Management and Financial Audit (MFA)
Sharing on Audit Findings - Management Aspects
2016/17
School Administration 3 Section
29 September 2017
MFA - Four Specific Aspects
General Administration of the School Management Committee (SMC)/
Incorporated Management Committee (IMC)
Human Resources and Personnel Matters
Financial Management
School Fee Remission and Scholarship Schemes
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Major Observations:
Management Aspects
General Administration of SMC/IMC
Declaration of Conflict of Interests
HR Management
Quality Assessment and Compliance
HR and Personnel Management
Staff Recruitment
Fee Remission/Scholarship Scheme
Criteria for Awarding Fee Remission &
Major Observations –
General Administration of SMC/IMC (1)
Declaration of Conflict of Interest Major observations:
School-based policy/procedures for school personnel, including managers and staff, were not in place and/or endorsed by
SMC/IMC
Records of declarations not properly kept
No proper records of the resolution regarding the declaration made by staff and necessary actions taken to avoid conflict of interest
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Declaration of Conflict of Interest
Recommendations:
Draw up school-based policies/procedures to require SMC/IMC members and/or staff to declare conflict of interest, which should be deliberated and endorsed by SMC/IMC
Keep proper records of all declarations made verbally or in writing (preferably using a standard form)
Properly record the necessary actions taken together with considerations to all the declared conflicts, such as refraining from handling the duties, reasons for the declarant to continue to discharge the duties, etc.
Major Observations –
General Administration of SMC/IMC (2)
HR Management
Major observations:
HR policies were not endorsed by SMC/IMC
HR policies did not cover all paid staff (teaching and non-teaching; part-time and full-time)
Staffing/grade structure and remuneration policy for staff were not in place
Major Observations –
General Administration of SMC/IMC (3)
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Points to note:
part-time staff ≠ temporary staff
HR Management
Recommendations:
School-based HR policies, including staff recruitment, remuneration, appraisal, promotion and disciplinary procedures, should:
cover all paid staff
be properly documented and endorsed by SMC/IMC
be updated regularly and made known to all staff for transparency
Reference:
• EDBC No. 17/2012 (paras 2 and 5)
• Independent Commission Against Corruption’s
Major Observations –
General Administration of SMC/IMC (4)
Quality Assessment and Compliance – School
Development and Accountability (SDA) Framework
Major observations:
No records of SMC/IMC’s endorsement on the School Development Plan, Annual School Plan or School Report
No records of SMC/IMC’s discussion of the
Comprehensive Review/ External School Review reports and endorsement of school’s reply to the report
Recommendation:
Put up self-evaluation under the SDA Framework to their SMC/IMC for discussion and approval
Reference: EDBC No. 7/2012 (para 15) “Essential items to be discussed at the SMC/IMC meetings”
Major Observations –
General Administration of SMC/IMC (5)
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Quality Assessment and Compliance – SMC/IMC composition Major observations:
SMC did not comprise all the stakeholders as managers as required in the Service Agreement
The SMC was not functioning as expected
Recommendations:
Fulfil the requirement in accordance with the SMC/IMC’s
Memorandum & Article of Association, Constitution and/or Service Agreement
The SMC shall be responsible for ensuring that the school is
managed satisfactorily and the education of the pupils is promoted in a proper manner in accordance with section 32 and 33 of the Education Ordinance, Cap. 279
Major Observations –
General Administration of SMC/IMC (6)
Reference: Section 27 of the Education Ordinance, Cap. 279 “No person shall
Quality Assessment and Compliance – Additions, alterations or improvement works
Major observation:
No records of prior EDB’s approval for additions, alterations or improvement works in school premises
Recommendation:
To obtain prior EDB’s approval
Major Observations –
General Administration of SMC/IMC (7)
Reference
SSB/IMC/SMC Service Agreement - Conditions for Admission to the DSS:
“Any application for additions, alterations or improvements to the school premises for which approval by the Government is required shall be
submitted in duplicate to the Government for approval, and copied to the Director of Architectural Services/Director of Housing.”
Regulation 10 of the Education Regulations, Cap. 279A: “Except with the consent in writing of the Permanent Secretary there shall not be made -
(a) any structural alterations to the school premises” 10
General Administration of SMC/IMC
Advice on the Operation of Governance Review Sub-committee (GRSC):
Self-evaluation Checklist (all four parts) should be completed by schools by end-November and forwarded to GRSC annually. GRSC should
review the completed checklist and submitted its findings together with recommendations to the SMC/IMC for consideration
Restricted sessions should be arranged to finalize reports/findings
Example:
Complete the
2016/17 Checklist by November 2017
Major Observations:
Management Aspects
General Administration of SMC/IMC
Declaration of Conflict of Interests
HR Management
Quality Assessment and Compliance
HR and Personnel Management
Staff Recruitment
Fee Remission/Scholarship Scheme
Criteria for Awarding Fee Remission &
Publicity
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Major Observations –
HR & Personnel Management (1)
Staff Recruitment
Major observations:
No open recruitment
No proper records throughout different stages of staff selection process (e.g. final interview, trial teaching, etc.)
