the British Broadcasting Corporation, a body incorporated by Royal Charter.

The financial statements have been prepared in accordance with the provisions of the BBC’s Charter and Agreement. Although not mandatory, BBC World Service has chosen to follow the accounting and disclosure provisions of the Companies Act 1985 and applicable UK accounting standards to ensure that its financial statements are prepared on a basis consistent with that of UK companies.

BBC World Service does not produce consolidated financial statements. Although BBC World Service is technically the parent of the BBC World Service Trust, the Trust is exempt from consolidation. This is because the Trustees have a fiduciary duty to act in the best interests of the Trust’s beneficiaries and substantially all of the Trust’s income is made up of grants which are classified as restricted funds because their use is specified by donors, such that BBC World Service has no direct control over, or financial interest in, the assets of the Trust.

The activities of the other subsidiaries and associates of BBC World Service are not material either individually or in aggregate.

Basis of accounting The financial statements are presented under the historical cost accounting convention as modified by the revaluation of certain plant, machinery and furniture and fittings.

Income Grant-in-Aid from the Foreign and Commonwealth Office is intended to meet estimated expenditure in the year but unexpended receipts for the year, within predetermined limits, are not liable to surrender.

Other income received by BBC World Service, principally BBC Monitoring subscriptions, is set out in note 1a of the financial statements.

Foreign currency translation Tr ansactions in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the transactions.

Assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at 31 March. Surpluses and deficits arising from the translation of assets and liabilities at these rates of exchange, together with exchange differences arising from trading, are included in the statement of income and expenditure.

Pension costs The BBC operates both defined benefit and defined contribution schemes for the benefit of employees.

Defined benefit scheme The defined benefit scheme, the BBC Pension Scheme, provides benefits based on final pensionable pay. The assets of the scheme are held separately from those of the BBC group.

BBC World Service, following the provisions within FRS 17: Retirement Benefits,accounts for the scheme as if it were a defined contribution scheme. This is because it is not possible to identify the share of the underlying assets and liabilities of the scheme relating to BBC World Service on a reliable and consistent basis. The expenditure charge therefore represents the contributions payable in the year.

Defined contribution scheme The amount charged as expenditure for the defined contribution scheme represents the contributions payable by BBC World Service for the accounting period in respect of this scheme.

38 BBC World Service Annual Review 2002/2003 Statement of accounting policies

Operating leases Operating lease rentals are charged on a straight-line basis over the term of the lease.

Tangible fixed assets Expenditure on fixed assets is capitalised together with incremental and internal direct labour costs incurred on capital projects.

Depreciation is calculated so as to write off the cost or valuation, less estimated residual value, of fixed assets on a straight-line basis over their expected useful lives. Depreciation commences from the date an asset is brought into service.

The useful lives for depreciation purposes for the principal categories of assets are:

Land and buildings Freehold land – not depreciated Freehold and long-leasehold buildings – 50 years Short-leasehold land and buildings – unexpired lease term Plant and machinery – three to 25 years Computer equipment – three to five years Furniture and fittings – three to ten years

Plant and machinery and furniture and fittings are stated at the estimated current replacement cost of the assets, as adjusted for remaining service potential, as at 1 April 1996, or cost if acquired subsequently, less accumulated depreciation.

Originated programme stocks and work in progress Originated programme stocks and work in progress, including those commissioned from independent producers, are stated at cost. The full stock value is written off on first transmission.

Acquired programmes The costs of acquired programmes are written off on first transmission.

Reserves The value of the capital reserve is equal to the net book value of fixed assets at historic cost. The revaluation reserve reflects the difference between this sum and fixed assets at their revalued amount. The operating reserve is the accumulated surplus of the income and expenditure account to the balance sheet date.

Grant-in-Aid is used to fund both capital and revenue expenditure and a transfer is made to or from the capital reserve equal to the movement in the historic cost net book value of tangible fixed assets during the year.

BBC World Service Annual Review 2002/2003 39 Notes to the financial statements for the year ended 31 March

1 Income, surplus and net assets 1a Analysis by activity Broadcasting Monitoring Total 2003 £m £m £m Grant-in-Aid 201.0 – 201.0 Subscriptions – 16.1 16.1 Intra BBC World Service trading (5.1) 5.1 – Other income 4.0 3.1 7.1 To tal income 199.9 24.3 224.2 Operating expenditure (193.4) (22.9) (216.3) Operating surplus 6.5 1.4 7.9 Interest receivable 0.2 0.4 0.6 Surplus before taxation 6.7 1.8 8.5 Taxation 0.1 (0.1) – Surplus for the financial year 6.8 1.7 8.5 Tr ansfer to capital reserve (10.7) (0.8) (11.5) Tr ansfer from revaluation reserve 0.8 – 0.8 (Deficit)/surplus for the year transferred to operating reserve (3.1) 0.9 (2.2) Net assets 115.9 26.9 142.8

Broadcasting Monitoring Total 2002 £m £m £m Grant-in-Aid 187.9 – 187.9 Subscriptions – 15.6 15.6 Intra BBC World Service trading (5.0) 5.0 – Other income 4.4 3.2 7.6 To tal income 187.3 23.8 211.1 Operating expenditure (182.0) (23.0) (205.0) Operating surplus 5.3 0.8 6.1 Profit on disposal of a property 3.3 – 3.3 Surplus before interest and taxation 8.6 0.8 9.4 Interest receivable 0.2 0.4 0.6 Surplus before taxation 8.8 1.2 10.0 Ta x a t ion (0.1) (0.1) (0.2) Surplus for the financial year 8.7 1.1 9.8 Tr ansfer to capital reserve (6.3) (0.9) (7.2) Tr ansfer from revaluation reserve 0.8 – 0.8 Surplus for the year transferred to operating reserve 3.2 0.2 3.4 Net assets 109.1 25.2 134.3

40 BBC World Service Annual Review 2002/2003 Notes to the financial statements

1 Income, surplus and net assets continued 1b Analysis by geographical location BBC World Service income, operating expenditure and surplus primarily arise in the United Kingdom.

Within the total net assets of £142.8 million (2002 £134.3 million), the majority of transmission fixed assets are located overseas.

