General income for the reported year was HK$1,770 million, of which HK$1,430 million was in grants from the Government's University Grants Committee (UGC). The remainder included HK$340 million arising from tuition fees and other items. The drop in general income of 2.7% from last year's figure of HK$1,819 million was primarily attributable to the reduction of the UGC grants.

General expenditure was HK$1,765 million, an increase of 5.2% over last year's HK$1,678 million. Of this, HK$1,178 million (66.7%) was for academic departments and academic support centers, HK$267 million (15.2%) for maintenance of premises, and HK$138 million (7.8%) for administration. The remaining HK$182 million (10.3%) for other items included the payment for the University's Voluntary Redundancy Scheme implemented during the year. The Scheme will enable the University to make savings of approximately HK$68 million in salary payments over the triennium 2001/04.

After transfers to reserves/provisions, general expenditure over general income for the year showed a deficit of HK$235 million. In accordance with the general guidelines laid down by the UGC, this deficit was offset against surpluses brought forward from 1999/2000. As a result of the University's prudent and proactive financial planning in the past, reserves have been built up and are expected to be sufficient to deal with a projected deficit for 2001/04. As at 30 June 2001, the reserves and provisions of the University stood at HK$809 million, of which HK$617 million formed the General and Development Reserves.

Other operating income reached HK$219 million, an increase of 4.8% over last year's HK$209 million. This income was generated from self-financing activities and research contracts.

The University's balance sheet and income and expenditure statement are shown in Appendix C, while a detailed Treasurer's Report is contained in the University's Financial Statements, available separately.

Donations
More than HK$53 million of donations and pledges were secured during the year, as HKUST continued to receive generous support from the community. Gifts from individual, corporate, and foundation donors greatly contributed to the University's development as a leading academic institution.

During the year, sponsorships to HKUST's major research projects amounted to $16.51 million, including the following:

• The Hong Kong Jockey Club Charities Trust pledged $12.3 million to fund an innovative environmental project entitled "Mobile Real-time Air Monitoring Platform". The first of its kind in Hong Kong, the Platform enables researchers to measure and monitor Hong Kong's air quality in real time.
  
  
• The Trust continued its support of HKUST's Biotechnology Research Institute with further donations of $4.21 million towards its $130 million pledge.

Major donations to support the University's educational development in 2000/01 included a HK$1.6 million contribution from Television Broadcasts Ltd to the TVB Fund it established at HKUST.

Grants from private sources for faculty research projects amounted to HK$7.46 million. Of this amount, HK$1.5 million was jointly provided by COTCO, Lighthouse Technology Limited, and Strong Base Investment Limited as matching funds for a project supported by the Hong Kong Government's Innovation and Technology Fund. The project is aimed at helping industry develop new technology for the manufacture of inorganic blue/green LEDs.

On 20 September 2000, the University's Y K Pao Visiting Chair in Cultural Studies Fund was inaugurated. First of its kind at HKUST, the Fund was founded by Dr Helmut SOHMEN, a member of the University Court, with a generous donation of US$2 million (approximately HK$15.6 million).

During the year, the University distributed a total of 365 scholarships amounting to HK$12.58 million and 335 bursaries and loans amounting to HK$1.54 million. These included generous donations of HK$4.25 million from the Hong Kong Jockey Club Charities Trust, HK$1.63 million from the Dr Richard Charles and Esther Yewpick Lee Charitable Foundation, and HK$1.2 million from the Jebsen Educational Foundation.

Contributions for conferences, workshops, academic programs, and student activities stood at HK$3.04 million in 2000/01. The University also received in-kind donations of HK$10.25 million, including computer-aided design software for RF/microwave research with an estimated value of HK$10 million, donated by Agilent Technologies Inc. Other contributions included such items as equipment, software, and books.