Financial Statements for the Year Ended 30 June 2008

H@

CONTENTS

q@$#s

...

Treasurer's Report

...

@

Independent Auditor's Report

...

ge@zRs

6

- 7

Consolidated Income and Expenditure Statement

*gqj(s#$s

...

University Income and Expenditure Statement

j i j g

...

1 0 - 1 1

Consolidated Balance Sheet

...

j@!gfjijgR@%

University Balance sheet

,

...

Consolidated Statement of Changes in Fund Balances

...

k@g&@@s

16

-

17

University Statement of Changes in Fund Balances

...

&

18

-

19

Consolidated Cash Flow Statement

...

* g ~ & $ $ @ ~

20 -

21

University Cash Flow Statement

MJ$j$#SW$l

...

Notes to the Financial Statements

THE HONG KONG

UNIVERSITY

OF SCIENCE AND TECHNOLOGY

ZlBBf8

TREASURER'S REPORT

~ & B g m R

Operating Results for the Year

2007/08FRE23k4W-MB@F

B4URkS

2007108 is another fruitful year for the University. H & f ~ B @ m @ l ~ ~ w ~ @ ' k % @ f % Q @ Aftercateringfortheincreasedexpenditureforthe

381,400,000

3

10

a

EL

*

(2006107

*

B

a

_{expandkg activities, the Univemity was able to} 487,600,000Z) %#k%%f%@%@@JJ8%#

a 2 0 1 2 ~ ~ ~ m ~ ~ maintain a surplus of $381.4 million ($487.6 million s ~ m ~ ~ ~ for 2006107). This has further strengthened the University's financial position in transition to 2012 when the 4-year undergraduate (UG) system is launched.

%$@h

Consolidated Income

$F~%[email protected]&2,780,500,0002 (2006107FB Consolidated income for the year was $2,780.5 million

23

2,721,000,000

Z

) 9 $ 3 1,681,100,000

2

($2,721.1 million in 2006/07), comprising $1,68 1.1

(60.4%)&@%f#im 3 589,500,000%(21.2%)234 million (60.4%) fiom government subventions, $589.5

RB%BJkR

3 118,500,000Z(4.3%)%@J~e0 million (21.2%) fiom tuition and program fees, $1 18.5

I

h

3 171,600,000

Z

(6.2%)

#

8

3

million (4.3%) from interest and investment income,

1 4 0 ~ 0 0 0 ~ 0 0 0 X ( s ~ 0 % ) ~ ~ ~ m ~ @ ~ B 7 9 ~ 8 0 0 ~ 0 0 0

$171.6 million (6.2%) fiom donations, $140.0 million 2(2.9%)?3#@ B @ h

(5.0%) fiom auxiliary services and other income of $79.8 million (2.9%).

2007/08&EE$@h1#@fiU*B%

B

8 I e H

The increase in consolidated income in 2007108 was

f

i

'

mainly attributable to a supplementary grant fiom the

r*~8B~BBB@m*StW?BP1

'

@"*

_{University Grants Committee (UGC) for the cost of} E B m R T E B @ f i G % @ J , e \ T H % % #

