Note: Enclosure 1 to this circular and some information in Enclosure 3 have been updated
via TsyB’s memos ref. TsyB W 00/640-1/1/0 dated 17 July 2012, 18 January 2013 and
20 May 2013 (English only), which is appended at the end for reference.
TsyB W 00/640-1/1/0 Pt. 1
GOVERNMENT SECRETARIAT
HONG
KONG
24
August
2011
FINANCIAL CIRCULAR NO. 3/2011
Capital Works Reserve Fund
Delegated authorities in respect of block allocations
(Note : Distribution of this Circular is
Scale C. Directors of
Bureaux, Permanent Secretaries, Controlling Officers and
Resource Management Unit officers of Policy Bureaux,
and all officers dealing with expenditure proposals under
the block allocations of the Capital Works Reserve Fund
should read it.)
------------------------------------
INTRODUCTION
This circular updates –
(a)
the levels of sub-delegations of individual block allocations under the
Capital Works Reserve Fund (CWRF); and
(b)
the guidelines to assist Permanent Secretaries and Controlling Officers
to exercise their delegated authorities.
Financial Circulars No. 8/2001 and No. 2/2007 are hereby cancelled with immediate
effect.
/DELEGATED…..
To : Directors of Bureaux
Permanent
Secretaries
Controlling
Officers
- 2 -
DELEGATED AUTHORITIES FOR ADMINISTERING BLOCK
ALLOCATIONS UNDER THE CAPITAL WORKS RESERVE FUND
2.
There are 24 CWRF block allocations. On 2 November 2007, the
Legislative Council (LegCo) Finance Committee approved an increase in the
financial ceiling on the delegation of authority for approving Category D items from
$15 million to $21 million
($30 million with effect from 13 July 2012). In line with
past practice, the Secretary for Financial Services and the Treasury (SFST) approved
the upward adjustments to the levels of sub-delegations under individual block
allocations 1 . A summary setting out the scope for each block allocation, the
Permanent Secretary and Controlling Officer in charge and the level of delegated
Encl. 1 authorities is at
Enclosure 1.
3.
For
Subheads 3004GX and
3101GX under
Head 703 – Buildings,
updated arrangements for minor building works and refurbishment items to be
approved on the advice of the Minor Building Works Committee, Government
Property Agency and/or the Accommodation Strategy Group are set out in
Encl. 2
Enclosure 2.
4.
To avoid underspending, works on each approved item should start
within six months of the date of approval. Beyond that, the approval will
automatically lapse unless the works agent obtains special dispensation from the
Permanent Secretary overseeing the relevant block allocation to extend the validity
period for up to six more months. Permanent Secretaries should consult SFST on any
further requests for extending the validity period beyond 12 months from the approval
date.
GUIDELINES ON THE EXERCISE OF DELEGATED AUTHORITIES
5.
The CWRF was established in April 1982 by Resolution of the LegCo
under the Public Finance Ordinance (Cap. 2) for the purpose of financing the capital
works programme and the acquisition of land. The Fund is administered by the
Financial Secretary/SFST who may delegate his power of administration to other
public officers.
6.
When exercising delegated authorities, Permanent Secretaries and
Controlling Officers are reminded of the need to ensure that all expenditure under
CWRF block allocations must be a proper charge to both the CWRF and the
respective subhead.
/7. .....
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1 No change has been made to the level of sub-delegation under
Subheads 1004CA,
1100CA and
5001BX as
the respective Controlling Officers are authorised to approve expenditure for individual items without limit,
provided that the annual allocations for the subhead approved by the Finance Committee is not exceeded.
- 3 -
7.
If a Permanent Secretary or Controlling Officer allows expenditure to be
incorrectly charged to any block allocation under the CWRF, the Treasury Branch of
the Financial Services and the Treasury Bureau (TsyB) will consider recommending
SFST to withdraw the authorities delegated under this circular. Where actual misuse
of public funds occurs, TsyB may also consider instituting suitable sanctions,
including imposing surcharges on the public officer under the Public Finance
Ordinance (Cap. 2).
Encls. 3 8.
Enclosures 3 and 4 set out updated guidelines on the approval
& 4
procedures to be followed and the conditions that apply to the delegations.
OVER-COMMITMENT
9.
The level of over-commitment for all block allocation subheads
(excluding those under
Head 701 –
Land Acquisition) is 200% of the allocation
approved by the Finance Committee for the subhead for that financial year. For block
allocation subheads under
Head 701, there is no limit to the over-commitment level.
ENQUIRIES
10.
For enquiries on this Circular, please contact PAS(Tsy)(W) at
2810 2232 or AS(W)1 at 2810 2495.
Signed
Professor K C Chan
Secretary for Financial Services and the Treasury
Enclosure 1
Delegated authorities for administering
the Capital Works Reserve Fund block allocations
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
701
1004CA –
Compensation for surrenders and
-
Director of Lands
(Note 3)
resumptions: miscellaneous
(D of Lands)
1100CA –
Compensation and ex-gratia allowances
-
D of Lands
- ditto -
in respect of projects in the Public Works
Programme
702
2001AX –
Consultants’ fees for feasibility
Permanent Secretary for
Director of Civil
investigations and design and major in-house
Transport and Housing
Engineering and
investigations for Port and Airport Development
(Transport) (PS(T))
Development (DCED)
Strategy (PADS)-related civil engineering projects
2002AX –
Consultants’ fees for feasibility
PS(T)
Director of Highways
investigations and design and major in-house
(DHy)
investigations for PADS-related transport projects
2003AX –
Consultants’ fees for feasibility
Permanent Secretary for
DCED
investigations and design and major in-house
Development (Planning
investigations for PADS-related territorial
and Lands) (PS(PL))
development projects
- 2 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
703
3004GX –
Refurbishment of government buildings
Permanent Secretary for
Director of Architectural
(Note 4)
for items in Category D of the Public Works
Financial Services and
Services (D Arch S)
Programme
the Treasury (Treasury)
(PS(Tsy))
3100GX –
Project feasibility studies, minor
PS(Tsy)
D Arch S
investigations and consultants’ fees for items in
Category D of the Public Works Programme
3101GX –
Minor building works for items in
PS(Tsy)
D Arch S
(Note 5)
Category D of the Public Works Programme
704
4100DX –
Drainage works, studies and
Permanent Secretary for
Director of Drainage
investigations for items in Category D of the Public
the Environment
Services (DDS)
Works Programme
(PS(Env))
705
5001BX –
Landslip preventive measures
- DCED
(Note 6)
5101CX –
Civil engineering works, studies and
Permanent Secretary for
DCED
investigations for items in Category D of the Public
Development (Works)
Works Programme
(PS(W))
5101DX –
Environmental works, studies and
PS(Env) Director
of
(Note 7)
investigations for items in Category D of the Public
Environmental
Works Programme
Protection (DEP)
706
6100TX –
Highway works, studies and investigations PS(T)
DHy
(Note 8)
for items in Category D of the Public Works
Programme
- 3 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
707
7014CX –
Rural Public Works Programme
Permanent Secretary for
Director of Home Affairs
Home Affairs (PSHA)
(DHA)
7016CX –
District Minor Works Programme
PSHA DHA
(Note 9)
7100CX –
New towns and urban area works, studies
PS(PL)
DCED
and investigations for items in Category D of the
Public Works Programme
708
8100BX –
Slope-related capital works for subvented
PS(W)
D Arch S
organisations other than education and medical
subventions
8100EX –
Alterations, additions, repairs and
- Secretary-General,
(Note 10)
improvements to the campuses of the University
University Grants
Grants Committee (UGC)-funded institutions
Committee (SG, UGC)
8100MX –
Hospital Authority - improvement works,
-
Permanent Secretary for
feasibility studies, investigations and pre-contract
Food and Health
consultancy services for building projects
(Health) (PS(Health))
8100QX –
Alterations, additions, repairs and
-
Permanent Secretary for
improvements to education subvented buildings
Education (PS(Ed))
8001SX –
Provisioning of welfare facilities
-
Director of Social
(Note 11)
Welfare (DSW)
- 4 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
709
9100WX –
Waterworks, studies and investigations
PS(W)
Director of Water
for items in Category D of the Public Works
Supplies
Programme
710
A007GX –
New administrative computer systems
- Government
Chief
(Note 12)
Information Officer
(GCIO)
711
B100HX –
Minor housing development related
-
Permanent Secretary for
(Note 7)
works, studies and investigations for items in
Transport and Housing
Category D of the Public Works Programme
(Housing)
Note 1 : For the ten block allocation subheads covered by Note 1, the approving limits of the responsible Permanent Secretaries and
Controlling Officers are as follows –
Approving limit per item
(a) Permanent Secretary
$21 million
(b) Deputy Secretary
$16 million
(c) Controlling Officer
$14 million
(d) Deputy to Controlling Officer (or officer at D3 level)
$9 million
(e) Directorate officer of the vote controlling department
$4 million
(as designated by the Controlling Officer)
- 5 -
Note 2 : For the two block allocation subheads covered by Note 2, the approving limits of the responsible Permanent Secretaries (who serve as
the Controlling Officers) are as follows –
Approving limit per item
(a) Permanent Secretary
$21 million
(b) Deputy Secretary
$16 million
(c) Principal Assistant Secretary
$9 million
(d) Directorate officer of the Policy Bureau
$4 million
(as designated by the Permanent Secretary)
Note 3 :
For
Subheads 1004CA and
1100CA, the D of Lands is authorised to approve expenditure for individual items without limit provided
that the annual allocations for the subheads approved by the Finance Committee is not exceeded. As approved by PS(Tsy) and
subject to figures approved by various internal committees chaired by D3 or D2 officers or at the ex-gratia rates approved by
PS(Tsy), the D of Lands may further delegate his authority to incur expenditure for items exceeding $20 million each to D3 or D2
officers and for items at or below $20 million each to D1 officers. For details, please refer to Lands Department’s Accounting
Circular (LDAC) No. 5/2001 or future updated LDACs on the delegation of authorities. When approving items, the D of Lands and
officers with delegated authority should comply with relevant statutory and administrative requirements. There are, for example,
various formulae and rates which must be adopted in assessing the levels of payment in respect of resumption and clearance of land.
