Financial Statements for the Year Ended 30 June 1998

Abstract

[evdate 1998-06-30] Financial Statements For the year ended 30 June 1998 Hong Kong University of Science and Technology

CONTENTS 1Treasurer's Report 5Auditors' Report 7Balance Sheet 8Income and Expenditure Statement 9Cash Flow Statement

Notes to the Financial Statements Significant Accounting Policies 14 Fixed Assets 15 Buildings 16 Construction-in-progress 16 Loans to Affiliated Companies 17 Investments 18 Current Assets 19 Current Liabilities 20 Long-term Liabilities 20 Building Fund 2 1 Capital Fund 21 General Funds 122 Specific Funds 24 Reserves and Provisions 25 UGC Triennium Equalization Account UGC Recurrent Grant 26 Fee Income 26 Miscellaneous Income 27 Specific Income and Expenditure

General Expenditure 28 Administration 28 Academic 30 Maintenance of Premises 30 General Education 31 Student Facilities and Amenities 31 Miscellaneous 32 Reconciliation of Funding Surplus to Net Cash Inflow from University Operations 33 Capital Commitments 33 Comparative Figures ii

THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 1998

TREASURER'S REPORT The University has entered into a period of consolidation. The financial results for the year 1997/98 reflected a slower and more solid growth in the University's activities. As at 30 June 1998, the total net assets stood at $4,234 million (1996197: $4,105 million). The year 1997/98 was the final year of the triennium 1995-l 998. The overall results for the triennium showed a balanced position.

General Income and Expenditure General income was $1,942 million (1996/97: $1,796 million), of which $1,529 million or 79% was provided by the Government through the University Grants Committee (UGC): a block grant of $1,234 million, reserved supplementary grants amounting to $269 million to cover additional costs arising from salary revisions in line with the annual salary adjustments approved for the Civil Service, and $26 million for the reimbursement of property rates and rents paid by the University. The remainder of general income included $288 million of tuition fees and others amounting to $125 million.

General expenditure, primarily funded by the UGC, amounted to $1,892 million (1996/97: $1,725 million).The increase was mainly due to salary revisions, inflation and a growth in the student number from 6,720 in 1996/97 to 6,855 in 1997/98. Out of the $1,892 million general expenditure, $142 million or 7.5% was for Administration, $1,124 million or 59.4% was for Academic Departments and Academic Support Centers, $297 million or 15.7% was for Maintenance of Premises, and others amounting to $329 million.

After transfers to reserves/provisions, the general expenditure over the general income for the year showed a deficit of $101 million. This deficit was off-set against surpluses brought forward from 1995- 1997, achieving a balanced position for the triennium 1995-1998.

Earmarked Grants The University received from the UGC a total of $160 million (1996/97: $109 million) of earmarked grants. The increase was primarily attributable to the University's continuous successes in bidding of research grants. Out of the $160 million, $111 million was

earmarked for research activities, $21 million was a block allocation for alterations, additions, repairs and improvements to the campus, and the remainder of $28 million was for other earmarked activities including language enhancement, teaching development and areas of excellence, etc..

Capital Grants A total of $75 million (1996/97: $130 million) in the form of capital grants was received from the UGC. These capital grants were for the acquisition of equipment and facilities for basic teaching and specialist uses, the construction of laboratories and facilities and the acquisition of general furniture and equipment. With the completion of most of the capital projects, there was a continued reduction in the levels of grant as well as related expenditure.

Donations, Designated Funds and Other Operating Funds Income from donations and designated funds, together with investment and interest income generated for the year, increased by $46 million to $98 million (1996/97: $52 million). The increase mainly came from donations for the construction of the HKUST Annex and the Environmental Geotechnical Research Facility. Out of the total income, 4 1% was for capital projects, 46% for research activities, 10% for scholarships, bursaries and student loan funds, and the remaining 3% for designated endowment.

A total of $103 million of other operating income was generated from self-financing activities and research contracts (1996/97: $88 million). As at 30 June 1998, the total fund balance of donations, designated funds and other operating funds stood at $329 million (1996/97: $288 million).

Building Projects A number of construction projects are in progress. The HKUST Annex will be a home for R&D and technology we transfer units. The Indoor Swimming Pool and Coastal Research Laboratory will improve amenity and research facilities, and the Environmental Geotechnical Research Facility will provide additional academic and research spaces. These projects are expected to be completed by 1999 or 2000 separately.

Bank Loans With the approval of the UGC, the University had obtained bank loan facilities to finance the construction of additional senior staff quarters and additional 1996/97 540, graduate residences together with a university center. As at 30 June 1998, the total balance of the bank loans was $466 million (1996/97: $540 million). During the year, the University paid principal and interest totalled $168 million for the loans. In respect of the senior staff quarters loan, payments were met by drawings from the block grant as approved by the UGC. For the graduate residence and university center loan, they were met by rents collected.

With the funding reduction coming into effect in the triennium 1998-2001, the University has to strategically review its resource allocation to make sure its core mission of excellence in teaching and research is not compromised. By refinancing the bank loan for the senior staff quarters over a longer repayment period, the University will be able to reduce the annual payment out of the block grant through a lower instalment repayment amount. On 30 June 1998, the University signed an agreement with Hang Seng Bank Limited, the original

loan provider, for refinancing the bank loan over a 8-year period. The University had taken the opportunity to restructure the loan with a lower interest margin, thereby, reducing the interest expense.

Reserves Over the current triennium, the University has gradually built up its reserves and provisions to $411 million (1996197: $268 million). The reserves will help maintain financial stability in the light of possible further reduction in UGC funding beyond triennium 1998-2001.

