Part One: Inside the Trust

Inside the Trust

Who we are, how we operate
and how much it costs

BBC Annual Report and Accounts 2013/14

35

Inside the Trust

BBC Trustees
Getting the best out of the BBC for licence fee payers
Trustees are part time and come from a variety of backgrounds,
bringing a wide range of experience to the BBC.

Lord Patten of Barnes CH, Chairman(stepped down on 6 May 2014)

Diane Coyle OBE, Vice Chairman(Acting Chairman from 6 May 2014)

Sonita Alleyne OBE

Other roles
Chancellor, University of Oxford; Co-Chair,
UK-India Round Table; non-executive
director, Russell Reynolds Associates;
International Advisory board member, BP;
Stakeholder Advisory Panel member, EDF.

Lead Trustee on commercial issues.

Lead Trustee on diversity and equality(with Richard Ayre).

Richard Ayre

Alison Hastings

David Liddiment

Lead Trustee on diversity and equality(with Sonita Alleyne), transparency issues,and the complaints framework.

Trustee for England

Other roles
Non-executive director, All3Media;
associate, Old Vic Theatre Company;
Chair, Hepworth Wakefield Gallery.

Other roles
Freedom of Information Adjudicator,
The Law Society.

36

Other roles
Director, Enlightenment Economics;
Stakeholder Advisory Panel member, EDF;
member of Governing Council, National
Institute of Economics and Social Research.

Other roles
Vice President, British Board of Film
Classification; non-executive director,
Clatterbridge Cancer Centre; consultant
and trainer, Press Complaints Commission.

Other roles
Founder, Yes Programme Ltd; nonexecutive director, Archant; member,
British Board of Film Classification;member, London Legacy Development
Corporation.

BBC Annual Report and Accounts 2013/14

Part One: Inside the Trust

Bill Matthews

Aideen McGinley OBE

Nick Prettejohn

Trustee for Scotland; Chairman,
BBC Pension Trust Ltd.

Trustee for Northern Ireland.

Trustee from 1 January 2014.

Other roles
Director, M2M2 Limited; non-executive
board member, Security Industry
Authority; member for Scotland,
British Transport Police Authority.

Other roles
Jury member, UK City of Culture 2017;
trustee, Fermanagh Trust; governor,
St Michael’s College, Enniskillen; co-chair,
Carnegie Trust Roundtable on Wellbeingin Northern Ireland.

Other roles
Independent director, Prudential
Regulation Authority (stepped down on
6 March 2014); chairman, Britten-Pears
Foundation; chairman, Royal NorthernCollege of Music; chairman, Scottish
Widows (from 23 June 2014); nonexecutive director, Lloyds Banking
Group plc (from 23 June 2014).

Elan Closs Stephens CBE

Suzanna Taverne

Lord Williams of Baglan

Trustee for Wales.

Other roles
Non-executive director, Ford Credit
Europe; trustee, StepChange Debt
Charity; trustee, Shakespeare Schools
Festival; advisory board member,
Manchester Business School.

Other roles
Distinguished Visiting Fellow, Chatham House;member of the international advisory board,
Toledo CITPAX, Toledo International Centre
for Peace; member of governing board,
School of Oriental and African Studies.

Other roles
Emeritus Professor, Aberystwyth
University; non-executive director
and chair, Corporate Governance,
Welsh Government; member, S4C
Authority; non-executive director,
IMAX Waterloo (BFI).

BBC Annual Report and Accounts 2013/14

37

Inside the Trust

Governance
The BBC Trust is the governing body of the BBC.
We are supported by the Trust Unit, a team ofprofessional BBC staff who report directly to us.
The Trust sets the strategic objectives for the BBC and issues aservice licence to every BBC service stating what we expect it
to deliver and how much it can spend. We uphold the BBC’s
editorial standards and protect the BBC’s independence. The
Trust is separate from the Executive which is led by the DirectorGeneral, providing the editorial and creative leadership of the
BBC and managing the operational delivery of its services.
The functions and duties of the Trust are outlined in the BBC’s
Royal Charter and the BBC’s Agreement with the Secretary ofState. The Trust operates in accordance with published protocols,
and the way we make decisions is governed by our Standing
Orders. As Trustees we commit to acting in accordance with
our Code of Practice.
Our regular business is undertaken in monthly meetings of thefull Trust and some sub-committees. At these meetings we makedecisions relating to our duties and responsibilities and consider
proposals from the Executive Board.
We publish the minutes of our monthly Trust meetings on our
website. We also publish the evidence and research on which ourdecisions are based, the findings of all editorial appeal decisions,and the outcomes of value for money and service licence reviews.
Trustee changes during the year
The Trustees listed on pages 36 and 37 reflect the membershipof the Trust at 31 March 2014. Anthony Fry stepped down on
30 October 2013. Nick Prettejohn’s term began on 1 January 2014.
Lord Patten stepped down as Chairman on 6 May 2014.
Trustees’ attendance at Trust meetings (1 April 2013 – 31 March 2014)

