REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 40 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS

AND

SUPPLEMENTAL REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 39 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS

July 2003


P.A.C. Report No. 40


Page
CONTENTS
I. INTRODUCTION

1 The Establishment of the Committee 1

2 Membership of the Committee 1

II. PROCEDURE

1 The Committee's Procedure 2 - 3

2 - 3 The Committee's Report 3

4 The Government's Response 3

III. COMMITTEE PROCEEDINGS

1 Consideration of the Director of Audit's Report No. 40 4

2 Meetings 4

3 - 4 Arrangement of the Report 4

5 Acknowledgements 4

IV. CHAPTER

Supplemental report on the Director of Audit's Report No. 39

1. Primary education - The administration of primary schools 5 - 45

Report on the Director of Audit's Report No. 40

2. Subvention for staff emoluments of The Legislative Council Commission
46 - 78

3. University Grants Committee funded institutions - Governance, strategic planning and financial and performance reporting

79

4. University Grants Committee funded institutions - General administrative services

80

5. University Grants Committee funded institutions - Staff remuneration packages and stipends

81

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

82

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NOS. 39 AND 40 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

83

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

84 - 85

APPENDIX 2 Paper 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'

86 - 88

APPENDIX 3 Witnesses who appeared before the Committee

89

APPENDIX 4 Introductory remarks by the Chairman of the Public Accounts Committee, Hon Eric LI Ka-cheung, JP, at the first public hearing of the Committee on Monday, 12 May 2003

90 - 91

Appendices relating to Chapter 1: "Primary education - The administration of primary schools"

APPENDIX 5 Letter of 27 December 2002 from the Director of Education

92 - 103

APPENDIX 6 Letter of 6 January 2003 from the Permanent Secretary for Education and Manpower

104 - 105

APPENDIX 7 Letter of 5 June 2003 from the Permanent Secretary for Education and Manpower

106 - 120

APPENDIX 8 Letter of 30 December 2002 from the Director of Education

121 - 122

APPENDIX 9 Letter of 13 January 2003 from the Permanent Secretary for Education and Manpower

123 - 132

APPENDIX 10 Letter of 15 January 2003 from the Director of Audit

133 - 135

APPENDIX 11 Letter of 23 January 2003 from the Permanent Secretary for Education and Manpower

136 - 141

APPENDIX 12 Letter of 9 April 2003 from the Permanent Secretary for Education and Manpower

142 - 145

APPENDIX 13 Letter of 5 March 2003 from the Permanent Secretary for Education and Manpower

146 - 147

APPENDIX 14 Letter of 10 February 2003 from the Permanent Secretary for Education and Manpower

148 - 153

APPENDIX 15 Letter of 11 March 2003 from the Permanent Secretary for Education and Manpower

154 - 155

APPENDIX 16 Letter of 15 January 2003 from the Permanent Secretary for Education and Manpower

156 - 157

APPENDIX 17 Letter of 10 January 2003 from the Permanent Secretary for Education and Manpower

158 - 159

Appendices relating to Chapter 2: "Subvention for staff emoluments of The Legislative Council Commission"

APPENDIX 18 Head 112 : Legislative Council Commission
Analysis of Recurrent Account for 2003-04 Estimates


160

APPENDIX 19 Letter of 13 May 2003 from the Secretary General of the Legislative Council Secretariat

161 - 175

APPENDIX 20 Letter of 9 May 2003 from the Secretary for Financial Services and the Treasury

176 - 179

APPENDIX 21 Letter of 29 May 2003 from the Secretary for Financial Services and the Treasury

180 - 182

APPENDIX 22 Letter of 22 May 2003 from the Secretary General of the Legislative Council Secretariat

183 - 187

APPENDIX 23 Letter of 14 June 2003 from the Secretary General of the Legislative Council Secretariat

188 - 189

APPENDIX 24 Letter of 23 May 2003 from the Secretary General of the Legislative Council Secretariat

190 - 191

APPENDIX 25 Letter of 17 June 2003 from the Secretary for Financial Services and the Treasury

192 - 196

APPENDIX 26 Letter of 25 June 2003 from the Secretary for Financial Services and the Treasury

197 - 200

APPENDIX 27 Letter of 24 June 2003 from the Secretary General of the Legislative Council Secretariat

201 - 206

APPENDIX 28 Letter of 24 June 2003 from the Director of Audit

207 - 221

APPENDIX 29 Letter of 25 June 2003 from the Director of Audit

222 - 227

APPENDIX 30 Letter of 26 June 2003 from the Director of Audit

228 - 232

APPENDIX 31 Letter of 19 June 2003 from the Secretary General of the Legislative Council Secretariat

233 - 235

APPENDIX 32 Letter of 19 June 2003 from the Director of Audit

236 - 237

APPENDIX 33 Letter of 19 June 2003 from the Secretary for Financial Services and the Treasury

238 - 239

APPENDIX 34 Letter of 23 August 1997 from the Secretary for the Treasury

240 - 243