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 2009

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 53)



February 2010

P.A.C. Report No. 53





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

Confidentiality undertaking by members of the Committee

2 - 3

3

The Committee's Report

4 - 5

3

The Government's Response

6

3

Part 3Report of the Public Accounts Committee on Report No. 50 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 50]

Laying of the Report

1

4

The Government Minute

2 - 6

4 - 6

Part 4Report 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 2008 and the Results of Value for Money Audits (Report No. 51)
[P.A.C. Report No. 51]

Laying of the Report

1

7

The Government Minute

2 - 40

7 - 23

Part 5Supplemental Report of the Public Accounts Committee on Report No. 51 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 51A]

Laying of the Report

1

24

The Government Minute

2 - 4

24 - 32

Part 6Committee Proceedings

Consideration of the Director of Audit's Report

1

33

Meetings

2

33

Arrangement of the Report

3 - 4

33

Acknowledgements

5

33

Part 7Observations 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 2009

1 - 20

34 - 39

Part 8Chapter

1.Administration of the Sports Subvention Scheme

A.Introduction

1 - 2

40

B.Allocation of subvention

3 - 19

40 - 48

C.Monitoring of National Sports Associations' performance

20 - 28

48 - 53

D.Internal controls of National Sports Associations

29 - 32

54 - 55

E.Conclusions and recommendations

33

55 - 60

2.Control of western medicines

1 - 2

61

3.Hong Kong Productivity Council: Corporate governance and administrative issues

A.Introduction

1 - 10

62 - 64

B.Internal control and administrative issues

11 - 30

64 - 74

C.Human resource management

31 - 57

74 - 82

D.Corporate governance

58 - 87

83 - 92

E.Conclusions and recommendations

88

92 - 103

4.Office of the Privacy Commissioner for Personal Data

A.Introduction

1 - 3

104

B.Corporate governance

4 - 15

104 - 108

C.Complaint management

16 - 35

108 - 116

D.Promotional activities

36 - 41

116 - 118

E.Overseas duty trips

42 - 53

118 - 121

F.Hospitality expenditure

54 - 61

122 - 123

G.Other administrative issues

62 - 75

124 - 128

H.Performance reporting in the Controlling Officer's report

76 - 77

128

I.Conclusions and recommendations

78

128 - 137

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



138

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 53 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT



139

Appendix relating to Part 1: "Introduction"

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



140 - 141

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'



142 - 144

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 2008 and the Results of Value for Money Audits (Report No. 51)
[P.A.C. Report No. 51]"

APPENDIX 3Letter of 8 January 2010 from the Director of Leisure and Cultural Services



145 - 146

APPENDIX 4Letter of 11 January 2010 from the Secretary for Development



147 - 148

APPENDIX 5Updated progress of implementing audit recommendations in respect of "Reduction and recovery of municipal solid waste" as at September 2009



149 - 155

Appendices relating to Part 6: "Committee Proceedings"

APPENDIX 6Witnesses who appeared before the Committee



156 - 157

APPENDIX 7Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Philip WONG Yu-hong, GBS, at the first public hearing of the Committee in respect of the Director of Audit's Report No. 53 on Tuesday, 8 December 2009



158 - 159

Appendices relating to Part 7: "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 2009"

APPENDIX 8Letter of 25 January 2010 from the Secretary for Financial Services and the Treasury



160 - 166

Appendices relating to Chapter 1 of Part 8: "Administration of the Sports Subvention Scheme"

APPENDIX 9Opening statement made by the Director of Leisure and Cultural Services at the public hearing on 14 December 2009



167 - 168

APPENDIX 10Letter of 11 December 2009 from the Director of Leisure and Cultural Services



169 - 181

APPENDIX 11Letter of 31 December 2009 from the Director of Leisure and Cultural Services



182 - 187

Appendices relating to Chapter 3 of Part 8: "Hong Kong Productivity Council: Corporate governance and administrative issues"

APPENDIX 12Opening statement made by the Secretary for Commerce and Economic Development at the public hearing on 8 December 2009



188 - 189

APPENDIX 13Opening statement made by the Chairman of the Hong Kong Productivity Council ("HKPC") at the public hearing on 8 December 2009



190 - 192

APPENDIX 14Letter of 28 December 2009 from the Commissioner for Innovation and Technology



193 - 195

APPENDIX 15Supplementary information provided by the HKPC showing the matching results of the examples of stock items not located in the 2005 stocktake with items found in the HKPC Building



196

APPENDIX 16Letter of 29 December 2009 from the Executive Director of the HKPC



197 - 233

APPENDIX 17Diagram provided by the HKPC showing the cycles of staff performance appraisal and financial year for the determination of variable pay



234

APPENDIX 18Supplementary information provided by the HKPC relating to short-listing of candidates for job interview



235 - 236

APPENDIX 19Letter of 28 December 2009 from the Commissioner for Innovation and Technology



237 - 238

APPENDIX 20Letter of 29 December 2009 from the Executive Director of the HKPC



239 - 240

Appendices relating to Chapter 4 of Part 8: "Office of the Privacy Commissioner for Personal Data"

APPENDIX 21Opening statement made by the Secretary for Constitutional and Mainland Affairs at the public hearing on 17 December 2009



241 - 242

APPENDIX 22Opening statement made by the Privacy Commissioner for Personal Data at the public hearing on 17 December 2009



243 - 244

APPENDIX 23Opening statement made by the Privacy Commissioner for Personal Data at the public hearing on 21 December 2009



245 - 248

APPENDIX 24Submission of the Privacy Commissioner for Personal Data to the Public Accounts Committee



249 - 280

APPENDIX 25Controlling Officer's Report on Office of the Privacy Commissioner for Personal Data



281 - 282

APPENDIX 26Letter of 15 January 2010 from the Privacy Commissioner for Personal Data



283 - 307

APPENDIX 27Letter of 4 January 2010 from the Privacy Commissioner for Personal Data



308 - 324

APPENDIX 28Tables provided by the Privacy Commissioner for Personal Data showing the percentage of the surplus arising from the Office of the Privacy Commissioner for Personal Data's inability to recruit new staff to fill staff vacancies



325

APPENDIX 29Information provided by the Privacy Commissioner for Personal Data on the reasons for departure of complaint handling officers of the Operations Division from 2004 to 2008



326 - 327

APPENDIX 30Letter of 18 December 2009 from the Privacy Commissioner for Personal Data



328 - 335

APPENDIX 31Information provided by the Privacy Commissioner for Personal Data on the distribution of staff of the Office of the Privacy Commissioner for Personal Data



336 - 337

APPENDIX 32Memorandum of Administrative Arrangements signed between the Government and the Privacy Commissioner for Personal Data on 4 September 2009



338 - 351

ACRONYMS AND ABBREVIATIONS



352 - 355