| Union Financial Regulation (2006ECM3) |
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| Thursday, 17 April 2008 | |||||||||||||||||||||
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The Hong Kong University Students’ Union
The Financial Regulation of The Hong Kong University Students’ Union
(2006 REVISED) (Last revised in ECM3 2006)
I. GENERAL0. Definition (amended in CM6 1996) 1. Aim 2. Principles 3. Amendment
II. TERMS OF REFERENCE1. Union Honorary Treasurer 2. Union Financial Secretary 3. Finance Committee 4. Financial secretary of Union sub-organization (amended in CM6 1996) 5. (repealed in CM6 1996)
III. FUNDS1. Co-operative Store Fund 2. Jordan Memorial Information Centre Fund 3. Provident Fund (amended in CM7 1995) 4. Triennial Intervarsity Games Fund 5. Union Development Fund 6. Union Loan Fund 7. Union Presidential Loan Fund 8. Financial Regulation of Presidential Subsidies 9. Union Journal Fund 10. Education Fund 11. Academic Fund 12. China's Democracy Fund (amended in CM3 1996) 13. Publication Fund (amended in CM3 1996) 14. Union Central Reserve (appended in ECM3 2006) 15. Independent Clubs Association Fund (ICA Fund) (appended in ECM3 2006) 16. Sports Association Fund (SA Fund) (appended in ECM3 2006) 17. Cultural Association Fund (CA Fund) (appended in ECM3 2006) 18. Media Fund (appended in ECM3 2006) 19. Capital Investment Fund (CI Fund) (appended in ECM3 2006) 20. Investment Fund (appended in ECM3 2006)
IV. BUDGET SYSTEM (amended in CM4 2003)1. Policy 2. Responsibility and Decision Body 3. Course of Budget Adoption 4. Transaction before Union Budget Adoption 5. Union Budget Items 6. Budget Standards
V. ANNUAL FINANCIAL REPORT
VI. ASSET AND INVESTMENT1. Principle 2. Assets 3. Investment
VII. ACCOUNTING PROCEDURE1. Income 2. Expenditure 3. Certificate-in-lieu of Supplier's Receipt 4. Procedure 5. Time Control 6. Petty Cash 7. Stock and Equipment Record
VIII. REGULATIONS GOVERNING FUND RAISING FUNCTIONS (amended in CM6 1996)1. Definition 2. Control 3. Procedure
IX. REGULATIONS GOVERNING THE COMMERCIAL BOOTH CO-ORGANIZED BY THE ADMINISTRATIVE SECRETARY AND A UNION SUB-ORGANIZATION (amended in CM6 1996)1. Definition2. Control3. Procedure
X. COMPENSATION FOR LOSS OR DAMAGE OF UNION PROPERTIES (amended in CM6 1996)
XI. PENALTY FOR INFRINGEMENT OF THE FINANCIAL REGULATION (amended in CM6 1996)
XII. APPEAL (amended in CM6 1996)
APPENDICES
I. Summary to financial secretaries of Union sub-organizations (amended in CM6 1996) II. Guidelines on Education Fund (The part covering civic education) Guidelines for functions held by Union Executive Committee SECTION I GENERAL 0. Definition (amended in CM6 1996)In this Financial Regulation: “Financial Regulation” shall mean the Hong Kong University Students’ Union Financial Regulation; “Union” shall mean the Hong Kong University Students’ Union; “Union Council” shall mean the Council of the Union; “Finance Committee” shall mean the Union Finance Committee of the Union; “Financial Secretary” shall mean the Financial Secretary of the Union; “Union Executive Committee” shall mean the Executive Committee of the Union; “ICA” shall mean the Independent Clubs Association of the Union; “SA” shall mean the Sports Association of the Union.
1. Aim1.1. Financial Regulation govern all financial matters of the Union. (amended in CM6 1996) 1.2. Any matters concerned not stated in these regulations which are not controversial and not violating the principles in Article 2 of the same section should be decided by the Finance Committee and the Union Council reserves the right of final approval of the decision made by the Finance Committee.
2. Principles2.1. The primary function of holding our assets is to better serve the interest of Union members in money terms. The assets should be adjusted in such a way that it will generate a certain amount of income to meet our expenditure while on the other hand such income generating process would not eat into our asset position in real terms. 2.2. Basically the Union will have a non-deficit budget. In preparing the budget, the worthiness of the activities requiring money will be given primary consideration, of course bearing in mind the constraints set up by short term fixed income. 2.3. The proportion of the deficit, if necessary, should not be more than five percent of the whole budget. A deficit shall only be accepted provided the principles 2.1 and 2.2 above are not contradicted.
3. Amendment3.1. These regulations shall be amended or rescinded at any Union Council meeting with recommendation from the Finance Committee and the consent of two-thirds of those present voting. (amended in CM6 1996) 3.2. A notice intimating the proposed amendment of recession shall be sent five clear days before the meeting.
SECTION II TERMS OF REFERENCE1. Union Honorary Treasurer1.1. To be responsible for all Union Finance. 1.2. To advise the Union on all matters of finance.
2. Union Financial Secretary2.1. To assists the Honorary Treasurer in all matters of Union Finance. 2.2. To manage the financial transactions of the Union. 2.3. To keep proper books of account of the Union. 2.4. To be the ex-officio chairman of the Finance Committee. 2.5. To prepare the Union budget. 2.6. To exercise financial supervision over all Union sub-organizations. 2.7. To help the financial secretary of Union sub-organizations in all matters of finance. 2.8. To implement any resolutions as decided by the Union Council.
3. Finance Committee3.1. To advise Union Council on all matters of finance. (amended in CM6 1996) 3.2. To investigate and take action into matters of Union Finance. The main field of work shall be: 3.2.1. Management of Union income and expenditure; 3.2.2. Scrutiny of Annual Union Budget; 3.2.3. Scrutiny of Annual Audited Statement of the Union; 3.2.4. Approval and disapproval of fund raising activities; 3.2.5. Drafting of financial regulation; 3.2.6. Management of Union Loan Fund, Jordan Memorial Information Centre Fund, Presidential Loan Fund, Education Fund , Academic Fund, China's Democracy Fund and Publication Fund. (amended in CM6 1996) 3.2.7. Management of Contingencies of the Union. 3.3. To make regular reports to Union Council. (amended in CM6 1996)
4. Financial secretary of Union sub-organization4.1. To be responsible for all matters of finance of the Union sub-organization. (amended in CM6 1996) 4.2. To keep proper books of account of the Union sub-organization. (amended in CM6 1996) 4.3. To manage all transactions of the Union sub-organization. (amended in CM6 1996) 4.4. To prepare the budget and financial report in accordance with the Financial Regulation.