United Rest of Kingdom the world Total 2003 £m £m £m Land and buildings 11.4 18.1 29.5 Plant and machinery 15.7 59.5 75.2 Fixtures and fittings 1.8 0.4 2.2 Assets under construction 18.4 8.7 27.1 To tal fixed assets 47.3 86.7 134.0 Other net assets 8.8 – 8.8 56.1 86.7 142.8

United Rest of Kingdom the world Total 2002 £m £m £m Land and buildings 12.9 13.1 26.0 Plant and machinery 15.5 39.6 55.1 Fixtures and fittings 1.6 0.4 2.0 Assets under construction 9.2 31.0 40.2 To t a l f i xed assets 39.2 84.1 123.3 Other net assets 11.0 – 11.0 50.2 84.1 134.3

2 Operating surplus The operating surplus is stated after charging the following items:

2003 2002 £m £m Payments under operating leases: – Land and buildings 7.7 7.5 – Plant and machinery 0.7 0.6 – Other 0.1 – Depreciation 14.4 15.8 Loss on disposal of tangible fixed assets 0.3 0.4 Auditors’ remuneration – audit 0.1 0.1

BBC World Service Annual Review 2002/2003 41 Notes to the financial statements

3 Employees and remuneration 3a Persons employed The average number of persons employed (full-time equivalent) in the year was:

2003 2002 Number Number Broadcasting 1,549 1,291 BBC Monitoring 508 506 2,057 1,797

In the year ended 31 March 2002 and prior years, studios and associated resources were provided at cost by a BBC supplier division. On 1 April 2002 this activity was integrated into BBC World Service, creating the Broadcast Operations business unit. This resulted in an increase of 185 in the number of persons employed, but no increase in overall costs.

Within the averages above, 209 (2002 163) part-time employees have been included at their full-time equivalent of 116 (2002 89) and 69 (2002 82) persons on guaranteed minimum contracts have been included at their full-time equivalent of 14 (2002 18).

In addition to this, BBC World Service employed an average 83 (2002 70) persons on a casual basis. Their payroll costs are included in note 3b.

3b Staff costs 2003 2002 £m £m Salaries and wages 64.2 56.2 Social security costs 5.3 4.7 Pension costs 2.3 2.1 Redundancy costs 1.4 2.4 73.2 65.4

Staff costs for 2002/03 include £6.5 million as a result of the integration of Broadcast Operations into BBC World Service, as outlined above.

3c Management Board remuneration The members of the Management Board who served during the year are shown on page 33. On page 57, the remuneration report contains more information on the remuneration policy of the BBC for the BBC World Service Management Board. The remuneration of the permanently appointed members of the Management Board is set out below.

2003 2002 £000 £000 Management Board emoluments 1,975.5 1,964.2 Employer’s pension contributions 69.9 69.1 2,045.4 2,033.3

In addition to the emoluments set out above, termination payments totalling £224,000 were made to two members of the Management Board on leaving the BBC on 31 March 2003.

42 BBC World Service Annual Review 2002/2003 Notes to the financial statements

3c Management Board remuneration continued The highest paid member of the Management Board in the year was Mark Byford, Director, BBC World Service and Global News. The aggregate of his total emoluments to 31 March 2003 was £306,000 (2002 £294,000). Following the establishment of the BBC World Service and Global News Division on 1 December 2002, one third of Mark Byford’s remuneration has been borne by BBC World Limited. Emoluments of £34,000 and pension contributions of £1,000 have been paid by BBC World Limited in 2002/03 and have been excluded from the table on page 42. As a member of the BBC’s defined benefit scheme, Mark Byford’s total accrued annual pension at 31 March 2003 was £88,000 (2002 £75,000).

16 of the 17 permanently appointed members of the Management Board as at 31 March 2003 have retirement benefits accruing under the BBC Pension Scheme (2002 16 members).

3d Pensions BBC Pension Scheme Many BBC World Service employees are members of the BBC Pension Scheme which provides salary related pension benefits on a defined benefit basis from assets held in separate, trustee-administered funds.

BBC World Service, following the provisions within FRS 17: Retirement Benefits,accounts for the scheme as if it were a defined contribution scheme. This is because it is not possible to identify the share of the underlying assets and liabilities of the scheme relating to BBC World Service on a consistent and reliable basis.

The pension cost charged for this scheme represents contributions payable by BBC World Service, amounting to £1.6 million in the year (2002 £1.3 million).

The scheme is subject to independent valuation by a professionally qualified actuary at least every three years, on the basis of which the actuary certifies the rate of employer’s contributions. These, together with the specified contributions payable by employees and proceeds from the scheme’s assets, are expected to be sufficient to fund the benefits payable under the scheme. The most recent full actuarial valuation of the scheme was prepared as at 1 April 2002 by Watson Wyatt, consulting actuaries, using the projected unit method.

At 1 April 2002 the actuarial valuation showed a surplus of £441 million and the actuarial value of the assets was sufficient to cover 109% of the benefits due to members after allowing for expected future increases in earnings.

Employer contributions have remained steady for a number of years. However, in order to maintain the financial health of the scheme, it has been agreed with the trustees that employer contributions will rise by 0.5% a year for three years from the current 4.5% of pensionable pay, with the first 0.5% increase taking effect from 1 April 2003. In addition, employee contributions will rise 0.5% per year from 4.5% to 6.0% over the three-year period commencing 1 April 2004.

Additional disclosure about the scheme and its financial position under FRS 17 is provided in the BBC Annual Report and Accounts that can be obtained from The Secretary, BBC, Broadcasting House, London W1A 1AA.

Other Schemes BBC World Service made payments of £0.7 million (2002 £0.8 million) into the Group Personal Pension Scheme and other schemes.

BBC World Service Annual Review 2002/2003 43 Notes to the financial statements

4 Taxation 4a Analysis of charge for the period The charge for the year is based on a rate of corporation tax of 30% (2002 30%).

2003 2002 £m £m Current year – UK corporation tax 0.2 0.2 Adjustment in respect of previous years (0.2) – – 0.2

4b Factors affecting the tax charge The BBC World Service taxation charge is based primarily on interest receivable. The tax assessed for the year is therefore significantly lower than the standard rate of corporation tax in the UK (30%), as explained below.

