The BBC Media centre reports:-

Following recent PAC hearings and reports into severance pay that have raised questions about the BBC’s current governance systems, the BBC today announced that it will be re-examining the relationship between the two parts of the BBC. The aim is to simplify the relationship and provide better and clearer oversight of the way the licence fee is spent.

The project, which will be carried out using existing resources within the BBC will involve a comprehensive review of the BBC’s internal governance systems and structures, and the culture that surrounds them.

The aim is to:

Provide clarity about responsibilities between each body
Ensure that the Trust and Executive have agreed a way of working together that prevents possible misunderstanding or confusion on key issues
Avoid duplication and overlap, including in areas such as remuneration and audits
Ensure effective decision making, accountability and focus on the licence fee payer
This review will build on the work already being done by the new Executive leadership team to simplify the organisation.

The Review will work within the terms of the current Royal Charter. It will consider whether, in some places, the BBC can adopt a more common sense interpretation of what the Charter means.

In a letter sent to the Secretary of State for Culture, Media & Sport, Maria Miller, the BBC Chairman and Director-General said: “We are confident that there is space within the current Charter to make an improvement in the way that the BBC is run and managed, and to ensure a primary focus on what audiences want and need and how we spend their money.”

BBC Press Office