OVERVIEW
Year 2013/14 was the second year after the 4-year undergraduate
system was launched. It ended with a surplus of $602 million
($878 million for 2012/13). Investment returns amounted to
$562 million ($318 million for 2012/13) mainly generated from
the University’s enlarged investment portfolio managed by
investment managers in accordance with the University’s laid
down investment strategies. With less matching grant available,
donations and matching grants were down to $105 million ($543
million for 2012/13).
CONSOLIDATED INCOME AND EXPENDITURE
Consolidated income slightly increased to $4,198 million for the
year ($4,191 million for 2012/13) as a result of the favourable
investment returns, additional earmarked/supplementary
grants from UGC/Government, and an increase in tuition fee
income but offset by the decrease in donations and matching
grant income.
Consolidated expenditure for the year increased to $3,604
million ($3,316 million for 2012/13) mainly due to additional
staffing and other resources for supporting the increased student
enrollment population, the enlarged campus and increased
research activities.
SEGMENT RESULTS
University Grants Committee (“UGC”) Block Grant-funded
Activities
The University continued to put in the planned additional
resources on staffing and other required facilities for operation
of the 4-year undergraduate program. The surplus of $126
million has been transferred to and retained in the General and
Development Reserve for future use.
Self- Financing Continuing Professional Education
Programs (“CPEP”), Research and Other Activities
Primarily due to the favourable investment returns generated
from accumulated reserve funds, overall surpluses of these
operating segments for the year increased to $204 million ($134
million for 2012/13).
Donations and Related Activities
This segment recorded a surplus of $272 million ($596 million
for 2012/13), as a result of lower donations and matching grant
income, partly off-set by an increase in investment returns. Had
the operating results of the donation activities segment been
removed from the other segments, the year-on-year variance
in the consolidated operating result would be a favourable $48
million (surplus of $330 million for 2013/14 vs surplus of $282
million for 2012/13) instead of an unfavourable $276 million
(surplus of $602 million for 2013/14 vs surplus of $878 million for
2012/13).
CAPITAL EXPENDITURE
The Research and Academic Building completed in September
2014 will further enhance the University’s teaching and research
facilities. Other in-progress construction projects include the
Conference Tower, new on-site student residence and off-
campus joint student hostel in Tseung Kwan O.
As at 30 June 2014, the total commitments for the approved
construction projects and other capital items amounted to $1,333
million: $786 million of which will be supported by approved but
yet to be received UGC grants, $19 million by pledged donations
and the rest by the University’s reserves and deferred income on
hand.
OUTLOOK
After completion of the 6th Matching Grant Scheme, the
University foresees challenges in fund raising activities in
the coming year. The University will continue to proactively
manage its financial position and ensure adequate resource
allocation in supporting the University’s strategic initiatives and
operation plans.
INTERDISCIPLINARY PROGRAMS OFFICE ADVISORY BOARD
Prof Yue Chee Yoon
Associate Provost (Graduate Education)
President’s Office
Nanyang Technological University
Prof Arup K Chakraborty
Robert T Haslam Professor of Chemical
Engineering
Professor of Chemistry, Professor of Physics
Professor of Biological Engineering
Director, Institute for Medical Engineering
and Science
Massachusetts Institute of Technology
(Chair of the Advisory Board of the HKUST
Division of Biomedical Engineering)
Prof Peter Brimblecombe
School of Environmental Sciences
University of East Anglia
(Chair of the Advisory Board of the
HKUST Division of Environment)
APPENDIX IV: FINANCE
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HKUST 2013-2014 Annual Report
