Expanded Operating Expenses Block Grant User Guide for Aided Schools which have established an Incorporated Management Committee (IMC)

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Expanded Operating Expenses Block Grant User Guide

for Aided Schools which have established an

Incorporated Management Committee (IMC)

Education Bureau Updated in August 2022

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2. The EOEBG is provided to aided schools in the school year following their establishment of the IMCs. More non-salary recurrent grants that are formerly outside the Operating Expenses Block Grant (OEBG) are included in the EOEBG. The full list of constituent grants under the EOEBG is set out at Annexes A and B. The EOEBG includes virtually all non-salary recurrent grants to aided schools, except those which are ad-hoc in nature, those which are currently under review, and those which are paid for very specific purpose on a reimbursement basis. The demarcation between the General Domain and Special Domain adopted in the OEBG is removed in the EOEBG, with the exception of some specified grants e.g. Capacity Enhancement Grant. The EOEBG is provided as one block grant and schools are free to deploy the funding flexibly.

3. Similar to the OEBG, schools may use the surplus under the EOEBG on items chargeable to other Education Bureau (EDB) subsidies outside the EOEBG. In addition, schools may use the surplus to top up non-recurrent expenses for projects approved/funded by EDB. However, schools should not take out a large amount of surplus under the EOEBG to top-up a single project, which might affect the opportunity for students to enjoy other educational resources they are entitled to. Subject to certain limits, schools may also use the surplus to top up recurrent expenses arising from other government-funded projects, furniture and equipment and other facilities or educational services acquired through private donations or other fund-raising schemes.

4. The computation and annual adjustment of provision of the EOEBG are simplified and based mostly on the number of approved classes, except for some school specific grants. School specific grants are grants that are of special nature and only applicable to selected schools with special circumstances. They will continue to be determined separately in accordance with the prevailing criteria applicable to each of these grants.

Ambit

5. The EOEBG covers ambits of all its constituent grants. It can be used for purposes related to teaching and learning, operation and development of the schools.

For example, schools may use the EOEBG to cover expenditure incurred from operating costs such as telephone and electricity charges of the schools, procurement of consumables and teaching aids, conduct of educational programmes for their students, hiring of staff outside permanent staff establishment, procurement of stores, furniture

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and equipment, cleansing, security and other necessary services. It can also be deployed to finance professional development for their staff and other educational purposes endorsed by the IMCs. For employment of staff, all expenditure related to salaries, leave entitlement and statutory benefits such as Mandatory Provident Fund (MPF), Long Service Payment and Severance Payment can also be covered by the EOEBG.

Principles and rules on usage

6. In exercising the flexibility in the use of resources, schools are required to consider carefully the interests of both students and staff. The annual provision of government subvention should be sufficient for schools to cover all operating expenditure. Schools should have sound financial planning and good budgeting in utilizing government funding in order to meet the needs of current students as well as school development and various policy priorities. Schools are reminded to establish effective financial management processes in order to deploy their resources in a cost- effective and timely manner and to ensure that expenditures incurred are reasonable and necessary for educational purposes. While schools may retain up to twelve (12) month’s provision under the EOEBG, they are not expected to keep too much surplus without specific purposes. Starting from the 2012/13 school year, schools may use the surplus of the EOEBG for the payment of statutory holidays/annual leave arising from the following types of specific no-pay leave¹ for their staff remunerated under Salaries Grant :

(a) no-pay sick/maternity/special tuberculosis leave (referred to as no- pay sick leave);

(b) no-pay study leave for attending education-related courses;

(c) no-pay leave granted due to poor health condition with medical documentary proof; and

(d) no-pay leave granted for alleviating the redundancy problem of an individual school/schools under the same Sponsor (prior confirmation from the School Development Officer concerned is required).

For no-pay leave other than the above listed, schools should take own responsibility to fulfill all statutory requirements including meeting any possible expenditure out of non- government funds.

