Minutes of the Third Meeting of the Finance and Vetting Committee Under Eastern District Council

Minutes of the Third Meeting of the Finance and Vetting Committee under Eastern District Council

Date: 5 May 2020 (Tuesday) Time: 2:30 pm Venue: Eastern District Council Conference Room

Present Time of Arrival Time of Departure (pm) (pm) Mr CHAN Ka-yau, Jason (Chairman) 2:30 end of meeting Ms CHAN Po-king 2:30 end of meeting Mr CHAN Wing-tai 2:30 end of meeting Ms CHAU Hui-yan (Vice-chairlady) 2:30 end of meeting Mr CHEUNG Kwok-cheong 2:45 6:30 Dr CHIU Ka-yin, Andrew 2:30 end of meeting Mr CHOI Chi-keung, Peter 3:14 end of meeting Mr CHOW Cheuk-ki 3:00 end of meeting Mr CHUI Chi-kin 2:30 end of meeting Ms FU Kai-lam, Karrine 2:30 end of meeting Mr HO Wai-lun 2:33 end of meeting Ms ISHIGAMI LEE Fung-king, Alice 2:32 end of meeting Mr KU Kwai-yiu 2:30 end of meeting Mr KWOK Chi-chung 2:30 end of meeting Mr LAI Chi-keong, Joseph 2:30 end of meeting Ms LAI Tsz-yan 2:40 7:30 Ms LEE Ching-har, Annie 2:30 6:25 Mr LEE Yue-shun 2:30 6:35 Mr LEUNG Siu-sun, Patrick 2:30 6:45 Mr MAK Tak-ching 3:50 6:35 Mr NG Cheuk-ip 3:30 end of meeting Mr NGAI Chi-ho, Derek 2:30 end of meeting Mr PUI Chi-lap, James 2:30 end of meeting Mr SO Yat-hang 2:45 7:15 Ms TSANG Yan-ying 2:30 end of meeting Ms TSE Miu-yee 2:30 end of meeting Ms WEI Siu-lik 2:30 end of meeting Mr WONG Chun-sing, Patrick 3:30 end of meeting Ms WONG Yi, Christine 2:30 end of meeting Mr YUEN Kin-chung, Kenny 2:55 6:55

In Regular Attendance (Government Representatives)

Miss NGAI Lai-ying, Angora Assistant District Officer (Eastern) 1, Eastern District Office Mr KWAN Yu-keung Senior Liaison Officer (3), Eastern District Office Ms NG Yan-mei, Monie Senior Executive Officer (District Council), Eastern District Office Ms HAU Tsun-tsun, Kenix (Secretary) Executive Officer I (District Council)1, Eastern District Office Ms LEE Ying-tung, Joanna Executive Officer I (District Council)1 (designate), Eastern District Office

In Attendance by Invitation (Representatives from the Government and Organisations)

Ms WONG Sze-man, Queenie Senior Liaison Officer (2), Eastern District Office Ms TONG See-ming, Abigail Liaison Officer-in-charge (Special Duties)1, Eastern District Office

Action Opening Remarks

The Chairman welcomed all Members and government representatives to the meeting, particularly Ms Joanna LEE, Executive Officer I (District Council)1 (designate). Members were also asked to declare their interests pursuant to Order 48 of the Standing Orders of the Eastern District Council when necessary. He asked Members to declare their interests before discussing related agenda items and submit the declaration forms to the Secretariat for record purposes and for ruling on the interests declared.

Papers Tabled

(i) Annex (revised) and Appendix 12 (revised) to Paper No. 16/20 for information during the discussion of agenda item V; and (ii) The restricted documents Annexes 1 and 2 to Paper No. 19/20 for information during the discussion of agenda item VIII.

Action

I. Confirmation of the Draft Minutes of the 2nd Meeting of FVC

2. The Finance and Vetting Committee (FVC) confirmed the above draft minutes without amendment.

II. Proposed Allocation of the Fund of FVC for 2020-2021 (FVC Paper No. 13/20)

3. The Chairman asked Members to declare their interests.

4. The interest declared by a Member was summarised as follows:

Name of Member Relationship with the Relevant Organisation Mr KU Kwai-yiu Honorary Advisor, Eastern District Recreation and Sports Advancement Association Limited

5. The Chairman said that as Mr KU Kwai-yiu was associated with the applicant organisation in a nominal capacity, he could take part in the discussion and decision- making of the application concerned.

6. The Secretary briefed Members on Paper No. 13/20.

7. The Chairman said that due to social and epidemic factors in the previous year, the actual expenditure of designated organisations and other organisations for the whole year had been less than their allocated funding. The reserved allocation for all funded items had been reduced in the current year accordingly in view of the financial position of the Eastern District Council (EDC).

8. Ms Annie LEE enquired about the reasons for reducing the reserved allocation for funded items and for settling the expenses of unfinished activities of the previous year with the funding of the current year, and the ways to deal with the unspent allocation of the previous year.

9. The Secretary responded that there was a corresponding reduction in the allocation of FVC in the financial year 2020-21 because the allocation of the EDC in the financial year 2020-21 was about 2.2% less than that of the previous year and

Action the EDC had to use the allocation of the financial year 2020-21 to pay for the expenses of some activities held in the financial year 2019-20 as the activities had failed to meet the criteria for reimbursement and further vetting was required by the relevant Committees/Working Groups under the EDC while some organisations were required to submit supplementary information for their reimbursement applications and the payment made for the activities could not be reimbursed on time before the end of the financial year. Besides, the surplus funding of the financial year 2019-20 had been returned to the Home Affairs Department (HAD) in accordance with the established procedures.

10. After discussion, the FVC approved the proposed allocation of the funding.

III. Special Fund for “Community Caring and Integration Activities” under FVC of Eastern District Council in 2020-2021 (FVC Paper No. 14/20)

11. The Chairman asked Members to declare their interests.

12. The Chairman said that no Members had interests to declare for the Paper.

13. The Secretary briefed Members on Paper No. 14/20.

14. The views and enquiries of Members about the application were summarised as follows:

(a) Mr KU Kwai-yiu enquired whether applicant organisations were allowed to submit funding applications for activities to be held after 30 November in the first round of application and whether applications could be submitted on Saturdays.

(b) Mr Patrick LEUNG said that the required information to be submitted by organisations was very limited as stated in the Appendix to the Paper. He enquired whether organisations were required to complete other forms in order to provide other activity information, e.g. the details of ticket distribution.

15. The Secretary responded that generally speaking, organisations were required to submit funding application forms in accordance with the schedule in the Appendix to the Paper. If the activities were to be held between 1 December 2020

Action and 16 January 2021, the organisations could submit the applications in the second round of application, i.e. first-time applicant organisations and non-first-time applicant organisations should submit the application forms on or before 12 August 2020 and 19 August 2020 respectively. The application forms should be submitted on weekdays. Application forms might be submitted either during office hours on weekdays or by post with postmark dates before the application deadlines. Besides, applicant organisations interested in applying for the Special Fund were required to complete the application form for the Eastern District Community Involvement Project Subsidy Scheme under District Council Funds (Form 1) and submit the supplementary information in the Appendix to the Paper while the activity details should be provided in Form 1.

16. The Chairman concluded that few activities were approved under the Special Fund in the past and most of the approved activities aimed to provide assistance to new arrivals. He remarked that the Special Fund could also be used for providing assistance to single-parent families, elderly singletons or elderly in need, women in need, etc. and that organisations were welcomed to submit applications for more diversified activities.

17. After discussion, the FVC endorsed the allocation guidelines on the Special Fund for “Community Caring and Integration Activities” in 2020-2021.

I V. Special Fund for “Arts and Cultural Activities” under FVC of Eastern District Council in 2020-2021 (FVC Paper No. 15/20)

18. The Chairman asked Members to declare their interests.

19. The Chairman said that no Members had interests to declare for the Paper.

20. The Secretary briefed Members on Paper No. 15/20.

21. The views and enquiries of Members about the application were summarised as follows:

(a) Mr LEE Yue-shun said item II(b) of the guidelines in the Appendix to the Paper required that “the activities shall be at a certain artistic level and shall not be entertainment activities of typical nature”, but he opined that “a certain artistic level” was ambiguous and difficult to define. He was

Action of the view that activities under the Special Fund should be related to the Eastern District or the community and should encourage more local participation but not be one-way performance activities. Therefore, he suggested that the requirement should be revised to “the activities shall be arts and cultural ones encouraging local participation in the community and shall not be entertainment activities of typical nature”.

(b) The Chairman concluded that Members were concerned about how arts and cultural activities could be integrated into the community.

