Financial Statements for the Year Ended 30 June 2004

Abstract

[evdate 2004-06-30] The Hong Kong University of Science and Technology Financial Statements For the Year Ended 30 June 2004

CONTENTS Treasurer’s Report Auditors’ Report Consolidated Income and Expenditure Statement University Income and Expenditure Statement Consolidated Balance Sheet University Balance sheet Consolidated Statement of Changes in Fund Balances University Statement of Changes in Fund Balances Consolidated Cash Flow Statement Notes to the Financial Statements

THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 TREASURER'S REPORT Accounting Practices In order that the local tertiary institutions' accounting practices could accord more closely with international standards and modern accounting requirements, UGC- funded institutions have recommended jointly, and the University Council has subsequently approved, the adoption of the Hong Kong Generally Accepted Accounting Principles (GAAP) for the preparation of financial statements from 2003/04 onwards. In late 2003, the UGC-funded institutions also revised the Statement of Recommended Accounting Practice (SORP) so that financial statements could be presented on a comparable and consistent basis across all institutions. Following SORP, the 2003/04 financial statements have been presented under new headings and subheadings in a total-income and total- expenditure approach encompassing all UGC-funded and non-UGC-funded activities. Furthermore, for the first time the accounts of the University's subsidiaries and an associate have been consolidated into the financial statements. In accordance with a new corporate governance disclosure guideline, a new section on 'Remuneration of Higher Paid Staff' has also been added. For ease of comparison, the 2002/03 financial statements have been restated, also in compliance with the Hong Kong GAAP. Operating Result for the Year The consolidated operating result for the year was a record level surplus of $430.5 million ($13.3 million in 2002/03). This unusually high surplus was primarily due to donations and matching grant raised under the UGC Matching Grant Scheme, as well as investment income realised when the University repositioned its investment portfolios under a new investment strategy as approved by Council.

Consolidated Income Consolidated income for the year was $2,775.6 million ($2,466.2 million in 2002/03): $1,896.8 million (68.3%) from government subventions, $431.4 million (15.5%) from tuition and program fees, $120.9 million (4.4%) from interest and investment income, $149.5 from auxiliary services, others being $43.1 million ( 1.6%). In 2003/04, the UGC introduced a Matching Grant Scheme, under which qualified donations raised by institutions were matched by Government on a dollar- for-dollar basis. The University successfully raised a total of $140 million in donations (including $58 million of endowments) under the Scheme, some $130 million of which was matched by UGC grants.

In addition to the Matching Grant Scheme, an improvement in investment income also contributed to the significant growth in consolidated income ($120.9 million in 2003/04, $24.3 million in 2002/03). Consolidated Expenditure Consolidated expenditure for the year was $2,345.1 million ($2,453 million in 2002/03) with $1,743.4 million (74.3%) for Learning and Research activities, $123.5 million (5.3%) for Management and general. $356 million (15.2%) for Premises and related expenses, and $122.2 million (5.2%) for other items. The lower expenditure in 2003/04 was mainly due to, on the one hand, salary cuts of some $30 million during 2003/04 in line with those for the civil service as well as an extraordinary high expenditure in 2002/03, on the other hand, for a special one-off top- up of $66 million to convert the University’s Staff Superannuation Scheme from a defined-benefit to a defined-contribution scheme. UGC-funded Activities UGC grants accounted for $1,838.7 million or 97% of government subventions, including recurrent block grant and supplementary grants of $1,349.7 million; earmarked grants for housing, research, capital works and rates and government rent refunds of $358.4 million; and matching grant of $1 30.6 million. 2 The recurrent block grant together with fees and other income totalled $1,746 million for the year, and related expenditure amounted to $1,603 million. The surplus of $143 million was transferred to the General and Development Reserve. As at 30 June 2004, the reserve balance stood at $814 million. Capital Projects Construction of The Hong Kong Jockey Club Enterprise Center will shortly be underway. The Government earlier agreed to provide $105.6 million to meet half the estimated construction cost of the new building, subject to the University being able to find matching funds from private sources. This has proved possible, as a result of a generous donation of $100 million from The Hong Kong Jockey Club Charities Trust. Dm Outlook The UGC articulated its view on the future direction of the higher education sector in its publication 'To Make a Difference, To Move with the Times' in early 2004. The UGC sees the local higher education sector serving as the education hub of the region, internationally competitive, role-differentiated and yet deeply collaborative and interlocked, driving forward the local economic and social development, in the context of an unique relationship with Mainland China and the region. Along these directives, the University will continue to build on its strength and strategically chart its come locally, nationally and regionally to contribute to the economic and social development of Hong Kong and the region. SIGNED Tim T.L. LUI Treasurer of the University 12 November 2004 3 AUDITORS' REPORT To : The Council of The Hong Kong University of Science and Technology

We have audited the financial statements on pages 6 to 51 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. It is our responsibility to form an independent opinion, based on our audit, on those financial statements and to report our opinion solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Basis of Opinion We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Institute of Certified Public 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 circumstances of the University and the Consolidated Entity, consistently applied and adequately disclosed. 4 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 and the Consolidated Entity as at 30 June 2004 and of the results and cash flows of the Consolidated Entity for the year then ended. SIGNED Deloitte Touche Tohmatsu Certified Public Accountants HONG KONG 12 November 2004 5 CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2004 2004 Notes Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Other Operating Income Auxiliary Services Share of Result of an Associate Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Student and General Education Services Other Activities Management and General Premises and Related Expenses Surplus for the year before transfers 2003

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2004 2004 2003 Notes Restricted Funds Other Funds Transfers to / (from)

UNIVERSITY INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2004 Income Interest and Investment Income Government Subventions Tuition, Programmes and Other Fees Donations and Benefactions Auxiliary Services Other Operating Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Student and General Education Services Management and General Premises and Related Expenses Other Activities Surplus for the year before transfers Notes 2004 Restated

UNIVERSITY INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2004 Notes Restated Restricted Funds Other Funds Transfers to / (from) 9

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2004 Notes Non-Current Assets Property and Equipment Investments in Securities Interest in an Associate Current Assets Stock Accounts Receivable and Prepayments Cash and Cash Equivalents Current Liabilities Accounts Payable and Accruals Provision of Staff Benefits Bank Loan Deferred Income Net Current Assets Total Assets Less Current Liabilities 9 10

CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2004 2004 Notes Non-Current Liabilities Provision of Staff Benefits Bank Loan NET ASSETS Other Funds Deferred Capital Funds Restricted Funds TOTAL FUNDS SIGNED Tim T.L. LUI Treasurer of the University SIGNED Paul C.W. CHU President SIGNED Philip S.P. WONG Director of Finance

UNIVERSITY BALANCE SHEET AS AT 30 JUNE 2004 Non-Current Assets Property and Equipment Investments in Securities Investment in an Associate Investments in Subsidiaries Current Assets Stock Accounts Receivable and Prepayments Cash and Cash Equivalents Current Liabilities Accounts Payable and Accruals Provision of Staff Benefits Bank Loan Deferred Income Net Current Assets Total Assets Less Current Liabilities Notes Restated

