(b) where any matter referred to in the Director of Audit's report on the accounts of the government relates to affairs of an organization subvented by the Government, the person normally required to attend before e Committee shall be the Controlling Officer of the vote from which the relevant subvention has been paid, but the Committee shall not preclude the calling of a representative of the subvented body concerned where it is considered that such a representative can assist the Committee in its deliberations;
(c) the Director of Audit, the Deputy Financial Secretary and the Director of Accounting Services shall be in attendance when Controlling Officers or other persons are providing information or explanations to the Committee;
(d) the Committee shall take evidence from any parties outside the civil service and the subvented sector before making reference to them in a report;
(e) the Committee shall not normally make recommendations on a case on the basis solely of the Director of Audit's presentation;
(ƒ) the Committee shall not allow written submissions from Controlling Officers other than as an adjunct to their personal appearance before the Committee; and
(g) the Committee shall hold informal consultations with the Director of Audit from time to time, so that the Committee can suggest fruitful areas for value for money study by the Director of Audit.
2.2 The Government's Response. The Government's response to the Committee's report is contained in the Government Minute, which comments as appropriate on their conclusions and recommendations, indicates what action the Government proposes to take to rectify any irregularities which have been brought to notice by them or by the Director of Audit and, if necessary, explains why it is not intended to take action. It is the Government's stated intention that the Government Minute should be laid on the table of the Legislative Council within three months of the laying of the report of the Committee to which it relates.
3.1
3 REPORT FOR THE YEAR ENDED 31 MARCH 1985
The Laying of the Report. The Director of Audit's report for the year ended 31 March 1985 was laid in the Legislative Council on 20 November 1985. The Committee's subsequent report was tabled on 5 February 1986, thereby meeting the requirement of the Audit Ordinance and of Standing Order 60A that the report be tabled within three months of the Director of Audit's report being laid.
3.2 The Government Minute. The Government Minute was laid on the table of the Legislative Council on 16 April 1986. A progress report on matters outstanding from the Minute was issued in September 1986. The Committee now wish to be informed of the progress on matters set out in paragraphs 3.3 to 3.54 below. They are still outstanding.
3.3 Underutilization of roadworks equipment and delay in revising hire charges: the conclusions of the Finance Branch of the Government Secretariat on its review of assets in the Highways Department and on its service-wide review of the utilization of assets, their cost-effectiveness and the policy on the replacement of obsolete assets. (Paragraph 3.5 of P.A.C. Report No. 8). In paragraph 3.5 of their Eighth Report the Committee recorded that following the introduction by the Highways and the Agriculture and Fisheries Departments of a management information system to provide regular monitoring of the utilization and cost-effectiveness of equipment, the Administration was considering the creation of a similar system, based on computers, in other departments. In addition, the Medical and Health Department had set in hand a pilot study into such a system which could also be used to assist with the maintenance, utilization and replacement of plant and equipment in a cost-effective manner.
3.4 The Government Minute laid before the Legislative Council in April 1986 said that the computerized asset register system in the Medical and Health Department was almost fully operational and that the Finance Branch of the Government Secretariat was then helping in the production of statistics to be used in the system. Finance Branch intended to issue a Financial Circular in April or May 1986 requiring departments to maintain, preferably on computer, asset register systems. The need to phase introduction was recognized. The timetable would depend, inter alia, on the acquisition of computers, the size of the asset register and the availability of Finance Branch assistance.
3.5 The Committee note that the computerized asset register system of the Medical and Health Department is still not fully operational. They understand that a value for money report on the feasibility of including utilization statistics in the computerized asset register system will be issued by the Finance Branch shortly. The Committee wish to be informed of the progress in this matter.
3.6 The Committee also wish to be informed of the Administration's timetable for the implementation of an asset register system in Government departments.
3.7 Weaknesses in financial and technical control and the inability of the Government to monitor effectively the activities of the power companies in the implementation of the capital and maintenance programmes for public lighting. (Paragraphs 3.7-3.8 of P.A.C. Report No. 8). In their Eighth Report the Committee concluded that a satisfactory monitoring of public lighting would not be achieved until an agreement was signed with each of the two power companies. However, a formal agreement with the China Light and Power Company Limited was expected to come into effect in April 1986. This would be used as a model for a similar agreement with the Hong Kong Electric Company Limited with a view to securing further improvements in financial and technical controls. Bi-monthly meetings between the Highways Department and the Hong Kong Electric Company Limited were being held.
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