CONTENTS
I. THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
Treasurer’s Report . . . 1
Auditors’ Report . . . ..*... 6
Balance Sheet . . . 7
Income and Expenditure Statement . . . ..*... 8
Cash Flow Statement . . . 9
Reconciliation of Funding Surplus/(Shortfall) to Net Cash Inflow from University Operations . . . ..*... 10
Notes to the Financial Statements 1. Significant Accounting Policies . . . 11
2. Capital Commitments . . . 13
3. Comparative Figures . . . 13
Schedules to the Financial Statements 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 13(a). 14. 14(a). 14(a-I). 14(a-II). 14(b). 14(c). 14(c-I). 14(c-I I). 14(d). 15. 16. 16(a). 16(b). 16(c). Buildings ... 14 Construction-in-progress.. ... 14
Other Fixed Assets ... 15
Investments ... 16
Loans to Affiliated Companies ... 16
Sundry Receivables ... 16
UGC Holding Account ... 17
Bank and Cash Balances ... 17
Accounts Payable and Accruals ... 18
Long-term Liabilities ... 18
Building Fund ... 19
Capital Fund ... 20
Reserves and Provisions ... 20
Reserves and Provisions - Amount Transferred ... 21
Specific Funds ... 22
Earmarked Grants ... 23
Earmarked Grants - UGC Central Allocation Vote 1992-95.. ... 23
Earmarked Grants - Research Grants Council.. ... 24
Capital Grants ... 25
Donations and Designated Endowment Funds.. ... 26
Donations and Designated Endowment Recurrent Accounts ... 27
Designated Endowment Capital Accounts.. ... 29
Other Operating Funds ... 30
UGC Triennium Equalization Account.. ... 31
General Income and Expenditure ... 32
UGC Recurrent Grant/Hong Kong Government Subventions.. ... 33
Fee Income ... 33
II. THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
STAFF SUPERANNUATION SCHEME
Trustees’ Report . . . 37
Auditors’ Report . . . 39
Balance Sheet . . . 41
Revenue Account . . . 42
Notes to the Financial Statements 1. Background . . . 43
2. Significant Accounting Policies . . . 43
3. Investments . . . 44
Full Actuarial Certificate . . . ..*...*.. 45
Ill. THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY ANCILLARY STAFF SUPERANNUATION SCHEME Trustees’ Report . . . ..*... . . ,.. . . .,*. . . 47
Auditors’ Report . . . 49
Balance Sheet . . . 51
Revenue Account . . . 52
Notes to the Financial Statements 1. Background . . . 53
2. Significant Accounting Policies . . . 53
3. Investments . . . * . . . 54
THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
TREASURER’S REPORT
The financial year ended 30 June 1996 saw the University continuing its growth both in terms of the student population as well as teaching and research activities. The total net assets as at 30 June 1996 rose by 7% as compared with total net assets as at 30 June 1995 to $4,031.09 million. This was largely attributable to the senior staff quarters, graduate residences and a University Centre which were still under construction, a higher level of surplus cash on bank deposits partially offset by an increase in bank loans, and was due largely to the current year’s surplus and the sale of Hong Kong Supernet Limited.
After the campus project (Phases I & II) had been satisfactorily completed, the University with the approval from the University Grants Committee (‘UGC”) started in 1993194 the construction on campus of 66 additional senior staff quarters (Phase IIA), another 156 additional senior staff quarters (Phase IIB), additional graduate residences with 1,080 places and a University Centre (“GRUC”). The final account for the construction of 66 additional senior staff quarters was expected to be settled at a total cost lower than the tendered sum. In 1995196, with the approval from the UGC and the relevant bank, $4.50 million was drawn from the existing bank loan facility for Phase IIA project to fund the costs of furniture and appliances.
General income increased by 18% to total $1,645.17 million for the year, to cope with the growth in student numbers. General expenditure primarily funded by the UGC increased by 6% to reach $1,508.48 million for the year. Specific income increased by 23% to total $437.84 million for the year. The increase was due largely to the substantial other operating income arising from the sale of Hong Kong Supernet Limited and the transfer from the excess general income. Specific expenditure on basic teaching equipment, specialist equipment and facilities, furniture and general equipment and other capital grants funded by the UGC totalled $160.94 million for the year. Other specific expenditure funded by the UGC on an earmarked basis amounted to $52.16 million for the year. Funding for research activities, both from the Government as well as from the private sector, had also grown substantially. The University continued to receive generous financial support from the commercial sector, private individuals and the community at large.
The University established Hong Kong Supernet Limited as a wholly owned subsidiary to take up the development of the Supernet project, which was a pioneer and at one time the only licensed provider of commercial Internet services in Hong Kong. Hong Kong Supernet Limited was sold in June 1996 for a net amount of $36.01 million and the sale proceeds were transferred to the University Development Fund.
From 1995/96, apart from the capitalisation policy on fixed assets, the University has adopted the accounting practices as set out in a proposed Statement of Recommended Practice (“SORP”) for UGC-funded Institutions in Hong Kong to prepare its financial statements; the proposed SORP recommends the capitalisation of fixed assets only when their costs are funded by loan facilities, but the University has decided to continue with its accounting policy of capitalising all fixed assets irrespective of the source of financing in order to record and reflect their total historical financial value in the University’s books. The proposed SORP which has incorporated as far as possible the views and comments made by the auditors of the institutions and the Hong Kong Society of Accountants, has been developed and agreed by all finance officers of the seven UGC-funded institutions. Significant accounting policies are given in the notes to the financial statements.
CONSTRUCTION PROJECTS FUNDED BY CREDIT FACILITIES Additional Senior Staff Quarters
In agreeing with the University that there would be a shortage of senior staff quarters on campus, the UGC gave approval to develop on the University’s campus 66 additional senior staff quarters (Phase IIA) and another 156 additional senior staff quarters (Phase IIB) with the full construction costs and legal and facility charges financed by two bank loans. The UGC also agreed that repayments of the bank loans over a number of years could come from the recurrent grant, up to amounts equivalent to the rental value of leasing a similar number of such staff quarters from the market. Two loan facilities of up to $150 million and $300.20 million, respectively, were arranged in the name of the University. The Phase IIA project was completed on time and under budget, and was handed over to the University during the financial year 1994/95. As at 30 June 1996, a total of $133.88 million and $151 .l 1 million was drawn to finance the construction costs of Phase IIA and
Phase IIB respectively. In addition, the University has started to repay the bank loan of the Phase IIA project from the recurrent grant and a total of $27.51 million had been repaid as at 30 June 1996.