5. (repealed in CM6 1996)
SECTION III FUNDS1. Co-operative Store FundThe fund was established early in 1959 and after revisions in 1981, 1983, 1984, 1989, 1990, 1992, 1993 and 1994 the amount of the fund is $ 1,500,000. The purpose of the fund is to purchase stock for sales in co-operative store with the following regulations (amended in CM6 1996): 1.1. An imprest system is adopted in a sense that a constant amount of fund is always present. 1.2. Accounting entries: 1.2.1. All purchase should be debited to the purchase account Co-op Store and credited to the creditor account. 1.2.2. All sales should be debited to the cash account and credit to the sales account of Co-op Store. 1.2.3. Any balance in excess of or in short of the amount of this fund should be transferred to or from other funds. 1.3. The fund is represented by stock and cash balances. 1.4. The fund should be managed by the Student Welfare Secretary. (amended in CM6 1996) 2. Jordan Memorial Information Centre FundIn 1922, the Union (Hong Kong University Union at that time) received a sum of $10,000 from Sir Paul Chater for the establishment of same kind of memorial in the Union for Late Dr. G.P. Jordan. The Memorial which was set up was later moved to Union Building and the place later was converted to the Union co-opt. So the Fund remain idle in its account. (amended in CM6 1996)
The fund accumulated in 1982 is around $15,000.00 and in the same year, the Union Council had resolved that the fund be amended to Jordan Memorial Information Centre Fund instead of Jordan Memorial Library Fund and be used under the following regulations: 2.1. It shall be used for the purchase of equipment, books to set up and maintain the Jordan Memorial Information Centre. 2.2. Only the annual interest of the Fund can be used. This, together with an annual transfer of not more than $3,000.00 from the recurrent income of the Union shall be used for the purchase as listed in item (1). 2.3. The Current Affairs Committee is responsible for the collection of information and periodic replacement of books. (amended in CM6 1996)
3. Provident Fund (amended in CM7 1995)Provident Fund is composed of the staff members' subscription and the Union's contribution. 3.1. The subscription from the staff member shall be a sum equal to 5% of his or her salary, and to be deducted from his or her salary every month. 3.2. The Union's contribution shall be a sum equal to 13.5% of staff member‘s salary, payable every month in addition to his or her monthly subscription. 3.3. A trustee independent from the Union shall be employed to manage the administration and investment of the Fund. 3.4. The Union shall pay the remuneration for the services provided by the trustee concerning the Fund and all the other necessary administration cost incurred. 3.5. The Union Financial Secretary shall supervise the administration of the Fund. 3.6. When a staff member leaves, he or she shall obtain his or her share calculated on the basis of the total amount of the Fund at the time of his or her leaving. 3.7. When a staff member leaves within one year‘s service, he or she shall only obtain a portion in proportion to his or her of contribution in the total amount of the Fund, subject to item 3.6. 3.8. When a staff member leaves after one year‘s service, he or she shall obtain a portion as specified in item 3.7 in addition to a percentage of the Union’s contribution in proportion to his or her years‘ of services as stated in the following table. Completed Years of Service Vesting Percentage Less than 1 Nil 2 20% 3 30% 4 40% 5 50% 6 60% 7 70% 8 80% 9 90% 10 or more 100% 4. Triennial Intervarsity Games FundThe purpose of the fund is for the promotion and encouragement of the Triennial Intervarsity Games (T.I.G.). The sources of the fund including stocks come from: (a) The balance brought forward from the proceeding T.I.G.; (b) An annual transfer of not less than $10,000.00 from the recurrent income of the Union. The exact amount depends on the overall financial situation of the Union. The organizing committee of the T.I.G. of the Union shall be responsible for the management of the fund, under the supervision of the Finance Committee. (amended in CM6 1996)
5. Union Development Fund5.1. The fund should be used for the development of the Union which may include: 5.1.1. Capital investment which is beneficial to the functioning of the Union; 5.1.2. Construction or reconstruction, decoration and furnishing of the Union Building and Union managing areas; 5.1.3. Development or expansion of Union services; 5.1.4. Any other specific usage as decided by Union Council. (amended in CM6 1996) 5.2. The sources of the Fund include: 5.2.1. An annual transfer from the Union Budget which should not be less than 5% of the total recurrent income; (amended in CM15 1998) 5.2.2. Any donations specified for the development of the Union. 5.3. The usage of Union Development Fund should be approved by the Union Council with the recommendation of the Finance Committee. (amended in CM6 1996)
6. Union Loan FundIn 1981, a Council Loan Fund was set up by the Union for short term financial difficulties in sub-organizations. The amount of which was $50,000, transferred from the General Reserve Fund. Later that year, the Union Council had resolved that the name of the fund should be amended to Union Loan Fund. In the following year, the Union Council had resolved that the amount should be extended to $80,000 and the shortage of $30,000 was transferred from the I/E account. While $10,075 was written off in 1985, the Union Council had resolved in 1990 to extend the amount of the Loan Fund to $100,000 and the shortage of $30,075 was transferred from the I/E account. (amended in CM6 1996) 6.1. The purpose of the fund is to provide emergency loan to all Union sub-organizations and committee to deal with short term financial difficulties. 6.2. The outstanding amount of loan should not exceed $75,000 at any time. 6.3. The loan to Union sub-organization per function in any case should not be more than $10,000. (amended in CM6 1996) 6.4. The amount of the loan is subject to the discretion of the Finance Committee which will consider individual application under the following criteria: (amended in CM6 1996) 6.4.1. Necessity of the Union sub-organization for financial assistance; 6.4.2. Only the amount that the committee members consider that the Union sub-organization can have the capacity to return would be loaned. 6.5. The recipient Union sub-organization has to: (amended in CM6 1996) 6.5.1. Repay to the Union Loan Fund not less than half of the loan within six months, starting from the date of completion of the undertaking form; 6.5.2. Repay to the Union Loan Fund the remaining part of the loan within one year, starting from the date of completion of the undertaking form, unless with the written permission from the Finance Committee. 6.6. Each Union sub-organization of a loan shall be required to sign a form of undertaking to repay the loan in manner agreed in paragraph 6.5. (amended in CM6 1996) 6.7. The Chairman of the Union sub-organization should be the liaison person for whatever matters arise concerning the loan, between the Union sub-organization and the Union. (amended in CM6 1996)
7. Union Presidential Loan FundIn 1972, a loan fund of $25,000 was set up by the Union Council to provided financial assistance to the Presidents of the Union (namely the President, the Vice-President (Internal) and the Vice-President (External)). In 1984, a further $25,000 was transferred from the income of the Union to the fund. In viewing of the balance of 1985, a sum of $52,000 was accumulated. Also, with a large expansion in 1989, $20,000 was transferred to the fund from the surplus of that year. From it, interest-free loan will be made to Presidents. (amended in CM6 1996)
In 1990, 1991 and 1992, the Loan Fund was extended to $120,000, $142,000 and $200,000 by transferring $48,000, $22,000 and $58,000 from the surplus of the corresponding years. With some amendments in 1982, 1984, 1987, 1989 and 1992 by the Union Council, the regulations are as follows: 7.1. The maximum loan granted to a president per annum is equal to the maximum JCSF loan offered to a full-time undergraduate at that particular year. 7.2. The recipient of the loan may make repayment in one lump sum of instalments, but unless with the written permission from the Finance Committee, the repayment must be completed within two years from the date of graduation of termination of study for the recipient, whichsoever be earlier, or before any date the Finance Committee specifies otherwise. 7.3. If the Presidents proceed abroad to emigration or studies before the completion of repayment, he is to repay the unpaid amount of loan to the Union Presidential Loan Fund in one lump sum before leaving Hong Kong. (amended in CM6 1996) 7.4. In case of any change of address before the completion of repayment, the Presidents should notify the Financial Secretary. (amended in CM6 1996) 7.5. Application for loan shall be sent directly by individual president to the Finance Committee which will grant loan at her discretion. 7.6. Each recipient of a loan shall be required to sign a form undertaking to repay the loan in manner agreed in paragraph 7.3 & 7.4 above. 7.7. The Financial Secretary, at the beginning of his term, should review the current balance of the fund, making sure that enough fund is provided for the Presidents according to the standard of the JCSF each year. (amended in CM6 1996)
8. Financial Regulation of Presidential SubsidiesIn 1988, the Union Council decided to offer allowances to Presidents so as to subsidize their expense related to their posts. (amended in CM6 1996)
The scope and amount of subsidies should be proposed by Finance Committee annually and subject to the approval of Union Council, the subsidies will be derived from the recurrent income and offered in two instalments, one in January and the other in July.