22. After discussion, the FVC endorsed the allocation guidelines on the Special Fund for “Arts and Cultural Activities” in 2020-2021 and revised the requirements for the activities as stipulated in item II(b) of the guidelines.

V. Reimbursement Applications of Cancelled/Prematurely Terminated Activities (FVC Paper No. 16/20)

23. The Chairman asked Members to declare their interests.

24. The interests declared by Members were summarised as follows:

Name of Member Application Relationships with No. Relevant Organisations Mr KU Kwai-yiu 190417 - 421, Honorary Advisor, Eastern District 190425 Recreation and Sports Advancement Association Limited Mr Patrick LEUNG 190478 Chairperson*, Hong Kong Catholic Commission for Labour Affairs * an executive capacity

25. The Chairman said that as Mr Patrick LEUNG was associated with an applicant organisation in an executive capacity, he should be silent during the discussion of the application concerned and abstain from decision-making or voting for the application concerned. Besides, as Mr KU Kwai-yiu was associated with an applicant organisation in a nominal capacity, he could take part in the discussion and decision-making of the application concerned.

Action 26. The Secretary briefed Members on Paper No. 16/20.

“Elderly Fun Day at Tsui Lok” (Application No.: 190233) of “C & M A Tsui Lok Good Neighbours Centre for the Elderly”

27. The views and enquiries of Members about the case were summarised as follows:

(a) The Chairman said it was reported in the news that there was social movement on the day of the activity. Besides, he asked the Secretary to supplement the details of the organisation’s arrangement for the refreshments and gifts.

(b) Mr KU Kwai-yiu remarked that being a local resident, he had not seen any riots in the area on the day. He also said that the organisation held activities every day but it distributed the gifts and refreshments to the original participants on the day following the scheduled date of the activity. Therefore, he did not accept the organisation’s explanation and he opined that the activity expenses should not be reimbursed.

(c) Ms WEI Siu-lik opined that it would have been inappropriate to hold “Fun” activities in mid-November and if the decision on the arrangement for the gifts and refreshments was made in this connection, it would be reasonable to reimburse the activity expenses.

(d) Mr HO Wai-lun enquired about the criteria or established procedures for dealing with the consumables of cancelled activities in the past.

(e) Mr Kenny YUEN said that the organisation might have cancelled the activity due to the unpredictability of the impacts of the social movement on the area and in view of the participants’ senior age. As the organisation had distributed the gifts and refreshments to the original participants, so he supported the reimbursement for the activity.

28. The Secretary responded with the organisation’s explanation that the gifts and refreshments for the participants had been purchased before the activity and distributed to the original participants. Photographs of the gift distribution had been submitted along with the project completion report. In the past, there had been non-governmental organisations (NGOs) applying for the reimbursement for consumables for cancelled activities. As the consumables had been purchased

Action before the activities, the organisations gifted them to the original participants. The activity expenses had been reimbursed in the previous cases.

29. The Chairman concluded that there was social movement on the day of the activity and the organisation had also submitted photographs proving the distribution of the gifts and refreshments to the participants. He opined that the activity had achieved the objective of connecting with the community and enhancing communication with the elderly.

30. After discussion, the FVC endorsed the reimbursement for the activity to the organisation.

“2020 Eastern District Youth Carnival cum Variety Show” (Application No.: 190259) of “Eastern District Youth Programme Committee”

31. The Chairman asked the Secretary to supplement the details of the reimbursement application by the organisation.

32. The Secretary responded with the organisation’s explanation that it would like to apply for the reimbursement of certain items because the contractor had completed the design for most items, and either the venue had been reserved or relevant items had been prepared.

33. After discussion, the FVC endorsed the reimbursement for the activity to the organisation.

“Fire Drill and Fire Safety Talk” (Application No.: 190273) of “Fire Safety Publicity Working Group under Eastern District Fire Safety Committee”

34. The views and enquiries of Members about the case were summarised as follows:

(a) Mr Kenny YUEN said that the number of talks had been reduced from six to three, so he was concerned about the reasons for the reimbursement amount applied for exceeded the approved amount for the wages of temporary staff and miscellaneous expenses. He enquired about the relevant procedures and the previous practice. He also suggested that only the approved amount on the two items should be reimbursed.

(b) Ms WEI Siu-lik remarked that the reimbursement amount applied for

Action should be the wages of the temporary staff engaged for the first three talks. She was concerned that the expenses for temporary staff might have been increased accordingly if six talks had been held. Therefore, she enquired whether the additional amount would not be reimbursed if the expenses exceeded 20% of the approved amount.

35. The Secretary responded that the reimbursement amount currently applied for exceeded the approved amount as the wages for temporary staff had been adjusted. According to the Guidelines on the Eastern District Community Involvement Project Subsidy Scheme under District Council Funds (the Guidelines), the EDC might consider adjusting the approved unit cost, the quantity or the payment amount for individual items, but the extent of the adjustment shall not exceed 20% of the approved unit cost, the quantity or the payment amount. The total amount after adjustment should not exceed the total amount originally approved. Besides, the reimbursement amount for miscellaneous expenses shall not exceed 20% of the approved amount and should not be spent on purchasing durable goods. The miscellaneous expenses of the activity had all been spent on consumables.

36. Mr KWAN Yu-keung, Senior Liaison Officer (3) of the Eastern District Office (EDO) responded that the EDO was a collaborating organiser of the activity and was responsible for arranging for temporary staff to assist in organising the activity. As the Guidelines stipulated that the wages for temporary staff shall not exceed 25% of the total approved estimated expenditure, only the reimbursement amount of 20 hours of wages of the temporary staff had been applied for. However, the actual number of working hours exceeded the number of hours applied for. If Members opined that 10 hours of the wages of the temporary staff should be reimbursed for the three talks by proportion only, the unreimbursed amount would be settled by the EDO’s resources.

37. After discussion, the FVC endorsed the reimbursement for the activity to the organisation.

“2019-2020 Eastern District Fight Crime Beat Drug and Support Rehabilitation Carnival” (Application No.: 190288) of “Eastern District Fight Crime Committee”

38. The views and enquiries of Members about the case were summarised as follows:

(a) Mr Joseph LAI was concerned that it would be inappropriate to distribute the souvenirs in activities not sponsored by the EDC if they bore the

Action characters “Sponsored by the Eastern District Council”, so he requested that the souvenirs should only be distributed in activities sponsored by the EDC. In addition, he opined that full payment should not be charged for items costing over $10,000 and for unperformed items such as the stage backdrops, the chairs in front of the stage, the master of ceremony, etc. He requested that the EDO should negotiate with the contractor to adjust the fees downward.

(b) Mr CHOW Cheuk-ki was worried that the souvenirs might bear the activity name and could not be distributed in future activities, so he considered it inappropriate for the EDC to reimburse expenses for souvenirs no longer distributable. Besides, he said it was explained in the letter that full payment had to be made for certain items according to the contract with the contractor and he enquired about the reasons for the difference between the reimbursement amount applied for and the total amount approved. Meanwhile, he would like to learn about the content of the contract and he questioned the contractual terms requiring full payment in the event of activity cancellation. In addition, he expressed worry about the difference between the approved and the actual quantity for certain items and he enquired whether the Guidelines allowed the revision to the quantity of subsidised items after the application approval. Moreover, he remarked that the organisation cancelled the activity due to its subjective consideration that there would be dangers rather than due to force majeure such as inclement weather, etc. He said that as the consideration criteria of organisations might vary, he was concerned over the criteria for activity cancellation. He also deemed it unreasonable for the payment of over $200,000 for the activity eventually.

(c) Mr CHEUNG Kwok-cheong expressed concern over the content of the contract and questioned the reason that only the souvenirs could be retained for future use. He said that in his experience, the contractor would agree to provide unperformed items such as the music licence, sound system, master of ceremony service and so on in another activity in future if an activity was cancelled. In addition, he was concerned whether the contract between the contractor and the sound system company required full payment upon activity cancellation and the reasons for the need to pay for the wages of temporary staff despite the activity cancellation. He opined that if temporary staff such as the masters of ceremony, singers, etc. had participated in rehearsal or audition before the activity, then the contractor should be asked to submit the related details

Action and be reimbursed for the expenses.