7. Schools may use the EOEBG to subsidise students’ participation in local/overseas learning activities/competitions, which may cover accommodation and travelling expenses according to the principles on usage of the EOEBG. Such arrangement should cover students’ participation nominated by schools, but not those merely at the request by students; in the circumstances that the students receive

1 Prevailing procedures should be followed in approving no-pay leave to staff in schools. Schools should retain all supporting documents for payment arising from the above specific no-pay leave for record and inspection, if required.

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sponsorship from other sources at the same time, the subsidy provided by schools should not be provided in full in order to avoid double subsidy. Schools are reminded to use their resources in a prudent manner with endorsement by the IMC and they have to justify that expenditures incurred are reasonable and necessary for educational purposes.

Also, they have to establish effective financial management processes in order to deploy their resources in a cost-effective and timely manner. Schools are reminded that all journeys for students’ participation in local/overseas learning activities/competitions should be made by the most appropriate and economical mode of transport having regard to operational needs.

8. Schools must not use the provision to procure services or materials merely to drill students for assessments. Expenditures on celebration, entertainment, flower baskets, fruit baskets, wreaths and all other similar items for ceremonial activities or tributes to other schools should be kept to the absolute minimum. When procuring furniture and equipment items, schools should observe the principles of prudence and propriety in the management of resources and have proper checks and balances to safeguard the use of funds in view of their future development. In addition, schools must ensure that any recurrent consequences arising from exercising funding flexibility will be absorbed within the EOEBG or met by schools’ own funds.

9. In utilizing the funding flexibility of the EOEBG, schools are requested to take notice of the following:

a. Schools should ensure that the total spending should be kept within the amount of provision and avoid deficits as far as possible. Any deficits arising should be borne by the school’s own funds.

b. Subsidy will continue to be provided for Provident Fund (PF)/MPF contributions in respect of janitors, clerical and other supporting staff employed within the provision allocated for Administration Grant/Revised Administration Grant². (An illustration of how the PF/MPF contributions will be met by the subsidy from EDB and from the school's own funds is at Annex C.)

c. Surplus under the EOEBG can be used to top up no more than:

i. 50% of recurrent cost arising from government-funded projects e.g.

maintenance fee for computers bought with the Quality Education Fund;

and

ii. 25% of recurrent cost arising from furniture and equipment and other facilities or educational service acquired through private donations or other fund-raising schemes e.g. expenses on toner for printers from private donations.

In this connection, schools are required to establish proper procedures, objective criteria and clear approving authority for transferring the surplus out of the EOEBG.

2 Including Administration Grant for Additional Clerical Assistant for aided secondary schools.

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10. If schools deploy the school specific grants such as Capacity Enhancement Grant or Administration Grant/Revised Administration Grant or provision of baseline reference under the EOEBG to employ staff, they should set aside part of these grants/provision of baseline reference for the payment of Severance Payment/Long Service Payment³ as outstanding commitment. In case the funds are insufficient to settle the payment, schools may deploy surplus under the EOEBG to cover the deficit.

Schools should keep a separate ledger for the Severance Payment/Long Service Payment and work out the amount payable to each staff concerned on their cessation of service.

(Guidelines for calculating Severance Payment/Long Service Payment are at Annex D.) 11. Schools are reminded that non-education related expenditures as listed below are not allowed to be charged to the EOEBG:

i. provision of souvenirs to their teachers/any other staff;

ii. the cost of purchase/installation of air-conditioners in their classrooms/special rooms/halls/any other rooms, which are not related to any EDB approved programs (such as confirmed “eligible facilities” under the Air-conditioning Grant);

iii. the cost of electricity, repairs, replacement, maintenance and related expenditure for air-conditioners or any other equipment not eligible for EDB funding. Also, if schools collect air-conditioning fees from their students, the respective electricity charges and maintenance expenditure should not be charged to any funding from EDB;

iv. any additional salaries to their serving teachers from Capacity Enhancement Grant (CEG) for teaching tutorial classes to their students;

v. entertainment expenses such as lunch/dinner for staff not related to discharge of duties⁴;

vi. fringe benefits/welfare for staff, including housing benefits, provision of food

