PAPER NO. FC 32/2021

Memorandum for the Finance Committee of

the Hong Kong Housing Authority

Audited Accounts of the Housing Authority

for the Year Ended 31 March 2021

PURPOSE

This paper informs Members of the Housing Authority (HA)’s

audited accounts for the year ended 31 March 2021.

BACKGROUND

2. Section 14(1) of the Housing Ordinance (Cap. 283) requires HA to

keep proper accounts and to prepare in respect of each financial year a statement

of accounts. Section 14(2) further requires that the accounts of HA be

submitted to the Director of Audit who shall audit the accounts and furnish a

report on them.

THE 2020/21 AUDITED ACCOUNTS

3. HA’s 2020/21 audited accounts at Annex have been prepared in

accordance with the requirements in Cap. 283, the Financial Arrangements

between HA and the Hong Kong Government and HA’s approved accounting

policies which are summarised in Notes 1 and 2 to the audited accounts.

4. On 10 September 2021, the Director of Audit certified HA’s 2020/21

accounts without any qualification and did not raise any management issue.

5. In accordance with Sections 14(3) and 14(4) of Cap. 283, the audited

accounts will be submitted to the Chief Executive and tabled at the Legislative

Council by the Secretary for Transport and Housing not later than

31 December 2021.

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CONSOLIDATED RESULTS

6. In June 2021, Members were advised of the provisional financial performance of HA for the year ended 31 March 2021 and the variances between the budgeted and provisional figures vide Paper No. FC 17/2021. The final consolidated results, as compared to the provisional financial performances, are tabulated below –

Summary of Consolidated Results 2019/20 2020/21

Actual Provisional Note 1 Final

$M $M $M

Consolidated Operating Account Surplus/(Deficit)

718 (i) Rental Housing (272) (259)

1,546 (ii) Commercial 780 781

11,002 (iii) Home Ownership Assistance 8,288 8,278

60 (iv) Net Non-operating Income 43 43

13,326 Consolidated Operating Account Surplus 8,839 8,843

996 Funds Management Account Surplus 5,077 5,077

43 Agency Account Surplus 42 42

14,365 Total Surplus before Appropriation 13,958 13,962

(773) Appropriation – Dividend to the Government

for the year

(390) (390)

13,592 Net Surplus after Appropriation 13,568 13,572

Capital Expenditure

16,538 (i) Construction Expenditure 18,954 18,950

651 (ii) Improvement Works 441 441

203 (iii) Computer Systems and Equipment,

Other Equipment and Motor Vehicles

204 204

17,392 19,599 19,595

55,882

Consolidated Cash and Investment Balance

as at year end 57,860 57,860

Note1 Being provisional figures reported in June 2021 vide Paper No. FC 17/2021, which

were subject to year-end and audit adjustments upon finalisation of the 2020/21 annual

accounts.

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Net Surplus after Appropriation

7. The final net surplus after appropriation of $13,572 million was slightly higher than the provisional surplus of $13,568 million, mainly due to adjustments on depreciation upon finalisation of the accounts.

Capital Expenditure

8. The final capital expenditure for the year ended 31 March 2021 amounted to $19,595 million, which was close to the provisional figure of

$19,599 million reported vide Paper No. FC 17/2021.

Consolidated Cash and Investment Balance

9. HA had a consolidated cash and investment balance of

$57,860 million as at 31 March 2021, which was the same as the provisional figure reported vide Paper No. FC 17/2021.

PUBLIC REACTION / PUBLICITY

10. Copies of the 2020/21 audited accounts will be distributed to members of HA and its Committees after tabling them at the Legislative Council. It will also be uploaded onto HA’s website. No further publicity is considered necessary.

DECLASSIFICATION

11. This paper will be declassified upon tabling of HA’s 2020/21 audited accounts at the Legislative Council. It will be made available to the public on HA’s website, the Department’s Library and through the Departmental Access to Information Officer after declassification.

INFORMATION

12. This paper is issued for Members’ information.

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Ms Michelle LAU

Secretary, Finance Committee

Tel. No.: 2761 7928

Fax No.: 2761 0019

File Ref. : HD(FIB)AS/RPT/01/20-21

(Corporate Services Division)

Date of Issue : 4 October 2021

Annex

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