(d) Mr CHAN Wing-tai enquired about the reasons for the contractual benefits to go to the contractor in the event of activity cancellation. He expressed worry that the terms requiring full payment in the event of activity cancellation would be retained in future contracts between the organisation and contractors and that activities were cancelled lightly, and it would eventually benefit the contractors. Besides, he deemed it unreasonable for the organisation to be charged for the music licence of songs not yet played in the activity and for food stalls never set up. He also questioned whether funding should be approved to the organisation in future. He said that the FVC should first get to know whether the payment had to be made in line with the spirit of the contract and to avoid litigation, and he enquired whether the EDO had sought legal advice on the contractual terms. Moreover, he opined that the FVC should not discuss the reimbursement of items one by one and agreed to ask the EDO to communicate with the contractor on the FVC’s disappointment at the need for full payment on certain items submitted for reimbursement and to ask the contractor to submit a fresh reimbursement application after negotiation.

(e) Mr KU Kwai-yiu was concerned whether the contractual terms required that all benefits had to go to the contractor. He would also like to check if the souvenirs bore the characters “Sponsored by the Eastern District Council” and he remarked that the organisation should inform the Secretariat of the activity at which the souvenirs were to be distributed in future. In addition, he opined that the FVC should refer the contractual issue to the EDO for negotiation with the contractor before further discussion.

(f) Ms Alice ISHIGAMI LEE deemed it unreasonable for 23 out of the 30 items in the reimbursement application to be fully paid due to the terms that full payment should be made in the event of activity cancellation as provided in the contract with the contractor. She was worried that contacts with similar terms would be entered into in future. Besides, she opined that the souvenirs were costly, so she asked the EDO to distribute the souvenirs in future activities. She also expressed that she had no idea about the funding application for the food stalls which were profit making.

Action (g) Mr Kenny YUEN expressed concern over whether the EDO had sought legal advice on the contractual terms and asked whether the contract could be passed to legal advisers for examining the reasonability of its terms. He also asked the EDO whether the contract was legal binding since it had been drawn up and confirmed in accordance with the Guidelines and relevant internal guidelines of the government, and the only thing that could be done was to make full payment in accordance with the contractual terms or else legal actions would be taken in case of non- payment. He suggested that the FVC should reimburse the organisation only a certain percentage of the total amount applied for. Moreover, he suggested that the FVC should consider revising the provisions concerned in the Guidelines in future to stipulate the chargeable amount in the event of activity cancellation at different stages for contracts between the sponsored organisations and the contractors, the requirement for sponsored organisations to make phased payment for activities costing over a certain amount and the circumstances under which activities could be cancelled instead of at the discretion of the organisations. In addition, he asked the EDO to further explain the difficulties in enforcing the proposed revision to the provisions in the Guidelines.

(h) Mr James PUI enquired whether the contract between the organisation and the contractor would be available for inspection. He said that the activity was not cancelled in the last minute and usually fees would be charged according to the notification time of activity cancellation. Therefore, he deemed it unreasonable for the contractual terms to require full payment in the event of activity cancellation. He expressed concern over whether the EDC had all along reimbursed the full amount for activity cancellation. He also agreed that the Guidelines should be revised to elaborate on the FVC’s arrangements for reimbursement applications involving activity cancellation.

(i) Mr KWOK Chi-chung enquired whether there were any contractual terms stipulating the responsibilities to be borne by both parties upon activity cancellation due to force majeure. Besides, he expressed concern over whether the EDO had negotiated with the contractor after the epidemic outbreak on the contractual terms about activity cancellation or simply dealt with the situation in accordance with the prevailing contractual terms.

(j) Ms Annie LEE said she understood Members’ concerns. Nevertheless,

Action as the contract had been signed, the spirit of the contract had to be honoured even though she agreed that full payment should not be made upon activity cancellation. She suggested that the FVC should later on formulate the criteria for the FVC’s acceptance of activity cancellation and revisions to activity details, and the criteria and terms for reimbursement for activities cancelled or terminated prematurely in order to provide organisations with clearer directions.

(k) Mr Derek NGAI deemed it reasonable that deposit instead of full payment be made after activity cancellation for certain unperformed items involving service reservation. He enquired about the practice of dealing with reimbursement for cancelled activities due to inclement weather in the past. Besides, he opined that the contractor might eventually have to pay for the expenses if the FVC decided not to endorse full reimbursement even though the contractual terms required full payment upon activity cancellation.

(l) Ms WEI Siu-lik opined that as the activity had not been held, transportation fees should be waived. She hoped that the EDO would pay attention to related issues when drawing up contracts in future even if amendments could not be made to the contract for the current activity. Besides, she pointed out that there was a typo for the characters “Home Affairs Department” in the letter from the organisation and should be corrected.

(m) The Chairman opined that it would be difficult to explain to the organisation about the reasons for only reimbursing a certain percentage of the amount applied for. He also worried that it was only an expedient measure to request the contractor to adjust the contract price and might eventually be futile.

(n) Mr HO Wai-lun said that it was unreasonable to be charged in full for unused rental items as a result of activity cancellation. He opined that the reimbursement amount should not exceed half of the amount approved.

(o) Mr Patrick LEUNG said that the Aldrich Area Committee had not been charged in full for all items by the relevant contractor after activity cancellation. Therefore, the organisation should negotiate further with the contractor on the reimbursement amount applied for.

Action

(p) Mr Andrew CHIU expressed disappointment at the connivance of the past EDC at full reimbursement for activity cancellation. He said that if the contract required full payment to be made in the event of activity cancellation, the FVC would, though unwillingly, have to deal with the application according to the contractual terms. Nevertheless, he emphasised that the provisions in the Guidelines had to be revised in order to plug the loophole and avoid sponsored organisations from entering into unequal contracts with contractors in future.

39. The Secretary responded that the past EDC had dealt with a few cases applying for reimbursement for cancelled activities and the amount applied for was reimbursed in general. If the FVC opined that only a certain percentage of the amount applied for should be reimbursed, the reason and rationale in determining the percentage would require discussion and the EDO would then communicate with the contractor to see whether adjustments could be made on the reimbursement amount.

40. Ms Queenie WONG of the EDO responded to the views and enquiries of Members as follows:

(a) The souvenirs bore the characters “Sponsored by the Eastern District Council” but not the activity name. As the FVC had reserved funding for the organisation in the current year, the souvenirs could be distributed during the activities sponsored by the EDC in the current year.

(b) The snacks in the food stalls were provided free-of-charge and participants would not be charged.

(c) There were licence fees and charges for the sound system and singers for large-scale activities, and payment had to be made upon reservation in general.

(d) With regard to booths, there might be a difference between the actual and the estimated number of organisations interested in running the booths after the activity was approved, and as a result the final amount applied for reimbursement would be different from the initial amount applied for. Nonetheless, the EDO would deal with the reimbursement application on an accountable basis.

Action (e) Temporary staff had to carry out preparatory work before the activity, so the reimbursement was made on an accountable basis.

(f) The activity was originally scheduled to be held on 30 November 2019 but postponed to 22 February 2020 due to the unstable social conditions and concerns over participants’ safety. The EDO was responsible for liaising with performers and participants and maintaining close communication with the organisation. The activity had to be cancelled eventually due to the epidemic. In fact, a number of NGOs, Government organisations and schools had cancelled their activities to be held at that time as there was no guarantee of no accidents if the activity was to be held as scheduled. Moreover, as the activity was sponsored by the EDC, the EDO had to take into consideration the potential impacts on the EDC’s image in case of any accidents during the activity, so the activity was eventually cancelled. Activity cancellation was rare in the past. Generally speaking, when there was inclement weather, the EDO would consider postponing activities in the first place with a view to holding the activities for wise spending of public funds.

(g) The information provided by the contractor at present was the lowest conforming quotation and the EDO decided to accept it after consideration. The contract was drawn up by the organisation with the EDO’s assistance in accordance with internal guidelines of the government and relevant tender procedures. With regard to the payment provisions, it was stipulated in the contract that the organiser would be required to make full payment in case of activity cancellation after the quotation had been signed or confirmed. Meanwhile, the EDO had ensured that there were no redundant items when signing the contract. If the FVC decided not to endorse the reimbursement, how the contractor would deal with the issue or whether it would resort to litigation remained uncertain. When the activity was initially postponed from 30 November 2019 to 22 February 2020, the contractor had not charged extra fees. When the activity was cancelled in February, the contractor had been delaying the payment to the companies for the items for a long time and it was facing financial pressure. It was hoped that the FVC would reimburse the expenses upon understanding the special and unpredictability of the situation.

(h) The organisation applied for reimbursement in compliance with the Guidelines and the contract was drawn up in accordance with internal

Action guidelines of the government. If further legal advice on the contract had to be sought or submission of supplementary information from the contractor was required, the same treatment would have to be applied for other organisations.

