REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

THE REPORTS OF THE DIRECTOR OF AUDIT

ON

THE ACCOUNTS OF THE GOVERNMENT OF

THE HONG KONG SPECIAL ADMINISTRATIVE REGION

FOR THE YEAR ENDED

31 MARCH 2006

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 47)

AND

SUPPLEMENTAL REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 46 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



February 2007

P.A.C. Report No. 47

---

CONTENTS
				Paragraph	Page
Part 1	Introduction
	The Establishment of the Committee			1	1
	Membership of the Committee			2	1
Part 2	Procedure
	The Committee's Procedure			1	2
	Confidentiality undertaking by members of the Committee			2 - 3	3
	The Committee's Report			4 - 6	3
	The Government's Response			7	4
Part 3	Report of the Public Accounts Committee on Report No. 44 of the Director of Audit on the Results of Value for Money Audits [P.A.C. Report No. 44]
	Laying of the Report			1	5
	The Government Minute			2 - 6	5 - 8
Part 4	Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2005 and the Results of Value for Money Audits (Report No. 45) [P.A.C. Report No. 45]
	Laying of the Report			1	9
	The Government Minute			2 - 56	9 - 28
Part 5	Committee Proceedings
	Consideration of the Director of Audit's Report			1	29
	Meetings			2	29
	Arrangement of the Report			3 - 4	29
	Acknowledgements			5	29
Part 6	Observations of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2006			1	30
Part 7	Chapter
	Supplemental report on the Director of Audit's Report No. 46
	1.	Collection of fines imposed by Magistrates' Courts
		A.	Introduction	1 - 3	31
		B.	Imposition and settlement of fines	4 - 21	31 - 38
		C.	Action on overdue fines	22 - 42	38 - 48
		D.	Execution of distress warrants by the Court Orders Section	43 - 59	48 - 52
		E.	Execution of non-payment warrants by the Police	60 - 70	52 - 56
		F.	Other issues relating to fines arising from moving offences and parking contraventions	71 - 86	56 - 63
		G.	The Committee's view on the work of the Judiciary Administrator and relevant departments in the collection of fines	87 - 88	63 - 64
		H.	Conclusions and recommendations	89	64 - 71
	Report on the Director of Audit's Report No. 47
	2.	Administration of short term tenancies		1 - 2	72
	3.	Allocation of public rental housing flats		1 - 5	73
	4.	Four small and medium enterprise funding schemes		1 - 4	74
	5.	Hospital Authority: management of outstanding medical fees
		A.	Introduction	1 - 7	75 - 77
		B.	Use of public medical services by non-eligible persons	8 - 35	78 - 87
		C.	Collection of outstanding fees by hospitals	36 - 47	87 - 91
		D.	Collection of outstanding fees by the Hospital Authority Head Office	48 - 50	91 - 92
		E.	Measures to minimise need for recovery and write-off of fees	51 - 58	92 - 94
		F.	Conclusions and recommendations	59	94 - 98
	6.	Hospital Authority and Social Welfare Department: management of medical fee waivers
		A.	Introduction	1 - 2	99
		B.	Processing of waiver applications	3 - 31	100 - 108
		C.	Management control on fee waivers	32 - 37	108 - 109
		D.	Provision of waiver service	38 - 42	109 - 111
		E.	Staff training and performance management	43 - 47	111 - 112
		F.	Conclusions and recommendations	48	112 - 116
	7.	Implementation of minor works projects by the Home Affairs Department		1 - 6	117
SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE					118
CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 47 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT					119
Appendix relating to Part 1: "Introduction"
APPENDIX 1	Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region				120 - 121
Appendix relating to Part 2: "Procedure"
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'				122 - 124
Appendices relating to Part 4: "Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2005 and the Results of Value for Money Audits (Report No. 45) [P.A.C. Report No. 45]"
APPENDIX 3	Letter of 22 December 2006 from the Secretary for the Civil Service				125 - 126
APPENDIX 4	Letter of 31 January 2007 from the Secretary for the Civil Service				127
APPENDIX 5	Report on the progress of the Trial Scheme on the Provision of Infirmary Care Services for Elders in a Non-hospital Setting as at December 2006				128
APPENDIX 6	Letter of 11 January 2007 from the Secretary for Housing, Planning and Lands				129 - 134
