TNAG-0760-FCO40-964-Annual-accounts-of-the-Hong-Kong-Government-for-1977-1978 — Page 22

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55. The comments on the Group's management of construction

contracts are noted, and it is hoped that the recruitment of a qualified

Property Manager will lead to an improvement.

56. An agreement was made on 29th March 1971 between the Hong

Kong Government and the Tung Wah Group of Hospitals, to enable the

Medical Division of the Group to receive the following items of

income

(a)

40% of the income derived from the

(b)

(c)

흐흐

(d)

net proceeds of flag days;

50% of all uncommitted donations;

fees charged for the provision of

medical services; and

any donations specified for the

medical services of the Group.

As pointed out by the Director of Audit, the Medical Division had been

receiving a reducing share of the income derived from donations. It

is therefore proposed to accept the Director's suggestion to reconsider

the terms of the agreement with the Group.

57.

The Director's comments on the keeping of large cash balances

are noted. The newly appointed Chief Accountant will no doubt ensure

that surplus funds are invested. As regards the sale of swill, the

proceeds are now being credited to revenue.

58.

When it came to the attention of the Government, in early 1973,

that the Tung Wah Group of Hospitals proposed to abolish tuition fees

in its secondary schools it was ascertained that the funds to cover the

cost of the proposal would be drawn from sources unconnected with the

funding of the Group's other services. The proposal did not contravene

the Code of Aid for Secondary Schools and, accordingly, it was not felt

that Government could legitimately object to its implementation.

/59. The

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