Certain comparative figures have been reclassified to conform to the current year’s presentation.
The Hong Kong Untverslty of Science and Technology 13
SCHEDULES TO THE FINANCIAL STATEMENTS
Asat30June1996 285,213 701 5,008 290,922
NET BOOK VALUE
Asat30June1996 -- 2,9;'2,193 18,686 128,577 3,119,456
Asat30June1995 -- 3,003,968 15,341 114,465 3,133,774
Notes: Quarters - University Phase IIB Centre
Asat30June1996 179,245 160,156
Dangerous Control of Micro- Geotechnical Goods Engineering fabrication Research
Stores Laboratories Centre Facility Total K$‘OOO
3. OTHER FIXED ASSETS
COST
Asat30June1995 652,150 5,085 252,398 909,633
Additions 185,586 490 34,161 220,237
Disposals/Written Off (4.2601 (205: (7661 (5,231)
Asat30June1996 833,476 5,370 285,793 1,124,639
DEPRECIATION Asat30June1995
Charged for the Year
DisposalsNVritten Off
Asat30June1996
NET BOOK VALUE
Asat30June 996 301,466 951 75,533 377,950
Asat30June 995 296,402 1,196 92,554 390,152
Computing, AudioNisual, Maintenance, Teaching and
sports Equipment
K$‘OOO H
Motor Vehicles
H K$‘OOO
Off ice and Quarters Furniture and
Equipment, and Electrical
Appliances K$‘OOO H
Total K$‘OOO H
355,748
178,464
c202) 532,010
3,889
210,260 746,689
The net book value of other fixed assets included an asset held under a finance lease which had a net book value of HK$264,000 as at 30 June 1995 and which was fully depreciated as at 30 June 1996. With the approval from the UGC and the relevant bank, an amount of HK$4.50 million was drawn in 1995/96 from the existing bank loan facility for the Phase /IA project to fund the costs of furmfure and apphances for the development.
The Hong Kong University of Science and Technology 15
4. INVESTMENTS
Listed Investments with Investment Managers at Cost, Including Accumulated Net Realised Income (Note) Unlisted Investments at Cost
Bonds and Cash/Bank Deposits with Investment Managers (Note) Joint Universities Computer Centre Ltd.
1 share of HK$500
Varsity Resources Corporation Ltd.
50,000 shares of HK$l each
Investment in Wholly-owned Subsidiaries at Cost HKUST Properties Ltd.
2 shares of HK$l each
30 Varsity Resources Corporation Ltd.
2,262
6. SUNDRY RECEIVABLES
Balance
Backpayments in relation to General Salary Revision
with effect from 1 April 1993 for the Year July 1994 to June 1995 Backpayments in relation to General Salary Revision
with effect from 1 April 1995 for the Period April to June 1995 Backpayments in relation to General Salary Revision
with effect from 1 April 1996 for the Period April to June 1996 Capital Grants Reimbursable from the UGC
Rates Reimbursable Staff Debtors
Other Sundry Receivables
1995/96
7. UGC HOLDING ACCOUNT
Balance as at 30 June 1995
Amount Reimbursed from the UGC During the Year
Over-provision of Outstanding Commitments, 1995196 Prior to the Triennium 1992-95
For the Triennium 1992-95
Reserved Supplementary Grants for General Salary Revision
with effect from 1 Apnl 1995 for the Period April to June 1995 - Excess with effect from 1 April 1995 for 1995/96 - Deficit
Net Amount to be Returned to the UGC (2,565)
Shortfall in Rates Reimbursement, 1995/96 3,572
Balance as at 30 June 1996 1,007
HK$'OOO
I
764The balance under the UGC Holding Account represented the excess of specified expendifure over UGC grants or recoveries and is to be reimbursed by the UGC
8. BANK AND CASH BALANCES
Balance as at 30June1995
HK$'OOO
Bank Deposits
Maturing within Three Months Maturing after Three Months 553,829
3,739 Other Bank and Cash Balances 557,568
Balance as at 30June1996
HK$'OOO
663,947 44.370
708,317
The Hong Kong University of Science and Technology 17
9. ACCOUNTS PAYABLE AND ACCRUALS
Backpayments in relation to General Salary Revision
79
19,180 with effect from 1 April 1995 for the Period April to June 1995 Backpayments in relation to General Salary Revision
0
Construction Expenditure Funded by Bank Loans Deferred Gratuities (Due Within One Year) Expenditure Funded by Capital Grants
Expenditure Funded by Indicated Equipment Grant Gratuities (Due Within One Year)
Income In Advance Library Books Orders
Obligations Under Finance Lease (Due Within One Year) Other Accounts Payable and Accruals
17,800
10. LONG-TERM LIABILITIES
Balance Balance
11. BUILDING FUND
Addhons/Deprecia!ron Written Off
Addltlons 33,373
Depreciation Wntten Off
and II Staff Modification Quarters -
Works Phase IIA Dangerous Control of
Goods Engineering
Hong Kong Government Total Expenditure at Cost
Less: Accumulated Depremfion
30June 1996
The Hong Kong University of Science and Technology 19
12. CAPITAL FUND
Balance as at 30 June 1995 Additrons/Depreciatron Written Off
Additions
Depreclatron Written Off Net Additions 67,912 Non-Government funds 909,633
(519,481) Less; Accumulated Depreciation 390.152 The cost of Non-Government funds included fhaf relating to other fixed assets conferred by the HKUST Educational Trust.
