SUPPLEMENT TO SCHOOL ADMINISTRATION GUIDE

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SUPPLEMENT TO

SCHOOL

ADMINISTRATION GUIDE

(September 2012)

Education Bureau

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Contents

Background 1

List of New/Revised Administrative Procedures for Aided IMC Schools 3 Appendix A Guiding Principles and Procedures for Handling Cases

of Withholding Salary Increment of Staff

18

Appendix B Expanded Operating Expenses Block Grant (EOEBG) 21

Appendix C Teacher Relief Grant (TRG) 26

Appendix D Guiding Principles and Procedures for Direct Appointment of Staff to Promotion Ranks

29

Appendix E Principles for Identifying, Deployment and Arrangement of Redundant Teachers

31

Appendix F Guiding Principles in Handling Change of Rank/

Stepped-down Cases

33

Appendix G Grant/Subsidized Schools Provident Fund for Teachers 37

Appendix H Guidelines for Granting of Leave 39

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Background

1. With effect from 1 September 2005, newly established Incorporated Management Committee (IMC) schools should try out the Code of Aid for Aided Schools (COA for Aided Schools) in which the IMC of an aided school is given greater management autonomy and flexibility in respect of administration of financial and staffing matters of the school. With the enhanced autonomy and flexibility enjoyed by IMC schools, some of the administrative procedures and practices in respect of school management detailed in the School Administration Guide (SAG), which is written for schools without IMC, may not be applicable to IMC schools.

Supplement to School Administration Guide

2. This supplement is written exclusively for aided IMC schools to provide the essential information which supplements the SAG on

 new administrative procedures, with detailed operational guide and procedural manual where necessary, on new measures introduced for aided IMC schools;

 revised administrative procedures on issues/measures with changes where the existing procedures as stipulated in the SAG are no longer applicable to aided IMC schools.

IMC schools and their management team must therefore read this Supplement in conjunction with the SAG.

3. Unless as specified in the “List of new/revised administrative procedures for aided IMC schools” detailed below, IMC schools should continue to refer to the operational procedures and guidelines on all other issues as prescribed in the SAG in establishing transparent and accountable administrative procedures and good practices in respect of school management. For this purpose and in this particular context, the term “School Management Committee” quoted in the SAG should also refer to Incorporated Management Committee.

4. This Supplement, as with the SAG, is compiled by making reference to circulars and instructions issued by the Permanent Secretary for Education (the Permanent Secretary) from time to time to assist schools in establishing proper and accountable administrative procedures and practices in respect of school management and staffing matters. Therefore, Incorporated Management Committees and their school management personnel should abide by such rules and requirements as promulgated in those circulars and instructions which are incorporated in this Supplement and the SAG.

5. All the administrative procedures and guidelines recommended in this Supplement

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are subject to revision taking into account the feedback from users on their application and operation. We welcome views and suggestions to improve this Supplement as well as the SAG.

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List of New/Revised Administrative Procedures for Aided IMC Schools Section in

COA for Aided Schools

Issue Relevant provision in the SAG

New/Revised Administrative Procedures for Aided IMC Schools

5.6(a) Roles and responsibilities of an IMC in dealing with complaints from staff and the public

Section 4.4 on

“Strategies for handling

complaints” and section 7.9 on

“Handling staff complaints”

All relevant sections and provisions in the SAG still stand.

10.1(b) Award/withhold of incremental credit

Section 7.8.3 on

“General principles in taking disciplinary actions”

All relevant sections and provisions in the SAG are applicable with the following revisions:

Paragraph 3 of section 7.8.3 is revised to read as follows:

3. Subject to the provisions of the Employment Ordinance (EmO) and the Code of Aid, the IMC may decide on the appropriate disciplinary action to be taken in managing staff performance including:

a. withholding an annual increment (IMC should refer to the principles and procedures set out in Appendix A (of the Supplement to the SAG) in handling cases of withholding salary increment of staff);

b. suspending a teacher from normal duties;

c. dismissal; and d. summary dismissal.

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Section in COA for

Aided Schools

4. Schools must comply with the following requirements stipulated in the Code of Aid:

a. the procedures for dismissal; and b. the payment of salaries on

termination of service.

10.2(a) Expanded Operating Expenses Block Grant

Section 6.2.1 on

“Government subventions”

Paragraph 2.b on “Operating Expenses Block Grant (OEBG)” is replaced by the following:

b. Expanded Operating Expenses Block Grant (EOEBG)

 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 purposes on a reimbursement basis.

 Schools can use this block grant for purposes related to teaching and learning, operation and development of their schools. It can also be deployed to finance professional development of their teaching staff and any other educational purposes endorsed by the IMCs. Details on the principles and rules on usage are set out in Appendix B (of the Supplement to the SAG).

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“Composite Furniture and Equipment Grant”

Paragraph 2.e on “Composite Furniture and Equipment Grant” is replaced by the following:

e. Composite Furniture and Equipment Grant

This grant has been included in the EOEBG.