These are set out in other Circulars, or arise from decisions made by the Chief Executive in Council, the Legislative Council and the
Finance Committee.
Note 4 :
For
Subhead 3004GX, the D Arch S is required to prepare a programme of works on an annual basis for the Accommodation
Strategy Group’s approval. D Arch S as the Controlling Officer is authorised to approve expenditure for individual items not
exceeding $21 million provided that the annual allocation for the subhead approved by the Finance Committee is not exceeded.
- 6 -
Note 5 : For
Subhead 3101GX, the approving limits are as follows –
Approving limit per item
(a) DS(Tsy)3, TsyB, on the advice of the Accommodation Strategy
$21 million
Group
(b) D Arch S, on the advice of the Minor Building Works Committee
$14 million
(for non-fitting out works and
fitting out works other than those in
item (e))
(c) AD(Property Services), Arch SD
$1.4 million (for non-fitting out works and
fitting out works other than those in
item (e))
(d) Senior Maintenance Surveyors, Arch SD
$0.1 million (for non-fitting out works and
fitting out works other than those in
item (e))
(e) Government Property Administrator
$14 million
(for fitting out works in newly
allocated government
accommodation)
Note 6 :
For
Subhead 5001BX, the DCED is authorised to approve expenditure for individual items without limit provided that the annual
allocations for the subhead approved by the Finance Committee is not exceeded; and the Head of the Geotechnical Engineering
Office, up to $14 million per item.
Note 7 : For
Subheads 5101DX and
B100HX, the approving limits are as follows –
Approving limit per item
(a) Permanent Secretary
$21 million
(b) Deputy Director of Environmental Protection (EP)/Housing (H) (or officer at D3 level or above
$14 million
as designated by the Controlling Officer)
(c) Assistant Director of EP/H (or officer at D2 level as designated by the Controlling Officer)
$9 million
(d) Directorate officer of Environmental Protection Department/Housing Department
$4 million
(as designated by the Controlling Officer)
- 7 -
Note 8: For
Subhead 6100TX, the approving limits are as follows –
Approving limit per item
(a) PS(T) $21
million
(b) Deputy Secretary of Transport Branch, Transport and
$16 million
Housing Bureau
(c) DHy $14
million
(d) Deputy Director of Highways (Hy)
$9 million
(or officer at D3 level)
(e) Directorate officer of HyD (as designated by the DHy)
$4 million
(f) Directorate officer of Traffic Engineering Division,
$1.4 million
Transport Department (as designated by the DHy)
Note 9: For
Subhead 7016CX, the approving limits are as follows –
Approving limit per item
(a) PSHA $21
million
(b) DHA/Director of Leisure and Cultural Services
$14 million
(c) Deputy Director of Home Affairs / Leisure and Cultural
$9 million
Services
(d) Directorate officer of Home Affairs Department and Leisure
$4 million
and Cultural Services Department (as designated by the
Controlling Officer)
Note 10 : For
Subhead 8100EX, the SG, UGC is authorised to approve any items up to $7 million each; and up to $21 million each where the
item has been endorsed by the UGC. SG,UGC should consult the Secretary for Education (SED) in drawing up the annual estimate
for this subhead and seek SED’s endorsement, where necessary, in authorising expenditure on individual projects.
- 8 -
Note 11 : For
Subhead 8001SX, the DSW is authorised to approve any items up to $21 million each; and Deputy DSW, up to $8 million each.
DSW should consult the Secretary for Labour and Welfare (SLW) in drawing up the annual estimate for this subhead and seek
SLW’s endorsement, where necessary, in authorising expenditure on individual projects.
Note 12 : For
Subhead A007GX, the approving limits are as follows –
Approving limit per item
(a) GCIO/Deputy GCIO
$10 million
(b) Assistant GCIO/Chief Systems Manager
$1 million
Expenditure from this non-works subhead should follow procedures stipulated in Office of the Government Chief Information
Officer (OGCIO) Circular No. 3/2007 of the Commerce, Industry and Technology Bureau or future updated OGCIO Circulars on the
procedures.
Note 13 : For the ambits of individual block allocations, please refer to the Memorandum Note on the Capital Works Reserve Fund in the
annual Estimates.
Enclosure 2
Delegated authorities for administering Subheads 3004GX and 3101GX
under Head 703 – Buildings
The Director of Architectural Services (D Arch S) is the Controlling
Officer for
Head 703 Subheads 3004GX and
3101GX. D Arch S will prepare a
programme of works to be funded under
Subhead 3004GX each year for approval by
the Accommodation Strategy Group (ASG). At the time of the annual Estimates,
D Arch S will also call for bids from departments for items to be funded under
Subhead 3101GX. Based on the programme and departmental returns, D Arch S will
propose the estimates for
Subheads 3004GX and
3101GX.
2. The
Minor
Building Works (MBW) Committee examines and
recommends to D Arch S for approval minor building works (other than fitting out
works in newly allocated government accommodation) costing $14 million
($20 million with effect from 17 July 2012) or less but more than $1.4 million
($2 million with effect from 17 July 2012) proposed to be funded under
Subhead
3101GX. The Government Property Administrator (GPA) examines and approves
fitting out works projects in newly allocated government accommodation costing $14
million
($20 million with effect from 17 July 2012) or less proposed under the same
Subhead. The ASG examines and recommends to DS(Tsy)3 for approval, among
other things, projects referred to it by the MBW Committee or GPA (i.e. minor
building works costing $21 million
($30 million with effect from 17 July 2012) or less
but more than $14 million
($20 million with effect from 17 July 2012)), as appropriate.
Please refer to
Enclosure 1 (Notes 4 and 5) for details of the delegated authority in
respect of these two subheads. The terms of reference and composition of the MBW
Committee and ASG are as follows –
- 2 -
Terms of Reference
MBW Committee
ASG
(a) To consider proposed minor building
(a) To decide administratively the
works (other than fitting out works in
phased expenditure and distribution
newly allocated government
of funds under
Head 703 Subhead
accommodation) exceeding
3101GX between various categories
$1.4 million
($2 million with effect
of work, namely –
from 17 July 2012) each to be funded
under
Head 703 Subhead 3101GX
(i) minor
building
works
block vote and to determine priorities
$1.4 million
($2 million
for implementing these works;
with effect from 17 July
2012) each;
(b) to recommend for D Arch S’s approval
expenditure for works in (a)
(ii) minor
building
works
above $14 million
($20 million with
> $1.4 million
($2 million
effect from 17 July 2012) each;
with effect from 17 July
2012) but $14 million
(c) to recommend for ASG’s endorsement
($20 million with effect from
and DS(Tsy)3’s approval works in (a)
17 July 2012) each;
above > $14 million
($20 million with
effect from 17 July 2012) but
(iii) minor building works
21 million
($30 million with effect
> $14 million
($20 million
from 17 July 2012) each; and
with effect from 17 July
2012) but $21 million
(d) to monitor regularly patterns of
($30 million with effect from
expenditure under
Head 703 Subhead
17 July 2012) each; and
3101GX.
(iv) fitting out works for newly
allocated government
accommodation;
(b) to agree on criteria for prioritisation
of proposals for minor building
works to be funded under
Head 703 Subhead 3101GX;
(c) to examine and recommend to
DS(Tsy)3 for approval the funding,
under
Head 703 Subhead 3101GX,
of projects > $14 million
($20 million with effect from 17 July
2012) but $21 million
($30 million
with effect from 17 July 2012) each,
taking into account
recommendations of the MBW
Committee or GPA, as appropriate;
- 3 -
MBW Committee
ASG
(d) to review from time to time the
administrative demarcation and
share of funds of the categories at
(a); and
(e) to examine and approve the
programme of refurbishment works
as proposed by D Arch S for funding
under
Head 703 Subhead 3004GX.
