SUPPLEMENTAL REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 69 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



May 2018

P.A.C. Report No. 69A





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 4Administration of lump sum grants by the Social Welfare Department

A.Introduction

1 - 14

5 - 9

B.Financial monitoring

15 - 36

9 - 31

C.Self-assessment of service quality by non-governmental organizations

37 - 53

31 - 38

D.Monitoring of service delivery by Social Welfare Department

54 - 73

39 - 48

E.Governance and management matters

74 - 89

48 - 55

F.Review of lump sum grants subvention system

90 - 94

55 - 56

G.Conclusions and recommendations

95 - 97

57 - 74

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

 
75

CHAPTER IN THE DIRECTOR OF AUDIT'S REPORT NO. 69 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
76

Appendix relating to Part 1: "Introduction"

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

 
77 - 78

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'

 
79 - 81

Appendix relating to Part 3: "Committee Proceedings"

Appendix 3Witnesses who appeared before the Committee

 
82

Appendices relating to Part 4: "Administration of lump sum grants by the Social Welfare Department"

Appendix 4Speech made by Director of Audit at the public hearing on 12 December 2017

 
83 - 86

Appendix 5Opening statement of Secretary for Labour and Welfare for the public hearing on 12 December 2017

 
87 - 89

Appendix 6Letter dated 5 January 2018 from Director of Social Welfare

 
90 - 135

Appendix 7Letter dated 5 January 2018 from Secretary for Labour and Welfare

 
136 - 137

Appendix 8Letter dated 8 February 2018 from Director of Social Welfare

 
138 - 181

Appendix 9Sample of the proforma for Review Report on Remuneration Packages for Staff in the Top Three Tiers of Subvented Non-governmental Organizations

 
182 - 186

Appendix 10Sample of Annual Financial Report

 
187 - 195

Appendix 11Letter dated 9 April 2018 from Director of Social Welfare

 
196 - 237

ACRONYMS AND ABBREVIATIONS

 
238 - 239