Graduate Residence and University Centre
In 1994/95, the UGC also approved the construction of additional graduate residences with 1,080 places and a University Centre. The project is funded by a bank loan facility of up to $250 million in the name of the University. The bank loan will be repaid by the University over a number of years primarily from rental charges to be collected from occupants to the graduate residences and the University Centre. As at 30 June 1996, a toital of $135.62 million was drawn to finance the amount incurred thus far on the project.
GENERAL INCOME AND EXPENDITURE
The University operates under a triennial block grant arrangement. The current triennium started on 1 July 1995 and will end on 30 June 1998. For the triennium 1995-98, Language Enhancement Grant and Indicated Equipment Grant were not included as part of the UGC block grant. Starting from 1995196, the Indicated Equipment Grant is no longer separately funded by the UGC and the Language Enhancement Grant is provided by the UGC on an earmarked grant basis. General funds are Government funds for the general operation of the University.
General Income
For 1995/96, the first year of the current triennium 1995-98, the total general income increased by 18% to $1,645.17 million, of which $1,369.94 million or 83% was provided by the Government through the UGC: a block grant of $1,254.48 million, two reserved supplementary grants totalling $99.70 million to cover additional costs arising from general salary revisions for University staff in line with annual salary adjustments approved for the Civil Service and $15.76 million for the reimbursement of property rates paid by the University.
The remainder of the general income included $187.67 million of tuition fees and others totalling $87.56 million,
General Expenditure
The total general expenditure for the year amounted to $1,508.48 million of which $124.32 million or 8% was for Administration and $885.25 million or 59% was for Academic Departments and Academic Support Centres. Other general expenditure (e.g. Maintenance of Premises and Grounds) totalled $498.91 million. The continued expansion of the University saw a continuous upward trend of expenditure in both absolute and relative terms for Academic Departments and Academic Support Centres.
Of the total general expenditure, salaries and superannuation/gratuities including salary revisions accounted for $959.74 million or 64%, and will continue to be the major item of general expenditure. As the University approaches a steady state, the allocation of resources for administrative purposes will stabilise. The ratio of administrative staff cost to academic staff cost will reach a reasonable level.
Surplus for General Income over General Expenditure
The surplus for general income over general expenditure for the year after transfers had been made to reserves/provisions and other operating funds was $80.81 million. In accordance with general guidelines laid down by the UGC, this surplus will be carried forward to and utilised in future years of the triennium.
SPECIFIC FUNDS
Specific funds are those funds which can only be applied to an earmarked or designated specific purpose or activity.
Earmarked Grants
Languaqe Enhancement Grant 1995/96
Starting from 1995/96, the Language Enhancement Grant has been provided by the UGC on an earmarked grant basis instead of as a part of the block grant. In 1995/96, the UGC had approved $6 million for language enhancement. As at 30 June 1996, a total of $4.47 million was expended. The unspent balance will be carried forward to and utilised in future years of the triennium 1995-98.
Teachinq Development Grant 1994/95
The UGC approved a teaching development grant of $2.20 million in 1994195 to encourage, promote and reward innovative approaches to teaching and/or improvements to the learning environment. As at 30 June 1996, a total of $1.93 million was expended. In order to complete the teaching development project, the unspent balance has been approved by the UGC for carrying forward till the end of the triennium 1995-98.
Teachinq Development Grant 1995-98
The UGC also approved $5.33 million as the first tranche of the teaching development grant for 1995-98. As at 30 June 1996, a total of $0.45 million was expended. The unspent balance will be carried forward to and utilised in future years of the triennium.
UGC Central Allocation Vote 1992-95
The UGC approved $39.71 million from the UGC Central Allocation Vote 1992-95 to fund projects proposed jointly with other UGC-funded institution(s), with the University as the “Co-ordinating Institution (Cl)“. Of this amount, a total of $39.70 million was expended as at 30 June 1996. At the same time, the University is also the “Participating Institution” in two projects with the Chinese University of Hong Kong and City University of Hong Kong as the Cl, respectively. A total of $1.61 million was granted to the University by these Cls, of which a total of $0.83 million was expended. The unspent balances in these joint institutions’ research projects has been approved by the UGC for carrying forward till the end of the triennium 1995-98.
Research Grant Council
During the year, the University received $66.42 million from the Research Grants Council (“RGC”) to fund research projects, equipment and facilities. The grants are detailed as follows:
RGC - Direct Allocation and Competitive Bids Proiects
A total of $64.82 million was received during the year from the RGC to fund research projects. Of this, $56.82 million was obtained on a competitive bid basis for individual projects. The remaining $8 million was given to the University in the form of a direct allocation grant to support individual research projects at the discretion of the University. As at 30 June 1996, there was an unallocated amount of $0.16 million from the direct allocation grant. This will be carried forward to and utilised in future years of the triennium 1995-98.
RGC - Central Allocation Vote 1994/95
A grant of $1.90 million was approved by the RGC in 1994/95 to support the establishment of “A Polymer Materials Development Processing and Characterisation Laboratory”. As at 30 June 1996, the grant was fully expended.
RGC - Central Allocation Vote 1995/96
A grant of $1.60 million was approved by the RGC in 1995/96 to support the establishment of “Computing Resources for Research on High-Performance Video Compression”. As at 30 June 1996, the project was still at a planning stage. No money was expended and the unspent balance has been approved by the UGC for carrying forward to the next financial year.
RGC - Co-operative Research Centres
A grant of $2.10 million was approved by the RGC in 1993/94 for the establishment of a CRC pilot scheme in wireless communication. As at 30 June 1996, a total of $2.09 million was expended. The unspent balance has been approved by the UGC for carrying forward till 30 September 1996.
Academic Exchanges with Institutions of Hiaher Education in China
A grant of $0.5 million was received from the UGC during 1995/96 to support the University’s academic exchange activities with China. As at 30 June 1996, the entire amount was fully expended.
Capital Grants
The UGC approved a total grant of $1,521.95 million for the acquisition of basic teaching equipment, specialist equipment and facilities, furniture and general equipment. In addition, the UGC also approved a capital grant of $32.97 million to finance the construction of laboratories and facilities in the University.
