CITA 2007 Report

CITA ANNUAL REPORT 2007
Construction Industry Training Authority
Our Vision
To be the leader and pacesetter in construction training and craft accreditation
Our Mission
We will achieve our vision by: - setting standard of craft accreditation - integrating technological advances - delivering quality training - fostering professional ethics - nurturing safety awareness at work
CONTENTS
PAGE
CHAIRMANS REPORT INTRODUCTION MEMBERSHIP EXECUTIVE DIRECTOR AND ADMINISTRATIVE STAFF
3-7 8-9 10-12 13
ESSENCE OF TRAINING OPERATIONS AND MANAGEMENT
14-21
COMMITTEE REPORTS LEVY INCOME INDEPENDENT AUDITORS' REPORT INCOME AND EXPENDITURE ACCOUNT BALANCE SHEET STATEMENT OF CHANGES IN FUND AND RESERVES CASH FLOW STATEMENT NOTES TO THE FINANCIAL STATEMENTS APPENDICES
22-27 28 29-30 31 32 33 34 35-49 50-68
Chairmans Report
Ir Edgar C.P. Kwan, JP Chairman
In the year 2007, the Hong Kong economy attained a better I have great pleasure submitting this report forimproved the year 2003 growth. The pick-up in in wages and earnings, the job on behalf of the Board of the Authority. prospects and the persistent surge in private sector construction activities to an increase in the Ireceipt ofchairmanship construction levy. Thisled is my first report since took up on theThe 5th Chief Executive the Policy Address in October 2007 September 2003. announced It is indeed in a great privilege for me to be appointed that the Government would the undertake 10 infrastructure projects to as Chairman. I will uphold dedication and commitment of our boost economic including three transport related projects, immediate pastgrowth, Chairman, Mr. Billy W.H. Wong, and other four cross-border and urban redevelopment projects. distinguished past projects Chairmen in three leading the Authority in its provision The economic benefits to be brought about by these infrastructure of quality services to the construction industry. projects would total more than $100 billion annually and some During the past thisAll Authority continued to implement 250,000 jobs would beyear, created. these hammered out an optimistic measures and initiatives in response to the recommendations made prospect for the construction industry. As the training institute for in the Report of the Construction Industry Review Committee, which the industry, this Authority has the responsibility to complement the are relevant our work;by and to make necessary arrangements for policy of the to government strengthening its training efforts to meet the implementation of the reforms. the needs of the industry and the community at large. One of the major of this Authority in the year 2007 was to Enhancement andtasks Revision of the Full-time Training prepare for the amalgamation of CITA and the Construction Industry Courses Council (the Council) scheduled for 1 January 2008. The statutory Since the 2002/2003 training year, this Authority has extended functions performed by this Authority will then become those of the the training period of some of the Basic Craftup Courses two years, Council. Some of the functions will be taken by the to Construction and has incorporated a number of generic elements. The Industry Council Training Academy, which training will continue to provide first batch of trainees also completed two site practices within the services rendered by this Authority in the past three decades. the In year of 2003. With the support many employers, all trainees were the second half of the year, this of Authority set up a working group on able to acquireto valuable experience. The Authority amalgamation ensure practical that every matter in connection with has the since reviewed the site practice arrangements, with the aim of amalgamation could be smoothly implemented. providing the best pre-employment training to the trainees. Besides, Being the last Chairman of this Authority, I would like to take in the past six months, we review on the this opportunity to review itshave workconducted in carryingaout its statutory Construction Supervisor Trainee/Technician Training Programme. functions, together with its developments over the past three decades: It is recommended to extend this one-year full-time course to two years, update the course contents, enhance generic education and
Establishment adopt a sandwich and training Maintenance mode. These of measures Industrial will Training serve to strengthen Centres the training contents; and to enable the trainees to acquire
the supervision and management skills in of September construction supervisors This Authority was established 1975 by the as well as practical experience before they join the industry on fullenactment of the Industrial Training (Construction Industry) time employ. New promotion strategies will be formulated to attract Ordinance, and the levy collected from construction works undertaken young persons the construction training. in Hong Kongwith washigh thencalibre spent to onjoin establishing and maintaining
Trade Tests and Construction Workers Registration System
industrial training centres to provide training courses for the construction industry. Upon establishment of the first training centre To complement the Construction Workers Registration System in Kowloon Bay in June 1977, the first batch of trainees were enrolled (CWRS) expected to betrainees introduced soon by the Government, this and over 500 basic craft completed training in the following Authority continued toin expand in the year of its trade testing year. With the boom the economy in the scope 80s, this Authority set programme for skilled and semi-skilled workers. Thoseand who passed up its second training centre in Kwai Chung in 1982 its third the testscentre would be issued certificates certifying their standards of training in Aberdeen in 1989. Following the commencement skills. They would be able training to register as skilled or Shui, semi-skilled of the operation of the fourth centre in Sheung and the workers accordingly. The Authority hasAberdeen also completed the Centre, vetting takeover of the training activities of the Training of the contents and requirements for all designated trades in the the Aberdeen Training Centre was renamed as the Management building and civil engineering sector for which a person may be Training and Trade Testing Centre, and started to offer various kinds registered as a registeredand skilled worker and registered semi-skilled of part-time management safety training courses and to coordinate worker under the proposed CWRS. Up to the end of April 2004, a the trade testing programme. total This of 29,634 and initially 29,494 ran workers passed the trade and Authority only one training centretests and now intermediate trade teststraining respectively. operates a total of four and trade testing centres. Besides, it also established four outdoor training grounds on land by To assist the workers in preparation for taking the granted trade tests, the government to provide practical training space for trainees and the Authority proposed to produce compact discs to make known to various types of tests; tradeand andto certification To better theconduct contents of the practical publish the tests. questions of the utilize the spatial resources, this Authority conducted a thorough written part with answers for workers to do revision before taking review of the usage ofthis the Authority centres and the outdoor training grounds the written tests. As has agreed a few years ago to in recent years. The types of training courses and trade tests to be assume the role of registration body under the proposed CWRS, conducted in the premises were redefined in 2007 so that the training relevant representations and observations were submitted during the and trade testing could be more effectively consultation stage of the legislative processconducted. in the year.
Provision of Training Courses for for Levy Construction Industry Amendments to Ordinance on Electrical and In its early days, the Authority only provided basic craft courses Mechanical Works
and short courses for training, respectively, youngsters who had The Legislative Council passed in March 2004 the Construction completed F.3 and adults who intended to join the construction Industry Levy (Miscellaneous Amendments) Ordinance 2004, industry. From 1980 onwards, it offered a supervisor/technician empowering this Authority to collect levies from Electrical and training programme for F.5 graduates. In the mid-90s, in response Mechanical (E&M) works for the provision of related training and to the development of the industry and the new legislative trade tests. The Authority studied several options for implementing requirements, the Authority introduced numerous continuing the expanded training and trade testing functions for E&M workers education courses for in-service construction practitioners. The in the construction industry. The Vocational Training Council was coverage of its training provisions was then extended from presubsequently appointed as an agent for CITA in the provision of vocational to in-service training. The variety of the training courses these E&M training courses and trade tests for three years initially. was also broadened from the teaching of craft skills to the imparting An agreement was signed by both parties at the end of March 2004. of management know-how, safety knowledge, supervisory theories Meanwhile, this Authority would formulate the strategies and develop and the like. At present, this Authority offers more than a hundred long term plans for the trade tests and skills enhancement programmes types of training courses for persons intending to join the industry for the E&M workers in the construction industry. and for in-service practitioners of various ranks. After in-depth discussion with Bill related government departments Construction Industry Council and organisations, subsequent to a serious crane incident in late July its report published in 2001, the Construction Industry Review 2007,In the Authority, in addition to offering regular courses, introduced Committee recommended to establish an industry co-ordinating body. the Tower Crane Worker Silver Card Course. The first class was The functions of this statutory body would include: to tender advice then launched in August for in-service workers. Up to the end of
2007, and make a total recommendations of 20 classes were to Government conducted and on over strategic 340 workers matters, major were trained. policies Moreover, and legislative this Authority proposals alsothat thoroughly may affect considered or are connected offering a series with the of construction training courses industry; in relation to promote to the the operation industrys of on-going cranes, and development planned to offer andseven improvement; such courses to in formulate the years codes to come. of conduct; These included to encourage the Construction research Materials activitiesRigger and the Silver use of Card innovative Course, techniques, launched in October to name 2007, a few. which The by years Government end comprised submitted a total the of Construction nine classes, catering Industryto Council more than (CIC) 240 Bill trainees. to the Legislative In addition, Council in line in early with the2004. growing Upon interest passing of the of the community Bill, the in CIC heritage will be preservation established and this repair, Authority the Authority will then be offered subsumed an Introductory and become aCourse subsidiary on body under the Conservation Built CIC, Heritage. and continue The Authority to assume will theactively trainingpursue and trade the testing role and development of functions. other training Collection courses in of relation levies will to the come preservation under the CIC. of heritage. In the year, this Authority also offered comments during the legislative Endeavours process by the of government the said Bill, to introduce and rendered the Qualifications advice on enhancement Framework, and to the levy 3+3+4 collection new senior system secondary and other academic provisions. structure to be implemented in the 2009/10 school year, will affect intakes of Open and Proactive Leadership to Accomplish Programme, Our Vision the Basic Craft Courses and Supervisor/Technician and Mission because most Form 3 students would be directly admitted to Form 4 and Form 5 graduates to Form 6. new The Authority continued to actively To meet the Authoritys challenges, all new and rereview the training courses, including training content, level, mode, appointed Members and management staff joined me in a brainadmission requirements and paths for further studies, in order to meet storming session in end November 2003. We reviewed our vision future developments. and mission, and agreed on the following seven objectives for the From 1977 to the end of 2007, this Authority trained a total of coming year: 1.16 million manto times, out of definite which over man times the Board set clear and work 60,000 objectives, gain the completed the full-time courses and 1.1 million man times the partcommitment of all staff who will dedicate to accomplishing time courses. This clearly evidenced the popularity of the training the goals; courses. to establish a reliable and effective mechanism which enhances the process of dissemination of information and Certification and Trade Tests for Construction Workers promotes two-way communications; Since 1990, this has been conducting trade tests to unify the Authority employment terms and conditions and for to construction craftsmen of six main trades. From 1998 onwards we complete the review on the staff appraisal system; offered tests for construction workers intermediate to complete trade the review onsemi-skilled staff remuneration and benefits; to ascertain the standards of their Over this period, the number management staff to leadskills. all staff to develop an enlightened, of tradescooperative, covered by the Authoritys Trade Testing Scheme increased creative and positive work culture; gradually line with contractual requirement thatof public works toin formulate athe plan for comprehensive review the training projects and must engage a certain percentage of qualified craftsmen on trade testing functions, and to complete major revamps; construction sites. Later, we actively increased the number of building and and civil engineering trades covered by thework Trade Testing Scheme to review and redesign all major processes and to so as to complement the implementation of the construction workers review the deployment of resources for optimum uses. registration system by the government. At present, the number of The management staff immediately initiated action plans to trades available for trade tests and intermediate trade tests has achieve the above objectives. Up to now, firstfruits were evident in increased to 54 and 28 respectively. In addition, from 1993 onwards, many areas. As regards the formulation and implementation of the we conducted certification tests and certification courses cum tests work objectives, the Board and the management have established for construction plant operators. These construction plants included effective communication mechanism. The Efficiency Enhancement gondolas, builders lifts, cranes and load-shifting machines. Committee continues to amendment monitor their revises Subsequent to the toimplementation the Ordinance, and from 2005 them as and when necessary. In respect of staff communication, all onwards the Authority has introduced intermediate trade tests and staff members were invited to attend a briefing on the seven work trade tests for a total of 12 construction related E&M trades. objectives setend for the year 2004 following the brain-storming By the of 2007, a total of 63,000 trade tests and session. 46,000 Besides, regular meetings of the Management Committee, intermediate trade tests were conducted for the building and Staff civil Consultative Committee, and individual training were engineering trades. Whereas, 1,800 trade testscentres and 11,000 resumed. intermediate trade tests in total were conducted for the construction
related For E&M the staff trades. appraisal In addition, system,the I was number givenof tocertification understand that tests a and review re-validation on the existing testsappraisal conducted system, for construction the format of plant the operators appraisal reached forms and 70,000 the mechanism man times.of awarding annual increment were near completion. The Authority Proposed regularly changes reviewed would be and submitted expanded shortly the contents for the and consideration types of the oftrade the relevant tests with Committee. the related government In line withdepartments the overall and work organisations objectives of connected the Authority, with the theconstruction management industry. is in the In process order to of enable developing construction a strategic workers human to resources gain the recognised management qualifications, plan and a so systematic as to meet staff thetraining legislative andrequirements development and scheme. enhance the status of construction workers, the Authority offered the required trade tests Whilst the consultancy study on the remuneration, benefits and to set standards for various construction skills. Certification of the employment conditions of the staff is still on-going, the management skill levels of frontline construction workers will also help enhance has taken measures to contain the number of staff through flexible the overall quality of local construction work. and optimal deployment of staff. The related Committee would soon initiate an overall reviewCompleting of the rationale for and the amount of Placement of Persons Training Courses existing allowance with a view to bringing them in line with prevailing To enable trainees to put into practice what they have learnt practices in Hong Kong. and to join the construction industry upon graduation, this Authority Since last December, the management adopted and has been providing placement services for graduates of an theopen full-time proactive attitude at should cascade down all levels training courses. In work, 1998, which this Authority launched the to Employers of staff. It also took encouraging a holistic and realistic approach in implementing Subsidy Scheme, employers to employ full-time the policyon proposals and work plans. This apprenticeship would help developing graduates a monthly-salary basis, to sign contracts an open and positive work culture. Regarding comprehensive with them and to provide in-service training. The the Trainees Placement review and rationalization of major work processes, cost Section of this Authority regularly visits and counsels individual the apprentices centres have completed the review of existing processes to provide support. Since its launch, the Scheme haswithin been their well responsibilities, was in the midst streamlining and proofreading received by the and employers, and has of enabled a significant number of graduates to complete systematic on-the-job training. them. Up to the end of 2007, a total of 1,994 applications for subsidy I am confident that with the solid experience gained over the were approved and 1,325 apprenticeship contracts were processed years in carrying out reforms and with the full support of all members by the Authority. We continue to provide the placement service to of staff, we will achieve the desirable outcomes relevant to the work assist graduates to join the construction industry so as to replenish objectives set by the Authority. the construction workforce. In line with the expanded statutory functions, the membership Construction Workers Registration of this Authority will be changed to include representatives from the HongThe Kong Federation ofappointed Electrical as and Mechanical Ltd. Authority was the Registrar Contractors of Construction and the Union for Electrical and Mechanical Workers in the Workers in February 2005, and started to offer registration services construction industry. The end ofthe theWorkers term of office of the current for construction workers through Registration Office Board Members be The advanced toof the 31st May 2004. I would established in latewill 2005. number applications for registration like to thank fellow Board Members for their invaluable advice submitted bymy construction workers surged drastically before the on the formulation of policies and midlong-term development implementation, on 1st September 2007, ofto the Phase One Prohibition, plans of the Authority. least for their active participation in the under which employers Not are prohibited from employing unregistered work of various in steering of major workers to carrycommittees out construction workthe on implementation construction sites. This work plans immediately and policies. On of the Authority, would like to Authority putbehalf in place a number ofI contingency record our gratitude to and Mr. Wong Man-kai who will leave us at the measures. Resources manpower were swiftly redeployed to end of May 2004, andapplications those members retired in September 2003. process over 20,000 for who registration within a month, to They included Louis H.W. Wong, Mr. Dominic K.K. Lam, Mr. enable workersMr. to register before the deadline. Fung By Kin-chor and C.H. Cheng; Mr. Chow Tung-shan, the end ofDr. theHoward year 2007, over 220,000 applications for the public officer who left the on transfer to another division registration were processed by Board the Workers Registration Office, and within his department; Mr. Gordon W.F. Cho, the long-serving efforts continue to be and made to complement enforcement of the Board Member who has taken up theOrdinance. post of Executive Director since Construction Workers Registration December 2003. I at would like of to welcome Mr. Wan Koon-sun In addition, the also request the Construction Workers who will join the Board in the coming June representing electrical Registration Authority (CWRA), four specified training courses were and mechanical workers in the construction industry. offered specifically for registered skilled workers (provisional) in
July 2007, as a route other than the passing of relevant trade tests for these workers to apply for registration as Registered Skilled Workers. In closing, I would like to express my wholehearted appreciation Up to the end of 2007, a total of 66 provisionally registered skilled to members of staff of this Authority who worked hard and with workers successfully completed the assessment and became eligible dedication, and to the HKSAR Government and the industry for their to apply for registration as Registered Skilled Workers for the trades unfailing support. I sincerely hope that we can continue to count on concerned. This Authority will continue working with CWRA to your support and guidance in discharging our existing and expanded monitor provisional registration of the remaining trades and to functions. introduce the required specified training courses for workers to complete within three years after provisional registration, so that they can apply for registration as Registered Skilled Workers.
Financial Edgar C.P. Situation Kwan

