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Supplementary statements on government accounts
Following is a question by the Hon Christine Loh Kung-wai and a written reply by the Secretary for the Treasury, Mr Kwong Ki-chi, in the Legislative Council today (Wednesday):
Question:
With reference to the statement in the Financial Secretary's 1994/95 Budget speech that supplementary statements on the Government's accounts concerning certain selected government activities will be prepared on an experimental basis in order to show the full cost of such activities, will the Government inform this Council what progress has been made in preparing such statements?
Reply:
The Financial Secretary informed Members in his 1994/95 Budget Speech that there were strong reasons for retaining the existing cash-based accounts. Nevertheless, he also proposed, on an experimental basis, to prepare supplementary statements to help us see the full cost of selected activities.
We have subsequently conducted a pilot study which involved the production of Resource Accounts for four selected departments aimed at comparing the full costs of government programmes with the results achieved. We have also commissioned a consultancy study to advise on the accounting issues that need to be addressed in introducing such accounts. The studies indicate that while Resource Accounts would provide supplementary costs information to aid management, the extent of its direct applicability for management decisions would vary, depending on the type of activities involved. We therefore intend to conduct a further pilot study and produce Resource Accounts for a selected number of services-provider departments. This study should help us consider how we can fully utilise Resource Accounts for management
purposes.
End