13. RESERVES AND PROVISIONS
Amount Amount
Balance Transferred Transferred
as at Amount from General/ Amount to General/ Air Conditioner Plant (Chiller) Air Conditioner Plant (Small Unit) Household Furniture/Appliances Lifts
Maintenance of Premises
Maintenance/Renovation of Staff Quarters
3,123
General and Academic Equipment
Motor Vehicles - Student Residential Halls
General
Furniture and Equipment Major Redecoration
13(a). RESERVES AND PROVISIONS - AMOUNT TRANSFERRED
Household FurnrtureiApplrances 1,400 0
LlftS 1,300 0
Maintenance of Premises 1,800 2,443
MarntenanceiRenovatron of Staff Quarters 1,200 0
Sub-total (I) 6,300 2,443
Non-building-related Reserves
Computer Equrpment 16,800 0
Generaland Academic Equipment 15,200 192
Motor Vehrcles 0 285
Sub-total (II) 32,000 477
Staff -related Reserves Leave Entitlement
Sub-total (Ill)
Student Residential Halls General
Provisions for Research Projects Infrastructure Grant
14. SPECIFIC FUNDS
Specific Income
Amount Recerved/Transferred 78,560 174,852 50,211 114,981 418,604 0 418,604
lnvestmenfflnterest Income 0 6,120 7,654 5,465
Endowment Recervednransferred 0 0 ~- 0 0
19,239
0
0 19,239
200
200
200 Donations
and Designated
Endowment Other Earmarked Capital Recurrent Operating
Grants Grants Accounts ____- Funds Schedule H K$‘OOO HK$‘OOO H K$‘OOO HK$‘OOO
(Sch. 74(a)) (Sch. 74(b)) (Sch. 14(c)) (Sch. 14(d))
78,560 180,972 57,865 120,446 437,843
Specific Expenditure
AmountExpended/Transferred 52,162 160,937 50,321 38,695 302,115 10 302,125
Surplus for the Year Before Transfers 26,398 20,035 7,544 81,751 135,728 190 135,918
Transferred to Reserves/Provisions 13(a) (21,430) 0 -0-o (26,117) 0 (26,117
Surplus for the Year After Transfers 4,968 20,035 7,544 77,064 109,611 190 109,801
Balances as at 30 June 1995 4,267 (30,041) 117,891 -~ 20,885
Balances as at 30 June 1996 9,235 (10,006) ____- 125,435 97,949
Sub- J-otA HK$‘OOO
113,002 28,435
222,613 28,625
Designated Endowment Capital Accounts
H K$‘OOO (Sch. 14(c))
IO&l HK$‘OOO
438,043
14(a). EARMARKED GRANTS
UGC Language Teaching Teaching Central Enhancement Development Development Allocation
Grant Grant Grant Vote
1995196 1994195 1995-98 1992-95
HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO
Centrifuge Chinese Evaluation
Joint Facility for Medicine of the
Institution Institute Geotechnical and Other Student Job Placement of Micro Characterization Natural Experience
Svstem Systems and Modelling Products Project Total K$‘OOO
The Hong Kong Untverslty of Science and Technology 23
14(a-II). EARMARKED GRANTS - RESEARCH GRANTS COUNCIL
Approved Commitments
Subventions Received Up to 30 June 1995 During the Year Up to 30 June 1996
Expenditurenransferred Up to 30 June 1995 During the Year
Transferred to Reserves/Provisions
Up to 30 June 1996
Balances as at 30 June 1996
Balances as at 30 June 1995
Notes.