Chairman
Lord Patten

19/19

Vice Chairman
Diane Coyle

19/19

National Trustees
Alison Hastings
Bill Matthews
Aideen McGinley
Elan Closs Stephens

18/19
18/19
19/19
18/19

Trustees
Sonita Alleyne
Richard Ayre
Anthony Fry
David Liddiment
Nick Prettejohn
Suzanna Taverne
Lord Williams

17/19
19/19
8/10
19/19
6/6
18/19
16/19

38



Assessing our own performance
The Trust’s Standing Orders set out that each year the Trustshould evaluate its own performance and that of its committees,
and publish the results in the Annual Report.
In light of the 2013 governance review which recommended
further clarity between the roles of the Trust and the Executive,
we decided to use this year’s review process not only to assess lastyear’s performance, but also to consider how we can implement
these recommendations to achieve the best results for licencefee payers. We decided to use an external consultant to ensure
frankness and objectivity, and to help benchmark our performanceagainst that of other bodies. After a competitive process, weselected consultancy firm Egon Zehnder to run the evaluation.
The main conclusions of the review included steps to consolidate
the clarity of the Trustees’ role, to enhance collective working
within the Trust and to develop further effective interaction with
the Executive. The cost of the external board evaluation was£65,000 (+VAT).
The Trust Unit
We are supported in our work by the Trust Unit, which provides
independent and objective advice, calling on outside experts
when necessary. The Unit is made up of BBC staff who are
independent of the Executive and report directly to us. It includes
professional staff with expertise across a range of disciplines,
including corporate governance, policy development, audience
research, financial and performance analysis, economics and law.
The Unit advises us on our duties, manages the Trust’s supervisory
and regulatory functions, and provides us with independent
assessments of proposals from the Executive Board. Most Unit
staff are based in London; others are based in offices in Belfast,
Birmingham, Cardiff and Glasgow.
Register of interests
Our Code of Practice requires us to maintain and publish aregister of all external interests that might be seen to affect ourability to perform the duties of a BBC Trustee. This register includes
declarations of all positions of employment, directorships andvoluntary positions as well as interests of close family members, if
relevant. The Trust’s register of interests is published on our website.

BBC Annual Report and Accounts 2013/14

Complaints and Appeals Board
Chair: Richard Ayre

The Complaints and Appeals Board (CAB) deals with appeals andcomplaints to the BBC about everything except programme-making
and content. There are two CAB standing members who aresupplemented by one or more additional Trustees as needed.
In 2013/14, of the 239 TV Licensing, fair trading and general appeals
received, seven were heard in full by the CAB (four were upheld andthree were not). Overall 96% of complaints were dealt with in thetarget time (40 working days for admissibility decisions and 80
working days for CAB findings and decisions). The CAB is responsible
for reviewing the effectiveness of the BBC’s complaints framework,
Audience Councils Committee
which was relaunched in 2012/13. The CAB commissioned a ‘mystery
Chair: Diane Coyle
shopping’ exercise to test the way complaints were being handled at
Stage 1 of the BBC’s complaints procedure. Testing took place during
The Audience Councils Committee (ACC) brought together
the summer of 2013 with the results published in February 2014.
the Vice Chairman and the four National Trustees to oversee
The role and responsibilities of the CAB remain unchanged in theand co-ordinate the contributions of the BBC’s Audience Councils new committee structure.
as advisory bodies to the Trust. Its role was to ensure that issues
identified by the Audience Councils were dealt with appropriately Meeting attendance (1 April 2013 – 31 March 2014)
Trustee
Attendanceby the Trust and that the Councils worked within their remits.
The ACC also approved membership of the Audience Councils.
Richard Ayre (Chair)
13/14
In April 2014, the ACC’s functions were incorporated into those
Elan Closs Stephens (standing member)
14/14
of the full Trust.
Sonita Alleyne
1/1
Diane Coyle

3/3

Attendance

Alison Hastings

2/2

2/2

David Liddiment

0/1

2/2

Bill Matthews

1/1

Bill Matthews

2/2

Aideen McGinley

2/2

Aideen McGinley

2/2

Nick Prettejohn

1/1Elan Closs Stephens

2/2

Suzanna Taverne

2/3

Lord Williams

1/1

Meeting attendance (1 April 2013 – 31 March 2014)

TrusteeDiane Coyle (Chair)
Alison Hastings

Committee membership changes: there were no changes during this period.