Outlook In preparing for the financial challenges in future years, the University will continue to improve the cost efficiency of its activities through business process reengineering and other management techniques. The University will take cost-containment measures and redeploy resources, but without any compromise on the quality of education. The University will strive to fulfil its missions toward quality teaching, research and community services.

SIGNED Dr. LAU Wah-sum, JP Treasurer of the University, 12 November 1998

AUDITORS' REPORT Deloitte Touche Tohmatsu Certified Public Accountants 26th Floor, Wing On Centre 111 Connaught Road Central Hong Kong To: The Council of the Hong Kong University of Science and Technology We have audited the financial statements on pages 7 to 33 which have been prepared in accordance with accounting principles generally accepted in Hong Kong. Respective Responsibilities of the Council and Auditors The Council are responsible for the preparation of financial statements which give a true and fair view. In preparing financial statements which give a true and fair view, it is fundamental that appropriate accounting policies are selected and applied Consistently .

we are engaged to form an independent opinion, based on our audit, on those statements and to report our opinion to you.

Basis of Opinion We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Society of Accountants. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Council in the preparation of the financial statements, and of whether the accounting policies are appropriate to the University's circumstances, consistently applied and adequately disclosed.

1998 11 12

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatements. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Opinion In our opinion the financial statements give a true and fair view of the state of affairs of The Hong Kong University of Science and Technology as at 30 June 1998 and of its excess of income over expenditure and cash flows for the year then ended.

SIGNED Deloitte Touche Tohmatsu Certified Public Accountants Hong Kong 12 November 1998

Balance Sheet As At 30 June 1998 Fixed Assets Loans to Affiliated Companies Investments Current Assets Less: Current Liabilities Net Current Assets 1998 BALANCE SHEET AS AT 30 JUNE 1998 Note 1998

1997

Long-term Liabilities 9TOTAL NET ASSETS Building Fund General Funds Specific Funds Reserves and Provisions UGC Triennium Equalization Account 4,234,371 4105,253 10 3,095,782 TOTAL FUNDS 4,234,371 4,105,253 Approved by the Council on 12 November 1998

SIGNED Dr LAU Wah-sum Treasurer of the University

SIGNED SIGNED Professor Chia-Wei WOO Philip S. P. WONG President Director of Finance The accompanying notes are an integral part of the financial statements. 7

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 1998 GENERAL INCOME UGC Recurrent Grant Fee Income Interest and Investment Income Rental Recovery from Staff Miscellaneous Income Note 16 17 18 SPECIFIC INCOME TOTAL INCOME GENERAL EXPENDITURE Administration Academic Maintenance of Premises General Education Student Facilities and Amenities Miscellaneous 20 21 22 23 24 25 19 SPECIFIC EXPENDITURE TOTAL EXPENDITURE EXCESS OF TOTAL INCOME OVER TOTAL EXPENDITURE Transferred to the UGC Holding Account Transferred to Reserves/Provisions Transferred to General Funds Transferred to Specific Funds (DEFICIT)/SURPLUS TRANSFERRED TO THE UGC TRIENNIUM EQUALIZATION ACCOUNT The accompanying notes are an integral part of the financial statements. 81,434,516 289,486 252,008 72,586 42,102 43,887 39,528 7,296 1,942,330

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 1998 1998 1997 Note S'OOO S'OOO 26 300,947 307,209 NET CASH INFLOW FROM UNIVERSITY OPERATIONS NET CAPITAL INFLOW & OUTFLOW) FROM DESIGNATED ENDOWMENTS RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest and Investment Income Interest Element of Finance Lease Payments NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE INVESTING ACTIVITIES Decrease/(Increase) in Bank Deposits Maturing after Three Months Payments to Acquire Fixed Assets Receipts from Sales of Other Fixed Assets Payments to Acquire Investments NET CASH OUTFLOW FROM INVESTING ACTIVITIES NET CASH INFLOW & OUTFLOW) BEFORE FINANCING

9CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 1998 1998 1997 Note %'ooo FINANCING Capital Element of Finance Lease Payments Draw Down on Bank Loans Repayment of Bank Loans NET CASH (OUTFLOW)/INFLOW FROM FINANCING INCREASE DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS BROUGHT FORWARD CASH AND CASH EQUIVALENTS CARRIED FORWARD ANALYSIS OF THE BALANCES OF CASH AND CASH EQUIVALENTS Other Bank and Cash Balances 10

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 1998 1. SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of Accounting The University, has adopted fund accounting under which funds are classified according to their nature or specified objectives to ensure observance, where appropriate, of guidelines and restrictions placed on the use of available resources. All financial transactions are accrued in separate fund accounts according to such classifications.

The University has separately constituted a HKUST Educational Trust for the promotion and development of education and learning through teaching and research by the University, and independent Deeds of Trust for the University's two superannuation schemes. Their accounts are prepared and audited separately and are not included in these financial statements.

The University has not consolidated in these financial statements the financial activities of its wholly owned subsidiary companies, HKUST R and D Corporation Limited and HKUST Properties Limited, as the transactions of HKUST R and D Corporation Limited are not material in the contest of the University, while HKUST Properties Limited is a dormant company.

1.2 Expenditure

Approved expenditure items include purchase orders placed with suppliers for goods or services not yet received at the balance sheet date.

1.3 Buildings and Construction-in-progress Construction-in-progress is first charged against the respective fund accounts, and then capitalised at cost against the Building Fund. Upon completion, the buildings are depreciated on a straight-line basis over their estimated useful lives at 2% per annum. The campus site located at Sai Kung of approximately 60 hectares was granted by the Government at a nominal rent for 58 years through 30 June 2047. The land grant, in the nature of an operating lease, is not recorded in the financial statements.