Composition
MBW Committee
ASG
Chairman : D Arch S
Chairman : DS(Tsy)3, TsyB
Members : AD(Property Services),
Members : D Arch S
Architectural Services
GPA
Department(Arch SD)
PAS(Tsy)E,
TsyB
Chief Engineer (General
Engineering
Services), Electrical
Secretary : Chief Executive Officer
and Mechanical
(Projects), Arch SD
Services Department
GPA or his representative
Secretary :
Chief Property Services
Manager (2), Arch SD
-------------------------
Enclosure 3
Guidelines on the exercise of delegated authorities
Permanent Secretary and Controlling Officer
In considering a proposal to create a new project under the Capital
Works Reserve Fund (CWRF) block allocations, Permanent Secretaries, Controlling
Officers and designated officers should –
(a) ensure that the proposal is a
proper charge to the relevant
CWRF block allocation (in line with paragraphs 2 to 6
below);
(b) exercise their delegated authorities in a
transparent and
accountable manner (in line with paragraphs 7 to 22
below). They should not sub-delegate their authorities to
other officers; and
(c) monitor and control expenditure from the relevant block
allocations to keep the total expenditure and the level of
over-commitment strictly
within approved limits.
Should there be cases that fall beyond their delegated
authorities (as described in paragraph 23 below), they
should refer the cases to the Treasury Branch of the
Financial Services and the Treasury Bureau (TsyB) in a
timely manner.
Proper charge to CWRF Block Allocations
2.
Permanent Secretaries and Controlling Officers should distinguish
capital expenditure from the following cases –
(a)
Recurrent Expenditure – There should be no
“capitalisation” of cost items1 which belong to recurrent
heads under the General Revenue Account (GRA).
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1
For example, in-house staff costs to implement the works or the subsequent maintenance or operating
costs of the completed works should not be “capitalised” and funded through the CWRF.
- 2 -
(b)
Investments or Loans – Equity injections or loans that
fund capital works projects indirectly 2 should not be
charged against the CWRF block allocations.
(c)
Capital Non-works – Capital non-works 3 not arising
directly from capital works projects are non-recurrent
charges to GRA heads of expenditure.
3.
Even if the proposed expenditure in question is a possible charge to the
CWRF, the proposal must be
within the
ambit of the head and subhead. We may
incur expenditure from the block allocations only if the relevant legislation or formal
decisions made under that legislation (such as those of the Legislative Council
(LegCo) Finance Committee) state clearly that we can do so. Silence should be taken
to mean we
cannot incur expenditure unless we first obtain the necessary approvals
from the Finance Committee either to create a new subhead or to amend the ambit of
the existing subhead to permit the proposed expenditure. If in doubt, Permanent
Secretaries and Controlling Officers should seek the advice of the Secretary for
Financial Services and the Treasury (SFST).
4.
We should not implement larger projects using funds from the block
allocations by artificially breaking the costs of the project down into either smaller
projects or phases or stages. The LegCo Public Accounts Committee (PAC) has
previously expressed concern that charging the cost of works of the same project to
the block allocations, rather than the project vote, will leave room for manipulation
and under-reporting of the total project cost. While there could be circumstances
where certain works fall within the ambit of both a project vote and the relevant block
allocation, Permanent Secretaries and Controlling Officers should take into account
PAC’s concern when considering the appropriate funding source of a project.
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
2
For example, the equity and loan to the Hongkong International Theme Parks Limited (HKITP)
(which is a joint venture company owned by the Government and The Walt Disney Company) to
allow HKITP to proceed with the development and operation of Hong Kong Disneyland is charged to
Head 973 – Tourism under the Capital Investment Fund, rather than CWRF.
3
Examples of capital non-works items are traffic impact assessment study (TIA) and environmental
impact study (EIA) in connection with a site to be sold for estate development. TIAs and EIAs arising
directly from capital works projects are proper expenditure under the CWRF.
- 3 -
5.
Also, block allocations must not be used to hide cost overruns on other
projects or to cover omissions in the original scopes of such projects. We should not
seek to cover the additional expenditure beyond the approved project estimate of a
project or part of a project that is already funded under the CWRF (or from other non-
CWRF sources of funds) through a new item under block allocations. Any such
increase in approved project estimate should be approved under delegated authorities
or by the Finance Committee, as the case may be. Funding from block allocations can
only be used for increasing approved project estimates if the project concerned is
originally funded from the same block allocation and we are simply increasing the
approved project estimate of that project within the financial ceiling for individual
projects under that block allocation.
6.
Precedent cases cannot be relied upon solely to justify the use of a block
allocation for a particular purpose since each case should be examined on its merits
and in the light of prevailing circumstances.
7.
We have committed to fully consulting the public and other interested
parties
on any proposals that may affect them. Funding proposals under block
allocations should therefore not be classified as “restricted”, “confidential”, or higher,
without obtaining the prior written approval of SFST.
Approval process
Factors to be considered
8.
Permanent Secretaries and Controlling Officers should not approve
expenditure proposals until they have satisfied themselves that all
preparatory
administrative and legal procedures necessary for the implementation of these
proposals have been completed. For example, where prior gazettal for a certain
project is required, Permanent Secretaries and Controlling Officers should not
approve the funding request until the gazettal procedures have been completed and all
objections have been either resolved or overruled by the Executive Council. Similar
rules apply in respect of public consultation with District Councils and other similar
bodies.
- 4 -
9.
Permanent Secretaries and Controlling Officers should have satisfied
themselves that
environmental problems have been resolved before works are
committed. The procedures as set out in Environment, Transport and Works Bureau
(ETWB) Technical Circular (Works) No. 13/2003 “Guidelines and Procedures for
Environmental Impact Assessment of Government Projects and Proposals”, ETWB
Technical Circular (Works) No. 13/2003A “Guidelines and Procedures for EIA of
Government Projects and Proposals Planning for Provision of Noise Barriers” and any
further streamlined measures issued by the Environment Bureau (ENB) and the
Development Bureau (DEVB) should be followed. For designated projects under the
Environmental Impact Assessment (EIA) Ordinance, the project proponent should
ensure that the statutory environmental procedures are complied with and
environmental permits obtained before the construction and operation of the project.
10.
Permanent Secretaries and Controlling Officers should also have
satisfied themselves that
tree preservation requirements have been adequately
addressed before works are committed. The procedures and requirements as set out in
ETWB Technical Circular (Works) No. 3/2006 “Tree Preservation”, ETWB
Technical Circular (Works) No. 29/2004 “Registration of Old and Valuable Trees,
and Guidelines for their Preservation” and any other guidelines promulgated by
DEVB from time to time in respect of tree preservation should be followed.
11.
For minor building works projects, Permanent Secretaries and
Controlling Officers should follow the guidelines under DEVB/ENB joint circular
(DEVB Technical Circular No. 5/2009, ENB Circular Memorandum No. 2/2009) on
“Green Government Buildings” to control the costs of green and energy saving
measures and any further updated guidelines issued by DEVB and ENB. For
example, the total additional costs for implementing green measures in a new
government building project should be capped at two percent of the total project cost,
the maximum payback period of energy saving projects in existing government
buildings would normally be capped at 12 years, etc. Non-compliances should be
fully justified, and DEVB and ENB should be consulted.
12.
No expenditure proposals on projects should be committed until all
land
acquisition and delivery issues have been addressed.
13.
Projects funded under the CWRF block allocations may give rise to
recurrent consequences (RC). Under the envelope approach of resource allocation,
the Directors of Bureaux and Controlling Officers concerned are required to absorb,
from within their envelope allocations, the RC arising from projects funded under
block allocations.
14.
Permanent Secretaries and Controlling Officers should not authorise
expenditure from any of the CWRF block allocations in respect of items which
involve the
capitalisation of RC. This includes, but is not limited to, capitalisation of
staff costs and benefits, routine maintenance, and operating and management costs.
- 5 -
15.
Permanent Secretaries and Controlling Officers should ensure that
expenditure under a Category D item is within the
approved project scope for the
item, as well as the
ambit of the relevant block allocation. TsyB should be consulted
in case of doubt. For example, cost of
acquisition or fitting out of office
accommodation or for the purchase of
office furniture and equipment should only
be expended under
Head 703 Subhead 3101GX. As regards the purchase of other
equipment, this is only allowed where such equipment is required as an essential part
of a project. We will not permit capital works subheads to be used as a means to
circumvent the normal procedures that Bureaux and Departments must follow to
acquire non project-specific equipment.
Documentation
For items costing less than $7 million ($10 million with effect from 17 July 2012)
16.