Central Central Co-operative Direct Competitive Allocation Allocation Research
Allocation Bids Vote 1994/95 Vote 1995196 Centres Total HK$‘OOO H K$‘OOO HK$‘OOO H K$‘OOO H K$‘OOO HK$‘OOO
(Note I) (Note 2) (Note 3)
8,000 56,817 -- 1,900 1,600 2,100 70,417
0 0 1,900 0 2,100 4,000
8,000 56,817 -- 0 1,600 0 66,417
8,000 56,817 1,900 1,600 2.100 70,417
7,839 56,817 -- 260 0 703 65,619
7,839 56,817 1,900 0 2,088 68,644
161 0 -m 0 1,600 12 1,773
0 0 -m 260 0 715 975
1. The unallocated balance as at 30 June 1996 w/l be carried forward t/l/ the end of the triennium 199598.
2. The UGC has approved carrying forward the unspent balance to the next financial year 1996197.
3. The unspent balance has been approved by the UGC for carrying forward t//l 30 September 1996.
14(b). CAPITAL GRANTS 0 Basrc Teaching Equrpment - Phase II
863 Others (49,546) Specralist Equipment and Facrlrtres
~ -i33.615) Furniture and General Equipment (83 161) Sub-total (II) (Note 2)
700,000 303,247
448,720 363885
667,132
OTHER CAPITAL GRANTS (34) DangemusGoodsStores
Frttrng Out and Envrronmental Control (113) of Engineering Laboratones
1,487
13,765
0
10,000
__ L969) Mrcrofabncatron Centre 17,722
--A' 91 Sub-total (Ill) (Note 2) 32,974 J30 041) TOTAL (l)t(ll)t(lll) 1 554,927
Subventions/lnvestmenfflnterest Received Exrnditure Subventions Investment/
Received/ Interest
Receivable Received Balance
up to During During up to up to During up to as at
The Hong Kong University of Science and Technology 25
14(c). DONATIONS AND DESIGNATED ENDOWMENT FUNDS
Balance Amount Investment/ Amount as at Received/ Interest Expended/
30 June 1995 Transferred Income Transferred Schedule H K$‘OOO H K$‘OOO H K$‘OOO H K$‘OOO
General Donations 14(c-I) 21,221 1,600 0 7,000
Designated Funds 14(c-I) 93,874 48,288 4,950 42,180
Designated Endowment
Recurrent Accounts 14(c-I) 2,796 323 2,704 1,141
Sub-total (I)
Designated Endowment Capital Accounts
117,891 50,211 7,654 50,321
14(c-II) 28,435 200 0 10
Balance as at 30 June 1996
H K$‘OOO
15,821
104,932
4,682
125,435
28,625
Sub-total (II) 28,435 200 0 10 28,625
TOTAL (l)t(ll) 146,326 50,411 7,654 50,331 154,060
14(c-I). DONATIONS AND DESIGNATED ENDOWMENT RECURRENT ACCOUNTS Oroanised Research Units Advanced Materials Research lnstrtute
Joyce M Kuok Foundatron - Lasers and Photonrcs Laboratory
Shun Hrng Education and Chanty Fund, Inc. - Solid State Clusters Laboratory
Zheng Ge Ru Foundation - Thin Film Sctence Laboratory
Centre for Asran Frnancral Markets
Centre for Economrc Development Harnan Institute
Hongkong Telecom lnstrtute of Information Technology
Institute for Infrastructure Development
Srno Software Research Centre
Individual Research Projects Croucher Foundation Projects
Industrial Support Fund Projects
Integrated Crrcurt Package Design and Analysrs Programme
Others
Sir S.K. Tana Library Fund Scholarships and Bursarv Funds Student Loan Fur