Chairman Construction levy collected from the local construction projects is the main source of operating income of the Authority. Throughout May 2004this Authority has strived to put in place various cost saving the years, and efficiency enhancement measures to maintain a healthy financial condition so that its operations would not be affected by the ups and downs of the economy. Up to the end of 2007, the funds of this Authority amounted to $380 million, and according to the Construction Industry Council Ordinance all assets of this Authority had to be vested in the Council on 1 January 2008 to carry out its statutory functions for the construction industry.
Looking Ahead
I was appointed as Chairman of the Construction Industry Training Authority in September 2003 and since then I have submitted four reports on behalf of CITA. This report will be the last report submitted by this Authority. I am deeply grateful to all Authority Members and to the staff of CITA for their support, which resulted in smooth implementation of various policies over the years. Services provided by CITA over the last thirty years and the efforts made in training and trade testing work have gained wide recognition. With the imminent amalgamation with the Council, I strongly believe that all the staff of CITA will continue to work hard and discharge their duties diligently and enthusiastically in the new organisation. I would also like to thank again all the past Authority Members who served on CITA. In closing, I on behalf of CITA would like to express sincere gratitude to the industry and the HKSAR Government for their staunch support over the past three decades, without which this Authority would not have been able to effectively carry out its functions and to contribute to the development of the construction industry. Ir Edgar C.P. Kwan, JP Chairman December 2007
Introduction
Constitution
The Construction Industry Training Authority was established in September 1975 by the enactment of the Industrial Training (Construction Industry) Ordinance 1975. The membership of the Authority consists of a Chairman and twelve members, all of whom are appointed by the Chief Executive. Consequent upon the enactment of the Construction Industry Levy (Miscellaneous Amendments) Ordinance 2004 on 1 June 2004, the constitution of the Authority was revised as follows: 2 shall be persons nominated by the Hong Kong Construction Association Limited; 1 shall be a person nominated by the Hong Kong Federation of Electrical and Mechanical Contractors Limited; 1 shall be a person nominated by the Hong Kong Institute of Architects; 1 shall be a person nominated by the Hong Kong Institute of Surveyors; 1 shall be a structural engineer nominated by the Hong Kong Institution of Engineers; 1 shall be a civil engineer nominated by the Hong Kong Institution of Engineers; 1 shall be a person who holds office as an official of a trade union representing workers employed in the construction industry; 1 shall be a person who holds office as an official of a trade union representing electrical and mechanical workers employed in the construction industry; 1 shall be a person nominated by the Executive Director of the Vocational Training Council; 2 shall be public officers; and 1 shall be a person, not being a public officer or person connected with any of the above-mentioned organizations.
Statutory Functions
According to the Industrial Training (Construction Industry) (Amendment) Bill 1999, the functions of the Authority include : to establish and maintain industrial training centres; to provide training courses for the construction industry; to assist, including to assist by way of financial provision, in the placement of persons completing training courses; to make recommendations with respect to the rate of levy; and to assess the standards of skills achieved by anyone in any kind of work involving or in connection with the construction industry, conduct examinations or tests, issue or award certificate of competence and establish the standards to be achieved in respect of such work.
Besides, the Authority is appointed in February 2005, under the Construction Workers Registration Ordinance enacted in 2004, as the Registrar of Construction Workers to perform the functions of and exercise the powers conferred on the Registrar.
Committees
In the year, the Authority discharged its functions with the advice of the following standing committees, which comprised members of the Authority and co-opted members: Committee on Construction Training Courses Committee on Building and Facilities Management Committee on Administration and Human Resources Committee on Finance and Investment Committee on Levy Committee on Trade Testing Committee on Employers Subsidy Scheme There are also a number of boards of studies and course advisory committees to advise on the relevant training programmes. The terms of reference and membership of the Standing Committees are given in Appendix 2 whilst those of the Boards of Studies and Course Advisory Committees are given in Appendix 3.
Meetings
The Authority met 5 times, and its Standing Committees 14 times during the year 2007. The Boards of Studies and various Course Advisory Committees also held a total of 3 and 28 meetings respectively.
Membership
(from 1 June 2006 to 31 December 2007)
Chairman
Ir KWAN Chi-ping, Edgar, JP
Nominated by the Hong Kong Construction Association Limited
Members
Ir LEE Wing-kee, Stephen
Nominated by the Hong Kong Construction Association Limited
Mr. CHONG Kin-lit, Paul

