PUBLIC FINANCE ORDINANCE

PUBLIC FINANCE ORDINANCE

LAWS OF HONG KONG

PUBLIC FINANCE ORDINANCE

CHAPTER 2





CHAPTER 2

PUBLIC FINANCE ORDINANCE

ARRANGEMENT OF SECTIONS

Section .................................. page

PART 1

PRELIMINARY

1. Short title................................ ... ... ... ... ... ... ... ... 3
2. Interpretation............................. ... ... ... ... ... ... ... ... 3

3. The general revenue................. ... ... ... ... ... ... ... ... ... 4

4. Charges on the general revenue ... ... ... ... ... ... ... ... ... ... ... 4

PART 11

THE ESTIMATES OF REVENUE AND EXPENDITURE AND APPROPRIATION

5. Annual estimates ....................... ... ... ... ... ... ... ... ... 4

6. Approval of estimates of expenditure and appropriation... ... ... ... ... ... 5
7. Authorization of expenditure in advance of appropriation ... ... ... ... ... 5
8. Changes to the approved estimates of expenditure ... ... ... ... ... ... ... 6
9. Supplementary Appropriation ... ... ... ... ... ... ... ... ... ... ... 7

PART III

CONTROL AND MANAGEMENT

10. General powers and duties of the Financial Secretary ... ... ... ... ... ... 7
11. Power to make regulations and give directions, etc . ... ... ... ... ... ... 7
12. Controlling officers ... ... ... ... ... ... ... ... ... ... ... ... ... 8
13. Controlling officers to obey regulations and directions, etc . ... ... ... ... ... 8
14. Authority of controlling officers to incur expenditure . ... ... ... ... 8
15. Further authority of controlling officers in respect of urgent expenditure ... ... 8

PART IV

RECEIPT, PAYMENT AND CUSTODY OF PUBLIC MONEYS

16. Duties of Director of Accounting Services ... ... ... ... ... ... ... ... ... 9
17. Prompt collection of moneys ... ... ... ... ... ... ... ... ... ... ... 10
18. Payment of public moneys ... ... ... ... ... ... ... ... ... ... ... ... 10
19. Payment of certain moneys to be authorized by warrant ... ... ... ... ... ... 10
20. Recoverable advances ... ... ... ... ... ... ... ... ... ... ... ... ... 10
21. Advances to meet urgent need for payment ... ... ... ... ... .. 1 ... ... 10

22. Imprests .............................. ... ... ... ... ... ... ... ... 11
23. Deposits .............................. ... ... ... ... ... ... ... ... 12

24. Donations and grants ... ... ... ... ... ... ... ... ... ... ... ... ... 12

25. Banking ............................... ... ... ... ... ... ... ... ... 12

26. Investment of moneys ... ... ... ... ... ... ... ... ... ... ... ... ... 12

27. Borrowing powers and loans... 1 ... ... ... ... ... ... ... ... ... 13





Section......11.............................. Page

28..........Guarantees ........................ ... ... ... ... ... ... ... ... ... 13

29...............Establishment of funds .... ... ... ... ... ... ... ... ... ... ... ... 13

30.................Special suspense accounts ... ... ... ... ... ... ... ... ... ... ... 13

31. Appropriations and warrants to lapse at close of financial year ... ... ... ... 14

PART V

SURCHARGE

32...............Power to surcharge ........ ... ... ... ... ... ... ... ... ... ... 14

33..........................Notification of surcharge and right of appeal ... ... ... ... ... ... ... 15

34.................Appeal against surcharge ... ... ... ... ... ... ... ... ... ... ... 15
35.................Withdrawal of surcharge .... ... ... ... ... ... ... ... ... ... ... 15

36...............Collection of surcharge ...... ... ... ... ... ... ... ... ... ... ... ... 15

37........................Surcharge in respect of deceased persons ... ... ... ... ... ... ... ... 16

PART VI

MISCELLANEOUS

38. Abandonment of claims, etc. and write-off of public moneys and stores ... ... 16

39.....................Disposal of serviceable stores, etc . ... ... ... ... ... ... ... ... ... 17
40.....................Power of Governor to give directions ... ... ... ... ... ... ... ... ... 17

41........Trusts ........................... ... ... ... ... ... ... ... ... ... 17

42..........Transitional ............ ... ... ... ... ... ... ... ... ... ... ... 17

First Schedule. Funds ...................... ... ... ... ... ... ... ... ... 18

Second Schedule. Special Suspense Accounts .... ... ... ... ... ... ... 1. 18





CHAPTER 2

PUBLIC FINANCE

To provide for the control and management of the public finances of
Hong Kong and for incidental and connected put-poses.

