Academic Programmes and Student Numbers

The Institute continues to develop and offer new programmes to students, and a new Professional course for Primary School Teachers (Mathematics Teaching) was launched in 2004/05. Due to demographic changes and the reduction in the demand for school teachers as projected by the Government, the total UGC-funded student number in FTE terms was reduced by 8% from 2003/04 to about 5,000 as at June 2005. About 70% of this student population was at the degree or above level, with about 400 students in FTE terms taking postgraduate programmes.

Amongst the non-UGC funded programmes, the Bachelor of Arts (Hons) in Tourism Management and the Bachelor of Arts (Hons) in Event Management, developed in collaboration with the University of Central Lancashire, were also launched in the year. Of the self-funded programmes, Project Yi Jin with about 700 FTE students, the professional language upgrading course for English & Putonghua Teachers with about 300 FTE students, and the Pre-Associate Degree and Associate Degree programmes with about 300 FTE students were the most popular.

Income and Expenditure

In accordance with the revised Statement of Recommended Accounting Practice, the Institute had consolidated all its activities, including activities of its subsidiaries, in the financial statements starting from the financial year 2004/05. The accounting practice adopted by the Institute has moved one big step closer to those adopted in the private sector and in most universities internationally.

Income

The subventions from the UGC has reduced by $172 million, from $939 million in 2003/04 to $767 million in 2004/05. Other reductions in income came from the decrease of almost $8 million in tuition, the reduction in donations of around $19 million, and a drop of $7 million in other income. Investment and interest income, on the other hand, increased from $12 million to $25 million, as the Institute continued to invest idle cash in different financial products carrying a higher but reasonable and acceptable level of risk, to enhance returns. The average return improved from 1.5% in 2003/04 to 2.6% in 2004/05, which was slightly better than the average rate of a two-year fixed-rate-time deposit of 2.4%.

 
Government Subventions
Tuition, Programmes and Other Fees
Interest and Investment Income
Donations and Benefactions
Auxiliary Services
Other Income
   


Endowment, donations, scholarships, bursaries and other sponsorships received during the year amounted to $11 million, which represented a large decrease from the prior year figure of $30 million. Given the nature of courses offered by, as well as the remote location and the short history of the Institute, we are concerned that the Institute may continue to find it difficult to attract major donations. Nevertheless, the Institute will continue to spare no efforts in making appeals to the community to contribute towards funding of education. We eagerly seek out organisations/individuals who share the vision of the Institute, and who are willing to make donations, large or small, to support the work of the Institute.

The second round of the Government matching grant scheme to assist the UGC-funded institutions in fund raising was launched in August 2005. Hopefully, it can help boost up donation income in the next year.

The Institute's Division of Continuing Professional Education ("CPE") continues to make steady progress in the last three years. It has laid down a firm foundation for income generation by raising its income level from $44 million in 2002/03 to $62 million in 2003/04, and then maintaining this income level of $62 million in 2004/05.

Apart from the CPE, teaching departments had also been active in bidding for new self-financing programmes/projects. Total project income secured/awarded during the year was slightly more than $80 million, bringing extra income to the Institute in the coming one to three years.

With the reduction in UGC recurrent funding, the Institute will have to rely increasingly on non-UGC funds. The Institute is actively considering alternatives in this regard. In spite of the various challenges, we are proud that the Institute has staff members who have demonstrated a willingness and capacity to go the extra mile as and when needed.

Deflation experienced in Hong Kong for the last 6 years appears to have come to an end. The average interest rate in 2004/05 increased moderately by 1% to about 2.4% for a two-year fixed-rate-time-deposit in Hong Kong dollars. The Institute had refined its risk-controlled investment approach to include new instruments to cope with the then roller-coaster investment markets. As a result, a 200% increase in investment and interest income was achieved in 2004/05 as compared with 2003/04.