living salary adjustment, a growth in tuition fees fiom the expanding self-financing education programs and activities, but partly offset by a decrease in investment and interest income due to a downturn in the investment market and lowering of bank deposit interest rates.

~~~~

Consolidated Expenditure

~ F R E % ~ ~ 3 & 2 , 4 0 1 , 2 0 0 , 0 0 0 % (2006/07%B Consolidated expenditure for the year was $2,401.2

a

2237,6009000 )

'

8

9

'

1,77494009000 % _{million ($2,237.6 million in 2006/07), comprising} ( 7 3 . 9 ~ 2 3 9 ~ ~ ~ 9 e ~ m 3 120,600,00o~(5.0%)

$1,774.4 million (73.9%) for learning and research &@BB--&I% 9 361,300,0002(15.1%)23@

BE

R

w

m

,

144,900,000 3 (6.0%)

a

a

activities, $120.6 million (5.0%) for management and

E l 0

general expenditure, $36 1.3 million (1 5.1 %) for premises and related expenses, and $144.9 million (6.0%) for other items.

~

~

~

s

~

~

The increase in consolidated expenditure was partly

~

e

~

~

~

~

~

~

f

i

~

~

~

~

g

~

~

g

f

i

e

@ due to an upward cost of living salary adjustment made

W 3

7

B$j@t%%B%Efie1b'ifBN?B%#

in line with that for the civil servants, and additional

B ~ ~ ~ B ~ S A + % ~ H ~ H ~ B ~ ~ J B O

expenses for the expanding self-financing programs, the growing research activities in the Mainland through the Fok Ying Tung Graduate School in Nansha, and the beginning of front-end spending on the 4-year UG system.

@s%#m%SLb

UGC-funded Activities

$$BBB@lS&1,656,100,000% 9

f&i@R;)Sfi

UGC grants accounted for $1,656.1 million or 98.5%

@ @98.5% 7

@%E%@f#lS

1,255,400,000 3, of government subventions. This included recurrent

* _*

_BBx@

_{~ ~ ~ @ J R ~ ~ f i}

block grant of $1,255.4 million; earmarked grants for

3 ~ ~ ~ ~ ~ ~ 2 9 2 ~ 2 0 0 9 0 0 0 3 ,

aflEH;)Sfim

housing, research, capital works and rates and S&-108,500,000% 0

government rent refunds of $292.2 million; and extra matching grants of $108.5 million.

R2008q6H30El 7 -WftBBEH#@%(~%% As at 30 June 2008, the General and Development

BRB%~RBB@)&~,oo~,~oo,ooo~,

Reserve (representing accumulated surpluses of

recurrent block grant) stood at $1,00 1.4 million.

E##I&#%

Matching Grant Scheme

~ % % D f g l % ~ @ E a @ @ J & % f ~ 7

kbfr;-@%

Under the UGC Fourth Matching Grant Scheme, the

7@280,oOO,OoO%~fSR~IE~;)Sfi@& University received donations and related matching

(2006/07~B&273,oOO,oOO?Z)

grants of some $280.0 million for the year ($273.0 million in 2006107).

l3sm'flH

Capital Projects

% E & 2 0 1 2 W 9 W ~ % d M

,

k4ffa%ft*B

With the local tertiary education system changed to a 4- * e @ - s g J m 3 B

'

@%%@#A@

_{year UG program, the University has plans to construct}

sWBMe

'

If

'

llilPBB

_{a number of additional facilities in the coming years}

# % 7 o O ~ B @ m S & % % o B B B B m B & Z

g * a i @ ~ ,

k@7n;Cfiah#%@@B&

o g

including the New Academic Building, the IAS

~ ~ ~ 7 ~ k @ f E I % i E i % ~ # % * o & % ~ @ Academic Building, extension to the existing Academic

Building, two new student hostels (total 700 places), etc.. While funding support for these facilities will mainly come from the Government, supplementary funding support are being sought from potential donors. Formal approval for each of these capital projects will be given when the relevant funding has been secured.

Outlook

Preparation work for the construction of the New Academic Building, the IAS building, and extension to

the existing Academic Building has been started. The tender for the Enterprise Resources Planning (ERP) information system is approaching the final award stage. These projects will draw on the University's private and General and Development Reserves. With the sizeable donations and matching grants raised under the UGC Matching Grant Scheme, the University has recently embarked on an investment consultancy to review the investment asset allocation strategies to enhance its long-term return. The University will continue to be prudent in managing its finance to ensure adequate funding is available to meet its strategic development needs in transition to 2012 on the one hand; and continue to maintain a healthy reserve on the other.

SIGNED

David Tak-Kei SUN Treasurer of the University 14 November 2008

I3BBrn#%S

INDEPENDENT AUDITOR'S REPORT

Deloitte.

Eal

To : The Council of The Hong Kong University of Science and Technology

We have audited the financial statements of The Hong Kong University of Science and Technology (the "University") and its subsidiaries (collectively referred to as the "Group") set out on pages 6 to 71, which comprise the consolidated and University balance sheets as at 30 June 2008, and the consolidated and University income and expenditure statements, the consolidated and University statements of changes in fund balances and the consolidated and University cash flow statements for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Council's responsibility for the financial statements

@BS@BBBMB%e3@&e@fimB%

The Council of the University is responsible for the

preparation and the true and fair presentation of these

9 6 1 %

0 #

-

financial statements in accordance with Hong Kong

SBBl~&FMZ3ilJM%RdEIm&%S

Financial Reporting Standards issued by the Hong Kong

H@MB961S$~~diHR~1@@GIB

Institute of Certified Public Accountants (the "HKICPA").

''

-

"

This responsibility includes designing, implementing and

%;BE$HmR-FfiBeBm@%Bao

maintaining internal control relevant to the preparation and the true and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

~ ! ! & l m s E

Auditor's responsibility

$ ~ ~ N B ~ E A # B B B I ! ~ ~ % % ~ ~ ! ~ ? ~ % $ H B %

Our responsibility is to express an opinion on these financial statements based on our audit and to report our opinion solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the HKICPA. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fiaud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and true and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the state of affairs of the University and the Group as at 30 June 2008 and their surplus and cash flows for the

