Education Bureau 26 Nov 2013
Trading Operations in Schools and
Acceptance of Advantages and
Donations by Schools and their Staff
Trading Operations in Schools
Trading Operations in Schools
When schools in receipt of public funds operate or enter into any trading operations on the school premises, directly or indirectly, with any person for the supply of items exclusively to their students, they should
refer to relevant provisions of the Prevention of Bribery Ordinance and relevant EDB’s circulars to
ensure compliance with the necessary requirements;
obtain prior permission in writing from the approval authority.
Relevant Rules and Regulations
Prevention of Bribery Ordinance
EDB Circular No. 24/2008 - Trading Operations in Schools
EDB Circular No. 4/2013 – Procurement Procedures in Aided Schools
EDB Circular No. 14/2003 - Acceptance of Advantages and Donations by Schools and their Staff
Obtaining Prior Approval
Schools Approval Authority Managed
by SMC Permanent Secretary for Education Managed
by IMC Incorporated Management Committee
Prior permission is also required for subsequent changes to the approved SMC – School Management Committee
IMC – Incorporated Management Committee
Fundamental Principles
1. Freedom to Choose
No purchase or acceptance of paid services should be compulsory.
Parents or students should be properly informed of prices of the goods/services provided so that they can exercise discretion as to whether to acquire these goods/services elsewhere or not.
Examples
•Sale of items for the exclusive use of students in one particular school (e.g. items bearing
school badges)
•Sale of School Uniforms
•Sale of School Magazines
Should be kept at the minimum Free to choose
Free to choose
2. Acceptance of Advantages or Donations from Suppliers/ Contractors
Should not accept advantages or donations from suppliers/contractors in general
Should be considered only in very exceptional circumstances with COMPELLING reasons and Should be approved by SMCs / IMCs
Examples
• The textbook publishers offer free teaching aids, supplementary teaching resources, floral baskets, scholarships, etc to schools.
(Ref: EDBC No.42/2013 “Selection of Quality Textbooks and Curriculum Resources for Use in Schools)
• The tuckshop operator provides free drinks for school staff in a sports day.
Should NOT Accept
3. Use of Profits/Net Income
The profits/net income arising from trading operations
should be applied for the purposes of directly benefiting the students of the schools;
should not be transferred to any third parties including Parent-Teacher Associations (PTAs) or School Sponsoring Bodies (SSBs).
Examples
• A PTA was delegated to handle certain trading operation on behalf of school, the profits/net
income arising from such trading operation were credited into the PTA’s bank account and later partly used to sponsor a PTA activity.
NOT Appropriate
4. Quotation/Tendering Exercise
Schools should adopt an open, fair and competitive system to select goods and services provided by suppliers/contractors:
At regular intervals
Preferably not exceeding three years
to maintain the qualities of the paid services and
Points to Note (1)
Trading Operations Arranged/Undertaken by PTAs and SSBs
PTAs and SSBs should –
Obtain prior delegation from SMCs or IMCs;
Observe the principles and arrangements as set out in EDBC No. 24/2008 and EDBC No.
4/2013.
Trading Operations Arranged/Undertaken by PTAs and SSBs (Cont’d)
If PTAs or SSBs wish to undertake trading operations in schools,
they should be treated as one of the bidders ;
the procurement procedures should be conducted by schools; and
EDBC No.4/2013 should be observed.
Points to Note (2) Profit Limit
No profit would be generated from sale of textbooks.
The profit from sale of exercise books, school uniforms, stationery, equipment and other items (other than textbooks) should be limited to 15% of the cost price at which they are purchased from the suppliers.
The profits should be applied for the purposes of directly benefiting the students of the schools.