3 Separate subsidies are provided to aided primary, aided secondary and special schools to pay the Long Service Payment for non-teaching staff employed under Administration Grant/Revised Administration Grant. Aided primary and special schools may also claim reimbursement of the Severance Payment for these staff following the prevailing procedures. As for aided secondary schools, the Severance Payment of the non-teaching staff should be paid through Administration Grant, which is not reimbursable.

4 As a guiding principle, entertainment expenses such as lunch/dinner for staff should not be charged to the EOEBG or any school funds account. However, under school-based management, the IMC may approve expenses on entertainment according to the needs and policy priorities of the school on condition that the expenditures incurred are reasonable and necessary for educational purposes and met in a cost-effective manner.

In this connection, the expenses in respect of breakfasts/lunches/dinners incurred by school staff in relation to their discharge of duties in major school functions such as School Anniversary Dinner, Parent Teacher Association Annual Dinner, etc. can be charged to the EOEBG. Schools are required to avoid lavishness and to make conscientious decision in providing such expenses. The limits of such expenses per occasion and per head are

$150 for breakfast, $350 for lunch and $450 for dinner with service charge and tips included. The IMC is required to provide full justifications if the expenses exceed these limits.

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or food allowance, medical expenses, travelling expenses⁵, etc.;

vii. penalty charges, fines and interest payments;

viii. loans to staff or third parties;

ix. subscription to staff associations and professional bodies;

x. write-offs e.g. overpayments;

xi. administrative and management expenses, including salaries of staff, of the headquarters or other service units of the school sponsoring body;

xii. donations;

xiii. the cost of travelling, accommodation, provision of food and related expenses for staff in local/overseas visits that are for the purpose of leisure, instead of training; and

xiv. any other items announced via Circular/Circular Memorandum issued by EDB from time to time.

In the event that expenditure is found improperly charged to the EOEBG, EDB shall request the school concerned to explain the anomalies. In the absence of acceptable explanation, the school should make good such expenditure by charging it to its own funds.

Computation and adjustment

12. For existing aided schools, the EOEBG will apply starting from the next school year following the establishment of IMC. For new schools, the EOEBG will apply when the schools come into operation.

13. For existing and new schools, the level of provision is normally computed as follows:

(i) for existing schools

A snapshot of the aggregate of prevailing provision of the constituent grants, other than the school-specific grants mentioned above, of each

5 The IMC may approve travelling expenses for teachers (including related staff/caretakers of special schools, where appropriate) escorting students in study tours in relation to their discharge of duties, as well as the travelling expenses for staff on official duty or training (unless otherwise specified in the relevant guidelines issued by EDB), both local and overseas, on condition that the expenses incurred are reasonable, necessary for educational purposes and met in a cost-effective manner. The expenses can be charged to the EOEBG. However, travelling expenses incurred on journeys between home and school are normally not reimbursable. Schools are reminded that all journeys for official duty or training should be made by the most appropriate and economical mode of transport having regarded to operational needs. Schools should critically assess the necessity of providing related expenses and allocate appropriate resources according to their needs and policy priorities. They are reminded to follow established processes in approving such expenses.

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school concerned in the immediate past school year before the application of the EOEBG will be taken. This snapshot will be taken as level of provision and known as the Baseline Reference. In subsequent years, the Baseline Reference will be adjusted in accordance with the June-on- June movement of the Composite Consumer Price Index (CCPI) each year as well as the change in the number of approved classes multiplied by the Average Per Class Rate at the time. That is,

Provision of EOEBG = Baseline Reference + School Specific Grants

where

Baseline Reference = Original Baseline Reference annually

adjusted by CCPI + Per

Class x Rate

Change in number of classes

However, if schools undergo major changes such as reprovisioning of school premises, the Baseline Reference may be duly adjusted to reflect the latest development or the computation method for new schools may be applied.