UNIVERSITY BALANCE SHEET (Cont'd) AS AT 30 JUNE 2004 Non-Current Liabilities Provision of Staff Benefits Bank Loan NET ASSETS Deferred Capital Funds Restricted Funds Other Funds TOTAL FUNDS Notes 2004 2003 13

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES Deferred Capital Funds Restricted Funds Other Funds Total Funds Balance as at 30 June 2002 Surplus / (Deficit) for the year Endowment Funds received Unrealised gain on Other Securities Recognition of unrealised loss on disposal of Other Securities transferred to consolidated income and expenditure statement Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subvent ions and donations Share of statutory reserves of an Associate Inter-fund transfer Balance as at 30 June 2003 Surplus for the year Endowment Funds received Unrealised loss on Other Securities Rcognition of unrealised gain on disposal of Other Securities transferred to consolidated income and expenditure statement Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations Inter-fund transfer Balance as at 30 June 2004 Share of statutory reserves of an Associate University Statement of changes in fund balances Balance as at 30 June 2002, as previously reported Changes in accounting policies : Expenditure recognition (Note 1.2a) Income recognition (Note 1.2b) Property and equipment (Note 1.2~) Investments in Securities (Note 1.2d) Reclassification Balance as at 30 June 2002, restated Unrealised gain on Other Securities Surplus / (Deficit) for the year Endowment Funds received Recognition of unrealised loss on disposal of Other Securities transferred to income and expenditure statement Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations Inter-fund transfer 2003~6H3OR2t%~&%f Balance as at 30 June 2003. restated

UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES Building Funds Capital Funds General Funds Specific Funds Reserves and Provisions Funds UGC Equalisation Funds Deferred Capital Funds Restricted Funds Other Funds Total Funds Account Balance as at 30 June 2003, restated Surplus for the year Endowment Funds received Unrealised loss on Other Securities UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) Recognition ot unrealised gain on disposal of Other Securities transferred to income and expenditure statement Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations Inter-fund transfer Balance as at 30 June 2004 16 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2004 2004 2003 Operating Activities Net Surplus for the year Depreciation Interest and Investment Income Loss on disposal of Property and Equipment Interest expense on Bank Loan Interest and Investment Income Increase / (Decrease) in Accounts Payable and Accruals Increase / (Decrease) in Deferred Income Increase in Provision of Staff Benefits Amortisation of premium / (discount) on Held-to-maturity Securities Decrease / (Increase) in Stocks Decrease in Accounts Receivable and Prepayments Share of result of an Associate Transfer from Deferred Capital Fund Net Cash from Operating Activities

CONSOLIDATED CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2004 2004 2003 Investing Activities Payment for purchase of Property and Equipment Decrease / (Increase) in Bank Deposits maturing after three months Purchase of Held-to-maturity Securities (Increase) / Decrease in Investments in Other Securities Proceeds from disposal of Property and Equipment Interest and investment income received Net Cash Used in Investing Activities Financing Activities Endowments received Subventions and donations received for purchase of Property and Equipment Bank Loan Interest Paid Repayment of Bank Loan Net Cash (Used in) / from Financing Activities Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Year Cash and Cash Equivalents at the End of the Year

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2004 GENERAL The principal activities of the University are offering programmes leading to the award of first degrees and postgraduate qualifications particularly in science, technology, engineering, management and business studies; and collarborating closely with government, business, industry as well as other higher education institutions to assist the economic and social development of Hong Kong. The principal activities and other particulars of the subsidiaries are set out in note 12 on the financial statements. CHANGES IN ACCOUNTING POLICIES In previous years, the University prepared the financial statements in accordance with the accounting policies generally adopted by higher educational institutions in Hong Kong. Subsequent to the adoption of the revised Statement of Recommended Accounting Practice (SOW) which was effective from the financial year beginning 1 July 2003, the University, in the current year, has adopted the Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants (HKICPA). The term of HKFRS is inclusive of Statements of Standard Accounting Practice (SSAP) and Interpretations approved by the HKICPA. The effects of the changes in accounting policies include: (a) Expenditure recognition (b) Income recognition (c) Property and equipment (d) Investments in securities (e) Deferred charges Expenditure recognition In previous years, expenditure included items with purchase order placed, but goods or services not yet received at the reporting dates. The new accounting policy requires the recognition of expenditure items upon receipt of the related goods or services. This new accounting policy has been applied retrospectively. 19 As a result of this change in policy, closing fund balances at 1 July 2002 have been increased by $10 1.208 million and accounts payable at that date have been reduced by the same amount, representing the cumulative effect of the change in policy on the results for periods prior to 1 July 2002; and surplus for the year ended 30 June 2003 has been increased by $12.119 million. 1.2b Income recognition In previous years, government grants and designated donations were recognised when received and receivable. The new accounting policy as set out in note 2.5 requires recognition of government grants and donations as income over the periods necessary to match them with the related expenditure. The new accounting policy has been applied retrospectively. As a result of this change in policy, closing fund balances at 1 July 2002 have been decreased by $259.289 million, accounts receivable at that date have been increased by $30.4 17 million and deferred income of $289.706 million at 1 July 2002 has been recognised as well, representing the cumulative effect of the change in policy on the results for periods prior to 1 July 2002; and surplus for the year ended 30 June 2003 has been decreased by $24.977 million. 1.2~ Property and equipment In previous years, when a purchase order was issued for the acquisition of property and equipment, the relevant cost was recognised as an expense in the income and expenditure statement. When the asset was subsequently paid for, it was re-instated as property and equipment with a corresponding credit being made to the Building / Capital Funds. Depreciaton of property and equipment were made when the assets were installed and were charged against the Building / Capital Funds. The new accounting policies require recognition of property and equipment not on the issue of purchase orders nor payment for the asset but upon the delivery and installation of the related items. Depreciaton of property and equipment is charged to the income and expenditure statement as set out in note 2.6 instead of to the Building / Capital Funds. The new accounting policies have been applied retrospectively. 20 As a result of the change, the closing fund balances and the value of property and equipment at 1 July 2002 have been increased by $0.356 million, representing the cost of property and equipment delivered and installed but not yet paid for at that date; and surplus for the year ended 30 June 2003 has been increased by $21.205 million. In previous yeats, Investments in securities 3i��%BBHtk-leJHE$ffiamizfiH In previous years, investments in securities were measured at cost less any impairment losses. The new accounting policy as set out in note 2.7 requires the valuation of held-to-maturity securities at amortised costs less any impairment loss, and trading and other securities at fair value. The new accounting treatment has been applied retrospectively. As a result of this change in policy, the closing fund balances and the value of investment securities held at 1 July 2002 have been decreased by $18.008 million, representing the cumulative effect of the change in policy on the results for the periods prior to 1 July 2002. Deferred charges In December 2003, the University restructured the Staff Superannuation Scheme and incurred a one-off top-up payment of $65.897 million. $40.897 million of which was recognised as deferred charges in the balance sheet as at 30 June 2003. Under the new accounting policy, the deferred charges should be recognised as expenditure of the University for the year ended 30 June 2003. As a result of this change in accounting policy, the surplus for the year ended 30 June 2003 has been decreased by $40.897 million. 2.SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared under the historical cost convention and in accordance with accounting principles generally accepted in Hong Kong. The principal accounting policies adopted are as follows: 2.1 Basis of Consolidation The consolidated financial statements incorporate the financial statements of the University and its subsidiaries made up to 30 June each year.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income and expenditure statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. 2.2 Investments in Subsidiaries Investments in subsidiaries are included in the University’s balance sheet at cost less any identified impairment loss. Interest in an Associate The consolidated income and expenditure statement includes the University’s share of the post- acquisition results of its associate for the year. In the consolidated balance sheet, interest in an associate is stated at the University’s share of the net assets of the associate, less any identified impairment loss. The result of the associate is accounted for by the University on the basis of dividends received and I receivable during the year. In the University’s balance sheet, investment in an associate is stated at cost. as reduced by any identified impairment loss. 2.4 Negative goodwill Negative goodwill represents the excess of the University’s interest in the fair value of the identifiable assets and liabilities of an associate at mi% 0 the date of acquisition over the cost of acquisition and is deducted from the carrying value of that associate 2.5 Income Government subventions and designated donations are recognised as income over the periods necessary to match them with the related expenditure. Any Recurrent Block Grant in excess of related expenditure is recognised as income and transferred to the General and Development Reserve Fund in accordance with the prevailing University Grant Committee’s guidelines.

