done in the way of "self-help" by the more intensive development of properly controlled revenue earning projects at the Shek Kwu Chau Treatment Centre. I have expressed the view that many of the weaknesses to which I in- vited attention stemmed from the lack of a full-time official in a position to direct and co-ordinate the work of the Society as a whole, for whilst the Executive Committee has an important role to play in the determina- tion of general policy, its nature as a body of part-time voluntary workers militates against its effectiveness in providing day-to-day management of an organization of the size of the Society. This view has not been accepted by the Chairman of the Society or by the Finance Branch of the Government Secretariat, who consider that the responsibilities for medical work and social work can be adequately met by the respective professional officers in charge of those areas reporting directly to the Committee. It has however been accepted that con- siderable improvement is necessary in the control of general administration, finance and staffing and the appoint- ment of an Administrative Secretary to be charged with responsibility for those areas is under consideration. Meanwhile I have been advised by the Chairman of the Society that following the appointment of the Financial Administrator, improvements to the budgetary and other financial procedures have already been effected.
66. Head 88—Universities and Polytechnic. The Chinese University of Hong Kong is a federation of three separately constituted colleges, each with its own administrative structure. Whilst appreciating the addi- tional cost of operating a federal system compared with a unitary system, the University nevertheless recognized several years ago that too great a proportion of expenditure was devoted to administration at the expense of that devoted to the academic departments and with a view to achieving economies, measures were introduced to pool resources and co-ordinate administrative functions. Faced with the need for further savings to meet an anticipated deficit in the 1975-76 financial year, a Working Group on Economy, which had been established in September, 1974, was enlarged in February, 1975 into a Committee on Economy charged with examining and making recommendations on ways of reducing expenditure and increasing income. The efforts of the Committee, which proposed measures designed to achieve savings in 1975-76 of nearly $6 million, had a salutary effect on cost-consciousness in the affairs of the University but the constitutional structure to some extent placed limita- tions on the degree of economy which could be accomplished. These limitations may be removed if the recom- mendations of the Fulton Commission, that the Colleges whilst expanding their academic function should lose much of the apparatus of administration, are implemented.
67. Meanwhile, following the agreement referred to in paragraph 60 of my previous report, that I should have access to the books and records of the two Universities and the Hong Kong Polytechnic, and the establish- ment with the institutions concerned of preliminary conventions governing the arrangements for the conduct of my audit reviews, I have paid an initial inspection audit visit to the Chinese University of Hong Kong and I have invited attention to cases in which I consider that the University has not always obtained the best value for money, as well as to various aspects of procedure where in my opinion improvements could be made which would lead to greater administrative efficiency.
68. It had earlier been pointed out by the University's own auditors that the system of control over furni- ture and equipment was not satisfactory and I found this to be particularly so in the Science Centre, where the departments of Biology, Physics, Chemistry, Bio-chemistry and Electronics had spent approximately $7 million on furniture, fittings, equipment and laboratory supplies over a five year period. I have suggested improvements in purchasing methods which should result in the University's obtaining lower prices than under the existing system and I have recommended the introduction of a central record of equipment, which will not only provide greater control but which, by facilitating its location by teaching staff, should assist in more effective utilization of the equipment maintained by the various departments of the Centre.
69. In reviewing the use made of the University's classrooms and lecture theatres I noted that although the University and Polytechnic Grants Committee had set provisional optimum utilization figures of approx- imately 75% of capacity for general teaching areas and 60% for workshops and laboratories, the utilization rate achieved by the Chinese University in 1975-76 was 26.4% for lecture rooms and seminar rooms, 10.3% for rooms for special use and 43.5% for science teaching laboratories. This was an improvement over that in the previous year and it is anticipated that with the growth of the student population, further improvement in teaching space utilization will follow. I have however suggested that in the light of the present figures the University may deem it appropriate to reconsider certain aspects of the current building programme.
70. Following the removal of the University to the Sha Tin campus (which has an area of 330 acres and varies in elevation from 14 feet to 450 feet) a relatively substantial sum has been allocated annually to intra- campus transportation; in 1974-75, for example, expenditure for this particular purpose formed the greater part of the figure of $945,540 recorded in the accounts under transportation expenses. The intra-campus transport system commenced in a modest way with only two or three vehicles but by 1975 had developed to such an extent that a fleet of 15 buses was required, providing a regular free-of-charge service round the campus, special trans- port to meet trains at the University Railway Station and convey the staff and students to the University head- quarters and upper level colleges, and transport to carry students between classes held in different colleges.
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