Financial Statements for the Year Ended 30 June 1999

Hiis

CONTENTS

EJig~~...

Treasurer’s Report

@g&g@~gg...*...

Auditors’ Report

g@?gfgg@...

Balance Sheet

q!r~$gg...

Income and Expenditure Statement

ig&~~~~...

Cash Flow Statement

Jwiiw$spTrq~

Notes to the Financial Statements

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

@&-G&$E...

Basis of Accounting

$!@g#ifg~...

Significant Accounting Policies

bang...

Fixed Assets

@F...

Buildings

@&lI~...

Construction-in-progress

i@fi~GqFfiRgg...

Loans to Affiliated Companies

ggf...

Investments

gggJg$jz$...

Current Assets

$pjgJ@.@...

Current Liabilities

jggjggf...

Long-term Liabilities

fg$gj&...,

. . . .

Building Fund

gfliJljj~ig$gg+...

Capital Fund

-j&g&...,...,

General Funds

1

5

7

8

9

11

11

14

15

16

16

17

18

18

19

19

20

20

1 .“_ - - - ___--_- -.- - -.- -.. -. .- .__.__ -.- . _._ ---__ -“--- .

14.

15.

16.

17.

18.

19.

!mis+...

Specific Funds

ggm$jgj$&...

Reserves and Provisions

j$j@!i!Bg~gE@#gg$~gE...

UGC Triennium Equalization Account

A~&~~gEjiJ~~@&!~$$G$

. . . .

UGC Recurrent Grant

&Jfi&g&...

Fee Income

qc&q&~...

Specific Income and Expenditure

20.-25. -&M-j7:

26.

27.

28.

General Expenditure

f=ji!g...,...

Administration

rep...,....,...

Academic

~&g?g$...

Maintenance of Premises

-j&i&yq...

General Education

~*gs@j7jt@jq~jg...

Student Facilities and Amenities

g#J...

Miscellaneous

?&&g&g~~:g@zg&~~A~~~.

. . . .

Reconciliation of Funding Surplus to Net Cash Inflow from

University Operations

g3*#3#&...

Capital Commitments

~@g&~*

. . . .

Comparative Figures

j$gi~@j~qcJ~~;...

Information on University Companies

21

23

24

25

25

26

27

27

29

29

30

30

31

32

32

33

ii

,-,- -.--I-. -- --

..- _-_- .-_. ._._.

THE HONG KONG UNIVERSITY

OF SCIENCE AND TECHNOLOGY

FINANCIAL

STATEMENTS

FOR THE YEAR ENDED 30 JUNE 1999

Fl@%E

TREASURER’S

REPORT

The year 1998199 was the first year of the triennium

1998-2001 where Government mandated a 10% unit-cost

cut in the triennial

funding.

Facing the financial

constraints, the University has implemented a series of

cost containment measures. These include, interalia,

non-academic staff reduction through natural attrition,

large-scale reduction of non-salary expenditure as well as

refinancing of the bank loans for the senior staff quarters.

The financial results of 1998/99 reflected the University’s

initial success. Any surplus after transfer to reserves

will

be carried forward to strengthen its financial

positions to deal with any unanticipated

financial

requirements as the triennial funding cut deepens.

General Income and Expenditure

General income was $1,962 million (1997/98: $1,942

million).

The University received from the University

Grants Committee (WC):

a block grant of $1,436

million, a reserved supplementary grant amounting to

$72 million to cover additional costs arising from salary

revisions in line with the annual salary adjustments

approved for the Civil Service, and $47 million for the

reimbursement of property rates and rents paid by the

University.

The remainder of general income included

$295 million of tuition fees and others amounting to $112

million.

General expenditure

was $1,715 million

(1997/98:

$1,894 million).

The more-than-9% drop in the

expenditure was mainly due to the result of the cost

containment measures, and, partly due to a change in the

funding arrangement for staff housing benefits.

During

the year, the Government introduced a Home Financing

Scheme (HFS) for the staff members of the UGC-funded

institutions with an intention to save housing expenditure

in the long run. Consequent to the implementation of

the HFS, costs of staff housing benefits are no longer

paid out of the block grant but charged against separate

earmarked housing grants.

Out of the $1,7 15 million general expenditure, $144

million or 8.4% was for Administration, $1,126 million

or 65.6% for Academic Departments and Academic

Support Centers, $286 million or 16.6% for Maintenance

of Premises,

and

$159 million or 9.4% for others.

After transfers to reserves / provisions, the general

income over the general expenditure for the year showed

a surplus of $170 million.

In accordance with the

general guidelines laid down by the UGC, this surplus

will be carried forward to and utilised in the remaining

years of the current triennium.

lliEzt@a

Earmarked Grants

~‘S%B&ftR@$@ti%

183,0~,~

Zm,EZ@Z

The University received from the UGC a total of $183

(1997/98 + j$$ fT$ 160,000,000 Z) 0 g + 9

million (1997198: $160 million) of earmarked grants.

103400,000 ZH#@$R~&$YJ 9 52,000,OOO jZE$

Out of which, $103 million was earmarked for research

$!F@WJB@EBE$G$U~%% 7 ?iW&%

28,000,OOO

activities, $52 million was new provisions earmarked for

i’tFFl4W$il~EZ~~%

’ ~f~~B~~3~ll

* i??~~

staff housing benefits, and the remainder of $28 million

Fmm%i%4~T~B4~~~%%

o

was for other earmarked activities including language

enhancement, teaching development and year 2000

compliance, etc..

Capital Grants

&SfrR@#@?~~

55,000,000

?C!XJM!$#@~

A total of $55 million (1997198: $75 million) in the form

(1997/98

@$$+E$

75,000,OOO

Z> 0 s?$$g=&gH

of capital grants was received from the UGC.

These

$$@&-@$$.&~~~~H~~~~B~~

9 &

capital grants were for the acquisition of basic teaching

fi?lsf!~~B~&

’

!lRz3-&4~EE~~~~

O

and specialist equipment and facilities, the construction

of laboratories and facilities and the acquisition of

general furniture and equipment.