Basic Teachinq Equipment
In July 1990, the Government approved a grant of $194 million to meet requirements for basic teaching equipment for Phase I development of the University. As at 30 June 1996, a total of $178.16 million was expended.
In February 1995, the UGC also approved an additional provision of $120 million for the University to acquire basic teaching equipment required to meet the needs of its approved student nurnber targets up to 1997/98. As at 30 June 1996, a total of $16.03 million was expended.
Specialist Equipment and Facilities
In June 1990, the Government approved a grant of $700 million for the acquisition of specialist equipment and facilities for both Phases I & II. As at 30 June 1996, a total of $457.02 million was expended.
Furniture and General Equipment
In July 1990, the Government approved a grant of $453 million for the acquisition of furniture and general equipment for both Phases I & II. In June 1995, the UGC revised downward the total provision for building-related items (within the originally approved $453 million) from $169 million to $164.72 million due to a downward Tender Price Index movement
thus reducing the grant for acquiring furniture and general equipment from the original $453 million to $448.72 million. As at 30 June 1996, a total of $412.57 million was expended.
Other Capital Grants
The UGC approved $32.97 million to finance the construction of additional dangerous goods stores, the fitting out and installation of environmental control for the engineering laboratories and the fitting out of the Microfabrication Centre in Phase II. As at 30 June 1996, a total of $23.76 million was spent on these projects.
Donations, Designated Endowment Funds and Other Operating Funds
Donations and investment/interest income for general and designated purposes during the year amounted to $57.87 million, of which 79% was for the support of research activities, 5% for the support of general University activities, 11% for scholarships, bursaries and student loans, and 5% for designated endowments. In addition, the University generated $120.45 million from self-financing activities, research contracts and others in 1995/96. With a total of $13.12 million earned from investment and bank interest income and after expending or transferring $93.71 million, the balance of donations designated endowment funds and other operating funds stood at $252.01 million as at 30 June 1996.
OUTLOOK FOR 1996197
With the construction of the additional 156 senior staff quarters, the graduate residence and the University Centre, it is anticipated that total assets will increase correspondingly but against the carrying of a broadly equivalent amount in bank loans. General income and expenditure will continue to grow albeit slowly as the University will have almost reached the planned total student capacity and the high growth since 1991192 when students were first admitted is unlikely to recur. Donations and specific income are also expected to increase, as the University will continue to be successful in attracting research funding, but the extent of the increase might be relatively smaller after discounting the sale proceeds for Hong Kong Supernet Limited in 1995/96.
The financial year under review has been a busy but smooth and successful one. I would like to take this opportunity to thank my colleagues in the University’s Finance Committee and all parties involved in the management of the University’s finances for their advice and contributions during the year.
SIGNED
Mr. LAU Wah-sum, OBE, JP Treasurer of the University, 22 November 1996
AUDITORS’ REPORT To: The Council of the Hong Kong University of Science and Technology
We have audited the financial statements on pages 7 to 35 which have been prepared in accordance with accounting principles generally accepted in Hong Kong.
Respective Responsibilities of the Council and Auditors
The Council 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.
We are engaged to form an independent opinion, based on our audit, on those statements 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. It also includes an assessment of the significant estimates and judgments made by the Council in the preparation of the financial statements, and of whether the accounting policies are appropriate to the University’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 misstatements. 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 the financial statements give a true and fair view of the state of affairs of The Hong Kong University of Science and Technology as at 30 June 1996 and of its surplus of income over expenditure and cash flows for the year then ended.
SIGNED
Deloitte Touche Tohmatsu Certified Public Accountants Hong Kong
BALANCE SHEET AS AT 30 JUNE 1996 30 June 1995 K$‘OOO H 3,581,748 205,329 2,262 618.076 784,260 469,983 ] 148.093 3,937,432 (159,577) FIXED ASSETS Buildings Construction-in-progress
Other Fixed Assets
1 2
3,485,417
3 377,950
INVESTMENTS 4
LOANS TO AFFILIATED COMPANIES 5
CURRENT ASSETS Stocks
Prepayments and Deposits Sundry Receivables UGC Holding Account Bank and Cash Balances
LESS: CURRENT LIABILITIES Accounts Payable and Accruals
NET CURRENT ASSETS
9
LONG-TERM LIABILITIES 10
3,777,855 TOTAL NET ASSETS 4,031,092
3,028,089 BUILDING FUND 11 3,033,981
390,152 CAPITAL FUND 12 377,950
218,177 RESERVES AND PROVISIONS 13 287,108
141,437 SPECIFIC FUNDS 14 251,238
0 UGC TRIENNIUM EQUALIZATION ACCOUNT 15 80.815
3,777,855 TOTAL FUNDS 4,031,092 Schedule 30 June 1996 HK$‘OOO H K$‘OOO 3,863,367 223,715 30 864 32,804 41,268 1,007 708,317 472,052 312,208 4,399,320 (368,228)
Approved by the Council on 22 November 1996
SIGNED SIGNED
Mr. LAU Wah-sum Professor Chia-Wei WOO
Treasurer of the University President
The accompanying notes and schedules are an mfegral part of the finanoal statements.