We do not require a formal Category D paper to be drafted
for items
costing less than $7 million ($10 million with effect from 17 July 2012) each. The
request to the Controlling Officer (or his directorate representatives) can take the form
of a memo or minute that follows (albeit in reduced form) the general drafting style of
a Public Works Subcommittee (PWSC) paper. The memo or minute should be self-
explanatory without the need to refer to other correspondence or documents. It should
set out clearly and concisely the problem, the proposal, the justification, the financial
implications (both capital and recurrent), the start and completion dates and any
relevant background information. A Controlling Officer may approve several items
en bloc provided that they are clearly not phases or stages of a larger parent item
which exceeds the Controlling Officer’s normal ceiling of delegated authority (also
see paragraphs 4 and 5 above).
17.
Controlling Officers are not required to supply a copy of the approval
memo or minute to TsyB, and the relevant records may remain on the Controlling
Officer’s files, unless called for. Controlling Officers are, however, required to
submit a
quarterly return to ‘W’ Division of TsyB listing the approved items and the
costs involved.
18.
TsyB will also call for copies of certain memos or minutes on a
random
basis so as to ensure that Controlling Officers are exercising their delegated powers in
a transparent and accountable manner.
- 6 -
For items costing $7 million ($10 million with effect from 17 July 2012) or more
19.
Formal Category D paper should be prepared
for items each costing
$7 million ($10 million with effect from 17 July 2012) or more,
following the style
and content of a PWSC paper. Normally, the main works department, in consultation
with the client bureau or department, is responsible for preparing an initial skeleton of
the paper setting out the funding request. The works department should then clear the
Environmental Implications paragraph (if one is needed) with the Environmental
Protection Department and ask others, such as the Lands Department, to provide the
relevant information needed under other sections of the paper. The works department
should pass the final draft to the client department (where there is no client
department, to the Policy Bureau or Controlling Officer) for clearance and
transmission onto the Policy Bureau or Controlling Officer.
20.
Permanent Secretaries and Controlling Officers should send a copy of
the final paper, with the signatures of the approving officers and relevant financial
statement, to ‘W’ Division of TsyB for record purposes.
21.
To establish a clear audit trail for the funding approval process, we will
require the
personal signatures of appropriate officers to be appended to the formal
Category D papers for items costing $7 million ($10 million with effect from 17 July
2012) or more, preferably following the format in
Enclosure 4. These will include –
Encl. 4
(a)
the project officer of the works department clearing the
paper, who should confirm that all the necessary
legislative and administrative procedures have been
completed;
(b)
the officer of the vote controlling department/bureau at
senior professional level or above certifying that sufficient
funds are available to meet the proposed expenditure. The
officer should attach to the paper a simple financial
statement providing basic details of the approved
provision under the subhead, the expenditure to date,
forecast expenditure for the remainder of the financial year
and the degree of over-commitment to date arising from
forecast expenditure in subsequent financial years;
(c) where one exists, the representative of the client
department or agency (e.g. a subvented organisation) at
directorate level certifying that the proposals in the paper
accord with its requirements; and
(d) the
approving
officer.
- 7 -
22.
The drafting and approval process should be the same whether the
approving authority rests with the Policy Bureau or the vote controlling department.
Cases beyond delegated authority
23.
Permanent Secretaries should consult SFST, where –
(a)
works under a block allocation item has failed to start
within 12 months of the date of funding approval4;
(b) the
approved
over-commitment level for the block
allocation is likely to be exceeded; or
(c)
the latest forecast of expenditure indicates that total
expenditure will exceed $21 million
($30 million with
effect from 13 July 2012) for individual items or exceed
the allocations approved by the Finance Committee. This
will require a PWSC paper.
24.
For
Subheads 1004CA and
1100CA, only paragraphs 1 to 3, 8 to 10
and 21 are applicable.
-------------------------
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
4
Paragraph 4 of this Financial Circular refers.
Enclosure 4
Approval Record of Category D items
(Project head, e.g. HEAD 709 –
WATERWORKS)
(Project code and title of the Category D item,
e.g. New item –
Replacement of the distributed control system at Tuen Mun
water treatment works)
Part I –
To be completed by project officer of the works department
I attach a paper to seek approval for inclusion of an item in block allocation
Subhead
. I confirm that all the necessary legislative and administrative
procedures for the proposals set out in the paper have been completed.
Signature
Name
Name
of
department
Rank/Post
Date
File
ref.
Part II –
To be completed by vote controlling department/bureau at senior
professional level or above
I certify that the proposals set out in the paper are a proper charge to
Subhead
and that sufficient funds are available to meet the proposed
expenditure. I attach a financial statement in respect of the Subhead.
Signature
Name
Name
of
bureau /
Rank/Post
department
Date
File
ref.
Part III –
To be completed by the representative of the client bureau /
department or at directorate level
I certify that the proposals set out in the paper accord with the
requirements of my bureau/department.
Signature
Name
Name
of
bureau /
Rank/Post
department
Date
File
ref.
- 2 -
Part IV –
To be completed by the approving officer
Under the authority delegated to me by the Secretary for Financial
Services and the Treasury, I approve the expenditure proposals set out in the paper
attached. In so doing, I certify that the expenditure is a proper charge to the Capital
Works Reserve Fund,
Head
,
Subhead
. My maximum ceiling
of delegated authority per item is $
million. My approval is conditional
upon the works set out in this paper starting within six months after the date given
below, failing which my approval will lapse.
Signature
Name
Name
of
bureau /
Rank/Post
department
Date
File
ref.
Part V –
To be completed by the Permanent Secretary (or his directorate
representative) overseeing the programme area of the project
(if applicable: see note below)
I certify that the proposals set out in the paper have the policy support
of my Bureau and that all the necessary legislative and administrative procedures
have been completed.
Signature
Name
Name
of
bureau
Rank/Post
Date
File
ref.
Note: We indicate in Enclosure 1 whom we believe to be the main Permanent
Secretary for each block allocation subhead. There may, however, be projects under
these subheads that fall under the programme area of another Permanent Secretary.
In the circumstances, the main Permanent Secretaries for the relevant block
allocations should positively consider applications from other Permanent Secretaries
in respect of projects under the latter’s programme area. To this end, the Permanent
Secretary or his directorate representative overseeing the programme areas of the
project should give the Bureau’s endorsement by completing Part V of the approval
record. In case of disagreement, Permanent Secretaries concerned may refer the
cases to SFST for decision.
M E M O
Secretary for Financial Services
From
and the Treasury
To
See Distribution
Ref.
( )
in TsyB W 00/640-1/1/0
(Attn. :
)
Tel. No.
2810 2495
Fax No. 2147 5240
Total Pages:
2+8
Your Ref
in
Date
17 July 2012
Dated
Fax No.
Administration of Capital Expenditure Items
under the Capital Works Reserve Fund
On 13 July 2012, the Legislative Council (LegCo) Finance Committee
approved an increase in the financial ceiling on the delegation of authority for
approving Category D items from $21 million to $30 million each. In line with past
practice, the Secretary for Financial Services and the Treasury approved an upward
adjustment to the levels of sub-delegations under individual block allocations.
A summary setting out the scope for each block allocation, the Permanent Secretary
and Controlling Officer in charge and the level of delegated authorities is at
Annex.
The Annex replaces Enclosure 1 to Financial Circular (FC) No. 3/2011 with
immediate effect.
2.
Pursuant to the increase in financial ceiling, with immediate effect,
formal Category D paper should be prepared for items each costing $10 million or
more, instead of $7 million or more as stipulated in Enclosure 3 to FC No. 3/2011.
3.
Should you have any questions, please call the undersigned or Yvonne
Yau (TsyO(W)) at 2810 2925.
