Education Bureau Circular Memorandum No. 90/2021

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Education Bureau Circular Memorandum No. 90/2021

From : Permanent Secretary for Education To: Supervisors of Kindergartens, Kindergarten-cum-Child Care Centres and Schools with Kindergarten Classes joining Kindergarten Education Scheme

- For necessary action Ref : EDB(FINMS)/KG/614(20/21) Date: 30 June 2021

Submission of 2020/2021 Annual Audited Accounts by Kindergartens / Kindergarten-cum-Child Care Centres and Schools with Kindergarten Classes

Joining the Kindergarten Education Scheme (“the Scheme”)

Purpose

This circular memorandum requests Supervisors of Kindergartens and Kindergarten-cum-Child Care Centres and schools with kindergarten classes joining the kindergarten education scheme (collectively referred as “KGs”) (including KGs having withdrawn from the Scheme but still receiving government subsidy of eligible students at certain level(s)) to submit their annual audited accounts for the 2020/21 school / financial year within six months after the end date of the accounts.

Background

2. According to Education Bureau (EDB) Circular No. 7/2016, KGs are required to submit to EDB their annual accounts audited by Certified Public Accountants (practising) registered under the Professional Accountants Ordinance. Guidelines on engagement of auditors are set out in EDB Circular No. 5/2014.

Submission Requirements

3. The full set of annual audited accounts to be submitted to EDB should comprise – (a) the School Supervisor’s Certificate;

(b) the Auditor’s Report; and

(c) statements as specified at Annex 1.

To facilitate KGs’ completion of the required statements, KGs should download for completion and submit the electronic templates through the Common Log-On System at http://kgac.edb.gov.hk (please refer to Annex 2), followed by a duly signed hardcopy which is identical to the electronic version to EDB.

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4. The full set of annual audited accounts must be forwarded to the following address within 6 months after the end date of the accounts –

Management Services Section, Finance Division,

Education Bureau,

Room 1504, 15/F, Wu Chung House, 213 Queen’s Road East,

Wan Chai, Hong Kong.

5. For those KGs receiving subsidies under the Child Care Centre Subsidy Scheme and/or other subsidies for child care services, they should separately account for these subsidies as set out in Statement 3 at Annex 1.

6. For closed KGs, they should submit their final audited accounts covering the period up to and including the last day of school operation no later than four months from the date of cessation of operation.

Points for special attention

7. New statements or items are applicable to the annual audited accounts for the 2020/21 accounting year. KGs should properly report the relevant items with attention to the following –

(a) Statement 4B at Annex 1: Income and expenditure chargeable to other non- recurrent grants under the Scheme should be reported in this statement.

(b) Note 11 of Statement 7 at Annex 1: Except for "Prior Year(s) Adjustments - Clawback", details of all “Prior Year(s) Adjustments” in Statement 1 should be reported in this statement.

8. In preparing the annual audited accounts, School Supervisors are requested to comply with all relevant terms and conditions of the Scheme set out in EDB Circular No. 7/2016 as applicable to the KGs with particular attention to the following –

(a) KGs should submit to EDB annual audited accounts in name of the KGs together with the Auditor’s Reports. EDB will not accept the annual audited accounts submitted by the sponsoring bodies or other bodies and/or Auditor’s Reports of any other accounts.

(b) (b) All the transactions related to KGs’ operation, including but not limited to the income and assets, should be reflected in the audited accounts of the KGs. On the other hand, those transactions related to the sponsoring bodies only should be excluded.

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(c) KGs should follow the rules and regulations on collection of fees and trading operations as promulgated in EDB Circular No. 16/2013. KGs should properly report their school incomes (e.g. school fees, income from sale of school items) in the annual audited accounts. Income generated from activities ancillary to KGs’

operation but NOT collected from students should be reported in Note 5 of Statement 7 at Annex 1.

(d) KGs will receive various grants and subsidies under the Scheme. These grants and subsidies should be used solely for the purposes specified in the relevant EDB circulars. A non-exhaustive list of expenditure items chargeable to grants and subsidies is set out in Annex to Appendix 3 of EDB Circular No. 7/2016.

(e) KGs should not transfer any funds, including subsidies and surplus, in whatever form, to any organizations including their sponsoring bodies.