SIGNED Norman W. Y. NGAI
Director of Finance
INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JIJNE 1996
1 July 1994 to 30 June 1995 HK$‘OOO 1 ,198,775 125,971 36,816 27,880 3,784 GENERAL INCOME
UGC Recurrent Grant/Hong Kong Government Subventions Fee Income
Investment and Bank Interest Income Rental Recoveries from Staff Miscellaneous Income 1,393,226 73,870 170,316 65,596 46,061 355.843 SPECIFIC INCOME Earmarked Grants Capital Grants
Donations and Designated Endowment Income Other Operating Income
107,648 877,293 234,917 25,379 27,735 155.907 GENERAL EXPENDITURE Administration Academic Maintenance of Premises General Education
Student Facilities and Amenities Miscellaneous 1,428,879 1.508.477 79,855 171,172 39,311 40,729 331,067 SPECIFIC EXPENDITURE
Expenditure met from Earmarked Grants Expenditure met from Capital Grants
Expenditure funded by Donations and Designated E%dowment Income Other Operating Expenditure
(10,877) SURPLUS/(DEFICIT) FOR THE YEAR
(75,55i)
Transferred from the UGC Holding Account Transferred to Reserves/Provisions
0 Transferred to Other Operating Funds 4,081 Transferred from/(to) Specific Funds
SURPLUS/(DEFICIT) TRANSFERRED TO THE (82,350) UGC TRIENNIUM EQUALIZATION ACCOUNT
The accompanying notes and schedules are an infegfal part of the financial statements
Schedule 1 July 1995 to 30 June 1996 K!§‘OOO H 16 1,369,937 189,032 46,180 35,450 4,568 1,645,167 14 78,560 180,972 57,865 120,446 437,843 16 124,316 885,250 236,362 20,246 32,998 209.305 14 52,162 160,937 50,321 38.695 302,115 16 13(a) 16 14 272,418 1,294 (65,865) (17,421) (109,611) 16 80,815
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 1996
1 July 1994 1 July 1995 to to 30 June 1995 30 June 1996 HK$‘OOO H K$‘OOO 324,609 (390) 36,816 6,956 (121) 43,651 (35,659) (267,294) 20 (146,307) 0 (1,232) (I,,,,,:) - (603,535; !-I i
(235,665) NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 10,372
FINANCING
Capital Element of Finance Lease Payments
(258)
Draw Down on Bank Loans 258,519
Repayment of Bank Loans (27,507)
152,446
(83,219)
512,611
NET CASH INFLOW FROM FINANCING
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS BROUGHT FORWARD
230,754
-I
241 ,126
429,392 NET CASH INFLOW FROM UNIVERSITY OPERATIONS
NET CAPITAL INFLOW/(OUTFLOW) FROM DESIGNATED ENDOWMENTS
347,382
190
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE lnvestmentllnterest Income from General Funds
Investment/Interest Income from Specific Funds Interest Element of Finance Lease Payments
NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE 60,515
INVESTING ACTIVITIES
(Increase)/Decrease in Bank Deposits Maturing after Three Months 90,377
Payments to Acquire Other Fixed Assets (220,024)
Receipts from Sales of Other Fixed Assets 5
Payments to Acquire Investments (18,386)
Receipt from Sales of Hong Kong Supernet Ltd. 36,010
Loans to Affiliated Companies 0
Repayment of Loans from HKUST R and D Corporation Ltd. 2,232
Expenditure on Capital Projects (287,929)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (397,715)
429,392 CASH AND CASH EQUIVALENTS CARRIED FORWARD 670,518
425,653 3,739
ANALYSIS OF THE BALANCES OF CASH AND CASH EQUIVALENTS Bank Deposits Maturing within Three Months
Other Bank and Cash Balances
429,392 670,518
626,148 44,370
RECONCILIATION OF FUNDING SURPLUS/(SHORTFALL) TO NET CASH INFLOW FROM UNIVERSITY OPERATIONS
FOR THE YEAR ENDED 30 JUNE 1996
1 July 1994 1 July 1995 to to 30 June 1995 30 June 1996 K$‘OOO H HK$‘OOO I I 1 (35,653) (8,670) 8,930 (I,1 16) (5,400) (30,796) 29,465 0 755 (1180) 26,394 5,332 24,776
(10,877) TOTAL FUNDING SURPLUS/(SHORTFALL) 254,997
223.502 .I TOTAL ADJUSTMENTS 123,411
212,625 NET FUNDING SURPLUS 378,408
323 (21,308) (3,371) (14,624) 150,332 (42) 674 111,984 (31,026) FUNDING SURPLUS/(SHORTFALL) Surplus/(Shortfall) from General Funds Surplus/(Shortfall) from Specific Funds
Capital Account
Capital Works Reserve Fund Other Capital Grants
Phase I/II Campus Development Project - Menor Modification Works UGC Central Allocation Vote 1992-95
Research Grants Council
Language Enhancement Grant 1995/96 Teaching Development Grant 1994/95 Teaching Development Grant 1995-98
Academic Exchanges with Institutions of Higher Education in China Donations and Designated Endowment Recurrent Accounts Other Operating Funds
ADJUSTMENTS
Acquisition of Other Fixed Assets Disposal of Other Fixed Assets Disposal of Hong Kong Supernet Ltd.
Investment/Interest Income from General Funds Investment/Interest Income from Specific Funds
DECREASE IN STOCKS
INCREASE IN PREPAYMENTS AND DEPOSITS INCREASE IN SUNDRY RECEIVABLES
(INCREASE)/DECREASE IN THE UGC HOLDING ACCOUNT
INCREASE/(DECREASE) IN ACCOUNTS PAYABLES AND ACCRUALS INCLUDING OVERPROVISION OF OUTSTANDING COMMITMENTS INCREASE/(DECREASE) IN DEFERRED GRATUITIES
INCREASE IN RESERVES AND PROVISIONS
324,609 NET CASH INFLOW FROM UNIVERSITY OPERATIONS 347.382 136.690 (14,600) 28,828 5,807 (1!12!) 22,228 1,528 (484) 4,874 (623) 7,544 64,330 118,307 149 (1,186) (17,613) 650 (18,575) 2,483 3,066
1. 1.1
1.2
1.3
1.4
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 1996
SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting
Apart from the capitalisation policy on fixed assets, the financial statements have been prepared in accordance with the proposed Statement of Recommended Practice (“SORP”) for UGC-funded Institutions in Hong Kong; the proposed SORP recommends the capitalisation of fixed assets only when their costs are funded by loan facilities but the University has decided to continue with its accounting policy of capitalising all fixed assets irrespective of the source of financing in order to record and reflect their total historical financial value in the University’s books. The latest version of the proposed SORP, jointly agreed by all finance officers of the seven UGC-funded institutions for implementation from this financial year, has incorporated as far as possible the views of their auditors and preliminary comments made by the Hong Kong Society of Accountants, and is now under further review by the Hong Kong Society of Accountants. In general, the financial statements have been prepared on the accruals basis except for the expenditure as specified in Note 1.3 below.
The University has separately constituted a HKUST Educational Trust for the promotion and development of education and learning through teaching and research by the University, and independent Deeds of Trust for the University’s two superannuation schemes. Their accounts are prepared and audited separately and are not included in these financial statements.