Donations, Designated Funds and Other Operating

Funds

wR$m%mmz~&m~A

’ Lnbm>WE

Income from donations and designated funds together

R 4% h $k 2%

168,000,~

n ’ $2 SE % Qii ml

with interest and investment income generated for the

70,000,OOO n;( 1997/98 +@g 98,000,OOO n;) 0

year increased by $70 million to $168 million (1997/98:

BzvlEE%% $ EwzNk%~m~R~Wf~

El md

$98 mi’lion)*

The increase mainly came from donations

wm&ab9@%#%3rnw~QE

o 2+Y!atmrft

’

for the construction of the HKUST Annex and the

36%mfi@$@jB ~39%~~!$$~@@~~~~ 25%

continuous growth in research grants from other funding

FFwFB%& ’ ls!7~&WS~W%~&~~

o

agencies. Out of the total income, 36% was for capital

projects, 39% for research activities, and the remaining

25% for scholarships, bursaries and student loan funds,

and other purposes.

k~~~~‘~~~~~~~~~~~~~#~~

A total of $125 million of other operating income was

B JB! A E$ 125,000,000 Z (1997/98 q E$ E$

generated from self-financing

activities and research

102,000,000 n) 0

contracts ( 1997/98: $102 million).

J??

1999

@ 6 fl 30 El f ~~~ * EGZ&&E?Z#!

As at 30 June 1999, the total fund balance of donations,

~~.GM#I@?~~~

378,000,OOO

Z(1997198 P.

designated funds and other operating funds stood at $378

gg 329,000,000 3) O

million (1997/98: $329 million).

EE%i%H

Building Projects

Construction of the Annex was completed in February

1999.

This six-storey extension of the Academic

Complex makes available an additional gross floor area

of approximately 6,000 square meters with construction

cost entirely funded by private sources.

The new

structure provides much needed space for a number of

programs which form an essential part of the University’s

service to the community of Hong Kong and the region.

These programs include applied R&D,

technology

transfer, executive education, China collaboration, and

international cooperation.

k~~~~~-~~~~~~~~‘#~~~~

z ’ 73Etti

~ooo

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O

The construction of a covered swimming pool together

with a coastal research laboratory is under way.

The

project is scheduled for completion before the end of year

2000.

@@f!

527

@l%%@X&-?J@%t%%!%%W$$ 1 3

An application for full approval of the construction of

4l%lw o

527 additional student residences has been submitted to

the UGC.

Reserves

fi 1999 !+ 6 Jj 30 El 1 fi#@@%% 490,000,000

As at 30 June 1999, the reserves stood at $490 million

n(lgg7/gg +~s

411,~,~

n) 0 AS&&M

(1997198: $411 million).

The University will continue

finS$~~l--@~**A%~&Btl8~E

o

to build up the reserves to maintain the financial stability

in future years.

Year 2000 Compliance

?%BIf-%%lG

BLBB@JBB!.ES&:A 7 @@$I&

Effort to tackle the Y2K issues shifted into high gear

,@ * &&~~Bl!l~~WiE

’ ~!&B!&&@@,@

during the year culminating in our declaration towards

~~~~~~~~~~~~~~~~~~~~~7

the end of the financial year that all our mission-critical

+9&4$~~

0 $$$!~:~+~~y~~~~@~

systems were tested, rectified and confirmed to be Y2K

4~~J\~~~~~W~~~~~~~t~~~~~~~~~~~

compliant.

The University’s

Y2K Task Force is

lml!l~ ’ LGurmwlR$rJmB~T@

o

currently

focussing on finalizing

and testing our

contingency plans to ensure a smooth transition to Year

2000.

m?!!

Outlook

The University will not be complacent with its initial

success coping with the funding cut. While expenditure

will continue to be closely monitored for the current

triennium, the University will not lose sight of the next

200 l-04 triennium pondering a possible further funding

cut.

Administrative

processes will continue to be

reviewed and streamlined.

Redundant procedures,

avoidable paperwork and non-value-add tasks will be

minimized to render work more efficient, more effective

and more enjoyable for all.

The University will continue to proactively manage its

resource allocation to make sure its core mission of

excellence in teaching, research and community service

is not compromised.

SIGNED

Dr. LAU Wah-sum, JP

Treasurer of the University,

11 November 1999

t7El!krn%EB

AUDITORS’

REPORT

DeloitteTouche

Tohmatsu

a

Certified Public Accountanta

26th Floor. Wino On Centre 111 Connaught k&ad Central Hong Kong

To: The Council of the Hong Kong University of

Science and Technology

We have audited the financial statements on pages 7

to 32 which have been prepared in accordance with

accounting principles generally accepted in Hong

Kong.

Respective Responsibilities of the Council and

Auditors

~@E@~~~~~~~~fi~~~~%

The Council are responsible for the preparation of

$-lTi%~@~%~%~%%~R~

fkH-333

f mancial statements which give a true and fair view.

t&~~\WR~~Heam@~t&%

O

In preparing financial statements which give a true

and fair view, it is fundamental that appropriate

accounting

policies

are selected and applied

consistently.

$?? @J

wI!EE:jFR& $-??%$%Ll“F@J ~$6 We are engaged to form an independent opinion,

R * !!%%%l$%%%%@%~~~~

’ %

based on our audit, on those statements and to report

El sal?EtE&I~ti:eB~ D

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

1999 and of its excess of income over expenditure

and cash flows for the year then ended.

SIGNED

Deloitte Touche Tohmatsu

Certified Public Accountants

Hong Kong

11 November 1999

lisbz%BE

Fixed Assets

Ilfiq&3;w3

Loans to Affiliated Companies #a

Investments

ifisi?ftll&

Current Assets

9%: %%@a

Less: Current Liabilities

%tiBEM

Net Current Assets

Em%m

Long-term Liabilities

#!itssm

TOTAL NET ASSETS

seltm#s

1999+68

30 H

BALANCE

SHEET

AS AT 30 JUNE 1999

J!fm

m

3 1999 $‘ooo 3,731,615 3,789,603 6 0 30 7 581,533 528,655 8 912,870 735,230 9 330,329 381,647 10 582,541 353,583 4,895,689 4,671,871 (403,000) (437,500) 4,492,689 4,234,37 I

ti4ftp8&

Building Fund 2%luzlBRdH~ Capital Fund +I!?~* General Funds

.!%a%&

Specific Funds H;tfQBQ43&

Reserves and Provisions

k$&BRI#%E@B3~B%

UGC Triennium Equalization Account B&am TOTAL FUNDS 11 12 13 14 15 16 3,119,365 167,161 119,486 425,762 490,361 170,554 4,492,689 3,095,782 224,935 99,587 403,149 410,918 0 4,234,371 t-a&m 1999% 11 H 11 El d%fsm$%‘9[riS

Approved by the Council on 11 November 1999

ES3

iwE+%

$iEFElE

SIGNED

Dr LAU Wah-sum Treasurer of the University

ES%

&%&33

@b!s

SIGNED

Professor Chia-Wei WOO President

b 0

The accompanying notes are an integral part

of

thefinancial statements.

7

LT!3%%7

S@FB

!38BBBS

SIGNED Philip S. P. WONG Director of Finance _ II-.__X.I_- --^., --- ___- , - , _. 1_ . . - _-__,-.” - - . . . . - - - __-- . - - --

i&S1999~6EJ30F%l?F~

INCOME

AND EXPENDITURE

STATEMENT

FOR THE YEAR ENDED 30 JUNE 1999

--@&A

GENERAL INCOME

+fGwR Fee Income luiGwBaqA

Interest and Investment Income $%aRtimti&

Rental Recovery from Staff XfwkA Miscellaneous Income

%FErlkA

SPECIFIC INCOME 4mas TOTAL INCOME -@Mft GENERAL EXPENDITURE

mk

Administration w# Academic tIcsH%s Maintenance of Premises -tialtw General Education 3w%~EB~IJ~~~

Student Facilities and Amenities #it!4

Miscellaneous

g:

_WEGA#RM

Less : Overhead Recovered

SPECIFIC EXPENDITURE WZM%

TOTAL EXPENDITURE &hlaBRMzaa

EXCESS OF TOTAL INCOME OVER TOTAL EXPENDITURE 4@%4EA&&RWMsRtfzdE

Transferred to the UGC Holding Account $wiEEIQIi%l~&

Transferred to Reserves/Provisions Transferred to General Funds Transferred to Specific Funds ~~~.kf~~;$C~~iW~~~~~;t~~l(~~)

SURPLUS/(DEFICIT) TRANSFERRED TO THE UGC

TRIENNIUM EQUALIZATION ACCOUNT

l/%x&KM&B&m -I%% o

The accompanying notes are an integral part

of

thefinancial statements. 8 Jgj-jI& pio& 17 18 19 20 144,237 142.109 21 1,125.989 l,l25,952 22 286,091 297,592 23 13,742 19,353 24 25 19 38,297 38,419 106,904 270,960 1,715,260 1,894,385 754 892 1,714,506 1.893.493 481,123 309,258 1999 1998 $‘ooo $‘ooo 1,555,627 298,092 84,452 17,097 6,873 1.962.141 1,942,2 11 531.130 435,609 2,493,27 1 2,371,820 2,195,629 2.202.75 1 297,642 175,069 (8,121) (13,636) (76,458) (141,638) (26,021) (12,635) (16,488) (108,075) 170,554 (100,915) ~_ .____._^ , , ” -,___ .._..._ - . . . . I .~ --_- . - I , - - -.-- - . _ _. .

~~1999~6H30HSFB

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 J-UNE 1999

NET CASH INFLOW FROM UNIVERSITY OPERATIONS

NET CAPITAL INFLOW FROM DESIGNATED ENDOWMENTS

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

iFr1,e\BfGBRA

Interest and Investment Income

%4i%X~32jFrJde~~ti

Bank Loan Interest Paid