[1 April 1983.1

PART 1

PRELIMINARY

1. This Ordinance may be cited as the Public Finance Ordinance.

2. In this Ordinance, unless the context otherwise requires-

'Appropriation Bill' and 'Appropriation Ordinance' means a Bill or
Ordinance, as the case may be, which provides for appropriation
from the general revenue in respect of the approved estimates of
expenditure on the services of the Government for a financial year;

'approved estimates of expenditure' means the estimates of expenditure
deemed to be approved under section 6;

'controlling officer' in relation to a head or subhead means the officer
designated as controlling officer of that head or subhead under
section 12;

'Director of Audit' means the Director of Audit appointed under
section 3 of the Audit Ordinance;

,,enactment' includes an imperial enactment;

'expenditure' includes expenditure on the services of the Government
required to be met under any enactment;

'Finance Committee' means the Finance Committee of the Legislative
Council established under the Standing Orders of the Legislative
Council;

'general revenue' means moneys which under this Ordinance or any
other enactment are to be paid into or to form part of the general
revenue;

'head' means a head of expenditure;

'public moneys' means

(a) the general revenue;

(b)any moneys which art accounted for, in whole or in part, in
the books or records of account of





(i) the Director tor of Accounting Services;

(ii) the Re Registrar General in his capacity as the Registrar
General, the Land Officer, the Registrar of Companies, the
Registrar of Trade Marks, the Registrar of Patents, the
Official R Receiver the Official Solicitor or the Official Trustee;
or

(iii) the Re Registrar of the Supreme Court in his capacity as
the Registrar the Official Administrator or the Master in
Lunacy; and

(c)any other moneys which the Governor may declare in writing
to be public moneys for the purposes of this Ordinance;

'subhead' means a subhead of expenditure;

'Supplementary Appropriation Bill' and 'Supplementary Appropriation
Ordinance' means a Bill or Ordinance, as the case may be, which
provides for appropriation from the general revenue in
supplementation of the appropriation already made by an
Appropriation Ordinance.

3. (1) Except where otherwise provided by or under this Ordinance
or any other enactment any moneys raised or received for the purposes
of the Government shall form part of the general revenue.

Where a refund or drawback of such moneys is made in the
financial ear in which they are collected, the moneys required for the
refund drawback shall thereupon cease to form part of the general reven

(3) For the avoidance of doubt it is hereby declared that the



reference in subsection (1) to moneys raised or received for the
purposes of the Government does not include moneys held on trust.

4. No expenditure shall be charged on the general revenue except
as provided by or under this Ordinance or any other enactment.

PART 11

THE ESTIMATES OF REVENUE AND
EXPENDITURE.
AND APPROPRIATION

5. (1) The Financial Secretary shall cause to be prepared in each
financial year estimates of the revenue and expenditure of the
Government for the next following financial year, and shall cause such
estimates to be laid before the Legislative Council before or as soon as
practicable after the commencement of the financial year to which they
relate.





(2) Subject to subsection (3), the estimates of revenue and
expenditure shall be in such form as the Financial Secretary may from
time to time direct.

(3) The estimates of expenditure shall-

(a)classify expenditure under heads and subheads with the ambit
of each head described;

(b)in respect of each head show the estimated total expenditure,
the provision sought in respect of each subhead, the
establishment of posts (if any), and the limit (if any) to the
commitments which may be entered into in respect of
expenditure which is not annually recurrent; and

(c)specify the controlling officer designated in respect of each
head and subhead under section 12.

(4) Where there is a requirement under any enactment that
expenditure be met from the general revenue, provision for such
expenditure shall be included in the estimates of expenditure for the
purposes of this Part, but without prejudice to the validity or effect of
any such requirement.

6. (1) The heads contained in the estimates of expenditure for a
financial year shall be included in an Appropriation Bill which shall be
introduced into the Legislative Council at the same time as the
estimates.

(2) Upon the enactment of the Appropriation Ordinance the
estimates of expenditure for the financial year to which the Ordinance
relates shall be deemed to be approved to the extent that they are
provided for in the Ordinance and shall have effect from the first day of
such financial year.

(3) Expenditure for the financial year on the services of the
Government shall, subject to this Ordinance, be arranged in accordance
with the heads and subheads and be limited by the provision in each
subhead shown in the estimates of expenditure as approved or as may
subsequently be changed from time to time in accordance with section
8.

7. (1) The Legislative Council may, in advance of an Appropriation
Ordinance, by resolution authorize expenditure for the services of the
Government in respect of a financial year to be charged on the general
revenue, in accordance with this Ordinance and subject to such
limitations and conditions as may be specified in the resolution.