year then ended in accordance with Hong Kong Financial Reporting Standards.

SIGNED

Deloitte Touche Tohmatsu Certified Public Accountants HONG KONG

&$rllt3%%

~39008V6B

30

EfkqE

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

mi%

2008 2007

Notes $'OOO $'OOO

#A

Income

iAtR#@J

Government Subventions

BB-%@R#M&R

Tuition, Programmes and Other Fees

*JTjJ1RBl@h

Interest and Investment Income

*%#a

Donations and Benefactions

#@JJNB

Auxiliary Services

RMBh

Other Income Expenditure

B#i3&8f%

Learning and Research

B4RliJf3-t

Instruction and Research

HB%

Library

**%MSO

Central Computing Facilities

#MB%RB

Other Academic Services

HBbB

Institutional Support

BBRd#?S%

Management and General

H % R G l R ~

Premises and Related Expenses

9*R-#?aBJN%

Student and General Education Services

#M%B

Other Activities

* * B B s % M e

&*1E5t3%S(@)

$8322008q6H30

ElkqB

CONSOLIDATED INCOME

AND

EXPENDITURE STATEMENT (Cont'd)

FOR THE

YEAR

ENDED 30

JUNE

2008

I%&

2008 2007

Notes $'OOO $lo00

%i&%HBMrnBrn@B%B

Share of Result of a Jointly Controlled Entity

%i&mB&am@B%s

Share of Result of an Associate

*+EBBtlBB

Surplus for the year before transfers

*BE

: Transfers to :

mzsi%

Restricted Funds

z€msi%

Other Funds

AtR38BtS

%S2008$6H30

HkqB

UNIVERSITY INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

I%& 2008 2007

Notes S'OOO $'OOO

@A

Income

iSIRFf35tiB

Government Subventions

4R-%#!i!fi#fIB@R

Tuition, Programmes and Other Fees

$ ! ! 1 f i f f t l @ A

Interest and Investment Income

%RM3

Donations and Benefactions

SiilibJEB

Auxiliary Services

#m@n

Other Income

lax

Expenditure

4 R f i R %

Learning and Research

%4fiR%

Instruction and Research HB@

Library

+%amsB

Central Computing Facilities

#rn%bJEB

Other Academic Services

@B3#3

Institutional Support

BBB-JBSB

Management and General

@%fiGlRH

Premises and Related Expenses

4!kB--JB%BlJEB

Student and General Education Services

#L%B

Other Activities

eBm=aB&

UNIVERSITY INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2008

2008 2007

Notes $'OOO S'OOO

maits

: Transfers to :

WEZBS

Restricted Funds

H4i!lBS

Other Funds

&W&WER@S

2008~6H30Ef

CONSOLIDATED BALANCE SHEET AS AT 30

JUNE

2008

l4iRk

2008 2007

Notes $

'

000 $

'

000

*-BE

Non-Current Assets

Property and Equipment

@EBJB EIHBBB

Held-to-Maturity Financial Assets

RlRmBHBBB

Available-for-Sale Financial Assets

W@B&Fl&%

Interest in an Associate

Reg&%@%

Interest in a Joint Venture

HBEIBB-%2ZBG%

Bank Deposits with Maturity over One Year

%#BE

Current Assets

@%aBElHBBB

Held-to-Maturity Financial Assets

GI3

Stocks

@%%%R@H%g

17

Accounts Receivable and Prepayments

EaBHBBzmH2zmG%

Bank Deposits with Original Maturity over Three Months

3!4&7jt8W3!442

Cash and Cash Equivalents

%#a%

Current Liabilities

@HE%R@3BM

Accounts Payable and Accruals

@BBS*JB%

Provision of Staff Benefits

%@a%

Deferred Income

SrnBEHE

Net Current Assets

RmB8%3lbBm

2008q6H30

El

CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30

JUNE

2008

Notes $'OOO $'OOO

Non-Current Liabilities

~IB%$JBf#

Provision of Staff Benefits

SESI

NET ASSETS

S]EEBBS&

Deferred Capital Funds

mss&

Restricted Funds

sfl!!s&

Other Funds

s&Ma

TOTAL FUNDS @33@$?2008Fll

H 14

H@S$MB%A

Approved by the Council on 14 November 2008

E!#B

3.%B&!i

kb3B

SIGNED

David T.K. SUN

Treasurer of the University

E#s?

*@a

Bi2

SIGNED Paul C.W. CHU President

E#s?

SEfP

PWaBi2(fi@)BmBBBW

SIGNED Philip S.P. WONG

Associate Vice-President for Administration and Business

fs9BER#S

2008q6R

30

El

UNIVERSITY BALANCE SHEET AS AT 30

JUNE

2008

ISfS

2008 2007

Notes $'OOO $'OOO

#%BBB

Non-Current Assets

@%R%#

Property and Equipment

@Z3jBJ

El%BB@z

Held-to-Maturity Financial Assets

PrlYaBHBBB

Available-for-Sale Financial Assets

EBRlfiXgBfiq

Investment in an Associate

EBRrnMfi8

Investments in Subsidiaries

3JB EIBB-+2ZB@%

Bank Deposits with Maturity over One Year

%BBB

Current Assets

BEBJBJ

H%BB@z

Held-to-Maturity Financial Assets

el3

Stocks

El!!R%k&aN%@

17

Accounts Receivable and Prepayments

E~JBEI~~3~J?l2ZB&R

Bank Deposits with Original Maturity over Three Months

S&BSHS&

Cash and Cash Equivalents

IaBm

Current Liabilities

ENE%&E%BM

Accounts Payable and Accruals

aRA@$JB#

Provision of Staff Benefits

% ~ R %

Deferred Income

Net Current Assets

S m B s m B m

2008q6H 30

El

UNIVERSITY BALANCE SHEET (Cont'd) AS AT 30. JUNE 2008

WE&

2008 2007 Notes $'OOO $

'

000

#%ma#

Non-Current Liabilities

@%AB$JB#

Provision of Staff Benefits

BSBB

NET ASSETS

%B%#%&

Deferred Capital Funds

I43ZS&

Restricted Funds

RNBP

Other Funds

B&Bm

TOTAL FUNDS

E&S&SrnS

CONSOLIDATED STATEMENT OF CHANGES

IN

FUND BALANCES

SE&%

bS&

Deferred Capital Funds $'OOO &

#%B&

Restricted Other Funds Funds S'OOO $'OOO S&#iBr Total Funds $'OOO 2 0 0 N 7 8 1 El Balance as at 1 July 2006 **BB%

Surplus for the year

W*B&@h

Endowment Funds received

RqAaBMBI&*B%XB*J

Unrealised gain on Available-for-Sale Financial Assets

~EfflBMB1&2*1%B*JRfiB@%@SEBBS@3%A

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure

statement

R*mE@El@b%aBa%W@IIB%Ea#

Subventions and donations received and receivable during the year for Property and Equipment

BUUbEM%IIBB%E3#%%EBX%;ryi~B@E@d

%b

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations

R@B~4%i,!i%zQ#Xsa

Change in share of statutory reserves of an Associate

mraxsa

Change in exchange reserve

B&#&

Inter-fund transfer

2007F68

30

El2Ze

Balance as at 30 June 2007

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd)

I%I!itICgO

S&

Deferred EZS& ##IS&

~~

Capital Restricted Other Total

Funds Funds Funds Funds

$'OOO S'OOO S'OOO S'OOO

2007q7H 1 El2%& Balance as at 1 July 2007

$+EBB

Surplus for the year

eaaam

Endowment Funds received

RWALtlBHBf B?kl%2B$J