10.2(b) Other Grants – Teacher Relief

Grant

Nil The following is added after paragraph 2.g of section 6.2.1:

h. Teacher Relief Grant (TRG)

 The TRG is a cash grant provided to enhance schools’ flexibility in the deployment of manpower.

 The TRG consists of two components: a basic component which is an annual recurrent cash grant provided to schools for the appointment of supply teachers to cover approved leave of teachers of less than 30 days; and an optional component, for encashment of up to a maximum of 10% of the teaching establishment, on a temporary or permanent basis.

 Schools will have full flexibility in using the TRG to employ temporary teaching-related staff and procure education-related services, organise staff professional development and student learning activities.

 Details on the principles and rules on usage are set out in Appendix C (of the Supplement to the SAG).

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11 Non-Recurrent and Capital Grants

Section 6.4 on

“Procurement of goods and

services”, section 8.5 on

“Maintenance of school premises”

and section 8.6 on

“Alterations to school premises”

12.1 Government to carry the risk of damage or loss

Section 8.3.1 on

“Security measures in schools” and section 8.7 on

“Damage/loss to School Premises”

13.1 General rules and

requirements on appointment, promotion, resignation, retirement, termination and dismissal of staff

Section 7.2 on

“Appointment, regrading, promotion and acting

appointment” and section 7.3 on

“Staff selection”

13.2(b) Verify eligibility for appointment and assessment of salaries of staff paid under Salaries Grant

Section 7.4.2 on

“Verification of qualifications and experience”

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13.2(j) Medical and X-ray

examination before appointment

Section 7.4.1 on

“Physical check-up”

Section 7.4.1 is revised to read as follows:

1. The IMC should, in consideration of maintaining a healthy school environment and in the interest of the students, decide whether to require each staff member (other than supply staff paid on daily rate) to undergo a medical examination including a chest X-ray examination by a registered medical practitioner before appointment.

13.2(k) Letter of appointment or contract of service

Section 7.4.4 on

“Employment contract”

13.3(e) Direct

appointment of staff to

promotion ranks

Section 7.2.4 on

“Promotion and acting

appointment” and section 7.3 on

“Staff selection”

All relevant sections and provisions in the SAG are applicable with a new section added as follows:

7.2.5 Direct appointment of staff to promotion ranks

For direct appointment of staff to promotion ranks, the IMC should follow detailed procedures as set out in

“Guiding Principles and Procedures for Direct Appointment of Staff to Promotion Ranks” in Appendix D (of the Supplement to the SAG).

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13.6(b) Deployment of redundant teacher

Nil A new section is added as follows:

7.11 Deployment of redundant teacher When such circumstance arises that there is / are over-ranked principal / redundant teacher(s) in the school and that they have to be deployed to other schools operated under the same sponsoring body so as to avoid or alleviate over-establishment of staff as provided under section 40AG of the EO, the IMC should ensure that the deployment is conducted in an objective, fair and transparent manner.

The IMC should also ensure that the school has put in place a set of objective, fair and transparent

“school-based criteria” in identifying the sequence of teachers to become redundant before handling their deployment. Schools should refer to the procedures as set out in “Principles for Identifying, Deployment and Arrangement of Redundant Teachers” in Appendix E (of the Supplement to the SAG) in handling such cases.

13.7 Change of rank within grade

Nil A new section is added as follows:

7.12 Change of rank within grade

1. Change of rank within grade refers to such situation where a staff member (including principal of a school) steps down from a higher rank to a lower rank within his serving grade e.g. graduate or non-graduate grade.

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2. Such stepping down from a higher rank to a lower rank may arise in the following circumstances:

a. There is a reduction of classes which affects the headship entitlement and/or the number and rank of promotion posts of a school;

b. The staff member requests to step down from a higher rank voluntarily; or

c. The IMC requests a staff member to step down to a lower rank.

3. For stepping down of staff in the case of the third scenario above, the IMC must ensure that such case is handled conscientiously with the consent of the majority of the IMC members following the “Guiding Principles in

Handling Change of

Rank/Stepped-down Cases” as set out in Appendix F (of the Supplement to the SAG) and that all relevant legislations and ordinances have been fully complied with.

13.9(b) No-pay leave Section 7.5.3 on

“Leave matters”

All relevant sections and provisions in the SAG are applicable with the following revision:

Appendix 9 of Chapter 7

In the table on “Approving authority for granting of leave”, replace “No-pay sick leave, maternity leave and tuberculosis leave” under “Type of leave” of teaching staff by “All no-pay leave”.

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13.11(a) Employment of short-term supply staff

Section 7.2.1 on

“Appointment of teaching staff”

6. Appointment of supply teacher

a. With the introduction of the TRG, IMC schools are provided with an annual recurrent cash grant for the employment of fixed daily-rated supply teachers to substitute for teachers on approved leave lasting for less than 30 days. Application for reimbursement of payment for employment of supply teacher is no longer required.

b. Under the arrangement of the TRG, employment of supply teacher is no longer confined to teacher on approved leave for three consecutive calendar days or more.