(2) Expenditure charged on the general revenue pursuant to a
resolution under this section shall be arranged in accordance with the
heads and subheads shown in the estimates of expenditure laid under
section 5 and the provisions of this Ordinance shall, for the purposes of
this subsection and subject to such conditions and limitations as may
be specified in the resolution, apply to such estimates as though they
were the approved estimates of expenditure.





(3) Expenditure charged on the general revenue pursuant to a
resolution under this section shall be set off against the amounts
respectively provided in the Appropriation Ordinance upon the same
coming into operation.

8. (1) Subject to this section, no changes shall be made to the
approved estimates of expenditure except with the approval of the
Finance Committee upon a proposal of the Financial Secretary.

(2) Without limiting the generality of subsection (1) such changes
may provide for all or any of the following matters

(a) the creation of new heads or subheads;

(b) supplementary provision in approved or new subheads;

(c) variations in the establishments of posts;

(d)increases in the limit to the commitments which may be
entered into in respect of expenditure which is not annually
recurrent.

(3) The Finance Committee may delegate to the Financial Secretary
the power to approve changes subject to such conditions, exceptions
and limitations as are specified in the delegation.

(4) The Financial Secretary, where a delegation by the Finance
Committee under subsection (3) so provides, and subject to such
conditions, exceptions and limitations as are specified in the delegation.,
may further delegate his power to approve changes to any public
officer.

(5) A delegation to any public officer under subsection (4) shall be
subject to such further conditions, exceptions and limitations as the
Financial Secretary may specify.

(6) Nothing in subsection (1) shall be construed as limiting or
affecting--

(a)the power of the Governor to make any proposal, or allow or
direct any proposal to be made, to the Legislative Council, the
object or effect of which is to require a change to the
approved estimates of expenditure; or

(b)a requirement under any enactment that expenditure be met
from the general revenue.

(7) The Financial Secretary shall cause such changes to be made to
the approved estimates of expenditure as are necessary in respect of
any

(a)approval given under subsection (1), (3) or (4);

(b)expenditure pursuant to a proposal referred to in subsection
(6)(a); or

(c)requirement referred to in subsection (6)(b) not otherwise
provided for by approval under this section.





(8) The Financial Secretary shall at the end of each quarter of
the financial year or as soon as practicable thereafter-

(a)report to the Finance Committee changes made to the
approved estimates of expenditure in that quarter upon
approval by him or by any public officer pursuant to a
delegation under subsection (3) or (4), as the case may be;
and

(b)table in the Legislative Council a summary of all changes
made to the approved estimates of expenditure in that
quarter under this section.

(9) Without prejudice to section 9, expenditure in respect of
which a change to the approved estimates is made under this section
shall be charged on the general revenue notwithstanding that there
has been no appropriation in respect thereof by an Appropriation
Ordinance.

9. If at the close of account for any financial year it is found
that expenditure charged to any head is in excess of the sum
appropriated for that head by an Appropriation Ordinance, the
excess shall be included in a Supplementary Appropriation Bill
which shall be introduced into the Legislative Council as soon as
practicable after the close of the financial year to which the excess
expenditure relates.

PART III

CONTROL AND MANAGEMENT

10. The Financial Secretary shall, subject to this Ordinance
and any other enactment, have the management of the finances of
the Government and the supervision, control and direction of all
matters relating to the financial affairs of the Government.

11. (1) Without prejudice to any other provision of this
Ordinance, the Financial Secretary may make such administrative
regulations and give such administrative directions and instructions
not inconsistent with this Ordinance as may appear to him to be
necessary or expedient for the better carrying out of the provisions
and purposes of this Ordinance and for the safety, economy and
advantage of public moneys and Government property.

(2) Any regulations made or directions and instructions given
by the Governor or by any person authorized by him, for purposes
similar to those in respect of which regulations, directions and
instructions may be made or given under subsection (1), and which
are in force at the commencement of this Ordinance, shall, in so far
as they are not inconsistent with this Ordinance, remain in force and
shall be deemed for all purposes to have been made or given under
this section and to be liable to revocation or amendment hereunder.





12. (1) Estimates of expenditure laid before the Legislative Council
shall designate a controlling officer in respect of each head and
subhead.

(2) Subject to section 14(5), a controlling officer shall be
responsible and accountable for all expenditure from any head or
subhead for which he is the controlling officer, and for all public
moneys and Government property in respect of the department or
service for which he is responsible.