Committee membership changes: there were no changes during this period.

Audiences and Performance Committee
Chair: David Liddiment
The Audiences and Performance Committee (APC) was
responsible for developing the strategy for, and assessing theperformance of, the BBC’s UK public services on behalf of theTrust. It monitored how the BBC delivers its public purposes.
The APC assessed the performance of the BBC’s services against
their service licences, including overseeing the Trust’s programmeof service reviews. The APC was also responsible for the Trust’s
programme of audience research and public consultation. In April
2014, the APC’s functions were incorporated into those of theServices Committee and the full Trust.

Editorial Standards Committee
Chair: Alison Hastings
The Editorial Standards Committee (ESC) is responsible, on behalfof the Trust, for establishing the BBC’s editorial standards andoverseeing the BBC’s services for compliance with these standards.
Editorial standards are enshrined in the BBC’s Editorial Guidelines,
which are approved by the Trust. The ESC is the final appeal bodywithin the BBC in determining whether the Editorial Guidelines
have been followed, and the final arbiter of complaints on appeal
to the Trust. The ESC also manages the Trust’s programme of
impartiality reviews and seminars. The role and responsibilitiesof the ESC remain unchanged in the new committee structure.

Meeting attendance (1 April 2013 – 31 March 2014)
Trustee

Attendance

Meeting attendance (1 April 2013 – 31 March 2014)

10/10

Trustee

Sonita Alleyne

8/10

Alison Hastings (Chair)

15/15

Alison Hastings

10/10

Sonita Alleyne

14/15

9/10

Richard Ayre

15/15

10/10

David Liddiment

13/15

Bill Matthews

12/13

David Liddiment (Chair)

Aideen McGinley
Suzanna Taverne
Committee membership changes: there were no changes during this period.

AttendanceCommittee membership changes: there were no changes during this period.

BBC Annual Report and Accounts 2013/14

39

Part One: Inside the Trust

Trust committees
We do much of our work through committees, which can makecertain decisions on behalf of the Trust as a whole. The membersof each committee and their attendance during 2013/14 areshown below. This is the last year the committees operated inthis form since the governance review recommended a newcommittee structure, with four committees plus a TrustManagement Group. Therefore from April 2014, the committees
have been: Services Committee, Value for Money Committee,
Editorial Standards Committee and the Complaints and Appeals
Board. The terms of reference for the new committees can befound on our website.

Inside the TrustInternational Services Committee
Chair: Lord Williams

Strategy and Approvals Committee
Chair: Diane CoyleThe International Services Committee (ISC) was responsible
for helping the Trust to develop the strategy for, and assess theperformance of the BBC World Service, BBC World News,
bbc.co.uk/news and BBC Monitoring. In April 2014, the ISC’s
functions were incorporated into those of the Services
Committee and the full Trust.

The Strategy and Approvals Committee (SAC) considered
proposals from the Executive Board, including for new services orchanges to existing services, except those proposed as part of aservice review (which were considered by the APC). The SAC
managed any Public Value Test or other consideration of a
proposal from the Executive and made recommendations to theTrust on possible outcomes. The SAC also oversaw the BBC’scommercial strategy and individual proposals, where these wereof strategic significance or of high value. In April 2014, the SAC’s
functions were incorporated into those of the Services
Committee and the full Trust.

Meeting attendance (1 April 2013 – 31 March 2014)
Trustee

Attendance

Lord Williams (Chair)

3/3

Diane Coyle

3/3

Richard Ayre

3/3

Aideen McGinley

3/3

Elan Closs Stephens

3/3

Committee membership changes: there were no changes during this period.