~~~%WI%L~~~~~~~A

NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND

SERVICING OF FINANCE

tJ!m?m

INVESTING ACTIVITIES

t”?Z@lH ~~~rl~2W~ilT3:(~~U~~~~

(Increase)/Decrease in Bank Deposits Maturing after Three Months

!?3l%zRB2~~

Payments to Acquire Fixed Assets

Yif%#ftlGd~R~2~h

Receipts from Sales of Other Fixed Assets

eis3isWR3BG~

Investments in Wholly-owned Subsidiaries

!l$EC%9Bt3IR

Payments to Acquire Investments

Repayment of Loans from Affiliated Companies

t!im%WB3&%ti

(492,396) (67,462)

NET CASH OUTFLOW FROM INVESTING ACTIVITIES

NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING

m

1999 1998 m $looo giiGJ 26 379,383 300,947 3 33 72,165 48,403 (273,038) (166,568) 58 (9,000) (43,878) 30 88,252 (121,604) 28 0 (34,138) 0 9

BEiX1999~6~30Elk~B

CASH FLOW STATEMENT

(Cont’d)

FOR THE YEAR ENDED 30 JUNE 1999

i3.k3%

FINANCING

iiiQ%R!BQfTR3

Draw Down on Bank Loans

B%it%wx~

Repayment of Bank Loans

NET CASH OUTFLOW FROM FINANCING

z!23mwJ~&~(~~)/mfJa

(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS BROUGHT FORWARD

CASH AND CASH EQUIVALENTS CARRIED FORWARD

ANALYSIS OF THE BALANCES OF CASH AND CASH EQUIVALENTS

lE3slH rn~rJ3Sf~~E~~~$A

Bank Deposits Maturing within Three Months

~Bi!i%mBR~#~B

Other Bank and Cash Balances

The accompanying notes are an integral part

of

the financial statements.

(69,345) 207,88 I 460,545 529,890 466,133 538,840 (5,588) (8,950) 460,545 529,890 10 --_.-- --- -,,-,.- ~~ -.. ._“l__l__ -..--_- -____- --.. -.. . “--

lia!&iasmi

1999+6H30EJ

NOTES TO THE FINANCIAL

STATEMENTS

30 JUNE 1999

BASIS OF ACCOUNTING

The University

has adopted fund accounting under

which funds are classified according to their nature or

specified objectives to ensure observance, where

appropriate, of guidelines and restrictions placed on the

use of available resources. All financial transactions

are accrued in separate fund accounts according to such

classifications.

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.

SIGNIFICANT

ACCOUNTING

POLICIES

Subsidiary Companies

The investment in subsidiary companies is stated at cost

less provision where there has been a permanent

diminution in the underlying value of the investment.

No consolidated financial statements are prepared in

view of their dissimilar activities and immateriality of

the amounts involved.

UGC Grants

UGC Grants consist mainly of block grants, earmarked

grants, reserved supplementary

grants for salary

revisions and capital grants. All UGC Grants are

accounted for on an accrual basis.

Fees Income

Fees income including tuition fees are recognized on an

accrual basis. Unearned tuition fees are treated as

income received in advance.

11

2.4

2.5

2.6

2.7

2.8

Interest and Investment Income

Interest and dividends received/receivable

are dealt

with in the Income and Expenditure Statement. Income

from fixed

interest investments

and deposits is

accounted for on an accrual basis. Dividend income is

accounted for when declared.

Donations, Donated Services and In-kind

Contributions

Donations are accounted for on an accrual 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.

Expenditure

Approved expenditure items include purchase orders

placed with suppliers for goods or services not yet

received at the balance sheet date.

Library Books and Periodicals

Library books and periodicals are written off against the

related funds on acquisition.