Subventions and donations for depreciable property and equipment are recognised as Deferred Capital Funds and are amortised over the estimated useful lives of the related assets in accordance with the policy as stated in note 2.6. 22 General donations are recognised as income when the amounts have been received or are receivable from the donors. Tuition fees and rental income are recognised when services are provided. Interest income from bank deposits is accrued on a time basis, by reference to the principal outstanding and at the interest rate applicable. Endowments are credited to restricted funds in the year in which they are received. Income generated from endowments are recognised in the income and expenditure statement. 2.6 Property and Equipment Property and equipment, other than construction in progress, are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided to write off the cost of property and equipment, other than construction in progress, over their estimated useful lives and after taking into account their estimated residual value, using the straight-line method, at the following rates per annum: Building 2% per annum IBEP Fixtures and equipment 20% - 25% per annum

Construction in progress is not depreciated until the asset is put into use.

The gain or loss arising from disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income and expenditure statement.

Expenses on property and equipment funded by government subventions and specific donations are capitalised and credited to Deferred Capital Funds. Each year, an amount equal to the depreciation charges for the respective property and equipment is transferred from Deferred Capital Funds and credited to the income and expenditure statement. 2.7 Investments in Securities Investments in securities are recognised on a trade- date basis and are initially measured at cost. 23 At subsequent reporting dates, held-to-maturity debt securities are measured at amortised cost, less any impairment loss recognised to reflect irrecoverable amounts. The annual amortisation of any discount or premium on the acquisition of a held-to-maturity security is aggregated with other investment income receivable over the term of the instrument so that the revenue recognised in each period represents a constant yield on the investment. Investments other than held-to-maturity debt securities are classified as either trading securities or other securities, and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, unrealised gains and losses are included in net surplus or deficit for the period. For other securities, unrealised gains and losses are dealt with in fund balances, until the securities are disposed of or are determined to be impaired, at which time the cumulative gains or losses previously recognised in fund balances are included in net surplus or deficit for the period. 2.8 Impairment At each balance sheet date, the University reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. 2.9 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 weighted average method. 2.10 Retirement benefits costs Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. 24 GOVERNMENT SUBVENTIONS Restated 2004 2003 Consolidated and University Subventions from University Grants Committee (UGC) Supplementary Grants / Adjustments for Salary Cuts Research Housing Benefits Others Recurrent Block Grant Earmarked Grants Rates and Government Rent Refunds Capital Grants and Alterations. Additions & Improvements Block Allocation Matching Grants Grants from Government Agencies 25 TUITION, PROGRAMMES AND OTHER FEES 2004 2003 Consolidated UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes Restated 2004 2003 University 26 5. DONATIONS AND BENEFACTIONS Restated 2004 2003 Consolidated and University Capital Projects Scholarships and Bursaries Learning and Research Activities Note : During the year, The Hong Kong Jockey Club Charities Trust provided donations of HK$7,229,957 (2003: HK$8,008,359). 27 6. AUXILIARY SERVICES 2004 2003

Consolidated Residence Halls Catering Services Souvenir Shop Rental Income Rental Contribution from Staff Others Residence Halls Catering Services Souvenir Shop Rental Income Rental Contribution from Staff Others Restated 2003 University

OTHER OPERATING INCOME Contract Research Others Contract Research Others 2004 2003 Be Consolidated Restated 2004 2003 University

EXPENDITURE Learning and Research Instruction and Research Library Instruction and Research Central Computing Facilities Other Academic Services Subtotal Institutional Support Premises and Related Expenses Subtotal Total Expenditure for Year 2004 Total Expenditure for Year 2003 Management and General Student and General Education Services Other Activities 2004 2003 Benefits Expenses Depreciation Total Total Consolidated Salaries and Benefits Operating Expenses Depreciation

EXPENDITURE (Cont'd) Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Subtotal Institutional Support Management and General Premises and Related Expenses Other Activities Subtotal Total Expenditure for Year 2004 Total Expenditure for Year 2003, restated Student and General Education Services 2004 2003 Salaries and Benefits Operating Expenses Depreciation Total University Restated 598,969 8.1 ANALYSIS OF OPERATING EXPENSES 2004 2003 Consolidated Duty Visits and Staff Development Equipment Postgraduate Studentships Learning and Research General Office / Teaching and Research Expenses Library Books and Periodicals Legal Fee Management and General Auditors' Remuneration Financial Charges General Insurance General Office Expenses / Equipment

8.1 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2004 2003 Consolidated General Office Expenses / Equipment Property Insurance Rates and Government Rent Premises and Related Expenses Repair and Maintenance I Minor Works Utilities, Cleaning, and Security Services Expenses Student and General Education Services General Office Expenses / Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Other Activities 8.1 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2004 2003 University Restated Learning and Research Duty Visits and Staff Development Library Books and Periodicals Equipment General Office / Teaching and Research Expenses Postgraduate Studentships Management and General Auditors' Remuneration Financial Charges General Insurance Legal Fee General Office Expenses / Equipment 34 8.1 ANALYSIS OF OPERATING EXPENSES (Cont'd) Restated 2004 2003 University Premises and Related Expenses General Office Expenses / Equipment Property Insurance Rates and Government Rent Repair and Maintenance / Minor Works Utilities, Cleaning, and Security Services Expenses General Office Expenses / Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Student and General Education Services Other Activities REMUNERATION OF HIGHER PAID STAFF The remunerations of higher paid staff' were within the following bands 35 Number of employees Consolidated and University