2003 2002 Note £m £m Surplus before taxation 8.5 10.0 Surplus before taxation multiplied by the standard rate of corporation tax in the UK of 30% (2002 30%) 2.5 3.0 Effect of non-taxable external income/deductible costs (2.3) (2.8) Current tax charge for the year 4a 0.2 0.2

4c Factors that may affect future tax charges BBC World Service anticipates a similar tax charge in future years as Grant-in-Aid and BBC Monitoring subscriptions, the principal components of BBC World Service’s income, are not subject to taxation.

5 Tangible fixed assets Land and Plant and Furniture Assets under buildings machinery and fittings construction To t a l £m £m £m £m £m Cost or valuation At 1 April 2002 56.1 118.3 4.2 40.2 218.8 Additions 1.0 5.3 0.4 18.8 25.5 Brought into service 5.0 26.5 0.4 (31.9) – Disposals – (1.7) (0.1) – (1.8) At 31 March 2003 62.1 148.4 4.9 27.1 242.5 Depreciation At 1 April 2002 30.1 63.2 2.2 – 95.5 Charge for the year 2.5 11.3 0.6 – 14.4 Elimination in respect of disposals – (1.3) (0.1) – (1.4) At 31 March 2003 32.6 73.2 2.7 – 108.5 Net book value At 31 March 2003 29.5 75.2 2.2 27.1 134.0 At 31 March 2002 26.0 55.1 2.0 40.2 123.3

44 BBC World Service Annual Review 2002/2003 Notes to the financial statements

5 Tangible fixed assets continued BBC World Service’s plant and machinery and furniture and fittings were revalued at 1 April 1996 based on the estimated current replacement cost of the assets, adjusted for service potential. Following the introduction of FRS 15:Tangible Fixed Assets, BBC World Service has retained these revalued assets at their valuation as adjusted for depreciation. BBC World Service does not plan to revalue these assets on an ongoing basis.

Historical cost basis The net book value of tangible fixed assets included in the above table determined on an historical cost basis is as follows:

Plant and Plant and Furniture Furniture machinery machinery and fittings and fittings 2003 2002 2003 2002 £m £m £m £m Cost 203.1 173.0 7.6 6.9 Depreciation (133.5) (124.3) (5.4) (4.9) Net book value 69.6 48.7 2.2 2.0

Included within fixed assets is £24 million at cost relating to a relay station in Thailand. These assets are transferable to the Royal Thai Government in return for the payment of a nominal sum. BBC World Service will retain the right to repurchase the assets, should the operation cease, for a similar nominal sum. The use of these assets is not affected by this transaction and therefore they will continue to be carried at cost less attributable depreciation in the balance sheet.

Land and buildings at net book value comprise:

2003 2002 £m £m Freeholds 15.4 15.7 Short-leaseholds 14.1 10.3 29.5 26.0

The members of the Management Board are satisfied that there has been no impairment in the carrying values of freehold properties at the balance sheet date.

Land and buildings include freehold land at a cost of £4.2 million (2002 £4.2 million) which is not depreciated.

BBC World Service Annual Review 2002/2003 45 Notes to the financial statements

6 Investments BBC World Service holds the following interests in companies, at cost: Holding of issued ordinary shares % Subsidiaries BBC East Asia Relay Company Limited (incorporated in Hong Kong) 100 BBC Radiocom (Bulgaria) EOOD (incorporated in Bulgaria) 100 BBC Radiocom (Hungary) KFT (incorporated in Hungary) 100 BBC Radiocom (Praha) s.r.o. (incorporated in the Czech Republic) 100 BBC Radiocom (Slovakia) s.r.o. (incorporated in the Slovak Republic) 100 BBC Romania SRL (incorporated in Romania) 100 BBC Polska Sp. z.o.o. (incorporated in Poland) 100 BBC do Brazil Limitada (incorporated in Brazil) 100 BBC Radiocom Deutschland GmbH (incorporated in Germany) 100 BBC Croatia d.o.o. (incorporated in Croatia) 100 BBC World Service Trust *

Associates Caribbean Relay Company Limited (incorporated in Antigua) 45 Multimedia Ventures Limited (incorporated in Great Britain) 50 WRG-FM SA (incorporated in Switzerland) 40 *The BBC World Service Trust is a charitable company limited by guarantee, of which the BBC is the sole member.

Although BBC World Service is technically the parent of the BBC World Service Trust, the Trust is exempt from consolidation. This is because the Trustees have a fiduciary duty to act in the best interests of the Trust’s beneficiaries and substantially all of the Trust’s income is made up of grants which are classified as restricted funds because their use is specified by donors, such that BBC World Service has no direct control over, or financial interest in, the assets of the Trust.

The results and balances of the other companies listed above are not material to BBC World Service either individually or in aggregate.

7 Stocks 2003 2002 £m £m Work in progress – programmes – 0.2

8 Debtors 2003 2002 £m £m Receivable within one year Tr ade debtors 5.4 4.3 Amounts owed by BBC Group 2.5 5.1 Amounts owed by associates 0.2 0.3 Amounts owed by subsidiaries 0.6 0.8 VAT recoverable 1.4 1.9 Other debtors 0.3 0.4 Prepayments 3.1 2.0 13.5 14.8

46 BBC World Service Annual Review 2002/2003 Notes to the financial statements

9 Creditors 2003 2002 £m £m Amounts falling due within one year

Tr ade creditors Programme creditors 0.2 0.4 Salaries and wages 4.0 2.5 Other trade creditors 2.3 2.4 6.5 5.3 Other creditors Fixed asset creditors 1.4 0.7 Corporation tax 0.2 0.7 Accruals and deferred income 5.2 4.0 6.8 5.4 13.3 10.7

Creditors payment policy It is the BBC’s policy to comply with the CBI prompt payment code in relation to the payment of suppliers, provided that the supplier is complying with the relevant terms and conditions of their contract. BBC World Service monitors compliance against the terms of this code. BBC World Service’s number of creditor days outstanding at 31 March 2003 was 17 (2002 16).

