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 2016

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 67)



February 2017

P.A.C. Report No. 67





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 - 5

3

The Government's Response

6

4

Part 3Report of the Public Accounts Committee on Report No. 64 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 64]

Laying of the Report

1

5

The Government Minute

2 - 13

5 - 18

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 2015 and the Results of Value for Money Audits (Report No. 65)
[P.A.C. Report No. 65]

Laying of the Report

1

19

The Government Minute

2 - 46

19 - 52

Part 5Committee Proceedings

Consideration of the Director of Audit's Report

1

53

Meetings

2

53

Arrangement of the Report

3 - 4

53

Acknowledgements

5

53

Part 6Observations 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 2016

1

54

Part 7Chapter

1.Maintenance and safety-related improvements of public rental housing flats

1

55

2.Funding of universities by University Grants Committee

A.Introduction

1 - 10

56 - 60

B.Administration of recurrent grants

11 - 27

60 - 69

C.Administration of capital grants

28 - 43

69 - 76

D.Governance and other administrative issues

44 - 64

76 - 85

E.Conclusions and recommendations

65 - 67

85 - 95

3.Procurement and maintenance of fire services equipment

1 - 5

96 - 99

4.Management of abandoned construction and demolition materials

1 - 5

100 - 102

5.Hospital Authority's drug management

1 - 5

103 - 106

6.Funding of academic research projects by Research Grants Council

1 - 7

107 - 110

7.Sewerage systems in rural areas

1 - 5

111 - 114

8.Joint-office operation on water seepage in buildings

1 - 5

115 - 117

9.Audience building activities for performing arts

1 - 5

118 - 120

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

 
121

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 67 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
122

Appendix relating to Part 1: "Introduction"

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

 
123 - 124

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'

 
125 - 127

Appendices relating to Part 3: "Report of the Public Accounts Committee on Report No. 64 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 64]"

Appendix 3Letter dated 2 February 2017 from Director of Food and Environmental Hygiene

 
128 - 131

Appendix 4Letter dated 17 January 2017 from Director of Water Supplies

 
132 - 134

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 2015 and the Results of Value for Money Audits (Report No. 65)
[P.A.C. Report No. 65]"

Appendix 5Letter dated 23 January 2017 from Secretary for Security

 
135 - 136

Appendix 6Location of the five commercial buildings and the five footbridges in the Central District

 
137

Appendix 7Letter dated 24 January 2017 from Secretary for Development

 
138 - 139

Appendix 8Letter dated 27 January 2017 from Director of the Environmental Protection

 
140 - 143

Appendix 9Letter dated 3 February 2017 from Secretary for Transport and Housing

 
144 - 146

Appendix 10Letter dated 10 January 2017 from Director-General of Civil Aviation

 
147 - 150

Appendix relating to Part 5: "Committee Proceedings"

Appendix 11Witnesses who appeared before the Committee

 
151

Appendices relating to Chapter 2 of Part 7: "Funding of universities by University Grants Committee"

Appendix 12Opening statement made by Secretary for Education at the public hearing on 12 December 2016

 
152 - 154

Appendix 13Opening statement made by Secretary-General, University Grants Committee at the public hearing on 12 December 2016

 
155 - 158

Appendix 14Letter dated 23 December 2016 from Secretary-General of University Grants Committee

 
159 - 169

Appendix 15Letter dated 23 December 2016 from Secretary for Education

 
170 - 175

Appendix 16Letter dated 4 January 2017 from Secretary-General of University Grants Committee

 
176 - 180

Appendix 17Letter dated 6 February 2017 from Secretary-General of University Grants Committee

 
181 - 185

Appendix 18Letter dated 3 January 2017 from Secretary for Financial Services and the Treasury

 
186 - 188

Appendix 19Letter dated 13 January 2017 from Secretary-General of University Grants Committee

 
189 - 201

Appendix 20Letter dated 18 January 2017 from Secretary-General of University Grants Committee

 
202 - 204

Appendix 21Letter dated 18 January 2017 from Secretary for Education

 
205 - 208

Appendix 22Letter dated 25 January 2017 from Secretary for Education

 
209 - 211

Appendix 23Letter dated 4 January 2017 from Secretary for Education

 
212 - 214

Appendix 24Number of applications for and student intakes of University Grants Committee-funded research postgraduate programmes by place of origin from 2012-2013 to 2016-2017 academic years

 
215

Appendices relating to Chapter 3 of Part 7: "Procurement and maintenance of fire services equipment"

Appendix 25Letter dated 10 January 2017 from Secretary for Security

 
216 - 219

Appendix 26Letter dated 9 January 2017 from Director of Fire Services

 
220 - 256

Appendix 27Letter dated 4 January 2017 from Director of Government Logistics

 
257 - 259

Appendix 28Letter dated 4 January 2017 from Director of Electrical and Mechanical Services

 
260 - 265

Appendix 29Letter dated 3 January 2017 from Director of Marine

 
266 - 272

Appendices relating to Chapter 4 of Part 7: "Management of abandoned construction and demolition materials"

Appendix 30Letter dated 3 January 2017 from Director of Environmental Protection

 
273 - 283

Appendix 31Letter dated 3 January 2017 from Director of Civil Engineering and Development

 
284 - 290

Appendix relating to Chapter 5 of Part 7: "Hospital Authority’s drug management"

Appendix 32Letter dated 11 January 2017 from Secretary for Food and Health

 
291 - 316

Appendices relating to Chapter 6 of Part 7: "Funding of academic research projects by Research Grants Council"

Appendix 33Letter dated 6 January 2017 from Secretary for Education

 
317 - 319

Appendix 34Letter dated 3 January 2017 from Secretary-General of University Grants Committee

 
320 - 336

Appendix 35Letter dated 23 January 2017 from Secretary-General of University Grants Committee

 
337 - 341

Appendices relating to Chapter 7 of Part 7: "Sewerage systems in rural areas"

Appendix 36Letter dated 3 January 2017 from Director of Environmental Protection

 
342 - 359

Appendix 37Letter dated 3 January 2017 from Director of Drainage Services

 
360 - 363

Appendix 38Letter dated 9 January 2017 from Director of Food and Environmental Hygiene

 
364 - 366

Appendix 39Letter dated 3 January 2017 from Director of Lands

 
367 - 372

Appendices relating to Chapter 8 of Part 7: "Joint-office operation on water seepage in buildings"

Appendix 40Letter dated 9 January 2017 from Director of Food and Environmental Hygiene

 
373 - 389

Appendix 41Letter dated 9 January 2017 from Director of Buildings

 
390 - 395

Appendix relating to Chapter 9 of Part 7: "Audience building activities for performing arts"

Appendix 42Letter dated 10 January 2017 from Director of Leisure and Cultural Services

 
396 - 409

ACRONYMS AND ABBREVIATIONS

 
410 - 413