No records showing the use of pre-set criteria to assess candidates at different stages of staff
selection (e.g. screening applications, interview, etc.)
Major Observations –
HR & Personnel Management (2)
Staff Recruitment
Recommendations:
Conduct staff recruitment in a transparent, fair and open manner
Draw up policies and procedures on staff
recruitment, which include pre-set criteria for shortlisting and assessing candidates
Keep proper records throughout the selection process Reference:
• “Recommendations on Administration of Teaching Staff in Schools under DSS” from ICAC in the EDB’s circular letter dated 21.5.2007
• ICAC’s “Best Practice Checklist: Governance and Internal
Control in Schools” 14
HR & Personnel Management
Other reminder:
Check if there is school-based policy/
procedures on handling of staff grievances/
complaints
Reference:
• Item 6.3.9 of ICAC’s “Best Practice Checklist:
Governance and Internal Control in Schools”
Major Observations on the Management Aspects
General Administration of SMC/IMC
Declaration of Conflict of Interests
HR Management
Quality Assessment and Compliance
HR and Personnel Management
Staff Recruitment
Fee Remission/Scholarship Scheme
Criteria for Awarding Fee Remission &
Publicity
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Major Observations –
Fee Remission/Scholarship Schemes (1)
Criteria for Awarding Fee Remission Major observations:
Adopted eligibility benchmarks less favorable than those of the government financial assistance
schemes
Students were not granted fee remission or granted fee remission less favourable than government
financial assistance scheme owing to:
Miscalculation
Income proof provided by applicants (not recipients of Student Finance Office’s (SFO) financial
assistance schemes) not fully accepted/ not accepted
Major Observations –
Fee Remission/Scholarship Schemes (2)
Criteria for Awarding Fee Remission
Recommendations:
The set of eligibility criteria should be no less
favorable than the government financial assistance schemes across all levels of remission
Establish a check and balance mechanism to ensure that fee remission is offered in accordance with the school-based eligibility criteria
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Link to SFO’s website:
http://www.wfsfaa.gov.hk/sfo/en/primarysecondary/tt/general/assessment.htm
Fee Remission/Scholarship Schemes
Advice on adoption of eligibility criteria:
Review school-based eligibility criteria regularly
Consult and seek endorsement from SMC/IMC for any revisions of eligibility criteria
Set up a mechanism to check against the results of school-based assessment with students’
eligibility for Comprehensive Social Security
Assistance and SFO result – to uphold the no less favorable principle
Apply to EDB for exemption from the requirement to adopt eligibility criteria for fee remission
scheme no less favourable than those of
government financial assistance schemes, if
Major Observations –
Fee Remission/Scholarship Schemes (3)
Publicity
Major observation:
No sufficient transparency as required under paragraph 5 of EDBC No. 10/2012
Recommendations:
Application form for admission, letter offering admission, school website, school profile and prospectus (along with their attachments) should include where appropriate:
Details - school fee, eligibility criteria and levels of remission
Clear statement - needy students including those receiving assistance under CSSA and SFO could apply & be eligible for fee remission
Contact information – designated telephone number for enquiry
Reference: EDBC No. 10/2012 (para 5) 20
Fee Remission/Scholarship Schemes
Advice on publicity:
If for environmental reasons, the SMC/IMC and PTA find it will suffice to provide on the application form for admission, letter of offer, prospectus, etc.
a hyperlink through which details of the schemes can be obtained from the school website,
state clearly on the above admission documents that information sheet containing details of the schemes is available upon request
attach the information sheet to the application form for admission and letter of offer on a need basis
If general enquiry telephone no. is provided,
ensure that parents’ enquiries on the schemes
Points to note:
Consult parents on how the related information should be presented to ensure that it can be easily
understood by parents/
prospective parents
Fee Remission/Scholarship Schemes
Advice on publicity (con’t):
When being notified of students’ application results for financial assistance from SFO,
ensure eligible students are provided with an application form for fee remission.
To review school’s publicity of the schemes regularly,
refer to the updated Checklist on the Operation of the Fee Remission/ Scholarship Schemes in the Management Toolkit
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Sharing on good practices
& Case studies
Declaration of Conflict of Interest Sharing on good practices
Each staff member was asked to complete an annual declaration form to:
confirm if he/she had read and understood the school’s policy and procedures on declaration of conflict of interest (attached to the form/
circulated at school intranet)
report in particular if he/she and immediate family member had:
any direct or indirect financial interests in any organisation which had business
dealings with the school;
any kinship with the students and staff at school
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Declaration of Conflict of Interest Sharing on good practices (Con’t)
Separate section in the standard declaration form to record school’s decision in handling the declared conflict, with options such as:
Request the declarant to surrender the interest;
Rearrange the employee’s post or duty;
Others
To table a summary of cases of declared interests in the IMC meeting for
discussion/decision
Declaration of Conflict of Interest Case Study 1
A school manager was…
appointed as one of the members of the Tender Approving Committee (TAC) in a school year
a non-executive director of a travel agency which was one of the bidders in a
procurement of overseas study tour service
drew other members’ attention verbally to his perceived conflict of interest at the start of the TAC meeting
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Declaration of Conflict of Interest Case Study 1
Points to note: to keep a written record of the
disclosure as well as resolution with considerations of action(s) taken to handle the declared conflict even the conflict was verbally reported by school personnel.