(i) The EDO had carried out an internal review on the formulation of criteria for activity cancellation and would examine the special circumstances and territory-wide issues when drawing up contracts in future. The EDO would also reflect Members’ views to the organisation for its reference in determining the details of the activity in future. According to the prevailing Guidelines, the expenses incurred in activity preparation as stated in the application forms would generally be reimbursed to organisations given that receipts were provided as proof. The EDO opined that if new rules were established in the Guidelines in future, applicant organisations would find it clearer for compliance. On the other hand, if the expenses were not reimbursed at the current stage, it was afraid that both the contractor and the EDO staff would be worried.

(j) The EDO apologised for the typo of the “Home Affairs Department”.

41. The Chairman concluded that the “Eastern District Fire Safety Carnival” (Application No.: 190366) of “Fire Safety Publicity Working Group under Eastern District Fire Safety Committee” was in a similar situation and the above discussion would be applicable to the case as well.

EDO 42. After discussion, the FVC was disappointed at the requirement of full payment. The FVC asked the EDO to reflect its disagreement to a full reimbursement of expenses for unperformed items in the contract and to ask the contractor for a downward adjustment in the amount of reimbursement application made to the EDC.

“Eastern District Roving Exhibitions and Seminars in Schools” (Application No.: 190293) of “Eastern District Fight Crime Committee”

43. Mr CHOW Cheuk-ki asked whether it was the original plan or affected by the epidemic that there was no distribution of souvenirs in the February activity. He also enquired about the reasons for the substantial difference between the actual expenses and the approved amount.

44. The Secretary responded that as the souvenirs had all been given away during

Action the January activities, no souvenir distribution had been arranged for the activities scheduled in February.

45. After discussion, the FVC endorsed the reimbursement of the activity expenses as applied by the organisation.

“Lunar New Year Fortune Tour 2020” (Application No.: 190341) of “Yue Wan Estate Residents’ Association”

46. The views and enquiries of Members about the case were summarised as follows:

(a) Mr KU Kwai-yiu would like to inspect the deposit receipt for the coaches.

(b) Ms Christine WONG said a spring tour of Heng Fa Chuen scheduled to be held earlier on had also been cancelled due to the epidemic and the travel agent had agreed to retain the deposit for the activities held within one year. Therefore, she queried the claim that the deposit of the activity was non-refundable.

(c) The Chairman remarked that the treatment to deal with the situation varied among different travel agents and opined that the receipt should be inspected in the first place.

47. After discussion and inspection of the receipt, the FVC endorsed the reimbursement of the activity expenses as applied by the organisation.

“Eastern District Fire Safety Carnival” (Application No.: 190366) of “Fire Safety Publicity Working Group under Eastern District Fire Safety Committee”

48. The Chairman said that the captioned activity shared a similarity with the “2019-2020 Eastern District Fight Crime Beat Drug and Support Rehabilitation Carnival” of “Eastern District Fight Crime Committee” discussed above as the contractual terms of both activities stipulated that full payment had to be made in case the organisers cancelled the activities after confirming the quotations. Therefore, he asked whether both activities would be treated in the same way.

49. The views and enquiries of Members about the case were summarised as follows:

Action (a) Mr CHAN Wing-tai opined that asking the EDO to negotiate with the contractor on the contract price at the current stage would delay the payment and the contractors might make a downward adjustment on the fees of certain unperformed items consequently.

(b) Mr Joseph LAI remarked that the EDO should adopt a tough stance against the contractor during the negotiation.

EDO 50. After discussion, the FVC was disappointed at the contract’s requirement of full payment. The FVC asked the EDO to reflect to the contractor about the FVC’s disagreement over the reimbursement of full expenses for unperformed items in the contract and to ask the contractor for a downward adjustment to the reimbursement amount in the application made to the EDC.

“32 Yang Style Tai Chi Chuan (advanced course)” (Application No.: 190417), “Badminton Training Course 19-20 (B3)” (Application No.: 190418), “Table Tennis Training Course 19-20 (T3)” (Application No.: 190419), “Lawn Bowl Training Course 19-20 (LB3)” (Application No.: 190420) and “Eastern District Table Tennis Training Programme 19-20 (4)” (Application No.: 190421) of “Eastern District Recreation and Sports Advancement Association Limited”

51. The Chairman said that as the activities ended prematurely due to the epidemic, the reimbursement amount for coach fees applied for had reduced accordingly.

52. After discussion, the FVC endorsed the reimbursement of the activity expenses to the organisation.

“Eastern District Spring Tour” (Application No.: 190425) of “Eastern District Recreation and Sports Advancement Association Limited”

53. The views and enquiries of Members about the case were summarised as follows:

(a) Mr HO Wai-lun expressed concern that nearly full payment had to be made for the coaches despite the activity cancellation and asked whether the amount paid could be retained for the next activity. Besides, as the number of lucky draw prizes exceeded that of the activity participants, he was concerned about the arrangement for prize distribution to the participants.

Action (b) Mr CHAN Wing-tai considered the coach fees unreasonable and said it was not shown on the receipt that the fees had been charged in accordance with the terms about activity cancellation in the signed contract. He remarked that a number of spring tours organised by District Council (DC) members had also been cancelled due to the epidemic, but no payment had been made for advance cancellation. He queried the organisation’s decision to organise the tour despite the severity of the epidemic and its reckless decision to make full payment. He considered the practice unreasonable and worried that the organisation might be associated with the contractor, so he suggested that only a certain percentage of the coach fees should be reimbursed. He was also concerned about the arrangement for prize distribution for the lucky draw and opined that it was expensive for the banners charging $250 each.

(c) Mr Derek NGAI suggested that the organisation should negotiate with the contractor before applying for reimbursement. He also expressed concern over the justifications for nearly full payment was requested for the coach fees.

(d) The Chairman remarked that according to the receipt of coach fees, the number of coaches had reduced from six as in the funding application to five. Besides, he remarked that only the deposit was reimbursed for the tour discussed above, so he suggested that the FVC should consider only reimbursing the deposit for the coaches at market price.

(e) Mr NG Cheuk-ip would like to inspect the receipt and photographs of the lucky draw prizes.

(f) Ms LAI Tsz-yan said that the organisation had settled the coach fees. She suggested that only half of the coach fees should be reimbursed as a punishment for the organisation’s recklessness in choosing the contractor and having made full payment in order to avoid connivance of its unreasonable practice.

(g) Mr Kenny YUEN enquired whether the prevailing Guidelines prohibited the organisations from making payment before reimbursement. If the answer was negative, the organisation had not breached the Guidelines and there would be no justification to impose punishments on it. He opined that the captioned activity was no different from the carnival discussed above and it should be dealt with in the same way.

Action

(h) Mr CHOW Cheuk-ki opined that reimbursement should not be made at the current stage as the organisation had not used the service and that there was no contractual proof stipulating the amount that had to be paid in the event of activity cancellation. The organisation should also be asked to show the ways to avoid the recurrence of the situation and also the means to deal with similar situations in future.

(i) Mr CHUI Chi-kin enquired about the reasons for the reimbursement amount applied for the coach fees exceeded the funding cap of $2,000 as stipulated in the Guidelines.

(j) Mr MAK Tak-ching considered it unreasonable for the organisation to organise the tour and make full payment for the coaches despite the severity of the epidemic. Therefore, the organisation should be asked to provide a detailed explanation even though the receipt was available. Moreover, he opined that careful consideration should be given to the arrangement of full grant to activities organised by designated organisations.

(k) Mr Patrick WONG agreed to the practice of reimbursement on an accountable basis. However, he remarked that funding was approved for six coaches for the activity at $2,200 each, so he asked the organisation to give reasons for the contractor to charge a total of $12,600 for five coaches, i.e. the subsidy for each coach was higher than the initial amount and for making full payment for the coaches despite the severity of the epidemic. Besides, he agreed that the Guidelines should be revised for formulation of terms about the reimbursement for activity cancellation.

54. The Chairman responded that the organisation was a designated one and thus its activities would generally be granted full funding. In addition, the funding application for the activity had been vetted and approved in September the year before and the activity date had already been decided then.

55. After discussion and inspection of the receipt, the FVC agreed to suspend the handling of the activity’s reimbursement application, and to ask the organisation to give reasons for the contractor to charge $12,600 currently for five coaches, i.e. the reasons for the funding amount for each coach being higher than the initial amount, and for full payment to be made for the coaches despite the severity of the epidemic.