(f) KGs should observe the special accounting treatments for each individual grant and for some specific accounts as set out at Annex 3 and Annex 4 respectively.

(g) KGs should properly disclose all related partyⁱtransactions and their outstanding balances in Note 9 of Statement 7 at Annex 1. Please refer to Annex 5 for definition.

(h) KGs should draw their Auditors’ attention to the strict certification requirements as set out in the reference notes for Auditors at Annex 6 prior to the commencement of audit.

(i) KGs should note that as set out at Annex 6, Auditors are required to send to EDB a copy of the management letter, if any, they issued to their School Supervisors on the weaknesses they observed in the internal control of KGs. EDB may require KGs and their Auditors to provide supplementary information, if necessary.

9. All income and expenditure relating to subsidies and grants received by KGs from other government departments / quasi-government funds, which are managed by government bureau / departments other than EDB, should not be included in Scheme Funds in the audited accounts at Annex 1.

Remuneration Packages for Key Personnel

10. As stipulated in paragraph 8 at Appendix 2 of EDB Circular No. 7/2016 issued on 20 July 2016 regarding the implementation details of the Scheme, on the basis of fairness and reasonableness, the school should put in place a proper and well-defined mechanism to determine remuneration packages for individual staff and the pay adjustment mechanisms. The school should also increase the transparency in their management. Starting from the submission of the 2017/18 audited accounts, KGs joining the Scheme should complete a proforma on remuneration packages of key personnel, signed by the School Supervisor and return separately to the respective Regional Education Office / Joint Office for Kindergartens and Child Care Centres for consideration. The proforma and a completed sample are attached below for action and reference.

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Enquiries

11. For enquiries related to annual audited accounts, please contact Accounting Officer I (Management Services)1 at 2892 6269. For enquiries on the proforma on remuneration packages of key personnel, please contact respective School Development Officer or Service Officer as appropriate.

( Victor SO )

for Permanent Secretary for Education

Encl.

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Annex 1

(1) School Number : Branch ID :

(2) Name of School：：：：

(3) Name of Sponsoring Body :

(4) School type :

First year joining KGES

With / Without non-local classes :

(5) Total number of pages of auditor's report (i.e. 5th item in the contents) :

(6) Starting date of school year :

KG Section - Local classes (dd/mm/yyyy) : (KGES)

CCC Section (dd/mm/yyyy) :

(7) Period covered by annual accounts : For this submission

From (dd/mm/yyyy) : #

To (dd/mm/yyyy) : #

Part of the period not under KGES

For last submission From (dd/mm/yyyy) : To (dd/mm/yyyy) :

#

Note : Editable cells

Editable cells (optional items) Not applicable cells

Non-editable cells

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School number : __________

[NAME OF SCHOOL]

AUDITED ACCOUNTS

FOR THE YEAR ENDED ______ 2021

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Page

School Information 1

Cover Page 2

Contents 3

4 5

Statement 1: Income and Expenditure Account (Remark 1) 6 - 7

Statement 2: Balance Sheet (Remark 1) 8 - 9

Statement 3: 10

Statement 4A: Statement of Grants provided based on Actual Expenditure (Remark 1) 11

Statement 4B: Statement of Other Grants (Remark 1) 12

Statement 5: Statement of Trading Operations 13

Statement 6: Statement of Donation Income 14

Statement 7: Notes to the Accounts (Remark 1) 15 - 25

Remark:

1. Subsidies / grants under KG Education Scheme should be reported under respective Statements according to their natures as below - a. Subsidies / grants under KG Education Scheme

- Statement 1 : Recurrent subsidies / grants (deficit can be covered by surplus under Other Operating Expenses Related Subsidy) - Statement 4A : Grants disbursed based on actual expenditure of the KG

- Statement 4B :

b. Other subsidies / grants not under KG Education Scheme or from other government departments / quasi-government bodies - Statement 2 :

- Statement 3 : Subsidies under the Child Care Centre Subsidy Scheme and from SWD - Statement 7

(Notes 5 & 6) :

Surplus / deficit of subvented projects should be recorded as "Other Income" or "Other Expenditure".

Balances of the subsidies / grants should be recorded as 'Accounts Payable', if no separate ledgers and bank accounts are maintained for reporting to these bodies.