Amount Investment/ Amount Balance
Received/ Interest Expended/ as at
Transferred Income Transferred
-~ -- 30 June 1996
The Hong Kong Unwerstty of Science and Technology 27
14(c-I). DONATIONS AND DESIGNATED ENDOWMENT RECURRENT ACCOUNTS (Cont’d)
Balance Amount Investment/ Amount Balance
as at Received/ Interest Expended/ as at
30 June 1995 Transferred Income Transferred 30 June 1996
HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO
DESIGNATED ENDOWMENT RECURRENT ACCOUNTS
Andrew Vee Say Shaw Memorial Scholarships Endowment Fund
Dow Hong Kong Scholarships Endowment Fund
Elizabeth (Libby) Fuhnman Gardner Endowment Fund
Hongkong and Kowloon Electrical Appliances
Merchants Association Scholarshtps Endowment Fund
Hongkong Telecom Institute of Information Technology Endowment Fund
HKUST Arts Endowment Fund
Lee Hysan Foundation Endowment Fund
Tsim Sha Tsui Kai Fong Welfare Association Bursaries Endowment Fund
WeI Lun Endowment Fund
Sub-total (Ill) TOTAL (l)t(ll)+(lll)
25 0 41 25 41
41 0 55 40 56
7 10 5 10 12
2 0 7 4 5
1,533 0 1,947 764 2,716
130 303 34 208 259
124 0 209 0 333
0 10 13 10 13
934 -- 0 393 80 -I 1247
2,796 -___ 323 2,704 1,141 4,682
117,891 -___ !jO,211 7,654 50,321 125,435
14(ell). DESIGNATED ENDOWMENT CAPITAL ACCOUNTS
Balance as at 30 June 1995
K$‘OOO H
Amount Received/
Transferred H K$‘OOO
Amount Expended/
Transferred K$‘OOO H
Balance as at 30 June 1996
K$‘OOO H
Andrew Vee Say Shaw Memortal Scholarships
Endowment Fund 600 0 0 600
Dow Hong Kong Scholarships Endowment Fund 800 0 0 800
Elizabeth (Libby) Fuhriman Gardner Endowment Fund 78 0 IO 68
Hongkong and Kowloon Electrical Appliances
Merchants Association Scholarships Endowment Fund 100 0 0 100
Hongkong Telecom Institute of Information Technology
Endowment Fund 18,500 0 0 18,500
HKUST Arts Endowment Fund 357 0 0 357
Lee Hysan Foundation Endowment Fund 3,000 0 0 3,000
Tsim Sha Tsui Kar Fong Welfare Association Bursaries
Endowment Fund 0 200 0 200
Wei Lun Endowment Fund 5,000 0 0 5,000
TOTAL 28,435 = 200 10 28,625
The Hong Kong Unlverslty of Science and Technology 29
14(d). OTHER OPERATING FUNDS
University Development Fund (Note) 4
130
15. UGC TRIENNIUM EQUALIZATION ACCOUNT
HK$'OOO
Balance as at 30 June 1995 0
Recurrent Account, 1995196 80,815
Balance as at 30 June 1996 80,815
Under the block grant arrangement the difference between funds released by the UGC plus other general income and the actual amount spentltransferred by the Unwers/ty IS dealt w//h through the UGC Tr~ennium Equalization Account. The balance as at 30 June 1996, representmg the excess of the General home over actual spendingl’transfers, IS to be carried forward for use in the remamhg years of the tnennm. Surplus on the block grant, /f any, af the end of the tnennium w/l/ normally be transferred to the UGC Holding Account and refunded to the UGC.