Nevertheless, in most cases, the

“three consecutive calendar days”

criterion may still be taken as a point of reference if the IMC would like to maintain a prudent use of the TRG.

c. The IMC should ensure that fair and reasonable criteria for approving the employment of daily-rated supply teachers to substitute for teachers on approved leave have been put in place in the school and that such criteria are made open and consistently applied in handling arrangement of supply teachers for teachers on leave.

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d. For the employment of supply teachers paid on fixed daily rate basis, school should observe the principles set out in the “Guide to salary assessment” and relevant circulars announcing the daily rates of pay for supply staff issued from time to time.

13.12 Provident Fund and Mandatory Provident Fund

Section 7.5.4 on

“Provident Fund Scheme”

All relevant provisions in the SAG are applicable with the following revision:

Paragraph 1.a of section 7.5.4 is revised to read as follows:

a. All teaching staff are required to join the Provident Fund Scheme and contribute to either the Grant Schools Provident Fund or the Subsidized Schools Provident Fund, except for those aged over 55 on first appointment to aided schools, those employed on temporary basis, those employed on gratuity-bearing contract terms or those paid by grants other than the Salaries Grant. An extract from the Provident Fund Rules stating the benefits that a teacher-contributor may receive from the Fund is in Appendix G (of the Supplement to the SAG).

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14.1 &

14.2

Financial management

Section 6.6 on

“Internal control”

All relevant sections and provisions in the SAG are applicable with the following revisions:

Handling of income and expenditure

Section 6.6.3 on

“Handling of school income”

5. In accordance with Regulation 63 of the Education Regulations, a school without IMC shall issue official receipts with counterfoils or duplicate copies for every sum of money received. Aided IMC schools should refer to Section 6.2(iv) of the “Guide to Financial Management”.

The receipts should be in prescribed form, serially numbered, issued in sequence, dated and stamped with the school chop. They should also bear the name of the payee and the amount collected. The Supervisor as well as the Principal must ensure that the internal control system of the school is sound and effective to prevent fraud/misappropriation of funds and in particular all collections are promptly banked in and all collections are properly accounted for. In view of administrative difficulties which may be encountered by some aided schools, school may refer to the relaxed requirements for the issue of official receipts for the types of collection stated at Appendix 12 (of Section 6 of the SAG). However, separate receipts to students should be issued upon request.

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Bank/cheque accounts

Section 6.6.6 on

“Operating bank accounts and signing cheques”

2. For IMC schools, bank accounts (include Fixed/Time Deposits and cheques) should be operated by joint signatories of IMC managers but the School Supervisor being signatory is not mandatory. Aided IMC schools should refer to Section 5.2.4 of the “Guide to Financial Management”.

14.3(d) Fines, charges and fees for specific purposes

Section 6.2.2 on

“Other sources of school income”

1. For IMC schools, collection of fines, charges and fees for specific purposes exceeding the ceilings under the blanket approval given by the Permanent Secretary listed in Appendix 3 (of Section 6 of the SAG) should have prior approval from IMC.

Other sources of school income and the conditions/requirements for generating such income are summarised below:

Point c under Paragraph 1 is revised to read as follows:

c. Collections for specific purposes

 For IMC schools, prior IMC’s approval is required if the collection is for educational purposes and has secured express consent of the majority of parents.

 Detailed procedures at Appendix 4 (of Section 6 of the SAG).

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Appendix 4 of Chapter 6 on

“Approved collections for specific purposes”

Paragraph 3 of Appendix 4 is revised to read as follows:

3. Important points to note:

a. For IMC schools, prior IMC’s approval is required if the collection is for educational purposes and has secured express consent of the majority of parents.

b. If the majority of parents object to the plan(s) in the course of consultation, the school should withdraw the proposal. The IMC should examine parents’ concern, re-assess the needs of the school and review the plan before putting forward new proposals for parents’

consultation again.

c. The IMC may devise further procedures governing the collection to safeguard against abuses and to foster parents’ support and trust.

Trading

operations Section 6.3 on

“Trading Operations”

14.5(b) Accounting and auditing

Section 6.5 on

"Accounting and financial control"

14.6 Compliance with public accounting procedures for procurement of

Section 6.4 on

“Procurement of goods and services”

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15 Student matters Chapter 3 on

“Student Matters”

Paragraphs 5 and 6 of section 3.8.7 are re-numbered as 6 and 7 respectively and a new paragraph is added as follows:

5. The Principal may approve fee remission of boarding fees in respect of students in need, and shall maintain a register of such remission. The students’

eligibility certificates issued by the Student Financial Assistance Agency may be used as reference to assess their eligibility for the fee remission. The permitted level of fee remission of boarding fees is 10% of the total fee income which means the maximum fee payable times the approved enrolment.

However, approval may be sought to vary the level of fee remission in special cases.