9. PROPERTY AND EQUIPMENT Buildings Construction in progress Fixtures and equipment Total Consolidated Balance as at 1 July 2003 Additions Transfers Disposals / Written Off 2004 Balance as at 30 June 2004 DEPRECIATION Balance as at 1 July 2003 Provided for the year Disposals / Written Off

Balance as at 30 June 2004 NET BOOK VALUE Balance as at 30 June 2004 Balance as at 30 June 2003

9. PROPERTY AND EQUIPMENT (Cont'd) Buildings Construction in progress Fixtures and equipment Total University COST Balance as at 1 July 2003, restated Additions Transfers Disposals / Written Off Balance as at 30 June 2004 DEPRECIATION Balance as at 1 July 2003, restated Provided for the year Disposals / Written Off Balance as at 30 June 2004 NET BOOK VALUE Balance as at 30 June 2004 Balance as at 30 June 2003 restated

The University campus located in Sai Kung of approximately 60 hectares was granted by the Government at a nominal rent for 58 years through 30 June 2047. 37 10. INVESTMENTS IN SECURITIES 2004 2003 Consolidated Other Securities Held-to-maturity Securities at amortised cost Unlisted, at fair value Listed, at market value Hong Kong Overseas Held-to-maturity Securities at amortised cost Other Securities Unlisted, at fair value Listed, at market value Hong Kong Overseas 2004 ISM Restated 2003 University 38 11. INTEREST IN AN ASSOCIATE 2004 2003

Consolidated Share of net assets Negative goodwill of an Associate (Note) Note : The negative goodwill arose on the acquisition of the Associate in year 2000. The amount continues to be held in reserves and will be credited to income at the time of disposal of the Associate. Form of Business Structure Place of Incorporation/ Principal Place of Operation Proportion of Nominal Value of / Issued Capital Directly Held by the University Principal Activity Unlisted shares, at cost PKU-HKUST Shenzhen-Hong Kong Institution Incorporated People's Republic of China To foster the development of high technologies in Shenzhen and to cultivate high-quality human resources 39 12. INVESTMENTS IN SUBSIDIARIES 2004 2003 University Unlisted shares, at cost Subsidiaries HKUST College of Lifelong Learning Limited HKUST Properties Limited Hong Kong University of Science and Technology R and D Corporation Limited Biotechnology Research Corporation Limited Place of Incorporation Hong Kong Hong Kong Hong Kong Hong Kong 10,000 Proportion of Nominal Value of Issued Capital Held by the University Direct Indirect Principal Activity Conducting educational courses and programs Dormant To engage in developing scientific and technical innovations produced by university research projects into commercial ventures Provision of means for the sustainable funding of biotechnology research and development, and commercialisation of biotechnology results in the University 40 13. ACCOUNTS RECEIVABLE AND PREPAYMENTS 2004 2003 Consolidated Prepayments and Deposits Accounts Receivable Amount due from UGC Prepayments and Deposits Accounts Receivable Amount due from UGC

CASH AND CASH EQUIVALENTS 2004 2003 Consolidated Bank Deposits Maturing after three months Maturing within three months Other Bank and Cash Balances (Note) University Bank Deposits Maturing within three months Maturing after three months Other Bank and Cash Balances (Note) Other bank and cash balances included cheques issued but not yet presented for payment. There was no physical overdraft at 30 June 2004 (2003: nil). 42 15. ACCOUNTS PAYABLE AND ACCRUALS 2004 2003 Consolidated Other Accounts Payable and Accruals Amount due to UGC Other Accounts Payable and Accruals Amount due to UGC Restated 2004 2003 University 43 16. PROVISION OF STAFF BENEFITS 2004 2003 Consolidated Gratuities Contractual Passages Leave Pay and Others Payable: Within 1 yea After 1 year Gratuities Contractual Passages Leave Pay and Others Payable: Within 1 year After 1 year Restated 2003 University

Bank Loan (Note) Amounts repayable within one year transferred to Current Liabilities Balance as at 30 June The maturity profile of the above bank loan is as follows: Within 1 year More than 1 year, but not exceeding 2 years More than 2 years, but not exceeding 5 years More than 5 years 2004 2003 Consolidated and University Note : The bank loan was for the construction of the Graduate Residence together with a University Center. During the year, the bank loan was discharged by early repayment and refinanced with internal University funds. 45 18 Deferred Income Balance as at 1 July 2002 Subventions received Credited to income and expenditure statement Transferred to Deferred Capital Funds Balance as at 30 June 2003 Subventions received Credited to income and expenditure statement Transferred to Deferred Capital Funds Balance as at 30 June 2004 Subventions Agencies Donations Total Consolidated and University UGC subventions Grants from Government Agencies Donations Total 46 19 DEFERRED CAPITAL FUNDS Balance as at 1 July Buildings Fixtures and equipment Subventions and donations received and receivable during the year for Property and Equipment Buildings Fixtures and equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations (Notes) Buildings Fixtures and equipment Balance as at 30 June Buildings Fixtures and equipment 2004 2003

Consolidated and University Notes : (1) Deferred Capital Funds represent subventions and donations used specifically for the acquisition of property (2nd equipment. The amounts are recognised as income to match the depreciation charge on the property and equipment acquired. (2) Out of $168.387 million (2003: $175.569 million) transferred to income and expenditure statement, $118.953 million (2003: $125.784 million) has been included in Government Subventions and $49.434 million (2003: $49,785 million) in Donations and Benefactions. 47 20. RESTRICTED FUNDS Balance as at 1 July 2002 (Deficit) / Surplus for the year (Note) Endowment Funds received Unrealised gain on Other Securities Recognition of unrealised loss on disposal of Other Securities transferred to income and expenditure statement Inter-fund transfer Balance as at 30 June 2003 Surplus for the year (Note) Endowment Funds received Unrealised loss on Other Securities Recognition of unrealised gain on disposal of Other Securities transferred to income and expenditure statement Inter-fund transfer Endowment Funds Investment Revaluation Reserve Other Restricted Funds Total Consolidated and University Note : The surplus of $84.851 million (2003: $58.271 million) for the year was derived from income of $762.201 million (2003: $714.597 million) after having deducted expenditure of $677.35 million (2003: $656.326 million) for specific purposes. 48 21. OTHER FUNDS General Development Reserve Fund Other General Funds Total Consolidated Balance as at 1 July 2002 Deficit for the year (Note) Share of statutory reserves of an Associate Inter-fund transfer Balance as at 30 June 2003 Surplus for the year (Note) Share of statutory reserves of an Associate Inter-fund transfer 2004&68 30 El 2%% Balance as at 30 June 2004 Note : The surplus of $345.682 million (2003: deficit of $45.017 million) for the year was derived from income of $2,013,389 million (2003: $1,751,646 million) after having deducted expenditure of $1,667.707 million (2003:$1,796.663 million) general purposes. University Balance as at 1 July 2002 Deficit for the year Inter-fund transfer Balance as at 30 June 2003 Surplus for the year Inter-fund transfer Balance as at 30 June 2004 49 22. MATCHING GRANTS AND RELATED DONATIONS In 2003/04, the University Grants Committee (UGC) introduced a Matching Grant Scheme under which qualified donations raised by institutions were matched by UGC on a dollar-for-dollar basis. The amounts of grants and donations raised and expenses incurred under the Scheme have been included in the income and expenditure statement and unspent balances of grants and donations have been retained in the respective funds. In compliance with UGC’s requirement for separate disclosure of the matching grants and related donations, details of income and expenditure are extracted and set out below: 2004 Consolidated and University Income UGC Matching Grant Related Donations Investment / Interest Income Expenditure Instruction and Research Scholarship / Bursary Balance as at 30 June 50