10 Provisions for liabilities and charges Dilapidations Restructuring To t a l £m £m £m At 1 April 2002 3.6 1.1 4.7 Utilised during the year – (1.0) (1.0) Released during the year – (0.1) (0.1) Charge for the year – 0.3 0.3 At 31 March 2003 3.6 0.3 3.9

The dilapidations provision represents a liability to restore Bush House to its original condition on the future move of BBC World Service to Broadcasting House in London W1.

11 Reserves Capital Revaluation Operating reserve reserve reserve To t a l £m £m £m £m At 1 April 2002 116.9 6.4 11.0 134.3 Broadcasting Surplus for the financial year – – 6.8 6.8 Revaluation reserve transfer – (0.8) 0.8 – Capital reserve transfer 10.7 – (10.7) – 10.7 (0.8) (3.1) 6.8 BBC Monitoring Surplus for the financial year – – 1.7 1.7 Capital reserve transfer 0.8 – (0.8) – 0.8 – 0.9 1.7 At 31 March 2003 128.4 5.6 8.8 142.8

BBC World Service Annual Review 2002/2003 47 Notes to the financial statements

12 Reconciliation of operating surplus to net cash inflow from operating activities

2003 2002 £m £m Operating surplus 7.9 6.1 Loss on disposal of tangible fixed assets 0.3 0.4 Depreciation 14.4 15.8 Decrease in stocks 0.2 – Decrease/(increase) in debtors 1.3 (4.8) Increase in creditors 2.4 2.4 (Decrease)/increase in provisions (0.8) 0.5 Net cash inflow from operating activities 25.7 20.4

13 Analysis of changes in net funds 2003 2002 £m £m Cash at bank and in hand at the beginning of the year 11.4 10.2 Increase in cash 1.1 1.2 Cash at bank and in hand at the end of the year 12.5 11.4

BBC Monitoring’s cash at bank and in hand of £9.2 million includes amounts arising as a result of charging a return on capital employed to stakeholder customers. Until 31 March 2003 there were limitations placed upon the use of these funds, such that they accumulated within the cash balance. However, it has now been agreed with HM Treasury that these funds can be utilised from 1 April 2003.

14 Commitments 14a Contracts placed for future expenditure 2003 2002 £m £m Fixed asset additions 15.5 19.3 Programme acquisitions and sports rights 0.1 0.3 Other 1.1 1.5 16.7 21.1

14b Other financial commitments BBC World Service has entered into contracts with VT Merlin Communications Limited for a period of ten years commencing March 1997 for the provision of transmission services. The contractual charge for the year ended 31 March 2003 was £31.5 million (2002 £30.6 million).

14c Operating leases Operating lease commitments payable in the following year, analysed according to the period in which the lease expires:

Land and Land and Plant and Plant and buildings buildings machinery machinery 2003 2002 2003 2002 £m £m £m £m Within one year 0.4 0.2 – 0.1 In two to five years 6.9 7.2 2.3 0.3 After five years 0.4 – – – 7.7 7.4 2.3 0.4

48 BBC World Service Annual Review 2002/2003 Notes to the financial statements

15 Contingent liabilities In the normal course of business, BBC World Service has a number of contingent liabilities arising from litigation. BBC World Service provides for an estimate of probable damages and costs.

16 Related party transactions The related party transactions of BBC World Service have been presented in accordance with FRS 8: Related Party Disclosures.

16a Transactions with subsidiaries At 31 March 2003 BBC World Service Trust owed BBC World Service £0.6 million (2002 £0.8 million) in respect of operating expenses incurred on its behalf.

BBC World Service made grants of £0.4 million (2002 £0.4 million) during the year to the BBC World Service Trust, towards education projects and general management and administration costs.

16b Transactions with associates At 31 March 2003 the Caribbean Relay Company owed BBC World Service £0.2 million (2002 £0.3 million), being funds transferred in respect of working capital requirements.

16c Transactions with key management During the year there were no disclosable transactions with key management.

16d Other transactions During the year BBC Group charged BBC World Service net costs of £136.4 million (2002 £131.3 million) in respect of operating costs. At 31 March 2003 BBC World Service was owed £2.5 million (2002 £5.1 million) by BBC Group.

BBC World Service Annual Review 2002/2003 49 Reports on compliance and regulatory matters

Responsibility for BBC World Service is vested in the BBC Board of Governors appointed under the BBC Royal Charter. The Governors have clear responsibilities under the BBC’s Charter to ensure that BBC World Service operates responsibly and follows all applicable regulations and codes of practice. They must satisfy themselves that BBC World Service:

+ complies with all legal obligations + has an appropriate management structure + maintains adequate controls to protect its assets + adheres to the BBC’s own guidelines and codes of practice

This and the following pages contain reports on BBC World Service’s policies, procedures and compliance as follows:

1 Statement of Board of Governors and BBC World Service Management Board responsibilities for the preparation of the financial statements 2 Report of the independent auditors to the Governors of the BBC 3 Governors’ report on BBC World Service Trading Protocols 4 Risk and control processes 5 Remuneration report 6 People 7 Political donations and gifts

1 Statement of Board of Governors and BBC World Service Management Board responsibilities for the preparation of the financial statements The Governors and Management Board are required by the BBC’s Charter and Agreement and the Financial Memorandum with the Foreign and Commonwealth Office to prepare financial statements for each financial year which give a true and fair view of the state of affairs of BBC World Service and of its income and expenditure for that period. In preparing those financial statements, the Governors and Management Board are required to:

+ select suitable accounting policies and then apply them consistently + make judgements and estimates that are reasonable and prudent + state whether applicable accounting standards have been followed and disclose and explain any material departures in the financial statements + prepare the financial statements on a going concern basis unless it is inappropriate to do so

In addition, the Governors and Management Board have voluntarily decided to comply with the accounting and disclosure provisions of the Companies Act 1985 and, where applicable, of the Financial Services Authority Listing Rules.

The Governors and Management Board are also responsible for keeping adequate accounting records and taking such steps as are reasonably open to them to safeguard the assets of BBC World Service and to prevent and detect fraud and other irregularities.

2 Report of the independent auditors to the Governors of the British Broadcasting Corporation (BBC) We have audited the financial statements on pages 35 to 49.

