SUPPLEMENTAL REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 68 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



January 2018

P.A.C. Report No. 68A





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

Meetings

1

4

Arrangement of the Report

2 - 3

4

Acknowledgements

4

4

Part 4Chapter

1.Government's support and monitoring of charities

A.Introduction

1 - 13

5 - 12

B.Administration of tax exemption of charities and tax-deductible donations

14 - 35

12 - 25

C.Administration of land granted to charities for operating welfare/social services

36 - 76

25 - 46

D.Filing and disclosure requirements of charities incorporated/established under three ordinances

77 - 100

46 - 55

E.Regulation of Chinese temples

101 - 114

55 - 61

F.Way forward

115 - 116

61 - 65

G.Conclusions and recommendations

117 - 119

65 - 84

2.Provision of district council funds for community involvement projects

A.Introduction

1 - 7

85 - 87

B.Allocation and use of district council funds for community involvement projects

8 - 23

87 - 93

C.Management of conflicts of interest in community involvement projects projects

24 - 39

93 - 99

D.Implementation of community involvement projects

40 - 49

99 - 103

E.Conclusions and recommendations

50 - 52

103 - 111

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

 
112

CHAPTER IN THE DIRECTOR OF AUDIT'S REPORT NO. 68 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
113

Appendix relating to Part 1: "Introduction"

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

 
114 - 115

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 HKSAR - 'Value for Money Audits'

 
116 - 118

Appendix relating to Part 3: "Committee Proceedings"

Appendix 3Witnesses who appeared before the Committee

 
119 - 120

Appendices relating to Chapter 1 of Part 4: "Government's support and monitoring of charities"

Appendix 4Speech made by Director of Audit at the public hearing on 6 May 2017

 
121 - 123

Appendix 5Opening statement made by Secretary for Home Affairs at the public hearing on 6 May 2017

 
124 - 126

Appendix 6Opening statement made by Secretary for Financial Services and the Treasury at the public hearing on 6 May 2017

 
127 - 130

Appendix 7Opening statement made by Director of Lands at the public hearing on 6 May 2017

 
131 - 133

Appendix 8Letter dated 16 May 2017 from Secretary for Financial Services and the Treasury

 
134 - 201

Appendix 9Letter dated 26 May 2017 from Secretary for Financial Services and the Treasury

 
202 - 208

Appendix 10Letter dated 4 May 2017 from Commissioner of Inland Revenue

 
209 - 237

Appendix 11Letter dated 16 June 2017 from Director of Lands

 
238 - 249

Appendix 12Letter dated 5 May 2017 from Director of Lands

 
250 - 266

Appendix 13Letter dated 11 July 2017 from Director of Social Welfare

 
267 - 271

Appendix 14Letter dated 27 July 2017 from Director of Lands

 
272 - 290

Appendix 15Letter dated 25 May 2017 from Director of Lands

 
291 - 303

Appendix 16Letter dated 16 June 2017 from Director of Social Welfare

 
304 - 311

Appendix 17Letter dated 22 June 2017 from Secretary for Home Affairs

 
312 - 324

Appendix 18Letter dated 18 July 2017 from Secretary for Home Affairs

 
325 - 330

Appendix 19Letter dated 29 May 2017 from Registrar of Companies

 
331 - 334

Appendix 20Letter dated 26 May 2017 from Commissioner of Police

 
335 - 338

Appendix 21Letter dated 29 May 2017 from Secretary for Security

 
339 - 342

Appendix 22Letter dated 29 May 2017 from Secretary for Education

 
343 - 345

Appendix 23Letter dated 26 May 2017 from Secretary for Home Affairs

 
346 - 450

Appendices relating to Chapter 2 of Part 4: "Provision of district council funds for community involvement projects"

Appendix 24Letter dated 31 May 2017 from Director of Leisure and Cultural Services

 
451 - 453

Appendix 25Letter dated 6 June 2017 from Director of Home Affairs

 
454 - 472

Appendix 26Speech made by Director of Audit at the public hearing on 17 October 2017

 
473 - 475

Appendix 27Opening statement made by Secretary for Home Affairs at the public hearing on 17 October 2017

 
476 - 479

Appendix 28Letter dated 7 November 2017 from Director of Home Affairs

 
480 - 503

Appendix 29Letter dated 12 July 2017 from Director of Home Affairs

 
504 - 544

Appendix 30Reasons for differences between the standing orders of eight District Councils and the model text of District Council standing orders

 
545 - 547

ACRONYMS AND ABBREVIATIONS

 
548 - 549