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15.3 School days and school holidays

Education Regulations:

R79 – R82 under paragraph 6 of section 1.5, section 2.3.3 on

“Flexible use of learning time” and Appendix of Chapter 2 on

“School days and suggested lesson time allocation for primary,

secondary and senior secondary levels”

A new paragraph is added to section 2.3.3 as follows:

4. School days and school holidays a. The IMC should ensure that in

drawing up the school calendar and the school holiday list, the interests of students, teachers and other stakeholders are duly considered as well as the quality of learning and the maximisation of learning time, which are equally important.

b. The IMC should ensure that the school holiday list includes the general holidays gazetted by the Government of the Hong Kong Special Administrative Region and other requirements and recommendations regarding planning of school days and other school holidays as announced by the Permanent Secretary through circular.

c. The school should refer to the following details in calculating school holidays:

 The number of school holidays, which should include public holidays, shall be 90 days a year, with three additional discretionary holidays.

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 There should be no less than 190 school days for whole-day schools and 209 days for bi-sessional primary schools.

 The dates and occasions of discretionary holidays, as well as the duration and the intended dates of school-based staff development days should be stated clearly in the school calendar. If school cannot fix the exact dates for staff development days at the beginning of the school year, the information on the number of such development days and whether or not students need to attend school should also be given in the calendar.

16.2 Use of fund on maintenance works

Section 8.5 on

“Maintenance of school premises”

16.3 Change of room use

Section 8.6.2 on

“Change of room use”

16.4 Use of school premises for public and educational purposes

Section 8.2 on

"Use of school premises"

(updated on 1 September 2010)

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Appendix A Guiding Principles and Procedures for Handling Cases of Withholding Salary Increment of Staff

General Principles

1. The IMC should fully understand that increment should be provided only when the staff member performs satisfactorily; and the provision of increment should not be presumed. Withholding increment can be used as a tool for effective performance management.

2. The IMC should remind its staff that salary increment is not granted automatically but awarded with regard to the staff’s actual performance. In this connection, the IMC should ensure that proper performance management system has been put in place for the staff and that stringent standards are applied to the monitoring and assessment of performance. Where a staff member is not performing satisfactorily, he should be advised of the failings, and helped to improve his performance through guidance and close supervision by his senior.

3. The IMC should also ensure that the expected standards of performance and a system of clear, objective and reasonable criteria for measuring substandard performance leading to withholding of salary increment of staff are worked out and clearly communicated to their staff beforehand. In any case, the act of withholding salary increment should not come as a surprise to the staff concerned. An appeal mechanism should be put in place for handling appeal from staff concerned.

4. The decision to withhold salary increment of a staff member should be supported and approved in advance by the majority of the IMC members at a meeting with all decision and documents properly recorded.

Points to Note in Handling Cases of Withholding Increment

5. In handling cases of withholding salary increment of staff, the IMC should consider the following necessary steps:

(a) A performance appraisal system has been put in place in the school;

(b) Clear, objective and reasonable criteria for measuring sub-standard performance leading to withholding increment of staff member has been worked out;

(c) Warning is given to the staff member concerned that his performance is not up to the required standard for award of increment and that the IMC has the intention to withhold his salary increment;

(d) A grace period is given for the staff member concerned to make improvement during which the supervisor of the staff member concerned should make every

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Appendix A (e) Re-assess the staff member's performance upon expiry of the grace period;

(f) The IMC decides whether the staff member still deserves withholding of increment at a meeting:

(i) If no, withdraw the intention and give the staff member the salary increment due to him on the incremental date.

(ii) If yes, notify him in writing well in advance before the next incremental date that his next salary increment will be withheld giving details as follows:

 reasons and grounds for the decision;

 effective date of withholding increment (this should be the incremental date of the staff concerned);

 length of the period of withholding (should be in completed months with end date); and

 conditions for early withdrawal or continuation of the withholding period, if any; and

(g) Inform the Funds Section of the EDB via REO of the case in writing immediately giving the following details for the purpose of salary administration:

 Name, ID number and rank of the staff concerned;

 Period of withholding salary increment (starting and ending dates);

 Salary particulars during the period of withholding salary increment;

 Salary particulars after the period of withholding salary increment;

and

 Date of next increment (i.e. the original date on which the staff member concerned is eligible to receive the salary increment).

6. Schools should note that salary increment granted (which is not an advance of salary) cannot be recovered. Hence, all decision/actions on withholding increment must be completed before the incremental date. In case there is delay of action, the IMC has to bear the responsibility of absorbing the irrevocable increment, yet the money involved should not be charged to government funds and school’s own funds.

7. The IMC should note that the period of withholding salary increment of staff should not be more than six months which is deemed to be a sufficient grace period for the substandard performer to strive for immediate improvement. Unless with strong justification that the staff member should warrant an extension of the period of withholding, he should receive his increment with effect from the end date of the withholding period as specified in the letter to the EDB. In all cases, the original incremental date of the staff member concerned (i.e. the date on which he is eligible to receive the next salary increment) should remain unchanged.

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Appendix A improvement in his performance and that the IMC decides to extend the period of withholding his salary increment, subject to such conditions as prescribed in the letter to the staff concerned mentioned in (f) (ii) above, the IMC should inform the staff and the Funds Section immediately following procedures as in (f) (ii) and (g) above.

