XN000022-1981-11-12 — Page 7

THURSDAY, NOVEMBER 12, 1961

MRS CHAN SAID STANDARD COSTS WOULD BE REVIEWED REGULARLY AND RECOGNISED PRICE INCREASES SUCH AS A CIVIL SERVICE SALARY AWARDS WOULD LEAD TO ADJUSTMENTS FOR THOSE SERVICES FUNDED IN FULL OR ON A PERCENTAGE BASIS.

AS A GENERAL RULE, THE ALLOCATION GIVEN TO AN AGENCY WOULD NOT BE +TOPPED UP+, NEITHER WOULD AGENCIES BE REQUIRED TO RETURN ANY SAVINGS AT THE END OF THE DAY.

HOWEVER, SURPLUS FUNDS ARISING FROM GOVERNMENT SUBVENTION WOULD NEED TO BE PLACED IN A SEPARATE ACCOUNT AND MAY ONLY BE USED FOR PURPOSES APPROVED BY THE DIRECTOR OF SOCIAL WELFARE.

MRS CHAN SAID WORK HAD BEGUN ON DETERMINING STANDARD COSTS FOR SERVICES AND THE DEPARTMENT WOULD SEEK THE VIEWS OF THE VOLUNTARY AGENCIES INVOLVED BEFORE PUTTING ANY RECOMMENDATIONS TO THE SOCIAL WELFARE ADVISORY COMMITTEE OR THE REHABILITATION DEVELOPMENT CO-ORDINATING COMMITTEE FOR THEIR ADVICE.

+EUT THE SERVICES TO BE COVERED ARE MANY AND IT WILL OBVIOUSLY TAKE TIME TO COMPLETE THIS EXERCISE, SHE SAID.

THE AIM WAS TO IMPLEMENT THE NEW SYSTEM FULLY BY 1984/85.

IN THE INTER IM, CATEGORY I SERVICES WOULD RECEIVE 100 PER CENT OF THE EXISTING RECOGNISED EXPENDITURE, ADJUSTED FOR PRICE INCREASES BUT DISREGARDING ALL INCOME EXCEPT FEES.

CATEGORY II SERVICES WOULD RECEIVE EITHER A FIXED PERCENTAGE DETERMINED ON THE AVERAGE LEVEL OF FINANCIAL SUPPORT GIVEN TO A PARTICULAR SERVICE, AGAIN ADJUSTED FOR PRICE RISES BUT DISREGARDING ALL INCOME EXCEPT FEES, OR AN APPROPRIATE LUMP SUM ARRIVED AT ARBITRARILY.

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AS A GENERAL PRINCIPLE, THE GOVERNMENT HOPED THAT SALARIES PAID BY AGENCIES TO THEIR STAFF WOULD APPROXIMATE THOSE PAID TO THE IR CIVIL SERVICE COUNTERPARTS WITH SIMILAR QUALIFICATIONS AND RESPONSIBILITIES. GUIDELINES WOULD BE PROVIDED FOR THIS PURPOSE.

MRS CHAN STRESSED THAT THE FINAL DECISIONS WOULD BE UP TO THE AGENCIES' OWN MANAGEMENT.

THE SOCIAL WELFARE DEPARTMENT WILL NOT SEEK TO IMPOSE ANY DIRECT CONTROL, SHE SAID.

HOWEVER, IT IS IMPORTANT FOR AGENCIES TO APPRECIATE THAT THE GOVERNMENT HAS A RESPONSIBILITY TO ENSURE THAT PUBLIC FUNDS ARE SPENT FOR THE PURSES INTENDED.

THE DEPARTMENT INTENDED TO DISCHARGE THIS RESPONSIBILITY NOT BY CONTROLLING INFITS BUT BY CLOSELY MONITORING THE SERVICES PROVIDED.

MRS CHAN NOTED THAT SOME AGENCIES HAD SUGGESTED THAT THIS MONITORING WAS TANTAMOUNT TO A MISTRUST OF VOLUNTARY AGENCIES.

ei THINK THIS IS AN UNWARRANTED AND EXTREME VIEW, FOR TAKEN TO ITS LOGICAL CONCLUSION, NO MANAGEMENT NEEDS TO SET UP ANY INTERNAL CONTROL OF MONITORING SYSTEM SINCE ALL STAFF SHOULD IMPLICITLY BE TA

TO DO THEIR WORK, SHE SAID.

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