Financial Secretary informed the Committee that it was proposed to redeploy the resources available in the Finance Branch to enable the carrying out of an enhanced programme of value for money studies in lieu of establishment rev The Public Accounts Committee gave their full support for the enhanced programme and requested that they be formed of further progress and of any difficulties that might arise in the implementation of agreed recom- mendations. A recent audit review indicates that developments have been encouraging.
68. In January 1986 the Finance Branch informed the Establishment Sub-Committee of the Finance Committee of the Legislative Council of the concept of the enhanced programme of value for money studies, explaining that over the previous three years the programme had aimed at containing the size of the civil service and studies had been targeted on areas where it was felt that reductions could be achieved. After three years of tight budgets it was felt that the emphasis should change and that henceforth the studies should be primarily concerned with assisting departments to make the best use of their resources and not specifically as cost-cutting exercises. In order to involve departments and policy branches of the Government Secretariat more closely in the studies, Value for Money Steering Groups would be created in all major departments. The Steering Groups would be chaired by controlling officers and would be attended by directorate officers from the Finance Branch, the Civil Service Branch and the relevant policy branch of the Government Secretariat. The Steering Groups would be responsible for commissioning, monitoring and agreeing all value for money studies reports. Upon agreement of a report by the relevant Steering Group, it would be forwarded to the Establishment Sub-Committee together with an implementation plan. The Finance Branch would thereafter provide the Establishment Sub-Committee with progress reports on implementation.
69. According to a progress report prepared by the Finance Branch in May 1986, Steering Groups had been established in the Electrical and Mechanical Services, Medical and Health, Housing, Urban Services, Regional Services, and Agriculture and Fisheries departments and in the Royal Hong Kong Police Force, and the Steering Group for the Customs and Excise Department was in the pipeline. It was also reported that some internal re-organization was underway in the Finance Branch to facilitate the objective of extending the Steering Group concept to all major departments as quickly as resources would allow.
70. The progress report also stated that during the period October 1985 to April 1986, the value for money studies programme had realized a saving of 688 staff posts (bringing the total since the programme commenced in mid-1983 to 2 900 posts). Savings realized during the same period were $158 million (bringing the total to $629 million since mid-1983). The report concluded that the Steering Groups had proved extremely effective in identifying potential studies and in agreeing and implementing recommendations, and that there were no major difficulties in commissioning, conducting and implementing the studies.
I have suggested to the Deputy Financial Secretary that once the internal re-organization of the Finance Branch is completed, he may wish to consider preparing a plan with a view to progressively setting up Steering Groups in all major departments over a specified period.
72. Head 25- Building Development Department. Subhead 111. Hire of services and professional fees. The cleaning of Government premises is currently undertaken by 14 biennial contracts at a cost of $20 million each year. The Director of Architectural Services is responsible for letting and administering the cleaning contracts and departments are individually responsible for the supervision and certification of the cleaning services provided by the contractors at the locations specified in the contracts.
73. In addition to regular cleaning duties the conditions of contract stipulate that the contractors have to provide at specified locations a number of on-site cleaners on a full-time or part-time basis to perform cleaning tasks as required. An audit review of the hours of work and performance of cleaners provided under these conditions revealed that the specified hours were not in all cases being worked and that the contractors were thus being paid for services which had not been performed. During audit visits to locations selected from four contracts it was found that in a number of instances cleaners could not be located at their places of work, cleaners worked less than the hours stipulated in the contract and cleaners were not provided every day in the year, contrary to the conditions of contract. It was also noted that departmental supervising officers in multi-user locations were not in all cases aware that they could make use of the full-time cleaners employed at that location to provide routine and supplementary cleaning services. My observations also indicated that the number of cleaners provided at some locations were in excess of the actual requirements and that there was inadequate day-to-day supervision over them. Based on the results of my review I have estimated that for the four selected contracts the Government may have paid some $235,000 during the period July 1984 to March 1986 for services which were not supplied by the contractors.
74. In response to my enquiries, the Director of Architectural Services expressed the view that since payments were based on departments' certificates that the work had been performed, it would now be difficult to prove default by the contractors. He would however request those departments responsible for the locations where deficiencies were found in audit to review the documentation with a view to possible recovery of any overpayments which could be substantiated and he would also critically review the need for on-site cleaners at all locations where they were provided. With a view to improving departmental control generally, the Director of Architectural Services has informed me that he will give briefings to supervising officers on their duties and responsibilities under the contracts. The briefing will stress the contractual details, the availability of on-site cleaners in other departments within the same building and the proper certification of cleaning statements.
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