The University has not consolidated in these financial statements the financial activities of its wholly owned subsidiary companies, HKUST R and D Corporation Limited and HKUST Properties Limited, as the transactions of HKUST R and D Corporation Limited are not material in the context of the University while HKUST Properties Limited is a dormant company.
UGC Subventions Recognition
All subventions are accounted for on an accruals basis as they are and will be approved by the UGC for the financial year.
Expenditure
It is the policy of the University to recognise, as a liability, approved expenditure relating to items in respect of which purchase orders have been placed by the University with suppliers but for which goods or services have not been received at the balance sheet date.
Buildings and Construction-in-progress
Construction-in-progress is capitalised at cost to the Building Fund but is not depreciated. When a building is completed and formally handed-over to the University, costs formerly recorded under the Construction-in-progress are reclassified as Buildings and depreciated on a straight-line basis to write off from the Building Fund the capitalised costs of the buildings at the year end over their useful llives at 2% per annum.
The campus site located at Sai Kung of approximately 60 hectares was granted by the Government at a nominal rent for 58 years through 30 June 2047. The land grant, in the nature of an operating lease, is not recorded in the financial statements.
1.5 Other Fixed Assets
The costs of other fixed assets acquired are first charged against the respective fund accounts in the year of acquisition based on approved orders and then capitalised to the Capital Fund. Depreciation is provided on a straight-line basis to write off from the Capital Fund the capitalised cost of other fixed assets at the year end over their useful lives at the following rates :-
Computing, audio/visual, maintenance, teaching and sports equipment Motor vehicles
Office and quarters furniture and equipment, and electrical appliances
25% per annum 25% per annum 20% per annum
Other fixed assets include those conferred by the HKUST Educational Trust. Assets leased under finance leases are capitalised at the present value of the minimum payments at the inception of the lease and depreciated on the same basis as mentioned above or, where shorter, over the terms of the finance leases.
1.6 Investments
Listed and unlisted investments are stated at cost. Realised and accrued income and investment expenses are dealt with in the related funds.
1.7 Stocks
Stocks held for resale in respect of self-financing operations are valued at the lower of cost and net realisable value. Cost is calculated using the average cost method. Net realisable value is calculated with reference to the actual or estimated selling price less the related cost of marketing, selling and distribution. Other stocks are written off against the related funds in the year in which expenditure is incurred.
1.8 Library Books and Periodicals
Library books and periodicals are written off against the related funds in the year in which expenditure is incurred.
1.9 Donations, Donated Services and In-kind Contributions
Donations are accounted for on an accruals basis. The value of donated services and in-kind contributions is not recorded in the financial statements except in cases where their monetary benefits are material and can be reasonably assessed.
1.10 Taxation
The University is exempted from payment of tax by virtue of Section 88 of the Inland Revenue Ordinance.
1.11 Cash Equivalents
Cash equivalents are defined as short-term, highly liquid investments which are readily convertible into known amounts of cash and which were within three months of maturity when acquired, less advances from banks repayable within three months from the date of the advance.
2. CAPITAL COMMITMENTS
As at 30 June 1996, there were outstanding capital commitments of $8.02 million funded by the UGC and $176.75 million funded by loan facilities respectively (1995: $17.67 million funded by the UGC and $470.75 million funded by loan facilities) in respect of capital works contracted for.
Liquidated damages of $22 million will be received in the following financial year from the contractor to the University for the revision of the time for the completion of the construction projects on the 156 additional senior staff quarters (Phase IIB), the graduate residences with 1,080 places and the University Centre.
3. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to conform to the current year’s presentation.
SCHEDULES TO THE FINANCIAL STATEMENTS 30 JUNE 1996 1. BUILDINGS Campus Project Phases I Senior and II Staff Phases I Modification Quarters -
and II Works Phase IIA Total --
K$‘OOO
H H K$‘OOO H K$‘OOO H K$‘OOO (Note 7) (Note 2) COST Asat30June1995 Additions Asat30June1996 /cGJ-mJmr 3,257 406 I 19,387 133,585 3,410,378 DEPRECIATION Asat30June1995 Charged for the Year
Asat30June1996 285,213 701 5,008 290,922
NET BOOK VALUE
Asat30June1996 -- 2,9;'2,193 18,686 128,577 3,119,456
Asat30June1995 -- 3,003,968 15,341 114,465 3,133,774
Notes:
1. The UGC approved a total captal project cost of HK$I35 mill/on to develop on the Univewfy’s campus 66 add/t/ona/ senior staff quarters (Phase //A) with the full construction cost and legal and facility charges financed by a bank loan of up to a maxmum of HK$‘I50 m/ho~ 2. The net book value of buildings was represented and financed by the Building Fund, Bank Loans and Accounts Payable.
2. CONSTRUCTION-IN-PROGRESS Graduate Senior Residence Fitting Out and Environ- mental Environ- mental/ COST Staff and Quarters - University Phase IIB Centre
H K$‘OOO H K$‘OOO (Note 7) (Note 2) Asat30June1995 Additions /l--zr Asat30June1996 179,245 160,156
Dangerous Control of Micro- Geotechnical Goods Engineering fabrication Research
Stores Laboratories Centre Facility Total K$‘OOO
H H K$‘OOO HK$‘OOO HK$‘OOO H K$‘OOO
(Note 3)
968 10,251 14,264 1,077 365,961
Notes:
1. The UGC a/so approved the construction of another 156 semor staff quarters (Phase i/B) on the Umvers/ty’s campus with fundmg arrangements smilar to those for the 66 senior staff quarters (Phase //A). A bank loan of up to a maxmum of HK$300.20 md/~on was secured.
2. Smilarly, the UGC approved the construct/on of additional graduate resjdences w/fh 1,080 places and a Umvers/fy Centre. The project IS a/so financed by a bank loan of up to a maxmum of HK$250 milhon.
3. OTHER FIXED ASSETS COST Asat30June1995 652,150 5,085 252,398 909,633 Additions 185,586 490 34,161 220,237 Disposals/Written Off (4.2601 (205: (7661 (5,231) Asat30June1996 833,476 5,370 285,793 1,124,639 DEPRECIATION Asat30June1995
Charged for the Year
DisposalsNVritten Off
Asat30June1996
NET BOOK VALUE
Asat30June 996 301,466 951 75,533 377,950 Asat30June 995 296,402 1,196 92,554 390,152 Computing, AudioNisual, Maintenance, Teaching and sports Equipment K$‘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$4.50 million was drawn in 1995/96 from the existing bank loan facility for the Phase /IA project to fund the costs of furmfure and apphances for the development.