Buildings and Construction-in-progress

Construction-in-progress

is first charged against the

respective fund accounts, and then capitalised at cost

against the Building Fund.

Upon completion, the

buildings are depreciated on a straight-line basis over

their estimated useful lives at 2% per annum.

The campus site located in 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.

2.13

2.9

Other Fixed Assets

The costs of other fixed assets are first charged against

the respective fund accounts in the year of expenditure

and then capitalised against the Capital Fund on a

payment basis. Other fixed assets are depreciated on a

straight-line basis over their estimated useful lives at

the following rates :-

Motor vehicles

Computing, audio/visual,

maintenance, teaching and

sports equipment

25% per annum

Furniture and other equipment

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.

2.10 Investments

Listed and unlisted investments are stated at cost less

provision where there has been a permanent diminution

in the underlying value of the investment.

2.11 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 on

acquisition.

2.12 Taxation

The University is exempted from payment of tax by

virtue of Section 88 of the Inland Revenue Ordinance.

2.13 Cash Equivalents

25% per annum

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.

13

3.

li!iiZSE

FIXED ASSETS

x&mxrBE

Other Fixed Assets

Computing,

Audio/Visual, QIiFww

Maintenance, B

Teaching and Furniture

3zE?Kca

zzlzm

Construction- Motor Buildinrrs $‘ooo in-progress $‘ooo dvEl3) (Note 5) Vehicles $‘ooo (IREE4) (Note 4) sports Ecluiement $‘ooo and Other EquiDment $‘ooo 7 - 3,963,662 50,293 4,834 1,039,359 3 12,425 5.370.573 339 80,665 96,914 0 374 0 0 (1501 80,59 1 5,078 167,045 0 0 (11,779’ 0 96,914 (96,914 0 (96,914 a (6,535: 1 (18,464

JZ*

COST fi1998%683OH As at 30 June 1998 i?g$3mlE Additions/Adjustments @?#&37Z@It-5i

Transfers from Construction- in-progress Transfers to Buildings Ll-sml&~ Disposals/Written Off fi1999+6R3OE1 As at 30 June 1999 DEPRECIATION 1??1998+6j?i3OEl As at 30 June 1998 *+NSW-BZfiB Charged for the Year

Disposals/Written Off fj$1999~6H3OB As at 30 June 1999

NET BOOK VALUE

E1999$6H3OB As at 30 June 1999 Rl998q-68 3OEl As at 30 June 1998 5,519,156 1,580,970 224,654 1 i (18,083: 4,060,9 15 34,044 5,058 1,108,171 310,968 449,287 81,218 0 4,517 313 (150 857,707 121,877 269,459 2 1,246 (6,398 530,505 0 4,680 968,049 284,307 1,787,541 3,530,410 34,044 378 140,122 26,661 3,731,615 3,514,375 50,293 317 181,652 42,966 3.789.603 14

4. Bs

BUILDINGS

Campus

lift%!4

?ze#mR@

%!%%2%

&##a

iem%

2il!!@m

Graduate The Hong Kong

Senior Staff Residence Jockey Club

Quarters and $lCk#fi~ Biotechnology

Bt*

COST $?1998~6H3OEl As at 30 June 1998 3,308,019 425,720 %s? Additions $!&mxE@I@

Transfers from Construction- in-progress I??l99986H3OEl As at 30 June 1999 3,308,019 426,003 #m DEPRECIATION

r

Rl998+6fl3OEI As at 30 June 1998 _I 418,229 University HKUST

Phases I and II Phases IIA and IIB Center Annex

$‘ooo $‘ooo $‘ooo

t%%i?b) (PEl%Yc~

$‘ooo

iPE%a)

(Note a)

@KZb)

(Note b) (Note b) (Note c)

*%&SEMB;FttiB

Charged for the Year fil999+6R3OB As at 30 June 1999 484,389 30,441 13,736 1,724 215 530,505 283 229,979 86,189 10,725 4,060,9 15 Research Institute $‘ooo (Tm.9.. (Note c)

m

$‘ooo

(BSd)

(Note d) 0 3,963,662 0 339 10,725 96.914 J,

AHM

NET BOOK VALUE E1999+6H3OB As at 30 June 1999 2,823,630 395,562 216,243 84,465 10,510 3,530,410 El998~6~3OEl As at 30 June 1998 2,889,790 403,798 220,787 0 0 3,5 14,375 @f,,: Notes :

a. &HBSZB* J &SS*s%@ @%Td WB%&R (40%) _Ttl;f 0

The construction cost

of

the Campus was paid by the Hong Kong Jockey Club (60%) and the Hong Kong Government (40%). b. ,&WQI#&#@##k@ ’ L&& ’ [email protected]&+~L~ 0

With the approval

of

the UGC, the University obtained bank loan facilities to finance the construction

of

additional senior staff quarters and additional graduate residences together with a University Center (GRUC).

c. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ *

The construction

of

the HKUST Annex and the Hong Kong Jockey Club Biotechnology Research Institute were primarily financed by donations and the UniversiQ Development Fund.

d. #3=&5SiM&M?S&. &?fiff~~~~E3ff~B~~Y 0

The net book value

of

buildings was represented and financed by the Building Fund, Bank Loans and Accounts Payable.

15

5. &BIB

CONSTRUCTION-IN-PROGRESS

?!EB*lt

Srn%W

!HlJ~E

?JsRw

laE&z ?!Fefsm liiL?mE

The Hong Kong Indoor Environ-

Jockey Club Swimming Student mentaV &Y&Z&+ BBx

&k$!ffaig Biotechnology PooVCoastal Indoor Geotechnical Additional m

HKUST Annex $‘ooo

Research Research sports Research

Institute Laboratorv Facilities Facility

$‘ooo $‘ooo $‘ooo $‘ooo

Student Amphi- m

Residences theater Total

$‘ooo

$‘ooo

$‘ooo

0 110 0 110

BE*

COST Ij?l998+6fl308 As at 30 June 1998 %waE Additions/ Adjustments $!iMmf#tZ Transfers to Buildings 5?1999~6fl3OEl As at 30 June 1999 - 3,787 247 3,831 21,671 0 6,938 4,126 (567) 2,992 1,634 (10,725: 0 0 0 0 0 0 4,373 3,264 24,663 1,634 50,293 80,665 (96,914; 34,044 -- ---

6.

ltiVWSJ%3c~3

LOANS TO AFFILIATED COMPANIES

SEEBG5pBfi4

Varsity Resources Corporation Limited

1999 1998

$‘ooo $‘ooo

0 30

7. te32

INVESTMENTS

l!BUEB%f~t~*~SE*~~~~a~

Listed Investments with Investment Managers at Cost (Note a)