Declaration of Conflict of Interest Case Study 2
Policy of a school:
Staff should declare in writing to the Principal when they, their family member(s) and close relatives, and personal friends have any direct or indirect interest in any person/
company which has business dealings with the school.
They should refrain from performing or getting involved in the duty which gives rise to a conflict.
The Panel Head of the English Department…
was assigned to be a recruitment board member for an English teaching post
one of the candidates was his former colleague in another school
reported the perceived conflict of interest in writing to the Principal
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Declaration of Conflict of Interest Case Study 2
Points to note: If it is decided the person with declared conflict should continue to discharge the duties, ….and, as and when necessary, there should be sufficient monitoring by senior staff or a second party to ensure impartiality (Para 4 of Annex 1 of EDBC No. 17/2012).
HR & Personnel Management Sharing on good practices
Separate sets of selection criteria to assess candidates:
for teaching and non-teaching positions respectively
in different stages of selection process, e.g. trial teaching/ other tests, 1
stinterview, final interview, etc. based on school background and needs
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Fee Remission/Scholarship Schemes
Government financial assistance schemes:
Extracts of SFO’s website:
Fee Remission/Scholarship Schemes
Government financial assistance schemes (2):
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Remission
Levels SFO’s benchmark ($) (3/4-member families)
100% 0-37552
(45460 / 41824)
50% 37553 -72611
Ineligible >72611
Fee Remission/Scholarship Schemes Case study 1
School-based scheme ($)
0-40000 40001 – 78000
> 78001
Fee Remission/Scholarship Schemes Case study 1 (Assessment)
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Remission
Levels SFO’s
benchmark ($) (3/4-member
families)
School-based
scheme ($) Assessment
100% 0-37552
(45460 / 41824) 0-40000 50% 37553 -72611 40001 - 78000 Ineligible >72611 > 78001
(40000 / 40000)
Fee Remission/Scholarship Schemes Case study 2
Remission
Levels SFO’s benchmark ($) (3/4-member families)
100% 0-37552
(45460 / 41824)
75% /
50% 37553 -72611
25% /
Ineligible >72611
School-based scheme ($) (3/4-member families)
0 - 40000 (45600 / 43000)
40001 - 51000 51001 - 69000 69001 - 79000
> 79001
Fee Remission/Scholarship Schemes Case study 2 (Assessment)
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Remission
Levels SFO’s
benchmark ($) (3/4-member
families)
School-based scheme ($) (3/4-member
families)
Assessment
100% 0-37552
(45460 / 41824) (45600 / 43000)0 - 40000
75% / 40001 - 51000
50% 37553 - 72611 51001 - 69000
25% / 69001 - 79000
Ineligible >72611 > 79001
69001 - 72611 69001 - 79000
37553 - 72611
Fee Remission/Scholarship Schemes Case study 3
Remission Levels
School’s point system 100% >=16
75% 11-15
50% 7-10
25% 4-6
<=3
Family situation:
4 members (with spouse and 2 depending children)
Family monthly income ($16500)
Housing expenses (monthly rent: $2000/
Monthly income Point
$0-17500 10
$17501-24500 6
$24501-30500 4
>$30501 0
Monthly rent/mortgage can be deducted from monthly income
Each spouse and depending child (excluding student-
applicant) can score 1 point
Fee Remission/Scholarship Schemes Case study 3 (Assessment)
Remission Levels
SFO’s benchmark ($) (3/4-member
families)
School’s point system
100% 0-37552
(45460/ 41824) >=16
75% / 11-15
50% 37553-72611 7-10
25% / 4-6
Ineligible >72611 <=3
Family situation:
4 members (with spouse and 2 depending children)
Family monthly income ($16500)
Housing expenses (monthly rent: $2000/ month)
Monthly income:
($16500-$2000)= $14500 10 points
2 points
If calculate by AFI mechanism:
$16500 x 12 / 4+1 AFI=$39600
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Monthly income Point
$0-17500 10
$17501-24500 6
$24501-30500 4
>$30501 0
Points to note:
No factors except the parents’ financial situation should be taken into consideration
Fee Remission/Scholarship Schemes Case study 4
Policy of a school:
Salary (including salary of applicant, applicant’s spouse and student-applicant’s unmarried sibling(s) residing with the applicant for full-time, part-time or temporary jobs, contributions to Provident Fund/ MPF)
SFO
Contact Us
School Administration 3 Section
Ms Amy CHENG 3509 7490 Ms Isabel WONG 3509 7459 Mr Brian YU 3509 7491 Ms Agatha PAU 3509 8552
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