Nominated by the Hong Kong Federation of Electrical and Mechanical Contractors Limited
Mr. CHOI Wun-hing, Donald

Nominated by the Hong Kong Institute of Architects
Mr. CHENG Wai-hung, Nelson

Nominated by the Hong Kong Institute of Surveyors
Ir KWAN Po-jen, Helen

A structural engineer nominated by the Hong Kong Institution of Engineers
Ir YU Sai-yen
A civil engineer nominated by the Hong Kong Institution of Engineers
Mr. CHOI Chun-wa, MH

An official of a trade union representing workers employed in the construction industry
Mr. WAN Koon-sun, MH

An official of a trade union representing electrical and mechanical workers employed in the construction industry
Ir Dr. Chan Wan-ching, Lawrence (from June 2007) Ir FU Siu-pun (up to May 2007)
Nominated by the Executive Director of the Vocational Training Council
Mr. TONG Sek-por, David

Representing the Secretary for Development
Mr. TSO Sing-hin

Representing the Commissioner for Labour
Ir TAM King-leung
A person not being a public officer or person connected with any of the organizations mentioned above
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Chairman and Members of the Authority
Ir Edgar C.P. Kwan, JP
Mr. Paul K.L. Chong
Ir Stephen W.K. Lee
Ir Tam King Leung
Mr. Nelson W.H. Cheng
Ir Helen P.J. Kwan
Mr. Donald W.H. Choi
Mr. Choi Chun Wa, MH
Mr. Tso Sing Hin
Mr. Wan Koon Sun, MH
Ir Yu Sai Yen
Mr. David S.P. Tong
Ir Dr. Chan Wan Ching
Ir Fu Siu Pun
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Chairman and Members of the Construction Industry Training Authority

(First row from left): Mr. Tso Sing Hin; Ir Tam King Leung; Ir Edgar C.P. Kwan, JP (Chairman); Mr. Wan Koon Sun, MH; Mr. David S.P. Tong (Back row from left): Ir Yu Sai Yen; Ir Dr. Chan Wan Ching; Mr. Nelson W.H. Cheng (Absent): Mr. Paul K.L. Chong; Ir Stephen W.K. Lee; Ir Helen P.J. Kwan; Mr. Donald W.H. Choi; Mr. Choi Chun Wa, MH
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Executive Director and Administrative Staff

(As at December 2007)
Executive Director
Mr. Charles D.Y. Wong
Administrative Staff
Mr. Wong Chi Lap - Senior Manager (Safety Training & Trade Testing) Mr. Chu Yin Lin - Senior Manager (Construction Training)
Accounts Department
Mr. Alfred M.H. Wong - Accounting Manager Mr. Fong Kam Shan - Information Technology Manager
Secretariat
Mrs. Sophie S.Y. Leung - Secretary to Authority
Human Resources Department

Miss Eliva M.Y. Au* - Human Resources Manager
Kowloon Bay Training Centre

Mr. Mok Peng Lam - Centre Manager
Kwai Chung Training Centre

Mr. Chu Yin Lin - Senior Manager (Construction Training)
Sheung Shui Training Centre

Mr. Ho Siu Kwan - Centre Manager
Management and Safety Training Centre

Mr. John W.T. Leung - Centre Manager
Trade Testing Centre

Mr. Edmond Y.W. Lam - Centre Manager
Trainees Recruitment and Placement Department

Mrs. Olivia M.C. Yiu - Trainees Recruitment & Placement Manager
Workers Registration Office

Mr. Law Sai Kit - Registration Manager
* Ms Au left in January 2008
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Essence of Training Operations and Management

Administration and Accounting
At the headquarters of the Authority are the Secretariat, Accounts Department, Human Resources Department, Trainees Recruitment and Placement Department, and the Construction Workers Registration Office. The Secretariat provides committee services and administrative support. The Accounts Department oversees the financial operations of the Authority, and the assessment and collection of levy from contractors. The Human Resources Department is responsible for the management of human resources of the Authority. The Trainees Recruitment and Placement Department is responsible for the recruitment of trainees and the provision of placement services to persons completing CITA training courses. The Construction Workers Registration Office, which was established subsequent to CITA being appointed as the Registrar of Construction Workers, provides registration services to construction workers.
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Training and Trade Testing Centres

The Authority manages four construction training and trade testing centres located in Kowloon Bay, Kwai Chung, Sheung Shui and Aberdeen. The Kowloon Bay Training Centre, opened in 1977, has a total floor area of about 12,500 square metres. This Centre together with the Sheung Shui Training Centre, which commenced operations in 1995 and has a total floor area of about 24,000 square metres, are mainly used for conducting the Basic Craft Courses and the Construction Supervisor/Technician Programme. Established in 1982, the Kwai Chung Training Centre has a total floor area of around 15,000 square metres. Most of the full-time adult short courses are conducted in this Centre. The Management Training and Trade Testing Centre commenced operation in early 1995 with a total floor area of about 15,400 square metres. The Secretariat, Accounts Department, Human Resources Department, Trainees Recruitment and Placement Department, Construction Workers Registration Office and two centres, i.e. the Management and Safety Training Centre and the Trade Testing Centre are also housed in this Centre. The Management and Safety Training Centre offers a wide range of continuing education courses and safety training courses. The Trade
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Testing Centre conducts trade tests for construction craftsmen and intermediate trade tests for semi-skilled workers. This Authority also operates a total of 4 outdoor training grounds. Two of them are located in Sheung Yuet Road and Wai Lok Street in Kowloon Bay, with a total plan area of around 27,000 square metres. These two training grounds are mainly used for conducting short courses, and for outdoor practical training of Basic Craft Courses and Construction Supervisor/Technician Programme. There is another training ground in Shatin with a plan area of around 24,000 square metres, where the certification tests of various construction plants and related short courses are conducted. Some trade testing activities are also conducted in the Shatin Training Ground. Situated in Tuen Mun, the fourth outdoor training ground has a plan area of 12,000 square metres. Certification tests for loadshifting machinery operations and related short courses are conducted in this training ground.
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Staff
At the end of the year 2007, the Authority employed a total of 373 full-time staff. An organization chart of the Authority is given in Appendix 1. During the year under review, a total of about $377,000 was spent on financing over 1,100 staff development programmes, which included industrial attachment, site visits, short courses and seminars, courses/trade tests taken to fulfill CITAs requirements, and courses on a part-time basis leading to a qualification.
Training Courses
The Authoritys training centres conduct three major categories of training courses the one-year or two-year full-time courses, fulltime adult short courses and part-time courses. Safety awareness, safe practices at work and occupational ethics have been integrated into these training courses.
A. One-year or Two-year Full-time Courses

The one-year or two-year full-time courses, which include the Basic Craft Courses for Secondary Three school-leavers, and the Construction Supervisor/Technician Programme for Secondary Five school-leavers, aim at training new blood craftsmen and technicians/ supervisors.
(1) Basic Craft Courses

The nine Basic Craft Courses on offer include the following: Two-year programmes Bricklaying , Plastering and Tiling Carpentry and Joinery Painting, Decorating and Sign-writing Plumbing and Pipe-fitting Metal Works Marble-laying One-year programmes Construction Plant Maintenance and Repairs Electrical Installation Construction Scaffolding Trainees enrolled on the Basic Craft Courses have to major in one of the above nine key trades according to their interests and abilities. Trainees learn the basic skills and knowledge of the selected trade through practical training in workshops and underlying theories in classroom. Two-year courses will also include site practice at different stages of training for trainees to acquire site experience. Besides, they have to learn another related trade. The above trades of the Basic Craft Courses, with the exception of Marble-laying and Metal Works, are all designated trades under the Apprenticeship Ordinance. On completion of their training with the Authority, trainees in the designated trades who are under 19 years of age are required by law to enter into apprenticeship contracts
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with their employers to receive more organized on-the-job training. Having completed their apprenticeship and the associated technical education, trainees will be recognized as a qualified craftsman in the respective trades. In 2007/2008 training year, the total number of training places for the one-year and two-year Basic Craft Courses was 631.
(2) Construction Supervisor / Technician Programme

This Programme consists of three 2-year diploma courses in building construction, civil engineering and building services; and one 1-year certificate course for quantity measurement technician. Students would be sponsored to take a relevant IVE Part-time Higher Diploma Course during the course of study at CITA. Site practice will be arranged at different stages of training for trainees of 2-year diploma courses to acquire site experience. On completion of this programme, each trainee is expected to work with a contractor as a supervisor/technician trainee to acquire hands-on practical experience. All graduates whilst employed will have to complete the relevant part-time Higher Diploma Course at the Hong Kong Institute of Vocational Education to become a qualified supervisor/ technician. In the 2007/2008 training year, the total number of training places for the three 2-year diploma supervisor courses and the 1year certificate technician course was 249.
B. Full-time Adult Short Courses

Short courses are designed for adults who wish to acquire a specific construction skill in a relatively short period to enable them to join the industry. The course duration varies from several weeks to 6 months and classes are conducted on a need basis. In 2007/2008 training year, a total of about 900 full-time Adult Short Courses training places would be provided.
C. Part-time Training Courses

The Authority offers a wide range of part-time courses. These courses are intended for in-service construction personnel who seek re-training and up-grading in technical skills, or supervisory or technical knowledge. Whilst some of these part-time courses are open to the public, some are tailor-made to suit the specific needs of individual construction companies and other related organizations. The part-time courses offered by the Authority can be classified into five main categories: (i) Skills Enhancement; (ii) Safety Related; (iii) Technology and Supervision Related; (iv) Trade Test Related; and (v) Commissioned. Some training courses in categories (ii), (iii) and (iv) are recognized by a number of Hong Kong professional institutions as satisfying their Continuing Professional Development Requirements.
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Trade Tests and Certification Tests

