GRANTS FOR SPECIFIC PURPOSES
The Institute received from the UGC / Government a total of $132 million (2000-01:$154 million) in the form of grants for specific purposes. These included the grants for the Home Financing Scheme (HFS) and for housing-related expenses other than HFS, the Blister Programmes, and other activities such as language enhancement. Any surplus in these grants after the close of the financial year or the approved funding period would normally have to be returned to the UGC, unless approval from the UGC to carry-over the unspent balance is obtained.

INSTITUTE FUNDS
Thanks to the generosity of various organisations and individuals, endowment, donations, scholarships, bursaries and other sponsorships received this year amounted to $53 million. In particular, the Institute is very grateful to the Hong Kong Jockey Club Charities Trust for its pledged donation of around $92.7 million for the construction of a primary school. Construction for the primary school was completed in August 2002 and the HKIEd Jockey Club Primary School commenced its first academic year in September 2002. The Institute is also very grateful to the Shun Hing Education and Charity Fund which agreed to donate a total of $5 million to support academic activities designed to enhance the language-learning environment for the students of the Institute. The Institute would also like to express its deep appreciation to the Arthur Samy Memorial Fund managed by the HSBC Trustee (Hong Kong) Limited for its kind donation of $4 million to enable the Institute to establish a teacher education centre in the North East Normal University.

Other operating income increased by $5 million to $54 million (2000- 01: $49 million), and was mainly derived from the Institute's continuing professional education programmes / courses. During the year, the Institute entered into a loan agreement with the Government to borrow a total of $15 million to fund the start-up costs for the Institute's Associate Degree programmes. The loan is interest-free and will be repaid in ten equal annual installments starting from June 2004. The Associate Degree programmes now being offered are: Associate of Arts (Art & Design), Associate of Arts (Music), Associate of Science (Information Technology) and Pre-Associate Degree Foundation Certificate.