Annual Report 2004–05

comprised self-financed academic programmes, i n c l u d i ng the School of Co n t i n u i ng Studies a nd other taught postgraduate programmes, stabilized at $564 m i l l i on for the year. Total income of the Un i v e r s i ty for 2005 d r o p p ed b y 11 per cent to $4,558 m i l l i o n, due ma i n ly to the decline i n Go v e r nme nt Subventions a nd the ma t c h i ng grant p a yme n ts i n 2004 noted earlier. T u i t i o n, P r o g r ammes a nd O t h er Fees r e c e i v ed f r o m g o v e r n m e n t - f u n d ed a nd s e l f - f i n a n c ed programmes of $924 m i l l i on increased by $74 million, or 9 per cent compared to 2004. Since t u i t i on fees for g o v e r nme n t - f u n d ed p r o g r ammes we re f r o z en at last y e a r 's level, the increase i n fee i n c ome w a s m a i n l y a c c o u n t ed for b y the e x p a n s i on of t a u g ht p o s t g r a d u a te p r o g r a mm es operating u n d er the self-financed mo d e. Interest a nd I n v e s t me nt I n c ome of $289 m i l l i o n was s l i g h t ly h i g h er t h a n t h at i n 2004. The U n i v e r s i t y 's p r o - a c t i ve i n v e s t me nt strategy a n d the g r a d u al rise i n s h o r t - t e rm interest rate c o n t r i b u t ed to the increase of such income. Income f r om A n c i l l a ry Services at $134 m i l l i on was l ower b y 13 per cent t h an i n 2004, whereas O t h er I n c ome w h i c h was d e r i v ed m a i n l y f r o m Co n t r a ct Research a n d Services r e n d e r ed to outsiders was fractionally l ower t h an last year's at $191 m i l l i o n. The total expenditure came d o w n b y 5 per cent to $3,908 m i l l i on this year, versus $4,093 m i l l i on i n 2004. Total spending o n L e a r n i ng and Research this year was $3,047 m i l l i on a nd accounted for 70.3 per cent of the total expenditure i n 2005. The c omb i n ed effect of salary r e d u c t i on a nd cost- saving measures i mp l eme n t ed i n the past years resulted i n further r e d u c t i on of the University's operating expenditure. Total N e t Assets soared to $5,206 m i l l i o n b y 30th June 2005 f r o m last y e a r 's $4,556 m i l l i o n, m a r k i n g an increase of 14 per cent. A l t h o u g h f u n d i n g f r o m g o v e r n m e nt sources h a d been contracting, the Un i v e r s i ty was able to secure extra f u n ds f r om other sources, especially f r om donations. W i t h o n ly $92 m i l l i on transferred i n f r om the Income and Expenditure Statement, total General a nd D e v e l o pme nt Reserve F u n d rose s l i g h t ly f r om $1,376 m i l l i o n last year to $1,468 m i l l i on b y the e nd of 2005. The balance is still w i t h i n the guideline set b y the Un i v e r s i ty Grants Committee. W i t h substantial donations received for e n d o wm e nt a nd other restricted uses, p l us o p e r a t i ng s u r p l us f r om self-financed a nd other ancillary activities, Restricted F u n ds increased b y $566 m i l l i on or 19 per cent to a total of $3,518 m i l l i o n. A f t e r a series of cost-saving measures, the U n i v e r s i ty h a d successfully r e d u c ed its o v e r a ll operating b u d g et a nd was able to absorb the impact of a 12 per cent f u n d i ng cut i mp o s ed b y the government. The government has announced major educational reforms i n the c om i ng years a nd the U n i v e r s i t y 's f i n a n c i al s t r e n g th w i l l be p u t to the test. Fa c i ng the challenges ahead, the Un i v e r s i ty w i l l continue to manage its finances w i t h prudence. 1 0 4 捐 贈 、 財 務 與 賬 目 Donations, Finance a nd A c c o u n ts