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The Bbc World Service Trust The BBC World ServiceTrust (a companylimited by guarantee) Registerednumber 3521587 Registeredcharity number 1076235 YearEnded 3l March2007 TheBBC WorldService Trust (a companyLimited by guarantee) TrusteeJreport and consolidated financial statements 3l March2007 Contents Legal and adminisrative information I Trustees'Report 2 Report ofthe IndependentAuditor to the MembersofThe BBC World ServiceTrust 9 ConsolidatedStatement of FinancialActivities l0 ConsolidatedBalance Sheet Trust BalanceSheet t2 ConsolidatedCashflow Statement l3 Notes t4 The BBC World ServiceTrust (a companyLimited by guaranlee) Trustees'repon and consolidatedfi nancialstalements 3l March 2007 Trustees'Report Legal and administrative information Trustees The Trustees,who are alsodirectors ofthe company,who held office duringthe year,and sincethe year end were asfollows: NC Chapman* Z Badawi C Beauman* S Robinson-King MC McCulloch* B Mistry CAM Thomson ProfessorJP Vaughan M Williams AC Woodhams* H Fralord Johnson(appointed 20 April 2007) * Memberof the Audit committee CompenySecretary LindseyNolth ExecutiveOfficers Direclor StephenKing Findnce Dircctor EliotLyne Director of InternationalOperations Kari Blackburn Director, Middle East, Former Soviet Union and Europe Region SimonDerry Director, Asia Region CarolineHowie Director, AJiica Region AnnaDa Silva Director, Research& Learningand KnowledgeManagemenl Gerry Power RegisteredOflice BushHouse, PO Box 96,Strand, London WC2B 4PH Auditors KPMG LLP, PO Box 695,8 SalisburySquare, London, EC4Y 8BB Bankers LloydsTSB Bankplc, City Office,PO Box 72,Bailey Drive, Gillingham Business Park, Kent, ME8 0LS 'the BBC WorldService Trust (a companyLimited by guaranlee) Trustees'report and consolidated financial statements 3l March2007 Trustees' Report (continued) Structure 'Trust') The BBC World ServiceTrust (the is registeredas a charity (registerednumber 1076235),and is incorporatedas a company limited by guarantee(registered number 3521587). The Trust was establishedunder its Memorandum of Associationwith the objectsand powers ofthe charitablecompany. [t is governedby its Articles ofAssociation. The Trust is a company limited by guarantee.The sole memberofthe Trust (the BBC) undertakesto contributeto the assetsofthe Trust in the event ofit being wound up, while it is a memberor within one year after it ceasesto be a member,for paymentofthe debtsand liabilities ofthe Trust contractedbefore it ceasesto be a member,and ofthe costs, chargesand expensesofwinding up, for the adjustmentofthe rights ofthe contributorsamong themselves,such amount as may be requirednot exceedingt I I . Each Trusteeis a subscriberto the Memorandumof Associationand accordingly the Trusthad l0 subsc bersat the endofthe year. The Trustees,who are also dtectors ofthe company,are listed on page I ofthe accounts.The number ofTrustees shall be not lessthan three and not more than eleven,ofwhom 6 shall be nominatedby the BBC. The provisionsfor rotation ofthe Trusteesare set out in the Articles ofAssociation as follows: "at the Annual GeneralMeeting one-third ofthe Directors for the time being, or, iftheir number is not three or a multiple ofthree, then the number nearestone-third shall retire fiom office. A retiring Director shall be eligible for re-election." Potentialnon-BBC Trusteesare selectedthough a processwhich includespublic advertising. Existing Trusteesappoint new Trusteeson the basisof majority vote. All Trusteesreceive a comprehensiveinduction to the work ofthe Trust conductedby the Director and ExecutiveTeam, as well as ongoing training as and when required. Trusteesare also issuedwith a set ofaccompanying documentswhich includesall relevant legal goveming papersand the latestfinancial information. Clear information on their liabilities and responsibilitiesas Trusteesis included in thesepapers. The Trust hastwo subsidiarycompanies. The BBC World ServiceTrust Limited and Marshall Plan of the Mind Inform are 1007oowned by the Trust. The subsidiariesdid not trade in the currentyear. Governance& Manag€ment The Trusteesmeet at quarterly intervals for the despatchofbusiness. Questionsarising at any meeting are decidedby a majority of votes. In the caseof an equality of votes the Chairman has a secondor casting vote. A Trusteemay, and the Secretaryon requisition of a Trustee may, at any time summona meeting ofthe Trustees.The quorum necessaryfor the tmnsaction of the businessof the Trustees shall be the ereater of t\ryoTrustees or one third of the total number of Trustees. The Trusteesseek to ensurethat all activities conform to UK and relevant local laws and are within agreedcharitable objectives.Their work includessetting strategic direction and agreeingthe financial plan. Trusteesact on advice and information llom regular