4. INVESTMENTS Balance as at 30 June 1995 K$‘OOO H 78,358 126,920 1 50 0 0 126,971 205,329
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$l each HKUST R and D Corporation Ltd.
2 shares of HK$l each Balance as at 30June1996 H K$‘OOO 85,404 138,260 1 50 0 0 138,311 223,715 Note.
The market value of listed and unlisted investments with investment managers as at 30 June 1996 was HK$245.20 m////on (1995, HKs220.21 million).
The nef profits of the subsidiaries not consolidated but attributable to the University were: Previous Years
Since Acquisition HK$‘CWO
0 Dealt with in the Financial Statements of the Un/vers/fy 0 Not dealt with in the hancial Statements of the University
5. LOANS TO AFFILIATED COMPANIES
Balance as at 30 June 1995
K$‘OOO H
2,232 HKUST R and D Corporation Ltd. 30 Varsity Resources Corporation Ltd. 2,262 6. SUNDRY RECEIVABLES Balance as at 30 June 1995 K$‘OOO H 335 15 52 0 666 19,180 0 0 56 415 2,936 23,655
Amount Due from The HKUST Educational Trust Amount Due from HKUST Properties Ltd.
Amount Due from HKUST R and D Corporation Ltd. Amount Due from Hong Kong Supernet Ltd. 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 HK$‘OOO 0 117 Balance as at 30 June 1996 H K$‘OOO 0 30 30 Balance as at 30 June 1996 H KS’000 400 15 0 236 0 0 17,800 14,800 24 289 7,704 41,268
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$'OOO 663,947 44.370 708,317
9. ACCOUNTS PAYABLE AND ACCRUALS
Balance Balance
as at as at
30June1995 30June1996
HK$'OOO HK$'OOO
0 Amount Due to HKUST R and D Corporation Ltd. Backpayments in relation to General Salary Revision
79
19,180 with effect from 1 April 1995 for the Period April to June 1995 Backpayments in relation to General Salary Revision
0 0 5,607 0 2,773 105,977 92,778 90,117 6,827 8,834 258 137,632
with effect from 1 April 1996 for the Period April to June 1996 Bank Loans (Due Within One Year)
Construction Expenditure Funded by Bank Loans Deferred Gratuities (Due Within One Year) Expenditure Funded by Capital Grants
Expenditure Funded by Indicated Equipment Grant Gratuities (Due Within One Year)
Income In Advance Library Books Orders
Obligations Under Finance Lease (Due Within One Year) Other Accounts Payable and Accruals
17,800 30,149 59,337 3,175 105,031 20,391 98,722 10,009 1,979 302 125,078 469,983 472,052 10. LONG-TERM LIABILITIES Balance Balance as at as at 30June1995 30June1996 HK$'OOO HK$'OOO
156,487 Bank Loans (Note) 362,957
2,705 Deferred Gratuities (Due Beyond One Year) 5,188
385 Obligations Under Finance Lease Repayable in the Second Year 83
159,577 368,228
Note:
Three term loan faci/if/es of HK$150 m/l//on, HK$300.20 million and HK$250 million were obfa/ned by the Un/vers/fy to finance respecfively the construction of 66 additional senior staff quarters (Phase I/A), 156 add/f/ona/ senior staff quarters (Phase l/B) and additional graduate residences with 1,080 places together with a Universsify Cenfre. Within the term loan fachfy of HK$150 m////on, HK$4.50 m///ion was used to fund fhe costs of furniture and appliances for the Phase //A project. Repayments of the two bank lodns for senior staff quarters will come from the recurrent grant over a number of years, up to amounts equ/va/enf to the rental value of leasIng a similar number of such staff quarters from the market, while the third bank loan w//l be repaId by the Un/vers/fy over a number of years primarily from rental charges to be collected from occupants to the graduate rekdences and the Unwersify Cenfre. As at 30 June 1996, a total repayment of HK$27.51 mill/on to the bank loan for Phase I/A project was made.
11. BUILDING FUND Campus Project Phases I Senior Phases I and II K$‘OOO H (Note) Balances as at 30 June 1995 3,003,968 15,341 (2,336)
Addhons/Deprecia!ron Written Off
Addltlons 33,373
Depreciation Wntten Off
and II Staff Modification Quarters -
Works Phase IIA K$‘OOO H H K$‘OOO (2,672) Net Additions (31,775) 3,345 18,878 Fitting Out and Environ- mental Dangerous Control of Goods Engineering Stores Laboratories K$‘OOO H H K$‘OOO 10.113 969 0 3,028,089 138 934 13,295 0 13,295 5,892 ~- 138 4 Environ- mental/ Micro- Geotechnical fabrication Research Centre m Total HK$‘OOO H K$‘OOO H K$‘OOO
Balances as at 30 June 1996 2,972,193 18,686 16,542 -= 968 10,251 14,264 1,077 3,033,981
Note,
The Campus Protect - Phases I and It, estmated to cost HK$3,548 mhon excludmg fumture cost at the June 1990 price level was financed by a donatm of HK$1,926 m///on from the Royal Hong Kong Jockey Club and an approved subvention of HK$1,622 m//ton from the t-tong Kong Government. An add/bona/ fundmg of HKS21 m///m was a/located by the Royal Hong Kong Jockey Club to fund the project team. As at 30 June 1996, the total expendtture at cost for the project stood at HK$3.257 m/l/on and was financed by :
3OJune 1995 HKS'OOO 1.941,695 1,282,338 3.224,033 (220,065) 3,003,968
Royal Hong Kong Jockey Club Donation Hong Kong Government
Total Expenditure at Cost Less: Accumulated Depremfion
30June 1996 HK$'OOO 1,944,186 1,313,220 3,257,406 (285,213) 2,972,193
12. CAPITAL FUND
Balance as at 30 June 1995 Additrons/Depreciatron Written Off
Additions
Depreclatron Written Off Net Additions
Balance as at 30 June 1996
The balance of the Capfal Fund as af 30 June 1996, representing the nef book value of ofher fixed assets, was funded by: 30 June 1995 HK$'OOO 841,721 c-l Government Funds 67,912 Non-Government funds 909,633
(519,481) Less; Accumulated Depreciation 390.152 K$‘OOO H 390,152 (12,202) 377,950 30June 1996 HK$'OOO 1,124,639 (746,689) - 377.950 Balance as at The cost of Non-Government funds included fhaf relating to other fixed assets conferred by the HKUST Educational Trust.