(ii) for new schools

For a new aided school, the level of provision will be determined by a Basic Provision (A) and the Average Per Class Rate (B) multiplied by the number of approved classes (N). That is,

Provision of EOEBG = A + B x N + School Specific Grants

14. The values of the A, B and rates for school specific grants will also be adjusted by the CCPI. Schools may refer to http://www.edb.gov.hk/eoebg-e for the up-to-date rates of A and B. In addition, the Permanent Secretary for Education (PS(Ed)) may adjust these rates as the situation merits, e.g. schools having more than one lift incurring higher maintenance charges, with the Set-up Fund account not being closed or whether the school is fee-charging or not.

Option for developing schools

15. For aided schools that are newly operated or in the midst of their development stage and have yet to attain the full range of levels of classes, they may opt for the method for the new schools or continue to adopt the method for the existing schools when they establish their IMCs. The option is irrevocable.

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Composition of constituent grants

16. Where necessary to reflect the changing educational needs, PS(Ed) may amend the constituent grants under the EOEBG, such as adding new grants for new education initiatives, deleting obsolete grants, subsuming school-specific grants into the Basic Provision (A) and/or the Average Per Class rate (B) or vice versa.

Accounting arrangements

17. Schools are required to keep a separate ledger to clearly record all the income and expenditure chargeable to the EOEBG. While the demarcation of the General Domain and Special Domain is removed, schools are advised to take into consideration that schools may be required to report on the expenditure specified for programmes under certain school specific grants like Capacity Enhancement Grant. As such, schools are also advised to keep separate sub-ledger for all school specific grants so as to facilitate reporting requirements, where necessary.

Payment Schedule

18. Generally speaking, the annual provision of the EOEBG will normally be released to schools on a quarterly basis in September, November, February and May.

Each payment shall normally be of an amount equivalent to three months’ provision.

For certain school specific grants where the level of provision cannot be ascertained at the beginning of a school year or in the event of overpayment, adjustment or other special circumstances, the payment schedule and the amount of payment will be adjusted as appropriate.

19. In view of the fact that schools may establish the IMC at different times, the initial payment arrangement is as follows:

a. For existing aided schools with IMC established between 1 September and 31 July of current school year, the EOEBG payment will start to be provided in September of the next school year and no OEBG will be paid in August.

b. For existing aided schools with IMC established between 1 August and 31 August, the schools will then receive the subsidies in August based on the OEBG formula. In November, the difference between the subsidies under the OEBG and EOEBG formula will be adjusted and then be shown on the EOEBG Allocation Advice sent to the schools.

c. For new schools with IMC starting operation in September, the EOEBG grant will be paid in September of the first school year of operation.

Surplus retention

20. Schools may retain a maximum amount of surplus of up to twelve (12) months’

provision of the EOEBG for the current year (excluding funds set aside as outstanding commitment for the payment of Severance Payment/Long Service Payment for staff as

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mentioned in paragraph 10 above). PS(Ed) may under exceptional circumstances agree that individual schools can retain surplus in excess of this level.

Accountability

21. The implementation of the EOEBG gives schools greater autonomy in deployment of resources and, in turn, the delivery of education to their students. The quid pro quo to such autonomy is that schools have to be more transparent and accountable to the community for their performance and the use of funds. Schools must establish an accountability framework under which there are sufficient checks and balances to guard against any untoward developments. Two of the key elements of a proper accountability framework are schools’ internal self-regulation and external monitoring. Self-regulation takes place through annual planning, budgeting, regular financial reporting and review by the schools themselves.

22. For external monitoring, schools are advised to disclose financial information properly in their School Report, which is to be uploaded onto the website of the schools.