9. Union Journal FundThe purpose of the fund is for the promotion and encouragement of the publication of the Union Journal. Sources of the fund include: 9.1. Any donation specified for the above purpose; 9.2. Surplus, if any, from the proceeding publication of the Union Journal; 9.3. An annual transfer of not less than $10,000 from the recurrent income of the Union. The exact amount depends on the overall financial situation of the Union. The editorial board of the Union Journal is responsible for the management of fund under the supervision of the Finance Committee. (amended in CM6 1996)
10. Education FundEducation Fund was established in 1992 on the termination of Liu Lit-for Education Fund, which had been established in 1986 with the generous donation by Mr. Liu Lit-for to Union. (amended in CM6 1996) 10.1. An initial amount of HK$75,027, the balance at end of 1991 of Liu Lit-for Education Fund; 10.1.1. Donations specified for this purpose; 10.1.2. Annual transfer from the Union Budget. 10.2. Aims: The aims of the Fund are to improve the education system of Hong Kong (especially the University of Hong Kong) and promote civic education activities in the University. 10.3. General Management: 10.3.1. The Fund shall not be used unless with the approval of the Finance Committee. (amended in CM6 1996) 10.3.2. A written notification should be sent to the applicants regardless of whether the Finance Committee has approved the application or not. (amended in CM3 1998) 10.3.3. The approved amount of fund shall not be transferred into the account of applicant unless the financial report has been received by the Finance Committee. (amended in CM 3 1998) 10.4. Applicants: All affiliated units of the Union, the Union Executive Committee, the Student Senators and Faculty Board student representatives are eligible to apply for subsidies. (amended in CM6 1996) 10.5. Criteria for granting subsidy: 10.5.1. Activities concerning teaching evaluation or university affairs shall be subsidized provided that the budgets are reasonable. These activities may include evaluations on teaching methods, teaching medium, course contents, curriculum structure, teaching environment, etc. 10.5.2. Supplementary courses like liberal studies organized for students of the University of Hong Kong with the purpose of providing an all-round education. (amended in CM6 1996) 10.5.3. Other activities of the following categories shall be eligible for subsides: 10.5.3.1. Review and improvement on HK education system; 10.5.3.2. Review and improvement on education system of the University of Hong Kong; 10.5.3.3. Promotion of civic education. (Please refer to Appendix II for guidelines on definition of civic education) 10.5.4. Except for activities jointly organized by the Union Central and Union sub-organization, the subsidies on activities as defined in 10.5.5. shall not exceed, in each application, 75% of the expected total expense. 10.6. Applications: 10.6.1. Applicants should submit to the Finance Committee a proposed programme together with a budget including all relevant incomes and expenditures. (amended in CM6 1996) 10.6.2. Applicants should submit an audited financial report to the Finance Committee, HKUSU within 4 weeks after the completion of the activities. 10.7. Termination: A notice of termination shall be made one year in advance should the Union Council decide to terminate the Fund.
11. Academic Fund11.1. General: It is fund accumulated from the sponsorship of the external organizations under the adopted policy for the promotion of external organization. 11.2. Aims: It is to encourage the Union sub-organizations to organize activities of its same nature and to promote academic atmosphere in the University of Hong Kong. (amended in CM6 1996) 11.3. Applicants: All Union sub-organizations and the Union Central are eligible to apply for subsidies. (amended in CM6 1996) 11.4. Criteria for granting subsidy: 11.4.1. Activities involving the promotion of related academic subjects shall be eligible for subsides. 11.4.2. Every subsidy should not exceed $5,000. 11.4.3. Only programmes, considered by the Finance Committee, which are effective in bringing message to the student body will be granted. 11.5. Applications: 11.5.1. Applicants should submit to the Finance Committee a proposed programme together with a budget including all relevant incomes and expenditures. (amended in CM6 1996) 11.5.2. Applicants should submit an audited financial report to the Finance Committee within 4 weeks after the completion of the activities. (amended in CM6 1996) 11.6. General Management: 11.6.1. The Fund should be under the supervision of the Finance Committee and deposited with the saving account of the Union. (amended in CM6 1996) 11.6.2. The Fund shall not be used unless with the approval of the Finance Committee. (amended in CM6 1996) 11.6.3. (repealed in CM5 2001) 11.6.4. A minimum reserve of $20,000 excluding the expenses for a year shall be maintained by either subsides by the Union or sponsored by external organizations. (amended in CM6 1996) 11.6.5. The maximum reserve of the fund should be $200,000. Any amount exceeding $200,000 should be credited in the I/E account. (amended in CM3 1997) 11.6.6. A written notification should be sent to the applicants regardless of whether the Finance Committee has approved the application or not. (amended in CM3 1998) 11.6.7. The approved amount of fund shall not be transferred into the account of applicant unless the financial report has been received by the Finance Committee. (amended in CM 3 1998) 11.6.8. Termination: A notice of termination shall be made one year in advance should the Union Council decide to terminate the fund.
12. China's Democracy Fund12.1. General: This fund was raised in 1989 around the period of June 4 massacre, with the purpose of supporting the reformers and the student movement for democracy in China. The fund consists of an initial amount of $260,494.70 and other donations specified for the purpose. (amended in CM6 1996) 12.2. Aim: To promote the importance of China's Democracy. 12.3. General Management: The fund shall be managed by the Finance Committee. (amended in CM6 1996) 12.4. Applicants: All affiliated units of the Union shall be eligible to apply for this fund. (amended in CM6 1996) 12.5. Criteria: 12.5.1. Activities to support the democratic movement in China. 12.5.2. Activities to promote the understanding of China's political development among secondary school students in Hong Kong. 12.6. Applications: 12.6.1. All applications shall be submitted to the Finance Committee at least 4 weeks before commencement. Each application shall include a proposed programme, target groups, a budget and the person-in charge of the function. (amended in CM6 1996) 12.6.2. Reports, with audited financial statements, shall be submitted to the Committee within 4 weeks of the completion of the activities.
13. Publication Fund (amended in ECM2 1994)13.1. Aim: It is to encourage the Union Members to express and share with other students their views on any matter. 13.2. Applicants: All the Union Members are eligible to apply for the subsidies. 13.3. Requirements for granting subsidy: 13.3.1. no commercial advertisement should be included in the publication. 13.3.2. no promotion of the activities of the Union sub-organizations is allowed in the publication. 13.3.3. each printing should have at least 800 copies. 13.3.4. it should not be a publication of the Union sub-organizations. 13.3.5. it should not be for sale. 13.3.6. the publication should acknowledge the HKUSU Publication Fund. 13.3.7. the following statement must be included in the publication: i) this publication is sponsored by the Publication Fund, HKUSU; ii) the contents of this publication do not represent the views of the Union. (amended in CM6 1996) 13.3.8. the names and university number of editorial board members should be printed on the publication. 13.3.9. it should not be the item of Budget of the Union or sub-organization. 13.4. Application method: Application accompanied by the original printing should be submitted to the Finance Committee before issuing. 13.5. General Management 13.5.1. The Fund should be under the supervision of the Finance Committee and deposited with the saving account of the Union. (amended in CM6 1996) 13.5.2. The Fund should not be used without the approval of the Finance Committee. (amended in CM6 1996) 13.5.3. The minimum reserve in the Fund should be $3,000. (amended in CM6 1996) 13.5.4. The amount of granting should not exceed $35,000 each year. 13.6. Granting subsidies 13.6.1. The maximum amount of subsidies to each publication is $2,000. 13.6.2. The subsidy depends on the number of copies and expenditure on it, Amount of the expenditure Subsidy percentage $ 300 60% $ 600 70% $ 900 75% $1200 or above 80% OR $1 per copy of publication. (All publication should be calculated by using offset.) The amount of subsidy will be the smaller amount calculated by the amount subsidy or the per copy approaches. 13.6.3. There is no subsidy for this publication whose contents are: i) disclosing one's private life ii) using obscene language and pictures iii) personal attack iv) untruthful or defamatory
14. Union Central Reserve (appended in ECM3 2006)The Reserve was established in 2006 as a buffering fund for the Budget System revised that year with an aim to provide comparatively stable subsidies generally unaffected by outside economic environment to sub-organizations each year through reducing the susceptibility of the Union financial position to short-to-mid term economics travail of Hong Kong.
Sources of the reserve include: 14.1. Any donation specified for the general development of student activities.14.2. An annual transfer of an amount specified by the “Financial Resources Allocation Method” (FRAM).General Management and Operations: 14.3. The Reserve shall be invested in an investment fund with a low volatility managed by an investment company or a bank.14.4. The investment company or bank should submit monthly report regarding the performance of the fund, and the Finance Committee should study the report closely and report to the Council of any important details which may affect the effective operation of the Reserve materially.14.5. An annual transfer from the Reserve to Independent Clubs Association Fund, Sports Association Fund, Cultural Association Fund, and Media Fund shall be made at the discretion of the Finance Committee in accordance with FRAM.14.6. The balance of the Reserve shall, in any time, not exceed $2,500,000 (base value in 2006) adjusted by the year-on-year percentage change in Consumer Price Index (A) of Hong Kong in February from the Census and Statistics Department, HKSAR according to the following formula:
Newly adjusted Amount this year = Amount adjusted in the previous year x [1+ year-on-year percentage change in Consumer Price Index (A) (Feb)]Any surplus in excess of the adjusted amount shall be transferred to the Global Balanced Fund in a manner which maintains the overall capital structure of the Union stipulated in FRAM.
