HKUST 2008-2009 Annual Report
89
Overview
The financial tsunami sent shockwaves throughout the
financial world in September 2008; and quickly spread
to almost all sectors of the global economy. Although
the investment portfolios managed by external fund
managers of the University suffered quite a sizeable blow
not too different from other similar portfolios elsewhere,
the internally managed investments, mainly in fixed
deposits and bonds, have been relatively stable. The mix
of the internally and externally managed portfolio resulted
in a consolidated 2008/09 investment and interest return
of $124.3 million ($118.5 million for 2007/08). With
the closure of the Fourth University Grants Committee
(UGC) Matching Grant Scheme (MGS) in April 2009 as
well as the usual higher triennium-end spending, the
University saw its consolidated 2008/09 operating surplus
reduced to $129.6 million ($458.2 million for 2007/08).
Notwithstanding these undesirable factors, the University
continued its strategic investment in preparing for the
4-year Undergraduate (UG) system in 2012.
Consolidated Income and
Expenditure
Consolidated income for the year decreased to $2,683.0
million from $2,857.3 million of 2007/08. The decrease
was primarily due to a drop in donations and matching
grants.
Consolidated expenditure for the year increased to
$2,557.3 million from $2,401.1 million in 2007/08. The
increase was partly due to an upward cost of living salary
adjustment made in line with that for the civil servants and
other planned expenditure against the UGC Block Grant.
Segment Reporting
In order to present a clearer picture of the financial
results of the University’s operations, segment reporting
is adopted for the first time this year showing the major
sources of income for the University, and the expenditure
incurred in relation thereto.
UGC Block Grant-funded Activities
2008/09 was the last year of the extended triennium
2005-2009. A deficit of $60 million (surplus of $35.9
million in 2007/08) was recorded. The deficit was due to
the usual higher level of expenditure at triennium end and
the strategic spending for the 4-year UG system. The deficit
spending is part and parcel of the University’s budget
strategy to prepare for the 4-year UG system.
Fund Raising Related Activities
As explained earlier, attributable to the financial tsunami
and the closure of the Fourth Matching Grant Scheme
in April 2009, donations and matching grant income fell
sharply resulting in a lower surplus of $82.7 million for
2008/09 ($284.3 million for 2007/08).
Self-Financing CPEP, Research and
Other Activities
A surplus of $106.9 million ($137.9 million for 2007/08)
was generated primarily from self-financing continuing
professional education programs (CPEP) and auxiliary
services for student and staff accommodation. With the
planned closure of the University’s continuing education
arm, the HKUST College of Lifelong Learning Limited,
by late year 2009; and slow down of the CPEP market,
income from these activities had dropped.
Capital Projects
A number of capital projects to cater for the expansion
for the 4-year UG system are still in progress. They include
extension to the existing facilities, Lee Shau Kee Business
Building, IAS academic building, 3 student hostels as
well as the HKUST Shenzhen IER (Industry, Education
and Research) Building. While a majority of these capital
constructions are funded by UGC, the University has to
contribute its non-UGC resources mainly for the 3 student
hostels and the HKUST Shenzhen IER Building.
Outlook
The University will continue its strategic spending
preparing for the 4-year UG system in 2012: in addition
to the above-mentioned capital building construction
projects and the implementation of a fully integrated ERP
(Enterprise Resources Planning) IS system, the University
is looking to hire both faculty and administrative staff
in order to transition to 2012. The University is also in
the process of reviewing its investment strategy with the
objective of building a well-diversified investment portfolio
that will enhance long term returns and minimize volatility
under different economic conditions.
附錄
AppendiX IV