23. CAPITAL COMMITMENTS 2004 2003 Consolidated Outstanding capital commitments not provided for in the financial statements were as follows : Contracted for Authorised but not contracted for University Outstanding capital commitments not provided for in the financial statements were as follows : Contracted for Authorised but not contracted for No taxation is provided as the University is exempt from taxation by virtue of Section 88 of the Inland Revenue Ordinance. 51

財務報表 截至二00四年六月三十日止年度 香港科技大學

目錄 司庫報告 核數師報告 綜合收支報表 大學收支報表 綜合資產負債表 大學資產負債表 綜合基金變動表 大學基金變動表 綜合現金流動表 財務報表附註

香港科技大學 截至2004年6月30日止年度 財務報表

1 司庫報告 會計實務 為確保本地高等教育院校的會計實務準則也符合國 際標準及現代會計要求、教資會資助的院校一致建 議由2003/04年度開始採用香港公認會計原則來 編製財務報表，大學校董會亦通過此建議。 2003年底，教資會資助院校亦修訂了大學之推薦 會計實務準則使所有院校都依據相同的準則編製 財務報表，以便相互參考。因此，大學2003/04年度 的財務報表會以新的標題及副標題將所有政府與非 政府資助的活動以總收人及總開支的形式列明。此 外，大學亦首次綜合其附屬及聯營公司的賑目 據新的公司管治披露準則，報表會新增一高收 入員工的資料。 2002/03年度財務報表亦已按照香港公認會計原 則重編，以便與本年度報表作比較 全年營運情況 本年度綜合營運盈餘錄得430，500，000元（2002/03年度 為13，300，000元），是科大成立至今最高記錄。這大筆 盈餘主要來自教資會等額補助金計劃下所籌集的等 額撥款及相關捐款以及大學於校董會核準的新投資 策略下轉換其投資組合而實現的投資收入。

2 綜合收入 本年度綜合收入為2,775，6000元（2002/03年度為 2，466，200，000元），其中，1，896，800，000元63％）為 政府補助，4，400，000元（15．50）為學費及課程收費 120,900,000元（4．4％）為利息及投資收入 為捐款，輔助服務收入及叫其他項目收人 教資會於2003╱04年度引人等額補助金計劃 政府根 據各院校所籌集的合規定捐款配發相等數額的撥 款。大學成功籌集140，000，000元捐款（包括 58，000，000元留本基金），其中約130，000，000元獲得 教資會配發等額撥款。 除等額補助金計劃外，投資收入的優異表現亦為綜 合收入顯著增長的原因之一叫2003/04年度為元，2002/03年度為24,300,000元 綜合開支 本年度綜合開支為2,345,100,000元（2002/03年度為 2,453,000,000元），其中為學術及研究活動，123，500，（10元管理收－般事務，356，000，000元（15.2）校舍及有關費用， 122,200,000元（5.2%）為其他項目 2003/04 較低的 開支主要由於跟隨公務員於2003/04年內減薪削減 支出約30,000,000元。於2002/03年度因重組人大學僱員公積金計劃而產生一次性特別費用。 教資會資助活動 本年度教資會撥款為 1,83 4,700,000元，佔政府補助的 97％，包括整筆經常撥款及增補撥款1,349,700,000.，為房屋、研究、建設工程、退還差餉及地租而設 的指定撥款358,400,000元，等額補助撥款為 130,600,000元。

3 整筆經常撥款與來自學費及其他收入總額為 1，746，000，000元，而教資會資助經常開支為 1，603，000，000元，143，000 000元盈餘已轉撥至一般及 發展儲備。於2004年6月30日，儲備餘額為 814,000,000元。 建設項目 香港賽馬會創新科技中心即將興建。政府同意提供 105，600，000元即相當於50%的建築成本，惟大學須通 過私人籌款籌集配對款額。香港賽馬會慈善信託基 金已慷慨承諾捐出 100，000，000元款項。 展望 2004年初，教資會在共展所長與時俱進的刊物中 清楚表明了對高等院校未來發展方向的看法。教資 會指出本地高等教育界作為區域教育樞紐，應具國 際競爭力，多元發展的同時亦深入協作，互相緊扣 ，共同推動本地經濟及社會的發展，並同時與中國 內地及其它區域保持獨特的關係。大學會依據這些 指引繼續強化本身的優勢，並為大學在本地和國內 及區域各層面上定下策略方向，對香港及區內的經 濟和社會發展作出貢獻

已簽署 大學司庫 雷添良 2004年11月12日

4 核數師報告書 德勤 致：香港科技大學校董會 本核數師行已完成審核刊於第6頁至第51頁的財 務報表，該等財務報表乃按照香港公認會計原 則編製的財務報表。 校董會及核動師的個別責任 貴校董會須負責編製真實與公平的財務報人。 在編製該等財務報表時，貴校董會必須貫徹 探用合適的會計政策。 本行之責任是根據本行審核工作之結果，對診 等財務報表發表獨立意兄，並僅向 貴校萊會 報告本行之意見，及不作其他用途。本行枝干 就本報告之內容向任何其他人士負〔責任或承 擔法律責任。 意見的基礎 本行足按照香港會計師公會頒佈的核數準刖世 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 作的重大估計和判斷，所釐定的會計政策是否 適合大學及綜合機構的具體情況，及有否貫徹 應用並足夠地披露該等會計政策。

5 本行在策劃和進行審核工作時，均以取得－切 本行認為必需的資料及解釋為目標，使本忖能 獲得充份的憑證，就該等財務報表是否存仃重 要錯誤陳述，作出合理的確定。在表達意兒時 ，本行亦已衡量該等財務報表所載的資料作整 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真實與公平地反映香 港科技大學及綜合機構於2004年6月30日的財務 狀況以及綜合機構截至核日止年度的收支結算 和現金流動。

已簽署 德勤•關黃陳方會計師行 香港執業會計師 2004年11月12日

6 綜合收支報表 截至2004年6月30日止年度 附註 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他營運收人 所佔聯營公司的經營業績 開支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 本年度轉撥前盈餘