This report is made solely to the BBC’s Governors, as a body, in accordance with the Royal Charter for the continuance of the BBC which came into force on 1 May 1996 (the Charter) and the Financial Memorandum with the Foreign and Commonwealth Office. Our audit work has been undertaken so that we might state to the BBC’s Governors those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the BBC and the BBC’s Governors as a body, for our audit work, for this report, or for the opinions we have formed.

50 BBC World Service Annual Review 2002/2003 Reports on compliance and regulatory matters

2 Report of the independent auditors to the Governors of the British Broadcasting Corporation (BBC) continued Respective responsibilities of the Governors and BBC World Service Management Board and auditors The Governors and Management Board are responsible for preparing the Annual Review including, as described above, the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities as independent auditors are established in the United Kingdom by statute, by the Auditing Practices Board, our profession’s ethical guidance and, in accordance with the terms of our appointment, the Companies Act 1985.

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the financial review on page 34 is not consistent with the financial statements, if BBC World Service has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding Management Board remuneration and transactions with BBC World Service is not disclosed.

We read the other information contained in the Annual Review, including the corporate governance statement, and consider whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements.

In addition to our audit of the financial statements, the Governors and Management Board have instructed us to review their corporate governance statement as if BBC World Service were required to comply with the Listing Rules of the Financial Services Authority in relation to these matters. We review whether the statement on pages 52 to 56 reflects BBC World Service’s compliance with the seven provisions of the Combined Code specified for audit review by those rules, and we report if it does not. We are not required to form an opinion on the effectiveness of BBC World Service’s corporate governance procedures or its internal controls.

Basis of audit opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Governors and Management Board in the preparation of the financial statements, and of whether the accounting policies are appropriate to BBC World Service’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion the financial statements give a true and fair view of the state of affairs of BBC World Service at 31 March 2003 and of the surplus of BBC World Service for the year then ended and have been properly prepared in accordance with the provisions of the BBC’s Charter and Agreement, the Financial Memorandum and the provisions of the Companies Act 1985 as if those provisions had applied to these financial statements.

KPMG LLP Chartered Accountants, Registered Auditor, London 19 June 2003

BBC World Service Annual Review 2002/2003 51 Reports on compliance and regulatory matters

3 Governors’ report on BBC World Service Trading Protocols BBC 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 divisions of the BBC (the Supplier Divisions). BBC World Service also receives services from and supplies services to the BBC’s commercial subsidiaries (the Subsidiaries).

It was agreed by a joint Foreign and Commonwealth Office (FCO)/BBC World Service Working Group that the BBC would draw up guidelines to govern the trading relationship between BBC World Service and other parts of the BBC, in order to ensure that BBC World Service maintains its distinctive voice and to preserve the clear separation between Grant-in-Aid and licence fee income. These Trading Protocols were approved by the Governors’ Fair Trading Compliance Committee (FTCC) in 1997. Each of the Supplier Divisions then drew up detailed agreements with BBC World Service, specifying:

+ the services to be provided + criteria to ensure the quality of the services + the cost of the services

The FTCC is responsible for monitoring and reviewing compliance with the Trading Protocols. The FTCC receives regular reports from management on the effectiveness of the systems and procedures in place to ensure compliance with the Trading Protocols.

KPMG LLP (the external auditors) have reviewed a summary of the value of transactions and the related cash flows which have taken place during the year between BBC World Service and the Supplier Divisions and Subsidiaries. KPMG LLP have reported to the Governors that, in their opinion, the information contained in the summary of transactions for the year ended 31 March 2003 has been accurately extracted from the books and records of BBC World Service and the Supplier Divisions and Subsidiaries, and has been properly prepared on the bases of cost allocation and apportionment methods set out in the agreements between BBC World Service and the Supplier Divisions 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 BBC’s commercial subsidiaries.

Governors’ statement on BBC World Service Trading Protocols Following regular reports to the FTCC by the Head of Fair Trading, and internal and external auditors, the Governors are satisfied that:

+ the Trading Protocols reflect the requirements of the FCO/BBC World Service Working Group + agreements are in place which are consistent with the Trading Protocols + there has been no material cross-subsidy between Grant-in-Aid and licence fee funds or between Grant-in-Aid and the BBC’s commercial subsidiaries

4 Risk and control processes The BBC, including BBC World Service, has an obligation to apply the highest standards of corporate governance.

BBC World Service follows the seven principles of public life set out in the Nolan Committee reports on Standards in Public Life.

The Combined Code,issued by the London Stock Exchange in June 1998, sets out principles of good governance. BBC World Service voluntarily complies with the Combined Code to the extent it is applicable. The requirements of the Combined Code apply to BBC World Service with the following exceptions:

+ those requirements relating to shareholders BBC World Service is not accountable to external shareholders. Rather, through the stewardship of the Governors, it is accountable to the Foreign and Commonwealth Office, to Parliament and to taxpayers.

52 BBC World Service Annual Review 2002/2003 Reports on compliance and regulatory matters

4 Risk and control processes continued + those requirements relating to non-executive directors, remuneration and audit committees The Governors consider that BBC World Service should comply with the Combined Code in a manner which is common practice for an entity whose parent is complying with it. Hence the Governors do not consider it appropriate for BBC World Service to have separate non-executive directors or remuneration and audit committees from those established by the BBC, or to disclose the remuneration of the members of the BBC World Service Management Board, except to the extent that this is required by the Companies Act 1985.

Details of how BBC World Service has applied the remuneration principles are covered separately within the remuneration report on page 57.

Board structure The structure of the BBC World Service Management Board is shown on page 33. As explained above, BBC World Service does not have any non-executive directors. However, the Management Board is represented on the BBC’s Executive Committee and is accountable to the Governors who constitute the members of the Corporation and act as trustees for the public interest.

The Governors are appointed by the Queen in Council. They are appointed for a term of four years and are independent of BBC executive management. A register of interests of the Governors is maintained and may be inspected by written application to the Secretary of the BBC.

The Board of Governors refers some matters relevant to BBC World Service to its sub-committees as follows:

+ Audit Committee + Fair Trading Compliance Committee + Remuneration Committee

The Governors’ World Service Consultative Group also provides the Governors with independent external advice on the range and quality of BBC World Service output.

The Governors are supported by the Governance and Accountability department.