In addition, the IMCs are required to submit to EDB their annual audited accounts including the information as required by EDB by the due date, which will have been audited by a certified public accountant (practising) as defined in the Professional Accountants Ordinance (Cap. 50). To enhance transparency, schools are encouraged to upload their audited accounts onto their websites.

23. An IMC of a school is responsible for the proper management, administration and operation of the school. It handles funds and assets received from the Government in the capacity of a trustee. Therefore, it is obliged to hold accountable for any improper use of the public resources.

Support

24. To support the IMCs in stepping up their accountability mechanism in the wake of increased funding flexibility, reference materials on financial management (including, amongst others, the establishment of an internal control mechanism and an external control mechanism) are uploaded to EDB homepage at Corner for IMC Schools.

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Annex A List of Grants under the EOEBG in Aided Schools

Serial

No. Grant Applicable School

Specific Pri Sec

1 Moral and Civic Education  No

2 Putonghua  No

3 Administration Grant for Additional Clerical Assistant   No 4 Administration Grant/Revised Administration Grant   Yes 5 Air-conditioning Grant for Preparation Room of Laboratories  No

6 Capacity Enhancement Grant   Yes

7 Composite Furniture and Equipment Grant*   No

8 Composite Information Technology Grant   Yes

9 Enhancement Grant   No

10 Lift Maintenance Grant   No

11 Air-conditioning Grant   Yes

12 Programme Funds for Whole-school Approach to Guidance and Discipline   No

13 Recurrent English Language Grant  No

14 Refund of fees for certificates on fire safety*   No 15 Refund of fees for certificates on structural safety*   No

16 School and Class Grant   No

17 School Curriculum Development Grant  No

18 School-based Support Scheme for Newly Arrived Children   Yes 19 Student Guidance Service Grant (including Top-up Student Guidance Service Grant)  Yes

20 Supplementary Grant   No

21 Training and Development Grant   No

22 Understanding Adolescent Project (Primary) Grant  Yes

23 Boarding Grant  Yes

24 Practical/Technical Subjects  No

25 Enhanced Speech Therapy Grant  Yes

26 Consolidated Subject Grant  No

27 School-based Educational Psychology Service Grant   Yes

28 School-based Management Top-up Grant   Yes

29 School-based Speech Therapy Administration Recurrent Grant   Yes 30 Base School School-based Speech Therapy Administration Recurrent Grant   Yes

* Grants formerly outside the existing OEBG and now included in the EOEBG.

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Annex B List of Grants under the EOEBG in Aided Special Schools

Serial

1 Moral and Civic Education  No

2 Practical/Technical Subject  No

3 Putonghua  No

4 Activities Grant for Maladjusted Children   Yes 5 Administration Grant/Revised Administration Grant   Yes 6 Administration Grant for Additional Clerical Assistant   No 7 Air-conditioning Grant for Preparation Room of Laboratories  No

8 Air-conditioning Grant   Yes

9 Boarding Grant   Yes

10 Top-up Boarding Grant   Yes

11 Capacity Enhancement Grant   Yes

12 Composite Furniture and Equipment Grant*   No

13 Composite Information Technology Grant   Yes

14 Computers as Communication/Rehabilitation Aids**  No 15 Computers for Assisted Learning Activities**  No

16 Enhancement Grant   No

17 Lift Maintenance Grant*   No

18 Maintenance Grant for Sewage Treatment Plant   Yes 19 Programme Funds for Whole-school Approach to Guidance and Discipline   No 20 Refund of fees for certificates on fire safety*   No 21 Refund of fees for certificates on structural safety*   No 22 Resource Material Grant for Visually Impaired Students   Yes

23 School and Class Grant   No

24 School Curriculum Development Grant  No

25 School-based Support Scheme for Newly Arrived Children   Yes

26 Supplementary Grant   No

27 Administration Grant for Enhanced Support Service for Students with Hearing Impairment   Yes

28 Training and Development Grant   No

29 Travelling Grant for Certificated Master/Mistress Teaching Home-bound Pupils   Yes

30 Travelling Grant for Resource Teachers   Yes

31 Understanding Adolescent Project (Primary) Grant  Yes

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Serial

32 Consolidated Subject Grant  No

33 School-based Management Top-up Grant   Yes

* Grants formerly outside the existing OEBG and now included in the EOEBG.

