CONTENTS
3. PRINCIPLES AND RULES ON USAGE
Fundamental Principles
3.1 The OEBG provides schools with greater flexibility in the use of resources. In this regard, schools are allowed to set their ow n spending priorities and allocations, having regard to the objectives and policies laid down by their School Management Committees (SMC).
3.2 In exercising the flexibility, schools should always bear in m ind that the interest of students com es first. They should also en sure that the expenditure incurred is reasonable and necessary for educational pur poses. Thus, for instance, schools should keep expenditure on purchase of flower-b askets f or ce remonial a ctivities to a minimum. In addition, schools should ensure that any recurrent consequences arising from exercising funding flexibility will be absorbed with in the OEBG or m et by schools' own funds.
Rules on Usage
3.3 In incurring expenditure, schools should observe the ambit of the c onstituent grants of OEBG, as set out in the Code of Aid and in circulars issued by EDB from time to time.
In addition, schools should ensure that the total spending should be kept within the amount of OEBG, i.e. no topping up of OEBG will be given.
3.4 Government subvention policy requires that the terms and conditions of service of staff in the subvented sector should not be supe rior to those provided by Governm ent to comparable grades in the Civil Service. Sc hools should continue to follow this policy notwithstanding the flexibility available under OEBG.
3.5 Subsidy will continue to be provided for Provident Fund (PF) contributions in respect of clerical and janitor staff e mployed within the provis ion alloca ted by EDB for Administration Grant/Re vised Adm inistration Grant. For staff e mployed with funds under other constituent grants of OEBG, schools should meet the PF contributions with surplus funds under OEBG or their own funds. EDB
3.6 On the basis of the principles and rules stated above, the following items of expenditure are also not allowed to be charged to OEBG –
(a) fringe benefits for staff, including housing benefits, provision of food or food allowance, travelling allowance, medical expenses etc.;
(b) penalty charges, fines and interest payments;
(c) loans to staff or third parties;
(d) subscription to staff associations and professional bodies;
(e) write-offs e.g. overpayments;
(f) administrative and m anagement expe nses of the headquarters or other service units of the sponsoring organisation.
The above list is not exh austive. EDB will revise the list an d inform schools of the changes as and when appropriate. In ca se of doubt, schools should consult the Regional Education Offices of EDB.
4. FINANCIAL AND ACCOUNTING ARRANGEMENTS
Expenditure Budget
4.1 To enable schools to know in advance th e amount of OEBG funds available for the school year, and to facilitate the schools in setting their own spending allocations, EDB will issue an Allocation Advice (pro forma at Appendix A) to schools before the school year commences.
4.2 On the basis of the Allocation Advice, sc hools should devise its own budget (proforma at Appendix B) on how to use the OEBG funds. Schools should seek the approval of their SMCs of the budget and m ake the approved budget transpar ent to all parties concerned. Schools should also subm it a copy of the approved budget to the Regional Education Offices.
Expenditure Control
4.3 To ensure that the OEBG funds are spent properly and co st-effectively, schools should obtain directives from their SMCs regarding the scope, criteria and rules for allocatin g funds. Schools should ensu re that the approved budget is followed in incurring expenditure. As there m ay be practical difficulties for schools to rev ert promptly to SMCs for m aking variations to the a pproved budget arising from urgent or unforeseeable circumstances, schools may consider seeking delegation of the authority from SMCs for making changes to the budget up to a certain financial limit.
4.4 Schools should ensure that the total expenditu re is kept within the am ount of OEBG.
Any deficit will hav e to be m et by the schoo ls' own funds. Also, if expenditure is found i mproperly incurred or charged to OEBG funds, EDB shall ask the school concerned to explain the anom alies. In the ab sence of acceptable ex planations, the school should make good such expenditure by charging it to its own funds.
Release of OEBG
4.5 With effect from SY 2000-01, OEBG funds will be released to schools according to the following schedule –
(a) Adm inistration Grant will be paid monthly.
(b) School and Class Grant will be paid in two tranches in August and April.
(c) Subject and Curriculum Grants and other grants will be released in one lump sum in August. Adjustm ent may be m ade during the year to account for changes in
class number/size, subjects taught etc.
(d) School-based Support Schem e for Ne wly Arrived Child ren will be paid on submission of claims by schools.
Accounting and Reporting Requirements
4.6 Schools should continue to maintain separate ledger accounts for each constituent grant of OEBG. In addition, schools should keep a General Dom ain Control Account and a Special Dom ain Control Account for the purpose of recording and m onitoring the surpluses. Schools should also report pe riodically to their SMCs the expenditure position of OEBG. A proforma expenditure report is at Appendix C.
4.7 Schools should submit audited annual accounts and such other financial statem ents as required by EDB as at present. In respect of OEBG, schools should subm it the financial statem ent to E DB in acco rdance with the form at as shown in Appendix D.
