BBC accepts Trust's damning verdict on mismanagement
Processes and management controls were not adequate, says BBC
Processes and management controls were not adequate, says BBC
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The BBC has said that it accepts the damning accusations of ineffective management made by its own Trust after it was revealed that it overspent £36 million on the operations of its website.
The corporation issued a statement today in which it admits to having inadequate management controls over the many different elements that combined to make up the websites gathered under BBC.co.uk.
"[W]e accept the Trust's conclusions that our processes and management controls were not adequate for a pan-BBC service straddling multiple cost centres. This is regrettable and we recognise the need to address this," the statement said.
"We are developing plans which we believe will fully meet the concerns raised in the report, and provide a high level of reassurance to the BBC Trust that additional controls will be quickly implemented.
"We will do this while ensuring that BBC.co.uk continues to be a distinctive service delivering strong public value. We look forward to discussing our plans in detail with the BBC Trust in the coming weeks."
Those plans will include altering the structure of the organisation so that management has more direct control over budget spend, although it is unlikely that the development of further online products and extension of the iPlayer service will be dented as the Trust approved a new budget that exceeds the previous one by £40 million, effectively giving the Corporation even more money than it spent (budget plus overspend) in 2006/2007.