The Hong Kong Umverslty of Science and Technology 31
16. GENERAL INCOME AND EXPENDITURE
General Income
UGC Recurrent Grant/Hong Kong Government Subventions
Fee Income
Investment and Bank Interest Income
16(a) 1,254,474
16(b) 189,032
46,180
Rental Recoveries from Staff 31,923
Mrscellaneous Income 4.568
UGC
General Expenditure 16(c)
Administration 111,578
Academic 806,648
Maintenance of Premises 210,357
General Educatron 20,246
Student Facrlities and Amenities
Miscellaneous
30,059
209,305
Surplus/(Deficit) for the Year Before Transfers Transferred from the UGC Holding Account
137,984
Transferred to ReservesiProvrsions
Transferred to Other Operattng Funds
7 0
13(a) (39,748)
14(d) (17,421)
Surplus Transferred to the UGC Triennium Equalization Account 15 80,815 1,388,193
&served Sunulementarv Grants General
16(a). UGC RECURRENT GRANT/HONG KONG GOVERNMENT SUBVENTIONS
1 July1994 1 July1995
to to
Supplementary Grant for Additional Research Postgraduate
Indicated Equipment Grant
Indicated Language Enhancement Grant
Reserved Supplementary Grants
General Salary Revisions with effect from 1 April 1992 for 1992/93
The Hong Kong Untverslty of Science and Technology 33
16(c). GENERAL EXPENDITURE
Salaries and Gratuities/Superannuation-Senior Staff Salaries and Gratuities/Superannuation-Support Staff Audit and Legal Fees
Financial Charges General Advertisements General Office Expenses Official Pu blrcations Postage
Vehicles Running Expenses Sub-total (I)
Salaries and Gratuities/Superannuation-Senior Staff Salaries and Gratuities/Superannuation-Support Staff Book Binding
General Office Expenses Library Books and Periodicals Library Electronic Media Library Media Resources Library On-line Search Others Academic Support Centres
Centralised and Departmental Laboratories Centre for Advanced Engineering Materials Computer Aided Design and Manufacturing Centre Deans’ Offices
Educational Technology Centre Industrial Training Centre Language Centre
Materials Characterisation and Preparation Centre Mechanical Workshop
Microelectronics Fabrication Centre VP-AA Off ice
Office of Contract and Grant Adminrstration Research Centre
Technology Transfer Centre VP-RD Offrce
ACADEMIC DEPARTMENTS AND ACADEMIC SUPPORT CENTRES Academic Departments
Salaries and Gratuities/Superannuation-Senior Staff Salaries and GratuitiesSuperannuatIon-Support Staff Equipment and Maintenance
General Off ice/Laboratory Expenses Postgraduate Studentships
124,316
16(c). GENERAL EXPENDITURE (Cont’d)
MAINTENANCE OF PREMISES AND GROUNDS Salaries and Gratuities/Superannuation-Senior Staff Salaries and Gratuities/Superannuation-Support Staff Building-related Insurance Premiums
Cleaning Expenses Furniture and Equipment General Office Expenses Minor Works
Rates
Repairs and Maintenance Security Expenses
Advisory Committees Meetings/Accreditation Artist-In-Residence Program
Consultancies
Duty Visits and Staff Development Examinations
Subscriptions to International Education Associations Workshops and Seminars
Sub-total (IV)
STUDENT FACILITIES AND AMENITIES Grants to Student Bodies
Physical Education Facilities Student Affairs Office Student Health Home Purchase Scheme Housing Benefits
Medical and Dental Benefits
Non-building-related Insurance Premiums Official Entertainment
Outreach Programmes to Schools Passages
1,428,879 TOTAL (l)t(ll)t(lll)t(lV)t(V)t(VI) 1,508,477
The Hong Kong Unwersltyof Science and Technology 35
THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY STAFF SUPERANNUATION SCHEME
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 1996
TRUSTEES’ REPORT
Introduction
The Hong Kong University of Science and Technology Staff Superannuation Scheme (“the Scheme”) was established on 1 July 1992. The main purpose of the Scheme is to provide a lump-sum cash retirement benefit for staff members of The Hong Kong University of Science and Technology (“HKUST”) who are eligible to participate in the Scheme. The Scheme was registered with the Office of the Registrar of Occupational Retirement Schemes on 8 March 1995.
The Trustees
The Scheme has been constituted under a Deed of Trust and individual Trustees are appointed by the HKUST Council.
During this financial year which ended on 30 June 1996, Trustees who together formed a Board of Trustees were:
Chairman: Mr. LAU Wah-sum Members: Dr. CHENG Hon-kwan
Mr. Michael HUDSON (from 1 January 1996) Dr. LEE Hon-chiu
Mr. PANG Tak-ming (until 31 March 1996) Mr. TAN Chuen-yan Paul
Dr. WONG Sze-chung Raymond (until 31 December 1995) Prof. WOO Chia-Wei
While Messrs. Lau Wah-sum, Cheng Hon-kwan, Lee Hon-chiu, Tan Chuen-yan Paul and Prof. Woo Chia-Wei were appointed directly by the HKUST Council, the appointments of Mr. Michael Hudson, Mr. Pang Tak-ming and Dr. Wong Sze- chung Raymond were made by the HKUST Council based on the results of elections which were open to all eligible Scheme Members.
Membership of the Scheme
The total number of Scheme Members as at the end of the financial year stood at 1,388, representing a net increase of 116 Members when compared with the membership at 30 June 1995. Of the total number of Scheme Members, 111 and 1,277 were otherwise Terms A and Terms B staff members of HKUST respectively.