Action “Showing Love of Neighbour at Merry Christmas” (Application No.: 190478) of “Diocesan Pastoral Centre for Workers (Hong Kong Island), Catholic Diocese of Hong Kong”

56. The views and enquiries of Members about the case were summarised as follows:

(a) Mr CHAN Wing-tai said the activity was cancelled due to a decrease in the number of participants and considered that it was a reasonable application as the organisation only applied for a reimbursement of about 10% of the approved amount.

(b) Ms WEI Siu-lik suggested that provisions safeguarding the EDC on the expense for venue rental reimbursement for activity cancellation should be formulated in future.

(d) Mr Andrew CHIU opined that the past practice for handling reimbursement for activity cancellation was lenient and that the current term of the EDC should plug the loophole. He agreed that the captioned application was reasonable as the organisation had made its best endeavours to reduce the expenses of unperformed items. He opined that the organisation deserved commendation and suggested that the FVC should issue an appreciation letter to the organisation.

(e) Mr Joseph LAI agreed that the the captioned application was reasonable. He would like the EDO to keep record of each applicant organisation for the FVC’s future reference when necessary so that the FVC could take an appropriate way to deal with the vetting of relevant issues subject to any alleged deception of the EDC when applying for reimbursement in the past.

(f) Ms LAI Tsz-yan opined that it was the organisation’s responsibility to make a reasonable reimbursement application, so there was no need to issue an appreciation letter to the organisation in the connection. On the contrary, she suggested that the organisations making unreasonable reimbursement application should be required to make improvement.

Action (g) Mr CHUI Chi-kin opined that it was unfeasible to determine the organisation’s integrity by the proportion of the reimbursement amount applied for to the amount approved, so he agreed that there was no need to issue an appreciation letter to the organisation.

(h) Mr CHEUNG Kwok-cheong agreed that there was no need to issue an appreciation letter to the organisation.

(i) Ms Annie LEE agreed that the FVC should formulate more detailed provisions on the arrangements for activity cancellation in order to facilitate the FVC’s vetting of applications and to provide organisations with guidelines to follow. Nevertheless, she disagreed to a Member’s opinion that individual organisations might be alleged of deceiving the EDC when applying for reimbursement.

57. The Chairman concluded that the Member was only pointing out that there had been organisations alleged of applying for reimbursement from the EDC in a dishonest manner and was not referring to specific organisations. Besides, he said that there was no need to issue an appreciation letter to the organisation.

58. After discussion, the FVC endorsed the reimbursement of the activity expenses to the organisation.

“Lunar New Year Carnival of Aldrich Area in the Eastern District in Celebration of the 70th Anniversary of the Founding of the People’s Republic of China” (Application No.: 190480) of “Aldrich Area Committee”

59. The views and enquiries of Members about the case were summarised as follows:

(a) Mr CHAN Wing-tai said there was no need to make full payment for unperformed items in the captioned case, so it was more reasonable than those discussed above in which full payment had to be made in accordance with the contract. He remarked that the past practice in handling applications for reimbursement for activity cancellation was lenient and emphasised that if any organisation alleged of applying for reimbursement from the EDC in a dishonest manner, the current term of the EDC would take actions accordingly. Also, he would like to inspect the receipt for the game booth prizes.

Action (b) Mr KU Kwai-yiu opined that the EDO had seriously reviewed the situation and expense items of the activity before submitting the reasonable reimbursement application, so he agreed to endorse the reimbursement of the activity expenses to the organisation. He pointed out that the game booth prizes and the activity souvenirs could be distributed in activities held by the organisation and the information on the distribution should be relayed to Members through the Secretariat.

(c) Mr Kenny YUEN said some organisations might have made full payment for certain items due to the absence of clear provisions on the arrangement for activity cancellation, but he opined that organisations should not be accused of applying for reimbursement from the EDC in a dishonest manner without concrete evidence. Members might report the cases if there were doubts. He emphasised that the prevailing Guidelines should be optimised to facilitate the vetting of reimbursement applications.

(d) Ms Alice ISHIGAMI LEE remarked that all organisations were referring to the Guidelines for organising activities, but inconsistent fee charging criteria had been adopted for the item “sound system rental” in the captioned activity and in the carnival discussed above. The former required half payment only while the latter required full payment. She was worried about inconsistency in the practices for different organisations.

(e) Mr NG Cheuk-ip enquired about the number of the game booth prizes and the activity souvenirs and whether the activity name was printed on them. He also asked how the organisation would dispose of the prizes and souvenirs and said he would like to inspect the photographs of the prizes and souvenirs.

(f) Mr Patrick WONG agreed that the game booth prizes and the activity souvenirs should be disposed of at the discretion of the organisation.

60. The Chairman responded that the organisation planned to retain the game booth prizes and the activity souvenirs for distribution in its next activity.

61. After discussion and inspection of the photographs and receipts of the game booth prizes and the activity souvenirs, the FVC noted that the activity name was not printed on the prizes and souvenirs. The FVC endorsed the reimbursement of the activity expenses to the organisation and the prizes and souvenirs to be

Action distributed by the organisation in its next activity.

“2019-2020 Eastern District ‘Stand Firm! Knock Drugs Out’ Basketball Competition” (Application No.: 190498) of “Eastern District Fight Crime Committee”

62. Mr Derek NGAI said that full payment was not required for most of the expense items of the captioned activity while full payment was required for most of the expense items of the carnival organised by the same organisation. He queried the different practice adopted by the contractor of the carnival.

63. The Chairman responded that there might be contractual terms requiring full payment in the event of activity cancellation for carnivals with higher cost. He deemed it necessary to revise the Guidelines in order to plug the loophole.

64. After discussion, the FVC endorsed the reimbursement of the activity expenses to the organisation.

VI. Discussion on How to Handle Cases Which Do Not Meet the Criteria for Reimbursement of Expenses (FVC Paper No. 17/20)

65. The Chairman asked Members to declare their interests.

Name of Application Relationships with Relevant Organisations Member No. Ms Annie LEE 190059 Standing Committee Member and Director*, The Hong Kong Eastern District Community Association Limited * an executive capacity

66. The Chairman said that as Ms Annie LEE was associated with the applicant organisation in an executive capacity, she should be silent during the discussion of the application concerned and abstain from decision-making or voting for the application concerned.

67. The Secretary briefed Members on Paper No. 17/20.

Action (i) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Activity Details

“Lunar New Year Celebration for the Year of the Rat” (Application No.: 190377) of “Island Resort Owners Committee”

68. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Mr KU Kwai-yiu expressed concern over the reason for the substantial difference between the amount applied for and approved for the lion dance performance.

(b) Mr Andrew CHIU enquired whether only the amount approved for the lion dance performance, i.e. $5,000, would be reimbursed.

69. The Secretary responded that the amount to be reimbursed would be subject to the amount approved for the lion dance performance, i.e. $5,000.

70. After discussion, the FVC endorsed the reimbursement of the activity expenses to the organisation and would issue a reminder letter to the organisation.

(ii) A Case where the Promotional Materials Failed to Bear the Characters “Sponsored by the Eastern District Council”

“Tea Gathering in Celebration of Father’s Day” (Application No.: 190046) of “Chai Wan Women’s Association”

71. The Chairman suggested reimbursing the activity expenses and issuing a reminder letter to the organisation.

72. Mr Andrew CHIU enquired whether other promotional materials of the activity bore the characters “Sponsored by the Eastern District Council”.

73. The Chairman responded that it was only the counterfoils of the participation vouchers that had failed to bear the characters “Sponsored by the Eastern District Council”.

74. After discussion, the FVC noted that no EDC funding had been applied for the expenses of the promotional materials breaching the Guidelines. The FVC

Action endorsed the reimbursement of the activity expenses and would issue a reminder letter to the organisation.

(iii) Cases where the Position and/or Font Size of the Characters “Sponsored by the Eastern District Council” on the Promotional Materials Failed to Comply with the Guidelines

“Gala Dinner for the Elderly in Celebration of Hong Kong’s Reunification with China” (Application No.: 190058) of “Hing Fung Friends Club”

75. The Chairman suggested that the expenses for the promotional materials breaching the Guidelines should not be reimbursed while other expenses of the activity should be reimbursed following the past practice.

76. The Vice-chairlady added that the organisation had not applied for the EDC funding for the expense of the backdrops. Therefore, she suggested not reimbursing the expenses for the activity tickets, promotional leaflets and posters. She also asked Members to consider whether to reimburse other expenses of the activity.

77. After discussion, the FVC noted that the organisation had not applied for the EDC funding for the expense of the backdrops. The FVC endorsed not to reimburse the expenses for the promotional materials breaching the Guidelines (i.e. the tickets, promotional leaflets and posters) and would issue a reminder letter to the organisation.

