61. Head 83-Subventions: Medical. Subhead 118. Society for the Aid and Rehabilitation of Drug Addicts. The Society for the Aid and Rehabilitation of Drug Addicts is a subvented organization, the primary aim of which is to give aid to, to treat and to rehabilitate persons addicted to drugs. Its main effort is concentrated at a treat- ment centre at Shek Kwu Chau, with a capacity of 500 male patients, but provision is also made for 30 female patients at a women's treatment centre and after-care for patients discharged from both centres is provided from five offices in Hong Kong and Kowloon. Originally the Society was subvented on a discretionary basis, but with effect from 1st April, 1968 the award was changed to a deficiency grant. In the six years subsequent to that change, the annual subvention paid by Government increased six-fold, from $1,431,800 in 1968-69 to $8,670,000 in 1974-75, constituting approximately 90% of the Society's income. This increase, which was neces- sitated by the substantial rise in the Society's expenditure during the period, gave rise to some concern and under powers conferred on me by the provisions of the Audit Ordinance I carried out an examination of the records of the Society in order to ascertain whether all moneys granted to it from the public purse had been expended wholly and exclusively for the purposes for which they were voted and with due regard for economy, and whether there were any indications of maladministration or waste or extravagance in their use. My con- clusions were that there were serious weaknesses in the administration of the Society, notably in the absence of an effective system of control over expenditure, in unacceptable procedures for the procurement and control of stores, and in the existence of extensive over-staffing, and that the increase in the Government subvention had been disproportionate to the service provided by the Society.
62. Although at the time of my visitation in mid-1975 the Society had been functioning for about twelve years, a Finance Section had been in operation for only a few months and had inherited a situation in which, not only were the budget procedures ineffective, but there were substantial delays in writing up the books of account. The situation was such that decisions appeared to have been made with little consideration for their financial implications and without regard to whether appropriate provision had been included in the budget. This lack of proper financial discipline was inter alia reflected in the absence of adequate procedures for the purchase of equipment, foodstuffs and other stores at the Shek Kwu Chau Treatment Centre. Tenders were not invited nor were contracts entered into for such regular purchases as food and fuel and it is doubtful if the best value was always obtained for the money spent. In the case of rice, for example, my calculations indicated that purchases were often made at prices substantially above ruling market rates. The basic system of control of stores was rudimentary. Many purchases were not taken on ledger charge, proper inventories of equipment were not maintained and, where patients were engaged in productive activities, the records of the use of materials and of the goods produced were inadequate and poorly kept. Little attempt seemed to have been made to establish any form of internal check or control or to carry out inspections of the records.
63. Similar lack of control was evident in the staffing structure of the Society. Again at the Shek Kwu Chau Treatment Centre the approved establishment was nearly 50% higher than that considered necessary when the original proposals to expand the Centre to its present size were adopted. The excess staff position was appreciated by the Medical Superintendent himself who, as long ago as 1972, reported that there was "a dispropor- tionate staff-patient ratio, ... anachronisms in the allocation of various duties to various departments, and . . . overall inefficiency" and he recommended a completely new appraisal of the staff situation, the reas- signment of duties and "the dead wood cleared out". Little effective action on this report appears to have been taken by the Society. A staff inspection made by an officer of the Finance Branch of the Government Secretariat following my own report, recommended that of an establishment of 119 posts at the Centre, 35 were redundant and could be deleted.
64. In the After-care Section the increase in the staff establishment was even more noticeable, having risen between 1968-69 and 1973–74 by some 600% (from 18 to 123) whilst the caseload over the same period rose by only 66% (from 1,487 to 2,465). This rapid growth was motivated by the desire to improve the after-care service and increase the abstinence rate amongst former patients, but it presented the considerable problem of recruiting staff of the right calibre and qualifications and of training and deploying them effectively. Whilst I am not competent to comment on the efficacy of the after-care service provided, it is a matter of statistical record that despite the more generous staff/case ratio, the rate of recidivation during this period did not fall as had been hoped but in fact showed a slight rise, and it would seem that the service might have functioned more effectively and considerably more economically if greater regard had been had to the quality of the social workers than to their quantity.
65. In recording my observations on the expenditure by the Society it may be pertinent to emphasize that my concern is directed solely towards ensuring that the not inconsiderable subvention provided by Government to the Society is spent in a proper and economical manner so as to obtain the best value for public money and it is not my intention to deprecate in any way the valuable work undertaken by the Society in the campaign against drug addiction. On the contrary I have suggested that much more could be achieved, and the Society's role improved, by the efficient deployment of the resources available, and also that more could perhaps be
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