The Finance Office, being one of the administrative offices of the University, is mainly responsible for all the financial matters of the University. For historical reasons and productivity enhancement, the Office is also responsible for providing service to the University community on a number of other areas. Its major areas of responsibilities include:
The University has a number of sources of funding, with the majority coming from the SAR Government through the University Grants Committee (“UGC”). Under the UGC funding system, there are specific rules and regulations to be followed on how the funding may be used. One of the main responsibilities of the Office is to install and maintain appropriate planning and control mechanism ensuring that UGC funding is used most effectively and in compliance with UGC rules.
In addition to UGC funding, the University also receives income in the form of donations and revenue from services which include but not limited to continuing education. The University makes good use of such income to supplement and complement worthwhile activities that UGC funding cannot support but worthwhile activities. Being a publicly-funded organization, the University conducts vigorous planning and makes monitoring efforts to ensure resources entrusted with it are spent in an accountable manner. The Office takes an active role in assisting the University in this respect. The Director of Finance serves as Secretary to the Finance Committee of the Council which provides corporate governance on the financial matters of the University.
By law, the University is required to maintain proper accounts and records of all income and expenditure and prepare statements of its income and expenditure on an annual basis. The Office is charged with this responsibility. Records of all financial activities of the University are maintained in an integrated computer system developed by the University. The integrated system also provides financial management information on an on-line basis to budget controllers within the University community.
The Finance Office is responsible for looking after all financial assets of the University. This includes overseeing all income and payment processes, cash handling (whether in the Finance Office or via other departments of the University), working capital and cash flow management and investments. The University employs professional investment managers to manage its endowment funds. Currently it has eight fund managers looking after a different portfolio including Global Equity, Asian (ex-Japan) Equity, Global Fixed Income, Unconstrained Bond, Global Multi-Asset and Funds of Hedge Fund.
The University adopts a centralized purchasing policy. All services, equipment and supplies required from contractors outside the University may only be procured through the Finance Office except petty cash purchases. Such purchases are governed by a set of Purchasing & Tendering Regulations, endorsed by the Independent Commission Against Corruption. For accountability reasons, all procurement is made through competitive tenders and overseen by two tender boards depending on the magnitude of the purchase. Under the laws of Hong Kong, the University is classified as a public institution and its entire staff is governed strictly by the Prevention of Bribery Ordinance.
To make best use of the limited space the University has, the University maintains a minimum inventory of essential stationery items. Most stationery supplies, office furniture and equipment are out-sourced to suppliers with expeditious delivery service.
The University currently employs over 3,000 full-time and part-time staff. In addition to monthly salary, staff may enjoy other benefit entitlements according to their appointment terms. The Finance Office is responsible for processing the payment of payroll and disbursement of relevant benefit payments. To ensure the accountability of public funds, appropriate control and accounting systems are implemented by the Finance Office for the assurance of overall remuneration and payments of benefit allowances.
By law, all qualified employees of the University will be provided with retirement benefits. The University operates a Mandatory Provident Fund (MPF) Scheme for new joiners and a Superannuation Fund under trust for full-time staff employed before the Mandatory Provident Schemes Ordinance came to effect or full-time staff who are subsequently invited to join the Fund.
The Finance Office is responsible to liaise with the appointed MPF service provider and it also provides secretarial and administrative support to the Superannuation Fund Supervisory Board which is responsible for the management of the Superannuation Fund via a corporate trustee cum fund administrator.
As part of the Risk Management Programme, the University secures appropriate insurance policy to guard against insurable perils of its assets, staff and students. The Finance Office is responsible to work with professional insurance consultants to identify risks and solicit appropriate insurance policies from the market to effect the coverage. In addition to statutory requirements and all-risk policies on physical buildings and assets, the University also secures coverage on computers, medical benefits for staff, personal accidents for students and staff, public liabilities, professional indemnity for Chinese Medical practitioners and indemnity for directors and officers.
The University maintains a small fleet of eight motor vehicles for the use of the University community on official business. The fleet includes four sedans, two light passenger/goods van, one goods van and one 16-seat light bus. The Finance Office is responsible for receiving bookings and assigning drivers and vehicles to meet the requests from users. All outgoing and incoming mail of the University is centrally handled by a small team of messengers in the Finance Office. The team is responsible for collecting mail from and dispatching mail to each department twice a day, whether inter-departmental or received from outside the University. The Finance Office is also responsible for dispatching outgoing mail to the Post Office and liaising with courier service providers.
The technological breakthrough achieved by the academics occasionally will have a commercial market. Initiatives from the academics to commercialize such intellectual property rights are much encouraged by the University. To show the support, the University has established a system to facilitate the process. The Finance Office is assigned a role to provide administrative support to such initiatives, including giving business advice, liaison with legal advisor and business partners, company secretarial support, accounting work and liaison with auditors.