Signed
(Ivy
Chan)
for Secretary for Financial Services and the Treasury
- 2 -
Distribution
CWRF Block Allocations
Controlling Officers and Permanent Secretaries
PS(CT)
PS(Ed)
PS(Env)
PS(H)
PS(Health)
PS(PL)
PS(T)
PS(W)
PSHA
PSLW
D Arch S
D of Lands
DCED
DDS
DEP
DHA
DHy
DSW
DWS
GCIO
SG, UGC
cc
- for information
PSCS
PS(CIT)
PSCMA
PS(F)
PS(FS)
PS for S
Director of Administration
Judiciary Administrator
Commissioner, ICAC
The Ombudsman
Internal
P(A)
P(B)
P(C)
P(E)
P(H)
PEO(G)
Annex to memo ref. TsyB W 00/640-1/1/0 dated 17 July 2012
Delegated authorities for administering
the Capital Works Reserve Fund block allocations
(with effect from 16 July 2012)
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
701
1004CA –
Compensation for surrenders and
-
Director of Lands
(Note 3)
resumptions: miscellaneous
(D of Lands)
1100CA –
Compensation and ex-gratia allowances
-
D of Lands
- ditto -
in respect of projects in the Public Works
Programme
702
2001AX –
Consultants’ fees for feasibility
Permanent Secretary for
Director of Civil
investigations and design and major in-house
Transport and Housing
Engineering and
investigations for Port and Airport Development
(Transport) (PS(T))
Development (DCED)
Strategy (PADS)-related civil engineering projects
2002AX –
Consultants’ fees for feasibility
PS(T)
Director of Highways
investigations and design and major in-house
(DHy)
investigations for PADS-related transport projects
2003AX –
Consultants’ fees for feasibility
Permanent Secretary for
DCED
investigations and design and major in-house
Development (Planning
investigations for PADS-related territorial
and Lands) (PS(PL))
development projects
- 2 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
703
3004GX –
Refurbishment of government buildings
Permanent Secretary for
Director of Architectural
(Note 4)
for items in Category D of the Public Works
Financial Services and
Services (D Arch S)
Programme
the Treasury (Treasury)
(PS(Tsy))
3100GX –
Project feasibility studies, minor
PS(Tsy)
D Arch S
investigations and consultants’ fees for items in
Category D of the Public Works Programme
3101GX –
Minor building works for items in
PS(Tsy)
D Arch S
(Note 5)
Category D of the Public Works Programme
704
4100DX –
Drainage works, studies and
Permanent Secretary for
Director of Drainage
investigations for items in Category D of the Public
the Environment
Services (DDS)
Works Programme
(PS(Env))
705
5001BX –
Landslip preventive measures
- DCED
(Note 6)
5101CX –
Civil engineering works, studies and
Permanent Secretary for
DCED
investigations for items in Category D of the Public
Development (Works)
Works Programme
(PS(W))
5101DX –
Environmental works, studies and
PS(Env) Director
of
(Note 7)
investigations for items in Category D of the Public
Environmental
Works Programme
Protection (DEP)
706
6100TX –
Highway works, studies and investigations PS(T) DHy
(Note 8)
for items in Category D of the Public Works
Programme
- 3 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
707
7014CX –
Rural Public Works Programme
Permanent Secretary for
Director of Home Affairs
Home Affairs (PSHA)
(DHA)
7016CX –
District Minor Works Programme
PSHA DHA
(Note 9)
7100CX –
New towns and urban area works, studies
PS(PL)/PS(W)
DCED
(Note 10)
and investigations for items in Category D of the
Public Works Programme
708
8100BX –
Slope-related capital works for subvented
PS(W)
D Arch S
organisations other than education and medical
subventions
8100EX –
Alterations, additions, repairs and
- Secretary-General,
(Note 11)
improvements to the campuses of the University
University Grants
Grants Committee (UGC)-funded institutions
Committee (SG, UGC)
8100MX –
Hospital Authority - improvement works,
-
Permanent Secretary for
feasibility studies, investigations and pre-contract
Food and Health
consultancy services for building projects
(Health) (PS(Health))
8100QX –
Alterations, additions, repairs and
-
Permanent Secretary for
improvements to education subvented buildings
Education (PS(Ed))
8001SX –
Provisioning of welfare facilities
-
Director of Social
(Note 12)
Welfare (DSW)
- 4 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
709
9100WX –
Waterworks, studies and investigations
PS(W)
Director of Water
for items in Category D of the Public Works
Supplies
Programme
710
A007GX –
New administrative computer systems
- Government
Chief
(Note 13)
Information Officer
(GCIO)
711
B100HX –
Minor housing development related
-
Permanent Secretary for
(Note 7)
works, studies and investigations for items in
Transport and Housing
Category D of the Public Works Programme
(Housing)
Note 1 : For the nine block allocation subheads covered by Note 1, the approving limits of the responsible Permanent Secretaries and Controlling
Officers are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Secretary
$22 million
(c) Controlling Officer
$20 million
(d) Deputy to Controlling Officer (or officer at D3 level)
$12 million
(e) Directorate officer of the vote controlling department
$5 million
(as designated by the Controlling Officer)
- 5 -
Note 2 : For the two block allocation subheads covered by Note 2, the approving limits of the responsible Permanent Secretaries (who serve as
the Controlling Officers) are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Secretary
$22 million
(c) Principal Assistant Secretary
$12 million
(d) Directorate officer of the Policy Bureau
$5 million
(as designated by the Permanent Secretary)
Note 3 :
For
Subheads 1004CA and
1100CA, the D of Lands is authorised to approve expenditure for individual items without limit provided
that the annual allocations for the subheads approved by the Finance Committee is not exceeded. As approved by PS(Tsy) and subject to
figures approved by various internal committees chaired by D3 or D2 officers or at the ex-gratia rates approved by PS(Tsy), the
D of Lands may further delegate his authority to incur expenditure for items exceeding $20 million each to D3 or D2 officers and for
items at or below $20 million each to D1 officers. For details, please refer to Lands Department’s Accounting Circular (LDAC)
No. 5/2001 or future updated LDACs on the delegation of authorities. When approving items, the D of Lands and officers with
delegated authority should comply with relevant statutory and administrative requirements. There are, for example, various formulae
and rates which must be adopted in assessing the levels of payment in respect of resumption and clearance of land. These are set out in
other Circulars, or arise from decisions made by the Chief Executive in Council, the Legislative Council and the Finance Committee.
Note 4 :
For
Subhead 3004GX, the D Arch S is required to prepare a programme of works on an annual basis for the Accommodation Strategy
Group’s approval. D Arch S as the Controlling Officer is authorised to approve expenditure for individual items not exceeding
$30 million provided that the annual allocation for the subhead approved by the Finance Committee is not exceeded.
- 6 -
Note 5 : For
Subhead 3101GX, the approving limits are as follows –
Approving limit per item
(a) DS(Tsy)3, TsyB, on the advice of the Accommodation Strategy
$30 million
Group
(b) D Arch S, on the advice of the Minor Building Works Committee
$20 million (for non-fitting out works and fitting out
works other than those in item (e))
(c) AD(Property Services), Architectural Services Department
$2 million
(for non-fitting out works and fitting out
(Arch SD)
works other than those in item (e))
(d) Senior Maintenance Surveyors, Arch SD
$0.1 million (for non-fitting out works and fitting out
works other than those in item (e))
(e) Government Property Administrator
$20 million (for fitting out works in newly allocated
government accommodation)
Note 6 :
For
Subhead 5001BX, the DCED is authorised to approve expenditure for individual items without limit provided that the annual
allocations for the subhead approved by the Finance Committee is not exceeded; and the Head of the Geotechnical Engineering Office,
up to $20 million per item.
Note 7 : For
Subheads 5101DX and
B100HX, the approving limits are as follows –
Approving limit per item
(a)
Permanent Secretary
$30 million
(b)
Deputy Director of Environmental Protection/Housing
$20 million
(or officer at D3 level or above as designated by the Controlling Officer)
(c)
Assistant Director of Environmental Protection/Housing
$12 million
(or officer at D2 level as designated by the Controlling Officer)
(d)
Directorate officer of Environmental Protection Department/Housing Department
$5 million
(as designated by the Controlling Officer)
- 7 -
Note 8: For
Subhead 6100TX, the approving limits are as follows –
Approving limit per item
(a) PS(T)
$30 million
(b) Deputy Secretary of Transport Branch, Transport and Housing Bureau (THB)
$22 million
(c) DHy
$20 million
(d) Deputy Director of Highways (or officer at D3 level)
$12 million
(e) Directorate officer of HyD (as designated by the DHy)
$5 million
(f) Directorate officer of Traffic Engineering Division, Transport Department
$2 million
(as designated by the DHy)
Note 9: For
Subhead 7016CX, the approving limits are as follows –
Approving limit per item
(a) PSHA
$30 million
(b) DHA/Director of Leisure and Cultural Services
$20 million
(c) Deputy Director of Home Affairs / Leisure and Cultural Services
$12 million
(d) Directorate officer of Home Affairs Department and Leisure and Cultural Services
$5 million
Department (as designated by the Controlling Officer)
Note 10: For
Subhead 7100CX, the approving limits are as follows –
Approving limit per item
(a) PS(PL) (for non-Energizing Kowloon East (EKE)-related items)/
$30 million
PS(W) (for EKE-related items)
(b) Deputy Secretary of Planning and Lands Branch, Development Bureau (DEVB) (for
$22 million
non-EKE-related items)/
Head of Energizing Kowloon East Office, Works Branch, DEVB (for EKE-related items)
(c) DCED
$20 million
(d) Deputy Director (or officer at D3 level) of Civil Engineering and Development
$12 million
(e) Directorate officer of Civil Engineering and Development Department
$5 million
(as designated by the Controlling Officer)
- 8 -
Note 11 : For
Subhead 8100EX, the SG, UGC is authorised to approve any items up to $10 million each; and up to $30 million each where the
item has been endorsed by the UGC. SG,UGC should consult the Secretary for Education (SED) in drawing up the annual estimate for
this subhead and seek SED’s endorsement, where necessary, in authorising expenditure on individual projects.
Note 12 : For
Subhead 8001SX, the DSW is authorised to approve any items up to $30 million each; and Deputy DSW, up to $11 million each.
DSW should consult the Secretary for Labour and Welfare (SLW) in drawing up the annual estimate for this subhead and seek SLW’s
endorsement, where necessary, in authorising expenditure on individual projects.