CONTENTS

Statement of Child Care Centre Subsidy Scheme and Other Subsidies for Child Care Services (Remark 1)

School Supervisor's Certificate Auditor's Report

Other grants ((i) without reserve ceiling requirement; and (ii) deficit can be covered by surplus under Other Operating Expenses Related Subsidy)

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Signed by School Supervisor:

Name of School Supervisor:

Name of School:

Date:

SCHOOL SUPERVISOR'S CERTIFICATE

I hereby certify that information and explanation given in Statement 1 to Statement 7 in the Audited Accounts of the school for the accounting year ended ______ 2021 are true and correct.

Please stamp School Chop

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To

Signed by Auditor:

Name of Auditor:

Date:

AUDITOR'S REPORT

[Name of School]

Please stamp Auditor's Chop

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INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD FROM ______ 2020 TO ______ 2021

KG Scheme Funds (under Kindergarten Education Scheme (KGES)) (Remark 1) School Funds (Remark 1) Total

Local Kindergarten Section ---Optional (Remark 2)---

Premises Related Subsidy Grant for

Teacher Salary (Premises Maintenance Premises Related Subsidy Other Operating Expenses Support to

Related Subsidy Grant related) (Others) (Remark 4) Related Subsidy Non

Statement

Half-day session

Whole-day / Long whole- day session

Whole-day / Long whole-

day session

-Chinese Speaking (NCS) Students

Grant for a Cook

Promotion of Reading Grant

for Kindergartens

Sub-total Local Kindergarten

Section

Child Care Centre Section

Non-local Kindergarten

Section

Sub-total 2020/21 2019/20

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Income (Remark 3)

Unit subsidy - -

Tide-over grant - -

Premises maintenance grant - -

Rental subsidy / rent reimbursement - -

Reimbursement of government rent and rates - -

Grant for support to NCS students - -

Grant for a cook - -

Promotion of Reading Grant for Kindergartens - -

School fee from parents and fee remission -

Subsidy under Child Care Centre Subsidy Scheme ³ - - -

Other Subsidies for Child Care Services ³ - - -

Child Care Centre Special Grant and Child Care Centre Parent Subsidy ³ - - -

Other income ^{7 - Note 5} - - - - - -

Total Income - - - - - - - - - - - - - - - - - - Expenditure

Teacher salary related expenses

Principal and teaching staff salary and related expenses

Salaries and Provident Fund / Mandatory Provident Fund - -

Severance / long service payment - -

Premises related expenses

Depreciation of school premises 7 - Note 3 - -

Major repairs and maintenance of school premises paid by premises

maintenance grant - -

Rental of school premises - -

Rates and government rent - -

Other operating expenses

Non-teaching staff salary and related expenses

Salaries and Provident Fund / Mandatory Provident Fund - -

Severance / long service payment - -

- -

Other expenditure for support to NCS students - -

Salary and related expenses for cook - -

Related expenses on promotion of reading activities - -

Major repairs and maintenance (for items costing $8,000 or above each) - -

Depreciation of fixed assets

Leasehold improvements ^{7 - Note 3} - -

Furniture/ Equipment/ Fixtures/ Fittings ^{7 - Note 3} - -

Computer hardware and software ^{7 - Note 3} - -

Renewable energy facilities (only applicable to schools participating in Feed-in Tariff (FiT) Scheme, excluding depreciation for renewable energy facilities under School Funds which are reported under Note 10 of Statement 7)

7 - Note 3 - -

Others ^{7 - Note 3} -

Teaching consumables - -

Expenses on regular learning activities for all students - -

Water and electricity - -

Supervisor's remuneration - -

Set up expenses - -

Related expenses on Child Care Centre Special Grant and Child Care Centre Parent

Subsidy ³ - - - -

Other expenditure ^{7 - Note 6} - - - - - -

Total Expenditure - - - - - - - - - - - - - - - - - - Salary and related expenses for supporting staff to NCS students

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[Name of School] Statement 1

INCOME AND EXPENDITURE ACCOUNT

KG Scheme Funds (under Kindergarten Education Scheme (KGES)) (Remark 1) School Funds (Remark 1) Total