%k*@BE*:l

Unlisted Investments at Cost ~~~‘W~~XB~~~~~~~~~(~~~a)

Bonds and Cash/Bank Deposits with Investment Managers (Note a)

k%WGSlH+JG

1&~@5OO%Z,tEti

Joint Universities Computer Centre Limited 1 share of HK$500

160,789 123,623

411,743

1

i!#!%lE~~PB’i;~(~~b) 5O,oooE@38QE!ElRZZ~?~ 0

Varsity Resources Corporation Limited (Note b) 50,000 shares of HK$l each

404,981

1

50

R*SNWfi~;tBSE*@

Investment in Wholly-owned Subsidiaries at Cost

7siwAtiE~PB~~

2lESWSiill%Z~~~ti

HKUST Properties Limited 2 shares of HK$l each

0 0

B%*4kRRHBGBz4

HKUST RandD Corporation Limited

mg: Notes : 9,000,002EW%3EiiQ 1%5%%%3 9WO 9,000,002 shares of HK$l each 581,533 0 528,655 a. ff~~~~t~~~m~~~~m~~~~~583,790,~~ (1998 : ~%544,86tWXZ) 0

The market value of listed and unlisted investments with investment managers as at 30 June 1999 was HK$.583.79 million (1998 : HK$544.86 million).

b. BME@SEAxfl$~E#S 7 L~~~~fi~HB@ * 4!i%WGWTCMH 0

The Varsity Resources Corporation Ltd. has ceased business and is undergoing a dissolution process. Full provision for

diminution in value of the investment has been made.

c. A~~~~L1~~~~~~~33~o

Particulars of the University companies are set out in page 33. d. X~2~~~~R~ :

The net projits of the subsidiaries not consolidated but attributable to the University were:

B&M.*

d?i!aEs

Previous Years 1999 $‘ooo Since Acuuisition $‘ooo

Dealt with in the Financial Statements of the University

Not dealt with in the Financial Statements of the University

0 0

8.

i7BflbBE

CURRENT ASSETS

stocks

Prepavments and Deposits Accounts Receivable

Bank and Cash Balances G!m%

Bank Deposits

ti3aH l%mlSgj

Maturing within Three Months JE3im W!JB

Maturing after Three Months

?ut!L!miB~~~Gs

Other Bank and Cash Balances

#i!EH-

TOTAL

9. %a&#

CURRENT LIABILITIES

Accounts Pavable and Accruals ?%miw(-*~F!!Bgl)

Bank Loans (Due Within One Year) 2z3f&*(--$mF!lB)

Gratuities (Due Within One Year)

Backpayments in relation to Salary Revisions 2afM?mr@~El~-t~~

Other Accounts Payable and Accruals

UGC Holding Account %Wfl~W~~~X~B

Excess from Reserved Supplementary Grants for Salary Revisions Excess from Earmarked Grants

7+ai%?EW%B@~@3

Reserved Supplementary Grants for Salary Revisions

p!J 1998 $‘ooo $‘ooo 703 1,022 4,250 21,953 9,837 42,100 691,221 (8,950) 885,964 682,27 1 912,870 735,230 28,500 114,328 16,957 224.128 320,87 1 383,913 9,458 (2,266) 330,329 381,647 18

10. EfgilBB

LONG-TERM LIABILITIES

11.

?if4mm(~~:)

Bank Loans (Note) 7818;t&%% Balance as at 1 July IfYlm@HBtR2

Loans Drawn during the Year E*mRB

Repayment during the Year

j!z+twG!lB2R~~@E%m~@

Amounts Repayable within One Year Transferred to Current Liabilities 6830Eit#.S-% Balance as at 30 June 466,000 0 (28,500) 437,500 (34,500) 403.000 466,000 (28,500) 437,500

~~1995~~~~-~~~~~~~~~~~~~~~~~~~ 0 $?199JW/73OH J k3H~@RBB&RBH@&RR&f# ’ I&& l!iFkt@~~~L~~~#~B* ’ aaM/le o ~~~~~~~~~~~~~~~~~~~~~~~~ff~~~~~~~ 0

The Universiry signed two loan agreements with the Hang Seng Bank Limited for the consrrucrion of the senior staff quarters Phase IIA and Phase IIB. in 1994 and 1995 respectively, and a loan agreement with The Bank of East Asia, Limited for rhe

Graduate Residence together with a University Center in 1995. On 30 June 1998, the two bank loans for the senior staff quarters were merged and refinanced by rhe Hang Seng Bank Limited for a g-year period. Under the new agreement, the University has to place with the Hang Seng Bank Limited an amount of deposit equivalent to the outstanding loan amount. Hfiff.2BHMBM:

The final repayment dates of the bank loans are : lii%Lw~-~mA~d 2@%+6~3OD Hang Seng Bank Limited 30 June 2006

iF@?.z@&-GmLx~ 2m7*3jY'3I8

The Bank of East Asia, Limited 31 March 2007

t$!wim

BUILDING FUND

1998$6fl3OEl;t&%

Balance as at 30 June 1998

%BMHRB

Additions/Depreciation Written Off %a

Additions

#lkGi%m

Depreciation Written Off 1999~6H30EIZ&% Balance as at 30 June 1999 3,095,782 104,801 (81,218) 3,119,365 19 --- - ----.--- ,l-. -.-- --- .---. .-- _--- - .-..

12.

iEulmlxfSE~&

CAPITAL FUND

1998%6fl3082%% Balance as at 30 June 1998

s’ooo

224,935

%BlMHtfiB

Additions/Depreciation Written Off %E

Additions

67,579 #lefwiB

Depreciation Written Off

(125,353)

1999~6H3OEl~@~

Balance as at 30 June 1999

167,161

~I~I~~~#~~~~~~~~~~#~~~~:

The balance of the Capita6 Fund as at 30 June 1999, representing the net book value of otherfired assets, wasfunded by:

7F%7%mB

Accumulated Cost

&!!tBma -

Government Non-Government _iiwt

Funds m &&l

$‘ooo $‘ooo $‘ooo

1,274,088 150,109 1.424.197

&t :Tf%%FB

Less: Accumulated Depreciation

1.136.097 120,939 1,257,036 f9999683ORic%&? Balance as at 30 June 1999 137,991 29.170 167,161 +ijTjgf: Note : ~~~~~~~~~~~~~9,558,~~~~~~~~~~~~~~~~#~~~~~~~~~0

The balance of Non-Government Funds included HK$9,558,000 being net book value of other fied assets conferred by the HKUST Educational Trust.