Remuneration and Appointments Committee
Chair: Lord Patten
The Remuneration and Appointments Committee (RAC)
managed the Trust’s responsibilities concerning Executive Board
remuneration and appointments. The RAC oversaw executive
remuneration strategy and made recommendations to the Truston the pay and benefits of the Director-General and the nonexecutive directors of the Executive Board. However, pay andbenefits of the executive directors are determined by the
Executive Board’s Remuneration Committee, which consists
entirely of non-executive directors. In April 2014, the RAC’s
functions were incorporated into those of the full Trust and theTrust Management Group.
Meeting attendance (1 April 2013 – 31 March 2014)
Trustee

Attendance

Lord Patten (Chair)

1/1

Diane Coyle

1/1

Anthony Fry

1/1

David Liddiment

0/1

Nick Prettejohn

0/0*Committee membership changes: Anthony Fry (until October 2013); Nick Prettejohn(from February 2014).
* There were no meetings during Nick Prettejohn’s membership period.

Meeting attendance (1 April 2013 – 31 March 2014)
Trustee

AttendanceDiane Coyle (Chair)

9/9

Anthony Fry

3/5

Bill Matthews

8/9

Suzanna Taverne

9/9

Lord Williams

7/9

Nick Prettejohn

2/2Committee membership changes: Anthony Fry (until October 2013); Nick Prettejohn(from February 2014).

Trust Finance Committee
Chair: Anthony Fry (until October 2013)
Acting Chair: Diane Coyle (from November 2013 until March 2014).
The Trust Finance Committee (TFC) helped the Trust to set thefinancial strategy for the BBC. It examined the BBC’s annual
budget and held the BBC to account for its financial performance.
It scrutinised significant financial proposals, and oversaw the
Executive’s internal control and risk management arrangements.
The TFC also managed the Trust’s programme of value-for-money
reviews, working with the Executive to ensure the BBC acts on
any recommendations made. In April 2014, the TFC’s functions
were incorporated into those of the Value for Money Committee
and the full Trust.
Meeting attendance (1 April 2013 – 31 March 2014)
Trustee

Attendance

Anthony Fry (Chair)

7/8

Diane Coyle (acting Chair from November 2013 until March 2014)

14/14

Richard Ayre

13/14

Nick Prettejohn

2/2Elan Closs Stephens

13/14

Suzanna Taverne

13/14

Committee membership changes: Anthony Fry (until October 2013); Nick Prettejohn(from February 2014).

40

BBC Annual Report and Accounts 2013/14

Trustees’ attendance at Audience Council meetings (1 April 2013 – 31 March 2014)
Trustee

Attendance

Alison Hastings

7/7

Bill Matthews

8/9

Aideen McGinley

9/9

Elan Closs Stephens

9/9Part One: Inside the Trust

Trustees’ remunerationFees
Our fees as Trustees are determined by the Secretary of State
for Culture, Media and Sport. In September 2010, Trustees took avoluntary 8.3% pay cut (equivalent to a month’s salary), in parallelwith the Director-General and other Executive Board members.
The reduced fees for Trustees will remain in effect until 31 August
2014 and are reflected in the table below. The one exception tothis is the Chairman, whose level of fees was reduced by 23%
when the post was advertised in 2010 and, therefore, a further
discount has not been applied. Trustees do not receive severance
pay or other compensation for loss of office.

Expenses
We are reimbursed for expenses incurred on BBC business,
which include travel, accommodation, work-related meals andhospitality. Trustees’ expenses are governed by the Trust’s Codeof Practice, which is published on our website. Every six months
we publish a full list of all expenses incurred by each Trustee, as
well as the services booked centrally for Trustees by the Trust
Unit. Some of our expenses and support services are classed as
taxable benefits by HMRC, and this figure is published in the
remuneration table; any tax arising on expenses incurred issettled by the BBC.
Chairman’s benefits
During his time as Chairman, Lord Patten was not eligible toreceive any benefits other than his fee, and he elected not tomake use of a BBC driver.