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1.6 1.8 1.4 Other Fixed Assets The costs of other fixed assets are first charged against the respective fund accounts in the year of expenditure and then capitalised against the Capital Fund on a payment basis. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives at the following rates :-

Motor vehicles Computing, audio/visual, maintenance, teaching and sports equipment 25% per annum Furniture and other equipment 20% per annum Other fixed assets include those conferred by the HKUST Educational Trust. Assets leased under finance leases are capitalised at the present value of the minimum payments at the inception of the lease and depreciated on the same basis as mentioned above or,

where shorter, over the terms of the finance leases.

1.5 Investments Listed and unlisted investments are stated at cost. Realised and accrued income and investment expenses are dealt with in the Income and Expenditure Statement.

1.6 Stocks Stocks held for resale in respect of self-financing operations are valued at the lower of cost and net realisable value. Cost is calculated using the average cost method. Net realisable value is calculated with reference to the actual or estimated selling price less the related cost of marketing, selling and distribution. Other stocks are written off against the related funds on acquisition.

1.7 1.8 Library Books and Periodicals Library books and periodicals are written off against the related funds on acquisition.

Donations, Donated Services and In-kind Contributions 25% per annum Donations are accounted for on an accrual basis. The value of donated services and in-kind contributions is not recorded in the financial statements except in cases where their monetary benefits are material and can be reasonably assessed.

1.9 &a 1.9 Taxation

The University is exempted from payment of tax by virtue of Section 88 of the Inland Revenue Ordinance.

1.10 Cash Equivalents

Cash equivalents are defined as short-term, highly liquid investments which are readily convertible into known amounts of cash and which were within three months of maturity when acquired, less advances from banks repayable within three months from the date of the advance.

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2. FIXED ASSETS Other Fixed Assets COST As at 30 June 1997 Additions Disposals/Written Off As at 30 June 1998 DEPRECIATION As at 30 June 1997 Disposals/Written Off As at 30 June 19% Buildings (Note 3) Construction- (Note 4) 3,954,578 9,084 03,963,662 370,014 79,273 04L19,287 0 4,517 857,707 269,459 1,580,970 Teaching and Furniture sports and Other Equipment Motor Vehicles NET BOOK VALUE As at 30 June 19% 3,514,375 50,293 317 181,652 42,966 39789,603 El 997%6 EI 30 El As at 30 June 1997 3,584,564 12,688 718 265,770 63,157 3,926,897 11

3. BUILDINGS

COST As at 30 June 1997 Additions As at 30 June 1998 DEPRECIATION As at 30 June 1997 As at 30 June 1998 NET BOOK VALUE

As at 30 June 1998

as at 30 June 1997 Senior Staff Quarters The Campus Project - Phases I and II was financed by :

The Hong Kong Jockey Club Donation

CONSTRUCTION-IN-PROGRESS JGF COST As at 30 June 1997 Additions 1998%68 30 El As at 30 June 1998 Resource

S'OOO 3,787 247 3,831 21,671 Research Indoor Sports Research Laboratory Facilities Facility 11,490 1,198 12,688 10,181 19,559 20,757 37,605 HKUST Annex 50,293 LOANS TO AFFILIATED COMPANIES 1998 1997 16

INVESTMENTS 1998 1997 Listed Investments with Investment Managers at Cost (Note) 123,623 166,318 unlisted Investments at Cost Joint Universities Computer Centre Limited 1 share of Varsity Resources Corporation Limited 50,000 shares of I Investment in Wholly-owned Subsidiaries at Cost The net profits of the subsidiaries not consolidated but attributable to the University were:

1998 $ '000 17 CURRENT ASSETS Accounts Receivable Amount Due from The HKUST Educational Trust Amount Due from HKUST Properties Limited Amount Due from HKUST R and D Corporation Limited Other Accounts Receivable Reserved Supplementary Grants for Salary revisions Shortfall in Rates Reimbursement

Over-provision of Outstanding Commitments Excess from Reserved Supplementary Grants for Salary Revisions Excess from Alteration. Additions and Improvements Projects Bank Deposits Maturing within Three Months Maturing after Three Months Other Bank and Cash Balances

TOTAL 1998

1997 18

CURRENT LIABILITIES 1998 1997

Accounts Payable and Accruals Backpayments in relation to Salary, Revisions Bank Loans (Due Within One Year)

Gratuities (Due Within One Year) Other Accounts Payable and Accruals 19

9. LONG-TERM LIABILITIES

Bank Loans (Note) Balance as at 1 July Repayment during the Year Amounts Repayable within One Year Transferred to Current Liabilities Balance as at 30 June 1998

20

CAPITAL FUND Balance as at 30 June 1997 29,645 Additions/Depreciation Written Off Additions 59,335 Depreciation Written Off 064,045) Balance as at 30 June 1998 224,935 Less: Accumulated Depreciation Balance as at 30 June I998 195,682 29,253 224,935 12.

GENERAL FUNDS 1997

General Donations 14,381

University Development Fund 83,738 Amount Transferred && m Income 1998 Departmental Discretionary Fund 21

13. SPECIFIC FUNDS -Earmarked Grants Alterations, Additions & Improvements Block Allocation Research Grants Language Enhancement Grant Teaching Development Grant Academic Exchanges with Institutions of Higher Education in China

Areas of Excellence Interface between Tertiary and School Sectors - Grants

Basic Teaching Equipment - Phase I Dangerous Goods Stores Fitting Out and Environmental Control of Engineering Laboratories Furniture and General Equipment Microfabrication Center Specialist Equipment and Facilities Others 1997

Amount Transferred In/Out S'OOO Income Expenditure 1998 4The unspent balances are to be carried forward to the next financial year and the shortfalls as at 30 June 1998 will be offset

Against finding to be released by the UGC to the University in the next financial year.