“Movie Night in Celebration of the 70th Anniversary of the Founding of the People’s Republic of China” (Application No.: 190059) of “The Hong Kong Eastern District Community Association Limited”

78. The Chairman suggested not reimbursing the expenses for the promotional materials breaching the Guidelines while reimbursing other expenses of the activity.

79. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Mr Derek NGAI enquired whether the remark that the characters “Sponsored by the Eastern District Council” had not been printed near the organiser’s name on the activity’s promotional materials meant that the name of the collaborating organiser was printed in between the

Action organisation’s name and the characters “Sponsored by the Eastern District Council”. He also asked whether the EDC’s logo had to be displayed on promotional materials of the activity.

(b) Mr Andrew CHIU said it was clearly stipulated in the Guidelines that the characters “Sponsored by the Eastern District Council” should be printed near the organiser’s name. At present, the FVC could only adopt the suggestion of not reimbursing the expenses for the promotional materials breaching the Guidelines. He opined that the Guidelines should be further tightened in future, such as not reimbursing all expenses of an activity if the promotional materials breached the Guidelines’ requirement.

80. The Vice-chairlady responded that the characters “Sponsored by the Eastern District Council” on the promotional materials should be either next to the organisation’s name or immediately after it but the Guidelines did not require the display of the EDC’s logo on promotional materials of activities.

81. After discussion, the FVC endorsed not to reimburse the expenses for the promotional materials breaching the Guidelines but agreed to reimburse other expenses for the activity and would issue a reminder letter to the organisation.

(iv) A Case where the Wording of the Characters “Sponsored by the Eastern District Council” on the Promotional Materials Failed to Comply with the Guidelines

“Joyous Celebration for Christmas at New Jade Garden 2019” (Application No.: 190396) of “New Jade Garden Owners’ Committee”

82. After discussion, the FVC endorsed the reimbursement of the activity expenses and would issue a reminder letter to the organisation.

(v) A Case where the Full Name of a District Council Member was Printed on the Promotional Materials

“Social Inclusion and Love with Care” (Application No.: 190163(180456)) of “New Home Association Limited”

83. The Chairman said that the captioned activity was the only one which had applied for the Special Fund for “Community Caring and Integration Activities” the

Action year before and he encouraged other organisations to submit application for the Fund.

84. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Mr Andrew CHIU said that only the ways to deal with a recent similar case had been mentioned in the paper but there were some organisations which had not been reimbursed for any expenses of the activities due to the captioned issue in previous EDC terms. He said the then DC member concerned was supposed to have an understanding of the Guidelines’ requirement. He opined that full reimbursement for the activity should not be made and a warning letter with harsh wordings should be issued to the organisation.

(b) Ms CHAN Po-king remarked that she deemed it unacceptable for the then DC member concerned to breach the Guidelines and conduct political publicity through the activity. She opined that the then DC member concerned should not have asked the organisation to acknowledge his ward office, so she agreed that full reimbursement for the activity should not be made.

(c) Mr MAK Tak-ching opined that the organisation was well experienced in organising activities and should have an understanding of the Guidelines’ requirement. He reflected the malady that public venues in public housing estates had been rented or reserved by way of bid-rigging by certain organisations from time to time. He also pointed out that the activity was organised in the same year as the DC Election, so he disagreed to the behaviour of the then DC member concerned in providing the organisation with conditional assistance. He quoted that there would be a proportionate deduction in the reimbursable amount if the publications of a DC member breached the related Guidelines. Moreover, he opined that as the case was serious, the reimbursement amount for the activity should be deducted and a warning letter with harsh wordings should be issued to the organisation for deterrence.

(d) Mr HO Wai-lun quoted that there were organisations renting and reserving venues in public housing estates by way of bid-rigging and provided the venues for publicising individuals and he opined that the practice of the organisation and the then DC member concerned was

Action improper. He remarked that the organisation should have acknowledged the EDC only. He agreed that the practice for dealing with DC members’ applications for expense reimbursement should be followed and the reimbursement amount for the activity should be deducted. He suggested reimbursing half of the expenses for the activity only.

(e) Mr KU Kwai-yiu said that the explanation letter from the organisation showed no remorse and it repeatedly expressed appreciation for the then DC member’s assistance in implementing the activity. Consequently, he doubted whether the organisation could organise activities independently and he opined that the FVC should give particularly careful consideration to funding applications from the organisation in future. Meanwhile, he said that as the activity was organised in the same year as the DC Election, the behaviour required no explanation.

(f) Mr Patrick WONG opined that the organisation might not have stated the whole truth. It might be unfair to the then DC member concerned if the FVC made full reimbursement for the activity expenses. Therefore, the reimbursement amount for the activity should be deducted. He remarked that if there had been precedents that full reimbursement had not been made in the past, the FVC might consider adopting the same practice.

(g) Mr CHEUNG Kwok-cheong opined that the organisation might have deceived the EDC if it had learned about its failure to rent the venue before submitting the application and the activity expenses should not be reimbursed in that case. If the organisation only learned about the situation after submitting the application, the FVC should further look into the reasons for the venue to be successfully rented through a DC member but not in the capacity of the organisation.

(h) Mr Joseph LAI opined that if the reimbursement of the captioned activity would connive those alleged to have deceived the EDC, he agreed that the FVC might adopt the same practice if there had been precedents for full reimbursement not being made for activities in the past in order to eradicate unscrupulous practices.

(i) Mr Kenny YUEN opined that the FVC should consider whether the explanation from the organisation alone was credible and he suggested that the FVC should write to the then DC member concerned in order to

Action confirm the organisation’s explanation.

(j) Mr CHUI Chi-kin agreed that full reimbursement should not be made for the activity.

85. The Chairman concluded that the photographs of the activity submitted at present had reflected that there was a breach of the Guidelines, so the FVC should focus on dealing with the situation and there was no need to write to the then DC member concerned. He remarked that as the case involved political publicity, it might be inappropriate to make reference to cases involving personal publicity of general nature. He opined that reference should be made to other cases involving political publicity before further consideration of the ways to deal with the case. He suggested not reimbursing the activity expenses at the current stage.

86. After discussion, the FVC agreed to make reference to more related cases before deciding whether to reimburse the activity expenses. Nevertheless, a warning letter with harsh wordings would be issued to the organisation first at the current stage.

(vi) A Case where the Applicant Organisation Obtained “Unsatisfactory” Assessment for the Items and Received Other Comments in the Duty Member’s Evaluation Report

“Anti-fraud and Fight Crime Publicity Campaign in Eastern District” (Application No.: 190291) of “Eastern District Fight Crime Committee”

87. The Chairman suggested issuing a reminder letter to the organisation for reflecting Members’ view.

88. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Ms TSE Miu-yee said she was the Duty Member of the activity and she questioned the effectiveness in promoting fight crime messages through distributing souvenirs at a meal gathering of entertainment nature. She also remarked that although the Guidelines did not require invitation of the DC member of the constituency for attendance, she opined that as the activity was held in the current EDC term, the DC member of the constituency of the current EDC term rather than the one of the last EDC term should have been invited.

Action

(b) Mr KU Kwai-yiu opined that the organisation should not have organised the activity during an activity of an organisation which was not a co- organiser but should rather have organised the activity in an independent and open manner. He was concerned whether the funding for the activity had been spent on supporting the activity of the organisation which was not a co-organiser and whether the organisation which was not a co-organiser had sponsored the activity.

(c) Mr CHUI Chi-kin said the organisation considered that the activity concluded with a success while the Duty Member suggested otherwise in the evaluation report. He trusted the Duty Member’s opinion and asked the Chairman for a ruling on how the situation should be dealt with.

(d) Mr NG Cheuk-ip remarked that according to a group photograph provided by the Duty Member, a DC member of last EDC term was present at the activity but he had not been notified for attending the activity though he was the DC Member of the constituency of the current term. In addition, he said that no promotional materials printed with fight crime messages could been spotted at the activity venue.

89. The Secretary responded that the organisation had detailed in the explanation letter on organising the activity during the activity of another organisation. The organisation had also stated in the application form that after the funding approval, it would co-operate with relevant organisations to arrange for the inclusion of anti- fraud and fight crime promotional sections and souvenir distribution in the organisations’ activities, such as annual meal gatherings held in Chinese restaurants and recreational activities held in elderly centres.

90. The Chairman concluded that the nature of the activity was different from that of the activities of the non-co-organisers. He understood the limited effectiveness in promoting fight crime messages through the traditional way of souvenir distribution and opined that the issue should be squarely faced. He suggested issuing a reminder letter to the organisation to reflect the FVC’s opinion that the form of the activity failed to effectively promote fight crime messages and to state the FVC’s opposition against organising activities of the same form in future. He also remarked that the FVC might carry out detailed discussion on the forms of activity when vetting funding applications from the organisation in future and that the activity expenses should be reimbursed as the activity had been completed.