7 綜合收支報表（續） 截至2004年6月 30日止年度 轉至/（自）： 限定基金 其他基金

8 大學收支報表 截至2004年6月30日止年度 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他營運收入 開支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 本年度轉撥前盈餘

9 大學收支報表（續） 截至2004年6月30日止年度 附註 重糰 轉用至╱（自）： 限定基金 其他基金

10 綜合資產負債表 2004年6月30日 附註 非流動資產 物業及設備 證券投資 於聯營公司權益 流動資產 存貨 應收賬款及預付款頊 現金及現金等值 流動負債 應付賬款及應計費用 教職員福利撥備 銀行貸款 遞延收益 流動資產淨值 資產總值減流動負債

11 綜合資產負債表（續） 2004年6月30日 附設 非流動負債 教職員福利撥備 銀行貸款 資產淨值 遞延設備基金 限定基金 其他基金 基金總和 校董會於2004年11月 12日核准本財務報表

雷添良 大學司庫 已簽署 朱經武 校長 黃世邦 財務處處長

12 大學資產負債表 附註 重編 非流動資產 物業及設備 証券投資 投資於聯營公司 投資於附屬公司 流動資產 存貨 應收賬款及預付款項 現金及現金等值 流動負債 應付賬款及應計費用 教職員福利撥備 銀行貸款 遞延收益 流動資產淨值 資產總值減流動負債

13 大學資產負債表（續） 2004年6月30日 非流動負債 教職員福利撥備 銀行貸款 資產淨值 遞延設備基金 限定基金 其他基金 基金總和 附註 重編

14 綜合基金變動表 遞延設備基金 限定基金 其他基金 基金總和 2002年6月30日之結餘 本年度盈餘/（虧絀） 留本基金收入 於其他證券末實現之盈利 其他証券之未實現虧損於出售時被確認及轉撥至綜合 收支報表 於年內已收及應收的補助及捐款：用作購置物業及設備 為以補助及捐款購置的物業及設備所需折舊之款頊而轉賬至 收支報表 於聯營公司所佔法定儲備 基金轉撥 2003年6月30日之結餘 本年度盈餘 留本基金收入 於其他證券未實現之虧損 其他證券之末實現盈利於出售被確認及轉撥至綜合 收支報表 於年內已收及應收的補助及捐款用作購置物業及設備 為以補助及捐款購置的物業及設備所需折舊之款頂而轉賬至 收支報表 於聯營公司所佔法定儲備 基金轉撥 2004年6月30日之結餘

15 大學基金變動表 樓宇基金 設備基金 一般基金 特定基金 儲備及備付金 教資會撥款結算賬 遞延設備基金 限定基金 其他基金 基金總和 2002年6月30日之結餘 會計政策之更改 確認開支 確認收入 物業及設備 証券投資 重新分類 2002年6月30日之重編結餘 本年度盈餘/（虧絀） 留本基金收入 於其他證券末實現之盈利 其他証券之未實現虧損於出售時被確認及轉撥至收支報表 於年內已收及應收的補助及捐款用作購置物業及設備 為以補助及捐款購置的物業及設備所需折舊之款項而轉賬至收支報表 基金轉撥 2003年6月30日之重編結餘

16 大學基金變動表（續） 樓宇基金 設備基金 一般基金 特定基金 儲備及備付金 教資會撥款結算賬 遞延設備基金 限定基金 其他基金 基金總和 2003年6月30日之重編結餘 本年度盈餘 留本基金收入 於其他證券末實現之虧損 其他証券之末實現盈利於出售時被確認及轉撥至收支報表 於年內已收及應收的補助及捐款用作購買物業及設備 為以補助及捐款購買的物業及設備所需折舊之款頊而轉賬至收支報表項 基金轉撥 2004年6月30日之結餘

17 綜合現金流動表 截至2004年6月30日止年度 營運活動 本年度淨盈餘 折舊 出售物業及設備之虧損 利息及投資收入 持至到期日證券溢價攤銷╱（折實） 銀行貸款之利息支出 存貨之減少╱（增加） 應收賬款及預付款項之減少 應付賬款及應計費用之增加╱（減少） 遞延收益之增加╱（減少） 教職員福利撥備之增加 所佔聯營公司的經營業績 轉撥自遞延設備基金 營運活動淨現金流入

18 綜合現金流動表（續） 截至2004年6月30日止年度 投資活動 購買物業及設備 於三個月後到期之銀行存款之減少/（增加） 購買持至到期日証券 投資其他証券之（增加）/減少 出售物業及設備之收入 利息及投資收入 投資活動淨現金流出 融資活動 留本基金收入 用以購買物業及設備之補助及捐款收入 支付銀行貸款之利息 償還銀行貸款 融資活動淨現金（流出)/流入 現金及等同現金之淨增加╱減少） 年初之現金及等同現金 年終之現金及等同現金

19 財務報表附註 2004年6月30日 一般事項 大學主要提供理學、科技、工程、管理 及商學等科目的學士學位及研究生課程 ，並與政府、商業機構、工業及其它高 等教育院校緊密合作，促進香港經濟．生 社會的發展。大學的附屬公司的主要、活 動及其它事項詳列於財務報表附註12 內。 會計政策之更改 大學以往一向是按香港高等教育機構一 般採納之會計政策來編製財務報表。 於2003年7月1日開始探納修訂之大學 之推薦會計實務準則，大學在本年度 開始按香港會計師公會發出的香港財 務報告準則來編製財務報表 香港 財務報告準則。包括香港會計師公會所 核準之會計實務準則及詮釋。其主 要影響如下： 確認開支 確認收入 物業及設備 証券投資 遞延費用 確認開支 開支以往是包括所有已向供應商發出訂 單但於報告日仍未收取的物品或服務。 在新的會計政策下，衹有已收物品或已 用服務才可以確認為開支，而以往的報 表亦已按新會計政策作了修訂。

20 由於實施新政策，累積2002年7月1日之 前報表所須作出的改動，於該日的期然 基金結既增加了 101，208，000元，應付辦 款也相應減少了等額的款項，而截中 2003年6月30日的盈餘則增加 12，119，000元。 確認收入 往年，已收及應收的政府撥款及指定扣 款都會確認為收入。但新會計政策按附 註2．5要求政府撥款及捐款必須與開支配 對及按有關開支的會計期予以確認為吸 入。以往的報表已按新會計政策作了修 定 由於實施新政策，累積2002年7月1日之 前報表所須作出的改動，於該日的期終 基金結餘減少了259，289，000元，應收賬 款也相應增加了 30，41 00元及確認 為數289，706，000元的遞延收益，而截至 2003年6月30日的盈餘亦減少 元。 物業及設備 往年，已訂購之物業及設備項目會首先 在收支報表列作開支。及後支付款項。 有關物業及設備的成本值則以物業及希 備對應樓宇或設備基金再次入賬。有關 物業及設備在裝貿後，其折舊會於樓宇 或設備基金中撤銷。按新會計政策，物 業及設備項目不可於訂購或付款時列賬 ，必須於裝置後才可確認入賬；按附註 2.6要求折舊必須入賬於收支報表而不可 於樓宇或設備基金中撤銷。以往的報表 已按新會計政策作了修訂。