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Appendix B Expanded Operating Expenses Block Grant (EOEBG)

Purpose

1. The EOEBG aims at providing IMC schools with more financial autonomy in the deployment of funds for educational purposes.

Features

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 in the EOEBG User Guide. 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 (CEG). 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 the 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 examples, schools may use the EOEBG to cover expenditure incurred from

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Appendix B operating cost such as telephone and electricity charges of the schools, procurement of consumables and teaching aid, conduct of educational programmes for their students, hiring of staff outside permanent staff establishment, procurement of stores, furniture and equipment, cleansing, security and other necessary services. It can also be deployed to finance professional development for their teaching 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 Usages

6. In exercising the flexibility in the use of resources, schools are required to consider carefully the interests of both students and staff. Schools should have sound financial planning and good budgeting in utilising government funding. While schools may retain up to 12 months’ provision under the EOEBG, they are not expected to keep too much surplus without specific purposes. Schools are reminded to deploy their resources in a cost-effective and timely manner to meet the needs of students and various policy priorities. They should ensure that the expenditures incurred are reasonable and necessary for educational 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.

(updated on 1 April 2013)

7. 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

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Appendix B 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.

8. In utilising 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/MPF contributions in respect of janitors, clerical and other supporting staff employed within the provision allocated for the school-specific Administration Grant/Revised Administration Grant.

(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.

9. If schools deploy the school specific grants such as CEG 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 Payment² 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.

2 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

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Appendix B 10. Schools are reminded that non-education related expenditures as listed below are not

allowed to be charged to the EOEBG:

(a) fringe benefits/welfare for staff, including housing benefits, provision of food or food allowance, travelling allowance, medical expenses, etc.;

(b) entertainment expenses such as lunch/dinner for staff not related to discharge of duties³;

(c) loans to staff or third parties;

(d) administrative and management expenses, including salaries of staff, of the headquarters or other service units of the school sponsoring body;

(e) donations; and

(f) any other items announced via circular/circular memorandum issued by the EDB from time to time.

In the event that expenditure is found improperly charged to the EOEBG, the 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.

(updated on 1 September 2010) Option for Developing Schools

11. 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.

Accounting Arrangements

12. 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

3 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 with 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

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Appendix B consideration that schools may be required to report on the expenditure specified for programmes under certain school specific grants, like the CEG. As such, schools are also advised to keep separate sub-ledger for all school specific grants so as to facilitate reporting requirements, where necessary.

Surplus Retention

13. Schools may retain a maximum amount of surplus of up to 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 mentioned in paragraph 9 above). The Permanent Secretary may under exceptional circumstances agree that individual schools can retain surplus in excess of this level.

(updated on 1 September 2010) Accountability

14. The implementation of the EOEBG gives schools greater autonomy in the 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 and review by the schools themselves.

15. For external monitoring, schools are required to disclose financial information properly in their Annual School Plan and the annual School Report, which are to be uploaded onto the website of the schools. In addition, the IMCs are also required to submit to the EDB their annual accounts including the information as required by the EDB, which will have been audited by a certified public accountant (practising) as defined in the Professional Accountants Ordinance (Cap. 50).

16. 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 public resources.

For further details, please refer to the reference materials on the EOEBG uploaded to the website of the EDB (http://www.edb.gov.hk  School Administration and Management

 Financial Management  General Finance  Reference Materials on E/OEBG and CFEG) and the relevant circular.

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Appendix C Teacher Relief Grant (TRG)

Purpose

1. The TRG aims at simplifying the administrative procedure for appointing supply teachers to replace teachers on leave and providing flexibility for schools to opt to obtain a cash grant by freezing up to 10% of their teaching establishment in aided schools established with IMCs. Schools will have enhanced financial support and autonomy in planning their manpower deployment, organising staff professional development and student learning activities, and employing staff of various disciplines.

Features

2. An annual recurrent cash grant under the TRG is provided to each IMC school to cover approved leave of eligible teachers. With the TRG, schools are no longer required to apply for reimbursement of supply teachers for teachers on leave lasting for less than 30 days. Schools are allowed to claim reimbursement from the EDB for appointing supply teachers for regular teachers on maternity leave, sick leave and other approved leave lasting for 30 days or more. For leave of 30 to 89 days, daily-rated supply teachers can be reimbursed. For leave of 90 days or more, monthly term temporary replacements can be reimbursed.

3. With the consent of the IMC, majority of teachers and parents in advance, schools may opt to obtain a cash grant by freezing up to 10 % of their approved teaching establishment with enhanced rates of computation. In this connection, the existing arrangement of Substitute Teacher Grant (STG) is replaced by the TRG for IMC schools.

Ambit

4. Schools can use the TRG to appoint temporary supply teachers or teaching-related staff. They can also have full flexibility in using the TRG to procure education-related services or employ other staff like social workers, educational psychologists, professional tutors for career-oriented studies, etc. to meet their school-based needs and requirements of the various new initiatives, including the new academic structure for senior secondary education. If the TRG is used for employment of staff, expenditures like salaries, contribution to Mandatory Provident Fund, and any statutory benefits conferred by the Employment Ordinance should be met by the TRG.