14.7. The Financial Secretary shall keep a book of records tracking the adjusted amount and the year-on-year percentage change in Consumer Price Index (A) (FEB) each year.The newly adjusted amount shall be checked for accuracy every five years by the Finance Committee from the book record of the amount five years ago according to the following formula:Newly adjusted Amount this year = Amount in book five years ago x [1+ year-on- year percentage change in Consumer Price Index (A) (FEB) four years ago (CPI%4)] x [1+ CPI%3] x [1+ CPI%2]x [1+ CPI% THIS YEAR]**The historical year-on-year percentage change in Consumer Price Index (A) (FEB) shall be obtained from the Census and Statistics Department directly
15. Independent Clubs Association Fund (ICA Fund) (appended in ECM3 2006)The ICA Fund was a virtual fund under the Union Central Reserve established to provide subsidy to ICA clubs according to FRAM.
Sources of the reserve include: 15.1. An annual transfer of an amount specified by the “Financial Resources Allocation Method” (FRAM)15.2. Any donation specified for the general development of ICA clubsApplicants: 15.3. All ICA clubs are eligible to apply for subsidies.Criteria: 15.4. Activities in accord with the nature of the applying club shall be eligible.15.5. General Expenses of the club shall be eligible.Operation of the Fund: 15.6. ICA clubs applying for subsidies shall submit their annual budget and their year plan to the ICA Council within one month after the adoption of the Union Annual Budget.15.7. The amount of subsidy granted to each ICA club shall be determined by the ICA Council and approved by the Finance Committee.15.8. The ICA Council, after being informed by the Finance Committee, should be responsible for sending written notifications to the applicants regardless of whether the Finance Committee has approved the application or not.15.9. Any ICA club objects against the amount of subsidy granted can appeal to the Union Council Chairman if there are strong reasons to support the claim.It is the sole discretion of the Union Council Chairman to refer the case, either to the Finance Committee for reconsideration or the Union Council for the final decision, or to reject the requisition of the club altogether.Should the amount approved by the Union Council be greater than the original amount, the extra amount shall be covered by first the balance remained in the ICA Fund and second the funding for contingency in the Union Annual Budget.Should the amount approved by the Finance Committee after reconsideration be greater than the original amount, the extra amount shall be covered only by the balance remained in the ICA Fund.
15.10. Transfer of a portion of the approved amount to the applicant account shall be made according to the approved budget of the club after the submission of the financial report of the budget item related and the function’s report.
16. Sports Association Fund (SA Fund) (appended in ECM3 2006)The SA Fund was a virtual fund under the Union Central Reserve established to provide subsidy to SA clubs according to FRAM.
Sources of the reserve include: 16.1. An annual transfer of an amount specified by the “Financial Resources Allocation Method” (FRAM)16.2. Any donation specified for the general development of SA clubsApplicants: 16.3. All SA clubs are eligible to apply for subsidies.Criteria: 16.4. Activities in accord with the nature of the applying club shall be eligible.16.5. General Expenses of the club shall be eligible.Operation of the Fund: 16.6. SA clubs applying for subsidies shall submit their annual budget and their year plan to the SA Council within one month after the adoption of the Union Annual Budget.16.7. The amount of subsidy granted to each SA club shall be determined by the SA Council and approved by the Finance Committee.16.8. The SA Council, after being informed by the Finance Committee, should be responsible for sending written notifications to the applicants regardless of whether the Finance Committee has approved the application or not.16.9. Any SA club objects against the amount of subsidy granted can appeal to the Union Council Chairman if there are strong reasons to support the claim.It is the sole discretion of the Union Council Chairman to refer the case, either to the Finance Committee for reconsideration or the Union Council for the final decision, or to reject the requisition of the club altogether.Should the amount approved by the Union Council be greater than the original amount, the extra amount shall be covered by first the balance remained in the SA Fund and second the funding for contingency in the Union Annual Budget.Should the amount approved by the Finance Committee after reconsideration be greater than the original amount, the extra amount shall be covered only by the balance remained in the SA Fund.
16.10. Transfer of a portion of the approved amount to the applicant account shall be made according to the approved budget of the club after the submission of the financial report of the budget item related and the function’s report.
17. Cultural Association Fund (CA Fund) (appended in ECM3 2006)The CA Fund was a virtual fund under the Union Central Reserve established to provide subsidy to CA clubs according to FRAM.
Sources of the reserve include: 17.1. An annual transfer of an amount specified by the “Financial Resources Allocation Method” (FRAM)17.2. Any donation specified for the general development of CA clubsApplicants: 17.3. All CA clubs are eligible to apply for subsidies.Criteria: 17.4. Activities in accord with the nature of the applying club shall be eligible.17.5. General Expenses of the club shall be eligible.Operation of the Fund: 17.6. CA clubs applying for subsidies shall submit their annual budget and their year plan to the CA Council within one month after the adoption of the Union Annual Budget.17.7. The amount of subsidy granted to each CA club shall be determined by the CA Council and approved by the Finance Committee.17.8. The CA Council, after being informed by the Finance Committee, should be responsible for sending written notifications to the applicants regardless of whether the Finance Committee has approved the application or not.17.9. Any CA club objects against the amount of subsidy granted can appeal to the Union Council Chairman if there are strong reasons to support the claim.It is the sole discretion of the Union Council Chairman to refer the case, either to the Finance Committee for reconsideration or the Union Council for the final decision, or to reject the requisition of the club altogether.Should the amount approved by the Union Council be greater than the original amount, the extra amount shall be covered by first the balance remained in the CA Fund and second the funding for contingency in the Union Annual Budget.Should the amount approved by the Finance Committee after reconsideration be greater than the original amount, the extra amount shall be covered only by the balance remained in the CA Fund.
17.10. Transfer of a portion of the approved amount to the applicant account shall be made according to the approved budget of the club after the submission of the financial report of the budget item related and the function’s report.
18. Media Fund (appended in ECM3 2006)The Media Fund was a virtual fund under the Union Central Reserve established to provide subsidy to Undergrad and Campus TV according to FRAM.
Sources of the reserve include: 18.1. An annual transfer of an amount specified by the “Financial Resources Allocation Method” (FRAM)18.2. Any donation specified for Campus Media development.Applicants: 18.3. Undergrad and Campus TV are eligible to apply for subsidies.Criteria: 18.4. Activities in accord with the nature of Undergrad and Campus TV shall be eligible.18.5. General Expenses of Undergrad and Campus TV shall be eligible.Operation of the Fund: 18.6. Undergrad and Campus TV shall submit their annual budget and their year plan to the Union Council within one month after the adoption of the Union Annual Budget.18.7. The amount of subsidy granted to Undergrad and Campus TV shall be a proportion in the Media Fund determined by the Council as recommended by the Finance Committee.18.8. Transfer of a portion of the approved amount to the applicant account shall be made according to the approved budget of Undergrad or Campus TV after the submission of the financial report of the budget item related and the function’s report.
19. Capital Investment Fund (CI Fund) (appended in ECM3 2006)The Fund was established in 2006 to finance the cost to acquire capital asset of the Union for its sub-organizations
Sources of the reserve include: 19.1. Any donation specified for the capital investment of the Union.19.2. An annual transfer of an amount that replenishes the fund back to an amount equivalent to its initial value (an amount with an equivalent buying power of $200,000HKD in 2006)
Newly adjusted Amount this year = Amount adjusted in the previous year x [1+ year-on-year percentage change in Consumer Price Index (A) (FEB)]
Applicants 19.3. All affiliated sib-organizations.Criteria: 19.4. Capital assets required by corresponding clubs or societies shall be eligible.General Management: 19.5. The Fund shall be invested in an investment fund with a low volatility managed by an investment company or a bank.19.6. The investment company or bank should submit monthly report regarding the performance of the fund, and the Finance Committee should study the report closely and report to the Council of any important details which may affect the effective operation of the Reserve materially.19.7. The balance of the Fund shall, in any time, not exceed $200,000 adjusted by the year-on-year percentage change in Consumer Price Index (A) of Hong Kong in February from the Census and Statistics Department according to the following formula:Newly adjusted Amount this year = Amount adjusted in the previous year x [1+ year-on-year percentage change in Consumer Price Index (A) (FEB)]Any surplus in excess of the adjusted amount shall be transferred to the Global Balanced Fund in a manner which maintains the overall capital structure of the Union stipulated in FRAM.