13. -&B&

GENERAL FUNDS

-H#%

General Donations 24,258 Amount Transferred In/Out $‘ooo 3,000 k%BR~&

University Development Fund

71,848 (10,756)

Income Expenditure 1999

$‘ooo $‘ooo $‘ooo

7,000 0 34,258

18,960 143 79,909

1,478 1,274 5,319

Departmental Discretionary Fund

1% 99,587 (6,122) 27,438 1,417 119,486

TOTAL

20

14. !wiia%

SPECIFIC FUNDS

Earmarked Grants

t3&wJW@ - ha@Ea~x@2~~@%

Alterations, Additions & Improvements Block Allocation iifvs~

Research Grants

Language Enhancement Grant

&~~~@3:(W~S2)

Teaching Development Grant (Note 2) JFf%Bmst@!

Home Financing Scheme li5%ExiWm~t@JL~~t~E~RMWH

Housing-related Expenses other than Home Financing Scheme QB%%

Areas of Excellence +$xwBml~~~rn%~

Interface between Tertiary and School Sectors Re@AWEW@WB@lN%@J

Compliance with Occupational Safety and Health Ordinance and Regulation

Rsa;ag~T%&iG~F Year 2000 Compliance

Cauitat Grants

z@!G!cm~~4 - %-RI

Basic Teaching Equipment - Phase I 42$3%%H&~~-%~rn

Basic Teaching Equipment - Phase II ftR&fliizS

Dangerous Goods Stores x~%~~smEEx@E~B~~

Fitting Out and Environmental Control of Engineering Laboratories

E2swiE22-Q

Furniture and General Equipment i+&W3UW~l\

Microfabrication Center zfR%H#m3%

Specialist Equipment and Facilities i!a%

Others

[&y :

Notes:

I. ~&!y@Gs..~~~FBH&+~ * m-i?1999 4% I730 L72?Ym!w ~~~~~~~-~-~~~~$3~~~~~~~~~~~~~~~ o The unspent balances are to be carried forward to the next financial year and the shortfalls as at 30 June 1999 will be offset against funding to be released by the UGC to the University in the next financial year.

1998 $‘ooo 146,363 1,310 9,122 0 0 4,937 2,026 Amount Transferred In/Out $looo 0 0 0 0 0 0 0 0 0 0

&.A

IliE

Income Exuenditure 1999 $‘ooo %‘ooo $‘ooo 6,304 103,426 3,723 1,077 104,349 145,440 9,ooo 6,422 21,104 8,284 2,026 7,733 7.811 37,177 (16,073) 30,730 0 560 25 5,500 26,536 4,194 2,53 1 2,406 1,240 1,346 24 1 4,225 1,275 162,254 0 183,071 195,822 149,503 10,932 0 55,033 48,340 17,625 35,754 (4,773) 278 70 ( 1,050) 2,013 (22,179) 819 0 3,933 0 15,100 0 0 0 0 0 5,000 0 0 0 31,000 0 0 7,569 32,118 12,987 (2,660) 0 0 278 70 9,187 (5,237) 0 2,013 18,269 W48) 328 491 2. - -~-~~~~~~~~~~f8#,~~#~~~~~~~~~~~-~~~~~~~~~ 0 L+zseEa~E~ffgsA&~~~~~-~~ 0

During the year, an incompleted Teaching Development Grant project with a remaining fund balance of HK$1,809,000 was transferred to The University of Hong Kong. The balance was paid to The University of Hong Kong and included in the expenditure.

14. ff3%aiM(M>

SPECIFIC FUNDS (Cont’d)

Amount Transferred U 1998 In/Out $‘ooo Income ExDenditure - - 1999

$‘ooo $‘ooo $‘ooo $‘ooo

Designated Donations and Endowment Recurrent Accounts

@aa&

Designated Funds

!!lm%iti$B&

Scholarships and Bursary Funds

2esGsm

Student Loan Funds

%Z%%*H&4~%%

Designated Endowment Recurrent Accounts

#B-m El

Capital Projects

.

sm*z=?

Other Operating Funds

B=fl*J%CSfdE

Designated Endowment CaDital Accounts

#Et

TOTAL 74,803 1,504 86,596 64,295 98,608 3,952 9 9,246 6,446 6,761 16 0 838 338 516 9,287 0 4,489 2,580 11,196 50,405 5,828 60,214 77,708 38,739 138,463 7,341 161,383 151,367 155,820 63,002 (8,717) 104,205 84,177 74,313 28,498 0 3 0 28,501 403,149 (1,376) 503,695 479,706 425,762

15. lii#%owfle

RESERVES AND PROVISIONS

Amount Transferred

Amount from/(to) General/

Expended Swciflc Funds

$‘ooo $‘ooo 1998 $‘ooo 104,904 130,862

z5f%fs!BGMt#m

Building-related Reserves 58,833 163,737 (775) 130,087

~B%M~~f685

Non-building-related Reserves

!&l%mW@M2Hm

Staff-related Reserves l!MEJW;tfi&R Contractual Passages i.!a#&& Gratuities 14,03 1 6,478 36,082 98,244 63,242 0

Rlg’Jgl&

Leave Pay 113,355 104,722 120,007 128,640

%%w%

Student Residential Halls

r

9,167 14,620 8,837 9,679

-49.

General

f?asm;ftQ

Furniture and Equipment

8,025 k3BRgB Major Redecoration 8,446 I.- 25,638 33,136 , 6 0 1,987 (24) (1,416) 32,774

2&F#iiA

Exchange Equalization 1,993

Provisions for Research Projects

#Ii% 410,918 104,704 184,147 490,361

TOTAL

&g: Note :

The total amount of HK$184,147,000 transferred from general/specific funds included HK$101,562,000 from general expenditure, HK$76,458,000 from excess of income over expenditure, and HK$6,127,000 from over-provision of outstanding commitments.