13. RESERVES AND PROVISIONS
Amount Amount
Balance Transferred Transferred as at Amount from General/ Amount to General/
30 June 1995 Received Specific Funds Expended Specific Funds 30 June 1996 K$‘OOO H H K$‘OOO H K$‘OOO (Sch. 73(a)) H K$‘OOO HK$‘OOO (Sch. 13(a)) 400 200 1,400 1,300 1,800 1.200 6,300 0 2,443 H K$‘OOO Building-related Reserves Air Conditioner Plant (Chiller) Air Conditioner Plant (Small Unit) Household Furniture/Appliances Lifts
Maintenance of Premises
Maintenance/Renovation of Staff Quarters
3,123 1,310 8,452 2,936 12,639 7.047 3,523 1,510 9,852 4,236 11,996 8,247 39,364 Non-building-related Reserves Computer Equipment
General and Academic Equipment
Motor Vehicles - 32,000 Staff-related Reserves Contractual Passages Gratuities Leave Entitlement 105,326 0 65.245 49,047 110,324 Student Residential Halls
General
Furniture and Equipment Major Redecoration
8,463 0 6,717 0 2,030 13,150
180 0 2,000
Exchange Equalization 2,000 180 0
Prowsions for Research Projects 98,663 0 -~ 64,548
13(a). RESERVES AND PROVISIONS - AMOUNT TRANSFERRED
General Funds Specific Funds General Funds and Specific Funds
Amount Amount Transferred Transferred From To KS’000 H HK$‘OOO Building-related Reserves
Air Condrtroner Plant (Chrller) 400 0 Arr Condrtroner Plant (Small Unit) 200 0 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
Furniture and Equipment Major Redecoratron 11,200 0 11.200 0 0 0 0 0 0 0 ~ _____ Sub-total (IV)
Provisions for Research Projects
Infrastructure Grant Competitrve Bids Direct Allocatron Others Sub-total (V) TOTAL (l)+(ll)t(lll)t(lV)+(V) 0 0 12,690 18,912 0 0 0 0 0 610 12,690 19,522 62,190 22,442 Sub- Total i K$‘OO( 400 200 1,400 1,300 (643 1,200 3,857 16,800 15,008 (285 31,523 11.200 11.200 3,141 1,626 1,570 58 2,006 346 6,717 2,030 4,687 (6,222 0 0 20,090 C 1,340 (61C 0 0 45,856 25,766 6,002 4,662 0 0 0 (6,832 51,858 30,428 21,430 39.74E 58,575 32,458 26,117 Amount Amount Transferred Transferred From To K$‘OOO H HK$‘OOO 0 0 0 0 0 0 0 0 0 0 0 0 ~ ____ 0 ___- 0 0 0 0 0 0 0 ____ ____ 0 0 ~ ____ 0 0 ~ ____ 0 0 ~ ____ Sub- <aJ -lK$‘OO( 0 0 0 0 0 0 0 0 0 0 0 0 0 1,515 1,512 1,660 Amount Amount Transferred Transferred From IQ HK$‘OOO HK$‘OOO 400 0 200 0 1,400 0 1,300 0 1,800 2,443 1,200 0 6,300 2,443 15,200 192 0 285 32,000 477 3,141 1,626 1,570 58 2,006 346 6,717 2,030 12,690 18,912 45,856 25,766 6,002 4,662 0 610 ~ ~ 64,548 49,950 Total iK$‘OOO 1,300 (643 1.200 3857 A 15,008 (285 31,523 11 200 A 11 200 I 1,512 1,660 4687 A (6,222 (610 14598 L 65865 A
14. SPECIFIC FUNDS Specific Income Amount Recerved/Transferred 78,560 174,852 50,211 114,981 418,604 0 418,604 lnvestmenfflnterest Income 0 6,120 7,654 5,465 Endowment Recervednransferred 0 0 ~- 0 0 19,239 0 0 19,239 200 200 200 Donations and Designated Endowment Other Earmarked Capital Recurrent Operating
Grants Grants Accounts ____- Funds Schedule H K$‘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
(Note) (Note) (Note) (Sch. 14(a-I))
Academic Exchanges with Institutions Research of Higher Grants Education
Council in China IcrtiA K$‘OOO H HK$‘OOO H K$‘OOO (Sch. 14(a-II)) Approved Commitments ~ 6,000 - 2,200 5,325 q 41,321 70,417 1,518 126,781 Subventions Received Up to 30 June 1995 0 2,200 0 41,001 4,000 1,020 48,221
During the Year 6,000 0 5,325 320 66,417 498 78,560
-
Up to 30 June 1996 6,000 2,200 5,325 41,321 70,417 1,518 126,781
Expenditure/Transferred Up to 30 June 1995 Dunng the Year
Transferred to ReseweslProvwons 4,472 484 451 --L 1 445 65,619 1,121 73,592 Up to 30 June 1996 4,472 1,929 451 -- 40,532 68,644 1,518 117,546 Balances as at 30 June 1996 1,528 271 4,874 q 789 1,773 0 9,235 ~- Balances as at 30 June 1995 0 - 755 0 q 1,914 975 623 4,267 Note
The unspent baiances have been approved by the UGC for carrymg forward t//l the end of the triennm 1995-98.
14(a-I). EARMARKED GRANTS - UGC CENTRAL ALLOCATION VOTE 1992-95
Hong Kong
Centrifuge Chinese Evaluation Joint Facility for Medicine of the Institution Institute Geotechnical and Other Student Job Placement of Micro Characterization Natural Experience
Svstem Systems and Modelling Products Project Total K$‘OOO
H HK$‘OOO H K$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO (Note 7) (Note I) (Note I) (Note 2) (Note 2)
Approved Commitments 2,710 30,000 q 7,000 452 1,159 - 41,321
Subventions Received Up to 30 June 1995 During the Year Up to 30 June 1996 2,710 30,000 7,000 512 779 41,001 0 0 0 (60) 380 320 - 2,710 30,000 7,000 452 1,159 41,321 Expendlturenransferred Up to 30 June 1995 1,775 30,000 7,000 303 9 39,087
During the Year 935 (11) _ 0 149 372 1,445
Up to 30 June 1996 2,710 29,989 7,000 452 381 40,532
Balances as at 30 June 1996 (Note 3) ____- -____ 0 11 =- 0 0 778 - 789
Balances as at 30 June 1995 ~- 935 0 =- 0 209 770 - 1,914
Notes
1 The HKUST 1s the Co-ordmahng /nst/tut/on for these projects 2 The MUST IS the Partticpatmg /nsfhA~on for these projects.