19.8. The Financial Secretary shall keep a book of records tracking the adjusted amount and the year-on-year percentage change in Consumer Price Index (A) (FEB) each year.The newly adjusted amount shall be checked for accuracy every five years by the Finance Committee from the book record of the amount five years ago according to the following formula:Newly adjusted Amount this year = Amount in book five years ago x [1+ year-on- year percentage change in Consumer Price Index (A) (FEB) four years ago (CPI%4)] x [1+ CPI%3] x [1+ CPI%2]x [1+ CPI% THIS YEAR]**The historical year-on-year percentage change in Consumer Price Index (A) (FEB) shall be obtained from the Census and Statistics Department directly.
19.9. The ownership of the asset(s) purchased shall belong to the Students’ Union, whilst the administrative rights shall or shall not be granted to the applying sub-organizations as determined by the Finance Committee depending on the utilitarian value of the asset(s).19.10. All applications shall be submitted to the Finance Committee explaining the reason(s) for acquiring the asset(s) and the Finance Committee shall review the applications according to the needs of the applying societies AND the overall benefits that the asset(s) will bring to other Union sub-organizations IF the asset(s) is/are owned and kept by the Union.19.11. The grant to each society or club per annum shall not exceed the amount stipulated by the following rules:
Maximum grant to each sub-organization $4,000ea Maximum total grant to all Sports Clubs $100,000 Maximum total grant to all ICA Clubs $50,000 Maximum total grant to all CA Clubs $50,000 Maximum total grant to all Hall Students Associations $20,000 Maximum total grant to all Faculty and Academic Societies $20,000
20. Investment Fund (appended in ECM3 2006)To make provision for the establishment and management of an investment fund of the Union
20.1. There shall be established a fund to be called "the Investment Fund" which shall be managed by a bank or other financial institutions under the control of the Honorary Treasurer as advised by the Financial Secretary and shall be used primarily for such purposes as the Financial Secretary thinks fit maintaining the overall financial position of the Union.
(1A) In addition to using the Fund for its primary purpose, the Honorary Treasurer as advised by the Financial Secretary may, with a view to finance development of the Union and meet arising liability, use the Fund as he thinks fit to provide emergency funding to the Union.(1B) The Honorary Treasurer, in using the Fund for the purpose specified in subsection (1A), shall have regard to the primary purpose of the Fund.
20.2. The management fee of Fund shall be paid by the Fund itself.20.3. Where the Honorary Treasurer as advised by the Financial Secretary is satisfied that such transfer is not likely to affect adversely his ability to fulfill any purpose for which the Investment Fund is required to be or may be used under section 20(1) or (1A), he may, after consulting the Finance Committee, and with the prior approval of the Council, transfer from the Fund to the Union Central Reserve a sum stipulated by FRAM.
SECTION IV BUDGET SYSTEM1. Policy1.1. The term fiscal year shall mean the period from January 1 to December 31 of the same year, while the term financial session shall mean the official term of every executive committee of the Union sub-organization holding their office. (amended in CM6 1996) 1.2. In general the Union will try to provide money to implement the policies of the Union Executive Committee, Union Council, Undergrad, Campus TV and for Union affiliated sub-organizations to help carrying out its characteristic activities. No money will be provided for personal purpose. (amended in CM6 1996) 1.3. Items in the budget are strictly non-transferable except by Finance Committee's recommendation and approval of the Union Council. (amended in CM6 1996) 1.4. Funding/ Subsidy in excess of the budget provision shall ONLY be granted at the discretion of the Finance Committee by applying to the contingencies. 1.5. Budget for any given session is designed to cover expense incurred during that session irrespective of when the actual payment has been made. 2. Responsibility and Decision Body2.1. The SA, CA, ICA Union Central Executive Committee should be responsible for their budget items. 2.2. The Union Council should be responsible for the approval and revision of the Union Budget based on overall financial consideration. 2.3. Any problem that is the responsibility of a different level of decision body will be referred back to that decision body during the course of budget adoption.
3. Budget Format 3.1. The Union Budget shall be in the form of an income statement. 3.2. The budget shall normally include the following items under different headings: 3.2.1. Income: 3.2.1.1. Subscriptions and fees 3.2.1.2. Gain in Members’ services 3.2.1.3. Interest on bank deposits 3.2.1.4. Estimated Investment Income 3.2.2. Expenditure: 3.2.2.1. Staff costs 3.2.2.2. Utility charges 3.2.2.3. Administrative expenses 3.2.2.4. Audit fee 3.2.2.5. Subsidies to presidents 3.2.2.6. Council and Central Executive Committees 3.2.2.7. Subscription to Hong Kong Federation of Students 3.2.2.8. Contingencies expenses A current provision will be made for contingencies, to meet both recurrent and capital requirements, of about 5% of the total budget income: 3.2.2.8.1. The Contingencies account will act as a reservoir for the financial system and is designed to cover any necessary unforeseen emergency; 3.2.2.8.2. It will be under the direct control of the Financial Committee. It can be applied by all Union sub-organization and all application must be scrutinized and approved by the Finance Committee 3.2.2.9. Repair and Renewal of Union Properties 3.2.2.10. Loss in Members’ services The item shall be calculated on the basis of the average annual cost to up-keep and maintain the Union Properties. (Other than items under the control of individual clubs and sub-organizations) 3.3. Operating Deficit 3.4. Transfer to Specific Funds 3.5. A transfer of not less than 5% of recurrent income shall be made to Union Development Fund. (amended in CM15 1998) 3.6. A transfer of not more than $3,000 from recurrent income of the Union to the Jordan Memorial Information Centre Fund. 3.7. Transfer of not less than $10,000 from the recurrent income of the Union to the Triennial Intervarsity Games Fund. 3.8. Transfers to Union Journal Fund, Education Fund, Academic Fund and Capital Investment Fund amounts of them shall be based on their regulations and decided by the Union Council. 3.9. Transfers to Union Central Reserve, SA Fund, CA Fund, ICA Fund, and Campus Media Fund shall be in accordance with FRAM. (appended in ECM3 2006) 3.10. Deficit for the Year 3.11. Any other items deemed necessary by the Union Council
4. Course of Budget Adoption4.1. Estimated Union Budget 4.1.1. At the beginning of each Financial Year, the Financial Secretary shall estimate according to historical information, the advice from the Honorary Treasurer, the opinions from related parties (e.g. Union Executive Committee) or calculate according to the computation method specified the amounts of each items in the Budget and propose to the Union Council the Estimated Union Budget for adoption after considering the financial situation of the Union and the policy of the Union Executive Committee . 4.1.2. After the adoption of Estimated Union Budget, the Union, SA, CA, and ICA Central Executive Committee should have resolved their budget items, which should be consistent with the Estimated Union Budget. 4.2. Union Budget 4.2.1. The Financial Secretary, after reconsidering the actual financial situation and the opinion of the Union Council, should propose to the Union Council the Union Budget for adoption. 4.2.2. The Union Budget should be made based on the Estimated Union Budget.
5. Budget Standards5.1. Principle 5.1.1. Owing to the limited income of the Union, drastic cuts to Union subsidy are sometimes inevitable. If an item is cut, it does not mean that the Union Council considers it unnecessary, but rather that the Union cannot afford it. Cuts will be made (if necessary) by reference to the overall request. (amended in CM6 1996) 5.1.2. Every budget drafted by Union sub-organizations should include all sources of estimated income other than expected Union subsidy. 5.1.3. Reserve Fund of sub-organizations will be taken into account when considering their budgets. 5.1.4. Preference will be given to indispensable items. 5.1.5. Budget requests under "miscellaneous" must be itemized. 5.1.6. Sub-organizations should follow the budget standards of respective bodies (ICA, SA). 5.2. Budget Standards adopted for ICA (maximum) 5.2.1. The size of a club is determined by the number of members possessed by the club. The amount of subsidy will be governed by the size of the club.
