The BBC has released its annual report, which examines the corporation's programming and finances for the last year.

The year 2001- 2002 has seen mixed fortunes for the corporation, although BBC television has been boosted by becoming the most-watched channel in the UK.

BBC Two's audience share also rose - to a three-year high - and the channel stormed the Bafta awards in April, carrying off eight awards.

Radio 2 continued to be the most listened-to station in the UK, with Terry Wogan, Ken Bruce and Steve Wright each adding more than a million listeners in a year.

Winner proved an unwelcome guest in the schedules

And Radio 4 also increased its audience - 800,000 more per week - but Radio Three has not managed to gain more listeners despite a largely positive critical reception for scheduling changes.

News and sports outlet Radio 5 Live had a good year, with audiences rising by more than three-quarters of a million - although this may have been attributable in part to the US attacks on 11 September.

The US attacks also led to more demand for BBC News 24, although the station did not receive any formal accolades for this - Sky News won a Bafta for its 11 September coverage.

Disappointments for the BBC include its governors chastising the corporation for some of the TV output since April 2001.

Babyfather won Diane Parish an RTS award

The annual report describes the BBC Two-themed evening The Joy of Text and the entertainment show Celebrity Sleepovers as "disappointing".

It won a "Nafta award" for the worst factual entertainment programme of the year.

Celebrity Sleepovers, in which Frank Bruno, Michael Winner and Vanessa Feltz were among the celebrities who were filmed spending a night with a member of the public, was also criticised by Patricia Hodgson of the Independent Television Commission.

BBC Two show I Love... which took a theme or year and asked celebrities to recall their best memories of it also slated for appearing to run out of themes to be nostalgic about.

BBC One's Live & Kicking replacement The Saturday Show also failed to dent ITV's dominance of Saturday morning children's TV.

The Office: From cult following to mainstream hit

And Radio 1 was hit by a row over Sara Cox's Breakfast Show, on which Ali G swore and repeatedly used sexual innuendo in a live interview.

BBC One's art history series Rolf On Art was heavily criticised by the press as an example of dumbing-down - but won 6.8m viewers, a huge audience for the subject matter.

But there was a sizeable bag of critical and ratings successes, too.

Ricky Gervais built on his cult status with The Office on BBC Two - which won seven awards, including two Baftas.

Radio 1's Sara Cox came unstuck with Ali G

And BBC One's comedy chat show The Kumars at No 42 found a new twist on the spoof chat show, with celebrities being questioned by Sanjeev Bhaskar in a living-room filled with his fictitious family.

Veteran comedy warhorse Only Fools and Horses returned on Christmas Day 2001 to pull on 21.4 million viewers, topping the festive season's ratings.

And the BBC's factual programming was also a critical success.

David Attenborough's The Life Of Mammals, the second series of Simon Schama's A History of Britain on BBC Two and the Bafta-winning Blue Planet, about the earth's oceans.

Digital bid

Drama produced its share of critical and ratings successes, with Clocking Off, and The Way We Live Now - with David Suchet's performance - widely praised on BBC One.

And BBC Two contributed a documentary-style drama Smallpox 2002: Silent Weapon and Babyfather, which explored at racial stereotypes, and won Diane Parish the RTS Best Actress award.

The BBC also restructured its digital services, replacing BBC Knowledge with BBC Four, which broadcast The Falklands Play - shelved in the 1980s for reasons of political sensitivity.

And it recently won its bid for the collapsed ITV Digital's vacated digital terrestrial television licences, giving viewers will get a host of free channels if they are prepared to buy a set-top box.