At present, the trade tests and certification tests conducted by the Authority are as follows:
(A) Trade Tests For Construction Craftsmen and Intermediate Trade Tests
The Authority has been conducting trade tests for craftsmen of the construction industry since 1990. In the year 2007, the number of building and civil engineering trades covered by the Trade Testing Scheme and Intermediate Trade Testing Scheme were 54 and 28 respectively. To complement the implementation of the Construction Workers Registration Ordinance, the Authority provides relevant trade tests for those trades designated under the Ordinance. In the year under review, the Authority conducted a total of 4,663 trade tests and 2,837 intermediate trade tests with 2,631 and 2,081 man-times having passed the respective tests. Details of the trade tests and intermediate trade tests conducted and their respective passing rates are given in Appendices 4 and 5.
(B) Certification Tests and Certification Courses For Construction Plant Operators
Since 1993, the Authority has been conducting certification tests and certification courses with certification tests for construction plant operators. At present, the certification tests and courses on offer include: (i) certification tests and re-validation tests for crane operators; (ii) certification course and re-validation course for person working on temporary suspended working platform (gondola); (iii) certification course and re-validation course for operator working on builders lift; and (iv) certification tests and re-validation tests for loadshifting machine operators. In the year under review, the Authority conducted a total of 2,072 certification tests / certification courses and 2,339 revalidation tests / re-validation courses for construction plant operators with 1,791 and 2,316 man-times having passed the respective tests / courses.
(C) Trade Tests for Electrical and Mechanical Workers and Intermediate Trade Tests
The Construction Industry Levy (Miscellaneous Amendments) Ordinance passed in 2004 empowers CITA to collect levies from Electrical and Mechanical works to fund the provision of related trade tests and training. The Authority started to offer intermediate trade tests and trade tests for construction related E&M trades respectively in January and November 2005.
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In the year 2007, the Authority conducted a total of 835 trade tests and 3,203 intermediate trade tests for E&M workers with 496 and 2,570 man-times having passed the respective tests.
At the commencement of the 2007/2008 training year, the recruitment results of the Basic Craft Courses were satisfactory. The total number of trainees on roll of the Basic Craft Courses was 401, representing 91% of the total capacity of 440. By end of December 2007, the total number of trainees still on roll was 279. The dropout rate is 30%. At the start of the programme, the number of trainees on roll of the Construction Supervisor / Technician Programme was 141, representing 100% of the capacity of 140. Up to the end of 2007, the number of trainees on roll was 117 and the dropout rate is 17%. From 1 September to 31 December 2007, the total intake of trainees on full-time adult short courses was 253, against the capacity of 300 planned for the same period.
In the 2007/2008 training year, the Authority provides a monthly basic allowance of $1,400 to trainee of the one-year Basic Craft courses and first-year trainees of the two-year Basic Craft courses. The monthly allowance will be slightly increased for trainees in their second year of the Basic Craft studies. For the Construction Supervisor/ Technician Programme, each trainee will receive a monthly allowance of $2,165. With the exception of the short course on Computer Aided Drafting, all trainees of the full-time adult short courses will receive a daily allowance of $60.
At the end of the 2006/2007 training year, 174 trainees of the two-year Basic Craft Courses, 157 trainees of the one-year Basic Craft Courses, 78 trainees of the two-year Construction Supervisor Diploma Programme, 22 trainees of the one-year Construction Certificate Technician Programme and 656 trainees of the Full-time Adult Short Courses completed their training. In the year under report, the placement results of the graduates of full-time courses of the Authority was considered satisfactory. Of the 1,087 graduates of various full-time training courses, 1,049 or 97% of them were placed within the first three months after graduation. Details of the placement results of the graduates for the 2006/2007 training year are given in Appendix 6.
Open Day and Career Talks

To complement trainees recruitment efforts, centres offering Basic Craft Courses will hold Open Days annually in the first quarter
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to inform members of the general public, community organizations and secondary schools of the various training programmes provided by the Authority. In addition, CITA staff regularly visit secondary schools to give talks on training courses available to youngsters as well as job opportunities in the construction industry.
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Committee Reports
Committee on Construction Training Courses
During the year under review, the Committee met three times to assess the capacity of training courses and to examine the proposal for new courses in line with the needs of the construction industry. In early 2007, the Committee, having reviewed the trainee enrolment and placement rates for 2006/07, decided to continue to follow the recommendations contained in the Report of the Strategic Development Plan, as endorsed by the Authority in August 2005, for setting the training capacity of full-time and part-time courses in the 2007/2008 training year. In addition, the Committee also agreed to make reference to the recent Consumer Price Index in revising upwards the trainee allowances of all full-time courses, in an attempt to attract new trainees and to encourage existing trainees to learn diligently. Regarding the introduction of new training courses, the Committee discussed and agreed to offer an Introductory Course on Conservation Built Heritage. The course, aimed at enhancing the knowledge of in-service practitioners in heritage conservation, would be in line with the training needs arising from the growing interest of the community in heritage preservation and repair. As for the provision of new safety training courses, the Committee in mid-2007 approved the introduction of a revalidation course to cater for the needs of construction personnel who had completed the one-day Gas Welding Safety Training Course and had to retake the course upon expiry of the five-year validity period of their certificates. In response to the tower crane incident in July 2007, the Committee approved the introduction of a two-day Tower Crane Worker (Installation, Dismantling, and Lifting & Lowering) Silver Card Course to further enhance the safety of tower crane operation. In addition, the Committee also approved the introduction of a Construction Materials Rigger Silver Card Course in October 2007 to enhance the safety awareness of in-service riggers. In order to continue to meet the training needs of the industry in the safe operation of tower cranes, the Committee accepted the proposal to introduce in stages, in the coming years, a number of relevant training courses including a training course for competent persons in supervising erection, dismantling and alteration of tower cranes, a basic skills course in installing tower cranes for junior workmen, and a training course for derrick crane operators.
Committee on Building and Facilities Management

In the year under review, a number of decisions were made through circulation of papers on repair/maintenance works to be carried out in training centres. Towards the end of the year, the Committee met once to review the progress of these works and of IT development projects. In the first half of the year, the Committee accepted the tender lists in relation to works projects approved in late 2006 and early 2007, including the demolition of two practice structures and the renovation of two workshops at the Kowloon Bay Training Centre;
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together with the replacement of soil pipes and the roof waterproofing system at the Kwai Chung Training Centre. Related contracts had been vetted and then awarded by the Committee, and all the above projects were completed in the year. In respect of the proposal made in 2006, to phase in the maintenance and repair of all lift installations in all CITA centres under one term contract, the tender was awarded in the first quarter of the year 2007, upon receiving approval from the Committee. Since then, the maintenance and repair of lift installations in the Kowloon Bay Training Centre, the Sheung Shui Training Centre and the Management and Trade Testing Centre have been taken over in stages by the selected contractor; whereas the take over of the lift in the Kwai Chung Training Centre was scheduled for September 2008. The Committee also approved a five-year maintenance plan to re-paint the external walls of all centres. A proposal to employ a consultant to re-design the main entrances and lobbies of the centres was approved to enhance public interface facilities, particularly in regard to the Workers Registration Offices. In view of the amalgamation of CITA with the Construction Industry Council on 1 January 2008, the Committee endorsed the proposal to change the signage on the external walls of CITA buildings. The Committee also reviewed the progress of a number of IT projects including the Trade Test and Training Course Information System, Trade Test Management System and Training Course Management System, and agreed to reorder the priorities of the projects. In addition the Committee approved the IT Security Study Project and its related expense, which had been endorsed by the IT Working Group under the purview of the Committee, in order to enhance security of information.
Committee on Administration and Human Resources

During the year under review, the Committee met four times to continue to discuss and examine various administrative and human resources policies. The Committee reviewed entry requirements for the posts of Lecturer (Architect) and Accountant after consideration of the market trend and the needs of the organisation. The purpose was to attract the right people. It also reviewed the staff establishment of the three craft training centres, the Management and Safety Training Centre and the Trade Testing Centre, having regard to the training and trade testing needs of the industry. The Committee proposed to adjust the salaries of staff members, with reference to adjustment of civil service pay. The proposal to revise upwards the salaries of staff members in rank by 4.62% or 4.96% from the 1st April 2007 was accepted by the Board of CITA. The Committee searched for a suitable candidate to fill the position of Executive Director through open recruitment. The successor was on board in August 2007. Having considered the manpower shortage and recruitment difficulties faced by the Information Technology Section, the
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Committee agreed that the Authority collaborate with the local university for sponsorship of final year students to enhance its system development. In order to ensure that the job title could reflect the duty of the post, the Committee reviewed job titles at officer grade and agreed to revise the titles of Personnel Officer, Administration Officer and Executive Assistant to Personnel Officer I, Personnel Officer II and Executive Officer respectively, on condition that all terms and conditions remained unchanged. The Committee also commended eight staff members in recognition of their outstanding performance in the year. With a view to smooth transition, the Committee reviewed the organisations General Insurance and Group Medical Insurance Scheme and agreed to extend the relevant policies up to 30 June 2008. In the Group Medical Insurance Scheme, the maximum reimbursement of out-patient benefits (non-network doctors) was increased slightly.
Committee on Finance and Investment