Action 91. After discussion, the FVC endorsed the reimbursement of the activity expenses to the organisation and would issue a reminder letter to the organisation. The reminder letter should reflect the FVC’s opinion that the form of the activity failed to effectively promote fight crime messages and state the FVC’s opposition against organising activities of the same form in future. Besides, the remaining souvenirs from the activity would be distributed in activities held by the organisation in future.

(vii) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Activity Name, where the Position of the Characters “Sponsored by the Eastern District Council” on the Promotional Materials Failed to Comply with the Guidelines and where the Applicant Organisation Failed to Apply to the Finance and Vetting Committee for Revision of Co- Organiser/Collaborating Organiser

“The 6th Hong Kong Inter-School Inline Speed Skating Championship” (Application No.: 190002) of “Hong Kong Inter School Inline Skating Association”

92. The Chairman said the organisation had not applied for the EDC funding for the expenses of the activity website. He suggested not reimbursing the expenses for the promotional materials breaching the Guidelines (including the posters, promotional leaflets and backdrops) but reimbursing other expenses of the activity, and issuing a warning letter to the organisation for its breach of more than one of the requirements in the Guidelines.

93. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Ms WEI Siu-lik enquired whether a warning letter or a reminder letter according to the precedents should be issued to the organisation.

(b) Mr Derek NGAI opined that although more than one of the requirements in the Guidelines had been breached but it was the first breach of each of the relevant requirement, and he reckoned that it might be due to the unfamiliarity of the Guidelines’ details, so he opined that the FVC might consider not issuing a warning letter.

94. After discussion, the FVC noted that no EDC funding had been applied for the expenses of the activity website. The FVC endorsed not to reimburse the expenses for the promotional materials breaching the Guidelines (including the posters,

Action promotional leaflets and backdrops) but agreed to reimburse other expenses of the activity to the organisation. Given that there were various types of promotional materials for the activity and the organisation had not applied for EDC funding for multiple times, the FVC agreed to issue a reminder letter to the organisation.

(viii) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Ticket Distribution Date of the Activity and where the Font Size of the Characters “Sponsored by the Eastern District Council” on the Promotional Materials Failed to Comply with the Guidelines

“Heartwarming Tribute to Parents” (Application No. 190012) and “Summer Heat in Celebration of Dragon Boat Festival” (Application No. 190013) of “C & M A Tsui Lok Good Neighbours Centre for the Elderly”

95. The Chairman said the organisation had not applied for EDC funding for the promotional materials breaching the Guidelines, so he suggested reimbursing the activity expenses and issuing a warning letter to the organisation for its two consecutive failures to meet the Guidelines’ requirements on the font size of the characters “Sponsored by the Eastern District Council” on the promotional materials while issuing a warning letter with harsh wordings to the organisation for its second and third failures to notify the EDC Secretariat of the change in the ticket distribution date.

96. Mr Kenny YUEN enquired whether the organisation had applied for EDC funding for the activity tickets.

97. The Secretary responded that the organisation had not applied for EDC funding for the activity’s promotional materials.

98. After discussion, the FVC noted that the organisation had not applied for EDC funding for the promotional materials breaching the Guidelines and endorsed the reimbursement of the activity expenses. The FVC also endorsed to issue a warning letter to the organisation for its two failures to meet the Guidelines’ requirements on the font size of the characters “Sponsored by the Eastern District Council” on the promotional materials. In addition, the FVC endorsed to issue a warning letter with harsh wordings to the organisation for its second and third failures to notify the EDC Secretariat of the change in the ticket distribution date.

Action (ix) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Activity Time, where Personal Publicity had been Involved and where the Font Size of the Characters “Sponsored by the Eastern District Council” on the Promotional Materials Failed to Comply with the Guidelines

“Eastern District Ballroom and Latin Dance Competition” (Application No.: 190024) of “World Centre Ballroom Dance”

99. The Chairman suggested not reimbursing the expenses for the activity’s promotional materials breaching the Guidelines but reimbursing other expenses of the activity and issuing a warning letter to the organisation.

100. Ms WEI Siu-lik would like to inspect the activity’s posters and promotional leaflets breaching the Guidelines.

101. After discussion and inspection of the promotional materials, the FVC endorsed not to reimburse the expenses for the activity’s promotional materials breaching the Guidelines but to reimburse other expenses of the activity and to issue a warning letter to the organisation.

(x) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Ticketing Date and the Activity Name

“Meal Gathering for the Elderly” (Application No.: 190242) of “Automotive Industry Eastern District Liaison Office”

102. The Chairman suggested reimbursing the activity expenses and issuing a warning letter to the organisation.

103. After discussion, the FVC endorsed the reimbursement of the activity expenses and the issuance of a warning letter to the organisation.

(xi) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Activity Name, where the Promotional Materials Failed to Bear the Characters “Sponsored by the Eastern District Council”, where the Applicant Organisation Failed to Apply to the Finance and Vetting Committee for an Additional Collaborating Organiser for the Activity and where the Actual Number of Participants was Smaller than Expected

Action “Felicity Garden Tour” (Application No.: 190265) of “The Incorporated Owners of Felicity Garden”

104. The Secretary supplemented that when dealing with an activity involving the failure of the activity placard on coach windows to bear the characters “Sponsored by the Eastern District Council” in the last meeting, the FVC eventually deducted the activity’s funding by $5 for each placard according to the funding cap for “poster design and printing” in Appendix 1 to the Guidelines.

105. The Chairman suggested reimbursing the activity expenses. However, as the actual number of participants was smaller than expected, the reimbursement amount should be determined according to the actual number of participants and the actual expenses of the approved items. Besides, the FVC should make reference to the precedent in the last meeting for the failure of the activity placard on the windows of the two coaches to bear the characters “Sponsored by the Eastern District Council” and deduct the activity’s funding by $5 for each placard according to the funding cap for “poster design and printing” in Appendix 1 to the Guidelines, and issue a reminder letter to the organisation for the breach of the Guidelines.

106. Mr Derek NGAI enquired about the extent of discrepancy between the actual and expected numbers of participants that would constitute a breach of the Guidelines.

107. The Secretary responded that in the past, cases failing to comply with more than one reimbursement criteria and having the actual number of participants being 25% smaller than expected would be discussed at meetings.

108. After discussion, the FVC endorsed the reimbursement of the activity expenses and the issuance of a reminder letter to the organisation. As the actual number of participants was smaller than expected, the reimbursement amount would be determined according to the actual number of participants and the actual expenses of the approved items. Besides, the FVC endorsed the deduction of $10 in total from the activity’s funding based on the funding cap for “poster design and printing” in Appendix 1 to the Guidelines, i.e. $5 each, for the absence of the characters “Sponsored by the Eastern District Council” on the activity placard on the windows of the two coaches in the activity.

Action (xii) A Case where the Applicant Organisation Failed to Notify the EDC Secretariat of the Change in the Ticketing Date and where the Actual Number of Participants was Smaller than Expected

“Sui Keung Happy Gourmet Tour” (Application No.: 190378) of “Sui Keung House Mutual Aid Committee”

109. The Chairman suggested reimbursing the activity expenses. Nevertheless, as the actual number of participants was smaller than expected, the reimbursement amount should be determined according to the actual number of participants and the actual expenses of the approved items, and as the organisation was experienced in EDC funding application, a warning letter should be issued.

110. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Mr CHAN Wing-tai disagreed to the organisation’s explanation and had reservation about approving any funding applications from the organisation before the end of the social movement. He opined that the organisation should be reminded of its responsibility in the warning letter.

(b) Ms LAI Tsz-yan agreed on the issuance of a warning letter and said the organisation should be reminded that the worries of some locals about possible accidents when going out should not be taken for the reason for the actual number of participants being smaller than expected.

111. After discussion, the FVC did not accept the organisation’s explanation but endorsed the reimbursement of the activity expenses and the issuance of a warning letter to the organisation. As the actual number of participants was smaller than expected, the reimbursement amount would be determined according to the actual number of participants and the actual expenses of the approved items.

VII. Report on Cases Not Meeting the Reimbursement Criteria for the First Time and Approved by Chairman/Vice Chairman with Committee’s Authorisation (FVC Paper No. 18/20)

112. The Chairman asked Members to declare their interests.

Action 113. The Chairman said that no Members had interests to declare for the Paper.