The BBC World Service Management Board meets every two weeks. Other members of management attend as required. A formal schedule of matters is reserved for Management Board decisions. This includes:

+ considering management structure and senior management responsibilities + agreeing membership and terms of reference of board committees and task forces and receiving minutes, reviewing decisions taken and deciding action on recommendations + agreeing contracts with major suppliers + deciding significant staff and industrial relations issues + agreeing business strategy + approving financial statements + approving annual budgets, subject to final approval by the Governors + agreeing a code of ethics and business practice, establishing an overall framework for proper controls

The Management Board members have access to the advice and services of the BBC World Service Secretary who is responsible for ensuring that Board procedures are followed.

Relationship with Foreign and Commonwealth Office (FCO) BBC World Service Broadcasting is primarily funded by parliamentary Grant-in-Aid received through the FCO. BBC Monitoring is funded by stakeholder subscriptions. The relationship between the FCO and BBC World Service is defined in the FCO/BBC World Service Broadcasting Agreement which sets out the aims and objectives of BBC World Service and provisions for performance assessment. The financial arrangement with the FCO is set out in the FCO/BBC World Service Financial Memorandum.

BBC World Service Annual Review 2002/2003 53 Reports on compliance and regulatory matters

4 Risk and control processes continued Accountability and internal control Financial reporting and going concern The respective responsibilities of the Governors, BBC World Service Management Board and the external auditors are set out on page 51.

A review of the financial position of BBC World Service is included on page 34. This, together with the director’s overview on pages 4 to 5, provides an assessment of BBC World Service’s performance and current position.

The going concern basis has been adopted in the preparation of the financial statements as the Governors and Management Board believe that BBC World Service will continue to receive adequate resources to continue its operations for the foreseeable future.

Internal control The BBC World Service Management Board is responsible for maintaining an adequate system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The Governors and Management Board consider that there is an ongoing process for identifying, evaluating and managing the significant risks faced by BBC World Service. This process has been in place for the year ended 31 March 2003 and up to the date of approval of this report and financial statements. As part of the BBC’s overall risk management process it has been reviewed by the Governors and BBC Executive Committee and accords with the guidance set out in the ICAEW’s guidance for directors Internal Control: Guidance for directors on the Combined Code.

The key control procedures operating during the year are described below:

+ risk management The Management Board is responsible for identifying and managing risk on an ongoing basis. BBC World Service has a formally constituted Internal Control Committee (ICC), comprising the members of the Management Board, World Service Financial Controller and a representative of BBC Internal Audit. The ICC meet three times a year to update their assessment of BBC World Service’s exposure to risk, and the extent to which these risks are controlled.

+ monitoring of controls BBC Internal Audit undertakes testing of control systems and compliance with core business processes, based on a regularly updated assessment of key risks and issues facing BBC World Service. The results of testing are reported to each meeting of the Governors’ Audit Committee, which scrutinises the operation of controls throughout the year.

+ business unit controls Management have defined the controls and procedures with which each business unit is required to comply. Key controls over major business risks include performance review and exception reporting. Reviews by BBC Internal Audit monitor the operation of controls.

54 BBC World Service Annual Review 2002/2003 Reports on compliance and regulatory matters

4 Risk and control processes continued + business continuity During the year BBC World Service has reviewed broadcasting contingency arrangements, including those in respect of overseas activities. An updated contingency plan has been put in place which will provide improved back-up arrangements. Further work is being carried out to improve resilience in overseas offices.

+ computer systems BBC World Service has established controls and procedures over the security of data held on computer systems. Arrangements are in place for computer processing to continue and data to be retained in the event of failure of BBC World Service’s own data processing facility.

+ controls over outsourced transaction processing The majority of BBC World Service’s financial transaction processing is outsourced to a service company, Medas, which is independent of the BBC. The Chief Operating Officer and Director of Finance has established monitoring procedures to review the performance of Medas on a regular basis. These include regular review by BBC Internal Audit in a programme of work based on a continuing assessment of key risks and issues.

+ whistle-blowing The BBC has a ‘whistle-blowing’ policy. This policy facilitates the anonymous communication to the BBC of any incident in which there is a suspicion that there has been wrongdoing. The process is administered by an independent external company to ensure anonymity. Each reported incident is notified to the BBC Head of Internal Audit who ensures that every incident is investigated, a response communicated and action taken as appropriate.

+ financial reporting and controls BBC World Service has a comprehensive budgeting system with an annual budget approved by the Governors, prepared in line with the BBC World Service Three Year Plan. Monthly financial information is reported against budget figures, with corrective action being taken by the Management Board as appropriate. All capital expenditure over certain upper thresholds must be approved by a BBC investment approval committee and, in some cases, by the FCO and HM Treasury.

Governors’Audit Committee Matters relating to BBC World Service are also considered by the Governors’ Audit Committee. The Committee meets at least four times each year, and is charged with:

+ reviewing the effectiveness of internal control + approving and monitoring the BBC Internal Audit work plan + considering issues arising from external and internal audit work + reviewing management’s response to internal control issues + approving the external audit fee + discussing with the external auditors their audit strategy and plans + reviewing the independence of the external auditors, specifically considering and approving any non-audit services + reviewing the performance and effectiveness of the external auditors + reviewing the external auditors’ reports + reviewing and approving the financial statements.

BBC World Service Annual Review 2002/2003 55 Reports on compliance and regulatory matters

4 Risk and control processes continued In reviewing the financial statements of BBC World Service, the Committee considers any significant issues and the appropriateness of accounting policies adopted in relation to significant or unusual transactions where more than one policy may apply.

The Committee is comprised exclusively of Governors of the BBC. Members of BBC executive management attend meetings by request of the Committee.

The Committee has considered the recommendations contained in the report of the Financial Reporting Council (issued January 2003), the Smith Report,and have implemented the necessary measures to ensure that the BBC fully meets those recommendations.

Independence of external auditors Both the Governors’ Audit Committee and the external auditors themselves have safeguards in place to avoid the possibility of the auditors’ objectivity and independence being compromised.