Unrealised gain on Available-for-Sale Financial Assets Rm~~ALtlBHBld@E*XBB*@BE@dIs Loss realised upon disposal of Available-for-Sale Financial Assets transferred to income and expenditure

E + m E @ m @ @ N u m B M % M # @ i m % m 3 #

Subventions and donations received and receivable during the year for Property and Equipment

B H U B B ~ % B I ~ ~ % B 3 # & % H S X % ~ ~ @ B E & d

PBSi

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations

R % B & 4 & i & % Z @ # 2 S B

Change in share of statutory reserves of an Associate

E%B#ZB@

Change in exchange reserve B & @ B

Inter-fund transfer 2008+6830 EIX%&

UNIVERSITY STATEMENT OF CHANGES IN

FUND

BALANCES ag;$iiB

BE&

Deferred Capital Funds $'OOO

RSQSI

3

I

f

e

l

l

&

Restricted Other Funds Funds 5'000 $'OOO

l&aa

Total Funds $'OOO 2006&7B 1 El

2E%

Balance as at 1 July 2006

*&BE%&

Surplus for the year ea*&k%RA

Endowment Funds received

Eqi?!fflBH%BE*I%X%+J

Unrealised gain on Available-for-Sale Financial Assets

qEaBH%BB2%RBBflR@BR#@1BBIElIItdBA

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure statement

E+helIItBBlIItm#mBa%m*~B@~&3#

Subventions and donations received and receivable during the year for Property and Equipment

%HU~&H%AIW~%&SM&S%St%@EaABR3

16

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations

Inter-fimd transfer 2007&6830 82%%

UNIVERSITY STATEMENT OF CHANGES-IN FUND BALANCES (Conttd)

#ESQ

S&

Deferred BZJ&& SMS&

J&iam

Capital Restricted Other Total

Funds Funds Funds Funds

$'OOO $'OOO S'OOO S'OOO

2007&7!4 1 El 2%&

Balance as at 1 July 2007

*&BPI%

Surplus for the year

I*S&@€A

Endowment Funds received

B?qKBEB%B&%BB2P$J

Unrealised gain on Available-for-Sale Financial Assets

B?B@q#B@H%RdRd+28S##BE@€XIA

Loss realised upon disposal of Available-for-Sale Financial Assets transferred to income and expenditure

B?*~E%WE@€~%mW#%H#ms@%B~m 74,73 1 0 0 74,73 1

Subventions and donations received and receivable during the year for Property and Equipment

% (126,950) 0 0 (126,950)

$%%

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations

S&@@

Inter-fund transfer 2008&6!4 30 El k,%& Balance as at 30 June 2008

ee%mBs

BS2008$6H

30Elk$l!S

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

BB%B

Operating Activities

$+BSP@

Net Surplus for the year

)fig

Depreciation

@E#B

Bad debt written off

t t r B B % B B # t E B / (%iT;IJ)

Loss / (gain) on disposal of Property and Equipment iT;IJ,E,BBBlllth

Interest and Investment Income %EBIirJfgJ EIm%eTZ%@Bm()fiB) 1 W@

Amortisation of (discount) / premium on Held-to-Maturity Financial Assets %4ARBfiH %rnrnB&%BS%

Share of results of an Associate / a Jointly Controlled Entity 82128R%BB#S&

Transfer from Deferred Capital Fund ~#B#B$2SBrn2BB~&%B

Operating cash flow before movement in working capital @Rt@I?; 1 (WJU)

Decrease / (increase) in Stocks

~ l l l t ~ 3 ~ ~ ~ 3 a t ~ m 1

Increase in Accounts Receivable and Prepayments

EflESBE3WM2#BU

Increase in Accounts Payable and Accruals

%aa&twmI

Increase in Deferred Income iY?RWBiT;IJB#tmm /(@I?;)

Increase / (decrease) in Provision of Staff Benefits

S B % W M I a A

&&B&%Bs(a)

##&Z2008q6B

30

El

k

q

L

!

S

CONSOLIDATED CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2008

2008 2007

S'OOO S'OOO

Bf

3;Fm

Investing Activities

E%rn%B%#

Payment for purchase of Property and Equipment

Z#@GR2@BU

Increase in Bank Deposits

E%REamHM%lb

Purchase of Held-to-Maturity Financial Assets

%tBEqtEfflBMBBB2@M

Increase in Available-for-Sale Financial Assets

@BS3J#dHMBlb%%2MR@A

Proceeds from redemption of Held-to-Maturity Financial Assets

ttlBlSJ%B%#2@A

Proceeds from disposal of Property and Equipment

*J1W%tB@A

Interest and investment income received

lals3;Fmsami~

I ( ~ t t l )

Net Cash From / (Used in) Investing Activities

Bfsm

Financing Activities %$B&@h Endowments received

HHI%&%B%#2#@BB%@A

Subventions and donations received for purchase of Property and Equipment

i#Pf%!@SSMh

Net Cash from Financing Activities

S&BSHS&XS@1

Net Increase in Cash and Cash Equivalents

+l;tS&BBAS&

Cash and Cash Equivalents at the Beginning of the Year

~WB@t%S

Effect of Foreign Exchange Rate Changes

+SXS&BSHS&

*bS&l#Bb

aS2008q6H30

EIkqB

UNIVERSITY CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

f S%B

Operating Activities

**bHB&

Net Surplus for the year R A Q 4 E f l % @ 2 S E

Allowance for amounts due from subsidiaries

#mi

Depreciation

t4?3C%ljt3#2BB 1 (SjBJ)

Loss / (gain) on disposal of Property and Equipment jBJlBlft#@A

Interest and Investment Income

ssam

EIMBBES~(SS)

aa

Amortisation of (discount) / premium on Held-to-Maturity Financial Assets # B a % @ % # S &

Transfer from Deferred Capital Fund

%8S121P$X4!!BHXBS.&Z.B

Operating cash flow before movement in working capital

B B t S 9 1 (Wm)

Decrease / (increase) in Stocks E @ E % l j t a f l a @ 2 W m

Increase in Accounts Receivable and Prepayments I f l E % W E # R m t m m

Increase in Accounts Payable and Accruals

~ ~ a a 2 ~ m

Increase in Deferred Income

RBR&iBJBBtfiiit41m I(&&$)

Increase / (decrease) in Provision of Staff Benefits f S % W I W A

kbs&sBs(a)

#&Z200886H30

Elk+B

UNIVERSITY CASH FLOW STATEMENT (Cont'd)

FOR THE YEAR ENDED 30 JUNE 2008

iQ*BSib

Investing Activities

IBC%RS.llir

Payment for purchase of Property and Equipment

%MG%2*tm

Increase in Bank Deposits

%H8EBIMEIB%I$

Purchase of Held-to-Maturity Financial Assets

E I % ? V R ~ B B S l d X * B

Increase in Available-for-Sale Financial Assets

BRE9JM H % S ~ d & @ X H B & A

Proceeds from redemption of Held-to-Maturity Financial Assets

%BC%B3.llirfirfllftA

Proceeds from disposal of Property and Equipment

8J;IJOBB%&A

Interest and investment income received R S ~ B # ) r R m h 1

(%a)

Net Cash From / (Used in) Investing Activities

BBBIDll

Financing Activities

W$B&&h

Endowments received

FHN%B%%RS#2%BBB%&A

Subventions and donations received for purchase of Property and Equipment

WaSB3Lb#BmA

Net Cash from Financing Activities

BBbi$BSMB&2#@M

Net Increase in Cash and Cash Equivalents

&IX)rR&BSliaB&

