498
$4
HONG KONG URBAN COUNCIL
(6) MISS ADA WONG YING-KAY asked the following question (in Cantonese):—As at 31 March 1996, the Council recorded a cumulated surplus of $2,985 million. I would like to ask:
(a) How is this surplus allocated to the Council's various reserve funds? How much reserve funds are there? Are they all set up in 1973 since the Council became financially independent? What is the purpose of all these reserve funds? Who manages the reserve funds and general surplus? Are these funds and surplus separately invested?
(b) Please table the Council's annual surplus/deficit figures since 1973, and annual figures on transfer to/from the various reserve funds and General Revenue Balance.
(c) Has the reserve funds and/or the General Revenue Balance ever been used? For what purposes? Does the Council have any policy on when and how to use and rely on reserve funds and surplus? What are the procedures and delegated authority?
(d) What is the average annual rate of investment return of the various reserve funds and General Revenue Balance? How much did the Council earn from its investment in the years 1994/95 and 1995/96? Is the maximization/increase of investment return a policy of the Finance Select Committee? Does the Finance Select Committee have any clear investment guidelines to increase and maximize investment return? Is interest generated from investments reflected in the revenue for that year, or is it reinvested into the various reserve funds and/or the General Revenue Balance?
(e) According to the Urban Council Ordinance (Cap.101) s. 43(b), the Council shall invest all funds that are not immediately required in such other investments as may be approved by the Financial Secretary. The Housing Authority has already got approval to appoint fund managers to manage their various reserve funds. Has the Council ever considered similar arrangements to maximize investment return so that the various reserve funds and General Revenue Balance will grow in real value above the rate of inflation?
MR. CHIANG SAI-Cheong, Chairman of the Finance Select Committee, replied as follows (in Cantonese):—This five-part question concerns the cumulative surplus and reserves of the Urban Council.
The first part concerns the management of the surplus and reserves of the Urban Council.
Any surplus/deficit recorded by the Urban Council in a financial year is transferred to the Urban Council General Revenue Balance. The balance on this account which shows the cumulative surplus/deficit recorded by the Council, less any transfers to/from other reserve funds, since the Council became financially autonomous in 1973 is $2,648 million as at 31 March 1996.
Page 87 of 498
498
$4
HONG KONG URBAN COUNCIL
(6) MISS ADA WONG YING-KAY asked the following question (in Cantonese):—As at 31 March 1996, the Council recorded a cumulated surplus of $2,985 million. I would like to ask:
(a) How is this surplus allocated to the Council's various reserve funds? How much reserve funds are there? Are they all set up in 1973 since the Council became financially independent? What is the purpose of all these reserve funds? Who manages the reserve funds and general surplus? Are these funds and surplus separately invested?
(b) Please table the Council's annual surplus/deficit figures since 1973, and annual figures on transfer tolfrom the various reserve funds and General Revenue Balance.
(c) Has the reserve funds andlor the General Revenue Balance ever been used? For what purposes? Does the Council have any policy on when and how to use and rely on reserve funds and surplus? What are the procedures and delegated authority?
(d) What is the average annual rate of investment return of the various reserve funds and General Revenue Balance? How much did the Council earn from its investment in the years 1994/95 and 1995/96? Is the maximization/increase of investment return a policy of the Finance Select Committee? Does the Finance Select Committee have any clear investment guidelines to increase and maximize investment return? Is interest generated from investments reflected in the revenue for that year, or is it reinvested into the various reserve funds andlor the General
Revenue Balance?
(e) According to the Urban Council Ordinance (Cap.101) s. 43(b). the Council shall invest all funds that are not immediately required in such other investments as may be approved by the Financial Secretary. The Housing Authority has already got approval to appoint fund managers to manage their various reserve funds. Has the Council ever considered similar arrangements to maximize investment return so that the various reserve funds and General Revenue Balance will grow in real value above the rate of inflation?
MR. CHIANG SAI-Cheong, Chairman of the Finance Select Committee, replied as follows (in Cantonese):-This five-part question concerns the cumulative surplus and reserves of the Urban Council.
The first part concerns the management of the surplus and reserves of the
Urban Council.
Any surplus/deficit recorded by the Urban Council in a financial year is transferred to the Urban Council General Revenue Balance. The balance on this account which shows the cumulative surplus/deficit recorded by the Council, less any transfers to/from other reserve funds, since the Council became financially autonomous in 1973 is $2,648 million as at 31 March 1996.
Page 87 of 498
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