Local Kindergarten Section ---Optional (Remark 2)---

Premises Related Subsidy Grant for

Teacher Salary (Premises Maintenance Premises Related Subsidy Other Operating Expenses Support to

Related Subsidy Grant related) (Others) (Remark 4) Related Subsidy Non

Statement

day session

-Chinese Speaking (NCS) Students

Grant for a Cook

Promotion of Reading Grant

for Kindergartens

Sub-total Local Kindergarten

Section

Child Care Centre Section

Non-local Kindergarten

Section

Sub-total 2020/21 2019/20

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Surplus / (Deficit) from operation - - - - - - - - - - - - - - - - - -

Profit / (Loss) from trading operations ⁵ - -

Surplus / (Deficit) from FiT Scheme 7 - Note 10 - -

Donation income ⁶ - - -

Surplus / (Deficit) for the year - - - - - - - - - - - - - - - - - -

Accumulated surplus / (deficit) brought forward from previous year - -

Prior year(s) adjustments (Remark 5)

Prior Year(s) Adjustments - Clawback (Remark 6) - -

(Please specify the reason) 7 - Note 11 - -

(Please specify the reason)

Deficit for the year transferred to : (Remark 7)

- - - - - - - - - -

- - -

School Funds - - - - - - - - - - - - - - Deficit from One-off Start-up Grant

Deficit from other grants Pilot Scheme Reading Grant

Special Anti-epidemic Grant ^4B - - -

Support Grant ^4B - - -

Website Enhancement Grant ^4B - - -

Pilot Scheme on Renovation Grant 4B - - -

Pilot Scheme on Relocation Grant ^4B - - -

Gift Book Scheme 4B - - -

Do It Yourself (DIY) Handicraft and Learning Package Scheme ^4B - - -

Transfer from / (to) other reserves 7 - Note 7 - -

Surplus / (Deficit) for the year after transfer - - - - - - - - - - - - - - - - - - Amount to be clawed back by Education Bureau for the year ^{7 - Note 8} - - - - - - - - - - - -

Surplus / (Deficit) carried forward to next year ² - - - - - - - - - - - - - - - - - -

Remarks:

1. KG Scheme Funds and School Funds mean "income from government subsidies/grants" and "non-government funds" respectively as stated in the Education Bureau Circular No. 7/2016 and related circulars on the Scheme.

2. It is optional for schools to further apportion the income and expenditure items under School Funds to local kindergarten section, non-local kindergarten section and child care centre section.

3. Please input the correct disbursement and adjustment amounts of subsidies/ grants with correct apportionment of these subsidies/ grants into related sessions under KGES according to the Annual Statement on Subsidies/ Grants issued by EDB through the Common Log-On System.

4. Any rental cost exceeding the market rent as assessed by the Rating and Valuation Department, which will be made known to KGs in due course, should not be charged to the subsidies under the Scheme. It should be borne by school funds (other than school fees).

7. Deficit of respective subsidies/ grants under KGES should be borne by the surplus (if any) from other operating expenses related subsidy (i.e. 40% of the basic unit subsidy) and then by School Funds.

6. According to the Clawback Notification Letter issued by EDB through the Common Log-On System, if there is any discrepancy in the accumulated surplus/(deficit) carried forward between the audited accounts of your school and the amount assessed by EDB for any subsidy/grant, please report such discrepancy as "Prior Year(s) Adjustments - Clawback" in the forthcoming annual audited accounts of your school.

5. Except for "Prior Year(s) Adjustments - Clawback" (Remark 6), KGs should minimise the use of "Prior year(s) adjustments". If "Prior year(s) adjustments" are needed for other reasons, please provide details such as explanation, calculation and other supporting documents for each of the prior year(s) adjustments in Statement 7 - Note 11 for reference.