Trustees’ remuneration table
Fees1
£000

Taxablebenefits
£000

Total
2013/14£000

Total
2012/13£000

Appointment
term startdateAppointment
term end
date

Lord Patten

110

1

111

Diane Coyle*

71

–

71

111

1 May 1130 April 15

71

1 Nov 0630 April 15

Chairman and Vice Chairman

National Trustees
Alison Hastings

38

–

38

38

1 Nov 06

31 Oct 14

Rotha Johnston2

–

–

–

22

1 Nov 06

31 Oct 12

Bill Matthews3*

38

–

38

38

1 Jan 1131 Dec 14

Aideen McGinley4

38

–

38

16

1 Nov 12

31 Oct 16

Elan Closs Stephens

38

–

38

38

1 Nov 1031 Oct 14

Sonita Alleyne4

33

–

33

14

1 Nov 12

31 Oct 16

Richard Ayre

33

–

33

33

1 Aug 1031 Jul 14

Anthony Fry

30 Oct 13

Trustees

19

–

19

33

1 Nov 08

David Liddiment

33

–

33

33

1 Nov 06

31 Oct 14

Mehmuda Mian2

–

–

–

19

1 Nov 06

31 Oct 12

Nick Prettejohn6

8

–

8

–

1 Jan 1431 Dec 17

Suzanna Taverne

33

–

33

33

1 Jan 1231 Dec 15

Lord Williams*

33

–

33

33

1 Dec 1130 Nov 15

Total

525

1

526

532

5

Notes
1 Trustees took an 8.3% voluntary reduction in pay, in parallel with the Director-General and Executive Board, in September 2010. The Chairman’s fee was reduced by 23% from£142,800 to £110,000 at the start of Lord Patten’s term. Full details are available on our website.
2 Rotha Johnston and Mehmuda Mian ended their appointments part-way through the financial year 2012/13; accordingly their fees only relate to their time in office and do not cover
the full year.
3 Bill Matthews is the Chairman of the Board of the BBC Pension Trust Ltd, the corporate trustee of the BBC Pension Scheme. He is separately remunerated for this role. Further details
are available in the BBC Pension Scheme Annual Report and Accounts.
4 Aideen McGinley and Sonita Alleyne began their appointments part way through the financial year 2012/13; accordingly, their fees only relate to their time in office and do not cover
the full year.
5 Anthony Fry stepped down on 30 October 2013; accordingly his fees only relate to his time in office and do not cover the full year.
6 Nick Prettejohn began his appointment during the financial year 2013/14; accordingly his fees for 2013/14 only relate to his time in office and do not cover the full year.
* These Trustees all had taxable benefits less than £500 which have been rounded to nil. The total amount incurred by Trustees was £1,276.85.

BBC Annual Report and Accounts 2013/14

41

Inside the Trust

Trust finances
We aim to run our operations as efficiently as
possible. Our direct expenditure for 2013/14
was consistent with that for the previous year.
In line with the rest of the BBC, we are committed to making
savings. Specifically, we are committed to keeping our direct
expenditure below 0.31% of total licence fee income. This year,
direct expenditure represented 0.25% of total licence fee income(2012/13: 0.24%).
Director and senior management remuneration
Nicholas Kroll, Director, BBC Trust, is the Chief Officer of theTrust as specified by the Royal Charter. He is the principal adviser
to the Trust and Chief Executive of the Trust Unit. His base pay
for 2013/14 was £238,680 (2012/13: £238,680) and the aggregateof his emoluments to 31 March 2014 was £246,480 (£246,480
to 31 March 2013). Nicholas is a member of the BBC Pension
Scheme. Nicholas steps down from his role as Director, BBC
Trust on 20 June 2014.

Over 2013/14 the Trust Unit had six senior managers as wellas the Director, and our website provides an analysis of theirremuneration, split into £5,000 salary bands.
See page 41 for Trustees’ remuneration which is audited.
Reporting regulations
The Royal Charter requires the annual report and accounts tobe externally audited. We therefore asked KPMG LLP to confirm
that we have accurately presented the Trust’s expenditure,including Trustees’ remuneration, in Part One.
KPMG LLP’s report is included next to the statement ofTrust responsibilities on page 43. The BBC is exempt fromthe requirements of the Large and Medium-sized Companies
and Groups (Accounts and Reports) Regulations 2008 andthose of the Financial Conduct Authority but, where relevant,
we have prepared this report as if those requirements apply.
Trust people

Trust expenditure statementNote2013/14£000

2012/13£000

Trustee remuneration

1

583

589

Staff costs

2

4,203

4,496

Other operating costs

3

4,534

3,548

4, 5

9,320

8,633

6

2,666

3,276

Direct Trust expenditure
Ofcom regulatory fees
Total Ofcom fees payable by Trust

2,666

3,276

Total Trust expenditure

11,986

11,909Notes
1 The remuneration received by each Trustee is shown in the table on page 41. The figure in the table above includes social
security costs.
2 Staff costs include wages and salaries, social security costs and employer’s pension contributions.
3 Operating costs include direct expenditure on activities such as research, legal advice, other specialist advisory services and theTrust’s consultation activities and stakeholder events.
4 This represents direct external spend by the Trust. The Trust also made use of shared services, which included property
provision, finance, HR and information services that were provided by the BBC public services.
5 Of direct Trust expenditure, £952,153 relates to spend on Trust activities in the four nations (2012/13: £998,409).
6 Ofcom allocates its costs of television and radio regulation to the BBC and the other UK broadcasting channels. The Trust pays
the BBC’s share of that allocation.

