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Government responds to PAC report on Direct Subsidy Scheme
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     In response to recommendations made in the Report of the Legislative Council Public Accounts Committee (PAC) on the Direct Subsidy Scheme (DSS), the Secretary for Education, Mr Michael Suen, said today (February 16) that the Education Bureau (EDB) would study the Report in detail and follow up on its  recommendations to maintain the continuous improvement of the DSS.

     Mr Suen said that examining the audited accounts submitted annually by DSS schools was one of the important means by which the EDB monitors the schools. In the light of audit recommendations, the EDB has revised the reporting items in the audited accounts.

     "Apart from the usual requirements as in the previous year, DSS schools are required to elaborate on their financial arrangement more clearly and to provide additional information in the coming 2009/10 audited accounts to be submitted to the EDB in mid-April this year. Schools are required to submit details of properties purchased, incomes and expenditures of private classes and trading operations, sources of other reserves with a breakdown by government and non-government funds, repair and maintenance expenses; and detailed computations of the fee remission/scholarship scheme and so forth," he said.

     Regarding the DSS schools identified to have failed to comply with the EDB's requirements, the EDB has followed up with them in writing. Most of the issues have been rectified by the schools, including setting aside sufficient funding for fee remission/scholarships; and improving the utilisation rate of fee remission/scholarship schemes to benefit more students.

     Noting that the Director of Audit's Report also touched on systemic problems including improving the governance, internal control mechanism and financial management of DSS schools, Mr Suen said that in view of the far-reaching implications, problems of this nature required thorough deliberation and would be studied by the newly set up Working Group.

     The Working Group on DSS, chaired by the Permanent Secretary for Education, will be responsible for drawing up appropriate measures to improve the operation of DSS schools which include, inter alia, enhancing the transparency of the management of DSS schools and establishing an internal control mechanism in schools.

     A briefing was organised for members of the Working Group early this month to familiarise them with the background of DSS and the operation of DSS schools. Visits to DSS schools will also be arranged for members. The Working Group will convene formal working meetings starting from early March and plans to submit recommendations for improvement to the Secretary for Education by the end of this year.

     The Working Group comprises six members with expertise in corporate governance, financial management, human resources and other relevant experience, as well as four subject officers of the EDB. The membership list is as follows:

Chairperson
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Permanent Secretary for Education, Mrs Cherry Tse

Members
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Ms Susanna Chiu (Vice President of Hong Kong Institute of Certified Public Accountants; Director of a private firm)
Ms Virginia Choi (Chairperson of Continuing Professional Development Alliance; Manager of a private firm)
Ms Lau Ka-shi (Member of Hospital Authority; Managing Director of a private firm)
Mrs Justina Leung (Honorary President of Hong Kong Social Workers Association; experienced social worker)
Mr Pang Yiu-kai (Chairman of Quality Education Fund Steering Committee; Chief Executive of a private firm)
Dr Carlye Tsui (Member of Board of Review (Inland Revenue); Chief Executive Officer of a private firm)
Deputy Secretary for Education Mrs Michelle Wong
Principal Assistant Secretary for Education (School Development) Mr Steve Lee
Principal Assistant Secretary for Education (Finance) Mrs Lily Tsang
Principal Assistant Secretary for Education (School Administration and Support) Miss Wu Po-ling

Ends/Wednesday, February 16, 2011
Issued at HKT 19:15

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