Note 13 : For
Subhead A007GX, the approving limits are as follows –
Approving limit per item
(a) GCIO/Deputy GCIO
$10 million
(b) Assistant GCIO/Chief Systems Manager
$1 million
Expenditure from this non-works subhead should follow procedures stipulated in Office of the Government Chief Information Officer
(OGCIO) Circular No. 3/2007 of the Commerce, Industry and Technology Bureau or future updated OGCIO Circulars on the
procedures.
Note 14 : For the ambits of individual block allocations, please refer to the Memorandum Note on the Capital Works Reserve Fund in the annual
Estimates.
M E M O
Secretary for Financial Services
From
and the Treasury
To
See Distribution
Ref.
( )
in
TsyB W 00/640-1/1/0
(Attn. :
)
Tel. No.
2810 2913
Fax No. 2147 5240
Total Pages:
2+8
Your Ref.
in
Date
18 January 2013
Dated
Fax No.
Administration of Capital Expenditure Items
under the Capital Works Reserve Fund (CWRF)
On 11 January 2013, the Finance Committee (FC) approved the creation
of a new block allocation
Subhead 6101TX “Universal Accessibility Programme”
under
Head 706, subject to a financial ceiling of $75 million for each Category D
item. Pursuant to FC’s approval, the Secretary for Financial Services and the
Treasury has approved the delegation of authority for the relevant public officers to
approve block allocation items under
Subhead 6101TX. A summary setting out the
scope for each CWRF block allocation, including
Subhead 6101TX, the Permanent
Secretary and Controlling Officer in charge and the level of delegated authorities is at
Annex. The Annex replaces Enclosure 1 to Financial Circular No. 3/2011 with
immediate effect.
2.
Should you have any questions, please call the undersigned or
Ms Yvonne Yau (TsyO(W)) at 2810 2925.
Signed
( Jasmine Choi )
for Secretary for Financial Services and the Treasury
- 2 -
Distribution
CWRF Block Allocations
Controlling Officers and Permanent Secretaries
PS(CT)
PS(Ed)
PS(Env)
PS(H)
PS(Health)
PS(PL)
PS(T)
PS(W)
PSHA
PSLW
D Arch S
D of Lands
DCED
DDS
DEP
DHA
DHy
DSW
DWS
GCIO
SG, UGC
cc
- for information
PSCS
PS(CIT)
PSCMA
PS(F)
PS(FS)
PS for S
Director of Administration
Judiciary Administrator
Commissioner, ICAC
The Ombudsman
Internal
P(A)
P(B)
P(C)
P(E)
P(H)
PEO(G)
Annex to memo ref. TsyB W 00/640-1/1/0 dated 18 January 2013
Enclosure 1 to Financial Circular No. 3/2011 (Replacement on 18 January 2013)
Delegated authorities for administering
the Capital Works Reserve Fund block allocations
(with effect from 17 January 2013)
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
701
1004CA –
Compensation for surrenders and
-
Director of Lands
(Note 3)
resumptions: miscellaneous
(D of Lands)
1100CA –
Compensation and ex-gratia allowances
-
D of Lands
- ditto -
in respect of projects in the Public Works
Programme
702
2001AX –
Consultants’ fees for feasibility
Permanent Secretary for
Director of Civil
investigations and design and major in-house
Transport and Housing
Engineering and
investigations for Port and Airport Development
(Transport) (PS(T))
Development (DCED)
Strategy (PADS)-related civil engineering projects
2002AX –
Consultants’ fees for feasibility
PS(T)
Director of Highways
investigations and design and major in-house
(DHy)
investigations for PADS-related transport projects
2003AX –
Consultants’ fees for feasibility
Permanent Secretary for
DCED
investigations and design and major in-house
Development (Planning
investigations for PADS-related territorial
and Lands) (PS(PL))
development projects
- 2 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
703
3004GX –
Refurbishment of government buildings
Permanent Secretary for
Director of Architectural
(Note 4)
for items in Category D of the Public Works
Financial Services and
Services (D Arch S)
Programme
the Treasury (Treasury)
(PS(Tsy))
3100GX –
Project feasibility studies, minor
PS(Tsy)
D Arch S
investigations and consultants’ fees for items in
Category D of the Public Works Programme
3101GX –
Minor building works for items in
PS(Tsy)
D Arch S
(Note 5)
Category D of the Public Works Programme
704
4100DX –
Drainage works, studies and
Permanent Secretary for
Director of Drainage
investigations for items in Category D of the Public
the Environment
Services (DDS)
Works Programme
(PS(Env))
705
5001BX –
Landslip preventive measures
- DCED
(Note 6)
5101CX –
Civil engineering works, studies and
Permanent Secretary for
DCED
investigations for items in Category D of the Public
Development (Works)
Works Programme
(PS(W))
5101DX –
Environmental works, studies and
PS(Env) Director
of
(Note 7)
investigations for items in Category D of the Public
Environmental
Works Programme
Protection (DEP)
- 3 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
706
6100TX –
Highway works, studies and investigations PS(T) DHy
(Note 8)
for items in Category D of the Public Works
Programme
6101TX –
Universal Accessibility Programme
PS(T) DHy
(Note 9)
707
7014CX –
Rural Public Works Programme
Permanent Secretary for
Director of Home Affairs
Home Affairs (PSHA)
(DHA)
7016CX –
District Minor Works Programme
PSHA DHA
(Note 10)
7100CX –
New towns and urban area works, studies
PS(PL)/PS(W)
DCED
(Note 11)
and investigations for items in Category D of the
Public Works Programme
708
8100BX –
Slope-related capital works for subvented
PS(W)
D Arch S
organisations other than education and medical
subventions
8100EX –
Alterations, additions, repairs and
- Secretary-General,
(Note 12)
improvements to the campuses of the University
University Grants
Grants Committee (UGC)-funded institutions
Committee (SG, UGC)
8100MX –
Hospital Authority - improvement works,
-
Permanent Secretary for
feasibility studies, investigations and pre-contract
Food and Health
consultancy services for building projects
(Health) (PS(Health))
8100QX –
Alterations, additions, repairs and
-
Permanent Secretary for
improvements to education subvented buildings
Education (PS(Ed))
8001SX –
Provisioning of welfare facilities
-
Director of Social
(Note 13)
Welfare (DSW)
- 4 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
709
9100WX –
Waterworks, studies and investigations
PS(W)
Director of Water
for items in Category D of the Public Works
Supplies
Programme
710
A007GX –
New administrative computer systems
- Government
Chief
(Note 14)
Information Officer
(GCIO)
711
B100HX –
Minor housing development related
-
Permanent Secretary for
(Note 7)
works, studies and investigations for items in
Transport and Housing
Category D of the Public Works Programme
(Housing)
Note 1 : For the nine block allocation subheads covered by Note 1, the approving limits of the responsible Permanent Secretaries and Controlling
Officers are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Secretary
$22 million
(c) Controlling Officer
$20 million
(d) Deputy to Controlling Officer (or officer at D3 level)
$12 million
(e) Directorate officer of the vote controlling department
$5 million
(as designated by the Controlling Officer)
- 5 -
Note 2 : For the two block allocation subheads covered by Note 2, the approving limits of the responsible Permanent Secretaries (who serve as
the Controlling Officers) are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Secretary
$22 million
(c) Principal Assistant Secretary
$12 million
(d) Directorate officer of the Policy Bureau
$5 million
(as designated by the Permanent Secretary)
Note 3 :
For
Subheads 1004CA and
1100CA, the D of Lands is authorised to approve expenditure for individual items without limit provided
that the annual allocations for the subheads approved by the Finance Committee is not exceeded. As approved by PS(Tsy) and subject to
figures approved by various internal committees chaired by D3 or D2 officers or at the ex-gratia rates approved by PS(Tsy), the
D of Lands may further delegate his authority to incur expenditure for items exceeding $20 million each to D3 or D2 officers and for
items at or below $20 million each to D1 officers. For details, please refer to Lands Department’s Accounting Circular (LDAC)
No. 5/2001 or future updated LDACs on the delegation of authorities. When approving items, the D of Lands and officers with
delegated authority should comply with relevant statutory and administrative requirements. There are, for example, various formulae
and rates which must be adopted in assessing the levels of payment in respect of resumption and clearance of land. These are set out in
other Circulars, or arise from decisions made by the Chief Executive in Council, the Legislative Council and the Finance Committee.
Note 4 :
For
Subhead 3004GX, the D Arch S is required to prepare a programme of works on an annual basis for the Accommodation Strategy
Group’s approval. D Arch S as the Controlling Officer is authorised to approve expenditure for individual items not exceeding
$30 million provided that the annual allocation for the subhead approved by the Finance Committee is not exceeded.
