The Review 2006

The Review 2006 V ision The University of Hong Kong, as a pre-eminent international university in Asia, seeks to sustain and enhance its excellence as an institution of higher learning through outstanding teaching and world-class research so as to produce well-rounded graduates with lifelong abilities to provide leadership within the societies they serve. m ission The University of Hong Kong will endeavour: • To advance constantly the bounds of scholarship, building upon its proud traditions and strengths; • To provide a comprehensive education, developing fully the intellectual and personal strengths of its students while developing and extending lifelong learning opportunities for the community; • To produce graduates of distinction committed to lifelong learning, integrity and professionalism, capable of being responsive leaders and communicators in their fields; • To develop a collegial, flexible, pluralistic and supportive intellectual environment that inspires and attracts, retains and nurtures scholars, students and staff of the highest calibre in a culture that fosters creativity, learning and freedom of thought, enquiry and expression; • To provide a safe and healthy workplace to support and advance teaching, learning and research at the University; • To engage in innovative, high-impact and leading-edge research within and across disciplines; • To be fully accountable for the effective management of public and private resources bestowed upon the institution and act in partnership with the community over the generation, dissemination and application of knowledge; • To serve as a focal point of intellectual and academic endeavour in Hong Kong, China and Asia and act as a gateway and forum for scholarship with the rest of the world. An extract from the University’s Annual Accounts 2005-06 The University of Hong Kong Consolidated Balance Sheet As At June 30, 2006 (Expressed in thousands of Hong Kong dollars) 2006 2005 Assets Non-Current Assets • Property, Plant and Equipment 6,701,517 6,701,750 • Leasehold Land and Land Use Rights 609,756 622,879 • Interest in Associates 5,016 - • Interest in Jointly Controlled Entities 14,113 14,593 • Investments 7,484,452 6,680,385 • Bank Deposits 516,463 80,000 • Loans Receivable 33,614 46,593 15,364,931 14,146,200 Current Assets • Investments 538,657 201,889 • Loans Receivable 142,119 136,616 • Inventories 3,189 2,984 • Accounts Receivable and Prepayments 157,572 128,567 • Cash and Bank Deposits 2,195,608 1,632,499 3,037,145 2,102,555 Total Assets 18,402,076 16,248,755 Funds Deferred Capital Funds • Equipment 8,257 4,452 • Buildings 217,640 199,898 225,897 204,350 Restricted Funds • General Endowment Fund 2,033,630 1,745,799 • Investment Reserve 828,262 561,327 • General Reserve 15,000 15,000 • Contingencies Reserve 1,000 1,000 • Staff Housing Loan Fund 182,202 175,136 • Property Revaluation Reserve 5,926,470 6,052,605 • Capital Projects 194,239 280,725 • Research Projects and Quality Assurance 159,600 195,431 9,340,403 9,027,023 Other Funds • General and Development Reserve Fund 1,623,987 1,494,950 • Self-financing Activity Funds - University 120,681 99,751 - HKU SPACE 939,989 760,959 - Other Subsidiaries (3,855) - 1,056,815 860,710 • Donations and Benefactions 3,764,346 2,448,866 6,445,148 4,804,526 Total Funds 16,011,448 14,035,899 Liabilities Non-Current Liabilities • Employee Benefit Accruals 230,040 255,516 • Loans and Borrowings 353,072 236,587 583,112 492,103 Current Liabilities • Accounts Payable and Other Accruals 837,162 662,262 • Employee Benefit Accruals 320,431 338,528 • Loans and Borrowings 105,712 104,638 • Deferred Income • Earmarked Grants 220,950 228,401 • Capital Grants and AA and I Block Allocation 276,358 326,859 • Others (including Donations and Benefactions) 46,903 60,065 544,211 615,325 1,807,516 1,720,753 Total Liabilities 2,390,628 2,212,856 Total Funds and Liabilities 18,402,076 16,248,755 Net Current Assets 1,229,629 381,802 Total Assets Less Current Liabilities 16,594,560 14,528,002 The University of Hong Kong Consolidated Income And Expenditure StatemenT For the Year Ended June 30, 2006 (Expressed in thousands of Hong Kong dollars) 2006 2005 Income Government Subventions Subventions from UGC: • Block Grants and Non-accountable Supplementary Grants 2,081,382 2,066,540 • Earmarked Grants 373,873 386,594 • Rates and Government Rent Refund 31,993 31,700 • Capital Grants and Alteration, Additions and Improvements (“AA & I”) Block allocation 70,505 14,349 2,557,753 2,499,183 Matching Grants 250,000 - Grants from Government Agencies and Related Organisations 53,049 63,179 2,860,802 2,562,362 Tuition, Programmes and Other Fees • UGC-Funded programmes 528,385 507,493 • Non UGC-Funded programmes 1,088,201 1,007,422 1,616,586 1,514,915 Interest and Investment Income 712,385 447,633 Donations and Benefactions 538,075 254,657 • Auxiliary Services - Residential Halls and Hostels 57,865 45,838 - University Press 4,492 4,213 - Rental Income and Rental Contribution from Staff 73,086 63,552 - Clinics and Chinese Medicine Pharmacies 20,762 18,496 - Others 10,020 10,753 166,225 142,852 • Other Income - Contract Research 71,220 76,129 - Service Income 114,328 88,917 - Outside Practice 52,386 53,206 - Miscellaneous 20,985 5,555 258,919 223,807 6,152,992 5,146,226 Expenditure Learning and Research • Instruction and Research 3,209,960 3,154,799 • Library 179,541 156,970 • Central Computing Facilities 78,626 80,099 • Other Academic Services 163,852 163,054 3,631,979 3,554,922 Institutional Support • Management and General 289,839 284,032 • Premises and Related Expenses 693,669 610,664 • Student and General Education Services 146,175 134,657 • Other Activities 59,930 67,766 1,189,613 1,097,119 4,821,592 4,652,041 Surplus from Operations 1,331,400 494,185 Share of Losses of Associates (1,745) - Share of Losses of Jointly Controlled Entities (788) (38) Surplus for the Year 1,328,867 494,147 Transfers To • Restricted Funds 203,872 111,290 • Other Funds 1,124,995 382,857 1,328,867 494,147 iii