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Foreword to Section D

Report of the Board

The Board presents its Report and the audited financial statements for the year ended 31 March 2008.

Statement of Accounts

This Statement of Accounts has been prepared in accordance with Schedule 1 of the Office of Communications Act 2002 and as directed by the Secretaries of State for Business, Enterprise and Regulatory Reform and for Culture, Media and Sport. The Accounts cover the period from 1 April 2007 to 31 March 2008.

Principal activities

Ofcom is a statutory corporation without shareholders, established under the Office of Communications Act 2002.

Ofcom is empowered, under the Communications Act 2003, to regulate and license television, radio, the use of the radio spectrum and telecommunications in accordance with the duties imposed upon it under the Act.

Operating and Financial Review

The Chairman’s Message on pages 4 and 5, the Chief Executive’s Report on pages 6 to 9 and the Operating and Financial Review on pages 28 to 47 form part of this Report and provide information on the activities of Ofcom during the year. The financial statements of Ofcom are set out on pages 72 to 77.

External auditors

The Comptroller and Auditor General, whose staff is the National Audit Office (NAO), is appointed as Ofcom’s external auditor under the Office of Communications Act 2002. The cost of the statutory audit for 2007/08 was £85,000 .

In so far as the Accountable Officer is aware, there is no relevant audit information of which Ofcom’s auditors are unaware, and the Accountable Officer has taken all the steps that he ought to have taken to make himself aware of any relevant audit information and to establish that Ofcom’s auditors are aware of that information.

The Board

The Board has full responsibility for deciding and operating Ofcom’s affairs. The details of the Board Members are set out on pages 52 and 53. Details of Members’ remuneration are set out on pages 65 to 70.

Members’ interests

Ofcom embraces full disclosure of Members’ interests. The details of these can be found online at www.ofcom.org.uk.

Post balance sheet events

There were no reportable post balance sheet events between the balance sheet date and 6 June 2008, the date when the Accountable Officer despatched the accounts to the Department for Business, Enterprise and Regulatory Reform. The financial statements do not reflect events after this date .

Ofcom mission and values

Ofcom’s commitment to its mission and values is shared by Board Members and Ofcom colleagues. The purpose of the shared mission and values is to ensure each Board Member and colleague undertakes Ofcom’s work by reference to a clear set of core values. Colleagues across the organisation were instrumental in developing the six values that reflect Ofcom’s desire to work in an open, effective and people-driven way. In working in this way Ofcom strives to be dynamic, responsive and commercially aware; Ofcom values incisive thinking, rigorous evidence-based analysis and engagement with stakeholders. Ofcom’s values are:

Communicating openly and honestly;
Listening with an open mind;
Making a difference;
Empowering and prioritising;
Investing in and supporting our colleagues; and
Genuine collaboration.

Colleague involvement and consultation

The quality, commitment and effectiveness of Ofcom colleagues are crucial to its success. Colleague involvement is actively encouraged as part of all Ofcom’s day-to-day processes.

Ofcom specifically informs and consults its colleagues through:

the Ofcom Colleague Forum, an information and consultation forum which is made up of representatives of colleagues from across Ofcom and which meets regularly with senior management at Joint Consultative Group meetings (which includes two members from the Partner Union);
the Ofcom intranet, which is available to all colleagues in all of Ofcom’s offices;
presentations hosted by senior managers during which new strategic initiatives are explained to colleagues and updates are provided regarding continuing projects;
regular inter-group meetings both to listen to colleagues and to disseminate information;
regular messages from the Chief Executive; and
an annual all-colleague event to review progress and the year ahead.

Additionally Ofcom has developed a relationship with the Partner Union – a body made up of representatives from BECTU and Prospect.

Employment policies, performance development and public sector duties

Ofcom is an equal opportunities employer and recruits colleagues regardless of age, gender, cultural and ethnic background, disability, religion or belief and sexual orientation.

Ofcom is committed to building an organisation where all colleagues are treated fairly, with dignity and respect and has developed a range of policies which are consistent with the requirements of employment law, and in particular with legislation aimed at eliminating discrimination including the Race Relations (Amendment) Act 2001, the Disability Discrimination Act 1995 and, in relation to activities in Northern Ireland, section 75 of the Northern Ireland Act 1998 and the 1995 Disability Discrimination Order.

Ofcom has an internal whistle-blowing policy setting out the procedure colleagues should follow if they wish to raise a concern about malpractice within the organisation.