Other Operating Expenses Related Subsidy

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Statement 2

2020/21 2019/20

Statement As at ______ 2021 As at ______ 2020

$ $

Non-current Assets

Fixed assets (including FiT Scheme assets) ^{7 - Note 3} - - Others (Please specify)

Others (Please specify)

- - Current Assets

Stocks ⁵ - -

Accounts receivable and prepayments

Bank deposits with original maturities over three months Cash and cash equivalents

- - Current Liabilities

School fees received in advance Accounts payable and accruals

Amount payable to Education Bureau ^{7 - Note 8} - - Others (Please specify)

-

- Net Current Assets / (Liabilities) - - Non-current Liabilities

Bank loan Others (Please specify)

-

- Total Assets net of Total Liabilities - -

BALANCE SHEET

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Statement 2

2020/21 2019/20

Statement As at ______ 2021 As at ______ 2020

$ $

BALANCE SHEET

Reserves

Accumulated surplus / (deficit) - non-FiT Scheme # (Remark 1) - - Accumulated surplus from FiT Scheme * (Remark 1) 7 - Note 10 - - Other reserves (Please specify) 7 - Note 7 - - Other reserves (Please specify) 7 - Note 7 - - Other reserves (Please specify) 7 - Note 7 - - Other reserves (Please specify) 7 - Note 7 - - Other reserves (Please specify) 7 - Note 7 - -

-

Retained Surplus

Subsidies / grants from Education Bureau

Subsidies / grants under KG Education Scheme ¹ - - Staff Relief Grant for Staff Taking Paid Maternity Leave ^4A - -

Supply Teacher Grant ^4A - -

Special Anti-epidemic Grant 4B - -

Support Grant ^4B - -

Website Enhancement Grant ^4B -

Pilot Scheme on Renovation Grant ^4B -

Pilot Scheme on Relocation Grant ^4B -

Gift Book Scheme ^4B -

Do It Yourself (DIY) Handicraft and Learning Package Scheme ^4B - -

- Total Reserves and Retained Surplus - -

Remark:

1. For reconciliation purpose:

Statement 2020/21 2019/20

Accumulated surplus / (deficit) - non-FiT Scheme # - - Accumulated surplus from FiT Scheme * 7 - Note 10 - - School Funds - Accumulated surplus / (deficit) ¹ - -

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From ______ 2020 From ______ 2019 Statement to ______ 2021 to ______ 2020

$ $

Income

Subsidy received under the Child Care Centre Subsidy Scheme (Remark 1) 1

Other Subsidies for Child Care Services (Remark 2) Subsidy for Manpower Enhancement ("SME") Subsidy for Further Manpower Enhancement ("SFME") Subsidy for Operation Enhancement ("SOE") Subsidy for Assistant Supervisor ("SAS")

Sub-total 1 - -

Child Care Centre Special Grant (Remark 3) 1

Child Care Centre Parent Subsidy (Remark 4) 1

Total Income - -

Expenditure

Salary and Provident Fund / Mandatory Provident Fund (Remarks 1 and 2) Child care supervisor's ("CCS's") salaries

Child care workers' ("CCW's") salaries

Related expenses on administrative support of CCCs

Related expenses on Child Care Centre Special Grant (Remark 3) 1 Related expenses on Child Care Centre Parent Subsidy (Remark 4) 1

Total Expenditure - - Surplus / (Deficit) for the period - -

Surplus of Child Care Centre Special Grant brought forward from

previous period -

Surplus of Child Care Centre Parent Subsidy brought forward from

previous period -

Surplus (Remark 5)

Surplus refundable to Education Bureau ("EDB") for the period 7 - Note 8

Surplus refundable to Social Welfare Department ("SWD") for the period - - Surplus of Child Care Centre Special Grant carried forward to next period - - Surplus of Child Care Centre Parent Subsidy carried forward to next period - -

Total surplus - -

Remarks:

1.

2.

3.

4.

5. Except for the Child Care Centre Special Grant, any unspent amount of the allocation will be clawed back by the Government of the Hong Kong Special Administrative Region ("the Government") after the review of the annual audited accounts. If the CCC service of the aided KG-cum-CCC is terminated, the entire unspent subsidy based on the audited accounts as at the date of closure will be clawed back by the Government. The surplus from CCCSS and other subsidies for child care services will be calculated on pro-rata basis and returned to EDB and SWD accordingly.

Employer's contribution to Provident Fund Scheme / Mandatory Provident Fund Scheme for CCSs and CCWs

STATEMENT OF CHILD CARE CENTRE SUBSIDY SCHEME AND OTHER SUBSIDIES FOR CHILD CARE SERVICES

According to EDBC No. 3/2008, the subsidy under the Child Care Centre Subsidy Scheme (CCCSS) should be spent solely on CCS's / CCW's salaries and Provident Fund / Mandatory Provident Fund expenses.