** For special schools only with primary classes.

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Annex C

Illustration of how the Provident Fund (PF) / Mandatory Provident Fund (MPF) contributions to be met by the subsidy

from EDB and from the school's own funds

Claim for School Year 20XX/XX Name of School : XXX School

Administration Grant entitlement : $1,221,000 (based on approved classes) Staff Basic Salary ($ ) Employer's PF/MPF Contributions ($)

5% 10% 15% Remark

A 122,100 - - 18,315

B 122,100 - - 18,315

C 122,100 - - 18,315

D 122,100 - - 18,315

E 122,100 - - 18,315

F 122,100 - - 18,315

G 119,760 - 11,976 -

H 117,420 5,871 - -

I 122,100 - 12,210 -

J 122,100 - 12,210 -

K 117,420 5,871 - -

L 2,800 - - - Part-time

Total 1,334,200 11,742 36,396 109,890

Total Employer's PF/MPF contributions paid by the school = $158,028.

EDB's calculation for subsidy on Employer's PF/MPF contributions in respect of ·

Administration Grant

Staff Basic

Salaries ($)

PF/MPF Contributions

Percentage

Subsidy on Employer's PF/MPF Contributions ($)

A 122,100 15% 18,315

B 122,100 15% 18,315

C 122,100 15% 18,315

D 122,100 15% 18,315

E 122,100 15% 18,315

F 122,100 15% 18,315

I 122,100 10% 12,210

J 122,100 10% 12,210

G 119,760 10% 11,976

H 117,420 5% 5,871

K 7,020 5% 351

Administration Grant

entitlement 1,221,000 Paid by EDB 152,508

K Paid by school * 110,400 5% 5,520

L Paid by school * 2,800 N.A. 0

1,334,200 158,028

* Or out of EOEBG surplus fund.

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Annex D Guidelines for calculating the Severance Payment and Long Service Payment

for staff paid under the EOEBG

1. Severance Payment and Long Service Payment are paid in accordance with the eligibility criteria stipulated in the Employment Ordinance. The criteria are –

(a) Severance Payment*

In continuous employment for not less than 24 months prior to dismissal by reason of : (i) redundancy ; or

(ii) not renewing an employment contract of a fixed term due to redundancy** ; or (iii) lay-off.

(b) Long Service Payment*

In continuous employment for not less than 5 years prior to termination of service by reason of : (i) dismissal for reasons other than redundancy or summary dismissal; or

(ii) not renewing an employment contract of a fixed term ** ; or (iii) death; or

(iv) resignation on ground of ill health ***; or

(v) resignation at the age of 65 or above on ground of old age.

* Separate subsidies are provided to aided primary, aided secondary and special schools to pay the Long Service Payment for non-teaching staff employed under Administration Grant/Revised Administration Grant. Aided primary and special schools may also claim reimbursement of the Severance Payment for these staff following the prevailing procedures. As for aided secondary schools, the Severance Payment of the non-teaching staff should be paid through Administration Grant, which is not reimbursable.

** If not less than 7 days before the date of dismissal/expiry of the fixed term contract in case of severance payment, and not less than 7 days before the expiry of the fixed term contract in case of long service payment, the employer has offered in writing to renew the contract of employment or re-engage him under a new contract but the employee has unreasonably refused the offer, the employee is not eligible for the entitlements. An employee will NOT be simultaneously entitled to both long service payment and severance payment.

*** The employee should be certified by a certificate in the form specified by the Commissioner for Labour and issued by a registered medical practitioner or a registered Chinese medicine practitioner as permanently unfit for the present job.