22

13 SPECIFIC FUNDS (Cont'd) Designated Donations and Endowment Recurrent Accounts Designated Funds Scholarships and Bursary Funds Student Loan Funds Designated Endowment Recurrent Accounts

Capital Projects Other Operating Funds Designated Endowment Capital Accounts 1997 Amount Transferred In/Out

Income Expenditure 1998

TOTAL

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14 RESERVES AND PROVISIONS Building-related Reserves

Non-building-related Reserves Contractual Passages Gratuities Student Residential Halls General

Furniture and Equipment Major Redecoration Exchange Equalization

Provisions for Research Projects 1997 54,705 Amount Transferred Amount from/(to) General Expended Specific Funds

0 50,199 1998

8TOTAL :The total amount of HKS263,499,000 transferred from general/specific funds included HK $119,897,000 from general expenditure

and HK $143,602,000 front excess of income over expenditure. 21

15. UGC TRIENNIUM EQUALIZATION ACCOUNT Balance as at 30 June 1997 1997/98+ Recurrent Account. 1997/98 (100,915i 1995-98 over-provision of Outstanding Commitments for the Triennium 1995-98 3,800

Balance as at 30 June 1998 025

Supplementary Grant for Minor Works Supplementary Grant for Additional Research Postgraduate Rates and Government Rent

Tuition Fees

Graduation Fees Application Fees 18. MISCELLANEOUS INCOME 1998 Liquidated Damages for the Senior Staff Quarters Construction Project

Others 1997 26

19. SPECIFIC INCOME AND EXPENDITURE INCOME 1998

1997 Earmarked Grants Capital Grants Donations and Designated Endowment Income Other Operating Income 159,995 i5,103 BE EXPENDITURE Expenditure met from Earmarked Grants

Expenditure met from Capital Grants Expenditure funded by Donations and Designated Endowment Income Other Operating Expenditure SURPLUS FOR THE YEAR

TRANSFERRED TO RESERVES/PROVISIONS

TRANSFERRED TO THE UGC HOLDING ACCOUNT TRANSFERRED TO GENERAL FUNDS TRANSFERRED TO SPECIFIC FUNDS 27

20. GENERAL EXPENDITURE - ADMINISTRATION

Salaries and Gratuities/Superannuation - Senior Staff Salaries and Gratuities/Superannuation - Support Staff Audit and Legal Fees

Financial Charges

Furniture and Equipment General Advertisements

General Office Expenses

Official Publications

Vehicle Running Expenses 21. GENERAL EXPENDITURE - ACADEMIC

Academic Departments Salaries and Gratuities/Superannuation - Senior Staff Salaries and Gratuities/Superannuation - Support Staff

Furniture and Equipment General office/Laboratory Expenses

Postgraduate Studentships Library Salaries and Gratuities/Superannuation - Senior Staff Salaries and Gratuities/Superannuation - Support Staff

Book Binding Furniture and Equipment

General Office Expenses

Library Books and Periodicals Library On-line Search Others 1998 1997

21. GENERAL EXPENDITURE - ACADEMIC (Cont'd)

Research Grants

Computer Facilities Academic Support Centers

Advanced Engineering Materials Facility Animal Care Facility Applied Technology Center Center for Coastal and Atmospheric Research Center of Laboratory Supplies China Light and Power Wind/Wave Tunnel Facility Computer Aided Design and Manufacturing Facility Deans' Offices Educational Technology Center Electrical and Mechanical Services Facility Geotechnical Centrifuge Facility Glassblowing Facility Industrial Training Center Language Center Liquid Helium Facility Materials Characterisation and Preparation Facility Microelectronics Fabrication Facility Office of Contract and Grant Administration Plant Growth Facility Research Center 1998 129

22. GENERAL EXPENDITURE - MAINTENANCE OF PREMISES Salaries and Gratuities/Superannuation - Senior Staff Salaries and Gratuities/Superannuation - Support Staff Insurance Premiums Cleaning Expenses Furniture and Equipment General Office Expenses

Minor Works Rates and Government Rent Repairs and Maintenance Security Expenses Staff Uniforms and Laundry Utility Charges

23. GENERAL EXPENDITURE - GENERAL EDUCATION Admission Expenses Advisory Committees Meetings/Accreditation a Europe Institute & a German Center

Center for the Arts

Consultancies Duty Visits and Staff Development Examinations Subscriptions to International Education Associations

Workshops and Seminars 1998 1997 30

24. GENERAL EXPENDITURE - STUDENT FACILITIES AND AMENITIES Grants to Student Bodies Physical Education Facilities Student Affairs Office Student Health 25. GENERAL EXPENDITURE - MISCELLANEOUS Congregation Expenses Court/Council Meetings Education Allowances Home Purchase Scheme Housing Benefits Medical and Dental Benefits Insurance Premiums Official Entertainment Passages Publicity Expenses Recruitment Expenses Removal Expenses and Hire of Vehicles Subsidies for Staff Buses

Miscellaneous 1998 231

26. RECONCILIATION OF FUNDING SURPLUS TO NET CASH INFLOW FROM UNIVERSITY OPERATIONS

FUNDING SURPLUS ADJUSTMENTS Acquisition of Fixed Assets

Disposal of Other Fixed Assets 1995/96 1995/96 Excess Income Transferred from Specific Income

Interest and Investment Income Amount Transferred to Building Fund TOTAL ADJUSTMENTS NET FUNDING SURPLUS

(INCREASE)DECREASE IN STOCKS DECREASE IN PREPAYMENTS AND DEPOSITS

(INCREASE) IN ACCOUNTS RECEIVABLE

(INCREASE) IN THE UGC HOLDING ACCOUNT

(DECREASE) IN ACCOUNTS PAYABLE AND ACCRUALS (DECREASE) IN DEFERRED GRATUITIES DECREASE) IN RESERVES AND PROVISIONS NET CASH INFLOW FROM UNIVERSITY OPERATIONS 1998

27 CAPITAL COMMITMENTS 1998

1997

Capital Works Contracted for but Not Provided in the Financial Statements Government Funds

Non-Government Funds 93,451 31,387

Capital Works Authorised but Not Contracted for

Non-Government Funds 28. COMPARATIVE FIGURES 0 5,343 93,451 36,730 Certain comparative figures have been reclassified to conform to the current year's presentation.