The Committee regularly reviews the independence of the external auditors, currently KPMG LLP. The Committee holds discussions with the external auditors without management being present. The Committee is notified of all non-audit services proposed to be commissioned from KPMG LLP and reviews the level of non-audit fees paid to them. Any significant consulting work is put out to competitive tender. The external auditors are specifically excluded from being considered for certain types of work, where the effect could be to prejudice their ability to express an independent and objective opinion. Recruitment from KPMG LLP into any senior management position requires the prior approval of the Committee.

Fair trading compliance procedures The BBC’s fair trading obligations are embodied in its Fair Trading Commitment, compliance with which is scrutinised throughout the year by the Governors’ Fair Trading Compliance Committee (FTCC). The Committee is advised directly by independent auditors commissioned and managed by the Governance and Accountability department, and by the BBC’s Head of Fair Trading and Head of Internal Audit, if necessary without the mediation of BBC management. All staff with commercial responsibilities are required by the Committee to be trained in the BBC’s fair trading policies.

The management of the BBC’s fair trading arrangements is regularly tested by the British Standards Institute and these arrangements have been accredited with the ISO 9001:2000 quality standard. The last assessment conducted in November 2002 confirmed that the procedures are continuing to operate effectively.

Statement of compliance with the Combined Code of Best Practice BBC World Service has complied throughout the year ended 31 March 2003 with the specific provisions in section 1 of the Combined Code with the exception of those provisions relating to non-executive directors, remuneration and audit committees and shareholder requirements which, as discussed earlier, are not applicable to BBC World Service.

56 BBC World Service Annual Review 2002/2003 Reports on compliance and regulatory matters

5 Remuneration report This report explains the remuneration policy of the BBC for the BBC World Service Management Board. Details of Management Board remuneration are included within Note 3c to the financial statements on page 42.

The remuneration policy for members of the BBC Executive Committee, including the remuneration package for the Director, BBC World Service and Global News, is set by the Remuneration Committee which is a sub-committee of the Board of Governors. The remuneration of other members of the Management Board is recommended by the Director and approved by the BBC Director-General and the BBC Director of Human Resources and Internal Communications.

The Director assesses the performance of the Management Board members before recommending their annual remuneration and bonus awards. BBC World Service’s Human Resources Director provides technical support to the Director in this respect, but has no input into decisions affecting her own remuneration.

The BBC aims to ensure that the packages offered to Management Board members:

+ enable BBC World Service to attract, retain and motivate high-calibre executives + remunerate individuals fairly for individual responsibility and contribution, while providing an element of performance-related pay, reflecting the underlying performance of BBC World Service + take into account salary policy within the rest of the BBC and the relationship that should exist between the remuneration of Management Board members and that of other employees

The remuneration arrangements for Management Board members include the following components:

Basic salary Basic salaries are reviewed in August each year, taking into account external market levels and internal comparisons as well as the individual’s responsibilities and performance. The basic salary is paid as a fixed sum monthly in cash.

Annual bonus Management Board members are eligible to receive a bonus of up to 10% of basic salary for meeting certain performance targets. Qualitative and quantitative objectives are set at the beginning of the financial year, and performance is reviewed at the end of the year. As a member of the BBC Executive Committee, the Director, BBC World Service and Global News, participates in a performance-based annual bonus scheme under which payments may be awarded up to a maximum level of 30% of base salary. Bonuses are reflected in the financial statements on an accruals basis for the performance period under review. Actual payments are made in August each year.

Benefits In addition to salary and bonus, the main contractual benefits provided to Management Board members are a car, private health insurance, pension and life insurance. The Director is also entitled to a car fuel allowance.

Pensions Management Board members are eligible to participate in the BBC Pension Scheme, which provides salary-related pension benefits on a defined benefit basis, with an accrual rate of 1/60th of final salary per year of service, subject to the Inland Revenue earnings cap where appropriate. Only basic salary is pensionable. The scheme provides for early retirement on medical grounds and life insurance cover of four times salary.

BBC World Service Annual Review 2002/2003 57 Reports on compliance and regulatory matters

6 People Between May and November 2002, more than 700 BBC World Service staff, including staff based in Prague, Delhi, Nairobi and Moscow, made their voices heard in Just Imagine workshops, the BBC’s largest ever staff consultation. This was part of Making It Happen,the cultural change programme to transform the BBC into the world’s most creative organisation. A BBC World Service action plan has now been announced, alongside the overall BBC action plan, to address the key issues raised by staff.

After gaining Investors in People (IiP) accreditation in 2000, BBC World Service Broadcasting successfully reached IiP standards against all criteria in a post-recognition review undertaken in June 2002. BBC World Service was specifically commended for being fully committed to developing its people in order to achieve its aims and objectives. BBC Monitoring also gained IiP accreditation in April 2002.

Recruitment, training and development The attraction of talent from around the world is fundamental to the continued success of BBC World Service. Over 230 recruitment campaigns have been run during the year to attract the best journalistic talent.

An improved induction process has been introduced to provide additional support to new staff and their families. New joiners now attend Upfront,the new four-day induction programme for all new BBC staff.

BBC World Service invested £2.3 million in training and development during the year. Staff in all areas have access to a growing range of opportunities through coaching, courses, workshops, online learning and secondments. Additional investment was made in the year to support a series of secondments from BBC World Service to high profile areas of BBC News.

Employee relations and communication BBC World Service has a system of regular liaison meetings with the NUJ (National Union of Journalists) and BECTU (Broadcasting Entertainment Cinematograph and Theatre Union).

BBC World Service participated in the 2002 BBC annual independent survey of staff opinion to assess the quality of internal communications. The survey confirmed that the system of core briefing is strong in BBC World Service with almost 80% of staff receiving a face-to-face briefing from their manager each month. Of these, 91% felt they were able to ask questions or raise issues or concerns at these briefings. Overall, 73% of those surveyed felt well informed and 76% felt the information provided was credible.

Health and safety The events of the year, including the conflict in Iraq, again made it essential to ensure that adequate and timely safety training was provided to all staff deployed into hostile environments.

Diversity BBC World Service is committed to continuing to develop a diverse workforce which is representative of the audience it serves.

Proportion of people from ethnic minorities A comprehensive diversity action plan, developed with the trade unions, includes a number of initiatives to encourage the greater representation of minority ethnic groups at senior levels, including a specially tailored development programme.