The total income for the year 2007 was $293.31 million, representing an increase of 13.56% when compared with $258.29 million in 2006. The total expenditure for the year 2007 was $201.01 million. The operating results for the year showed a net surplus of $92.30 million. Construction levy, which accounted for about 81.64% of the total income of the year, was the main source of income of the Authority. It increased by 15.58% from $207.19 million in 2006 to $239.46 million in 2007. The increase is mainly due to more income received from building and civil engineering works undertaken in private sector. The investment and interest income increased by 26.11% to $14.39 million due to the interest earned from placing more time deposits into banks. Course fees and related income is another major type of income for the Authority, increased by 10.40% from $20.38 million in 2006 to $22.50 million in 2007. The 2007 trade testing income decreased by 28.59% from $7.59 million in 2006 to $5.42 million in 2007 due to less workers taking trade tests in the year. Recurrent expenditure in 2007 increased to $201.01 million representing an increase of 5.31% compared with $190.88 million in 2006. The major items included: Staff costs amounted to $133.59 million in 2007 representing a slight increase of 2.26% as compared with $130.64 million in 2006. The increase was mainly due to the salary increment effective from April 2007 Training expenses increased from $26.59 million in 2006 to $28.85 million in 2007, representing an increase of 8.50%. The increase was mainly due to increase in the subsidies paid under Employer Subsidy Scheme and the staff costs paid to part-time lecturers Workshop expenses slightly decreased by 0.95% from $11.52 million in 2006 to $11.41 million in 2007
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General and administrative expenses increased by 24.96% from $11.34 million in 2006 to $14.17 million in 2007 which was mainly due to the legal and consultancy fee incurred during the year At the end of 2007, the Authority held a total of $386.43 million as reserves, an increase of 31.07% over 2006. The Authority continued to place most of the funds in time deposits and bonds with licensed banks in Hong Kong, and invest a limited sum in listed shares. In accordance with the Industrial Training (Construction Industry) Ordinance, the Authority submitted its annual report for the year ended 31 December 2006 to the Government of the Hong Kong Special Administrative Region in June 2007, together with the audited financial statements for the same period and the auditors report. These were subsequently tabled and accepted by the Legislative Council.
Committee on Levy
Total levy income of the Authority for the year 2007 was $239.46 million. This amount represents an increase of 15.58% compared with $207.19 million in 2006. Levies assessed on the value of the construction works in the private sector, the public sector and the Port & Airport Development were $156.95 million, $76.69 million and $5.74 million respectively, representing 65.55%, 32.02% and 2.40% of the total levy income. In addition, penalty received on overdue levy was $0.08 million (0.03% of the total levy income). The resolution of the Legislative Council to increase the levy rate from 0.25% to 0.4% applies to construction works the tenders for which were submitted on or after 10 January 2000. Among the total levy income of $239.45 million in 2007, $1.91 million was assessed at a rate of 0.25% and $237.54 million was assessed at the rate of 0.4%. The Government had appointed 1 June 2004 as the date on which a levy was to be imposed on the E&M works in the construction industry to support the expanded construction related E&M training and trade tests. Construction operations the tenders for which were submitted after 1 June 2004 would be affected by this amendment. On 24 February 2005, CITA was appointed as the Registrar under the Construction Workers Registration Ordinance (Cap 583) for providing registration services for construction workers, and performing the levy assessment and collection service for CWRA, except for the handling of objection cases. The levy imposed is at the rate of 0.03%.
Committee on Trade Testing

During the year under review, the Committee met once to continue studying the content of the trade tests for individual trades, and to monitor the development of various types of trade tests in line
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with that of the industry. In addition, the Sub-committee on E&M Trade Testing under this Committee also met twice in the year to review the test contents of E&M trades and to make recommendations for consideration by the Committee. Whilst maintaining the quality and standard of the trade tests, the Committee examined and subsequently accepted the proposal to introduce an optional practical test paper for the bar-bending trade, which carries a different weighting for the two parts of fixing and cut and bend skill-sets of workers to better reflect the actual work situation. In addition, the Committee reviewed the selection criteria of trade test invigilators. As instructors deployed to training centres would be transferred to the trade testing centre, to serve as invigilators when necessary, the Committee considered that the selection criteria of trade test invigilators and instructors should be unified. It was agreed that, whether or not invigilators and instructors of a trade had to go through the technical and/or theoretical assessments in the recruitment process would depend on the nature of the different trades. In addition, the Committee also had an in-depth discussion over possible inclusion of the installation of Brackets in the test paper of the trade of Bamboo Scaffolder, to enhance safety awareness of in-service practitioners. The Committee also accepted the recommendation made by the Sub-committee on E&M Trade Testing to revise the written part of the trade test for Mechanical Fitter according to the four principles set. During the year, the Authority continued to conduct various tests for construction practitioners. As at 31 December 2007, a total of 4,663 trade tests, 2,837 intermediate trade tests, 835 E&M trade tests and 3,203 E&M intermediate trade tests were conducted. In the meantime, the Authority also conducted a total of 728, 79, 952 and 313 certification tests respectively for operators of gondolas, builders lifts, cranes and loadshifting machines.
Committee on Employers Subsidy Scheme

During the year under review, the Committee continued to consider and approve applications for subsidy by employers of apprentices, and to monitor the implementation and progress of the subsidy scheme. In early 2007, the Committee set the qualifications required of trainers of construction supervisor/technician apprentices, to be in possession of a Higher Certificate/Higher Diploma of related disciplines or above, or equivalent professional qualification. This would enable prospective employers to better understand the Authoritys requirement regarding persons assigned to supervise apprentices. In addition, the Committee adjusted the guidelines on salary levels for the scheme, in accordance with the level of basic salary earned by graduates of the Basic Craft Courses and the Fulltime Adult Short Courses on the first job in the previous year, so that the guidelines would be in line with the salary level of the construction industry. Towards the end of the year, the Committee also reviewed
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and revised the starting points of the monthly basic salary guidelines for the reference of employers in remunerating graduates of the Construction Supervisor/Technician Programme engaged under contracts of different duration, having referred to the 2007 Payment Adjustment Guidelines for Technician Apprentices issued by the Hong Kong Construction Association. In the year under review, the Committee approved 153 applications in total. These included 32 apprenticeship contracts of 11/2 years to three years in duration for Basic Craft graduates and 121 apprenticeship contracts of 21/2 years to four years in duration for construction supervisor/technician graduates. Employers of these apprentices would receive a monthly subsidy of $1,800 or $2,000 for each apprentice employed in the first year of the apprenticeship contracts. As at 31 December 2007, a total of 146 CITA graduates were still receiving apprenticeship training under the scheme.
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Levy Income
The Legislative Council passed a resolution on 8 December 1999 to uplift the rate of construction industry levy imposed under the Industrial Training (Construction Industry) Ordinance (Cap. 317) from 0.25% to 0.4%. Construction works the tenders for which were submitted on or after 10 January 2000 would be levied based on the new rate. However, construction projects the value of which does not exceed HK$1 million are exempted. Following the amendments to the Industrial Training (Construction Industry) Ordinance (ITCIO) which came into operation on 1 June 2004, all exempt items previously not leviable would be subject to levy assessment and levy in respect of term contracts would be assessed based on the aggregate value of all construction operations carried out as required by works orders issued under a term contract.
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Independent Auditors Report

TO THE MEMBERS OF CONSTRUCTION INDUSTRY COUNCIL (THE "COUNCIL") (Established under the Construction Industry Council Ordinance, Hong Kong Special Administrative Region)
We have audited the financial statements of Construction Industry Training Authority (the "Authority") set out on pages 31 to 49, which comprise the balance sheet as at 31 December 2007, and the income and expenditure account, statement of changes in fund and reserves and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.
The Councils responsibility for the financial statements

The Council is responsible for the preparation and the true and fair presentation of these financial statements in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the Construction Industry Council Ordinance. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and the true and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on our audit and to report our opinion solely to you, as a body, in accordance with section 82(2)(a) of the Construction Industry Council Ordinance, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and true and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness
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of accounting policies used and the reasonableness of accounting estimates made by the Authority, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the state of the Authority's affairs as at 31 December 2007 and of its surplus and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in accordance with the Construction Industry Council Ordinance. Deloitte Touche Tohmatsu Certified Public Accountants Hong Kong 2 May 2008
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The financial statements on pages 31 to 49 were approved and authorised for issue by the Construction Industry Council on 2 May 2008 and were signed on its behalf by: Mr. Billy W.H. Wong, JP CHAIRMAN, CONSTRUCTION INDUSTRY TRAINING BOARD Ir Edgar C.P. Kwan, JP MEMBER, COMMITTEE ON ADMINISTRATION AND FINANCE
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007
1. GENERAL
The Construction Industry Training Authority (the "Authority") was established in Hong Kong Special Administrative Region under the Industrial Training (Construction Industry) Ordinance. The Authority was a notfor-profit organisation and its principal functions were to provide training courses for the construction industry; establish and maintain industrial training centers; assist, including to assist by way of financial provision, in the placement of persons completing training courses; make recommendations with respect to rate of levy and assess the standards of skills achieved by anyone in any kind of work involving or in connection with the construction industry; conduct examinations or tests, issue or award certificate of competence and establish the standards to be achieved in respect of such work. The Construction Industry Council Ordinance (the Ordinance ) was enacted by the Legislative Council on 23 May 2006 and came into operation on 1 January 2008. Under the Ordinance, the Construction Industry Council (the "Council") is established as a statutory body. Amongst other functions, it provides guidance to the Authority and set directions for its work. Moreover, the construction levies would also be used to support the daily operations of the Council as well as other activities that will benefit the construction industry at large. On 1 January 2008, the Authority was dissolved and subsumed under the Council as a committee named as the Construction Industry Training Board. The address of the registered office and principal place of operation of the Authority was 95 Yue Kwong Road, Aberdeen, Hong Kong. The financial statements are presented in Hong Kong dollars, which is also the functional currency of the Authority.
2.
APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS

In the current year, the Authority had applied, for the first time, a number of new standards, amendments and interpretations (new HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants (the HKICPA), which are effective for the financial year beginning from 1 January 2007. The adoption of the new HKFRSs has results in the following areas: The impact of application of HKFRS 7 Financial instruments: Disclosures has been to expand the
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disclosures provided in the financial statements regarding the Authority's financial instruments, especially on the sensitivity analysis to market risk. The impact of application of HKAS 1 (Amendment) "Capital Disclosures" has been to disclose information regarding its objectives, policies and processes for managing capital. The application of the remaining new HKFRSs has had no material effect on how the results and financial position of the Authority for the current or prior accounting periods were prepared and presented. Accordingly, no prior period adjustment has been required. The Authority did not early adopt the following new or revised standards or interpretations that have been issued but are not yet effective. The Authority had assessed the potential impact and so far concluded that the application of these standards or interpretations would have no material impact on the results and financial position of the Authority.
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3.
SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair values and in accordance with Hong Kong Financial Reporting Standards, issued by the HKICPA. The principal accounting policies adopted are as follows: Recognition of income Income is measured at the fair value of the consideration received or receivable. Levy income is accounted for on an accrual basis and is recognised upon the assessment of the value of construction works by the Authority. Course fee and related income and trade testing income are recognised over the period of instruction or testing. Registration service fee income is recognised when the services are rendered. Dividend income from investments is recognised when the Authority's right to receive payment has been established. Interest income from a financial asset is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate exactly discounts the estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. Property, plant and equipment Property, plant and equipment are stated at cost less subsequent accumulated depreciation and accumulated impairment losses. Depreciation is provided to write off the cost of items of property, plant and equipment over their estimated useful lives and after taking into account of their estimated residual value, using the straight-line method. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the income and expenditure account in the year in which the item is derecognised. Impairment At each balance sheet date, the Authority reviewed the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the income and expenditure account.
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Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the income and expenditure account. Financial Instruments Financial assets and financial liabilities are recognised on the balance sheet when the Authority became a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Financial assets The Authority's financial assets are classified into one of the following categories, including loans and receivables, held-tomaturity investments and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognised and derecognised on a trade date / settlement date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial assets, or , where appropriate, a shorter period. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. At each balance sheet date subsequent to initial recognition, loans and receivables (including levy receivables, other receivables, amount due from Construction Industry Council and cash and deposits at banks) are carried at amortised cost using the effective interest method, less any identified impairment losses (see accounting policy on impairment loss on financial assets below). Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Authority's management has the positive intention and ability
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to hold to maturity. At each balance sheet date subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less any identified impairment losses (see accounting policy on impairment loss on financial assets below). Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated or not classified as financial assets at fair value through profit or loss, loans and receivables or held-tomaturity investments. At each balance sheet date subsequent to initial recognition, available-for-sale financial assets are measured at fair value. Changes in fair value are recognised in the investment revaluation reserve, until the financial asset is disposed of or is determined to be impaired, at which time, the cumulative gain or loss previously recognised in the investment revaluation reserve is removed from the reserve and recognised in the income and expenditure account (see accounting policy on impairment loss on financial assets below). Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the financial assets have been impacted. For an available-for sale equity investment, a significant or prolonged decline in the fair value of that investment below its cost is considered to be objective evidence of impairment. For all other financial assets, objective evidence of impairment could include: significant financial difficulty of the issuer or counterparty; or default or delinquency in interest or principal payments; or it becoming probable that the borrower will enter bankruptcy or financial re-organisation. For certain categories of financial asset, such as levy receivables, other receivables and amount due from Construction Industry Council, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Authority's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period, observable changes in national or local economic conditions that correlate with default on receivables.
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For financial assets carried at amortised cost, an impairment loss is recognised in the income and expenditure account when there is objective evidence that the asset is impaired, and is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of levy receivables, other receivables, and amount due from Construction Industry Council, where the carrying amount is reduced through the use of an allowance account. Changes in the carrying amount of the allowance account are recognised in the income and expenditure account. When a levy receivable, other receivables and amount due from Construction Workers Registration Authority and amount due from Construction Industry Council is considered uncollectible, it is written off against the allowance account. S u b s e q u e n t recoveries of amounts previously written off are credited to the income and expenditure account. For financial assets measured at amortised cost, if, in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment losses was recognised, the previously recognised impairment loss is reversed through income and expenditure account to the extent that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. Impairment losses on available-for-sale equity investments will not be reversed in the income and expenditure account in subsequent periods. Any increase in fair value subsequent to impairment loss is recognised directly in the investment revaluation reserve. For available-for-sale debt investments, impairment losses are subsequently reversed if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss. Financial liabilities Financial liabilities issued by the Authority are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. The Authority's financial liabilities are generally classified into other financial liabilities.
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Effective interest method The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Financial liabilities Financial liabilities (including accounts payable and amount due to Construction Workers Registration Authority) are subsequently measured at amortised cost using the effective interest method. Derecognition Financial assets are derecognised when the rights to receive cash flows from the assets expire or, the financial assets are transferred and the Authority had transferred substantially all the risks and rewards of ownership of the financial assets. On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised directly in the reserve is recognised in the income and expenditure account. Financial liabilities are derecognised when the obligation specified in the relevant contract is discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the income and expenditure account. Non-monetary government grants Government grant takes the form of a transfer of a nonmonetary asset, such as land or other resources, for the use of the Authority together with the subject asset are recorded at nominal amount. Retirement benefit costs Payments to the retirement benefit scheme are charged as expenses when employees have rendered service entitling them to the contributions.
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4. FINANCIAL INSTRUMENTS
a. Categories of financial instruments
b. Financial risk management objectives The Authority had overall responsibility for the establishment and oversight of the Authority's risk management framework. The Authority's risk management policies are established to identify and analyse the risks faced by the Authority, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Authority's activities. The Authority, through its training and management standards and procedures, aimed to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. There has been no change to the Authority's exposure to market risks or the manner in which it managed and measured. c. Credit risk management The Authority reviewed the recoverable amount of the outstanding balances at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the Authority considered that the Authority's credit risk is significantly reduced. The credit risk on the Authority's cash and bank deposits is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. d. Liquidity risk management Ultimate responsibility for liquidity risk management rests with the Authority, which has built an appropriate liquidity risk management framework for the management of the Authority's short, medium and long-term funding and
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liquidity management requirements. The Authority managed liquidity risk by continuously monitoring forecast and actual cash flows. Liquidity and interest risk tables The following tables detail the Authority's remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Authority could be required to pay. The table includes both interest and principal cash flows.
e. Foreign exchange risk The Authority's functional and presentation currency has been in Hong Kong dollars since the operations are mainly in Hong Kong dollars. Accordingly, the Authority considered the foreign exchange risk is not significant. Cash flow interest rate risk The Authority was exposed to cash flow interest rate risk through the impact of rate changes on interests bearing financial assets. Interests bearing financial assets are mainly cash and deposits at banks which are all short term in nature. Therefore, any future variations in interest rates will not have a significant impact on the results of the Authority. f. Fair value The fair value of financial assets and liabilities are determined as follows: - the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market bid prices; and - the fair value of other financial assets and liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using price from observable current market transactions. The Authority considered that the carrying amounts of financial assets and liabilities recorded at amortised cost in the financial statements approximate their corresponding fair values.
43
5.
LEVY INCOME
In accordance with the provisions of Section 21 of the Industrial Training (Construction Industry) Ordinance, a levy was imposed at the rate of 0.4%, which was applied to construction works, the tender for which was submitted on or after the 10 January 2000 on the value of all construction works exceeding HK$1,000,000 undertaken in Hong Kong. Construction projects the tender for which was submitted before the 10 January 2000 was subject to the old levy rate of 0.25%.
6.
INVESTMENT AND INTEREST INCOME
7.
OTHER INCOME
44
8. PROPERTY, PLANT AND EQUIPMENT
The above items of property, plant and equipment are depreciated over their estimated useful lives, using the straightline method, at the following rates per annum: Building and premises 4% - 10% Motor vehicles 20% Computer equipment 20% - 331/3% Renovation and building facilities 20% Furniture and fixtures 10% Facilities, tools, machinery and workshop equipment 20% Other equipment 10%
45
9.
HELD-TO-MATURITY INVESTMENTS
10. AVAILABLE-FOR-SALE INVESTMENTS
11. LEVY AND OTHER RECEIVABLES
The average credit period on levy receivables granted to the contractors is 28 days. No penalty is imposed on the contractor for the first 28 days from the date of the invoice. Thereafter, penalty is imposed at 5% of the unpaid amount. If the amount of the levy or surcharge, including any penalty imposed remains unpaid within three months after the expiry of the specified period of 28 days, a further penalty of 5% of the unpaid amount will be imposed on the outstanding balance. The Authority had provided fully for all receivables overdue for more than two years because based on historical experience, debtors with age of more than two years were generally not recoverable. Included in the Authority's levy receivables balance are debtors with a carrying amount of HK$876,068 (2006: HK$1,343,805) which are past due at the reporting date for which the Authority had not provided for any doubtful debts as there has not been a significant change in credit quality and the amounts are still considered recoverable. The Authority did not hold any collateral over these balances. The average age of these receivables is 158 days (2006: 152 days).
46
Aging of past due but not impaired
Movement in the allowance for doubtful debts
In determining the recoverability of levy receivables, the Authority considered any change in the credit quality of the levy receivables from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the contractor base being large and unrelated. Accordingly, the Authority believed that there is no further credit provision required in excess of the allowance for doubtful debts. Included in the allowance for doubtful debts are individually impaired levy receivables with an aggregate balance of HK$2,205,409 (2006: HK$1,668,117) which have either been placed under liquidation or in severe financial difficulties. The Authority did not hold any collateral over these balances.
Other receivables
47
12. AMOUNT DUE FROM / TO THE CONSTRUCTION WORKERS REGISTRATION AUTHORITY AND CONSTRUCTION INDUSTRY COUNCIL
The amounts are unsecured, interest-free and repayable on demand.
13. AUDITORS' REMUNERATION
Audit fee and disbursements
14. RETIREMENT BENEFIT SCHEMES

Contributions to the retirement benefit scheme made by the Authority of HK$11,168,685 (2006: HK$10,614,048) are included in staff costs.
15. TAXATION
No provision for taxation has been made in the financial statements as the Authority is exempted from Hong Kong Profits Tax.
16. CASH AND DEPOSITS AT BANKS

Cash and deposits at banks comprise cash and demanded deposits held by the Authority with an original maturity of six months or less. Cash and deposits at bank carry interest at market rates which range from 0.75% to 5.4% (2006: 2.75% to 4.59%) per annum.
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17. CAPITAL COMMITMENTS
18. RELATED PARTY TRANSACTIONS

Apart from the outstanding balances with related parties as disclosed in the balance sheet and note 12, during the year, the Authority entered into the following transactions with a related party.
19. SUBSEQUENT EVENT

Subsequent to the balance sheet date on 1 January 2008, Construction Industry Training Authority (CITA) amalgamated with Construction Industry Council (the Council) and became subsumed under the Council. The Council takes up all the functions and responbilities of CITA. All the assets and liabilities of CITA are carried forward to the Council.
49
Appendices
NUMBER
TITLE
PAGE
1 2
Organisation Chart of the Authority Committee Membership and Terms of Reference
51-52 53-57
Membership of Boards of Studies and Course Advisory Committees
58-64
Progress Report on Trade Testing of Construction Tradesmen
65-66
Progress Report on Intermediate Trade Testing of Construction Tradesmen
67
Placement of Graduates of One-year and Two-year Full-time Courses and Full-time Adult Short Courses for the 2006/2007 Training Year
68
50
Organization Chart of the Authority

