REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 74 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2020

P.A.C. Report No. 74





CONTENTS


Paragraph

Page

Part 1Introduction

The Establishment of the Committee

1

1

Membership of the Committee

2

1

Part 2Procedure

The Committee's Procedure

1

2 - 3

Confidentiality undertaking by members of the Committee

2 - 3

3

The Committee's Report

4

3

The Government's Response

5

3

Part 3Committee Proceedings

Consideration of the Director of Audit's Report

1 - 3

4

Meetings

4

4

Arrangement of the Report

5 - 6

5

Acknowledgements

7

5

Part 4Chapter

1.Management of funding for sports development through the Arts and Sport Development Fund (Sports Portion)

A.Introduction

1 - 14

6 - 10

B.Funding for Hong Kong athletes to prepare for and participate in international games

15 - 36

10 - 18

C.Funding for international sports events

37 - 48

18 - 22

D.Funding for football development

49 - 96

22 - 41

E.Funding for other sports programmes and schemes

97 - 110

41 - 45

F.Governance of the Sports Commission and its committees

111 - 118

45 - 47

G.Conclusions and recommendations

119 - 121

47 - 65

2.Sports Federation & Olympic Committee of Hong Kong, China

A.Introduction

1 - 11

66 - 69

B.Operation of Sports Federation & Olympic Committee of Hong Kong, China

12 - 78

69 - 89

C.Government funding and monitoring

79 - 105

90 - 98

D.Governance issues

106 - 113

98 - 100

E.Conclusions and recommendations

114 - 116

101 - 119

3.Employees Retraining Board

1 - 9

120 - 123

4.Government's efforts in implementing electronic recordkeeping system

1 - 6

124 - 128

5.Intellectual Property Department: Registration and protection of intellectual property

1 - 5

129 - 131

6.Management of insolvency services

1 - 8

132 - 135

7.Management of short term tenancies by the Lands Department

1 - 7

136 - 141

8.Provision and management of Community Green Stations

1 - 6

142 - 145

SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE

 
146

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 74 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
147

Appendix relating to Part 1: "Introduction"

Appendix 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region

 
148 - 149

Appendix relating to Part 2: "Procedure"

Appendix 2Paper presented to the Provisional Legislative Council by the Chairman of the Public Accounts Committee at the meeting on 11 February 1998 on Scope of Government Audit in the Hong Kong Special Administrative Region - 'Value for Money Audits'

 
150 - 152

Appendix relating to Part 3: "Committee Proceedings"

Appendix 3Witnesses who appeared before the Committee

 
153 - 154

Appendices relating to Chapter 1 of Part 4: "Management of funding for sports development through the Arts and Sport Development Fund (Sports Portion)"

Appendix 4Speech made by Director of Audit at the first public hearing on 16 May 2020

 
155 - 157

Appendix 5Opening statement made by Secretary for Home Affairs at the first public hearing on 16 May 2020

 
158 - 162

Appendix 6Opening statement made by Director of Leisure and Cultural Services at the first public hearing on 16 May 2020

 
163 - 164

Appendix 7Opening statement made by Secretary for Home Affairs at the second public hearing on 16 May 2020

 
165 - 169

Appendix 8Opening statement made by Chairman, Hong Kong Football Association at the second public hearing on 16 May 2020

 
170 - 172

Appendix 9Letter dated 1 June 2020 from Secretary for Home Affairs

 
173 - 253

Appendix 10Letter dated 1 June 2020 from Director of Leisure and Cultural Services

 
254 - 265

Appendix 11Letter dated 1 June 2020 from Secretary for Home Affairs

 
266 - 356

Appendix 12Letter dated 15 May 2020 from Secretary for Home Affairs

 
357 - 365

Appendix 13Letter dated 22 June 2020 from Secretary for Home Affairs

 
366 - 369

Appendix 14Letter dated 26 May 2020 from Director of Leisure and Cultural Services

 
370 - 371

Appendix 15Letter dated 1 June 2020 from Chairman, Hong Kong Football Association

 
372 - 426

Appendix 16Letter dated 19 June 2020 from Chairman, Hong Kong Football Association

 
427 - 432

Appendix 17Letter dated 19 June 2020 from Chairman, Hong Kong Football Association

 
433 - 440

Appendix 18Terms of reference of the Audit Committee of Hong Kong Football Association

 
441 - 443

Appendix 19Extracts of the Annual Report 2016-17 of Hong Kong Football Association Limited on "Accounts and Audit"

 
444

Appendix 20Extracts of the Articles of Association of Hong Kong Football Association

 
445

Appendix 21Letter dated 19 June 2020 from Chairman, Hong Kong Football Association

 
446 - 447

Appendix 22Letter dated 15 May 2020 from Chairman, Hong Kong Football Association

 
448 - 452

Appendix 23Letter dated 22 June 2020 from Secretary for Home Affairs

 
453 - 478

Appendices relating to Chapter 2 of Part 4: "Sports Federation & Olympic Committee of Hong Kong, China"