APPENDIX 7	Action plan of the English Schools Foundation as at September 2006				135 - 138
Appendices relating to Part 5: "Committee Proceedings"
APPENDIX 8	Witnesses who appeared before the Committee				139 - 140
APPENDIX 9	Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Philip WONG Yu-hong, GBS, at the first public hearing of the Committee on Tuesday, 28 November 2006				141 - 142
Appendices relating to Chapter 1 of Part 7: "Collection of fines imposed by Magistrates' Courts"
APPENDIX 10	Letter of 24 May 2006 from the Judiciary Administrator				143 - 148
APPENDIX 11	Letter of 29 September 2006 from the Judiciary Administrator				149 - 156
APPENDIX 12	Letter of 23 May 2006 from the Director of Audit				157 - 160
APPENDIX 13	Letter of 24 May 2006 from the Commissioner of Police				161 - 169
APPENDIX 14	Letter of 30 September 2006 from the Commissioner of Police				170 - 176
APPENDIX 15	Letter of 15 January 2007 from the Judiciary Administrator				177 - 178
APPENDIX 16	Letter of 5 October 2006 from the Deputy Director of Public Prosecutions				179 - 185
APPENDIX 17	Letter of 15 January 2007 from the Commissioner of Police				186 - 188
APPENDIX 18	Letter of 6 December 2006 from the Deputy Director of Public Prosecutions				189 - 190
APPENDIX 19	Letter of 4 December 2006 from the Judiciary Administrator				191 - 192
APPENDIX 20	Letter of 24 May 2006 from the Director of Immigration				193 - 194
APPENDIX 21	Letter of 24 May 2006 from the Commissioner for Transport				195 - 200
APPENDIX 22	Letter of 29 September 2006 from the Commissioner for Transport				201 - 203
APPENDIX 23	Letter of 15 January 2007 from the Commissioner for Transport				204 - 205
APPENDIX 24	Letter of 19 June 2006 from the Commissioner of Police				206 - 211
APPENDIX 25	Letter of 4 July 2006 from the Acting Judiciary Administrator				212 - 216
APPENDIX 26	Letter of 15 November 2006 from the Chief Secretary for Administration				217 - 218
Appendix relating to Chapter 3 of Part 7: "Allocation of public rental housing flats"
APPENDIX 27	Letter of 19 December 2006 from the Director of Housing				219 - 228
Appendix relating to Chapter 4 of Part 7: "Four small and medium enterprise funding schemes"
APPENDIX 28	Letter of 21 December 2006 from the Acting Director-General of Trade and Industry				229 - 238
Appendices relating to Chapter 5 of Part 7: "Hospital Authority: management of outstanding medical fees"
APPENDIX 29	Supplementary information on "Management of Outstanding Medical Fees" provided by the Hospital Authority on 6 December 2006				239 - 252
APPENDIX 30	Supplementary information on "Actions taken or being considered by the Hospital Authority in respect of the various audit recommendations" provided by the Hospital Authority on 6 December 2006				253 - 258
APPENDIX 31	Opening statement made by the Secretary for Health, Welfare and Food at the public hearing on 7 December 2006				259 - 261
APPENDIX 32	Supplementary information relating to "Ageing analysis of fees owed by patients" provided by the Audit Commission on 24 November 2006				262
APPENDIX 33	Letter of 18 December 2006 from the Chief Executive of the Hospital Authority				263 - 272
APPENDIX 34	Letter of 30 December 2006 from the Chief Executive of the Hospital Authority				273 - 274
APPENDIX 35	Letter of 3 January 2007 from the Chief Executive of the Hospital Authority				275 - 283
APPENDIX 36	Letter of 30 November 2006 from the Secretary for Health, Welfare and Food				284 - 285
Appendices relating to Chapter 6 of Part 7: "Hospital Authority and Social Welfare Department: management of medical fee waivers"
APPENDIX 37	Supplementary information relating to "Waivers granted on financial and non-financial grounds" provided by the Audit Commission on 24 November 2006				286
APPENDIX 38	Supplementary information relating to "Waivers granted on non-financial grounds" provided by the Audit Commission on 24 November 2006				287
APPENDIX 39	Letter of 18 December 2006 from the Chief Executive of the Hospital Authority				288 - 289
APPENDIX 40	Letter of 31 January 2007 from the Chief Executive of the Hospital Authority				290
Appendix relating to Chapter 7 of Part 7: "Implementation of minor works projects by the Home Affairs Department"
APPENDIX 41	Letter of 20 December 2006 from the Director of Home Affairs				291 - 293
ACRONYMS AND ABBREVIATIONS					294 - 296