Appendix 1: Financial Statements

Income and Expenditure Statement for the year ended 31 March 1997

Expressed in Hong Kong dollars

INCOME 31.3.97 31.3.96 Fees 322,388,326 273,046,436 Interest and Investment Income 10,701,215 11,652,721 Rental Recovery on Staff Quarters 0 77,345 ___________ ___________ 333,089,541 284,776,502 ----------------- ----------------- EXPENDITURE Academic Expenditure -Course Materials 17,699,440 14,298,170 -Tutors' Costs 41,289,496 35,514,771 -Direct Student Costs 12,760,923 11,493,039 -Staff Costs 73,535,746 61,608,344 -Recoup to Programme Development Reserve/ Contingency Reserve 16,681,156 13,649,783 -Research and Development 8,500,000 5,500,000 -General Expenses 804,592 4,229,327 Administrative Expenditure -Staff Costs 100,454,005 80,542,618 -General Expenses 48,045,631 48,888,067 ___________ ___________ 319,770,989 275,724,119 ----------------- ----------------- ___________ ___________ Operating Surplus for the year 13,318,552 9,052,383 Capital Costs Expenditure (12,882,589) (6,421,385) ___________ ___________ Operating Surplus After Capital Costs Expenditure 435,963 2,630,998 Overprovision for previous years' commitments 3,088,987 1,862,718 ___________ ___________ 3,524,950 4,493,716 Operating Deficit brought forward (18,433,388) (22,927,104) ___________ ___________ Operating Deficit carried forward (14,908,438) (18,433,388) ========== ========== Represented by: Recurrent Account Surplus/(Deficit) 11,497,670 (4,909,869) Capital Account Deficit (26,406,108) (13,523,519) ___________ ___________ (14,908,438) (18,433,388) ========== ==========