G.F. 323
CONFIDENTIAL #
ANNEX B TO XCC(77)30
Memorandum for the Housing Authority
Proposed measures for the Housing Authority's financial performance under the new financial
arrangements with Government
At its meeting on 4th April 1977 the Housing Authority Finance Committee endorsed a proposal to introduce a number of performance measures for certain key areas of activity. The Committee welcomed these proposals as enabling the Authority to monitor its financial performance under the new financial arrangements with Government. These are initial ideas and it is hoped to refine them as time goes
on.
2.
(a)
(b)
The following performance measures are suggested ;-
Overall Financial Performance
An indicator is required to assess the overall financial performance of the Housing Authority in relation to the resources utilised, in other words the performance on capital employed. This overall performance measure should be at a level that ensures prudent financial policies on expenditure on the construction and management of buildings and on setting rents and other sources of revenue.
Amount transferred to General
Revenue Reserve during the year General Revenue Reserve at the beginning of the year and Hong Kong Government Contribution at
the end of the year
On this basis, the initial overall per- formance measure for 1976-77 is shown at Appendix 1, Changes in the overall
financial performance measure year-by-year
will provide a useful indicator of the
trend of the Authority's financial performance.
Rent Sufficiency
Total rents receivable including
non-domestic
Total working expenses including
finance charges
The purpose of this indicator is to enable the Authority to ensure that the revenue
CONFIDENTIAL
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