According to SWD's notification letter issued to aided child care centres (CCCs) dated 19 March 2021, the Subsidy for Manpower Enhancement and Subsidy for Further Manpower Enhancement should be spent solely on CCS's / CCW's salaries and Provident Fund / Mandatory Provident Fund expenses while the Subsidy for Assistant Supervisor should be spent solely on CCW's salaries. Subsidy for Manpower Enhancement, Subsidy for Further Manpower Enhancement and Subsidy for Assistant Supervisor have to be spent in the school year to which they are granted. The Subsidy for Operation Enhancement should be spent solely on administrative support of the child care centres.

According to SWD's letter issued to aided CCCs dated 27 February 2020, 30 September 2020 and 28 December 2020, the Child Care Centre Special Grant was provided to tide over the financial difficulties faced by CCCs due to suspension of service and ease the financial burden of parents during the epidemic period. The unspent special grant, if any, will be regarded as surplus and to be carried forward to the next period.

Starting from February 2020, SWD disburses the Child Care Centre Parent Subsidy (Parent Subsidy) on quarterly basis through the aided CCCs, which is a direct subsidies for parents to cover part of the service fees and aims at alleviating the financial burden of parents. The unspent Parent Subsidy, if any, will be carried forward for disbursement to parents in the following quarter. SWD will adjust amount of Parent Subsidy to be disbursed quarterly if needed.

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Statement 4A

Statement

Staff Relief Grant for Staff Taking

Paid Maternity Leave

(Remark 1)

Supply Teacher Grant

(Remark 2)

$ $

Income

Grant received

Expenditure

Expenditure incurred and covered by the grant (Remark 3)

Balance for the period (Remark 4) - -

Balance brought forward from previous period 2

Balance carried forward to next period (Remark 4) 2 - -

Remarks:

1.

2.

3.

4.

According to EDBC No. 17/2018, the grant will be provided to reimburse the relevant expenses incurred by the KGs joining the Scheme for employing substitute staff to temporarily take up the duties of the staff taking paid maternity leave under Employment Ordinance (Cap. 57) and for 14 weeks. Expenses related to the non-school portion, child care centre section and non-local KG stream are not included.

Only expenditure covered by the grant, i.e. the reimbursement, should be included. Expenditure not approved by EDB should not be charged to this statement.

In general, deficit may exist as a result of timing difference between expenditure incurred and the subsequent receipt of grant. Such deficit may be carried forward and made good by the grant received in next accounting period.

STATEMENT OF GRANTS

PROVIDED BASED ON ACTUAL EXPENDITURE

According to EDBC No. 8/2018, the grant will be provided to reimburse the relevant expenses incurred by the KG section joining the Scheme for employing supply teacher to temporarily take up the duties of the teacher attending the specified training courses on catering for students with developmental needs and specified training courses on supporting NCS students. Expenses related to the non-school portion, child care centre section and non-local KG stream are not included.

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Statement

Special Anti- epidemic Grant

(Remark 2)

Support Grant (Remark 3)

Website Enhancement

Grant (Remark 4)

Pilot Scheme on Renovation

Grant (Remark 5)

Pilot Scheme on Relocation Grant

(Remark 5)

Gift Book Scheme (Remark 6)

Do It Yourself (DIY) Handicraft

and Learning Package Scheme

(Remark 6)

$ $ $ $ $ $ $

Income

Grant received Expenditure

Total Expenditure - - - -

Surplus / (Deficit) for the period - - - - 2

Prior year(s) adjustments (Remark 7)

Deficit transferred to Scheme Funds (Remark 8) 1

Deficit transferred to School Funds (Remark 8) 1 - - - - Amount to be clawed back by Education Bureau 7 - Note 8

Surplus carried forward to next period 2 - - - - - - -

Remarks:

1.

2.

3.

Our Ref. Date of issue Clawback provision

1. EDB(KGA)ADM/90/1 28/02/2020 Schools should use the grant on or before 31 August 2021.

2. EDB(KGA)ADM/90/1/IV 05/10/2020 Not applicable

3. EDB(KGA)ADM/90/1/VI 30/12/2020 Not applicable

4.