5.2.2. Maximum subsidy for individual items. 5.2.2.1. Stationery and postage. It includes: i) stationery for general use and activities / functions organized (An additional "Stationery" item for special functions will not be allowed unless absolutely necessary); ii) postage in local correspondence; iii) preparation of bulletin (amended in CM3 2003) Maximum subsidy depends on the size of the club / society:
5.2.2.2. Publication It includes: i) publication of the periodicals for members, ii) publication of data subsidy depends on the size of the club / society:
OR $1.5 per copy of publication The amount of subsidy will be the smaller one calculated by using per publication or per copy approaches. (amended in CM3 2003) 5.2.2.3. Annual Journal (amended in CM3 2003) The subsidy includes publication and local postage of the annual journal. Maximum subsidy is $2000 5.2.2.4. Reference material (amended in CM3 2003) This subsidy is ONLY for material that is vital to the proper functioning of a club / society. It includes: i) photocopy of material; ii) cost of periodicals that are vital to the functioning of the club/society and cannot be borrowed or photocopied or its usefulness and availability is related to time. 5.2.2.5. Transportation Subsidy for following two purposes only a) for materials, the maximum subsidy is $100.00 per function
b) for
pre-trip, within Hong Kong, the
maximum subsidy is ii. $48 per function c) for pre-trip, outside Hong Kong and within Shenzhen, the maximum subsidy is i. $24 per person, OR ii. $96 per function d) for pre-trip, outside Hong Kong and Shenzhen, the maximum subsidy is i. $150 per person OR ii. $600 per function The amount of subsidy will be the smaller one calculated by using per person or per function approaches. e) Any function that generates expected net income has no subsidy on transportation (amended in CM3 2003) 5.2.2.6. Souvenir (amended in CM3 2003) Souvenir is for: i) guest speakers or moderators of talks, ii) winners of open competitions, iii) judges of open competitions, iv) advisors, patrons and honorary presidents of a club/society, v) guests, performers of large functions or annual performance, maximum subsidy is $20 each souvenir, $300 for souvenirs in a function. 5.2.2.7. Refreshment (amended in CM3 2003) a) This subsidy is for i) guest speakers of talks ii) judges of open competitions iii) guest performers of large or annual performance b) The maximum subsidy is $7 per person; the maximum subsidy is $70 per function, the amount subsidized will be calculated with the smaller sum c) Meeting – nil 5.2.2.8. Tuition/Coaches Fee (amended in CM3 2003) i) The subsidy is for courses that require certain experts. ii) The maximum subsidy will be $5,000 per fiscal year for each club/society or the one-third of the amount needed. The amount of subsidy will be the smaller amount calculated. iii) The information (e.g. experience, certificate, cost, etc.) of three candidates of tutors /coaches should be submitted to the ICA Finance Committee for reference unless upon the approval of the ICA Finance Committee or any other higher authority. 5.2.2.9. Affiliation Fee, Registration Fee (amended in CM3 1996) i) Full subsidies will be given to those fees that are not exceeding $1,100. As for those fees exceeding $1,100. Subsidy can either be $1,100, or one-third of the total amount. ii) The subsidy is ONLY for those fees that is vital to the proper functioning of a club/society. 5.3. Budget standards adopted for SA (maximum) 5.3.1. Stationery, postage and photocopy (amended in CM3 1996) 5.3.2. Refreshment for i. U team members participating for open league matches or friendly matches. max $6.00 per head (max $120) (amended in CM4 1997) 2 bottles of distilled water per person. Maximum subsidy is $7.2 per person, $144 per function, taking the smaller amount.(amended in CM4 1997) ii. Friendly matches in which the University of Hong Kong as host for visiting team players and judges 1 bottle of distilled water per person maximum subsidy is $3.6 per person, $72 per function, taking the smaller amount. (amended in CM4 1997) iii. meeting NIL Vouchers submitted must specify the number of persons attending the function. (amended in CM4 1997) 5.3.3. Souvenir to patron/vice-patron $25 per head (restricted to those who have subsidy for the club) 5.3.4. Souvenir to outside helpers (i.e. non-Union or University staff members and visiting teams), for individual/group $25 each (amended in CM3 1996) 5.3.5. Subsidy for laundry Nil 5.3.6. Subsidy to prizes not exceeding $10.00 per prize in all competitions. (Excluding the individual championship and runners-up in the Annual Athletic Meet and Aquatic Meet.) For change in mould design, no subsidy will be given. (amended in CM3 1997) 5.3.7. Subsidy to fees: 1. Affiliation & Registration fees for clubs $ 1,100 each 2. Competition entrance fees for teams $ 1,100 each Full subsidies will be given to those fees that are not exceeding $1,100. As for those fees exceeding $1,100, subsidy can either be $1,100 or one-third of the total amount. (amended in CM3 1996) 5.3.8. For coach/tuition fees: Subsidy of one-third of the amounts, or the balance of the total amount and other subsidies, whichever is less, are given to all clubs. 5.3.9. The Union subsidizes balls and shuttlecocks at minimum regulation requirement for inter-hall and inter-faculty matches, representatives matches and University-team practice. (amended in CM6 1996) 5.4. Budget standard adopted for estimation of item staff salaries and superannuation 5.4.1. The same method of salary adjustment for all Union staff should be adopted (Refer to Staff Regulations) 5.4.2. The budget item staff salaries and superannuation includes the staff of Union Office and information centre. For the staff of Co-operative Store and Photocopying Centre, this item is separately stated in the Co-operative & Photocopying Centre accounts perceptively. 5.4.3. Twice salary adjustment are made in January 1. (amended in CM3 1998) 5.4.4. A bonus is allowed in January and the method of a follows: i) The addition of no more than three increment points will be entitled to every employee according to the point system in the staff regulations. (amended in CM3 1998) ii) The amount adjusted for every staff should be proposed by the Union Executive Committee of the previous Union Session in view of the job performance of the staff. (amended in CM6 1996) 5.4.5. An overall salary adjustment in percentage is also allowed in January so as to beat the inflation rate under the constraint of the Union Budget. The percentage should be proposed by the Union Executive Committee of the previous Union Session. Any changes in this percentage can be made by the present Union Executive Committee provided that the Union Council is informed and the budget item is not in excess. (amended in CM3 1998)
SECTION V ANNUAL FINANCIAL REPORT (amended in CM6 1996)1. The audited Statement of Account and Balance Sheet of the Financial Year of the previous Union Session shall be submitted to the Union Council for adoption. The audited statement shall be scrutinized by the Finance Committee, and if any Union Committee or sub-organization incurs expenditure not covered by the approved estimates of expenditures as stated in the Budget, then the members of the Committee or the officers of the Union sub-organization concerned shall be jointly responsible for the debt, unless the Union Council approves otherwise. 2. At the close of each financial session, each Union sub-organization shall submit a financial report to the Financial Secretary showing all its transactions for the session, together with such vouchers and explanations as the Finance Committee may require. The Union sub-organizations of the Faculty Societies, ICA and SA shall submit their reports to their respective Councils' finance committees, then these finance committees shall submit the reports to the Finance Committee. (amended in CM4 2003)
SECTION VI ASSET AND INVESTMENT1. Principle 1.1. All properties bought by the money of the Union are properties of the Union. 1.2. All purchase of equipment will be regarded as revenue expenditure except those under the description of 2.4.1 of this section. 1.3. Union Properties may be entrusted to Union sub-organizations. 2. Assets 2.1. Assets of the Union mainly consists of fixed assets such as Union possessed accessories in the Union Headquarters, and financial assets in the form of securities, bank deposit, etc. 2.2. The Administrative Secretary of the Union is responsible for the proper maintenance of the fixed assets mentioned in 2.1 above. 2.3. The financial assets are responsible by the Finance Committee that will review the investment portfolio accordingly. 2.4. Depreciation: 2.4.1. All fixed assets of an amount greater than $10,000 are subject to depreciation; 2.4.2. Depreciation should be charged as recurrent expenditure to the income and expenditure account; 2.4.3. Depreciation should follow the straight-line basis; 2.4.4. The rate of depreciation should be determined by the Administrative Secretary. 3. Investment 3.1. Investment should be made so that the value of our financial asset will not decrease in real terms. 3.2. Investment of the Union should aim at both capital gain and interest income.
SECTION VII ACCOUNTING PROCEDURE1. Banking Account All banking account of the HKUSU and its sub-organizations must be opened at the Hongkong and Shanghai Banking Corporation Limited unless the Finance Committee approves the otherwise. (amended in CM2 1998)
2. Income Sources of Income: 2.1. The main sources of Union income include: Union subscription, new membership fees, interests and dividends, profits from photocopying machines, Co-op and printing section. 2.2. All income from fund-raising activities (including Annual Ball, Book Exhibition, etc.). 2.3. The subscription fees received for the year shall be deferred to the budget of next year.
