ENG-1987 — Page 88

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THE ECONOMY

Other revenue arises from taxes on the registration of motor vehicles, fines, forfeitures and penalties, royalties and concessions, yields from properties, investments and land transactions, reimbursements and contributions, the operation of government utilities, and from fees and charges for the provision of a wide range of goods and services.

Audit of Public Accounts

The audit of all of the government's accounts is carried out by the Director of Audit. He also audits the accounts of the Urban Council, the Regional Council and the Housing Authority, and of more than 50 statutory and non-statutory funds and other public bodies, as well as reviews the financial aspect of the operations of the government-subvented organisations in Hong Kong. These include value-for-money audits, which are essentially an examination into the economy, efficiency and effectiveness with which any party under audit has been discharging its functions. The director's appointment, tenure of office, duties and powers are set out in the Audit Ordinance, and in guidelines tabled in the Legislative Council by the Chairman of the Public Accounts Committee on November 19, 1986. The Audit Ordinance also provides that the director shall not be subject to the direction or control of any other person or authority.

The Director of Audit's report on the annual accounts of the government is submitted to the Governor as President of the Legislative Council for tabling. It is then referred to the Public Accounts Committee, comprising a chairman and six members, all of whom are members of the Legislative Council. In the exercise of its authority, the committee may call any public officer or other person concerned to give information and explanations and to produce any documents and records it may require. The committee holds its meetings in public except where the committee is of the opinion that the public interest requires confidentiality. The report by the Public Accounts Committee on the Director of Audit's report relating to the accounts of the government is also tabled in the Legislative Council. Both are copied to the Secretary of State. In response to a recommendation made by the committee itself, with effect from 1988, the annual cycle of the Public Accounts Committee will be split into two phases, involving the examination of reports by the Director of Audit and a subsequent response by the committee.