meetingswith the Director. Decisionsmade at other levels ofthe organisationare reportedto the Trustees. The Audit Committee is appointedby the Trusteesand consistsof four members. lt meetsonce a year to consider reponsfrom theexlemal auditors. Stat€mentof Trustees'Responsibilities The Trusteesare responsiblefor preparingthe Trustees'AnnualRepon and the financial statementsin accordancewith applicablelaw andregulations. Company Iaw requiresthe Trusteesto preparefinancial statementsfor eachfinancial year in accordancewith UK Accounting Standardsand applicablelaw (UK GenerallyAccepted Accounting Practice). The group and charitablecompany's financial statementsare requiredby law to give a true and fair view ofthe stateof affairs ofthe group and charitablecompany and ofthe group'sexcess ofexpenditure over income for that period. In preparingthese financial statements,th€ trusteesare requiredto:- TheBBC world ServiceTrust (a conpanyLimited by guarantee) Truslees'report and consolidated fi nancial statements 3l March200? Trustees' Report (continued) Statem€nt of Trustees' Responsibilities (continued) . selectsuitable accounting policies and then apply them consistently, . makejudgementsand estimatesthat are reasonableand prudent; . statewhether applicableaccounting standards have been followed, subjectto any material departuresdisclosed and explainedin the financial statements;and o preparethe financial statementson the going concernbasis unlessit is inappropriateto presumethat the group and the charitablecompany will continue its activities. The Trusteesare responsiblefor keepingproper accountingrecords that disclosewith reasonableaccuracy at any time the financial position ofthe charitablecompany and enablethem to ensurethat its financial statementscomply with the CompaniesAct 1985.They have generalresponsibility for taking such stepsas are reasonablyopen to them to safeguard the assetsofthe group and to preventand detectfiaud and other irregularities. In preparingthese financial statements,the Trust has also complied with the StatementofRecommended Practice issued in March2005. The Trusteesdelegate day-to-day management ofthe Trust to the ExecutiveOfficers (listed on page l). Risk management The Trust has identified the major risks affecting its work and has rankedthese by likelihood and impact. The Trust has 'net' consideredthe 'gross' risk and the risk after assessingthe controls in place to deal with the risks identified. The Trusteeshave assessedthese risks and are satisfiedthat reasonablesteps are being taken to mitigate exposureto these risks. The Trust has identified ExecutiveOfficers who are responsiblefor managingeach risk identified and have incorporatedin the Trust's workplan the principal actionsrequired to improve risk mitigation. The Trust operatesan annualplanning and budgetingsystem with an annualbudget approvedby the Trustees. Any significant changesto thoseplans needspecific approval. Revisedforecasts are made during the courseofthe year. Related Parties The Trust often works closely with BBC World Service,some programmes being broadcaston BBC World Service airwaves.Two Trusleesare also membersof the BBC World ServiceManagement Board and BBC World Servtce provides an annualcontribution to the core costsofthe Trust. The BBC group provides the Trust with staff, and other ancillary services,which the Trust pays for at cost. During the year, the Trust procuredsome servicesftom BBC World Serviceon an arms-lengthbasis. At 3 I March 2007, an amountof € 150,796(2006: €65) was owing to BBC World Service. This amountowing is non-interestbearing and repayableon demand. BBC World SeNice is a relatedparty by yirtue ofthe fact that NC Chapmanand AC Woodhams,Trustees during the period, were also membersof BBC World ServiceManagement Board. Summary of Objects As an independentnon-profit making organisation,the Trust exists to promote and develop the educationof the public through the presentation,publication, broadcastingand disseminationofeducational material worldwide. It achievesthis through managingthe following activities: r producing educational programmes and support material, broadcast on BBC World Service airwaves, online facilities and national broadcastingpartner stationsreaching over 183 million people in English and 33 other Ianguages o conducting in-country educationalhealth and social developmentcampaigns in partnershipwith local broadcasters, national and intemationalpartners . working with local media organisationsto increaseskills and support the training and developmentof independent media TheBBC world ServiceTrust (a companyLinited by guaranlee) Trustees'repon and consolidaled financial stalements ll March2007 Trustees' Report (cont inue d) Objectivesand Activities The Trust usesmedia and communicationsto
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