21 新政策實施後，於2002年7月1日期終基 金結餘以及物業及設備各自增加 356，000元，該款額為於2002年7月1日 安裝而未支付之物業及設備值；而截至 2003年6月30日的盈餘亦增加 元。 証券投資 証券投資以往一向以成本值扣除任何減 值後入賬。新會計政策按附註2.7要求持 至到期日証券要以攤銷成本扣除減值來 計價；而可交易及其他証券則以公允值 來計價。以往的報表已按新的會計準則 作了修訂。 實施新政策後，累積2002年7月1日之的 報表所須作出的改動，於2002年7月1日 的期終基金結餘及持有投資證券值各 減少了 18．008，000 遞延費用 大學於2003年 12月重組僱員公積金計劃 ，而作出一次過承擔付款65，897, 000 元。其中，40，897000元於2003年6月 10 日的資產負債表中以遞延費用入帳。 在新會計政策下，重組費用須於2003年 度內入賬為大學開支。因此，截至2003 年6月30日的盈餘減少了40，897，000元。 主要會計政策 本財務報表乃根據原始成本慣例及按照 香港公認會計原則而編製。主要會計政 策如下： 綜合準則 綜合財務報表融合了大學及其附屬公司 截至每年6月30日的財務報表。

22 於年度內被購買或出售的附屬公司，其 賬項會由購買生效日起或出售生效日止 入帳於綜合收支報表內。 投資於附屬公司 大學於附屬公司的投資按成本值扣除任 何可確認減值後在資產負債表中入帳。 施聯營公司權益 綜合收支報表包括人學所佔聯營公司以 被收購後的該年度的業績。在綜合資璿 負債表中，大學所佔聯營公司的權益 大學所佔聯營公司的淨資產值扣除任何 可確認減值入帳。 聯營公司的業績是以大學在年度內收掛 及應收的股息來記入大學的帳目。在大 學資產負債表中，聯營公司的投資以成 本值減任何可確認減值入帳。 負商譽 負商譽為大學在收購日於聯營公司可確 認資產及負債公允值的權益高於收購成 本的部分，會在聯營公司的帳面價值中 扣除。 收入 政府補助及指定捐款必須與開支配對 按有關開支的會計期予以確認為收入 剩餘的整筆經常撥款根據現行教資會的 規定亦會列為收入及轉撥至大學一般 發展儲備基金。 用作購置會折舊的物業及設備的補助 捐款會以遞延設備基金入帳並按會計政 策附註2．6的規定在有關資產的可使用年 限內攤銷。

23 一般捐款在收取或應收時確認為收入 學費及租金收入概於完成服務後確認入 帳。 銀行存款的利息收人以時間基準按結存 金額及適用利率計算。 留本基金會於接收的年度內列入限定基 金帳項。留本基金所產生的收入於收支 報表中入帳 物業及設備 除在建工程外，物業及設備按成本值減 累積折舊及累積減值後入帳。 除在建工程外，計除剩餘估值後，物業 及設備按直線法計算折舊，依照估計使 用年期以下列年率撇銷。 樓宇 每年2％ 傢具及設備 每年20－25％ 在建工程至工程完文竣並開始使用寸予以 計算折舊。 資產出售或報廢而產生的收益或虧損社 由出售收入與資產帳面值的差額泱定。 並於收支報表確認入賬。 由政府補助及指定捐款支付的物業及設 備列為資本項目，而相關的金額會計入 遞延設備基金內。與有關物業及設備折 舊費用相等的金額將每年由遞延設備基 金轉至收支報表中。 證券投資 證券投資初步以成本值及按交易日入 賬。

24 在以後的年報日，持至到期日證券會以 攤銷成本扣除任何已確認為不可收回的 金額的減償來計價。為購買持至到期日 證券所產生而每年需攤銷之折扣或溢價 ，則會在該投資工具的期限內，與該項 投資的其他應收投資收入合計，因而在 每個期間能確認一固定回報率的收入。 除持至到期日證券外，証券可分類為交 易證券或其它証券，並以報告日的公允 值入帳。交易証券之末兒現收益及虧損 列入該期淨盈餘或虧絀中。其它証券的 未兌現收益及虧損則先在基金中記賬， 直至出售或決定為該證券減值，於基金 中累積的收益或虧損才列入該期淨盈餘 或虧絀中。 減值 在每年結算日，大學會審查資產的帳面 值，確定資產有沒有出現減債跡象。告 估計資產的可收回金額較帳面值為低， 則須將帳面值調低至可收回金額。而所 產生的減值會即時確認為開支。 倘若所作出的減值可於日後回撥，資產 的帳面值會調高至重估的可收回金額， 惟調高後之可收回金額不可多於資產於 以前年度末有減值的帳面值。所回撥的 減值會即時確認為收入。 存貨 自籌資金業務持作轉售之存貨按成本或 可變現淨值兩者較低者入帳。成本以加 權平均法計算。 退休福利開支 為界定供款退休計劃所支付之款項，於 供款到期日列為支出。

25 政府補助 重編 綜合及大學 教資會補助 整筆經常撥款 增補撥款╱薪酬調整 指定撥款 研究 房屋福利 其他 退還差餉及地租 建設撥款及校舍改建、加建及改善工程之整筆撥款 等額撥款 政府有關機構撥款

26 學費、課程及其他收費 綜合 教資會資助課程 學費 入學申請及其他收費 非教資會資助課程 教資會資助課程 學費 入學申請及其他收費 非教資會資助課程

27 外界捐款 重編 綜合及大學 建設項目 獎學金及助學金 學術及研究活動 附註 香港賽馬會慈善信託基金於本年度提供捐款共港幣7,229,957 元

28 輔助服務 綜合 學生宿舍 膳食服務 紀念品部 租金收入 教職員繳納之租金 其他 學生宿舍 膳食服務 紀念品部 租金收入 教職員繳納之租金 其他

29 其他營運收入 綜合 研究合約 其他 重編 研究合約 其他

30 開支 薪酬及福利 管理支出 折舊 總計 總計 綜合 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 小計 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 小計 2004年度總開支 2003年度總開支

31 開支（續） 薪酬及福利 營運支出 折舊 總計 重編 大學 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 小計 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 小計 2004年度總開支 2003年度之重編總開支

32 營運支出分析 學術及研究 綜合 職務探訪及教職員培訓 設備 一般辦公室╱教學及科研費用 圖書館書籍及期刊 研究生助學金 管理及一般事務 核數師酬金 財務費用 一般保險 一般辦公室費用╱設備 法律費用