The auditors should certify that the OEBG funds have been used in accordance with the ambit and rules as promulgated in the Code of Aid and in circulars issued by EDB from time to time.
Surplus retention
4.8 Accumulated surpluses for the individual gr ants up to SY 1999/2000 will be subject to the clawback arrangements prevailing befo re the im plementation of OEBG. Any surplus balances remaining after the clawback will be aggr egated and carr ied forward as the opening balance for SY 2000/01 of the General Dom ain and Special Domain respectively.
4.9 After OEBG im plementation, schools should ascertain the surplus balances of grants under the General Domain and Special Dom ain respectively. The surpluses should be totaled and if this total e xceeds the twelve months' provision of the prevailing level of OEBG, schools should return the excess to EDB as set out in paragraph 2.9.
Appendix A
Proforma
OEBG Allocation Advice for School Year 20XX/XX School Code : nnnn
Name of School: XXX School
Name of grant
Payment
Frequency (1) Basis Amount (2)
$
General Domain Putonghua
Administration grant .
. . . . .
Sub-total (A)
Special Domain IT in Education Project IT Incentive grant .
. . . . .
Sub-total (B) Total (A)+(B)
Note
(1) Payment frequency A= Annual B= Bi-annual M= Monthly C= Claim basis
(2) Provisional allocation, subject to adjustment when information on class num ber/size, subjects taught for the school year are finalised.
Appendix B
Proforma (for reference only)
XXX School
OEBG Expenditure Budget for School Year 2000/01
Actual Budget
SY 1999-00 Name of grant SY 2000-01
$ $
General Domain
x,xxx Putonghua x,xxx
x,xxx Administration grant x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
xxx,xxx Sub-total (A) xxx,xxx
Special Domain
x,xxx IT in Education Project x,xxx
x,xxx IT Incentive grant x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
x,xxx . x,xxx
xxx,xxx Sub-total (B) xxx,xxx
x,xxx,xxx Total (A) + (B) x,xxx,xxx
Submitted by : Approved by :
(School Principal) (Chairman of SMC)
Date : Date :
Appendix C
Proforma (for reference only)
XXX School
OEBG Expenditure Report for the period dd/mm/yy to dd/mm/yy
Name of grant
Approved Budget
Revised Budget
Actual Expenditure
Percentage spent
(1) (2) (3) (4)=(3)/(2)*100%
$ $ $ %
General Domain
Putonghua
Administration grant
.
.
.
.
.
.
Sub-total (A)
Special Domain
IT in Education Project
IT Incentive grant
.
.
.
.
.
.
Sub-total (B)
Total (A) + (B)
Appendix D Name of School: XXX School
OPERATING EXPENSES BLOCK GRANT
FINANCIAL STATEMENT FOR THE YEAR ENDED dd/mm/yy
General Domain
Special
Domain Total
$ $ $
Grants received
Actual expenditure
(Supporting details per Appendix E and F
attached)
Surplus/(Deficit) for the year
Amount transferred (to Special
Domain)/ from General Domain
Surplus/(Deficit) for the year after
transfer
Surplus brought forward from
previous years (Note)
Deficit transferred to Subscriptions Account
Surplus carried forward to next
year
Note: Surpluses of individual constituent grants accumulated prior to School Year 2000/01 should be aggregated and shown under the respective domain.
Appendix E
Name of School: XXX School
OPERATING EXPENSES BLOCK GRANT
STATEMENT OF ACTUAL EXPENDITURE FOR THE YEAR ENDED dd/mm/yy
Previous Year
Name of grant
Current
Year Remarks
$ $ General Domain
Putonghua
Administration grant .
. . . .
Others (please specify) Sub-total (A)
Special Domain IT in Education Project IT Incentive grant .
. . . . Sub-total (B)
Total (A) + (B)
Appendix F
Name of School : XXX School
OPERATING EXPENSES BLOCK GRANT ACCOUNT SPECIAL DOMAIN
STATEMENT OF ACTUAL EXPENDITURE FOR THE YEAR ENDED dd/mm/yy
Name of Grant
School-based remedial
support programme
Integration of children with special
education
needs Total
$ $ $ $ $
Grant Received
Actual Expenditure
Surplus/(Deficit) f or the year
Amount transferred from General Domain
Surplus/(Deficit) f or the year after transfer
Surplus brought forward from previous years Deficit tr ansferred to
Subscriptions Account
Surplus ca rried forward to next year
Guideline III.2
Composite Furniture and Equipment Grant
for Aided Schools
User Guide
Contents
Part
I. Principles and Rules on Usage
II. Procurement, Financial and Accounting Arrangements III. Accountability
IV. Separate Furniture and Equipment Subsidy outside the Composite Furniture and Equipment Grant (CFEG)
I. Principles and Rules on Usage
The CFEG provides schools with greater flexibility in the us e of resources. In this regard, schools should set their spending priorities and allocations in line with the o bjectives and policies laid down by their School Management Committees (SMCs).