Principles and Rules on Usages

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Appendix C interests of students and staff. Schools should ensure that the total spending be kept within the amount of provision and avoid deficits as far as possible. Schools may use the surplus under the EOEBG to top up the TRG in case of deficit. If there is still unsettled deficit, it has to be borne by the school’s own funds.

Accounting Arrangement

6. The annual recurrent cash grant is provided on a quarterly basis in September, November, February and May. The optional cash grant is released to schools on a claim basis and payments are also on a quarterly basis.

7. For reimbursement of daily-rated supply teachers to replace regular teachers on maternity leave, sick leave and other approved leave lasting for 30 days to 89 days, schools should use the claim form (EDB Form No. 110) available at the EDB website (http://www.edb.gov.hk  School Administration and Management  Financial Management  General Finance  TRG for Schools with an Incorporated Management Committee). For appointment of temporary teachers for regular teachers taking leave of 90 days or more on monthly term, schools should submit appointment form available at the EDB website (http://www.edb.gov.hk  Teachers Related  Appointment & Related Matters  Appointment Matters).

8. Schools wishing to apply for the optional cash grant for freezing teaching posts should use the claim form available at the EDB website (http://www.edb.gov.hk  School Administration and Management  Financial Management  General Finance  TRG for Schools with an Incorporated Management Committee).

Surplus Retention

9. Schools will be allowed to accumulate surplus up to three times the annual provision of the TRG in the year in which the grant is provided.

10. Surplus of the TRG cannot be transferred out and cannot be used for purposes outside of the TRG. The TRG reserve must be kept separately for control and audit purpose. Transfer between the reserve accounts of the EOEBG and TRG as to bypass the permitted surplus level for each account is strictly prohibited.

Accountability

11. Schools receiving the TRG should include in their School Report the use of the TRG with reference to their own situation and school-based targets. Schools should keep a separate ledger account to record all income and expenditure chargeable to the TRG.

12. The IMC of a school is obliged to hold accountable for any improper use of the

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Appendix C public resources including the TRG.

13. IMCs schools are reminded to follow the rules and regulations on procurement procedures as stipulated in EDBC No. 4/2013 if they utilise TRG for the procurement of education-related services.

For further details, please refer to the reference materials on TRG uploaded onto the website of the EDB at http://www.edb.gov.hk  School Administration and Management

 Financial Management  General Finance  TRG for Schools with an Incorporated Management Committee.

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Appendix D Guiding Principles and Procedures for Direct Appointment of Staff to

Promotion Ranks

1. In general, promotion posts should be reserved for existing staff.

2. Before any decision on direct appointment to promotion ranks is to be made, it is paramount that the Incorporated Management Committee should, in consultation with its staff, agree on whether a mechanism for such direct appointment would need to be put in place in the school, having regard to such needs and considerations as school development, human resources planning and management, staff management and the morale of the existing staff, etc. Some examples are:

(a) For new schools where, for operational reasons, experienced teachers are urgently required to help develop the school.

(b) For schools where there are succession problems and candidates suitable for internal promotion could not be timely identified.

(c) Staff of specific skill or qualification required for leading or undertaking a specific course or programme is unavailable.

3. The decision to put in place in the school a mechanism for direct appointment to promotion ranks should be made conscientiously and agreed by the IMC with sound justifications after consultation with staff.

4. Once a decision to put in place such a mechanism in the school is arrived, the rationale and the criteria where and when direct appointment to promotion ranks would be exercised in the school must be made known to all the staff. The IMC should make sure that all the staff members are aware of the existence of such an arrangement.

Checklist

5. Will direct appointment to promotion ranks be taken as a regular practice, or should it be approved by the IMC on an individual case basis, subject to consultation with the staff?

6. Have all the implementation criteria and procedures been cautiously deliberated and endorsed by the IMC, and agreed by the staff?

7. Have such criteria and procedures been clearly stated and made known to the staff (and upon appointment, in the cases of the new recruits)?

8. Have all existing staff members been fairly considered for the opportunity before

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Appendix D open recruitment is to be launched?

9. Does the appointee fulfill all conditions and requirements for normal promotion to the rank as prescribed in the Code of Aid?

10. Is the direct appointment processed in accordance with all employment related ordinances and regulations, and the terms as stipulated in the Code of Aid?

11. A good practice of direct appointment should include the following features:

(a) The conditions for direct appointment to promotion ranks should be made known to the staff within the school.

(b) The process of direct appointment is conducted in an open, fair and transparent manner.

(c) The selection is undertaken by a selection committee comprising the principal, IMC manager(s) and/or other independent personnel or professional, and is closely monitored by the IMC.

(d) Morale of the existing staff has been taken care of.