16.

~~~~~~~~&~~~~E

UGC TRIENNIUM EQUALIZATION

ACCOUNT

1998%6fl3OEl i&K%% Balance as at 30 June 1998 1998199$~2&~%E Recurrent Account, 1998199 1999$6fl30 El i?%%$ Balance as at 30 June 1999 %‘ooo 0 170,554 170,554 4Yc%mmBae. ’ X~~~~~~~~~X~~~~R~#~-~~~~~~~~~~~~~~~~~~ ’ 2!$vT&t~&~*@~ W&MaB#E 0 ~\/~~6~308(~P-~~~l~~~~ * t%‘iF3$%%.%7;+~2B 0 $.. ~~~“-~~~~~~~~~i~~~~~~~~~~~~~~~~~~

Under the block grant arrangement, the dtflerence between funds released by the UGC plus other general income and the actual amount spent/transferred by the University is dealt with through the UGC Triennium Equalization Account. The balance as at 30 June 1999, representing the excess of the General Income over actual spending/transfers, is to be carried forward for use in the remaining years of the triennium. Any surplus on this account at the end of the triennium will normally be transferred to the UGC Holding Account and refunded to the UGC .

24

!l!sw@s

Block Grant

M!ZW%2#%~~

Supplementary Grant for Minor Works

Supplementary Grant for Additional Research Postgraduate

%!Bxnia~m~~~

Reserved Supplementary Grants for Salary Revisions ?!i%amti~

Rates and Government Rent

18.

&B&B

FEE INCOME

a!3

Tuition Fees

l%%t

Graduation Fees

?d$wGBti

Application Fees 1999 $‘ooo 1998 $‘ooo 1,373,536 1,163,789 0 zoo0 62,900 67,800 1,436,436 72,100 47,091 1.233.589 269,557 25,929 1,555,627 1,529,075 295,402 287,865 701 652 1,989 969 298,092 289,486 25

19. !i%i3Bcz

SPECIFIC INCOME AND EXPENDITURE

JKn

INCOME Ezfi%m Earmarked Grants @!s%%w Capital Grants %S?OktZZ@*S&~A

Donations and Designated Endowment Income ?afimB&h

Other Operating Income

EXPENDITURE $#BzB3RtitMB

Expenditure met from Earmarked Grants El@~~B~~tlj2M3

Expenditure met from Capital Grants $tEWHEBB*~&&h~&XM3

Expenditure funded by Donations and Designated Endowment Income XtiSZHb

Other Operating Expenditure

*4TBZ@!%

SURPLUS FOR THE YEAR wB3figslmm&

TRANSFERRED TO RESERVES/PROVISIONS

t!liEz-tiS&

TRANSFERRED TO GENERAL FUNDS

TRANSFERRED TO SPECIFIC FUNDS

1999 s’ooo 195,822 48,340 151,367 85,594 481,123 50,007 (7,498) (26,021) (16,488) 0 1998 $‘ooo 159,995 75,103 98,817 101.694 435,609 106,480 49,602 88,108 65,068 309,258 126.35 1 (5,641) (12,635) (108,075) 0

20. --HBX

- EC&

GENERAL

EXPENDITURE

- ADMINISTRATION

zl!-i7&EZ@&lfi%& - W@BRR

Salaries and Gratuities/Superannuation - Senior Staff %&EZR&l@& - #ma1

Salaries and Gratuities/Superannuation - Support Staff ti3B!!&&@RH

Audit and Legal Fees Financial Charges I%BE3rn

Furniture and Equipment -&B%

General Advertisements -&Wfi~:RH

General Office Expenses t!zmJm

Official Publications @mm

Vehicle Running Expenses

21. -HMZ

- 4vF

GENERAL

EXPENDITURE

- ACADEMIC

&WP’J

Academic Departments

!4$%sGEm&lfi%& - B&&RR

Salaries and Gratuities/Superannuation - Senior Staff %&BB~&fi~& - #fl!G@E

Salaries and Gratuities/Superannuation - Support Staff I%WESM

Furniture and Equipment 83 ratoty Expenses i?=vEaJ%& Postgraduate Studentships lias!M! Library %&WBrn&ltiR& - i%i%wmR

Salaries and Gratuities/Superannuation - Senior Staff %&Ezm&ifia& - #ffM&A

Salaries and Gratuities/Superannuation - Support Staff f%F$Ig

Book Binding E?.BR%R

Furniture and Equipment --AQ#tiSBH

General Office Expenses lBiFB%S~ErnTrJ

ooks and Periodicals Library On-line Search #f& Others 27 .gg 48,522 90,000 86,93 1 142 165 1,865 1,489 1,000

p!)J

$‘ooo

48,614 677 417 164 2,316 1,527 1,298 144,237 142,109 1999 1998 $‘ooo rslooo 526,293 5 16,904 104,820 112,950 2,794 432 33,330 93,433 38,292 89,212 760,670 757,790 22,694 25,006 721 649 19,824 23,663 652 294 927 22,500 33,185 1,207 1,207 1,179 1,567 74,762

21. --&H3

- @s(a)

GENERAL EXPENDITURE - ACADEMIC (Cont’d)

?iiY%@a

Research Grants MSrnSB

Computer Facilities $tPSiWJ*~cI

Academic Support Centers

Advanced Engineering Materials Facility iiz&vm%~UB

Animal Care Facility ,YivltlE~~~+~i~

Applied Technology Center ?@Kr%@A%l%+JL~

Center for Coastal and Atmospheric Research $?eH~~~~G

Center for Enhanced Learning and Teaching IUHa”oRl3

Center of Laboratory Supplies ct=Umml%

China Light and Power Wind/Wave Tunnel Facility ,ElmMwJI~RUFfi

Computer Aided Design and Manufacturing Facility RE3bPfiS

Deans’ Offices &%a@~+Ji~

Educational Technology Center i!!@aB%H

Electrical and Mechanical Services Facility ~~I@%~i\%tff&H

Geotechnical Centrifuge Facility %%!%-wK%flE%H

Glassblowing Facility IRt$$@p&

Industrial Training Center W%ii#4FRI@WRFfi

Institute for Environment & Sustainable Development gg~ql,~,

Language Center lR%fkllB%*a

Liquid Helium Facility 4$i%w&Rl%

Materials Characterisation and Preparation Facility f%?@a=%ZRPFfi

Microelectronics Fabrication Facility Ti7l%;LB%tr;%%L

Office of Contract and Grant Administration amf83ff%Ffi

Plant Growth Facility wwJi\

Research Center Ef$?HBcp~L~

Technology Transfer Center Irl@iw~~~:(%~~i) VP-AA Office 21,571 55,509

1998

%‘ooo

22,026 55,009 2,589 2,534 2,402 2,253 15,085 5,212 7,620 4,692 473 0 3,568 3,354 1,951 1,308 3,704 3,700 42,619 40,447 18,365 17,423 12,475 11,812 1,901 2,343 122 120 9,226 7,308 138 688 32,502 33,082 302 371 14,055 15,184 10,785 10,597 5,051 5,717 1,267 401

a

15,491 5,511 5,56$ 13,574 13,505 8,19Z 6,691 213,477 209,808 1,125,989 1,125,952 28 ~- .__ -- ----.-

22.

-&H% - t!38%%%

GENERAL

EXPENDITURE

- MAINTENANCE

OF PREMISES

$i!iw&EB~~~&

- WR&MB