33 目錄 司庫報告 核數師報告書 資產負債表 收支報表 現金流動表 財務報表附註 主要會計政策 固定資產 樓宇 在建工程 聯屬公司所欠貸款 投資 流動資產 流動負債 長期負債 樓宇基金 其他固定資產基金 一般基金

特定基金 儲備及備付金 大學教育資助委員會撥款結算賬 大學教育資助委員會經常撥款 各項收費。 其他收入 特定收支 一般開支 行政 教學。 校舍保養。 一般教育 學生事務及福利設施 其他 資金盈餘與大學營運淨現金流入之對賬。 資本承擔。 比較數字。

香港科技大學 截至1998年6月30日止年度 財務報表

司庫報告 大學已進入鞏固期， 1997／98年度之財政結算 顯示大學的活動繼續穩固增長。於1998年6月 30日，總資產淨値為4，234，000，000元 〔1996／97年度為4，105，000，000元〕。 1997／98年度為1995-1998之三年撥款期的期 終年。總括本三年撥款期的整體財政結算，收 支達致平衡。 一般收支 本年度一般收入為1，942，000，000元〔1996l97 年度為1，796，000，000元〕，其中79 即 1，529，000，000元是由政府經大學教育資助委 員會〔教資會〕撥出，包括整筆撥款 1，234，060，000元，合共269，000，000元的薪酬 調整增補撥款以支付因跟隨公務員薪金調整 而產生的額外支出及26，000，000元以償付大 學所支付的物業差餉及地租。餘下的一般收入 包括288，000，000元學費及125，000，000元其 他收入。 主要由教資會撥款支付的一般開支為 1，892，000，000元〔1996／97年度為 1，725，000，000元〕。開支增長的主要原因包括 薪金調整、通貨膨脹及學生人數由1996／97年 度的6，720人增至1997／98年度的6，855人。 1，892，000，600元的一般開支包括：行政費用 142，000，000元〔7 5%)；教學及輔助部門開支 1，124，000，000元〔59 4%)；校舍保養費用 297，000，000元〔15 7%)及其他開支 329，000，000元。 在轉撥至儲備／備付金後，本年度的一般開支 較一般收入多101，000，000元。此虧絀與 1995-1997兩年度所累積的盈餘相抵銷，因 此， 1995- 1998之三年撥款期的整體財務結算 仍達致收支平衡。

指定撥款 大學獲教資會撥出共160，000，000元的指定撥 款〔1996／97年度為109，000，000元〕。增長的主 要原因是大學持續成功地競投得多項研究撥 款。160，000，00o元的指定撥款中 111，000，00o元用作研究活動， 21，000，000元 為一整筆撥款，用作校舍改建、加建、維修及 改善工程，其餘28，000，000元則用作其他指定 活動，包括語文培訓、教學發展及卓越領域等 等。 建設撥款 教資會共撥予大學75，000，000元的建設撥款 〔1996／97年度為130，000，000元〕。該撥款主要 用作購置基本教學用途及專用之設備及設 施，興建實驗室及設施，並購置一般傢具及設 備等等。隨著大部分建設項目相繼完成，有關 的撥款及開支亦持續減少。 捐款、指定基金及其他營運基金 捐款及指定基金的收入，加上投資及利息收 入，本年度之款額達98，000，000元，較去年增 加46，000，000元(1996／97年度為52，000，000 元〕。增幅主要來自興建科大新翼及環境／岩士 工程研究設施的捐款。本年度收入中，41 % 用 於資助建設項目，46 用作資助研究活動，10。 用作奬學金、助學金及學生貸款基金，其餘3 用作指定留本基金。 大學由自籌資金活動及研究合約所得的其他 營運收入為103，000，000元(1996／97年度為 88，000，00O元〕。 於1998年6月30 日，捐款、指定基金及其他營 運基金的總額達329，000，000元(1996／97年度 為288，000，000元〕。

建築項目 數項建築項目已在施工中。科大新翼將成為研 究與發展及各技術轉移單位的所在地。即將落 成的室內泳池及海洋海岸實驗室將改善大學 的康娛設施及研究場所，此外，環境／岩土工 程研究設施的成立亦可為大學提供更多的學 術及研究場地。以上項目預期分別於1999年或 2000年完工。 銀行貸款 經教資會批准，大學已取得銀行貸款，用作增 建高級教職員宿舍及研究生宿舍連大學中 心。於1998年6月30日，銀行貸款總結餘為 466，000，000元〔1996／97年度為540，000，000 元)。 年內，大學已為貸款償還了168，000，600元的 本金及利息，其中，高級教職員宿舍的貸款經 教資會批准，由整筆撥款中支付，而研究生宿 舍連大學中心的貸款則由所收取的租金支 付。 為應付1998- 2001之三年撥款期的資金縮減， 大學必須重新檢討資源分配的策略，以確保大 學的主旨一保持高質素的教學及研究不受影 響。通過再融資以延長高級教職員宿舍銀行貸 款的還款期，大學便可以每期較低的還款額減 少每年的還款。大學已於1998年6月30日與原 貸款銀行恆生銀行有限公司簽署一項協議，通 過貸款的再融資，將還款期延長至8年期。大 學亦通過此項安排，以較低的利息重組貸款， 減低利息的支出。