2. The following should be noted in paying the Severance Payment/Long Service Payment to staff employed under the EOEBG :

(a) the salaries must be fully subvented by government ;

(b) the period of service counted in the calculation of Severance Payment/Long Service Payment must be covered by government subsidies ;

(c) any gratuity and/or employer’s contribution together with interests/dividends in Provident Fund Schemes/Mandatory Provident Fund must be set off from the total amount of Severance Payment/Long Service Payment entitlements ;

(d) reference should be made to the Employment Ordinance for determination of an individual’s eligibility of Severance Payment/Long Service Payment ; and

(e) Severance Payment shall be paid to the employee as soon as practicable and not later than 2 months from the receipt of a notice of claim made by the employee. Long Service Payment shall also be paid to the employee as soon as practicable but in any case not later than 7 days after the day of termination of employment.

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3. Method of calculation

= (Last month’s wage x 2/3) x reckonable years of service offset by the accrued benefit of employer’s contribution to Provident Fund (PF)/Mandatory Provident Fund (MPF) or Gratuity

(The maximum amount of severance payment/long service payment for employees whose employment terminated on/after 1.10.2004 is HK$390,000. Service of an incomplete year should be calculated on a pro rata basis.)

 the sum should not exceed 2/3 of $22,500. An employee may also elect to use his average wages in the last 12 months for the calculation.

Example : Ms Wong has worked continuously as a teaching assistant in ABC Secondary School for 5 years.

The amount of Severance Payment/Long Service Payment should be calculated as follows :

Last month’s wage : $13,485

Years of service : 5

Total wages earned in the past 5 years : $763,305 Accrued benefit of employer’s contribution to

PF/MPF/Gratuity : $38,165

Calculation of payment : $13,485 x 2/3 x 5 – $38,165 = $6,785

4. Schools should keep an updated register of staff employed under the EOEBG, with their names, posts, grant under which employed, first appointment date, last employment date, years of service, last month’s wage, total wages earned, accrued benefit of employer’s contribution to PF/MPF/Gratuity in the current school, amount of Severance Payment/Long Service Payment set aside as outstanding commitment, actual payment, net outstanding amount and account to defray outstanding amount, etc.

Example: ABC Secondary School - Register of staff employed under EOEBG and their Severance Payment/

Long Service Payment as at 31.8.2023

# The accrued benefit of employer’s contribution to PF/MPF/Gratuity may be more than or less than 5%

* Figures are rounded up to the nearest whole number

5. Schools should keep a separate ledger for the Severance Payment/Long Service Payment and set aside an appropriate amount of the EOEBG as outstanding commitment for the staff employed under the EOEBG. Schools may also consult external auditors for details, including how and when the provisions should be made or adjusted.

No Name of staff

Post Grant under which employed

First Appointment

Date

Last Appointment

Date

Years of Service

as at 31.8.23

Last month's

wage (HK$)

Total wages earned

in the service (HK$)

Accrued Benefit of Employer's Contribution

to PF/MPF^# (HK$) (i) x 5%

Gratuity^# (HK$)

Severance Payment/

Long Service Payment as outstanding Commitment^*

(HK$) (h) x 2/3 x (g) - (j1) -

(j2)

Actual Payment paid (HK$)

Net outstanding

amount (HK$) (k) - (l)

Account to defray outstanding amount for

Severance Payment/

Long Service Payment

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j1) (j2) (k) (l) (m) (n)

1 Ms A Teaching Assistant

CEG 1.9.2018 5 13,485 763,305 38,165 0 6,785 0 6,785 CEG

2 Ms B Clerk AG 1.11.2018 31.8.2023 4 yrs &

10 mons.

10,946 600,143 30,007 0 5,264 (Severance

Payment)

5,264 0 AG &

surplus under EOEBG

Total 12,049 5,264 6,785

Expanded Operating Expenses Block Grant User Guide for Aided Schools which have established an Incorporated Management Committee (IMC)