Appendix 24Speech made by Director of Audit at the public hearing on 25 May 2020

 
479 - 481

Appendix 25Opening statement made by Secretary for Home Affairs at the public hearing on 25 May 2020

 
482 - 485

Appendix 26Opening statement made by Honorary Secretary General, Sports Federation & Olympic Committee of Hong Kong, China at the public hearing on 25 May 2020

 
486 - 489

Appendix 27Letter dated 3 June 2020 from Honorary Secretary General, Sports Federation & Olympic Committee of Hong Kong, China

 
490 - 511

Appendix 28Circular issued by Sports Federation & Olympic Committee of Hong Kong, China to National Sports Associations on 7 March 2018

 
512 - 515

Appendix 29Letter dated 10 June 2020 from Honorary Secretary General, Sports Federation & Olympic Committee of Hong Kong, China

 
516 - 519

Appendix 30Letter dated 23 June 2020 from Honorary Secretary General, Sports Federation & Olympic Committee of Hong Kong, China

 
520 - 543

Appendix 31Letter dated 3 June 2020 from Honorary Secretary General, Sports Federation & Olympic Committee of Hong Kong, China

 
544 - 553

Appendix 32Letter dated 9 June 2020 from Honorary Secretary General, Sports Federation & Olympic Committee of Hong Kong, China

 
554 - 583

Appendix 33Letter dated 9 June 2020 from Secretary for Home Affairs

 
584 - 589

Appendix 34Extracts of subvention agreements between the Government and Sports Federation & Olympic Committee of Hong Kong, China and Management Company of Olympic House Limited

 
590 - 591

Appendix 35Letter dated 3 June 2020 from Secretary for Home Affairs

 
592 - 596

Appendix 36Attendance rates of each member of the Board and the 15 committees of Sports Federation & Olympic Committee of Hong Kong, China for the meetings held from 30 March 2017 to 31 December 2019

 
597 - 602

Appendices relating to Chapter 3 of Part 4: "Employees Retraining Board"

Appendix 37Letter dated 4 June 2020 from Executive Director of Employees Retraining Board

 
603 - 616

Appendix 38Letter dated 4 June 2020 from Secretary for Labour and Welfare

 
617 - 618

Appendix 39Opening statement made by Secretary for Labour and Welfare at the short public hearing on 12 June 2020

 
619

Appendix 40Letter dated 19 June 2020 from Executive Director of Employees Retraining Board

 
620 - 626

Appendices relating to Chapter 4 of Part 4: "Government's efforts in implementing electronic recordkeeping system"

Appendix 41Letter dated 1 June 2020 from Government Chief Information Officer

 
627 - 636

Appendix 42Letter dated 1 June 2020 from Director of Administration

 
637 - 649

Appendix 43Letter dated 1 June 2020 from Commissioner for Efficiency

 
650 - 654

Appendix 44Letter dated 1 June 2020 from Secretary for Commerce and Economic Development

 
655 - 658

Appendix 45Letter dated 1 June 2020 from Director of Marine

 
659 - 661

Appendix relating to Chapter 5 of Part 4: "Intellectual Property Department: Registration and protection of intellectual property"

Appendix 46Letter dated 4 June 2020 from Director of Intellectual Property

 
662 - 681

Appendices relating to Chapter 6 of Part 4: "Management of insolvency services"

Appendix 47Letter dated 1 June 2020 from Secretary for Financial Services and the Treasury

 
682 - 684

Appendix 48Letter dated 1 June 2020 from Official Receiver

 
685 - 710

Appendix 49Opening statement made by Secretary for Financial Services and the Treasury at the short public hearing on 12 June 2020

 
711 - 712

Appendix 50Opening statement made by Official Receiver at the short public hearing on 12 June 2020

 
713 - 717

Appendix 51Letter dated 19 June 2020 from Official Receiver

 
718 - 723

Appendices relating to Chapter 7 of Part 4: "Management of short term tenancies by the Lands Department"

Appendix 52Letter dated 1 June 2020 from Secretary for Development

 
724 - 725

Appendix 53Letter dated 4 June 2020 from Acting Director of Lands

 
726 - 765

Appendix 54Opening statement made by Secretary for Development at the short public hearing on 12 June 2020

 
766 - 767

Appendix 55Opening statement made by Acting Director of Lands at the short public hearing on 12 June 2020

 
768 - 771

Appendix 56Letter dated 19 June 2020 from Acting Director of Lands

 
772 - 793

Appendices relating to Chapter 8 of Part 4: "Provision and management of Community Green Stations"

Appendix 57Consolidated reply dated 29 May 2020 from Secretary for the Environment and Director of Environmental Protection

 
794 - 803

Appendix 58Letter dated 3 June 2020 from Director of Architectural Services

 
804 - 807

ACRONYMS AND ABBREVIATIONS

 
808 - 810