Construction Industry Training Authority
Appendix 1
Committee on Construction Training Courses Committee on Levy Committee on Trade Testing Committee on Finance & Investment Committee on Employers Subsidy Scheme
Committee on Building & Facilities Management
Committee on Administration & Human Resources
1 Executive Director 1 Personal Secretary (I)
1 Senior Manager (Safety Training & Trade Testing) 1 Consultant 1 Personal Secretary (II) 1 Secretary
1 Senior Manager (Construction Training)
1 Personal Secretary (II)
1 Accounting Manager 1 Personal Secretary(II)
1 Trainees Recruitment & Placement Manager 1 Executive Officer 1 Executive Officer 1 Executive Officer 1 Executive Officer
1 Centre Manager (Management & Safety Training) 1 Centre Manager (Kowloon Bay Training Centre)
1 Centre Manager (Trade Testing Centre)
1 Registration Manager 1 Centre Manager (Sheung Shui Training Centre) 1 Centre Manager (Kwai Chung Training Centre)
1 Information Technology Manager
1 Human Resources Manager
1 Executive Officer
51
1 Training Superintendent 1 Trainees Recreation Superintendent 1 Computer Officer 2 Registration Officers 1 Training Superintendent 1 Senior Trainees Instructing Staff 5 Senior Instructors Recreation Trainer 5 Trainees Recreation 20 Instructors Trainers 9 Instructors Assistants Instructing Staff 5 Senior Instructors 1 Senior Instructor (floading post) 30 Instructors 12 Instructors Assistants 12 Clerical and Other Supporting Staff Instructing Staff 5 Senior Instructors 20 Instructors 9 Instructors Assistants 11 Clerical and Other Supporting Staff
11 Lecturers 2 Course 1 Training Superintendent Coordinators 2 Assistant Secretaries 1 Computer Officer
1 Accountant 1 Surveying Officer
1 Training Officer
2 Trade Testing Superintendents
1 Personnel Officer I
1 Safety Officer
1 Personnel Officer II 3 Accounting Officers
1 Leader of CPU
9 Trainees Recruitment & Placement Officers
2 Safety Supervisors 12 Senior Instructors 20 Instructors 25 Instructors 4 Instructors Assistants Assistants
3 Executive Trainees 10 Clerical and Other Supporting Staff 4 Assistant Computer Officers 1 Programmer 3 Computer Assistants 15 Accounting, Clerical and Other Supporting Staff 4 Clerical and Other Supporting Staff
11 Clerical and Other Supporting Staff
4 Purchasing 13 Clerical and Clerks Other Supporting Staff
14 Clerical and Other 1 Assistant 10 Clerical and Other Supporting Staff Supporting Staff Computer Officer 20 Clerical and Other Supporting Staff
Trainees Recruitment & Placement Department
Management & Ssfety Training Centre Workers Registration Office
Trade Testing Centre
Kowloon Bay Training Centre
Sheung Shui Training Centre
Kwai Chung Training Centre
Secretariat
Accounts Department
(including 4 training grounds in Wai Lok Street, Sheung Yuet Road, Shatin & Tuen Mun )
Human Resources Department
Note : Staff Establishment of CITA : 388 Staff Strength of CITA as at 31 December 2007 : 373
52
Appendix 2
Committee Membership and Terms of Reference
(1) Committee on Construction Training Courses
Chairman Ir Stephen W.K. Lee Members Mr. Au Wing-hoi Mr. Edmond S.C. Chan Ir Allan S.K. Chan Mr. Choi Chun-wa, MH Mr. Donald W.H. Choi Mr. Choy Hon-ping (up to May 2007) Mr. Tats T.Y. Chung (from June 2007) Ir Ho Pun-hing Ir Max K.W. Ko Ms. Anny P.S. Law Ir Tang Wai-keung Ir Vincent W.S. Tong Dr. Evia O.W. Wong Ir Ringo S.M. Yu Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To recommend to the Authority on the provision of training courses To recommend to the Authority on budget estimates relating to the provision of the construction training courses To approve the acquisition of training facilities within the budget provision To recommend to the Authority on the ad hoc acquisition of training facilities not already included in the budget provision
(2) Committee on Building and Facilities Management

Chairman Mr. Nelson W.H. Cheng Members Mr. Chu Tak-sum Mr. M.C. Ip Ir Helen P.J. Kwan Ir Victor W.T. Law Mr. Keith S.C. Yim Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To recommend to the Authority on the undertaking of physical construction works and major facilities relating to the development of the training centres or training grounds
53
To recommend to the Authority on budget estimates regarding new construction works, renovation works, maintenance of major facilities To recommend to the Authority on the appointment of Authorized Persons, Main Contractors, Consultants, Subcontractors and Suppliers with respect to physical construction works undertaken by the Authority To monitor the progress of physical construction works already approved by the Authority To make recommendations to the Authority on facilities management and related issues
(3) Committee on Administration and Human Resources

Chairman Ir Tam King-leung Members Mr. Victor H.H. Chan Ir Allan S.K. Chan Mr. Choi Chun-wa, MH Mr. Fung Kin-chor Ir Terence T.L. Fung Ir Helen P.J. Kwan Ir Derrick Y.B. Pang Mr. Wan Koon-sun, MH Ir Yau Kwok-fai Ir Yu Sai-yen Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To recommend to the Authority on budget estimates relating to staff costs To recommend to the Authority on the alterations of staff establishment and structure To recommend to the Authority on staff matters, including recruitment, salary administration and other conditions of service To advise the Authority on any other personnel matters To advise the Authority on administrative policy
(4) Committee on Finance and Investment

Chairman Ir Edgar C.P. Kwan, JP Members Mr. Nelson W.H. Cheng Mr. Paul K.L. Chong Mr. Russell G. Jones
54
Mr. David S.P. Tong Mr. William K.F. Tsui Ir T.C.Ying Ir Yu Sai-yen Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To prepare for approval by the Authority annual estimates of income and expenditure To recommend to the Authority appropriate investment tools to generate income To decide on the actual investment of Authority funds within the guidelines approved by the Authority To advise on any other financial matters referred to it by the Authority
(5) Committee on Levy

Chairman Mr. Paul K.L. Chong Members Mr. Anthony Y.T. Chan Mr. Nelson W.H. Cheng Mr. Donald W.H. Choi Dr. Chiang Yat-hung Ir Stephen W.K. Lee Mr. David S.P. Tong Mr. Terence T.C. Wong Ir Yu Sai-yen Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To recommend to the Authority policies & guidelines in connection with the enforcement of the Ordinance relating to levy To recommend to the Authority on objections concerning levy To direct the Authoritys Accounts Department to deal with cases of objection which are not likely to involve litigation To exercise the powers delegated by the Authority to deal with objections in minor cases which may involve litigation. In this connection a minor case means a case involving an amount of levy in dispute of not more than $50,000 To seek the Authoritys endorsement prior to the initiation of any litigation To carry out periodical review of the operations of the Authoritys Accounts Department relating to levy collection & assessment
55
To carry out periodical review of the Ordinance concerning levy and to make recommendations to the Authority on amendments if necessary
(6) Committee on Trade Testing

Chairman Ir Helen P.J. Kwan Members Mr. Au Wing-hoi Mr. Chan Chi-hin Ir William L.S. Chan Ir Dr. Chan Wan-ching (from June 2007) Mr. Cho Kai Ir Michael B.K. Chu Ir Fu Siu-pun (up to May 2007) Ir Peter C.K. Kwan Ir Lai Tim Mr. Lau Yu-kwan Mr. Alfred W.H. Leung Mr. Tang Kai-min Ir Tang Wai-keung Ir Vincent W.S. Tong Mr. Wan Koon-sun, MH Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To recommend to the Authority on areas of developments relating to trade testing and certification To recommend to the Authority on the monitoring procedures and content of trade testing To monitor the implementation of trade tests To advise the Authority on financial matters relating to trade testing
(7) Committee on Employers Subsidy Scheme

Chairman Ir Dr. Chan Wan-ching (from June 2007) Ir Fu Siu-pun (up to May 2007) Members Mr. Chan Wing-lai Mr. Anthony Y.T. Chan Mr. Fung Kin-chor Mr. Man Wai-ming Mr. Tso Sing-hin Mr. Robert S.H. Tsoi Mr. Charles D.Y. Wong (ex-officio)
56
Terms of Reference : To advise the Authority on the implementation of the scheme providing subsidies to employers of CITA graduates To monitor the implementation of the employers subsidy scheme To recommend to the Authority on budget estimates relating to the implementation of the employers subsidy scheme
(8) Audit Committee

Chairman Ir T.C. Ying Members Mr. Russell G. Jones Ir Ambrose S.Y. Cheung Terms of Reference : To consider all matters relevant to and commented by the external auditor To discuss problems and reservations arising from the financial audits and any matters the external auditor may wish to discuss To review the external auditors management letter and managements response To review and suggest amendments to the internal guidelines (including audit programme, audit procedures and requirements set by the AC) of the Audit Section To review the findings and recommendations submitted by the Audit Section after being reviewed by the Executive Director To review and suggest improvement to the operational and management controls To receive and review compliance reports prepared by the Audit Section and reviewed by the Executive Director for the consideration of the Committee on Finance and Investment as necessary To interview members of staff if necessary for the purpose of familiarizing the AC with the operations of the Authority To conduct special examinations as directed by the Committee on Finance and Investment
57
Appendix 3
Membership of Boards of Studies and Course Advisory Committees
(1) Board of Studies on Construction Safety Courses
Chairman Ir Yu Sai-yen Members Mr. Au Wing-hoi Ir Philip W.K. Chung Mr. Ivan K.W. Lam Ir Samuel K.P. Lip Mr. Stephen K.Y. Siu Mr. Salony K.S. Yim Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To recommend to the Authority on the provision of safety training courses for in-service construction personnel To review and advise on the curriculum and teaching methods for all safety training courses To review and advise on the curriculum, teaching methods and entry requirements of the Construction Safety Officer Course and Safety Auditor Training Scheme To consider assessment results and make recommendations on the award of certificates for the Construction Safety Officer Course and Safety Auditor Training Scheme
(2) Board of Studies on the Construction Supervisor Certificate Course

Chairman Mr. Donald W.H. Choi Members Mr. Au Wing-hoi Mr. Leung Siu-man (from October 2007) Mr. Chan Cho-chak (up to October 2007) Mr. Jesse Hau Ir Ho Chi-ming Ms. Anny P.S. Law Mr. Charles D.Y. Wong (ex-officio) Terms of Reference : To review and advise on the curriculum, teaching methods and entry requirements for the Construction Supervisor Certificate Course
58
To review and advise on standards and procedures for assessment of students on the Construction Supervisor Certificate Course To consider assessment results and make recommendations on the award of certificates for the Construction Supervisor Certificate Course
(3) Course Advisory Committee on Bricklaying, Plastering & Tiling

