Of the self-funded programmes of the SCPE, Project Yi Jin with about 800 FTE students and the Pre-Associate Degree and Associate Degree programmes with about 250 FTE students were the most popular. Despite the keen competition in the Associate Degree market, SCPE operated successfully by offering unique programmes. The SCPE Associate of Arts (Music) programme is the only one of its kind in Hong Kong, and is particularly suited to the needs of those who are talented in music but did not achieve outstanding grades in the A-level examination. The inclusion of business administration and IT elements enhance the practicability of the programme by providing a wider diversity of pathways for graduates to select future career options.

Income and Expenditure
The Institute adopted the Hong Kong Financial Reporting Standard ("HKFRS") issued by the Hong Kong Institute of Certified Public Accountants during the year. As a result, the presentations and classifications of income and expenditure items on the Income and Expenditure Statement, as well as asset and liability items on the Balance Sheet had duly been revised. For the details of the changes in accounting policy in relation to the new standards, please refer to Note 2 of the Consolidated Financial Statements of the Institute. With this new reporting standard, the Institute has refined its accounting practices to an extent that is comparable to those of the private sector both in Hong Kong and internationally.

Income
Apart from the reduction of $126 million in UGC Block Grants, subventions from the UGC earmarked grants and from the other government agencies also decreased by $17 million when compared with the 2004/05 level. There was a decrease in tuition income of about $8 million and a slight decline in other income. As for investment and interest income which was reported as "Other Gains - Net" under the new standard of the HKFRS on the Income and Expenditure Statement, the Institute recorded an encouraging increase from $25 million in 2004/05 to $31 million in the year.

The Government launched the Second and Third Matching Grant Scheme for the UGC-funded institutions to obtain additional UGC funding through matching against every dollar of donation received. We are pleased to report that endowment, donations, scholarships and bursaries received during the year amounted to about $31 million, which was a significant increase when compared to $11 million in 2004/05. A major portion of the donations solicited was for the establishment of a Centre for Religious and Spirituality Education, which will make a major contribution to the teaching of ethical/religious studies subjects in schools and thereby prepare teachers to cope with the ongoing education reforms. It will also have a far-reaching impact on Hong Kong as teachers will be better prepared for the understanding and discussion of these subjects and this, in turn, can help transform the outlook of our future generations.