Cash and Cash Equivalents at the Beginning of the Year

&bBXB&BSA)rR&

%B#%rnS

2008q6B 30

El

NOTES TO TIZE FINANCIAL STATEMENTS 30

JUNE

2008

1. PRINCIPAL ACTIVITIES

The principal activities of the University are offering programmes leading to the award of first degrees and postgraduate qualifications particularly in science, technology, engineering,

management and business studies; and

collaborating closely with government, business, industry as well as other higher education institutions to assist the economic and social development of Hong Kong. The principal activities and other particulars of the subsidiaries are set out in note 15.

The registered address and principal place of operation is Clear Water Bay, Hong Kong. The financial statements are presented in Hong Kong dollars, which is the same as the functional currency of the University.

2. PRINCIPAL ACCOUNTING POLICIES

The financial statements have been prepared on the historical cost basis except for available-for- sale financial assets which are measured at fair value. The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The principal accounting policies adopted are as follows: 2.1 Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the University and entities controlled by the University made up to 30 June each year. Control is achieved where the University has the power to govern the financial and operating policies of an entity so as to obtain benefits fiom its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income and expenditure statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the fmancial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All significant transactions and balances between group entity are eliminated on consolidation.

Investments in Subsidiaries

Investments in subsidiaries are included in the University's balance sheet at cost less any identified impairment loss.

Interest in an Associate

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The results and assets and liabilities of an associate are incorporated in the consolidated fmancial statements using the equity method of accounting. Interest in an associate is carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Group's share of the net assets of the associate, less any impairment loss.

Where a group entity transacts with an associate of the Group, profits or losses are eliminated to the extent of the Group's interest in the relevant associate.

Interest in a Joint Venture

A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control, that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.

A joint venture arrangement that involves the establishment of a separate entity in which venturers have joint control over the economic activity of the entity are referred to as a jointly controlled

entity.

The results and assets and liabilities of a jointly controlled entity are incorporated in the consolidated fmancial statements using the equity method of accounting. Interest in a jointly controlled entity is carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Group's share of the net assets of the jointly controlled entity, less any impairment loss.

Where the Group transacts with its jointly controlled entity, profits or losses are eliminated to the extent of the Group's interest in the jointly controlled entity.

2.5 Property and Equipment

Property and equipment, other than construction in progress, are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided to write off the cost of property and equipment, other than construction in progress, over their estimated useful lives and after taking into account their estimated residual value, using the straight-line method.

Construction in progress is stated at cost less any identified impairment loss and is not depreciated until completion of construction. Cost of completed construction works is transferred to appropriate categories of property, plant and equipment.

An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected to arise fiom the continued use of the asset. The gain or loss arising fi-om derecognition of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income and expenditure statement.

Expenses on property and equipment funded by government subventions and specific donations are capitalised and credited to Deferred Capital Funds. Each year, an amount equal to the depreciation charges for the respective property and equipment is transferred £tom Deferred Capital Funds and credited to the income and expenditure statement.

Financial Instruments

Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted fiom the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Eflective interest method

The effective interest method is a method of calculating the mortised cost of financial assets and financial liabilities and of allocating interest income and interest expense over the relevant period respectively. The effective interest rate is the rate that exactly discounts estimated future cash receipts and cash payments through the expected life of the respective financial assets and financial liabilities, or, where appropriate, a shorter period.

Interest income and interest expense are recognised on an effective interest basis.

2.6 (a)

ERmRWB&3EM%a

2.6(a) Accounts receivable and amounts due from

subsidiaries

Accounts receivable and amounts due from subsidiaries are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. When accounts receivable or amounts due from subsidiaries is considered uncollectible, it is written off against the allowance account. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Subsequent recoveries of amounts previously written off are credited to income and expenditure statment.

2.6 (b) Investments

Investments are recognised and derecognised on a trade date basis where the purchase or sale of an investment is under a contract which terms require delivery of the investment within the timefiame established by the market concerned, and are initially measured at fair value, plus directly attributable transaction costs.