3. Expenditure 3.1. All expenditures must be supported by relevant documentary evidence e.g. invoices, receipts. Expenditures not supported by relevant documents will not be reimbursed unless certified by relevant office bearers. (refer to article 3 of the same section) 3.2. No transaction shall be declared valid unless with the dual approval of the Honorary Treasurer and the Financial Secretary. 3.3. All transactions must be certified by relevant vouchers. 3.3.1. A-Form-- Payment against invoice or befit note; 3.3.2. B-Form-- Reimbursement against receipt invoice (or other the acceptable evidence of expenditure); 3.3.3. C-Form-- Application of cash in advance (no more than 25% of particular item); 3.3.4. D-Form-- Accounts for expenditure against C-Form; 3.3.5. E-Form-- Payment / Refund to the Union. (amended in CM6 1996) 3.4. All vouchers drawn must be filled in and signed by the Financial Secretary of the sub-organization concerned. 3.5. Vouchers drawn for publications must be accompanied by a copy of the publication for Finance Committee record. 3.6. Purchase against equipments shall be certified by the ICA financial secretary or the Chairman of SA Equipment Committee, as received into stock and their certificate shall be attached to the A, B, or D Forms. (amended in CM6 1996)
4. Certificate-in-Lieu of Suppliers' receipt 4.1. This form is only to be used when a lack of receipt is inevitable. 4.2. No Cert-in-Lieu may be submitted for purchase of $200 or more without the approval of the Finance Committee. 4.3. Subsidy for transportation reimbursed by a cert-in-Lieu should be itemized with dates clearly shown.
5. Procedure 5.1. All vouchers drawn must be submitted to the Financial Secretary for approval before submitted to the Honorary Treasurer for payment. 5.2. A payment advice will be sent to the payee at the issue of a cheque if payment is approved. Payment can only be made within six months of the issue of the cheque. 5.3. An official receipt will be issued by the Honorary Treasurer when payment to Union is received. The Honorary Treasurer may delegate this responsibility to the Financial Secretary, Office Manager or Accounting Assistant.
6. Time Control 6.1. The date of submission of vouchers and payment advice must not exceed 3 months of the date of purchase or date of expenditure. 6.2. Refunds to the Union against D-Form must be within 2 months of C-Form drawings. 6.3. No further voucher against the budget concerned will be accepted by the Financial Secretary until all D-Form due have been received. 6.4. Expenditure against budget must be requested by vouchers to the Financial Secretary as soon as possible and in any event not later than December 31 of the year. Written notification must be given to the Financial Secretary not later than December 31 of the current year if outstanding order for which invoices has not been received. The same applied to any outstanding debtor, that is , any not yet received by the end of the year. (amended in CM6 1996)
7. Petty Cash 7.1. A separated petty cash book will kept for record purpose. 7.2. A sum of $3,000.00 shall be kept at the Union Office by the book-keeper for petty expenditure. 7.3. Petty cash payment can only be claimed by the Union Executives and it has to be filed in forms, and the appropriate vouchers should be returned to the Union book-keeper within two days. (amended in CM6 1996) 7.4. The maximum amount claimed each time should not exceed $300 unless with the permission of Financial Secretary. 7.5. A sum of $4,000 will be kept in the Co-op attendant for exchange purpose. 7.6. A sum of $500 will be kept in the Photocopying Centre by the attendant for photocopying exchange purpose.
8. Stock and equipment record 8.1. Fixed Asset 8.1.1. The Administrative Secretary shall keep a listed record of Union Properties. (amended in CM6 1996) 8.1.2. All purchase of equipment of SA and ICA must be numbered and recorded in an inventory book maintained by the financial secretary of SA and ICA respectively. (amended in CM6 1996) 8.1.3. The inventory book must be examined and certified by the Financial Secretary yearly (at taking over of the sub-organizations). (amended in CM6 1996) 8.1.4. Written explanation must given for any damage or loss, which will be numbered and recorded in the inventory book for reference. 8.1.5. The executive committees of SA and ICA Union sub-organizations shall each keep an inventory record of her society's equipment. At the end of each financial year, the financial secretary of Union sub-organizaions will submit the inventory book to the Financial Secretary for certification. No budget for equipment will be provided until the Financial Secretary has certified the inventory book. (amended in CM6 1996) 8.2. Stock 8.2.1. The periodic inventory system should be adopted and periodic physical stock taking be carried out to estimate the value of inventory at the end of each period. 8.2.1.1. Stock of Union Co-operative shall be taken at least half-yearly. 8.2.1.2. Stock of Printing Section shall be taken monthly. 8.2.1.3. Stock of Photocopying Service Centre shall be taken monthly. 8.2.2. First in, first out method of stock valuation should be used. 8.3. Purchase and Sales record 8.3.1. All purchase must be recorded in an order book. 8.3.2. All sales must be recorded in a sales book quarterly.
SECTION VIII REGULATIONS GOVERNING FUND-RAISING FUNCTIONSAll fund-raising functions shall seek the approval of the respective finance committee. (amended in CM6 1996) 1. Definition 1.1. "Function" shall mean a public ceremony or an event. It can be part of a series of activities designed or organized for a common theme, e.g. publication of journals, programmes or the like. 1.2. "Fund-raising function" shall mean any function (as mentioned above) organized with the aim of making profit and with expected or actual net income return exceeding $700.00 (e.g. Annual Ball, Book Exhibition, etc.). (amended in CM15 1998) 1.3. "Agent" shall mean any person or organization outside the Union, acting on behalf of the Union or its sub-organization, soliciting advertisement, patronage, donation, sponsorship or selling of tickets (except URBTIX) etc. which will obtain monetary advantage in the course.
2. Control 2.1. No agents are allowed in any function 2.2. No fund-raising function as defined in Article 1. can be done without the written consent of the Union Finance Committee.(amended in CM3 1998) 2.3. In case of charity fund-raising function, application should be submitted to the Union Finance Committee direct for its approval with the recipient(s) of the fund stated very clearly. Also a member of the Finance Committee shall be appointed in the meeting as the Honorary Auditor of the function. (amended in CM3 1998) 2.4. Whenever sales of equipment, services or consumable goods (e.g. books and compact discs) are involved in a function, application, including information of the sales (e.g. name of suppliers, commission, dates and places, etc.), should be submitted to the Financial Secretary or scrutiny at least four weeks before commencement, and the Chairman of the Union sub-organization shall be responsible for the audit of the financial report, which shall be submitted to the Union Finance Committee within four weeks upon completion. (amended in CM3 1998)
3. Procedure 3.1. Application for holding fund-raising functions: 3.1.1. Any Union sub-organization, except those of Faculty Society, ICA and SA, wishing to organize fund-raising function should mention its wish explicitly in the proposal in general and apply to the Finance Committee at least six weeks before the function is held, except if the function is held for the relief work of some emergency work (please refer to paragraph 3.8 of the same section). (amended in CM4 2003) 3.1.2. All the Union sub-organization of Faculty Society, ICA and SA which wishing to organize fund-raising functions should apply to the finance committees of their respective Councils six weeks before the functions are held, and the power to approve or disapprove these fund-raising functions rests on the Councils of the above four. (amended in CM4 2003) 3.1.3. The finance committees of the Council of the Arts Association, Social Sciences Society, ICA and SA should report to the Finance Committee within a week for each approved or declined application. 3.1.4. The Finance Committee retains the power to review and overrule all the decisions made by the other four councils. 3.2. The following information shall be supplied to the Finance Committee when application is made: a. Aim; b. Nature (including the form and the method); c. Estimated income and expenditure details; d. Estimated surplus and its usage; e. Proposed annual budget; f. Date, time and the place where the function is to be held; g. Estimated no. of participants involved in the function; h. Up-dated bank statement(s). 3.3. The Finance Committee should scrutinize the proposed plan for the purpose of ensuring the aim of the fund-raising function is legitimate and proper and the budget is adequately prepared. 3.4. The Finance Committee, after receiving the details, may ask for further information if required. If the Finance Committee finds the proposed plan satisfactory, a written consent will be sent to the Union sub-organization concerned and the Union sub- organization may carry out its plan. (amended in CM6 1996) 3.5. An interim report of the progress of the function may be required by the Finance Committee, provided that a prior notice of 14 days is given for preparation. The interim report shall include: a. Actual income and its source(s); b. Unsecured income and its source(s); c. Actual expenditure; d. Any form of publication or publicity made. 3.6. If the plan is rejected by the committee, the Union sub-organization must stop all the organizing work. Appeal can be made by writing to the Union Council. (amended in CM6 1996) 3.7. Financial Report on fund-raising function After the fund-raising function has been carried out, the sub-organization must report to the Finance Committee within 4 weeks. In case of charity fund-raising function, it should be audited by the Hon. Auditor before hand. The report shall include: a. The actual income and its source(s); b. The total expenditure; c. The amount of surplus; d. The usage of the balance; e. The list of advertisers, patrons, donors, sponsors, and/or advisor of the function; f. One copy of each publication of the function. 3.8. Charity Fund-raising Functions for the relief work of some emergency issue: 3.8.1. Application shall be submitted to the Finance Committee direct within for weeks after that issue happened. (amended in CM6 1996) 3.8.2. No function can be held before its submission or notification of application. 3.8.3. Usually, the application shall be approved by way of ratification; however, in case there shall be controversies raised by a member of the Finance Committee within the one-week circulation period, a meeting shall be held within ten days' time afterwards. 3.8.4. Paragraph 2.3, 3.5, 3.6 and 3.7 above shall also be applicable under this case. 3.9. Each Union sub-organization can at most organize ONE fund-raising function each session, excluding charity fund-raising functions, unless with the approval of Finance Committee. (amended in CM6 1996) 3.10. The Finance Committee reserves the power of final adoption of fund-raising reports of Union sub-organizations. (amended in CM6 1996)
SECTION IX REGULATIONS GOVERNING THE COMMERCIAL BOOTH CO-ORGANZIZED BY THE ADMINISTRATIVE SECRETARY AND A UNION SUB-ORGANIZATION (Amended in CM7 1995) 1. Definition 1.1. "Commercial Booth" shall mean promotion counters which promote the products of any external agents, excluding for charity purpose. 1.2. "Promotion Program" shall mean the Commercial Products Promotion Program in which Commercial Booth(s) are involved. 1.3. "Sub-organization" shall mean the Union sub-organization which co-organize the commercial Booth with the Administrative Secretary. (amended in CM6 1996) 1.4. "Academic Function" shall mean the activities organized by and of the same nature of the Sub-organization and to promote academic atmosphere.