Suggested Workflow for Direct Appointment to Promotion Rank

Disagree

Agree with sound justifications where circumstances warrant

Discussion for the setting up of a mechanism for direct appointment to promotion rank

Proposal shelved

Set criteria and procedures for direct appointment

Appointment of selection committee by the IMC

Conduct interview and make recommendation

to the IMC

Appointment

completed Keep selection records for inspection, when

required Open Recruitment

Exercise

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Appendix E Principles for Identifying, Deployment and Arrangement of Redundant Teachers

General Principle

1. Incorporated Management Committees (IMCs) should ensure that schools have made every effort to absorb the redundant teachers such as appointing the teachers to share jobs on a voluntary basis or by using other school funds. For schools operated under big sponsoring body (i.e. operating more than one school), arrangement should be made to deploy their redundant teachers to fill available vacancies in other schools under the same sponsoring body as far as possible.

Identifying Redundant Teachers

2. For schools having redundant teachers, the IMCs should, in consultation with teachers, work out a set of “school-based” criteria (e.g. school’s operational needs, subject specialties of teachers and the developmental requirements of schools, etc) which are objective, fair and transparent so as to identify the sequence of teachers to become redundant.

3. The IMCs are also required to set up an appeal mechanism to serve as an effective channel for teachers to communicate with the school management on issue relating to redundancy. For schools operated under sponsoring bodies that operate more than one school, the IMCs should ensure that both the criteria and the appeal mechanism are applied consistently as far as possible in all the schools under the same sponsor.

4. The criteria and appeal mechanism should be in place, documented and announced to all teachers as early as possible. This will facilitate early identification of and notification to redundant teachers after the staff establishment for the school year concerned is approved.

Deployment of Redundant Teacher by School Sponsoring Bodies

5. Under the existing rule and practice, a school sponsoring body operating more than one school should arrange to deploy redundant teachers in a school under its sponsorship to fill available vacancies in other schools under its sponsorship as far as possible.

6. If the redundant teachers out-number the vacancies, the school sponsoring body should also put in place a set of criteria to deploy the redundant teachers to fill all the vacancies available among the schools under its sponsorship based on the needs of schools. The IMCs should ensure that schools would complete the deployment arrangements in accordance with the schedule set by the Education Bureau each year as announced through circular as far as possible so as to facilitate timely application

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Appendix E 7. After the deployment, if vacancies subsequently arise in schools under its sponsorship,

the school sponsoring body should deploy the redundant teachers under the same sponsorship and who have not yet secured teaching posts to fill such vacancies as far as possible.

Appointment of Teachers on a Job-Sharing Basis

8. Subject to the needs of schools and the wish of teachers concerned, schools may deploy more than one teacher to fill a teaching post within the approved staff establishment. Appointment of these part-time teachers to fill teaching posts at various ranks should be in accordance with the Code of Aid and the Guides to Appointment for the respective ranks currently in force. Like regular full-time teachers, regular part-time teachers within the approved teaching establishment are subject to the provisions under the Code of Aid, including (a) eligibility for joining the Grant/Subsidised Schools Provident Fund or relevant provident fund schemes as appropriate, (b) entitlement of various types of leave such as paid sick leave, and (c) their relevant part-time teaching experience being recognised on a pro-rata basis for incremental and promotion purposes.

Over-Ranked Principals/Redundant Senior Teachers Required to Step-Down

9. In the event that reduction of staff entitlement affects the number of senior teachers (i.e. teachers appointed at promotion ranks) and/or the headship entitlement of a school, a school sponsoring body operating more than one school should transfer the redundant senior teachers to fill available senior teacher vacancies in other schools under its sponsorship and consider to deploy Principals so that the substantive rank of the head of the school does not exceed the headship entitlement. However, for schools operated by one-school sponsors, or where there are no available senior teacher vacancies and/or vacancies of appropriate headship rank in schools under the same sponsor for deployment, the redundant senior teachers should step down to become the lower or basic rank teachers as appropriate and the over-ranked Principals should assume posts of an appropriate lower rank.

10. Schools should observe all other related arrangements in respect of stepping down of Principals/senior teachers to a lower rank as announced by the Permanent Secretary through circular from time to time.

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Appendix F Guiding Principles in Handling Change of Rank/Stepped-down Cases

1. Apart from voluntary decision (i.e. a staff member who on his accord requests to discontinue taking up duties of a higher rank), there are broadly two circumstances leading to step down/change of rank:

(a) Redundancy

Reduction of classes that affects the headship entitlement and/or the number and rank of promotion posts;

(b) Unsatisfactory performance

The staff member concerned is either not performing satisfactorily in his current position or not meeting the expected and agreed standard that the current position requires.

2. In handling stepping-down cases arising from (1) above, the IMCs should follow the procedures stipulated in relevant circulars in force for secondary, special and primary schools as appropriate.

3. Prior to the setting-up of a formal mechanism for stepped-down or change of rank among staff arising from (2) above, the IMC should consult its staff on the needs and advantages of establishing such a staff management system in the school, having regard to such considerations as school operation and development, fairness to appointment, human resources planning, staff management, and the morale of the existing staff, etc.