- 6 -
Note 5 : For
Subhead 3101GX, the approving limits are as follows –
Approving limit per item
(a) DS(Tsy)3, TsyB, on the advice of the Accommodation Strategy
$30 million
Group
(b) D Arch S, on the advice of the Minor Building Works Committee
$20 million (for non-fitting out works and fitting out
works other than those in item (e))
(c) AD(Property Services), Architectural Services Department
$2 million
(for non-fitting out works and fitting out
(Arch SD)
works other than those in item (e))
(d) Senior Maintenance Surveyors, Arch SD
$0.1 million (for non-fitting out works and fitting out
works other than those in item (e))
(e) Government Property Administrator
$20 million (for fitting out works in newly allocated
government accommodation)
Note 6 :
For
Subhead 5001BX, the DCED is authorised to approve expenditure for individual items without limit provided that the annual
allocations for the subhead approved by the Finance Committee is not exceeded; and the Head of the Geotechnical Engineering Office,
up to $20 million per item.
Note 7 : For
Subheads 5101DX and
B100HX, the approving limits are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Director of Environmental Protection/Housing
$20 million
(or officer at D3 level or above as designated by the Controlling Officer)
(c) Assistant Director of Environmental Protection/Housing
$12 million
(or officer at D2 level as designated by the Controlling Officer)
(d) Directorate officer of Environmental Protection Department/Housing Department
$5 million
(as designated by the Controlling Officer)
- 7 -
Note 8: For
Subhead 6100TX, the approving limits are as follows –
Approving limit per item
(a) PS(T)
$30 million
(b) Deputy Secretary of Transport Branch, Transport and Housing Bureau (THB)
$22 million
(c) DHy
$20 million
(d) Deputy Director of Highways (or officer at D3 level)
$12 million
(e) Directorate officer of HyD (as designated by the DHy)
$5 million
(f) Directorate officer of Traffic Engineering Division, Transport Department
$2 million
(as designated by the DHy)
Note 9: For
Subhead 6101TX, the approving limits are as follows –
Approving limit per item
(a) PS(T)
$75 million
(b) Deputy Secretary of Transport Branch, THB
$55 million
(c) DHy / DCED
$50 million
(d) Deputy Director (or officer at D3 level) of Highways / Civil Engineering and Development
$30 million
(e) Directorate officer of Highways Department / Civil Engineering and Development Department
$12 million
(as designated by DHy)
Note 10: For
Subhead 7016CX, the approving limits are as follows –
Approving limit per item
(a) PSHA
$30 million
(b) DHA/Director of Leisure and Cultural Services
$20 million
(c) Deputy Director of Home Affairs / Leisure and Cultural Services
$12 million
(d) Directorate officer of Home Affairs Department and Leisure and Cultural Services
$5 million
Department (as designated by the Controlling Officer)
- 8 -
Note 11: For
Subhead 7100CX, the approving limits are as follows –
Approving limit per item
(a) PS(PL) (for non-Energizing Kowloon East (EKE)-related items)/
$30 million
PS(W) (for EKE-related items)
(b) Deputy Secretary of Planning and Lands Branch, Development Bureau (DEVB) (for
$22 million
non-EKE-related items)/
Head of Energizing Kowloon East Office, Works Branch, DEVB (for EKE-related items)
(c) DCED
$20 million
(d) Deputy Director (or officer at D3 level) of Civil Engineering and Development
$12 million
(e) Directorate officer of Civil Engineering and Development Department
$5 million
(as designated by the Controlling Officer)
Note 12 : For
Subhead 8100EX, the SG, UGC is authorised to approve any items up to $10 million each; and up to $30 million each where the
item has been endorsed by the UGC. SG,UGC should consult the Secretary for Education (SED) in drawing up the annual estimate for
this subhead and seek SED’s endorsement, where necessary, in authorising expenditure on individual projects.
Note 13 : For
Subhead 8001SX, the DSW is authorised to approve any items up to $30 million each; and Deputy DSW, up to $11 million each.
DSW should consult the Secretary for Labour and Welfare (SLW) in drawing up the annual estimate for this subhead and seek SLW’s
endorsement, where necessary, in authorising expenditure on individual projects.
Note 14 : For
Subhead A007GX, the approving limits are as follows –
Approving limit per item
(a) GCIO/Deputy GCIO
$10 million
(b) Assistant GCIO/Chief Systems Manager
$1 million
Expenditure from this non-works subhead should follow procedures stipulated in Office of the Government Chief Information Officer
(OGCIO) Circular No. 3/2007 of the Commerce, Industry and Technology Bureau or future updated OGCIO Circulars on the
procedures.
Note 15 : For the ambits of individual block allocations, please refer to the Memorandum Note on the Capital Works Reserve Fund in the annual
Estimates.
M E M O
Secretary for Financial Services
From
and the Treasury
To
See Distribution
Ref.
( )
in TsyB W 00/640-1/1/0 Pt. 3
(Attn. :
)
Tel. No.
2810 2913
Fax No.
2147 5240
Total Pages:
2+8
Your Ref.
in
Date
20 May 2013
Dated
Fax No.
Administration of Capital Expenditure Items
under the Capital Works Reserve Fund (CWRF)
On 10 May 2013, the Finance Committee (FC) approved the creation of a
new block allocation
Subhead 7017CX “Signature Project Scheme” under
Head
707, subject to a financial ceiling of $30 million for each Category D item. Pursuant
to FC’s approval, the Secretary for Financial Services and the Treasury has approved
the delegation of authority for the relevant public officers to approve block allocation
items under
Subhead 7017CX. A summary setting out the scope for each CWRF
block allocation, including
Subhead 7017CX, the Permanent Secretary and
Controlling Officer in charge and the level of delegated authorities is at
Annex. The
Annex replaces Enclosure 1 to Financial Circular No. 3/2011 with immediate effect.
2.
Should you have any questions, please call the undersigned or Yvonne
Yau (TsyO(W)) at 2810 2925.
Signed
( Jasmine Choi )
for Secretary for Financial Services and the Treasury
- 2 -
Distribution
CWRF Block Allocations
Controlling Officers and Permanent Secretaries
PS(CT)
PS(Ed)
PS(Env)
PS(H)
PS(Health)
PS(PL)
PS(T)
PS(W)
PSHA
PSLW
D Arch S
D of Lands
DCED
DDS
DEP
DHA
DHy
DSW
DWS
GCIO
SG, UGC
cc
- for information
PSCS
PS(CIT)
PSCMA
PS(F)
PS(FS)
PS for S
Director of Administration
Judiciary Administrator
Commissioner, ICAC
The Ombudsman
Internal
P(A)
P(B)
P(C)
P(E)
P(H)
PEO(G)
Annex
Enclosure 1 to Financial Circular No. 3/2011 (Replacement in May 2013)
Delegated authorities for administering
the Capital Works Reserve Fund block allocations
(with effect from 15 May 2013)
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
701
1004CA –
Compensation for surrenders and
-
Director of Lands
(Note 3)
resumptions: miscellaneous
(D of Lands)
1100CA –
Compensation and ex-gratia allowances
-
D of Lands
- ditto -
in respect of projects in the Public Works
Programme
702
2001AX –
Consultants’ fees for feasibility
Permanent Secretary for
Director of Civil
investigations and design and major in-house
Transport and Housing
Engineering and
investigations for Port and Airport Development
(Transport) (PS(T))
Development (DCED)
Strategy (PADS)-related civil engineering projects
2002AX –
Consultants’ fees for feasibility
PS(T)
Director of Highways
investigations and design and major in-house
(DHy)
investigations for PADS-related transport projects
2003AX –
Consultants’ fees for feasibility
Permanent Secretary for
DCED
investigations and design and major in-house
Development (Planning
investigations for PADS-related territorial
and Lands) (PS(PL))
development projects
- 2 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
703
3004GX –
Refurbishment of government buildings
Permanent Secretary for
Director of Architectural
(Note 4)
for items in Category D of the Public Works
Financial Services and
Services (D Arch S)
Programme
the Treasury (Treasury)
(PS(Tsy))
3100GX –
Project feasibility studies, minor
PS(Tsy)
D Arch S
investigations and consultants’ fees for items in
Category D of the Public Works Programme
3101GX –
Minor building works for items in
PS(Tsy)
D Arch S
(Note 5)
Category D of the Public Works Programme
704
4100DX –
Drainage works, studies and
Permanent Secretary for
Director of Drainage
investigations for items in Category D of the Public
the Environment
Services (DDS)
Works Programme
(PS(Env))
705
5001BX –
Landslip preventive measures
- DCED
(Note 6)
5101CX –
Civil engineering works, studies and
Permanent Secretary for
DCED
investigations for items in Category D of the Public
Development (Works)
Works Programme
(PS(W))
5101DX –
Environmental works, studies and
PS(Env) Director
of
(Note 7)
investigations for items in Category D of the Public
Environmental
Works Programme
Protection (DEP)
- 3 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
706
6100TX –
Highway works, studies and investigations PS(T) DHy
(Note 8)
for items in Category D of the Public Works
Programme
6101TX –
Universal Accessibility Programme
PS(T) DHy
(Note 9)
707
7014CX –
Rural Public Works Programme
Permanent Secretary for