At subsequent reporting dates, debt securities that the Group has the expressed intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in income and expenditure statement when there is objective evidence that the asset is impaired, and is measured as the difference between the investment's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment's recoverable amount can be related objectively to an event occurring after the recognition of the impairment loss, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised.

Investments other than held-to-maturity debt securities are classified as either investments held for trading or as available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, gains and losses arising from changes in fair value are included in income and expenditure statement for the period. For available-for-sale investments, gains and losses arising fi-om changes in fair value are recognised directly in fund balances, until the security is disposed of or is determined to be impaired, at which time the cumulative gains or losses previously recognised in fund balances are included in the income and expenditure statement for the period.

For available-for-sale equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured and derivatives that are linked to and must be settled by delivery such unquoted equity instruments, they are measured at cost less any identified impairment losses at each balance sheet date subsequent to initial recognition. An impairment loss is recognised in income and expenditure statement when there is objective evidence that the asset is impaired. The amount of the impairment loss is measured as the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset.

Impairment losses recognised in income and expenditure statement for equity investments classified as available-for-sale are not subsequently reversed through income and expenditure statement. Impairment losses recognised in income and expenditure statement for debt instruments classified as available-for- sale are subsequently reversed if an increase in the fair value of the instrument can be objectively related to an event occurring after the recognition of the impairment loss.

2.6 (c)

@fl@%~t7j2g%#jg

.

~jgaa~t7j21~if

2.6 (c) Accounts payable and accruals, deferred

Jii#&a@1Ik%a

income and amounts due to subsidiaries

Ii$%%RI%RJH SE@8RlW

Accounts payable and accruals, deferred income

M&ElE&%@+l@BB%B3?3

9 and amounts due to subsidiaries are initially

~@B@~~~BR@Js%%B@EB#

measured at fair value, and are subsequently

J%$PJ%

measured at mortised cost, using the effective interest rate method.

2.6 (d) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits with an original maturity of three months or less at prevailing market rate.

2.6 (e) Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured at the management's best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.

2.7

#?la

2.7 Stocks

B%BS%B%##E2GB@&$

Stocks held for resale in respect of self-financing

f~ZRBBH%EE%hEoR$

operations are valued at the lower of cost and net

HmBFR%%B

o _{realisable value. Cost is calculated using the}

weighted average method.

2.8

%Mi

2.8 Impairment

E@F-i%BE~!%lE!l@%BBEm@

At each balance sheet date, the Group reviews the

fiiiZ*@ZBSGB~B%SB&B

carrying amounts of its assets to determine

S%oZi&#RkmB&l3lS%QE

whether there is any indication that those assets

imi&E*

Hfl%%Em@fi@sB@

have suffered an impairment loss. If the

H&%om%E*ft9s@eaR@3

BWS

o recoverable amount of an asset is estimated to be

less than their carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

2.9

ItkA

2.9 Income

B&BJf

@&@ll%B%RZm&mU

Government subventions and donations

BbE#%@p?i%~%a@%%AB@

containing a condition for refund of any unspent

@&@Sy%@Bm%@@&@@E

balance are initially credited to the Deferred

@H-F*&@B

: _{Income Account when the amounts are received}

or receivable. Amounts are then transferred from the Deferred Income Account in the following manner:

in respect of the recurrent block grant: all grants received in respect of the year are transferred to the Income and expenditure account unless the accumulated surpluses from block grants exceeded the maximum limit permitted by UGC. In that event, the transfer to the Income and Expenditure Account will be reduced by any amount refundable to the government.

in respect of grants or donations intended for other expenditure: amounts equivalent to the expenditure incurred during the year are transferred to the Income and Expenditure Account.

in respect of grants or donations intended for capital expenditure: amounts incurred in relation to capital expenditure on related property and equipment are transferred to

Deferred Capital Funds Account.

Subsequently, amounts are transferred each year from the Deferred Capital Funds Account to the Income and Expenditure Account as Government Subventions or Donations & Benefactions equivalent to the depreciation charges of the related property and equipment for the year.

Endowments are credited to restricted funds in the year in which they are received. Income generated fiom endowments are recognised in the income and expenditure statement. Endowments are transferred from restricted funds and credited to the income and expenditure statement when the condition for maintenance of the principal amounts has expired or been waived by donors.

Other subventions, grants and donations received are recognised as income when received or receivable.

@W-UllbBBBB&RABR%&

Tuition fees, auxiliary services and rental income

,tlw!%&@%A@

_{are recognised when services are provided.}

HBB&IF18J4'i3.@AH@mB@B%

Interest income £ram a financial asset is accrued

e~mimf#j$%?8

aM$J$m

on a time basis, by reference to the principal

BH~BBs%Ra@m*B~@a

2#3*%ss%aEBs3BBE

outstanding and at the interest rate applicable,

iili%B2@J$

which is the rate that exactly discount the

estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