5.

6.

7.

8.

(Please specify)

STATEMENT OF OTHER GRANTS

(Remark 1)

(Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify)

Deficit should be borne by the surplus (if any) from other relevant government subvention (if applicable) or schools’ own fund.

Surplus brought forward from previous period

According to EDBCM No. 37/2020, the one-off grant was provided to help schools replenish their epidemic prevention equipment, clean the school premises and pay for the other expenses related to epidemic prevention.

Schools should use the grant on or before 31 August 2021.

According to the EDB letters (see table below) to KGs, the one-off grant was provided to assist KGs in tackling operational difficulties caused by the novel coronavirus epidemic. KGs must ensure that the grant is used for operating the KG and for education purposes. The ambit of this grant covers expenditure items chargeable to government funds in general.

Please state the adjustments notified by EDB and not yet reflected in previous year's audited accounts in this row.

According to EDBCM No. 126/2020, the one-off grant was provided to facilitate KGs in enhancing their school websites. KGs should use the grant on or before 31 December 2021.

According to EDBCM No. 127/2020, two one-off grants were provided to alleviate KGs’ financial burden in improving the school environment. KGs should use the grants on or before 28 February 2023.

According to EDBCM No. 185/2020, two one-off grants were provided to support KGs to provide meaningful and interesting activities for learning at home. Schools should use the grants on or before 31 August 2023.

This Statement is applicable for grants that meet the following criteria:

- without reserve ceiling requirement; and

- deficit can be covered by surplus under Other Operating Expenses Related Subsidy.

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[Name of School] Statement 5

Statement Textbooks Exercise books

School bus services

School

uniforms School bags

Bedding items

Activities outside regular school

hours Stationery

Supplementary learning materials

Tea and snacks

Interest classes

Others

(Please specify)

Others

(Please specify)

Others

(Please specify) Total

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Income (Remark 1) -

Cost of Sales

Opening stock ² -

Add : Purchases -

Others (Please specify) -

Less: Closing stock 2 -

Total Cost of Sales - - - - - - - - - - - - - - - Profit/ (Loss) for the year ¹ - - - - - - - - - - - - - - -

Remarks:

1.

2.

STATEMENT OF TRADING OPERATIONS

Any discount or block sum of money received from trading operators / suppliers should be entered into school accounts as income. Parents should be notified in advance of such sum.

According to EDBC No. 16/2013, no profit should be generated from sale of textbooks. The profit from the sale of other school items and provision of paid services should be limited to 15% of total costs involved.

Profit / (Loss) as a % of total cost of sales (Remark 2)

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Statement 6

From ______ 2020 From ______ 2019 Statement to ______ 2021 to ______ 2020

$ $

Donation Income

Expenditure (Remark 1)

Extra-curricular activities Purchase of teaching equipment Repairs and maintenance Scholarship

Total Expenditure - -

Unspent balance (Remark 2) 1 - -

Remarks:

1.

2.

STATEMENT OF DONATION INCOME

Expenditure which cannot be fully covered by donation should be recognised in the Income and Expenditure Account (Statement 1).

Unspent balance should be transferred to the Income and Expenditure Account.

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Statement 7

NOTES TO THE ACCOUNTS 1. General Information

2. Basis of Preparation

(i)

(ii) (iii)

Child Care Centre (if applicable)

Local Kindergarten Classes

: 100% :

(iv)

(v)

Half-day Whole-day/

Long whole-day

: Not applicable (1.6 to 2 ， please specify )

All direct expenses which can be separately attributable to KGSF or SF are fully taken

up and borne by such fund, and recorded directly in the accounts for the related sections, streams and sessions;

The principal activity of the school is to provide kindergarten [and nursery, please delete as appropriate]

educational services.

The school has joined the Kindergarten Education Scheme (“the Scheme”) of the Education Bureau since 2017/18 school year and has undertaken to fulfil the terms and conditions of the Scheme. The school is a non-profit-making kindergarten by being either an approved organisation exempt from taxes under Section 88 of the Inland Revenue Ordinance (Cap. 112) (“IRO”) or an approved subsidiary to an

organisation exempt from taxes as recognised by the Inland Revenue Department (“IRD”) under the IRO as proved by a certificate or confirmation letter issued by the IRD.

