By Tim Ferguson, 30 May 2008 12:00
NEWS
The BBC has been warned to improve its financial management after the corporation exceeded its website budget by almost 50 per cent last year.
The actual spend on the bbc.co.uk during 2007/8 was £110m - 48 per cent higher than the website's service licence baseline budget.
Check out silicon.com's latest Cheat Sheets
♦ Google Android
♦ Video: ID cards
♦ BBC iPlayer
♦ Galileo
♦ CRM
♦ Biometrics
The figures emerged following a review of bbc.co.uk by the Beeb's governing body, the BBC Trust, as part of terms in the new Charter and Agreement.
According to the Trust the majority of overspend was due to a misallocation of £24.9m in overheads and costs to other BBC budgets.
The Trust approved a six-year creative funding strategy in October last year which saw increased investment in bbc.co.uk.
The BBC wanted to spend £39m of this in 2008/9 but the Trust will not approve the investment until it's satisfied the BBC has tightened its management controls to "ensure better financial accountability and editorial and managerial oversight".
In a statement, the BBC said it accepts the Trust's conclusions that its processes and management controls are not adequate and recognises this needs to be addressed.
The BBC said it is developing plans to meet these concerns and will discuss them with the BBC Trust in the coming weeks.
Despite the issues, the BBC Trust said bbc.co.uk is an "excellent service that is highly valued by users and makes a strong contribution to delivering the BBC's public purposes".
Comments
There are 8 comments. Join the discussion
1. Julian Nicholls
Frankly, I'd rather that our licence fee was spent on the excellent bbc.co.uk website than the execrable "I'd Do Anything".
2. Chris Goodman
The BBC's online service is not, with small exception, a justified charge against the Broadcast Licence Fee.
The BBC has far exceeded it's remit and seems to be just growing and spending.
It's internet services can really only be justified where used as a direct complement to the TV/radio services.
3. anonymous
I second that.
The BBC's website and new developments like iPlayer are fantastic and with the huge public uptake of them are what the licence paying public want.
Double the IT Budget for BBC web spend !!!
4. Alan McKenzie
I used to work at BBC Worldwide (BBC's commercial arm) and I always said to anyone who would listen that the BBCi web site should have been under BBC Worldwide's control and be a commercial proposition, rather than being paid for by the license-payer. The license fee is for BROADCASTING, people! Too many non-license-payers get the benefit of the BBC website.
It wasn't a popular view, as you might imagine.
5. anonymous
The BBC's website is great, and hugely popular. Currently bbc.co.uk is 46th most popular website globally.
The lack of money-grubbing affiliate links and banal advertising is wholly refreshing.
BBC's remit/public service is being fulfilled pretty well. Get off their back.
6. Karen Challinor
Alan McKenzie, excellent point, it's a popular view with me and I suspect a number of other license payers would agree
7. Drew Stephenson
Actually, pretty much only use my tv to watch the occasional rugby international and a bit top gear if i'm in. I'd far rather the budget went on the website and radio, both of which i use on a daily basis.
Which, i guess, typifies the considerations the BBC has to make with every funding decision it makes. I don't envy them that job.
8. Mick Fandango
Worth every penny! Its my Homepage and apart from Google its the site I access most. Much better than TV!