Director of Home Affairs
Home Affairs (PSHA)
(DHA)
7016CX –
District Minor Works Programme
PSHA DHA
(Note 10)
7017CX –
Signature Project Scheme
PSHA DHA
(Note 11)
7100CX –
New towns and urban area works, studies
PS(PL)/PS(W)
DCED
(Note 12)
and investigations for items in Category D of the
Public Works Programme
708
8100BX –
Slope-related capital works for subvented
PS(W)
D Arch S
organisations other than education and medical
subventions
8100EX –
Alterations, additions, repairs and
- Secretary-General,
(Note 13)
improvements to the campuses of the University
University Grants
Grants Committee (UGC)-funded institutions
Committee (SG, UGC)
8100MX –
Hospital Authority - improvement works,
-
Permanent Secretary for
feasibility studies, investigations and pre-contract
Food and Health
consultancy services for building projects
(Health) (PS(Health))
8100QX –
Alterations, additions, repairs and
-
Permanent Secretary for
improvements to education subvented buildings
Education (PS(Ed))
- 4 -
Generic Model of
Permanent
Controlling
Approving Limits
Head
Block Allocation
Secretary
Officer
A
B
Others
(Note 1)
(Note 2)
8001SX –
Provisioning of welfare facilities
-
Director of Social
(Note 14)
Welfare (DSW)
709
9100WX –
Waterworks, studies and investigations
PS(W)
Director of Water
for items in Category D of the Public Works
Supplies
Programme
710
A007GX –
New administrative computer systems
- Government
Chief
(Note 15)
Information Officer
(GCIO)
711
B100HX –
Minor housing development related
-
Permanent Secretary for
(Note 7)
works, studies and investigations for items in
Transport and Housing
Category D of the Public Works Programme
(Housing)
Note 1 : For the nine block allocation subheads covered by Note 1, the approving limits of the responsible Permanent Secretaries and Controlling
Officers are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Secretary
$22 million
(c) Controlling Officer
$20 million
(d) Deputy to Controlling Officer (or officer at D3 level)
$12 million
(e) Directorate officer of the vote controlling department
$5 million
(as designated by the Controlling Officer)
- 5 -
Note 2 : For the two block allocation subheads covered by Note 2, the approving limits of the responsible Permanent Secretaries (who serve as
the Controlling Officers) are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Secretary
$22 million
(c) Principal Assistant Secretary
$12 million
(d) Directorate officer of the Policy Bureau
$5 million
(as designated by the Permanent Secretary)
Note 3 :
For
Subheads 1004CA and
1100CA, the D of Lands is authorised to approve expenditure for individual items without limit provided
that the annual allocations for the subheads approved by the Finance Committee is not exceeded. As approved by PS(Tsy) and subject to
figures approved by various internal committees chaired by D3 or D2 officers or at the ex-gratia rates approved by PS(Tsy), the
D of Lands may further delegate his authority to incur expenditure for items exceeding $20 million each to D3 or D2 officers and for
items at or below $20 million each to D1 officers. For details, please refer to Lands Department’s Accounting Circular (LDAC)
No. 5/2001 or future updated LDACs on the delegation of authorities. When approving items, the D of Lands and officers with
delegated authority should comply with relevant statutory and administrative requirements. There are, for example, various formulae
and rates which must be adopted in assessing the levels of payment in respect of resumption and clearance of land. These are set out in
other Circulars, or arise from decisions made by the Chief Executive in Council, the Legislative Council and the Finance Committee.
Note 4 :
For
Subhead 3004GX, the D Arch S is required to prepare a programme of works on an annual basis for the Accommodation Strategy
Group’s approval. D Arch S as the Controlling Officer is authorised to approve expenditure for individual items not exceeding
$30 million provided that the annual allocation for the subhead approved by the Finance Committee is not exceeded.
- 6 -
Note 5 : For
Subhead 3101GX, the approving limits are as follows –
Approving limit per item
(a) DS(Tsy)3, TsyB, on the advice of the Accommodation Strategy
$30 million
Group
(b) D Arch S, on the advice of the Minor Building Works Committee
$20 million (for non-fitting out works and fitting out
works other than those in item (e))
(c) AD(Property Services), Architectural Services Department
$2 million
(for non-fitting out works and fitting out
(Arch SD)
works other than those in item (e))
(d) Senior Maintenance Surveyors, Arch SD
$0.1 million (for non-fitting out works and fitting out
works other than those in item (e))
(e) Government Property Administrator
$20 million (for fitting out works in newly allocated
government accommodation)
Note 6 :
For
Subhead 5001BX, the DCED is authorised to approve expenditure for individual items without limit provided that the annual
allocations for the subhead approved by the Finance Committee is not exceeded; and the Head of the Geotechnical Engineering Office,
up to $20 million per item.
Note 7 : For
Subheads 5101DX and
B100HX, the approving limits are as follows –
Approving limit per item
(a) Permanent Secretary
$30 million
(b) Deputy Director of Environmental Protection/Housing
$20 million
(or officer at D3 level or above as designated by the Controlling Officer)
(c) Assistant Director of Environmental Protection/Housing
$12 million
(or officer at D2 level as designated by the Controlling Officer)
(d) Directorate officer of Environmental Protection Department/Housing Department
$5 million
(as designated by the Controlling Officer)
- 7 -
Note 8: For
Subhead 6100TX, the approving limits are as follows –
Approving limit per item
(a) PS(T)
$30 million
(b) Deputy Secretary of Transport Branch, Transport and Housing Bureau (THB)
$22 million
(c) DHy
$20 million
(d) Deputy Director of Highways (or officer at D3 level)
$12 million
(e) Directorate officer of Highways Department (HyD) (as designated by the DHy)
$5 million
(f) Directorate officer of Traffic Engineering Division, Transport Department
$2 million
(as designated by the DHy)
Note 9: For
Subhead 6101TX, the approving limits are as follows –
Approving limit per item
(a) PS(T)
$75 million
(b) Deputy Secretary of Transport Branch, THB
$55 million
(c) DHy / DCED
$50 million
(d) Deputy Director (or officer at D3 level) of Highways / Civil Engineering and Development
$30 million
(e) Directorate officer of HyD / Civil Engineering and Development Department (CEDD) (as
$12 million
designated by DHy)
Note 10: For
Subhead 7016CX, the approving limits are as follows –
Approving limit per item
(a) PSHA
$30 million
(b) DHA/Director of Leisure and Cultural Services
$20 million
(c) Deputy Director of Home Affairs (DDHA) / Deputy Director of Leisure and Cultural Services
$12 million
(d) Directorate officer of Home Affairs Department and Leisure and Cultural Services
$5 million
Department (as designated by the Controlling Officer)
- 8 -
Note 11: For
Subhead 7017CX, the approving limits are as follows –
Approving limit per item
(a) PSHA
$30 million
(b) DHA
$20 million
(c) DDHA
$12 million
(d) Assistant Director of Home Affairs (2)
$5 million
Note 12: For
Subhead 7100CX, the approving limits are as follows –
Approving limit per item
(a) PS(PL) (for non-Energizing Kowloon East (EKE)-related items)/
$30 million
PS(W) (for EKE-related items)
(b) Deputy Secretary of Planning and Lands Branch, Development Bureau (DEVB) (for
$22 million
non-EKE-related items)/
Head of Energizing Kowloon East Office, Works Branch, DEVB (for EKE-related items)
(c) DCED
$20 million
(d) Deputy Director (or officer at D3 level) of Civil Engineering and Development
$12 million
(e) Directorate officer of CEDD (as designated by the Controlling Officer)
$5 million
Note 13 : For
Subhead 8100EX, the SG, UGC is authorised to approve any items up to $10 million each; and up to $30 million each where the
item has been endorsed by the UGC. SG,UGC should consult the Secretary for Education (SED) in drawing up the annual estimate for
this subhead and seek SED’s endorsement, where necessary, in authorising expenditure on individual projects.
Note 14 : For
Subhead 8001SX, the DSW is authorised to approve any items up to $30 million each; and Deputy DSW, up to $11 million each.
DSW should consult the Secretary for Labour and Welfare (SLW) in drawing up the annual estimate for this subhead and seek SLW’s
endorsement, where necessary, in authorising expenditure on individual projects.
- 9 -
Note 15 : For
Subhead A007GX, the approving limits are as follows –
Approving limit per item
(a) GCIO/Deputy GCIO
$10 million
(b) Assistant GCIO/Chief Systems Manager
$1 million
Expenditure from this non-works subhead should follow procedures stipulated in Office of the Government Chief Information Officer
(OGCIO) Circular No. 3/2007 of the Commerce, Industry and Technology Bureau or future updated OGCIO Circulars on the
procedures.
Note 16 : For the ambits of individual block allocations, please refer to the Memorandum Note on the Capital Works Reserve Fund in the annual
Estimates.