4. The IMC should also consider the subject in conjunction with the school’s availability and sophistication of an objective appraisal system, continuous professional development mechanism and appeal system. The stepped-down or change of rank mechanism should be conscientiously made and agreed by the IMC with sound justifications and be supported by an overwhelming majority of the staff.

5. All staff have to be clearly informed of the rationale and criteria for stepped-down or change of rank which are made on the principles of fairness, objectivity and transparency.

6. The decision for stepped-down or change of rank of a staff member should be supported and approved by the majority of the IMC members at a meeting with all decision and documents properly recorded.

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Appendix F Checklist

7. Have sufficient warning, grace period and adequate opportunity for appeal been given to the staff concerned before stepping-down?

8. Have all the implementation criteria and procedures been cautiously deliberated and agreed on in the IMC, and with the staff?

9. Have such criteria and procedures been clearly stated and made known to all existing staff, and been explicitly reiterated upon their promotion?

10. Is the stepped-down or change of rank processed in accordance with all employment related ordinances and regulations, and the terms as stipulated in the Code of Aid?

11. Are the staff contented that fair and impartial stepped-down/change of rank procedures which are developed beforehand be put in place?

Good Practice of Stepping-Down

12. It is desirable to stipulate in the employment contract the disciplinary procedures, including demotion, to be followed.

13. The IMC should, in consultation with the staff, jointly draw up a set of stepped- down/change of rank criteria which are objective, fair and transparent.

14. The process of stepped-down/change of rank should be conducted in a fair and objective manner.

15. Stepped-down can only be justified by unsatisfactory performance of the staff concerned for the past and present years, and such evidence of performance must be assessed through a formal appraisal system.

16. An appeal system must be set up for the staff concerned to defend or redress their cases.

17. Clear stipulation is to be included in the Employment Contract/Letter of Appointment that the provision for future stepped-down/change of rank from a promoted post is possible, as and when situation so warrants.

18. Provision should be included in the Confirmation Letter for Promotion that stepped-down/change of rank is possible should one fail to perform satisfactorily, or up to the agreed expectation.

19. Written confirmation should be mutually signed by both the IMC and the staff concerned should stepped-down/change of rank take place, which will serve as an agreement for change of employment terms.

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Appendix F 21. The rank changed should normally be one rank lower than the staff’s existing rank.

22. The change of rank should take effect on a date specified by the IMC and, as far as practicable, agreeable to the staff.

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Appendix F Workflow on Stepped-Down/Change of Rank

Disagree Agree

Not substantiated

Substantiated

Stepped-down/change of rank (2 scenarios)

Stepped-down/change of rank

on grounds of performance Redundancy

Discussion in the IMC for the setting up of a mechanism for stepped-down/change of rank

Follow relevant circulars in force for

handling Case

closed

1. Conduct investigation/

evaluation on the staff’s past and present

performance

2. Interview with the staff concerned

3. Make recommendation to the IMC

Case closed Setting up of an

evaluation committee

Set criteria for

stepped-down/change of rank (in consultation with the staff)

Appeal system

Issue of confirmation letter for stepped-down/change of

rank by the IMC

Signing of confirmation letter by staff concerned

Yes

No

Stepped-down completed Give warning/grace period

No improvement despite warning and grace period

Improvement

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Appendix G Grant/Subsidized Schools Provident Fund for Teachers

Teachers joining the Grant/Subsidized Schools Provident Fund are subject to the Rules of the Funds which are statutory rules made under the Education Ordinance. The following are extracts of certain main features for easy reference only.

1. With effect from 1 September 1980, Government's subsidies towards the employers' contribution in respect of the Grant/Subsidized Schools Provident Fund shall be made in accordance with the following scale:

Length of continuous

contributory service Employers' contribution (percentage of employees' salary)

Less than ten years 5%

Not less than 10 years )

but less than 15 years ) 10%

Not less than 15 years 15%

2. Employees' contribution shall remain at 5%.

3. Every teacher who is not over the age of 55 years upon his first appointment to a school on or after 24 June 1982 is required to contribute to the Fund. A part-time teacher employed on a regular basis may at his option contribute to the provident fund.

4. An annual dividend to each contributor of 5 per cent of his account is guaranteed and any shortfall in funds for the purpose of the guaranteed dividend is to be met by a loan (repayable without interest) made by the Government to the Funds. No supplementary dividend may be declared if there is an outstanding loan.

5. Benefits to contributors are increased on the following sliding scale according to length of continuous contributory service on withdrawal from the Funds in normal circumstances:

Benefits on Withdrawal Length of Continuous

Contributory service

Contributor's own contribution plus dividends declared thereon

Government's donation plus dividends declared thereon

Less than 5 years 100% Nil

Not less than 5 years)

but less than 6 years) 100% 50%

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Appendix G

Length of Continuous Contributory service

Contributor's own contribution plus

dividends declared thereon Government's donation plus dividends declared thereon Not less than 6 years)

Not less than 10 years 100% 100%