儲備 大學於本三年撥款期內逐步累積了 411，000，000元的儲備及備付金〔1996／97年度 為268，000，000元〕。預期教資會資金於1998 2001之三年撥款期後仍有機會進一步縮減，此 項儲備將為大學之財政狀況起穩定作用。 展望 為應付未來財政上之挑戰，大學將繼續通過工 作流程的檢討及其他管理技巧，提高各項活動 的成本效益。大學亦會在不影響教學素質的情 況下，實施各種成本控制及資源調配的措施， 並為大學保持高素質教學、研究及社會服務的 終旨而不斷努力。 已簽署 大學司庫 劉華森博士，太平紳士 1998年11月12日

核數師報告書 德勤．關黃陳方 會計師行 致：香港科技大學校董會 本核數師行已完成審核刊於第7頁至第 33頁的財務報表，該等財務報表乃按照香 港普遍採納之會計原則編製。 校董會及核數師的個別責任 貴校董會須負責編製眞實與公平的財務 報表。在編製該等財務報表時，貴校董 會必須貫徹採用合適的會計政策。 本行的責任是根據本行審核工作的結 果，對該等財務報表表達獨立的意見，並 向貴校董會作出報告。 意見的基礎 本行是按照香港會計師公會頒佈的核數 準則進行審核工作。審核範圍包括以抽查 方式查核與財務報表所載數額及披露事 項有關的憑證，亦包括評估貴校董會於 編製該等財務報表時所作的重大估計和 判斷，所釐定的會計政策是否適合大學的 具體情況，及有否貫徹應用並足夠地披露 該等會計政策。

本行在策劃和進行審核工作時，{????}H取得 一切本行認為必需的資料及解釋為目 標，使本行能獲得充份的憑證，就該等財 務報表是否存有重要錯誤陳述，作出合理 的確定。在表達意見時，本行亦已衡量該 等財務報表所載的資料在整體上是否足 夠。本行相信，本行的審核工作已為下列 意見建立了合理的基礎。 意見 本行認為上述的財務報表均眞實與公平 地反映香港科技大學於1998年6月30日 的財務狀況及截至該日止年度的收入高 於開支的盈餘和現金流動。 己簽署 德勤．關黃陳方會計師行 香港執業會計師 1998年11月12日

資產負債表 1998年6月30日 附註 固定資產 聯屬公司所欠貸款 投資 流動資產 減： 流動負債 流動資產淨値 長期負債 總資產淨値 樓宇基金 其他固定資產基金 一般基金 特定基金 儲備及備付金 大學教育資助委員會撥款結算賬 資金總額 校董會於1998年ll月12日核准此財務報表 己簽署 劉華森 大學司庫 己簽署 吳家瑋 校長 己簽署 黃世邦 財務處處長 附註為財務報表的一{????}驉C

收支報表 截至1998年6月30日止年度 附註 一般收入 大學教育資助委員會經常撥款 各項收費 利息及投資收入 自教職員收回之租金 其他收入 特定收入 收入總額 一般開支 行政 教學 校舍保養 一般教育 學生事務及福利設施 其他 特定開支 開支總額 收人總額高於開支總額 轉撥至大學教育資助委員會往來賬 轉撥至儲備／備付金 轉撥至一般基金 轉撥至特定基金 轉撥至大學教育資助委員會撥款結算賬之〔虧拙〕／盈餘 附註為財務報表的一部分。

現金流動表 截至1998年6月30日止年度 附註 大學營運淨現金流入 指定留本基金之資本淨流入／〔流出〕 投資回報及融資服務 利息及投資收入 融資租賃款項之利息 銀行貸款之利息支出 投資回報及融資服務掙現金流入 投資活動 於三個月後到期之銀行存款減少／〔增加〕 購買固定資產之款項 出售其他固定資產之收入 購買投資之款項 投資活動淨現金流出 融資前淨現金流入／〔流出〕

現金流動表〔續〕 截至1998年6月30日止年度 融資 融資租賃款項之資本 已動用銀行貸款 償還銀行貸款 融資淨現金〔流出〕／流入 現金及等同現金之增加/〔減少〕 承前現金及等同現金 結轉現金及等同現金 現金及等同現金之結存分析 於三個月內到期之銀行存款 其他銀行及現金結餘 附註為財務報表的一部分。

財務報表附註 1998年6月30日 主要會計政策 會計基準 大學資金按其性質或特定用途分類， 以確保遵守有關資源之使用指引及規 限。所有財務交易均按該等分類以應 計基準入個別之資金賑內。 大學設有旨在透過教學及研究以推動 並發展教育與學術之香港科大教育信 託基金，及兩個受託於獨立信託契約 之公積金計劃。其賬自己個別編製及 審核，並無列入本財務報表。 由於香港科大研究開發有限公司之賬 項相對於大學的整體財務狀況並無重 要性，而香港科大地產有限公司則為 不活動公司，故大學並無於財務報表 綜合處理兩{????}疎磢臯搕膝q之財務活 動。 開支 核准開支內包括已向供應商發出訂單 但於結算日仍未收取之貨品或服務。 樓宇及在建工程 在建工程首先於有關資金賬戶內開 銷，然後按成本値資本化入賬於樓宇 基金。當工程完成，樓宇成本按直線 法計算折舊，依照估計使用年限以每 年2 之速度撇銷。 大學座落於西貢約60公頃之土地，由 政府按名義租金批出，為期58年，至 2047年6月30日止。該土地批授屬經 營租賃性質，並無列入本財務報表。