This set of accounts has been prepared in accordance with the requirements set out in relevant letters, circulars and guidelines issued by the Education Bureau for the Scheme. All amounts are presented in Hong Kong dollars.

The school has maintained separate books of accounts to record the income, expenditure and transactions of each type of subsidies and grants received under the Scheme (named as KG Scheme Funds (“KGSF”)), as well as those of the kindergarten and nursery (if applicable) operation but not covered by the scheme (named as School Funds (“SF”)). The statements included in this set of accounts are prepared on the basis of these books of accounts and where applicable, report separately the income, expenditure and operating surplus / deficit for different sections (kindergarten and child care centre), streams (local and non-local curriculum) and sessions (half-day, whole-day and long whole-day) as specified by the Education Bureau.

In preparing the statements, the school has strictly followed the principles below :

Identifiable local kindergarten expenses which are not allowable in / chargeable to KGSF are fully borne by SF;

Salaries and related expenses of principal and teaching staff are allocated to KGSF and SF according to their relative duties in different sections and streams as designated by the school. The

apportionment ratio adopted by the school during the year was :

Expenses incurred on a school basis are allocated to KGSF and SF based on yearly [please specify as appropriate] average student enrolments of respective sections and streams; and

All expenses allocated to local kindergarten section are further allocated, if applicable, to different sessions based on respective yearly average student enrolments and the ratio of half-day to whole- day / long whole-day expenditure per student. The ratio adopted by the school during the year was:

Non-Local Kindergarten Classes (if applicable)

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Statement 7

NOTES TO THE ACCOUNTS 3. Fixed Assets

School premises

Leasehold improvements

Furniture/

Equipment/

Fixtures/

Fittings

Computer hardware and

software

Renewable energy (RE) facilities under

FiT Scheme

(Remark 2) Total

$ $ $ $ $ $

Cost

As at ______ 2020 -

Additions - - - -

Transfer (Remark 1) -

Disposals -

Written off -

As at ______ 2021 - - - -

Accumulated Depreciation

As at ______ 2020 -

Depreciation

For assets not under FiT Scheme:

Charged to KG Scheme Funds # - - - - - Charged to School Funds # - - - - - For RE facilities under FiT Scheme:

Charged to KG Scheme Funds # (Remark 2) - -

Charged to School Funds @ (Remark 2) - -

- - - -

Transfer (Remark 1) -

Disposals -

Written off -

As at ______ 2021 - - - -

Net Book Value

As at ______ 2020 - - - - As at ______ 2021 - - - -

Depreciation Rate (%) Remarks :

1.

2. Only applicable to schools participating in FiT Scheme. Please refer to Note 10 of Statement 7.

3.

# Depreciation reflected in Statement 1.

@

for the relevant fixed assets should be charged to the account of FiT Scheme (Note 10 of Statement 7). The depreciation should NOT be reflected in Statement 1.

For the purchase of fixed assets and capital expenditure under FiT Scheme, the relevant assets should be capitalised in Note 3 of Statement 7, while the depreciation

Threshold amount (Remark 3)

This category is only applicable for new join Scheme KGs.

From 2017/18 school year onwards, except for schools participating in the FiT Scheme, fixed assets (including items brought forward or newly acquired items) must be grouped under 4 categories, namely School premises, Leasehold improvements, Furniture/ Equipment/ Fixtures/ Fittings, and Computer hardware and software. Therefore, any items brought forward under the category of "Others" must be transferred to these 4 categories.

Please provide the threshold amount (i.e. if the relevant expenditure is up to or in excess of that amount, the item acquired would be treated as fixed assets) for each type of assets.

- 16 -

(21)

Statement 7

4. Details of Additions of Fixed Assets

Date of From ______ 2020

purchase/ to ______ 2021

commission Cost

$ (i) School premises

(Please specify) (Please specify) (Please specify) (Please specify) (Please specify)

- (ii) Leasehold improvements

(Please specify) (Please specify) (Please specify) (Please specify) (Please specify)

- (iii) Furniture/ Equipment/ Fixtures/ Fittings

(Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify)

- (iv) Computer hardware and software

(Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify) (Please specify)

- [Name of School]

NOTES TO THE ACCOUNTS