Points to Note (3)
Monitoring Trading Operations
Schools are recommended to form Monitoring Committee(s) on Trading Operations to:
conduct quotations/tendering exercise in selecting suppliers /contractors according
to the provisions stipulated in the EDB Circular No. 4/2013 or the school-based procurement policy,
review regularly the goods/services provided by the suppliers/contractors;
investigate into complaints about trading
Points to Note (4)
Sexual Conviction Record Check
Schools are advised to
request staff who are deployed by suppliers/contractors to work in schools frequently
/ regularly to undergo Sexual Conviction Record Check and to allow schools to have access to the checking results
Applications for SCRC should be submitted by the staff concerned voluntarily
Website of SCRC:
http://twdc.police.gov.hk/ppp_en/11_useful_info/scrc.html
Selection of Suppliers/ Contractors
Approval of Trading Operations
Monitoring of Services
Key Process
Reference Materials
1. www.edb.gov.hk> School Administration and Management>
Financial Management > About Financial Management> Reference Matters on Trading Operations
2. http://www.icac.org.hk
(i) Best Practice Checklist- Governance and Internal Control in Schools (防貪錦囊-學校管治與內部監控)
Acceptance of Advantages and
Donations by Schools and their Staff
Acceptance of Advantages and Donations
SMCs/IMCs should formulate clear policies for schools and their staff on acceptance of advantages and donations.
SMCs/IMCs never permit schools and their staff to solicit advantages.
Acceptance of Advantages and Donations
By School:
Should not jeopardize the interests of students
Should be approved by SMCs/IMCs
Should be expended on schools and for educational purposes only
Should consider carefully whether donations giving rise to actual or perceived conflict of interest
Should take into consideration any recurrent costs
Acceptance of Advantages and Donations
By School (Cont’d):
Should register details of all donations and record them in the School Report
Proper donation records should be made available at all times for public inquiry and for EDB’s inspections
(Should state in the Register of Donations Received by Schools the COMPELLING reasons for acceptance
Proper Records
Compelling reasons for accepting the donation if the donor is one of the school’s
suppliers/contractors
SMC’s/IMC’s Approval
(School’s reference no. and date)
Acceptance of Advantages and Donations
By Staff:
Individual staff may be allowed to accept gifts from parents, colleagues or students on special occasions (such as graduation ceremony, retirement, resignation, etc) in accordance with the policy endorsed by SMCs/IMCs.
SMCs/IMCs should therefore set maximum cash value for these gifts and make it known to related parties.
SMCs/IMCs formulate clear policies for schools and their staff on acceptance
of advantages and donations
Approval of Acceptance
Records of Donation
Key Process
Conflict of Interest
Guidelines on declaration of conflict of interest are formulated and endorsed by the SMC/IMC so as to avoid any actual or perceived conflict of interest.
SMCs/IMCs should require SMC/IMC members and school staff to make declaration of pecuniary or other personal interests annually.
Schools are required to properly record any declarations or disclosures made.
Fund-raising Activities in Schools
Guidelines on fund raising activities are formulated, endorsed by the SMC/IMC and implemented properly.
Parents and students should be properly informed of the objectives of the fund-raising activities and usage of the funds raised.
Participation of students or donations by
Fund-raising Activities in Schools (Cont’d)
PSEd has given schools the permission to conduct the following fund-raising activities:
(i) raise funds for approved charitable institutions or trusts of a public character exempt from taxes under Section 88 of the Inland Revenue Ordinance,
(ii) raise funds for own schools purposes, and
(iii) allow students to assist in the above fund
raising activities outside school premises.
However, other organizations which intend to raise
Fund-raising Activities in Schools
Approval from other government authorities is also required, depending on the nature and form of activities.
A financial statement of each fund-raising activity should be properly compiled and displayed for a reasonable period of time on the school’s notice board.
Please refer to “Fund-raising Activities in Schools” for more relevant requirements.
Reference Materials on EDB Homepage
www.edb.gov.hk> School Administration and Management> Financial Management > Notes to School Finance> References on Acceptance of Advantages and Donations by Schools and their Staff
For enquiries, please contact your respective Senior School Development Officers.