其他固定資產 其他固定資產之成本，均於支銷年度 首先在有關資金賬戶內開銷，然後按 付款基準資本化入賬於其他固定資產 基金。其他固定資產按直線法計算折 舊，依照估計使用年限以下列之速度 撇銷： 車輛 每年25% 計算機、影音、保養、 教學及體育設備 每年25 傢具及其他設備 每年20% 其他固定資產包括由香港科大教育信 託基金所授予之資產。由融資租賃之 資產會以租賃時最低付款額之現値資 本化入賬，並以上述方式，或按融資 租賃期，兩者之中較短者計算折舊。 投資 上市及非上市投資按成本人賬。已資 現與應計收益及投資費用已被列入收 支報表內。 存貨 自籌資金業務持作轉售之存貨按成本 及可變現淨値兩者較低者入賬。成本 是以平均成本法計算。可變現淨値乃 參照實際或估計售價減去市場推廣， 銷售及分銷之有關成本計算，其他存 貨於購入時在有關基金內撇銷。 圖書館書籍及期刊 圖書館書籍及期刊於購入時在有關基 金內撇銷。 捐款、捐贈之服務及捐贈之實物 捐款按應計基準入賬。除非捐贈之貨 幣利益重大並可合理評估，否則捐贈 之服務及捐贈之實物並無列入財務報 表。

稅項 大學根據香港稅務條例第88條之規定 獲豁免繳付稅項。 等同現金 等同現金乃三個月內到期之短期投資 減去三個月內到期之銀行借貸，該等 短期投資可隨時變視為已知數額之現 金。

固定資產 其他固定資產 計算機、 影音、 保養、教學及 體育設備 在建工程 車輛 傢具及 其他設備 樓宇 總計 〔附註3〕 〔附註4〕 成本 於1997年6月30日 添置 出售／撇銷 於1998年6月30日 折舊 於 1997年6月30 日 本年度計算之折舊 出售/ 撇鎖 於1998年6月3O日 賬面淨値 於1998年6月30日 於1997年 6 月 30 日

樓宇 研究生宿舍及大學中心 校園 高級教職員宿舍 第I期及第II期 第IIA期 第IIB期 總計 (附註a) (附註b) (附註C) 成本 於1997年6月3O日 添置 於1998年6月30日 折舊 於1997 年6月3O日 本年度計算之折舊 於1998年6月30日 賬面淨直 於1998年6月30日 於1997年6月30日 附註 ： a. 校園建設的資金來源 ：

香港賽馬會之損款 政府資金 開支總額之成本値 減：累計折舊。 b 大學取得教資會的批准， 以銀行貨款資金增建高級教職員宿舍， 研究生宿舍及大學中心。

c 樓宇之賬面淨値由樓宇基金， 銀行貨款及應付賬款代表及支付。

在建工程 核磁共振／ 生物工程 資源中心 室內泳池／ 海洋海岸 實驗室 學生室內 運動設施 環境／ 岩土工程 研究設施 科大新翼 總計 成本 於 1997年6月30日 添置 於1998年6月30日 聯屬公司所欠貸款 高校匯智有限公司

投資 投資經理所作之上市投資成本直〔附註〕 非上市投資成本値 存於投資經理之債券及現金／銀行存款(附註)大學聯合電腦中心 l股面値500港元之股份 高校匯智有限公司 50，000股每股面値1港元之股份 於全資附屬公司之投資成本値 香港科大地產有限公司 2股每股面値1港元之股份 香港科大研究開發有限公司 2股每股面値1港元之股份 附註： 投資經理所作之上市及非上市投資於 1998 年 6 月30 日之市値為港幣 544，860，000 元 (1997：港幣 535，230，000 元)

大學應佔未綜合附屬公司之純利如下： 自收購以來 過往年度 列入大學之財務報表 並無列入大學之財務報表

流動資產 存貨 預付款項及按金 應收賬款 應收香港科大教育信託基金之款項 應收香港枓大地產有限公司之款項 應收香港科大研究開發有限公司之款項 教職員應收賬款 其他應收賬款 大學教育資助委員會往來賬 未收之薪酬調整增補撥款 未償還之差餉 過多備付金 薪酬調整增補撥款之盈餘 校舍的改建、加建及改善工程撥款之盈餘 銀行及現金結餘 銀行存款 於三個月內到期 於三個月後到期 其他銀行及現金結餘 總計

流動負債 應付賬款及應計費用 薪酬調整之補薪 銀行貸款〔一年內到期〕 退職金〔一年內到期〕 其他應付賬款及應計費用

長期負憤 銀行貸款〔附註〕 7月1日之結餘 於年內動用之貸款 於年內償還 於一年內到期之貸款轉撥至流動員債 6月30日之結餘 附註 ： 大學與恒生銀行有限公司分別於1994 年及 1995 年簽訂兩份興建第IIA 及第 IIB 期高級教職員宿舍貨款合約； 及與東亞銀行有限公

司於1995年簽訂一份興建研究生宿舍及大學中心貨款合約。於1998年6 月30日， 大學將兩項興建高級教職員宿舍貨款合併， 並與恒

生銀行有限公司安排再融資， 還款期八年。 新訂立的合約要求大學必須於恒生銀行存入等同所欠貨款額之銀行存款。

銀行貨款之最終清償日期 ： 恒生銀行有限公司 2006 年6 月30 日

東亞銀行有限公司 2007 年3月31 日 樓宇基金 1997年6月30 日之結餘 添置／撇銷折舊 添置 撇銷折舊 1998年6月30日之結餘

其他固定資產基金 1997年6月30日之結餘 添置／撇銷折舊 添置 撇銷折舊 1998年6月30 日之結餘 於 1998 年6 月30 日之其他固定資產基金結餘， 乃代表其他固定資產之賬面淨値， 其資金來源：

