TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 35

i

(c)

(ii) the P.E. subhead should only show the posts and grade of posts without provision of funds;

the revenue subhead should only show the appropriate percentage for staff on-costs to be reimbursed by the Urban Council (or the Housing Authority). Only on-cost payments will be credited to the relevant revenue head.

All advance accounts will be cleared each month.

(b) Annually Recurrent Other Charges: provision of

services for the Urban Council and the Hong Kong Housing Authority

6.

At present Government provides sundry services for the Urban Council and the Housing Authority. Unless otherwise specified and an exception is made, the Council and the Housing Authority will be reqired to pay to the Government the full costs of all services and materials provided by the Government. Unless otherwise specified, in general an on-cost of 20% is included in the amount to be recovered from the respective organizations to reflect full administrative overheads. services provided by the departments are charged to the relevant departmental head of expenditure. Reimbursements from the

The

Urban Council and the Housing Authority in respect of the Departmental services are credited to Revenue Head 15 Subhead 7 Departmental services to the Housing Authority and Subhead 8 Departmental services to the Urban Council respectively.

7.

Proposal

In line with the proposal detailed in paragraph 4 above, to avoid inflating the revenue and expenditure estimates, it is proposed that provision of funds in respect of services for the Urban Council and the Housing Authority be excluded from the estimates of expenditure, while only the on-cost element to be refunded by the respective organisation will continue to be included in the Revenue estimates.

8.

The practical effect would be that

2

(a)

under the Annually Recurrent head of expenditure, provision would exclude the cost of services to the Udan Council and the Housing Authority;

(b)

the estimated revenue would only show the on-cost element to be reimbursed by the two organisations in respect of services provided.

3

/(c)