58 BBC World Service Annual Review 2002/2003 Reports on compliance and regulatory matters

6 People continued The composition of the workforce of BBC World Service reflects the multi-lingual nature of its broadcasting and therefore exceeds the BBC’s targets. As these targets had already been exceeded, the aim for the year was, as a minimum, to maintain the proportion of ethnic minorities in the BBC World Service workforce and to increase representation at senior levels.

BBC group At 31 At 1 target for March 2003 April 2002 December 2003 % %% Staff working in the United Kingdom 25.8 25.4(1) 10 Senior managers working in the United Kingdom 7.3 5.0 4

(1)On 1 April 2002, 185 Broadcast Operations equivalent full-time staff were transferred into BBC World Service, 6.8% of whom were ethnic minority staff. The impact of the transfer was to reduce the overall percentage of ethnic minority staff to 25.4% from the 27.8% previously reported at 31 March 2002. During the year this percentage has risen to 25.8%.

People with disabilities The number of BBC World Service staff declaring a disability at 31 March 2003 is 26, the same number as in the previous year. The recruitment of more disabled people to BBC World Service remains a challenge, along with the rest of the BBC. A series of seminars was held in the year to improve the awareness of managers about disability.

7 Political donations and gifts BBC World Service does not make political donations.

The Financial Memorandum permits BBC World Service to make gifts of equipment and services. Government accounting guidelines on gifts must be followed with Foreign and Commonwealth Office (FCO) approval required for gifts of a value exceeding £10,000. Gifts of cash, of whatever value, cannot be made without the prior agreement of the FCO. No gifts of equipment, services or cash were made during the year.

BBC World Service Annual Review 2002/2003 59 Further information

Picture Credits BBC World Service BBC English – information on learning English Front Cover Iraq – Getty Images Bush House, Strand, London WC2B 4PH, UK materials radio and online Inset pictures Loya Jirga – AP Tele phone +44 (0)20 7240 3456 Telephone +44 (0)20 7557 1200 Kofi Annan – BBC Fax +44 (0)20 7557 1258 Fax +44 (0)20 7557 1311 Page 2 Afghanistan – Reuters E-mail worldservice@bbc.co.uk E-mail [email protected] Iraq – Getty Images Website www.bbc.co.uk/worldservice Website www.bbc.co.uk/learningenglish Page 3 Afghanistan – AP Page 4 Aung San Suu Kyi – Reuters Radio Schedules and Frequencies BBC World Service Shop Commonwealth For information visit The BBC World Service Shop and Information Games – PA www.bbc.co.uk/worldservice/schedules Centre at Bush House sells an exclusive range of Page 5Earth Summit – AP World Service gift items, along with BBC books, Nigeria – Reuters If you have any comments or suggestions about videos, audio cassettes and a range of short wave Pages 6-7 John Simpson – Network BBC World Service programmes in any language, radios. Information on BBC radio and television Photographers or would like further details about how to programmes is available. There is a mail order Rageh Omaar – BBC receive them, please contact Audience Relations and online shopping service for the UK only. Clive Myrie – BBC at the above address. Listeners in English can also Telephone +44 (0)20 7557 2576 Paul Wood – BBC Lyse Doucet – Pixsil air their views in the Write On programme. Fax +44 (0)20 7240 4811 Page 8 Radio – AP E-mail [email protected] E-mail [email protected] Saddam – Network Website www.bbcshop.com Photographers BBC On Air Network Page 9 Hans Blix – Getty To k eep you up-to-date with our schedules BBC Training and Development, World Service Images To ny Blair – BBC and frequencies, BBC World Service and BBC Telephone +44 (0)20 7557 2200 Page 10 Demonstration – On Air magazine now offer a free e-mail service Fax +44 (0)20 7497 0288 Getty Images called BBC On Air Network. You can choose E-mail [email protected] Page 11 Kuwait – PA e-mail updates on topics such as sport, science, Jordan – Reuters Kuwait – PA world affairs and arts each month. We will BBC World Service Trust Iraq – Reuters also send you scheduling information to keep Telephone +44 (0)20 7557 2462/3 Page 12 Loya Jirga – AP you in touch with all that’s new from the Fax +44 (0)20 7379 1622 Ashraf Ghani – World Service. Joining is simple. Just e-mail E-mail [email protected] Reuters [email protected] Website www.bbc.co.uk/worldservice/trust Page 13 Afghanistan – AP Page 14 Kofi Annan – BBC Pages 16-17 Caversham Park – BBC Monitoring Annual Review online Peter Marlow/Magnum Caversham Park, Reading RG4 8TZ, UK You can access a version of the BBC World Photos Tele phone +44 (0)1189 486 000 Service Annual Review 2002/2003 online at Bush House – Hulton Getty Fax +44 (0)1189 462 927 www.bbc.co.uk/worldservice/aboutus Ruga Me Pisha – BBC E-mail [email protected] World Service Trust Website www.monitor.bbc.co.uk Pages 18-19 World Cup winners – Getty Images BBC World Service Press Office – media Page 21 BBC Monitoring – Peter Marlow/Magnum enquiries including BBC Monitoring Photos Tele phone +44 (0)20 7557 2941 Moscow siege – PA Fax +44 (0)20 7557 1912 Pages 22-23 BBC Monitoring – Peter Marlow/ Magnum Photos BBC On Air – international magazine and This Report is printed on Core Silk. Pulps used Page 24 BBC World Service programme guide in the production of this paper are Elemental Tr ust Tele phone +44 (0)20 7557 2211 Chlorine Free (ECF) and are sourced from Page 25 Africa Live! – BBC E-mail [email protected] sawmill residues, forest thinnings and sustainable Solar transmitter – Website bbconair.com forests. The paper mill that produces Core Silk BBC Pages 26-27 BBC World Service has ISO 14001 Accreditation. All inks and Tr ust BBC Focus on Africa magazine varnishes are soya-based and are 100% free of Pages 32-33 Bill Robinson Tele phone +44 (0)20 7557 2906 mineral oils and harmful emissions from volatile E-mail [email protected] organic compounds. A water-based coating has Website www.bbc.co.uk/worldservice/focus been used on the inner and outer cover.

60 BBC World Service Annual Review 2002/2003 Muchas voces un solo mundo

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