Salaries and Gratuities/Superannuation - Senior Staff %&E~~&la#& - #fiiJ@W

Salaries and Gratuities/Superannuation - Support Staff i3vew

Insurance Premiums ?r%mw%i

Cleaning Expenses c!imim%

Furniture and Equipment

-&lU'i;b%ifH

General Office Expenses M!?!IB

Minor Works EmEM%

Rates and Government Rent iifMm%*

Repairs and Maintenance !%523&

Security Expenses rnR%!lfl6iE%M

Staff Uniforms and Laundry

7l3333m

Utility Charges

23.

-amfr: - -Bag

GENERAL EXPENDITURE

- GENERAL

EDUCATION

,

.

f@+mti9*2Fd

Academic Exchanges with China 4l?cwm

Admission Expenses %RSA%%%rn%

Advisory Committees Meetings/Accreditation ~~~R~~~~%B~~~R~W~~~l~

Association of East Asian Research Universities and a Europe Institute & a German Center

$5%JlwJi~ Center for the Arts 184

Consultancies fi+il%R%E&mw~3:111

Duty Visits and Staff Development +!5Git:RH

Examinations &LvzmsHl%tRm

Subscriptions to International Education Associations TA+w2ww%

Workshops and Seminars

_____-.- ___-.- -^-. -... - - 29 1999

$‘ooo

$‘ooo

1998

16,710 15,937 105,149 101,806 903 1,551 8,684 11,202 1,687 863 1,297 1,673 7,210 17,322 47,091 25,929 37,368 57,645 6,111 8,158 252 481 53,629 55.025 286,091 297,592 1999 1998

$‘ooo

$'ooo 270 0 64 150 1,076 1,040 251 131 1,098 1,155 3,520 5,490 6,190 9,968 70 91 86 146 1,117 1,182 13,742 19,353 ,--.- - .---

24. -EBfiJZ

- etElss%B~iFrJ~E

GENERAL

EXPENDITURE

- STUDENT FACILITIES

AND AMENITIES

1999 $‘ooo

1998 $‘ooo A+Kf+@&&~Et~ft

Grants to Student Bodies

375 427

IBEE

Physical Education Facilities

244 229

f&k:C~p;t

Student Affairs Office

33,325 33,460

%SEB

Student Health 4,353 4,303 38,297 38,419 --

25. -&Hfi:

- mii?

GENERAL

EXPENDITURE

- MISCELLANEOUS

%%R-1RH

Congregation Expenses b3iSV~~%l~E%l~ Court/Council Meetings &frff@!h Education Allowances

Q fizcmstttm

Home Purchase Scheme

Fi%%mlJ

Housing Benefits !l+Hmm~4cBiF~J

Medical and Dental Benefits

!l?v!%w

Insurance Premiums

2RR

Official Entertainment

BE?!@

Passages b#RH Publicity Expenses #%RBH Recruitment Expenses #i!&wmM1Bili~M

Removal Expenses and Hire of Vehicles @ES%

Subsidies for Staff Buses

%m

Miscellaneous 893 870 50 85 11,316 11,127 1,098 3,542 52,468 206,800 24,l I4 23.5% 1,496 2,241 500 515 9,546 16,023 2,270 2,583 1,438 2,270 706 725 589 660 420 (77) 106,904 270,960 30

26.

?i%&%%E%&@~@%&%~~~~

RECONCILIATION

OF FUNDING SURPLUS TO NET CASH INFLOW FROM

UNIVERSITY OPERATIONS

FUNDING SURPLUS sJ!B

ADJUSTMENTS

Acquisition of Fixed Assets

Disposal of Other Fixed Assets

Interest and Investment Income

Amount Transferred to Building Fund

TOTAL ADJUSTMENTS

NET FUNDING SURPLUS

DECREASE/(INCREASE) IN STOCKS

DECREASE JN PREPAYMENTS AND DEPOSITS

DECREASE/(INCREASE) IN ACCOUNTS RECEIVABLE

k~&B~tiWB~RE2mm~~M~~

INCREASE/(DECREASE) IN THE UGC HOLDING ACCOUNT

Jfi!mwRSRWE3~HX(H~)

(DECREASE) IN ACCOUNTS PAYABLE AND ACCRUALS IHBMti&X(s*)~mDn

(DECREASE)/INCREASE IN RESERVES AND PROVISIONS

NET CASH INFLOW FROM UNIVERSITY OPERATIONS

1999 $‘ooo 297,642 112,957 410,599 319 5,587 25,332 2,309 (61,621) (3,142) (31,216) 1998 $‘ooo 175,069 104,801 (28) (97,647) 164,586 171,712 346,78 I (45,834) 379,383 300,947 31 - - -_--___.~- -., -~ -- - ___ .__.

27.

f@fefa

CAPITAL COMMITMENTS

E~B@*~m~%~f~&*~zB~I~

Capital Works Contracted for but Not Provided in the Financial Statements

iE!cRAR*

Government Funds

#-ERR&

Non-Government Funds 3,483 7,669

no

15,703 85,782 19,186 93,45 1

e~~l~ti*ERz~~I~

Capital Works Authorised but Not Contracted for

T&&Hfw&

Non-Government Funds

28. ksIA!?mT

COMPARATIVE FIGURES

42,685 0 61,871 93.45 1 E~tt@~2es%~~ ' J2,@izs$~Bxa%3~ D

Certain comparative figures have been reclassified to conform to the current year’s presentation.

Aw&ma7msH

INFORMATION ON UNIVERSITY COMPANIES

fiEkiQAQ

Comuanv Name

m

Subsidiaries ?Js?.H4AtiZ~‘pBfi~ HKUST Properties Limited

HKUST RandD Corporation Limited

Affiliated Comuauies

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Nansha IT Park Foundation Limited

Percentage of issued

Princinal Activities

shares held bv the University

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ll@B+i%

Direct

Indirect

100%

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Dormant 100%

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’ BEE

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To market and commercialize the University’s

intellectual property; to manage a venture

capital fund; to assist the establishment and growth of technology-based start-up companies

12.5%

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Note

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To manage the Nansha Information Technology Park

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To provide computer services for the higher education institutions in Hong Kong

Joint Universities Computer Centre Limited

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Varsity Resources Corporation Limited

16.67%

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Has ceased business and is undergoing a

dissolution process

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Note :

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Nan& IT Park Foundafion Limited is a company limited by guarantee and not having a share capital. The foundation has two members : HKUST RandD Corporation Limited and Fok Ying Tung Foundation Limited.

33