% B ~ ~ ~ % 2 J R A B ~ ~ i 3 f 0 ~ 3 t

Income fiom contract research is recognized on a

I?im%%TM@%

percentage of completion basis when the fee notes

are issued.

2.10

i!HBL&

2.10 Operating Leases 2.10 (a)

28mafimf

2.10 (a) The Group as lessor

%EiHB@fimB&&A&RlBfi

Rental income fiom operating leases is recognised

FB~~JBB@B%@%O

on a straight-line basis over the term of the

relevant lease.

2.10 @)

%Ha=%

2.10 @) The Group as lessee

@BBBR%EH2R&Mg%S@

Rentals payable under operating leases are - -

BRMRfi2*BE&3%SrnPJ

charged to income and expenditure statement on a

Bl&8J#A *BIz%BbERla

straight-line basis over the term of the relevant

fi+R53I

lease. Benefits received and receivable as an

incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.

2.11

%#aaAs

2.11 Retirement Benefits Costs

&%ZE%B##afi3N2%@9

Payments to defined contribution retirement

RER#BE%fiB2MB@9J&3

benefit plans are charged as an expense when

B 0

employees have rendered service entitling them to the contribution.

Foreign Currencies

In preparing the financial statements of the individual entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income and expenditure statement for the period in which they arise. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in the income and expenditure statement for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in fund balances. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in fund balances.

For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group's operations outside Hong Kong are translated into the presentation currency of the Group (i.e. Hong Kong dollars) at the rate of exchange prevailing at the balance sheet date, and their income and expenses are translated at the average exchange rates for the year. Exchange differences arising, if any, are recognized as a separate component of fund balances (the translation reserve). Such exchange differences are recognized in the income and expenditure statement in the period in which the foreign operation is disposed of.

2.13

EM~SJB~B2J8SBb~%@BJ

APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS

%HE*FBh8%@HTH&@%@3mfi@@%2%PIU-B3&3@(

r#B%%B%%$FIU~ ) 7%@%%B%%S !$&3E8%HE2007F7B 1 €lH&&%iBrFB%&ft

In the current year, the Group has applied, for the first time, the following new standard, amendment and interpretations ("New HKFRSs") issued by the HKICPA, which are effective for the Group's financial year beginning 1 July 2007.

B%@#@fl%l% ( E D HKAS 1 (Amendment) B % V l B % @ f l % 7 % HKFRS 7

B*B@

Capital disclosures 4 @ 1 B :

Bl

Financial instruments: Disclosures B % ( H E % % % % P f l 8 @ @ B @ ) - %@I0 91gl%B%%&@t

HK(IFR1C) - INT 10 Interim Financial Reporting and Impairment

B%(HE%B%%@RlSfl@Re) - 8 8 1 1 B%%%%%@WU%2% - %RB@B11StIB3@3

HK(IFR1C) - INT 11 HKFRS 2 - Group and Treasury Share Transactions

~~%f%H%%%~fl~*@~FEdW&@iil-FEA~AM%IW%2I%e&BPJ7ti~@%~~ff~SA%~~~~7%~

#ttrffmriirmaE

The adoption of these New HKFRSs had no material effect on how the results and financial position of the Group for the current or prior accounting periods have been prepared and presented. Accordingly, no prior period adjustment has been required.

The Group has applied the disclosure requirements under HKAS 1 (Amendment) and HKFRS 7 retrospectively. Certain information presented in prior year under the requirements of HKAS 32 has been removed and the relevant comparative information based on the requirements of HKAS 1 (Amendment) and HKFRS 7 has been presented for the first time in the current year.

*%B%%@VEHTHE@%B%*B~%E@B~PHIIS~~O

The Group has not early applied the following new and revised standards, amendments or interpretations that have been issued but are not yet effective.

~ a e a * r m % i u ( E r n HKAS 1 (Revised) B%@#Pfl%23% ( E a ) HKAS 23 (Revised) @%@3@!3@%27% ( @ 3 ) HKAS 27 (Revised) % % % s 2 g P J 1

Presentation of Financial statements'

M3BRaj.l

Borrowing costs' %+$E~*%%%A~

Consolidated and Separate Financial statements2

3 2( % @ 1 ~ @ & @ ~ B ~ ~ @ @ 2 ~ f E 1

s

( E 3 )

HKAS 32 & HKAS 1 (Amendments) Puttable Financial Instruments and Obligations Arising on ~ i ~ u i d a t i o n '

B % H J % % P m % 2 % (@XI

1~lt5c&&a@'

HKFRS 2 (Amendment) Vesting conditions and cancellations1

B l % % l % @ a % 3 % (E3-I 8BeM2

HKFRS 3 (Revised) Business combinations2

B%%%%%@a%8% HKFRS 8

8 1 5 3 1 '

2-13

mmRuBBBa%%MB%smn(a)

APPLICATION OF NEW

AND

REVISED HONG KONG FINANCIAL REPORTING STANDARDS (Cont'd)

B%(MRWB%%SRY3B@B@) - B B 1 2 1161%@~@%#~

HK(IFR1C) - INT 12 Service Concession Amngements3

@B(BRWB%%$RJ%RBBQ) - 3 B 1 3 %FdYB#B14

HK(IFR1C) - INT 13 Customer Loyalty ~ r o ~ r a m m e t

B%(BEWB%%$RYBB@B@) - B B I 4 B%@#@HY%l9% - Z%%NBB2E!$!l BBBS%!~BM82ZEfi5

Rfi3

HK(IFR1C) - INT 14 HKAS 19 - The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction3

BB(BEWB%%$H!MB@El@) - 3 B 1 5 EmS2 BBe&

HK(IFR1C) - INT IS Agreements for the Construction of Real state'

@B(BRWBsZl%$RJLBS?BQ) - 3 B 1 6 I % % B 2 B f B I P J @

HK(IFRIC) - INT 16 Hedges of a Net Investment in a Foreign

erati ti on^

'

E200951R 1 E l ~ H B B E 2 s B m I & B

Effective for accounting periods beginning on or after January 1,2009. R2009F78 1 B d H @ B E 2 F B B I & B

Effective for accounting periods beginning on or after July 1,2009. E2008FlH 1 E l S H B B E 2 F B f g l I % B

Effective for accounting periods beginning on or after January 1,2008. E2008F7H 1 E l I H B M E 2 F B l g g I * B o

Effective for accounting periods beginning on or after July 1,2008. E2008$10H 1 ElE!!?,H@aE2%BMB&%

Effective for accounting periods beginning on or before October 1,2008.

The adoption of HKFRS 3 (Revised) may affect the accounting for business combination for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. HKAS 27 (Revised) will affect the accounting treatment for changes in a parent's ownership interest in a subsidiary that do not result in a loss of control, which will be accounted for as equity transactions. The Council anticipate that the application of the other new or revised standards, amendments or interpretations will have no material impact on the results and the financial position of the Group.