Assets of the Scheme
As expected, there was a significant growth in the assets of the Scheme during the year. As at the end of the financial year, the total net assets of the Scheme were $185.13 million. This represented an increase of $82.49 million when compared with the amount of net assets at the end of the last financial year. The increase was attributable largely to net contributions amounting to $64.38 million during the year. Of the net assets of $185.13 million, $166.24 million belonged to the HKUST Balance and Members’ Balance. The Scheme had a General Reserve of $18.89 million as at 30 June 1996.
Professional Advisers
The Board engaged professional advisers to help in the management of the Scheme. The professional advisers appointed by Trustees for the previous year continued to provide various services to the Scheme during the year. The investment managers were BZW Investment Management Hong Kong Limited (“BZW”) and INVESCO Asia Limited (“INVESCO”, previously known as AEtna Investment Management (Hong Kong) Limited). The Scheme Administrator was Bermuda Trust (Far East) Limited. Towers Perrin, who was appointed by the HKUST Council, continued to serve as the Actuary to the Scheme. The auditors of the Scheme were Messrs. Deloitte Touche Tohmatsu.
The Hong Kong Unlverslty of Science and Technology Staff Superannuation Scheme 37
Investment Performance
For the year ended 30 June 1996, BZW achieved a return of 13.0% (1994195: 8.8%) and INVESCO achieved a return of 19.2% (1994/95: 1.4%). The median return as measured by the Wyatt Measurement of Investment Performance Survey for Hong Kong Retirement Schemes was 15.0% for the same year while the median return as measured by the Towers Perrin Investment Monitoring Service was 15.4%. The cumulative performance achieved over a three-year period was 41.8% for BZW and 51.4% for INVESCO. The Wyatt median over the sarne period was 43.2%. These were satisfactory returns.
Actuarial Valuation
An actuarial valuation as at 30 June 1996 was performed by the Actuary on the funding position of the Scheme. The funding position was assessed by two ratios: the solvency ratio and the adequacy ratio. The solvency ratio compares the total net assets of the Scheme to the aggregate vested benefits payable if all Members were to leave the Scheme at the valuation date. The adequacy ratio, on the other hand, compares the net assets of the Scheme to the aggregate present value of future benefits which all Members would reasonably be entitled to receive from the Scheme. According to the actuarial valuation performed on 30 June 1996, the solvency ratio and the adequacy ratio of the Scheme were 179% and 103% respectively. These satisfied the legal requirement regarding the financial health of the Scheme.
Outlook for 1996/97
It is envisaged that both the assets of the Scheme and the number of Scheme Members will continue to grow substantially in 1996/97 when more Terms A staff members who are gradually completing their two or three-year employment contracts join the Scheme.
The Board would like to take this opportunity to thank all parties involved in the management of the Scheme for their advice and contributions during the year.
Board of Trustees, 12 November 1996
AUDITORS’ REPORT
To: The Trustees of
The Hong Kong University of Science and Technology Staff Superannuation Scheme
(Registered under the Occupational Retirement Schemes Ordinance)
We have audited the financial statements on pages 41 to 44 which have been prepared in accordance with accounting policies set out on page 43.
Respective Responsibilities of the Trustees and Auditors
The Trustees are responsible for the preparation of financial statements which give a true and fair view. In preparing financial statements which give a true and fair view it is fundamental that appropriate accounting policies are selected and applied consistently.
It is our responsibility to form an independent opinion, based on our audit, on those financial statements and on certain other matters (“Specific Matters”) relating to the Scheme as specified in Section 20(3) of the Ordinance, and to report our opinion to you.
Basis of Opinion
We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Society of Accountants. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and to the compliance of the Scheme with the Specific Matters. It also includes an assessment of the significant estimates and judgments made by the Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Scheme’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement and as to whether the Scheme complied with the Specific Matters. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Opinion In our opinion:
(9
Proper accounts and records have been kept during the year ended 30 June 1996 as regards the assets, liabilities and financial transactions of the Scheme.(ii) The financial statements show a true and fair view of the disposition of the Scheme’s assets and liabilities at 30 June 1996 and of its financial transactions during the year then ended.
(iii) The relevant undertaking in respect of the actuarial certificate dated 19 September 1995 has been complied with during the year ended 30 June 1996.
The Hong Kong Unlverslty of Science and Technology Staff Superannuation Scheme 39