3 The unspent balances have been approved by the UGC fur carrymy forward t//l the end of the tr/ennium 1995-98
.~ ~-
14(a-II). EARMARKED GRANTS - RESEARCH GRANTS COUNCIL
Approved Commitments
Subventions Received Up to 30 June 1995 During the Year Up to 30 June 1996
Expenditurenransferred Up to 30 June 1995 During the Year
Transferred to Reserves/Provisions
Up to 30 June 1996
Balances as at 30 June 1996
Balances as at 30 June 1995
Notes.
Central Central Co-operative Direct Competitive Allocation Allocation Research
Allocation Bids Vote 1994/95 Vote 1995196 Centres Total HK$‘OOO H K$‘OOO HK$‘OOO H K$‘OOO H K$‘OOO HK$‘OOO
(Note I) (Note 2) (Note 3)
8,000 56,817 -- 1,900 1,600 2,100 70,417 0 0 1,900 0 2,100 4,000 8,000 56,817 -- 0 1,600 0 66,417 8,000 56,817 1,900 1,600 2.100 70,417 7,839 56,817 -- 260 0 703 65,619 7,839 56,817 1,900 0 2,088 68,644 161 0 -m 0 1,600 12 1,773 0 0 -m 260 0 715 975
1. The unallocated balance as at 30 June 1996 w/l be carried forward t/l/ the end of the triennium 199598. 2. The UGC has approved carrying forward the unspent balance to the next financial year 1996197. 3. The unspent balance has been approved by the UGC for carrying forward t//l 30 September 1996.
14(b). CAPITAL GRANTS Balance as at 30 June 1995 Approved Commitments
HK$OOO HK$‘OOO HK$‘OOO CAPITAL ACCOUNT
53,373 BasrcTeachrng Equipment-Phase1 0 Basrc Teaching Equrpment - Phase II 863 Others
54,236 Sub-total (I) (Note 2)
194,000 120,000 59,233 219,435 0 6,096 225,531 166,062 12,101 178,163 0 8,300 0 8,300 0 16,032 16,032 59,233 0 0 59,233 58,370 863 59,233 373,233 278,668 8,300 6,056 293,064
CAPITAL WORKS RESERVE FUND (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 30 June 1995 the Year the Year 30June1996 30June1995 theYear 30June1996 30June1996
HK$‘OOO (Note 1)
HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO
47,368 (7,732) 104,400 24 43,700 ____-. 0 - 148,100 24 1,487 0 1,487 34 1,006 1,040 447 3,765 0 13,765 10,113 715 10,828 2,937 407,671 407,585 815,256 224,432 28,996 253.428 352,793 104,225 397,500 15,071 750,293 119,296 13,200 969 A- 10924 0 13,200 0 10,000 18,452 0 28,452 11,116 12,645 23,761 4.691 457,018 (49,347) 412,571 ~ l-986! 869,589.. 154,333) 11,893 1,307 0 39,636 955,800 --____ 174,852 6,120 1,136,772 985,841 160,937 1,146,778 _~~_ j10,006)
The subvenbons recewable during the year mcluded HKS2 80 rnhx~ of 6a.w Teachmg Equpnent - Phase II, HKSI 1 50 mk~n of Speaahst Equpment and Faohtles and HKSU 50 m//~on of Mcrofabncat/on Centre, whch w/l/ be released by the UGC at the star! of the next fmarmal year
The unspent balances are to be camed forward to the next fmamal year and the shortfalls as at 30 June 1996 w/l be offset agamst fundmg to be released by the UGC
to the Unwersfty m the next finamal year.
14(c). DONATIONS AND DESIGNATED ENDOWMENT FUNDS
Balance Amount Investment/ Amount as at Received/ Interest Expended/ 30 June 1995 Transferred Income Transferred Schedule H K$‘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
GENERAL DONATIONS
Chow Yer Chrng Fund Lam Woo Fund Leung Yat Sing Fund
The S H. Ho Foundation Limrted Fund TVB Fund
Others
Sub-total (I) DESIGNATED FUNDS 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
Sub-total (II)
Balance as at 30 June 1995
HK$‘OOO
Amount Investment/ Amount Balance
Received/ Interest Expended/ as at
Transferred Income Transferred
-~ -- 30 June 1996
HK$‘OOO HK$‘OOO HK$‘OOO HK$‘OOO
3,500 0 0 0 3,500 3,490 0 0 0 3,490 1,993 0 0 0 1,993 10,000 0 0 7,000 3,000 1,847 1,600 0 0 3,447 391 -____ 0 0 0 391 21,221 1,600 0 7,000 15,821 5,322 -~ 0 335 265 5,392 5,035 5,107 1,863 1,863 2,978 7,659 4,165 16,426 50,418 0 0 0 1 133 6,771 9,683 0 -____ 16,588 304 944 4,395 311 816 4,602 125 0 1,988 123 119 1,868 0 114 2,997 0 4,575 9,855 551 2,964 11,435 901 3,426 13,901 2,650 13,223 56,433 4,215 348 4,669 18,761 2,860 18,831 580 788 19,977 0 0 580 2,751 25,727 3.006
L-2
25,277 1.136 24,038 2,876 28,102 17,394 0 1,164 0 18,558 320 5,855 0 0 4,339 1,836 15 -~ 568 580 r-4 93,874 48,288 4,950 42,180 104,93214(c-I). DONATIONS AND DESIGNATED ENDOWMENT RECURRENT ACCOUNTS (Cont’d)
Balance Amount Investment/ Amount Balance
as at Received/ Interest Expended/ as at
30 June 1995 Transferred Income Transferred 30 June 1996
HK$‘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
