80
HKUST 2015-2016
Annual Report
81
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 30 June 2016
2016
$ MILLION
2015
$ MILLION
INCOME
Government Subventions and Grants
Tuition, Programs and Other Fees
Interest and Investment Income
Donations and Benefactions
Auxiliary Services and Other Income
Transfers from Deferred Capital Funds
2,334
1,104
(6)
316
353
217
2,241
1,030
(96)
86
347
220
4,318
3,828
EXPENDITURE
Teaching, Learning and Research
Teaching and Research
Library
Central Computing Facilities
Other Academic Services
2,528
108
118
106
2,447
104
127
97
2,860
2,775
Institutional Support
Management and General
Premises and Related Expenses
Student and General Education Services
Other Activities
289
574
246
49
241
548
237
32
1,158
1,058
4,018
3,833
SURPLUS / (DEFICIT) FROM OPERATION FOR THE YEAR
Share of Result of an Associate
Share of Result of a Joint Venture
300
15
1
(5)
1
(1)
SURPLUS / (DEFICIT) FOR THE YEAR BEFORE TAXATION
316
(5)
TAXATION
0
0
SURPLUS / (DEFICIT) FOR THE YEAR AFTER TAXATION
316
(5)
OTHER COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR
Items that may be reclassified subsequently to income
and expenditure:
Unrealised (loss) / gain on Available-for-Sale Financial Assets
Exchange differences arising from retranslation
(4)
(15)
3
0
(19)
3
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR
297
(2)
TRANSFERS TO / (FROM):
UGC Funds
Restricted Funds
Other Funds
(28)
238
87
(54)
18
34
297
(2)
APPENDIX III: FINANCE
OVERVIEW
Financial year 2015/16 closed with a surplus of $316 million (a small deficit of $5 million for 2014/15). The significant
improvement over 2014/15 was mainly attributable to higher donation income and much reduced investment loss due
to market conditions.
CONSOLIDATED INCOME AND EXPENDITURE
The consolidated income increased by $490 million to $4,318 million in 2015/16 ($3,828 million in 2014/15), attributable
to a growth of $230 million in donation income, a reduction of $90 million in investment loss; the remainder included
the usual additional University Grants Committee (“UGC”) supplementary grants for General Pay Adjustment (“GPA”)
on salaries, and an increase in tuition fee income.
The consolidated expenditure increased by $185 million to $4,018 million ($3,833 million in 2014/15) which was mainly
due to higher salary costs arising from GPA, as well as the general increases in other operating expenses for teaching
and research activities.
SEGMENT RESULTS
Commentary on the operating segments, analysed by UGC-Funded Activities and non-UGC Funded Activities,
is as follows:
UGC-Funded Activities:
UGC-Funded Activities showed a deficit of $28 million (deficit of $54 million for 2014/15). The 2015/16 deficit was
driven by timing difference on expenditure funded by UGC matching grant. The University has over $2.3 billion
of UGC funds that can be used to cover this deficit. The 2015/16 deficit was smaller than that in 2014/15, and was
primarily due to a lower investment loss offset by reduced matching grants.
Non-UGC Funded Activities
• Research Activities
Besides UGC, other government agencies and funding bodies provided research grants to the University.
Completed commercial research projects resulted in a surplus of $17 million (surplus of $18 million for 2014/15).
• Self-Financing Teaching
The Continuing Professional Education Programs (“CPEP”) generated a surplus of $135 million (surplus of $101
million for 2014/15). The increase in surplus over 2014/15 was due to higher student enrollment, higher tuition
fees and introduction of two new programs.
• Donations Activities
The University had conducted concerted fund-raising efforts successfully on the occasion of its 25th Anniversary.
Donations of $316 million, were secured and recognised, and contributed to a surplus of $195 million (deficit of
$35 million for 2014/15) for this operating segment.
CAPITAL EXPENDITURE
The off-campus student hostel in Tseung Kwan O was completed in 2015/16 and will provide students with a convenient
occupancy at close proximity to the University as from 2016/17. The new on-campus hospitality facility, Li Dak Sum Yip
Yio Chin Kenneth Li Conference Lodge, which caters for the accommodation needs of visitors and overseas students
for various academic and research activities and events, has started its full operation during the year. Other in-progress
construction projects include the Multi-Purpose Auditorium, residence apartment for Research Postgraduate students,
Indoor Sports Centre and Waterfront facilities.
As at 30 June 2016, the total commitments for approved construction projects and other capital items amounted to
$1,706 million: $99 million of which will be funded by deferred income on hand, $1,210 million from existing University’s
Funds, $89 million by approved but yet to be received UGC grants and $308 million by pledged donations.
OUTLOOK
Going forward beyond its 25th Anniversary, the University will continue to enhance and capitalize on its financial, capital
and human resources in teaching and research in pursuit of its strategic goals. On the financial side, in face of the on-
going unstable environment in the investment market, the University will remain cautious in its capital management and
ensure it maintains adequate reserves for the future.
