GENERAL GENERAL ADMINISTRATIONADMINISTRATION

A.A. Financial ManagementFinancial Management– General, Steps, Subvention, General, Steps, Subvention,

Special CasesSpecial CasesB.B. Service AgreementService Agreement

– Terms, Proposal, BudgetTerms, Proposal, Budget

A. Financial ManagementA. Financial Management(1) General(1) General

– No recurrent financial implicationsNo recurrent financial implications– No other source of financeNo other source of finance– Not profit-makingNot profit-making– No fees (if not -> offset the No fees (if not -> offset the

expenditure)expenditure)

A.A. Financial Financial ManagementManagement

(2) (2) StepsSteps– Vet the proposalVet the proposal– Approve the proposal and subventionApprove the proposal and subvention– Acceptance by applicantAcceptance by applicant– Sign a service contract (subject-related orgSign a service contract (subject-related organisation & HKSARG)anisation & HKSARG)– Complete GF179A by applicantComplete GF179A by applicant

A.A. Financial Financial ManagementManagement(3) (3) SubventionSubvention

– $50,000 or below$50,000 or below • ReimbursementReimbursement• Self-certified financial statement & receipts (within 2 mths from cSelf-certified financial statement & receipts (within 2 mths from completion)ompletion)

– $50,001 to $100,000$50,001 to $100,000• Release half of subvention initially (if acceptance, sign agreement,Release half of subvention initially (if acceptance, sign agreement, complete GF179A) complete GF179A)• Up to 25% of the subvention (satisfactory completion of the interiUp to 25% of the subvention (satisfactory completion of the interim report/key milestones)m report/key milestones)• Balance released with self-certified financial statement & receipts Balance released with self-certified financial statement & receipts within 2 months from satisfactory completion)within 2 months from satisfactory completion)

– Over $100,000Over $100,000• Release half as $50,001 to $100,000Release half as $50,001 to $100,000• Up to 25% of the subvention (satisfactory completion of the interiUp to 25% of the subvention (satisfactory completion of the interim report/key milestones)m report/key milestones)• Balance released with financial statement prepared by CPABalance released with financial statement prepared by CPA

A.A. Financial Financial ManagementManagement

(4) (4) Special CasesSpecial Cases– Overlapping items in two separate Overlapping items in two separate

projectsprojects– Rising costs during the project period, Rising costs during the project period,

e.g. staff cost, missing the CPA costs, e.g. staff cost, missing the CPA costs, etc.etc.

– Therefore …. Careful budgeting in the Therefore …. Careful budgeting in the proposal (NO guarantee on exceptional proposal (NO guarantee on exceptional approval for proposal variations)approval for proposal variations)

B. Service AgreementB. Service Agreement• Terms & ConditionsTerms & Conditions• ProposalProposal

– Design/details of the project, action Design/details of the project, action plansplans

• BudgetBudget– Grant $, items to be financed , payment Grant $, items to be financed , payment

schedule (depends on the grant $)schedule (depends on the grant $)

Service Agreement - Terms Service Agreement - Terms & Conditions& Conditions

• Sole purpose of the grant, i.e. complete the Sole purpose of the grant, i.e. complete the tasks of the proposaltasks of the proposal

• Project commencement & completion datesProject commencement & completion dates• Due diligence, conscientious & timely mannerDue diligence, conscientious & timely manner• Work in accordance with the budgetWork in accordance with the budget• Reallocation of funds Reallocation of funds

– Among approved items with variations of 20% or Among approved items with variations of 20% or less (OK)less (OK)

– Exceed 20% or to non-approved items (Seek Exceed 20% or to non-approved items (Seek written approval)written approval)

Terms & Conditions Terms & Conditions (Cont’d)(Cont’d)

• Consent -> no other public funding supportConsent -> no other public funding support• Acknowledge the EDBAcknowledge the EDB• Issues on IP rightsIssues on IP rights• Interest earned = income to cover expendituInterest earned = income to cover expenditurere• Return any unused fundReturn any unused fund• Shall not represent as employee or agent of Shall not represent as employee or agent of HKSAR Govt/ EDBHKSAR Govt/ EDB• Terminate the agreement with 14-day notice,Terminate the agreement with 14-day notice, e.g. breach the terms, not commence/proce e.g. breach the terms, not commence/proceed the projected the project