33 營運支出分析（續） 綜合 校舍及有關費用 一般辦公室費用╱設備 物業保險 差餉及地租 維修及保養╱小型工程 公共事業、清潔及保安支出 學生及通識教育服務 一般辦公室費用╱設備 學生醫療及牙科保健 宿舍 獎學金及助學金 學生活動 其他活動

34 營運支出分析（續） 重編 大學 學術及研究 職務探訪及教職員培訓 設備 一般辦公室╱教學及科研費用 圖書館書籍及期刊 研究生助學金 管理及一般事務 核數師酬金 財務費用 一般保險 一般辦公室費用╱設備 法律費用

35 營運支出分析（續） 重編 大學 校舍及有關費用 一般辦公室費用╱設備 物業保險 差餉及地租 維修及保養╱小型 工程 公共事業、清潔及保安支出 學生及通識教育服務 一骰辦公室費用╱設備 學生醫療及牙科保健 宿舍 獎學金及助學金 學生活動 其他活動 高收入員工 高收入員工歸納於以下組別內： 綜合及大學

36 物業及設備 褸宇 在建工程 傢具及設備 總計 綜合 成本 2003年7月1日之結餘 添置 轉撥 出售/撇銷 2004年6月30日之結餘 折舊 2003年7月1日之結餘 本年度計算之折舊 出售╱撇銷 2004年6月 30日之結餘 賬面淨值 2004年6月30日之結餘 2003年6月30日之結餘

37 物業及設備（續） 樓宇 在建工程 傢具及設備 總計 大學 成本 2003年7月1日之重紀結餘 添置 轉撥 出售╱撇銷 2004年6月30日之結餘 折舊 2003年7月1日之重編結餘 本年度計算之折舊 出售╱撇銷 2004年6月30日之結餘 賬面淨值 2004年6月30日之結隊 2003年6月30日之重編結餘 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。

38 証券投資 綜合 持至到期日証券之攤銷成本值 其他証券 非上市証券之公允值 上市証券之市值 香港 海外 重編 大學 持至到期日証券之攤銷成本值 其他証券 非上市証券之公允值 上市証券之市值 香港 海外

39 於聯營公司權益 所佔淨資產 綜合 於聯營公司負商譽（附註） 負商譽產生於2000年收購聯營公司 該數值記賬於儲備直至售出 聯營公司才計進收入 非上市投資成本值 大學 聯營公司 業務架構模式 註冊地點/ 營運地點 擁有權益 主要活動 深港產學研基地 註冊成立 中華人民共和國 促進深圳經濟特區高新 科技的發展，並培育精 英專才

40 投資於附屬公司 大學 非上市投資成本值 附屬公司 註冊地點 擁有權益 主要活動 直接持有 間接持有 香港科技大學持續進修學院有限公司 香港科大地產有限公司 香港科大研究開發有限公司 香港 香港 香港 香港 開辦教育科目及課程 不活動 把大學的研究項目所引發的創新 科技轉化為商業投資 為大學的生物科技研究、發展及 轉化成果為商業用理提供所需的 持續資金

41 應收限款及預付款頂 綜合 預付款項及按金 應收賬款 教資會應付款項 預付款項及按金 應收賬款 教資會應付款項

42 現金及現金等值 綜合 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（附註） 大學 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（附註） 其他銀行及現金結餘包括已簽發但未兌現之支票 於2004年6月30 日時並無實質透支(2003 : 沒有)

43 應付賬款及應計費用 其他應付賬款及應計費用 教資會應收款項 綜合 重編 其他應付賬款及應計費用 教資會應收款項

44 教職員福利撥備 綜合 退職金 合約訂明之旅費 代假期金及其他 應付於： 一年內 一年後 退職金 合約訂明之旅費 代假期金及其他 應付於： 一年內 一年後

45 銀行貸款（附註） 綜合及大學 7月1日之結餘 於年內償還 於一年內到期之貸款轉撥至流動負債 6月30日之結餘 以上銀行貸款之償還期如下： l年內 l年以上但不超過2年 2年以上但不超過5年 5年以上 附註 該筆銀行貸款是用作興建研究生宿舍連大學中心 該貸款己於年內提前償清及轉為大學內部融資

46 遞延收益 教資會補助 政府有關機構撥款 捐款 總計 綜合及大學 2002年7月1日之結餘 補助收益 計入收支報表 轉入遞延設備基金 2003年6月30日之結餘 補助收益 計入收支報表 轉入遞延設備基金 2004年6月30日之結餘

47 遞延設備基金 綜合及大學 7月1日之結餘 樓宇 傢具及設備 於年內已收及應收的補助及捐款用作購置物業及設備 褸宇 傢具及設備 為以補助及捐款購置的物業及設備所需折舊之款項而轉賬至收支報表（附註） 樓宇 傢具及設備 6月30日之結餘 樓宇 傢具及設備 遞延設備基金是指用以購置物業及設備的特定補助及捐款 該款項對應所購置物業及設備的折舊費用而確認為收入 轉賬至收支報表包括於政府補助之內 則計入外界捐款

48 限定基金 留本基金 投資重估儲備 其他限定基金 總計 綜合及大學 2002年7月 1日之結餘 本年度（虧絀) 盈餘（附註） 留本基金收入 於其他證券未實現之盈利 其他証券之末實現虧損於出售時被 確認及轉撥至收支報表 基金轉撥 2003年6月30日之結餘 本年度盈餘（附註） 留本基金收入 於其他證券未實現之虧損 其他證券之未實現盈利於出售時被 確認及轉撥至收支報表 基金轉撥 2004年6月30日之結餘 本年度特定收入為 扣除特定開支後 錄得盈餘為

49 其他基金 一般及發展儲備基金 其他 一般基金 總計 綜合 2002年7月1日之結餘 本年度虧絀（附註） 於聯營公司所佔法定儲備 基金轉撥 2003年6月30日之結餘 本年度盈餘（附註） 於聯營公司所佔法定儲備 基金轉撥 2004年6月30日之結餘

本年度一般收入為 在扣除一般開支後 錄得盈餘為 虧絀

大學 2002年7月1日之結餘 本年度虧絀 基金轉撥 2003年6N30日之結餘 本年度盈餘 基金轉撥 2004年6月30日之結餘

50 等額撥款及關連捐款 大學教育資助委員會（教資會）於2003/04年度引入等額補助金計劃，教資會根據院校所籌集 的合規格捐款配發相等數額的撥款。計劃中所籌集的撥款及捐款及相關開支已於收支表中 入帳。而未使用的餘額則留存在有關基金項下。此外，教資會要求額外披露等額撥款及相關捐款的資料，為附合要求有關收支的詳情摘錄如下： 綜合及大學 收入 教資會等額撥款 關連捐款 投資/利息收入 支出 教學及研究 獎學金/助學金 6月30日之結餘

51 資本承擔 綜合 以下為尚未於財務報表作出準備之資本承擔 已簽約 已獲授權但尚未簽約 重編 大學 以下為尚未於財務報表作出準備之資本承擔： 已簽約 已獲授權但尚未簽約 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，因此不需作出撥備