114. The Secretary briefed Members on Paper No. 18/20.

115. After discussion, the FVC noted the report.

VIII. Reimbursement Application of Activity from Give Grace Charity Association Ltd. (FVC Paper No. 19/20)

(For paragraphs 116 to 122, please refer to the attachments - restricted documents)

123. After discussion, the FVC urged the organisation to submit supplementary information and noted that the case would be further discussed upon receipt of complete information.

IX. Vetting of Funding Applications Regarding Projects from “Mutual Aid Committees, Owners Committees and Owners’ Corporation” under the “Eastern District Community Involvement Project Subsidy Scheme” (FVC Paper No. 20/20) X. Vetting of Funding Applications Regarding Projects from “Designated Organisations and Activities” under the “Eastern District Community Involvement Project Subsidy Scheme” (FVC Paper No. 21/20) XI. Vetting of Funding Applications Regarding Projects from “Other Non- government Organisations” under the “Eastern District Community Involvement Project Subsidy Scheme” (FVC Paper No. 22/20)

124. The Chairman asked Members to declare their interests.

125. The interests declared by Members were summarised as follows:

Action Name of Member Application Relationships with Relevant No. Organisations Mr KU Kwai-yiu 200025, Honorary Advisor, Eastern District 200027-030 Recreation and Sports Advancement Association Limited Mr Andrew CHIU 200033 Power for Democracy, the organisation of which the Member was the convenor, had co- operated with George Cautherley, director of the applicant organisation Community Development Initiative Limited but was no longer in co-operation at present.

126. The Chairman said that as Mr Andrew CHIU was associated with the applicant organisation in a nominal capacity, he could take part in the discussion and decision- making of the application concerned. In addition, as Mr KU Kwai-yiu was associated with the applicant organisation in a nominal capacity, he could take part in the discussion and decision-making of the application concerned.

127. The Secretary briefed Members on Paper No. 20/20.

128. The Chairman asked Members whether it would be necessary to include additional terms in the approved funding applications and he suggested that the organisations with approved funding would have to cancel the activities if the epidemic persisted in early July. Nevertheless, the FVC would continue to deal with the organisations’ reimbursement applications for the activity cancellation/pre- mature termination in accordance with the Guidelines.

129. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Mr CHAN Wing-tai expressed concern about the party who was to decide whether the epidemic was over. He said that the group gathering ban was still in effect and the government might in July continue to appeal to the public to be vigilant. He also quoted an example that he had submitted a venue application to the Housing Department but the

Action application was declined due to the uncertainty of the epidemic situation, so he opined that there was no need to make hasty approval for the applications. He also suggested that the organisations should submit funding applications after the epidemic was over in order to avoid public perception that the EDC encouraged group gathering activities.

(b) Mr James PUI opined that the organisations with approved funding should be asked to cancel the activities if there were still confirmed cases 28 days before the activities. He also said that the major target participants of the activities organised by the Eastern District Arts Council Limited and Eastern District Recreation and Sports Advancement Association Limited were children and teenagers and he was worried that the cost effectiveness of sponsorship for the activities might be affected as there might be a drop in the number of participants due to the possible absence of summer holiday for students in the current year.

(c) Mr KU Kwai-yiu opined that it was difficult to specify the exact dates on which the organisations with approved funding should cancel the activities. He remarked that the FVC should not approve any funding applications before the government provided a concrete answer on when the epidemic would be over in order to avoid arguments on reimbursement issues for activity cancellation in future.

(d) The Chairman opined that if the epidemic had eased, the FVC might consider approving the applications.

(e) Mr Patrick WONG said that there were roughly two types of applications, namely, entertainment and recreational activities involving group gathering and clean-up days for anti-epidemic purpose. The latter one was unaffected by time or the epidemic while for the former one, he opined that it was difficult to use the revocation of the group gathering ban or the absence of confirmed cases for 28 days as indicators for vetting the applications. He suggested that the FVC should consider approving applications for activities scheduled after late June or late July in view of the resumption of classes in May.

(f) Mr Peter CHOI said that majority of the applications received in the current round were for holding group gathering activities and the activities could not be held as the group gathering ban was still in effect at present. Therefore, he suggested that the applications should not be

Action approved at the current meeting and that the organisations should be asked to resubmit the applications after the revocation of the group gathering ban.

(g) Mr Andrew CHIU opined that as the group gathering ban was still in effect, the FVC might consider only approving group gatherings held for imparting information or skills, or handling supplies or items, that were conducive to the prevention and control of the specified disease as contained in Schedule 1 of the Prevention and Control of Disease (Prohibition on Group Gathering) Regulation (the Regulation (Cap. 599G)), for instance, anti-epidemic activities or clean-up days, and not approving other activities due to the uncertainty of the epidemic situation.

(i) “Tanner Garden Clean-up Day 2020” (Application No.: 200045) of “The Incorporated Owners of Tanner Garden”

130. The Chairman asked whether the FVC would consider the application for the clean-up day for promoting building hygiene. He said that the activity would meet the needs of the current epidemic and the EDC had also focused on sponsoring organisations for procuring cleansing supplies. He opined that if the epidemic had eased, the FVC might consider approving the application.

131. After discussion, the FVC approved the application.

(ii) Vetting of Eligibility for DC Funds of a New Applicant Organisation “‘A Breath of Fresh Air’ - Positive Anti-epidemic Psychology in Action Workshop” (Application No.: 200033) of “Community Development Initiative Limited”

132. The Chairman said that a psychological counsellor and a speaker with background in virology would be invited to hold a talk and anti-epidemic supplies would be distributed.

133. The Vice-chairlady added that the expected number of participants and beneficiaries was 1 008 in total.

134. The views and enquiries of Members about the agenda item were summarised as follows:

(a) Mr CHAN Wing-tai said the activity included a talk with group gathering

Action and thus involved a certain level of risk.

(b) Mr Derek NGAI opined that although there was yet a schedule for the revocation of the group gathering ban, the FVC might consider approving the application in view of the activity’s anti-epidemic theme and the advice on wearing masks by the speaker with background in virology.

(c) Ms CHAN Po-king remarked that the public was suffering from anti- epidemic fatigue and there was a need to provide them with psychological support. The FVC might consider approving the application if all participants would wear masks and practice social distancing.

(d) Mr Peter CHOI said that the activity was one of the exempted group gatherings under the Regulation (Cap. 599G), so he opined that the FVC might approve the application.

(e) The Chairman said that the organisation had submitted sufficient documentary proof for its status being a charitable institution or trust of a public character confirmed by the Inland Revenue Department and for possession of experience of one year or above in organising community activities. The organisation also maintained a close relationship with the community. Therefore, he asked Members to consider whether to endorse its eligibility for the EDC funding application.

(f) Mr Andrew CHIU expressed his abstention from approving the application of the organisation. He remarked that to the FVC’s understanding, the activity should be an exempted group gathering under the Regulation (Cap. 599G). However, he was worried that the FVC and the department might have different understanding, so he suggested that confirmation should be sought from the department even if the application was approved.

135. After discussion, the FVC agreed not to approve the application due to worries about the activity but endorsed the eligibility of Community Development Initiative Limited for the EDC funding application.

136. Finally, the FVC opined that there was still uncertainty in the epidemic situation. In order to safeguard public health and safety and to avoid the risks from organising group gathering activities, the FVC decided not to vet the funding applications in the current round (for activities scheduled between June and August,

Action except for clean-up days promoting building hygiene), and agreed to write to the applicant organisations to inform them of the decision. The FVC also endorsed one funding application from “Mutual Aid Committees, Owners Committees and Owners’ Corporation” on a clean-up day promoting building hygiene with a total funding of $10,000.

XII. Any Other Business

(i) Wages For Temporary Staff

137. The Secretary said that according to the prevailing Guidelines, the wage ceiling for temporary staff eligible for funding for activities was $59 per hour. The Home Affairs Department stated that the wages for temporary staff employed by District Offices were adjusted upward to $62.1 per hour with effect from March 2020. Therefore, for activities with assistance by temporary staff of the EDO, the funding cap for the expenses on wages had to be adjusted to $62.1 per hour. It was suggested that the funding cap for the wages of temporary staff on the Guidelines should be revised accordingly and that the Secretariat should be authorised to revise the related Appendix to the Guidelines.

138. After discussion, the FVC agreed to the revision and arrangement.

XIII. Date of Next Meeting

139. The fourth FVC meeting would be held at 2:30 pm on 14 July 2020 (Tuesday).

140. The meeting ended at 7:45 pm.

Eastern District Council Secretariat July 2020