In exercising the flexibility, schools should al ways bear in m ind that the interest of students should com e first. They should ensu re that the exp enditure incurred is reas onable and neces sary for educational purp oses and that th e pro cured F&E item s are properly recorded, managed and protected from loss or damage. In addition, schools should ensure that the CFEG/TFEG is able to cover all the expenditures.
(a) Ambit
The ambit of the CFEG/TFEG will cover
(i) F&E items to meet the needs of schools and students;
(ii) maintenance/repairs fees for F&E items; and
(iii) insurance premium for non-standard F&E items for school portions.
Schools may make reference to the F&E lists for standard design schools issued by the Education Bureau (EDB)－
(1) Secondary schools, primary schools, sc hools for the m ildly intellectually disabled, schools for the moderately intellectually disabled, schools for the mildly and moderately intellectually disabled, schools for the severely intellectually disabled and schools fo r the physically disabled.
(Website - http://edb.gov.hk/index.aspx?langno=1&nodeid=2100 )
(2) The F&E lists of other special sch ools are in the process of updating.
Please contact the School Building Section of EDB at 2892 6364 for information, if required.
(b) Financial Limit
Subject to funds being available, there is no financial lim it for F&E item s to be purchased.
(c) Surplus
Unspent CFEG funds of a school, t ogether with any surplus from its TFEG and the former Special Recurrent F&E Grant can be accumulated up to five times the provision of its prevailing level of th e CFEG. Any exceeding balance is subject to clawback by EDB.
(d) Deficit
(i) Schools are allowed to use th e surplus of the General Domain of the OEBG to cover the deficit of the CFEG.
(ii) Any deficit of the CFEG not covered by the surplus from the General Domain of the OEBG will have to be borne by non-government funds.
II. Procurem ent, Financial and Accounting Arrangements
(a) Procurement and Financial Arrangements
Schools should adhere to the tendering and purchasing procedures stipulated in the Education Bureau Circular No. 30/99 on “T endering and Purchasing Procedures in Aided Schools” issued on 4 August 1999 and/or guidelines wh ich may be issued at a later stage, if required.
(b) Accounting Arrangements
(i) Schools should m aintain a separate account nam ed “Composite Furniture and Equipment Grant Acco unt” to reco rd the income and expenditure of the TFEG and CFEG. The expenditure of this acc ount should be captured in the Balance Sheet under both headings of "Fixed Asse ts for Furniture and Equipm ent" and
"Transition Furniture and Equipm ent Grant and Composite Furn iture and Equipment Grant Utilised". In addition, schools are required to record the procured item s in the Fixed Assets Regi ster. A profor ma of the Fixed Assets Register is at the Annex.
(ii) In respect of these grants, schools should subm it th e financial statem ents in accordance with the for mats to be prom ulgated later in relev ant circular memorandum calling for the submission of the audited annual accounts.
(c) Expenditure Control
(i) To ensure that the CFEG/TFEG funds are spent properly and effectively, schools should obtain directives from their SMCs regarding the scope, criteria and rules of allocating funds. Schools should devi se their own budget on how to use the CFEG/TFEG funds and seek the approval of their SMCs of the budget and make the approved budget transparent to parents and teachers.
(ii) Schools should ensure th at the total expenditure is kept within the am ount of CFEG/TFEG. Also, if any expenditure is found improperly incurred or char ged to CFEG/TFEG funds, EDB shall ask th e school concerned to explain the anomalies. In the ab sence of acceptable exp lanations, the school should m ake good such expenditure by non-government funds.
III. Accountability
Schools have to account for the proper utilization of the CFEG and the TFEG by
(a) ensuring that they have suitable F&E items for the delivery of educational services and that su ch F &E item s are properly record ed, m anaged and protected from loss or damage;
(b) developing accountable school-based pro cedures for F&E acquisition/replacem ent, monitoring and evaluation;
(c) relating the school budget, including the budget for F&E, to the annual school plan;
(d) keeping a separate account nam ed “C omposite Furniture and Equipm ent Grant Account” to record the income and expenditure of the TFEG and CFEG; and
(e) making available the school annual report with a financial statement for parents and EDB.
IV. Separate F&E Subsidy outside the CFEG
Separate F&E subsidy will continue to be provided to schools by EDB for
(a) school adm inistration and m anagement syst em, education television and inform ation technology in education projects;
(b) replacing standard F&E items lost in natural disaster, burglary, theft, fire etc.; and
(c) new initiatives. (However, expenditures on replacement of these F&E items have to be met by the CFEG.)