2. Control 2.1. Sub-organization can only organize Commercial Booths jointly with Administrative Secretary. 2.2. The Promotion Program shall satisfy the following conditions:- 2.2.1. Not less than three Commercial Booths should be included in the Promotion Program at the same time. 2.2.2. The nature of the products of the Commercial Booths in the Promotion Program should STRICTLY match with the aims and nature of the Sub-organization. 2.2.3. The surplus of the Promotion Program should be accumulated in the Academic Fund of the Union. The Sub-organization should be granted from the Academic Fund at most 40% of the actual total surplus to organize its Academic Function(s). The binding of the maximum subsidy to Union sub-organizations of the Academic Fund should be exempted here. (amended in CM6 1996) 2.2.4. The Sub-organization should use the surplus on Academic Function(s) which held six months after the Commercial Booths. The budget of the Promotion Program and the Academic Function(s) should be adopted by the Finance Committee.
3. Procedure 3.1. Application for holding Commercial Production Promotion Program: 3.1.1. Any Union sub-organization wishes to co-organize Commercial Booths with the Administrative Secretary should mention its wish explicitly in the proposal of the Promotion Program and the Academic Function(s), with the budgeys of both, to the Administrative Secretary. (amended in CM6 1996) 3.1.2. The application should be sent to the Administrative Secretary at least 9 weeks before the Commercial Booths are to be held. 3.2. The following information shall be supplied to the Adminstrative Secretary when application is made: (amended in CM6 1996) 3.2.1. The following information of the Promotion Program: a. Aims; b. Nature of the Products of the Commercial Booths; c. Estimated income and expenditure in details; d. Proposed annual budget; e. Date, time and the venue where the Promotion Program is to be held; f. Estimated number of participants involved in Promotion Program; g. Up-dated bank statement(s). 3.2.2. The information of the Academic Functions required for the application of the Academic Fund as provided for in the respective section in this Financial Regulation. 3.3. The Administrative Secretary should scrutinize the proposed plan for the following: (amended in CM6 1996) 3.3.1. The aims and nature of the Commercial Booths STRICTLY matches with the aims and nature of the Union sub-organization. (amended in CM6 1996) 3.3.2. The resources required for the Promotion Program are available. 3.4. After the Administrative Secretary finds the proposed plan of the Promotion Program satisfies the two conditions above, he should submit the proposal to the Finance Committee at least 7 weeks before the Commercial Booths are to be held. (amended in CM6 1996) 3.5. If the Administrative Secretary rejects the plan, the Union sub-organization must stop all the organizing work. Appeal can be made by writing to the Union Executive Committee. (amended in CM6 1996) 3.6. After the Finance Committee receives the proposal submitted by the Administrative Secretary, it should scrutinize the following: (amended in CM6 1996) 3.6.1. The proposed plan of the Promotion Program for the purpose of ensuring the financial necessity of the Promotion Program; 3.6.2. Budgets of the Promotion Program and the Academic Function(s) are properly and adequately prepared; 3.7. The Finance Committee, after receiving the details, may ask for further information if required. If the Finance Committee finds the proposed plan satisfactory, it should decide the amount of subsidy for the Academic Function(s). The respective section in this Regulation governing the criteria for granting subsidy of the Academic Fund should be applied here in general except the binding of maximum subsidy of the Academic Fund.
The Finance Committee should send a written consent to the Sub-organization concerned and notify the amount of subsidy of the Academic Fund to the Sub- organization at least 4 weeks before the Commercial Booths are to be held. The Sub-organization may then carry out its plan. (amended in CM6 1996)
3.8. The Sub-organization and Administrative Secretary should jointly sign agreements with the commercial firms participated in the Promotion Program. (amended in CM6 1996) 3.9. The Sub-organization should submit an interim report of the progress of the Promotion Program at least 7 days before the Commercial Booths to be held. The interim report shall include: a. The documents of all agreements with the commercial firms participated; b. Actual number of Commercial Booths involved; c. Expected income from the commercial firms not yet with written confirm; d. Actual expenditure; e. Any form of publication or publicity made. 3.10. If the plan is rejected by the Finance Committee, the Sub-organization must stop all the organizing work. Appeal can be made by writing to the Union Council. (amended in CM6 1996) 3.11. Financial Report on the Academic Function(s) and the Promotion Program: After the Promotion Program have been carried out, the Sub-organization must report to the Finance Committee within 4 weeks. The report shall include: a. The actual income and its sources; b. The total expenditure; c. The list of advertisers, patron, donors, sponsor, and the advisor of the Promotion Program; d. One copy of each publication of the function. 3.12. The Finance Committee may review the amount of subsidy to the Academic Function(s) after receiving the interim report of the Promotion Program. The payment of the Academic Fund to the Sub-organization should be transferred only after the final review of subsidy to the Academic Function(s) by the Finance Committee. 3.13. Each Union sub-organization can at most organize one Promotion Program each session, unless with the approval of the Finance Committee. (amended in CM6 1996)
SECTION X COMPENSATION FOR LOSS OR DAMAGE OF UNION PROPERTIES1. Any loss and damage of Union Property should be the responsibility of the person(s) or Union sub-organization(s) concerned. (amended in CM6 1996) 2. Compensation should be in the form of replacement of the lost or damaged Union properties in general. 3. Compensation in terms of money shall not be less than half of the contemporary market price of the property. 4. Compensation should be made within one month except with the permission of the Administrative Secretary.
SECTION XI PENALTY FOR INFRINGEMENT OF THE FINANCIAL REGULATION1. Penalty imposed for Union sub-organizations against Financial Regulation depends on the seriousness of individual cases. (amended in CM6 1996) 2. Penalties that may be imposed by Union Council with Finance Committee recommendation: (amended in CM6 1996) 2.1. Regretted by Union Council; (amended in CM6 1996) 2.2. Retrieval of subsidy within the session concerned; 2.3. Temporary suspension of affiliation i.e. no activity of the society can be proceeded; 2.4. | |||||||||||||||||||||