42



Average for year

2013/142012/13

Trustees

11.8

12.0

Trust Unit staff (EFT)1

61.8

65.9

Note
1 Trust Unit staff are those employed directly by theTrust Unit. Of the 61.8 average equivalent full time(EFT) Trust Unit staff for 2013/14, 14 EFTs werebased outside London and supported the work theTrust undertakes in Wales, Scotland, Northern
Ireland and England (2012/13: 15). 12% come froma black, Asian or minority ethnic background(2012/13: 12.9%); 5.7% are disabled (2012/13: 3.9%);
and 65.9% are women (2012/13: 65.2%).

BBC Annual Report and Accounts 2013/14

Our responsibility, in accordance with the terms of ourengagement letter, is to form an independent opinion, on thebasis of the work performed, and to report our opinion to theTrust. Our examination was substantially less in scope than an
audit or a review.
We were not required to, nor have we, verified the completenessof the Trust expenditure statement.
Our report has been prepared for the Trust solely in connection
with its obligations under the Royal Charter. Our report was
designed to meet the agreed requirements of the Trust andparticular features of our engagement determined by theTrust’s needs at the time. Our report should not, therefore, beregarded as suitable to be used or relied on by any party wishingto acquire rights against us other than the Trust for any purpose
or in any context. Any party other than the Trust who obtains
access to our report (or any part of it) will do so at its own risk.
To the fullest extent permitted by law, KPMG LLP will accept no
responsibility or liability in respect of our report to any other party.
In our opinion, the expenditure as shown in the Trust expenditurestatement has been accurately extracted from the books andrecords of the Trust on the basis of the notes to the Trust
expenditure statement.

Jonathan Downer
For and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London E14 5GL
19 June 2014

Statement of responsibilities in respect of the annual reportand accounts
The BBC’s Royal Charter requires that an annual report andstatement of accounts is prepared in two parts, Part One by
the Trust and Part Two by the Executive Board. The Executive
Board’s responsibilities are detailed in the Governance sectionof Part Two of this annual report. In summary, the Executive
Board is responsible for preparing the financial statements andstatements of compliance with applicable corporate governancecodes and remuneration regulations, and delivering these to
the Trust within Part Two of this annual report. The Executive
Board has prepared the financial statements in accordance with
International Financial Reporting Standards as adopted by the
EU (EU IFRS), reflecting the fact that EU IFRS are widely usedin the UK, are being adopted in the public sector, and that theiruse would be permitted under the Companies Act 2006.
These financial statements are audited by external auditors.
In preparing its associated corporate governance disclosures, theExecutive Board has elected to comply with the UK Corporate
Governance Code, and, where applicable, the Financial Conduct
Authority Listing Rules which apply to a company quoted on an
EU regulated market.
In order to comply with those requirements, the annual reportmust include disclosures on the governance arrangements of theTrust as well as those of the Executive Board. These disclosures,
which are audited, are the responsibility of the Trust, and areincluded in Part One of this annual report.
The Charter also requires the Trust to prepare a statement of
its expenditure and include it within Part One of the annual report.
Statement of disclosure of information to auditors
The Trustees who held office at the date of approval of thisannual report and accounts confirm that, so far as each is aware,
there is no relevant audit information of which the BBC’s
auditors are unaware; and each Trustee has taken all the steps
that he or she ought to have taken as a Trustee to make himself
or herself aware of any relevant audit information and toestablish that the BBC’s auditors are aware of that information.
This statement was approved by the Trust on 19 June 2014.

Diane Coyle
Acting Chairman
19 June 2014

BBC Annual Report and Accounts 2013/14

43

Part One: Inside the Trust

Report of KPMG LLP to the BBC TrustIn accordance with the terms of our engagement letter dated
13 May 2013, we have examined the expenditure statementon page 42 (the ‘Trust expenditure statement’) for the year
ended 31 March 2014 which has been prepared, further to therequirements of the BBC Royal Charter dated October 2006,
by the Trustees and is their sole responsibility.