Ofcom has updated its assessment and reward processesto ensure colleagues agree clear objectives for both performance and their ongoing development. The number of development activities delivered across the organisation during the period exceeded 500.

Britain’s Top Employers

Of 79 organisations identified as 'top employers' in a UK survey, Ofcom made it into the top 30. This award demonstrates and recognises the progress we have made as an organisation in being able to attract and retain the best people.

Diversity and Corporate Social Responsibility

A Head of Diversity and Corporate Social Responsibility was appointed in January 2008. This role formally brings together the Diversity and community based CSR agendas. Ofcom has introduced a Diversity Action Plan which sets out how Ofcom plans to promote diversity across the organisation. Ofcom also undertook Diversity Champions, Race for Opportunity, Opportunity Now and Disability Standard benchmarking to measure its performance on sexual orientation, race, gender and disability equality in the workplace. Ofcom was the third most improved organisation in the Stonewall 2008 Workforce Equality survey, moving up from 165 th to 51 st position.

Ofcom has introduced a Colleague Volunteer Scheme to enable colleagues to volunteer in a range of activities in the local community; it has been very successful and has attracted considerable interest from colleagues.

Through the Reading Partners Scheme, Ofcom works with Charlotte Sharman Primary School to help a group of ten children with their reading. The Language Mentoring Scheme teams Ofcom with Bacon City Technical College to help pre-GCSE pupils with their conversational French. This scheme has been extended to include German language mentoring support as well.

In response to the national shortage of young people entering engineering (particularly young women), St Saviour's & St Olave's School established a Girls' Science and Engineering Club, which is being supported by a team of Ofcom engineers.

Environmental issues

Ofcom seeks to adopt sustainable practices throughout its operational work. In the light of growing concern over environmental issues Ofcom decided to develop a comprehensive approach to ensure that its activities were environment-friendly. As part of this approach Ofcom performed an initial carbon audit of its operations in late 2007, identifying a number of areas where it could make a positive difference. For example, power consumption of data services. Ofcom has already started work in the areas identified and during 2008/9 will undertake further analysis and develop a programme of enhancements to ensure that its operations adhere to best environmental practice.

Some of the steps already taken in 2007/8 to reduce emissions of the greenhouse gas carbon dioxide were:

initiatives introduced to reduce printing and encourage recycling of waste;
improvements in cycling facilities at Riverside House to encourage greener commuting;
applying solar film to windows to reflect heat, reducing energy to cool space;
running an information campaign to ensure colleagues switched off their PCs overnight; and
purchasing electricity on green tariffs.

Alongside this Annual Report, Ofcom is publishing, in a separate document, the results of the commissioned carbon audit and Ofcom’s environmental commitments.

The Chief Operating Officer has responsibility for health and safety within Ofcom. The Head of Financial Accounting is Chair of the Health and Safety Committee which meets quarterly and reports to the Operations Board. During the reporting period no injuries were reported to the Health and Safety Executive. Colleagues have completed bespoke e-Learning and line managers are increasingly involved in health and safety, which is particularly important in Ofcom’s higher risk work.

Data protection

Ofcom is a Data Controller under the Data Protection Act 1998 (‘the Act’) and is committed to processing all personal data securely in a manner which meets the requirements of the Act, including the data protection principles. Ofcom also has a data protection training programme to ensure all colleagues understand their responsibilities to comply with the Act and information handling practices.

Freedom of Information

Under the Freedom of Information Act 2000, which established a general right of access to all types of recorded information held by public authorities, Ofcom has continued via its publication scheme to make a wide range of information readily accessible on its website. During the period under review, Ofcom received 848 requests for information and, in keeping with the Act’s purpose to foster a culture of openness’ Ofcom provided all or part of the information requested in 77 per cent of cases.

Going concern

Based on normal business planning and control procedures, the Board has a reasonable expectation that Ofcom has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Board continues to adopt the going concern basis for preparing the financial statements.

David Currie
Chairman

Ed Richards
Chief Executive

17 June 2008

Charitable donations

During the financial year 2007/8, Ofcom raised £4,375 in charitable donations.

Of this amount, £2,374 was raised via donated gifts for St. Mungo’s, an organisation for the homeless based locally in Southwark.

The Annual Art Reception raised a further £2,001, which was donated to the children’s charity, Kids Company. Kids Company provides practical and emotional support for children and young people who experience significant psychosocial difficulties because their parent is unable to function as a caring adult.

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