GENERAL INCOME
General income for the year was $889 million, representing a 0.9% decrease from $897 million in 2000-01. UGC / Government Grants decreased slightly by $7 million but was more than offset by an increase of $26 million in tuition fee. Interest income and miscellaneous income decreased by $26 million mainly due to the drop in bank deposit interest rates.

GENERAL EXPENDITURE
General expenditure for the year was $880 million, representing a $103 million increase from $777 million in 2000-01 due to several reasons. About 70% of this increase was in staff cost and was mainly due to an upward general salary adjustment and annual salary increments in 2001-02, and some contractual redundancy, leave pay and ex-gratia payments under the early retirement scheme. The payment of Government rent and rates for the student hostels and staff quarters that covered retrospectively from the third quarter of 1999 to June 2002, and the rental of the Institute's Town Centre now funded by the recurrent grants instead of the earmarked reserve also contributed to $11.9 million increase in the cost of maintaining the premises. Furthermore, other expenditure to support teaching and learning initiatives and staff related benefits and allowances also increased.

RESERVES
As at 30 June 2002, total reserves amounted to $352 million, an increase of $9 million as a result of the transfer of the funding surplus to the General and Development Reserve Fund.

CAPITAL / DEVELOPMENT PROJECTS GRANTS
A total of $16 million in the form of capital / development projects grants was received from the UGC, against which the corresponding expenditure amounted to $14 million. The grants were used to fund the remaining payment for the construction of the Institute's Tai Po Campus and the alteration and improvement works in the Campus.