13. Every controlling officer shall obey all regulations made and
directions or instructions given by the Financial Secretary under section
11 and shall, if so required, account to the Financial Secretary for the
performance of his duties as controlling officer.

14. (1) Subject to any regulations made or directions or instructions
given by the Financial Secretary under section 11 and to any
reservation made by the Financial Secretary under subsection (3), a
controlling officer may, in accordance with this Ordinance, incur
expenditure and authorize expenditure to be incurred against any
provision shown in any subhead for which he is the controlling officer.

(2) No expenditure shall be incurred against any provision shown
in any subhead except by or under the authority of the controlling
officer.

(3) The Financial Secretary may, in writing, reserve the whole or
any part of any provision shown in any subhead and for so long as
such reservation remains in force no expenditure shall be incurred
against the provision reserved.

(4) A controlling officer may, in respect of any subhead for which
he is the controlling officer, by allocation warrant under his hand
authorize any other controlling officer to incur expenditure or authorize
expenditure to be incurred against any provision shown in that subhead

(a)for any purpose within the ambit of that subhead; and

(b)in accordance with the terms of the allocation warrant.

(5) The controlling officer to whom an allocation warrant is issued
under subsection (4) shall be responsible and accountable for any
expenditure incurred under the warrant as if he were the controlling
officer designated in respect thereof under section 12.

15. (1) Where an urgent need has arisen for expenditure to be
incurred which

(a)requires a change to the approved estimates of expenditure in
respect of matters referred to in section 8(2)(b) or (d); and

(b)in the opinion of a controlling officer cannot be deferred until
the necessary change is made in accordance with section 8
without serious detriment to the public interest,





the controlling officer may, on his personal responsibility, incur the
expenditure in anticipation of such change.

(2) As soon as practicable after incurring expenditure under
subsection (1) the controlling officer shall report the matter to the
Financial Secretary for the purpose of having the necessary change
made to the approved estimates of expenditure.

(3) Where the necessary change to the approved estimates of
expenditure is not made in accordance with section 8. the expenditure
incurred shall not be charged on the general revenue but shall remain
the personal responsibility of the controlling officer who incurred the
expenditure.

PART IV

RECEIPT, PAYMENT AND CUSTODY OF PUBLIC MONEYS

16. (1) The Director of Accounting Services shall be responsible for
the compilation and supervision of the accounts of the Government, for
the management of accounting operations and procedures, and for
ensuring that all regulations_ directions or instructions made or given
under this Ordinance relating thereto and in respect of the safe custody
of public moneys and its accounting are complied with.

(2) Without prejudice to the generality of his duties under
subsection (1) and the powers conferred on the Financial Secretary by
section 11 the Director of Accounting Services shall

(a)ensure that adequate arrangements are made for bringing
promptly and properly to account all public moneys received
and paid by the Government;

(b)pay such sums from public moneys as he is authorized to pay
under this Ordinance or any other enactment;

(c)ensure, in so far as is practicable, that adequate arrangements
are made for the safe custody of public moneys; and

(d)bring to the notice of the Financial Secretary and the Director
of Audit, in writing, any material defect in departmental
control of revenue, expenditure, cash, stamps, securities;
stores and other Government property which may come to his
notice and any persistent breaches of regulations, directions
or instructions made or given under this Ordinance.

(3) Subject to the provisions of any enactment, in the exercise of
his duties the Director of Accounting Services shall be entitled to
inspect all offices and shall have access to all records, books, vouchers,
documents and receipts relating to public moneys and to all cash,
stamps, securities, stores and any other Government property in the
possession of any public officer.





(4) The Director of Accounting Services may, in writing,
delegate to any public officer any of the powers conferred upon him
by subsection (3).

17. Any public officer responsible for the collection of moneys
due to the Government shall collect such moneys promptly and in
full unless authorized by the Director of Accounting Services or
under any enactment to defer collection or to arrange collection by
instalments.

18. No public officer shall make any payment of public
moneys unless he is authorized to do so-

(a)by warrant issued under section 19, 20, 21, 22 or 29 or by
regulations, directions or instructions made or given under
this Ordinance; or

(b) by any other enactment.

19. (1) Upon the coming into operation of an Appropriation
Ordinance, the Financial Secretary shall authorize the Director of
Accounting Services by general warrant under his hand to pay from
the general revenue such sums as may be required to meet expendi-
ture in accordance with that Ordinance.

(2) Upon the making by the Legislative Council of a resolu-
tion under section 7, the Financial Secretary shall authorize the
Director of Accounting Services by vote on account warrant under
his hand to pay from the general revenue such sums as may be
required to meet expenditure in accordance with the resolution.

