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WEDNESDAY, MARCH 16, 1977
CONTROL OVER MANAGEMENT OF SUBVENTED ORGANISATIONS
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THE MEASURES OF CONTROL WHICH THE GOVERNMENT EXERCISES OVER THE MANAGEMENT OF SUBVENTED ORGANISATIONS IN THE SOCIAL SERVICE FIELD VARY WITH THE BASIS OF SUBVENTION, THAT IS, WHETHER THE SUEVENTION IS ON A DEFICIENCY GRANT OR DISCRETIONARY GRANT BASIS.
THIS WAS STATED TODAY BY THE SECRETARY FOR SOCIAL SERVICES, THE HON. LI FOOK KOW, IN REPLY TO A QUESTION BY REV. THE HON. JOYCE BENNETT IN THE LEGISLATIVE COUNCIL.
MR. LI SAID ALL AIDED SCHOOLS UNDER THE CODES OF AID TOGETHER WITH FOUR MEDICAL INSTITUTIONS WERE SUBVENTED ON A DEFICIENCY GRANT BASIS.
EXPENDITURE OF THESE SCHOOLS, HE WENT ON, WAS EFFECTIVELY CONTROLLED THROUGH CODES OF AID APPROVED BY THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL BUT MANAGEMENT WAS LEFT TO THE SCHOOL COUNCILS,
MR. LI NOTED THAT FOR DEFICIENCY GRANT HOSPITALS, MANAGEMENT INCLUDING FINANCIAL CONTROL WAS EXERCISED BY THE EXECUTIVE COMMITTEE CR AN EQUIVALENT BODY OF THE HOSPITAL ON WHICH GOVERNMENT REPRESENTATIVES SAT AS EX OFFICIO MEMBERS.
+THE BUDGETS FOR THESE HOSPITALS ARE APPROVED BY THEIR EXECUTIVE COMMITTEES AND THEY HAVE TO BE ADHERED TO UNLESS AUTHORITY TO VARY EXPENDITURE IS GIVEN BY THE COMMITTEE,+ HE ADDED.
THE SECRETARY POINTED OUT THAT OTHER HOSPITALS AND SOCIAL WELFARE ORGANISATIONS WERE ASSISTED ON A DISCRETIONARY GRANT BASIS.
+GOVERNMENT EXERCISES LITTLE CONTROL DIRECTLY OR INDIRECTLY OVER THE MANAGEMENT OF THESE ORGANISATIONS, + HE NOTED.
HOWEVER, MR. LI STRESSED THAT ANY SIGNIFICANT SURPLUS IN ONE YEAR WAS TAKEN INTO ACCOUNT WHEN THE SUBSEQUENT YEAR'S SUBVENTION WAS CONSIDERED.
TURNING TO THE UNIVERSITIES AND THE POLYTECHNIC, MR. LI TOLD COUNCIL THAT THE AMOUNT OF GRANT ALLOCATED WAS DECIDED ON THE RECOMMENDATION OF THE UNIVERSITIES AND POLYTECHNIC GRANTS COMMITTEE (U.P.G.C.).
+ONCE THE UNIVERSITIES AND THE POLYTECHNIC RECEIVE THE IR GRANT, IT IS PRIMARILY THEIR RESPONSIBILITY TO CONTROL EXPENDITURE, SUBJECT TO THE GUIDANCE FROM THE UNIVERSITIES AND PILYTECHNIC GRANTS COMMITTEE ON STANDARDS.+
THE SECRETARY ADDED THAT THE U.P.G.C. RECEIVED REGULAR REPORTS FROM THE UNIVERSITIES AND THE POLYTECHNIC AND MIGHT WARN THEP THAT IT MIGHT TAKE INTO ACCOUNT ANY UNJUSTIFIABLE DEVIATION FROM THEIR PREVICUSLY SUBMITTED PLANS AND ESTATES MEN AKING ITS RECOMMENDATIONS FOR THE NEXT BLOCK-CRANT PERIOD.
/CNE AVENUE