3.

aB#N

GOVERNMENT SUBVENTIONS

Be

Consolidated

apfrlcum

Subventions from University Grants Committee (UGC)

! t i ! ? % % % % % 1

WEB%

Recurrent Block Grant / Supplementary Grants

BZB%

Earmarked Grants

H%

Research

EE@$1

Housing Benefits

Brn

Others

3l3S%rnB*B

Rates and Government Rent Refunds

B ~ B R ~ ~ B B B

-

naBmasmzmsm

Capital Grants and Alterations, Additions &

Improvements Block Allocation

EHB%

Matching Grants

@R6MBB@3

Grants fiom Government Agencies

M.s : Note :

~#82,626,aoO~(z007 : 81,938,000Z)#&G~~~#~& o

3.

aRMm(m)

GOVERNMENT SUBVENTIONS (Cont'd)

A 3

Universitv

%B@HB

Subventions fiom University Grants Committee (UGC)

ESB*B%

1

#MBft

Recurrent Block Grant 1 Supplementary Grants

%Z@%

Earmarked Grants

48%

Research

E@S*J

Housing Benefits

sft!I

Others

BBZrnB@%

Rates and Government Rent Rehnds

@3@%E@*&@

*

75UEBi%2$1~2%4B%

Capital Grants and Alterations, Additions &

Improvements Block Allocation

EBB%

Matching Grants

rgrmeB8maft

Grants fiom Government Agencies

,@&$ : Note :

Big82 626; 0002(z007 : 81,938,0002)#%&i7%@3#JP o

4-

@B

-

#@BSrnJIPR

TUITION,

PROGFWWUES AND

OTHER

FEES

ee

Consolidated

QBCBrnBB

UGC-Funded Programmes

@B

Tuition Fees

h@@%BEf&@R

Application and Other Fees

#QBCBB%B

Non UGC-Funded Programmes

aBCBrnfiffe

UGC-Funded Programmes

9B

Tuition Fees

A@@SRSM@B

Application and Other Fees

#QBClrn%B

Non UGC-Funded Programmes

3c3

5.

*!I4BEBB@A

INTEREST AND INVESTMENT

INCOME

Be

Consolidated

IX!2!BB@EB@A

Interest and other investment income

~REiBHBBE2EBBdP@lBEB@A

Realised gains and investment income on Available-for-Sale Financial Assets

$JB@

h

Interest income

RfR&EHBBE2EBBPIXlBEB@A

Realised gains and investment income on Available-for-Sale Financial Assets

?-@R%B&~2E4~.&A

Dividend received from an Associate

%9

6-

%RMa

DONATIONS A N D BENEFACTIONS

B%R%$Ia

Consolidated and Universitv

@ 3 @ H

Capital Projects

%@&Ems&

Scholarships

and

Bursaries

9%EH%%rn

Learning

and

Research Activities

ms

: Note :

.$B44,324,000it:(z007 : 44,433,aaO.)#&G~@%#~& o

7-

r%itirnrn%

AUXILIARY SERVICES

@*@&

Residence Halls

BBJJ6iB

Catering Services Souvenir Shop

N&%h

Rental Income

a@H&@5JX@&

Rental Contribution fkom Staff

Rff4

Others

@&@&

Residence Halls

BBJJ6iB

Catering Services

,it!&&%

Souvenir Shop

N&@A

Rental Income

R@A1@2N&

Rental Contribution fkom Staff

RM

Others 2008 2007 $

'

000 $'OOO

Be

Consolidated 54,095 50,937

A*

University 54,095 50,937

8-

BrnJIStA

OTHER INCOME

2008 2007

$loo0

$loo0

%&

Consolidated

H%*m

Contract Research

BM

Others

H%*m

Contract Research

# M

Others University 6,059 9,064

9-

m3i

EXPENDITURE

dlBH%

Learning and Research

BbRlaf%

Instruction and Research

fa%@

Library

+&S@%#

Central Computing Facilities

RMBbrnB

Other Academic Services

f J \ 3

Subtotal

E%X@

Institutional Support

BBR-BSB

Management and General

#%RRWBBJ

Premises and Related Expenses

b*R-BBBPB

Student and General Education Services BiI!lBB

Other Activities

fJ\#

Subtotal 2008$B#BJft:

Total Expenditure for Year 2008 2007%%#B*

Total Expenditure for Year 2007

RilR?ajBJ

Salaries and Benefits $'OOO

BBSlfl

Operating Expenses 5'000 (H$39.1) (Note 9.1) Depreciation $'OOO

Be

Consolidated 2008

iR2t

Total $'OOO 2007

I

2

t

Total $'OOO %MR%$JBt&SHREl+b%%#&3WK*W;t#k%122,400,0003(2007 : 116,300,0003) o

Included in Salaries and Benefits was a total sum of $122.4 million (2007: $1 16.3 million) representing the Group's contributions towards retirement benefits schemes for the respective accounting period.

9-

M3(M>

EXPENDITURE (Cont'd)

]Rimk%ifl f!?1$mil 2008 2007

Salaries and Operating

e%

#!#at

##%

Benefits Expenses Depreciation Total Total

S'OOO $'OOO $'OOO 8'000 $'OOO

(mf39.1) (Note 9.1)

kQ

University

*#Btrn

Learning and Research

aBRNaf"3;:

Instruction and Research

lam3

Library

i+YWm%# 52,404 12,367 3,202 67,973 64,281

Central Computing Facilities

?#&%%m%

42,035 3,416 777 46,228 46,224

Other Academic Services

d\M 1,192,518 432,237 48,793 1,673,548 1,584,061

Subtotal _...

aaxa

Institutional Support

BBR-&PB

Management and General

@*W'f?MRH

Premises and Related Expenses

%%E-&%BmB

44,167 64,176 686 109,029 95,400

Student and General Education Services

R@B8

Other Activities

fJ\3

Subtotal 2008FL!Z#!&%

Total Expenditure for Year 2008

2007&L!Z#!Fd5!i 1,372,779 648,968 140,643

Total Expenditure for Year 2007

I&E%N.$~k%~'f?IF~~B~&~~Wi5!iW2~~%121,3OO,OOOZ(2OO

: 115,600,000Z) o

Included in Salaries and Benefits was a total sum of $121.3 million (2007: $1 15.6 million) representing the University's contributions towards retirement benefits schemes for the respective accounting period.

9.1

eS%mfi#

ANALYSIS OF OPERATING EXPENSES

2008 2007 $I000 $'OOO

S?e

Consolidated

~ M E @ f %

Learning and Research

--EBBS

1

a@EHHBM

1

General Office 1 Teaching and Research Expenses 1 Equipment

M f

R3BErnPJ

Library Books and Periodicals

~ 3 z w ~ 4 4

[

153,851 15 1,699 Postgraduate Studentships 495,405 453,549

'tSBE--1BEtS;P85

Management and General

&@rnl&

Auditors' Remuneration

H%PiPH

Financial Charges

-$w%R

General Insurance

-%l!&%BBJ

l3.ftr5

General Office Expenses 1 Equipment

EBWM

9.1

BS3rnB#(rn)

ANALYSIS OF OPERATING EXPENSES (Cont'd)

ee

Consolidated

@*aemmf

Premises and Related Expenses

-128BfiSBH

1 SQ

General Office Expenses 1 Equipment

B%RR

Property Insurance

Z@&%B

Rates and Government Rent

%BBRX

I fJ@!!I@

Repair and Maintenance I Minor Works

&%zB%*B%&R%3a

Utilities, Cleaning and Security Services Expenses

8!kB--%@B11

Student and General Education Services

-@BfiSBH

1 %Q

General Office Expenses I Equipment

t*R%&%HRB

Medical and Dental Care for Students

@*

Residence Halls

ft9f

&HI942

Scholarships and Bursary

@&%B

Student Activities

RBSB