(3) Upon the making of a change to the approved estimates of
expenditure -in accordance with section 8, the Financial Secretary
shall authorize the Director of Accounting Services by supple-
mentary warrant under his hand to pay from the general revenue, in
accordance with the change made, such sums as may be required to
meet expenditure from any head in excess of the sum appropriated
by the Appropriation Ordinance for that head.

20. Subject to the provisions of any enactment, the Financial
Secretary may, by advances warrant under his hand, authorize the
Director of Accounting Services to pay from public moneys such
sums as may be necessary for the purpose of making advances which
are recoverable and the amount recovered in each case shall be set
off against the sum advanced.

21. (1) Subject to this section, where the Financial Secretary
is satisfied that due to exceptional circumstances an urgent need has
arisen for payment-

(a) to meet expenditure-
(i) for which no provision or insufficient provision is
shown in the approved estimates of expenditure. whether
or not such expenditure has been improperly incurred: or





(ii) not being expenditure referred to in sub-paragraph (i),
which appears to the Financial Secretary to have been
improperly incurred; and

(b)which cannot be deferred without detriment to the public
interest,

he may by contingencies warrant under his hand authorize the Director
of Accounting Services to pay from public moneys an advance of
moneys to meet that need.

(2) Without prejudice to section 31, a contingencies warrant shall
cease to have effect if

(a)being a warrant issued in respect of expenditure referred to in
subsection (1)(a)(i), the necessary change is made to the
approved estimates of expenditure; or

(b)being a warrant issued in respect of expenditure referred to in
subsection (1)(a)(ii), such expenditure is authorized by the
Financial Secretary.

(3) Where under subsection (2) a contingencies warrant ceases to
have effect the advance to which it relates shall be deemed to have been
made for the purpose of a charge on the general revenue and shall be
accounted for accordingly.

(4) A contingencies warrant shall specify a controlling officer who
shall be personally responsible for the advance to which such warrant
relates, unless such advance is charged on the general revenue in
accordance with this Ordinance.

22. (1) The Financial Secretary may, by imprest warrant under his
hand, and subject to such conditions as he may specify, authorize the
Director of Accounting Services to issue imprests from public moneys
to public officers.

(2) Any public officer in receipt of an imprest shall be personally
liable for such imprest in accordance with such conditions as the
Director of Accounting Services may specify and shall retire the imprest
when required to do so by the Director of Accounting Services.

(3) Where an imprest is not duly retired, the Director of Accounting
Services may, notwithstanding the provisions of any other enactment,
deduct the amount or any part thereof from any moneys of any
description, including salary, wages, pension or other emoluments
payable, or which may become payable, by the Government to the officer
to whom the imprest was issued.

(4) Nothing in this section shall affect the right of the Government,
which is hereby declared, to

(a)sue the person to whom the imprest was issued for the
recovery of the amount of any imprest not duly retired or any
part thereof, as a civil debt due to the Government; or





(b)sue any person for the recovery of any amount as a civil
debt notwithstanding that a person may be personally
liable for part or all of the amount under this section.

23. (1) Except where otherwise provided under any enact-
ment or authorized by the Director of Accounting Services, any
moneys raised or received by the Government, not being moneys
raised or received for the purposes of the Government and not being
a donation or grant referred to in section 24, shall be deposited with
the Director of Accounting Services.

(2) Except where otherwise provided under any enactment or
authorized by the Director of Accounting Services, any moneys
deposited under subsection (1) (hereinafter in this section referred to
as a deposit) shall not form part of the general revenue and shall not
be applied in any way for the purposes of the Government, but shall
in all other respects be received and accounted for and otherwise
dealt with as public moneys.

(3) Notwithstanding anything in subsection (2), the Financial
Secretary in his discretion may authorize the investment of any
deposit in such manner as he may determine, and any interest or
dividend received in respect of any deposit so invested shall form
part of the general revenue.

(4) A deposit which is unclaimed for 5 years may be treated as
moneys received for the purposes of the Government and, if so
treated, shall form part of the general revenue.

(5) Where under subsection (4) a deposit forms part of the
general revenue any person entitled thereto may, within 6 years after
the date on which the moneys become part of the general revenue,
claim for a refund.

24. (1) Without prejudice to the provisions of any other
enactment. any donation or grant of moneys received by any public
officer in the course of his duties or by virtue of his being a public
officer. not being public moneys and not being received pursuant to
any other enactment, shall be reported to the Financial Secretary.

(2) Every donation or grant referred to in subsection (1) shall
be accounted for and expended in accordance with such instructions
as the Financial Secretary may give.