Chairman Mr. Eric C.Y. Tse Members Mr. Simon Chan Mr. Cheung Chi-ho Mr. Choi Yun-tin Mr. Chow Luen-kiu Mr. Chung Wai-kee Ms. Hayley K.B. Lau Mr. Lui Ka-fai Mr. Siu Wing-sing Mr. So Yu-hang Mr. Wan Wing-cheung Mr. Yam Yuk-lam Mr. Yiu Chi-fun
(4) Course Advisory Committee on Carpentry & Joinery

Chairman Mr. Fung Kin-chung Members Mr. Chan Chi-leung Mr. Cheung Yuk-sun (up to August 2007) Mr. Tony Y.K. Ku Mr. Lam Kwong-fai Mr. Leung Hon-for Mr. Leung Yi-tong Mr. Lo Ping-kuen Mr. Luk Wing-wah Mr. Ma Cheung-kin Mr. Flord Y.H. So Mr. Tang Chung-wo Mr. Jacky M.C. Wan
59
(5) Course Advisory Committee on Painting, Decorating & Sign-writing

Chairman Mr. Chan Kim-kwong Members Ms. Elian Chan Mr. Chan Ka-kau Mr. Chan Ping Mr. Choi Wing-hei Mr. Chui Kwong-wah Mr. Kwong Tat-ming Mr. Leung Chi-shing Mr. Li Man-choi Mr. Mok Chiu-cheuk Mr. Ng Hung-fat Mr. Tang Kar-shing
(6) Course Advisory Committee on Plumbing & Pipe-fitting

Chairman Mr. Kenneth S.Y. Chan Members Mr. Chong Chun-kuen Mr. Choy Wai-fung Mr. Henry C.K. Hung Mr. Lam Kwok-ling Mr. Lau Man-shing Mr. Lau Wan-kwong Mr. Leung Pui-kai Mr. Raymond C.Y. Mark Mr. Mok Wai-wo Mr. Ng Hak-ming Mr. Tony K.K. Ng Mr. Wan Charm-fun Mr. Wong Chung-choi Mr. Wong Kwok-keung Mr. Kenny M.B. Wong
(7) Course Advisory Committee on Construction Scaffolding Works

Chairman Ir Frederick Y.P. So Members Mr. Chan Kin-man Mr. Chiu Kwok-leung Mr. Choi Chi-ming
60
Mr. Fu Chi-cheung Mr. Lee Chak-lam (up to August 2007) Mr. Geoffrey K.W. Lee Mr. Lee Ping-ho Mr. Leung Kam-loi Mr. Mak Wing-hong Mr. Simon H.S. Pang Mr. Pang Long Mr. Wan Yung-man
(8) Course Advisory Committee on Marble-laying

Chairman Mr. Lawrence Ng Members Mr. C.M. Fan Mr. Fung Chi-on Ms. Rebecca S.C. Ho Ms. Ho Wai-ling Ms. Lee Yin Mr. Poon Yiu-wah Mr. Tsieh Chi-kong Mr. Wong Hon-wing Ms. Yip Sau-wai
(9) Course Advisory Committee on Construction Plant Maintenance & Repairs

Chairman Mr. Li Koon-wah Members Mr. Chan Chun-sing Mr. Chiu Tat-si Mr. Kwong Shu-keung Mr. Law Kwok-yin Mr. Lee Chin-pang Mr. Liu Chun-fai Mr. Antonio M.K. Ng Mr. Oh Sio-liem (up to August 2007) Mr. Pei Wing-fu Mr. Yeung Man-fung
(10) Course Advisory Committee on Electrical Installation

Chairman Mr. Li Koon-wah
61
Members Mr. Chan Chi-hin Mr. Chan Ka-hing Mr. Addis K.T. Chan Mr. Caleb Cheng Mr. Cheung Shun-shing Mr. Roger K. Hill Mr. Sunway S.W. Ip Mr. Kiwin W.O. Lam Mr. Lee Lap-sun Mr. Poon Kam-ling Mr. Siu Chung-bong Mr. Siu Ho-kuen
(11) Course Advisory Committee on Metal Works

Chairman Mr. Tam Kwok-kuen Members Mr. Chow Ka-chun Mr. Chu Kwok-wai Mr. Lam Chung-mau Mr. Li Man-lung Mr. Andy K.K. Liu Mr. Poon Chi-wah Mr. Tang Chi-keung Ir Yau Yiu-chin
(12) Course Advisory Committee on Bar -bending & Fixing

Chairman Mr. Tsang Ting-fat Members Mr. Chan Lok-chai Mr. Hon Sing-bun Mr. Keung Tak-chuen Mr. Lee Wai-tat Mr. Luk Kwan-ngai Mr. Ng Wing-hei Mr. Jason T.S. Shin Mr. Siu King-nam Mr. Tse Fuk-wah Mr. Wong Siu-ming Mr. Yu Wai-ming
62
(13) Course Advisory Committee on Site Surveying and Surveying & Setting Out
Chairman Mr. Wong Thien-nyen Members Mr. Lawrence K.C. Chan Mr. Chau Siu-tong Mr. Daniel W.K. Fung Mr. Lau King-to Mr. Raymond M.C. Li Mr. Li Yat-cheung Mr. Ng Hung-fat Mr. Shum Wai-kwan Mr. Wong Hang-shing Mr. Simpson K.K. Wong
(14) Course Advisory Committee on Plant Operation

Chairman Mr. Lee Siu-wing Members Mr. Allen K.T. Cheng Mr. Cheung Liu-yuen Mr. Chui Keung-wai Mr. Nelson C.K. Kan Mr. Lam Wai-dan Mr. Lam Wai-tat Mr. Lin Wai-ming Mr. Liu Chun-fai Mr. Wong Fuk-chuen Mr. Zhao Rong
(15) Course Advisory Committee on Quantity Measurement Technician Programme

Chairman Mr. Wong Chung-fat Members Mr. Au Wing-keung Mr. Ambrose H.H. Chan Mr. Honby S.H. Chan Mr. Dick W.L. Kung Mr. Kwok Chi-hang Ms. Vivian Y.W. Lee Ms. Tarry W.C. Tang Mr. Tse Sek-chuen Mr. Wun Chi-ming
63
Mr. Yeung Hon-lung Mr. Henry C.H. Yim Mr. Yue Man-wai
(16) Course Advisory Committee on Construction Supervisor Programme

Chairman Mr. Pele S.K. Lai Members Mr. David T.W. Chang Mr. Chris C.W. Chau (up to May 2007) Ir Arthur K.M. Cheng Mr. Raymond S.L. Chu Mr. Tats T.Y. Chung (from May 2007) Mr. Joseph T.C. Fei Mr. Ho Kai-fat Mr. Lee Chi-ho Mr. Ken K.F. Li Mr. Paul Y.C. Lui Mr. Raymond K.S. Pang Mr. William K.L. Pau Mr. Jason T.S. Shin Mr. Wong Chi-ming
64
Appendix 4
Progress Report on Trade Testing of Construction Tradesmen (from 01/01/2007 to 31/12/2007)
65
Appendix 4 (continued)
Progress Report on Trade Testing of Construction Tradesmen (from 01/01/2007 to 31/12/2007)
66
Appendix 5
Progress Report on Intermediate Trade Testing of Construction Tradesmen (from 01/01/2007 to 31/12/2007)
*1 Other means refer to the award of intermediate trade test certificates to those tradesmen who failed to get a pass in the practical part of the trade test but whose skills were up to the standard of the intermediate trade test *2 Based on the 2005 Manpower Survey of the Building and Civil Engineering Industry, Vocational Training Council *3 Including those tradesmen who were awarded the certificates through other means
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Appendix 6
68

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CITA ANNUAL REPORT 2007

Construction Industry Training Authority

CITA ANNUAL REPORT 2007

CHAIRMANS REPORT INTRODUCTION MEMBERSHIP EXECUTIVE DIRECTOR AND ADMINISTRATIVE STAFF

3-7 8-9 10-12 13

ESSENCE OF TRAINING OPERATIONS AND MANAGEMENT

22-27 28 29-30 31 32 33 34 35-49 50-68

CITA ANNUAL REPORT 2007

Ir Edgar C.P. Kwan, JP Chairman

CITA ANNUAL REPORT 2007

Trade Tests and Construction Workers Registration System

CITA ANNUAL REPORT 2007

CITA ANNUAL REPORT 2007

CITA ANNUAL REPORT 2007

Financial Edgar C.P. Situation Kwan

CITA ANNUAL REPORT 2007

CITA ANNUAL REPORT 2007

CITA ANNUAL REPORT 2007

Mr. CHONG Kin-lit, Paul

Mr. CHOI Wun-hing, Donald

Mr. CHENG Wai-hung, Nelson

Ir KWAN Po-jen, Helen

Mr. CHOI Chun-wa, MH

Mr. WAN Koon-sun, MH

Mr. TONG Sek-por, David

Mr. TSO Sing-hin

CITA ANNUAL REPORT 2007

Chairman and Members of the Authority

Ir Edgar C.P. Kwan, JP

Mr. Paul K.L. Chong

Ir Stephen W.K. Lee

Ir Tam King Leung

Mr. Nelson W.H. Cheng

Ir Helen P.J. Kwan

Mr. Donald W.H. Choi

Mr. Choi Chun Wa, MH

Mr. Tso Sing Hin

Mr. Wan Koon Sun, MH

Mr. David S.P. Tong

Ir Dr. Chan Wan Ching

CITA ANNUAL REPORT 2007

Chairman and Members of the Construction Industry Training Authority

CITA ANNUAL REPORT 2007

Executive Director and Administrative Staff

Human Resources Department

Kowloon Bay Training Centre

Kwai Chung Training Centre

Sheung Shui Training Centre

Management and Safety Training Centre

Trade Testing Centre

Trainees Recruitment and Placement Department

Workers Registration Office

* Ms Au left in January 2008

CITA ANNUAL REPORT 2007

Essence of Training Operations and Management

CITA ANNUAL REPORT 2007

Training and Trade Testing Centres

CITA ANNUAL REPORT 2007

CITA ANNUAL REPORT 2007

A. One-year or Two-year Full-time Courses

(1) Basic Craft Courses

CITA ANNUAL REPORT 2007

(2) Construction Supervisor / Technician Programme

B. Full-time Adult Short Courses