Annual Report 1997-98

Finance and Accounts In anticipatio n o f t h e UGC' s decisio n t o impos e a 1 0 per c en t cu t i n t h e allocatio n o f fund s for th e 1998-200 1 triennium, t h e Universit y ha s proactivel y prepare d itsel f fo r the f o r t h c om i n g financia l stringenc y b y exercisin g pruden t resource managemen t . Al l unit s hav e bee n e n c o u r a g e d t o plan ahea d wit h flexibilit y an d t o striv e for highe r efficiency . Through t h e c o n c e r t e d effor t o f al l a c adem i c an d supporting units , t h e financia l positio n o f th e Universit y significantly improve d i n t h e 1997-9 8 fisca l year , th e las t year o f t h e 1995 - 9 8 triennium . Tota l ne t asset s increase d by 1 8 pe r cent t o $1. 9 billion . Investment s g r e w significantl y to nearl y $1. 0 billio n notwithstandin g th e recen t financia l turmoil i n t h e Asia n economies . Th e cas h an d time-deposit s balance reache d $1.2 5 billio n a t 30 t h Jun e 1998 . Thi s yea r also witnesse d a gradua l buil d u p o f reserves , reporte d a t $ 5 6 2 million . Th e Universit y wou l d ente r t h e ne w trienniu m of 1998-200 1 i n a health y financia l state , an d i s read y t o me e t th e challenge s ahea d wit h confidence . While tota l genera l incom e increase d b y 4 pe r c en t ove r the pas t year , t h e proportio n of i n c om e f r o m g o v e r nme n t subventions i s r edu c e d f r o m 8 0 pe r c en t i n 1996-9 7 t o 7 9 per c en t i n 1997-98 . A t 1 6 pe r c en t o f tota l genera l income , fees i n c om e o n t h e othe r han d adhe r e d closel y t o t h e g o v e r nme n t targe t o f recoverin g 1 8 per cen t o f p r o g r amm e expenditure. Total genera l expenditur e for th e yea r increase d a t a baseline leve l o f 8 pe r cent . Expenditur e i n t h e a c adem i c depa r tmen ts stabilize d a t abou t 7 4 pe r cen t o f t h e University's total genera l expenditure . Expenditur e fo r administration wa s consistentl y kep t a t aroun d 5 pe r cen t of t h e genera l expenditure , amo n g th e lowes t i n UGC - f unded institutions . In a n effor t t o increas e productivity , th e Universit y ha s bee n c ondu c t i ng interna l ma n a g eme n t efficienc y review s o f major administrativ e unit s sinc e 1996 . Th e review s hav e progressed satisfactorily , resultin g i n measurabl e i mp r o v ement o f resourc e utilizatio n an d a heightene d awa r ene ss o f valu e for mone y practices . Wit h t h e assistance of a n outsid e consultant , t h e Bursar y wa s reviewe d i n early 1998 , wit h it s ke y operationa l a s pe c t s an d financia l control system s carefull y assessed . Th e revie w reaffirme d that t h e offic e ha d ma d e consisten t progres s i n financia l ma n a g eme nt throug h lon g rang e re-engineerin g strategie s and g o o d t e a m work . Workin g i n clos e partnershi p wit h a c adem i c an d othe r administrativ e departments , th e Bursary help s t h e m achiev e effectivenes s an d efficienc y i n manag i ng financia l affairs , an d play s a ke y rol e i n ensurin g prudent ma n a g eme n t o f t h e University' s financia l resources . 香港中文大學年報 捐贈、財務與賬目 84