25. Except where otherwise provided under any enactment, no
public officer in the course of his duties shall open an account or
otherwise deposit any moneys at any bank or other financial
institution without the authority in writing of the Financial
Secretary or an officer authorized by him in writing for the purposes
of this section.

26. (1) Subject to the provisions of any enactment. the Finan-
cial Secretary in his discretion may authorize the investment of
moneys forming part of the general revenue in such manner as he
may determine.





(2) All investments made under this section together with any
interest or other sums received therefrom shall form part of the general
revenue.

(3) Subject to the provisions of any enactment. all investments held
by or on behalf of the Government at the commencement of this
Ordinance and forming part of the general revenue shall be deemed to
have been made under this section.

27. (1) Subject to subsection (2) the Government shall not borrow
money except in accordance with an Ordinance.

(2) Notwithstanding the provisions of any other enactment, the
Financial Secretary may borrow by means of advances from the Crown
Agents or from any bank, by means of a fluctuating overdraft or
otherwise, such sums as may be required to meet day to day payments
and any interest or service charges in respect of such sums shall be
charged on the general revenue.

28. (1) No public officer shall give a guarantee involving any
financial liability upon the Government unless such guarantee is given

(a)for the purposes of and in accordance with the provisions of
an Ordinance or a resolution of the Legislative Council, or

(b) with the prior approval of the Finance Committee.

(2) No guarantee given in contravention of subsection (1) shall be
binding on the Government.

29. (1) The Legislative Council may by resolution provide for
the establishment of funds to which moneys appropriated for the
purpose may be credited and from which moneys may, under the
authority of a funds warrant-issued by the Financial Secretary, be
expended for the purposesthe funds were established
subject to such conditionsand limitations as may be
specified in the resolution.

1 A Unless an Ordinance or a resolution made under
subsec-
tion (1) otherwise provides, the earnings from interest or dividends
on investments of funds established under this section shall not be
retained for the purposes of such funds, but shall form part of the
general revenue.

(3) The funds set out in the First Schedule shall be deemed to have
been established in accordance with this section, and subsection (2)
shall apply in respect thereof.

30. (1) The Legislative Council may by resolution approve the
establishment of a suspense account (in this section referred to as a
special suspense account) for the purposes of any commercial or
industrial activity carried on by or on behalf of the Government and
specified in the resolution, subject to such conditions and limitations as
may be specified in the resolution.





(2) Unless a resolution made under subsection (1) otherwise
provides, any moneys in a special suspense account which in the
opinion of the Financial Secretary are in excess of the amount
reasonably required for the purposes of the account, shall not be
retained therein but shall form part of the general revenue.

(3) The suspense accounts set out in the Second Schedule shall
be deemed to be special suspense accounts established in accordance
with this section, and subsection (2) shall apply in respect thereof.

31. Every appropriation by the Legislative Council from the
general revenue for the service of any financial year and every
warrant issued under the provisions of this Ordinance shall lapse
and cease to have effect at the close of that financial year.

PART V

SURCHARGE

32. (1) If, at any time, it appears to the Financial Secretary
that any person who is or was employed as a public officer-

(a)has failed to collect any moneys owing to the Government
for the collection of which he is or was at the time of such
employment responsible;

(b)is or was at the time of such employment responsible for
any improper payment of public moneys or for any pay-
ment of public moneys which is not duly vouched;

(c)has improperly incurred expenditure at the time of such
employment;

(d)is or was at the time of such employment responsible for
any deficiency in or loss or destruction of or damage to any
public moneys. stamps, securities. stores or other Govern-
ment property; or

(e)is or was at the time of such employment responsible for
any loss or destruction of or damage to any property as a
result of which the Government is liable for the cost of
replacement or repair or for the payment of compensation,

and, if, within a period specified by the Financial Secretary, an
explanation satisfactory to him is not furnished with regard to such
failure to collect, improper payment, payment not duly vouched.
expenditure improperly incurred, deficiency, loss, destruction or
damage, as the case may be, the Financial Secretary may. without
prejudice to the provisions of any other enactment relating to the
surcharge (however called) of a public officer, but subject to sub-
sections (2) and (3), surcharge the person such sum as he may
determine.

(2) Notwithstanding anything in subsection (1). the Financial
Secretary shall not surcharge a person under subsection (1) unless he





is satisfied, in all the circumstances of the case including, without
limiting the generality of the foregoing, the nature of any disciplinary
proceedings which may have been or may be taken against such
person, that it is fair and reasonable to do so.