政府資金 非政府資金 累計成本値 滅 ： 累計折舊 1998 年 6 月30 日之結餘 附註 ：

非政府資金之結餘包括港幣6，797，000 元為香港科大教育信託基金所授予之其他固定資產之賬面淨値。

一般基金 收入 開支 一般捐款 大學發展基金 部門自由調度基金 總計

特定基金 收入 開支 指定撥款 校舍的改建、加建及改善工程之整筆撥款 研究撥款 語文培訓撥款 教學發展撥款 與中國高等教育院校之間的學術交流 卓越領域 中學和大學兩個階段的銜接 建設撥款 基本教學用途設備 - 第一期 基本教學用途設備 - 第二期 危險品貯存室 工程學實驗室的裝修工程及環境調控 傢具及一般設備 微電子製造中心 專用設備及設施 其他 附註 ： 未動用之結餘會結轉至下個財政年度， 而於1998 年6 月30 日之不足將於下個財政年度在大學教育資助委員會撥予大學之經費中對銷。

特定基金〔續〕 收入 開支 指定捐款及留本基金經常賬 指定基金 奬學及助學基金 學生貸款基金 指定留本基金經常賬 建設項目 其他營運基金 指定留本基金資本賬 總計

儲備及備付金 轉撥自／〔至〕 一般／特定 基金之款額 已動用款額 與樓宇有關之儲備 與摟宇無關之儲備 與教職員有關之儲備 合約訂明之旅費 退職金 代假期金 學生宿舍 一般 傢具及設備 大型重新裝修 兌換平衡賬 研究項目備付金 總計 附註： 轉撥自一般/特定基金之港幣 263，499，000 元款額包括港幣 119，897，000 元轉撥自一般開支， 及港幣 143，602，000 元轉撥自收入高於開支的餘額。

大學教育資助委員會撥款結算賬 1997年6月30日之結餘 1997／98年度之經常賬 1995，98三年度之過多備付金 1998年6月3O日之結餘 根據整筆撥款安排，大學教育資助委員會撥出之資助加上其他一般收入与大學動用/轉撥之實際金額之差額

，會列入大學教育資助委員會撥款結算賬。本結算賬於三年度完結時之盈餘，會轉撥至大學 教育資助委員會往來賬,並退還予大學教育資助委員會。

大學教育資助委員會經常撥款 整筆撥款 大學教育資助委員會經常撥款 小型工程之增補撥款 研究生之增補撥款 薪酬調整增補撥款 差餉及地租 各項收費 學費 畢業費 入學申請收費 其他收入 高級教職員宿舍工程延誤之賠償 其他

特定收支 收入 指定撥款 建設撥款 捐款及指定留本基金收入 其他營運收入 開支 自指定撥款撥出之開支 自建設撥款撥出之開支 自捐款及指定留本基金收入撥出之開支 其他營運開支 本年度盈餘 轉撥至儲備／備付金 轉撥至大學教育資助委員會往來賬 轉撥至一般基金 轉撥至特定基金

一般開支，行政 薪金及退職金／公積金高級教職員 薪金及退職金／公積金，其他職員 核數及法律費用 財務費用 傢具及設備 一般廣告 一般辦公室費用 校方刊物 車輛開支 一般開支教學 教學部門 薪金及退職金／公積金 高級教職員 薪金及退職金／公積金 其他職員 傢具及設備 一般來公室，／實驗室費用 研究生助學金 圖書館 薪金及退職金／公積金高級教職員 薪金及退職金／公積金其他職員 書籍釘裝 傢具及設備 一般辦公室費用 圖書館書籍及期刊 圖書館電子網絡搜索 其他

一般開支，教學〔續〕 研究撥款 計算機設施 教學輔助中心 先進工程材料實驗所 動物養殖實驗所 應用技術中心 海岸與大氣研究中心 實驗用品供應部 中電風洞實驗所 電腦輔助工程實驗所 院長辦公室 教學技術中心 機電服務組 岩土工程離心機實驗所 玻璃吹製服務組 工業培訓中心 語言中心 氦氣液化服務組 材料測製實驗所 微電子製造實驗所 研究經費統籌處 植物培育實驗所 研究中心 技術轉移中心 副校長辦公室〔學術〕 副校長辦公室〔研究及發展〕

一般開支校舍保養 薪金及退職金／公積金，高級教職員 薪金及退職金／公積金 其他職員 保險費 清潔費用 傢具及設備 一般辦公室費用 小型工程 差餉及地租 維修及保養 保安支出 職員制服及洗熨 水電煤費用 一」般開支 一般教育 收生費用 諮詢委員會會議／評審 東亞研究型大學協會及歐洲研究所及德國中心 藝術中心 顧問 職務採訪及教職員培訓 考試費用 加入國際教育聯會之費用 工作坊及研討會

一般開支學生事務及福利設施 給予學生組織之撥款 體育設施 學生事務處 學生保健 一般開支 其他 畢業典禮費用 顧問委員會／校童會會議 教育津貼 自置居所計劃 房屋福利 醫療及牙科福利 保險費 交際費 旅費 宣傳費用 招聘費用 搬遷及租用車輛費用 校巴津貼 雜項

資金盈餘與大學營運淨現金流入之對賑 資金盈餘 調整 購買固定資產 出售其他固定資產 1995／96年度超額收入轉撥自特定收入 利息及投資收入 轉撥至樓宇基金之款項 調整總額 資金盈餘淨澦 存貨之〔增加)減少 預付款項及按金之減少 應收賬款之〔增加)大學教育資助委員會往來賬之〔增加)應付賬款及應計費用之〔減少〕 遞延退職金之〔減少〕 儲備及備付金之〔減少〕 大學營運淨現金流入

資本承擔 已簽約但未於財務報表作出準備之建設工程 政府資金 非政府資金 已獲授權但尚未簽約之建設工程 非政府資金 比較數字 若干比較數字已重新分類，以配合本年度之呈報方式。