Annex
Proforma Fixed Assets Register Cost
Item Descri ption Date of
Purchase Govt.
Funds School Funds
Quantity Location Date & reason of
write-off Supervisor's/
Principal's signature
Remarks
$ $
Guideline III.3
Substitute Teacher Grant (STG)
Subject to the consent of the m ajority of teachers and paren ts in advance, the Schoo l Management Committee, may opt to tem porarily freeze not more than 1 0% of the teaching establishment and claim STG. The qualifying period for claim ing STG is th ree consecutive days and the calculation of the Grant is as follows:
Daily rate of Supply Teacher
x Global average utilization rate (GAUR) of previous 3
years @
x No of school days that a vacancy arises
@ Schools will be advised of the GAUR as specified in the claim form EDB provided.
2. Schools may use the STG for e mploying teachers and supplem entary staff and staff training purposes. If supply teachers are em ployed, they should be paid at standard rates.
Schools should have docum ented guidelines an d procedures in using the STG and reporting the use of STG in their annual report. The decision to claim STG should be reviewed by the school every year.
Guideline III.4
Collection of Fines/Charges/Fees for Specific Purposes
(1) No collections shall exceed the ceilings as announced by the Permanent Secretary. All collections should be credited to the Subscr iptions/ General F unds Account except for collections of charges for non-standard items.
(2) To enhance transparency, schools should info rm the parents of the fees and charges to be collected from the pupils (including fees collected by the Parent-Teacher Association, the student union and others, if any) and list out the purposes of such collections.
(3) The collection of fees by school shall be forthwith acknowledged in writing by the Supervisor, manager or teacher on a proper form of receipt. Proper accounts of the fees collected must be kept.
(4) For the collection of registration f ees, schools should fulfill the following requirements –
(a) No registration fees (and entrance ex amination fees) should be collected from pupils allocated to sch ool through the School Places A llocation S ystems (including pupils adm itted by dis cretionary p laces adm ission) o r p lacement assistance of the Per manent Secretary. Moreover, the registration fee should not be collected before the school offers a place to a pupil;
(b) The registration fee m ay be collected only from pupils who are required to pay school fees. Any pupil who has paid the registration fee and subsequently takes up the place offered to him /her by the sc hool must be credited with the am ount of the registration fee in the first instal ment of the school fee to be paid by him/her; and
(c) Any pupil who has paid the reg istration fee when offered a schoo l place bu t subsequently decides not to take the place, may forfeit the fee.
(5) For collections of charges for non-standa rd items, schools should fulfill the following requirements -
(a) Schools should consult the parents and advise parents of the details of the proposed collection in advan ce. If the majority of parents object to the proposal, schools should withdraw the proposal;
(b) Schools should issue a list of all agreed collections w ith details to parents, and display it prom inently in the school. At the end of the s chool year, schools should send a financial statem ent to parents infor ming them of how the collections have been spent;
(c) Schools should keep a separate ledger acco unt to reco rd all inco me and expenditure pertaining to such collec tions, and upon request produce it for the Bureau's inspection. In addition, s chools shou ld include a separate s tatement showing all the income and expenditure relating to such collections in the annual audited financial statement of accounts; and
(d) Schools are advised not to collect such charges from needy parents.
(6) The School Managem ent Comm ittee m ay de vise further procedures governing the collection.
Guideline III.5.a
Items Chargeable to the School and Class Grant in Fee-charging Aided Primary Schools
I. School-based items
1. Postage and stamp duty 2. Newspapers and magazines 3. Telephone
4. Audit fee
5. Wreaths, flower-baskets and similar tributes on behalf of the school [see Note (1)]
6. 50% of professional fees for essential prof essional advice of a legal, architectural, or similar nature [see Note (2)]
7. Expenditure on staff training [see Note (3)]
II. Class-based items 1. Repairs
2. Travelling expenses for staff on official duty
3. Teachers' textbooks, maps and sets of books for supplementary reading, etc.
4. Consum able stores
5. Fuel, light and power [see Note (4)]
6. Cleaning materials 7. Library books for pupils 8. Water
9. Printing and stationery Notes :
(1) Schools should exercise due care and ec onomy to ensure proper use of government Subventions. Expenditures for ceremonial activities should be kept to the minimum.
(2) Professional fees inclu de a reaso nable charge for prelim inary sketch plans of a proposed project which m ay not be subs equently approved, provided that such payments are taken into account finally, if the project proceeds.
(3) Expenditure on staff training would norm ally be limited to short course taken in Hong Kong, and sim ilar training overseas not invol ving additional travelling expenses. T he training would have to be directly related to the work of the staff.
(4) Deposits in respect of elect ricity, gas and water m eters should not be charged to any income and expenditure accounts but should be shown as asset item s in the balance sheet.