(3) In determining the sum to be surcharged under subsection

0)

(a)the Financial Secretary shall take due account of the ability of
the person surcharged to pay the surcharge without undue
financial hardship; and

(b)the sum of the surcharge shall not in any case exceed the
amount of the moneys not collected, or of the improper
payment, or payment not duly vouched, or of the expenditure
improperly incurred or of the deficiency, or the value of the
loss, destruction or damage, or the cost of replacement, repair
or compensation, as the case may be.

33. The Financial Secretary shall cause the person surcharged, the
head of his Department, the Director of Accounting Services and the
Director of Audit to be notified in writing of the surcharge made under
section 32 and shall at the same time cause the person surcharged to be
notified in writing of his right to appeal under section 34.

34. (1) Any person aggrieved by any surcharge made against him
under section 32 shall have the right to appeal to the Governor within a
period of 30 days (or such longer period as the Governor after
consultation with the Financial Secretary may allow) after the date on
which he is notified of the surcharge.

(2) The Governor in his discretion, after making or causing to be
made such investigation as he may deem to be necessary, may confirm
the surcharge or direct that the person surcharged be released wholly or
in part from the surcharge as may appear to him to be fair and
reasonable.

35. The Financial Secretary may at any time withdraw any
surcharge in respect of which a satisfactory explanation is received or if
it otherwise appears to him that no surcharge should have been made
and in any such event the Financial Secretary shall notify in writing the
person concerned, the head of his Department, the Director of
Accounting Services and the Director of Audit of such withdrawal.

36. (1) Subject to subsections (2) and (3) the Director of Accounting
Services on being notified of a surcharge made under section 32, shall
cause the amount of the surcharge to be collected from the person
surcharged in accordance with such directions as the Financial Secretary
may give.

(2) Notwithstanding the provisions of any other enactment, where
moneys of any description including salary, wages, pension or





other emoluments, are payable or may become payable by the
Government to the person surcharged, the Financial Secretary may
require the amount of any surcharge imposed on that person to be
deducted from such moneys in whole or in part as he considers fair
and reasonable.

(3) Notwithstanding anything in subsections (1) and (2)-

(a)the total amount of any deduction from the monthly
salary, wages or pension of the person surcharged in any
month shall not exceed one half of the gross amount of the
salary, wages or pension payable for that month;

(b)no collection of a surcharge shall be made until after the
expiration of the period allowed by section 34 for the
lodging of an appeal; and

(e)where the person surcharged appeals under section 34, no
collection of the surcharge shall be made until and unless
the amount of the surcharge has been confirmed or other-
wise determined in accordance with the provisions of that
section.

(4) Nothing in this section shall affect the right of the Govern-
ment, which is hereby declared, to-

(a)sue the person surcharged for the recovery of the amount
of any surcharge as a civil debt due to the Government; or

(b)sue any person for the recovery of any amount as a civil
debt notwithstanding that a person may be subject to a
surcharge in respect of part or all of that amount.

37. (1) Where a person referred to in section 32 dies at any
time before or after he is surcharged under that section, the
Financial Secretary may surcharge the personal representative of
such person and the provisions of this Part shall thereupon apply to
the personal representative as respects the estate of the deceased
person as they would have applied to the deceased person if he were
alive.

(2) For the purposes of this section -personal representative'
means the executor or administrator for the time being of a deceased
person.

PART VI

MISCELLANEOUS

38. (1) Without prejudice to section 96 of the Interpretation
and General Clauses Ordinance. the Financial Secretary. subject to.
in any case involving fraud or negligence, any conditions. exceptions
or limitations specified by the Finance Committee, may-

(a)abandon, remit or waive any claims by or on behalf of the
Government.





(b) write off arrears of revenue;

(c)write off losses or deficiencies of public moneys, stamps,
securities or stores; and

(d)write off condemned, unserviceable or obsolete stores or
other movable property belonging to or provided by the
Government.

(2) The Financial Secretary may in writing delegate to any public
officer any of the powers conferred upon him by subsection (1) subject
to such conditions, exceptions and limitations as are specified in the
delegation.

39. (1) Subject to the provisions of any enactment, and to any
conditions, exceptions or limitations specified by the Finance
Committee, the Financial Secretary may authorize the gift of serviceable
Government stores or other property to any institution or organization
where it is in the public interest to do so.

(2) The Financial Secretary may in writing delegate to any public
officer any power conferred upon him by subsection (1) subject to such
conditions, exceptions and limitations as are specified in the delegation.

40. (1) The Governor may give to the Financial Secretary and the
Director of Accounting Services such directions as he thinks fit with
respect to the exercise or performance of their respective powers,
functions and duties under this Ordinance, either generally or in any
particular case.

(2) The Financial Secretary and the Director of Accounting
Services shall, in the exercise or performance of their respective powers,
functions and duties under this Ordinance, comply with directions
given by the Governor under subsection (1).

A

41. Nothing in this Ordinance shall extend to, abridge or alter the
terms of any trust or shall be construed as authorizing the making of
any regulations or the giving of any directions or instructions requiring
any person to obey such regulations, directions or instructions in
relation to moneys held on trust which contravene or are inconsistent
with the terms of such trust.

42. (1) Any estimates of revenue and expenditure of the
Government laid before the Legislative Council prior to the
commencement of this Ordinance, which

(a)relate to the first financial year in respect of which this
Ordinance comes into operation; and

(b) could have been laid under section 5,

shall be deemed to have been laid under that section.

(2) Any resolution of the Legislative Council authorizing
expenditure for the services of the Government in advance of an
Appropriation Ordinance, which





(a)relates to the first financial year in respect of which this
Ordinance comes into operation;

(b)is, immediately prior to the commencement of this Ordinance,
not spent; and

(c) could have been made under section 7,

shall be deemed to have been made under that section.

(3) Nothing in this Ordinance shall affect any investigation,
administrative or legal proceeding or remedy in respect of a surcharge
imposed prior to the commencement of this Ordinance and any such
investigation, administrative or legal proceeding may be instituted,
continued and enforced as if this Ordinance had not been passed.

FIRST SCHEDULE [s. 29.1

FUNDS

Development Loan Fund
Lotteries Fund
Home Ownership Fund
Student Loan Fund
Mass Transit Fund
Capital Works Reserve Fund

SECOND SCHEDULE [s. 30.1

SPECIAL SUSPENSE
ACCOUNTS
~A

Suspense Account
Special Coin Suspense Account
Originally 3 of 1983. L.N. 109 83. Short title. Interpretation. (Cap. 122.) The general revenue. Charges on the general revenue. Annual estimates. Approval of estimates of expenditure and appropriation. Authorization of expenditure in advance of appropriation. Changes to the approved estimates of expenditure. Supplementary Appropriation. General powers and duties of the Financial Secretary. Power to make regulations and give directions, etc. Controlling officers. Controlling officers to obey regulations and directions, etc. Authority of controlling officers to incur expenditure. Further authority of controlling officers in respect of urgent expenditure. Duties of Director of Accounting Services. Prompt collection of moneys. Payment of public moneys. Payment of certain moneys to be authorized by warrant. Recoverable advances. Advances to meet urgent need for payment. Imprests. Deposits. Donations and grants. Banking. Investment of moneys. Borrowing powers and loans. Guarantees. Establishment of funds. First Schedule. Special suspense accounts. Second Schedule. Appropriations and warrants to lapse at close of financial year. Power to surcharge. Notification of surcharge and right of appeal. Appeal against surcharge. Withdrawal of surcharge. Collection of surcharge. Surcharge in respect of deceased persons. Abandonment of claims, etc. and write-off of public moneys and stores. (Cap. 1.) Disposal of serviceable stores, etc. Power of Governor to give directions. Trusts. Transitional.

Originally 3 of 1983. L.N. 109 83. Short title. Interpretation. (Cap. 122.) The general revenue. Charges on the general revenue. Annual estimates. Approval of estimates of expenditure and appropriation. Authorization of expenditure in advance of appropriation. Changes to the approved estimates of expenditure. Supplementary Appropriation. General powers and duties of the Financial Secretary. Power to make regulations and give directions, etc. Controlling officers. Controlling officers to obey regulations and directions, etc. Authority of controlling officers to incur expenditure. Further authority of controlling officers in respect of urgent expenditure. Duties of Director of Accounting Services. Prompt collection of moneys. Payment of public moneys. Payment of certain moneys to be authorized by warrant. Recoverable advances. Advances to meet urgent need for payment. Imprests. Deposits. Donations and grants. Banking. Investment of moneys. Borrowing powers and loans. Guarantees. Establishment of funds. First Schedule. Special suspense accounts. Second Schedule. Appropriations and warrants to lapse at close of financial year. Power to surcharge. Notification of surcharge and right of appeal. Appeal against surcharge. Withdrawal of surcharge. Collection of surcharge. Surcharge in respect of deceased persons. Abandonment of claims, etc. and write-off of public moneys and stores. (Cap. 1.) Disposal of serviceable stores, etc. Power of Governor to give directions. Trusts. Transitional.

https://oelawhk.lib.hku.hk/items/show/2187

1964

v1

2

19