Guidelines on Using the Grants And

Hong Kong Arts Development Council

Project Grant

Guidelines on using the Grants and

completing the Project Report

Individuals or organizations (hereinafter, the “Grantee”) who receive grants under the Project Grant Scheme, must submit a “Project Report” (hereinafter, the “Report”) to the Hong Kong Arts Development Council (hereinafter, the HKADC) after project completion, summarizing the project’s financial position and its artistic achievement. Please read the following before completing the Report:

A. Due Date for the Report and required information

Grant Amount / Due Date
for the Report / Information to be submitted
Grants of and over $100,000 / Within 6 months of project completion / i.  Project Report: complete the part on “Artistic Evaluation Report” only.
ii.  Auditor’s Report: the Grantee must appoint an auditor from the HKADC’s list of registered public accountants to audit the financial accounts of the project. For the procedures and notes on the appointment of auditors, please refer to the “Guidelines on Auditing Service for Grant Applicant” enclosed with the Approval Letter. The HKADC may request the Grantee to present original receipts for verification if and when necessary.
Grants under $100,000 / Within 3 months of project completion / i.  Project Report: complete both the “Financial Report” and the “Artistic Evaluation Report”.
ii.  All original receipts: the HKADC will return the original receipts to the grantee after checking the Report.
iii.  Copy of all receipts: for HKADC’s record.

To avoid any lost in transfer, the HKADC encourages the Grantee to submit the Report, the original receipts and a copy of all receipts in person. The Grantee is also required to make a photocopy of the Report and the receipts for his or her own record before submission for cross-referencing with HKADC.

B. Financial Report

(A) Expenditure

1.  All expenses must be reasonable items attributable to the project and used solely on the approved project. The Grantee should use the approved budget as the basis for allocating the grants. Please also note the following:

a.  grant conditions stated in the Summary of Results of Application, including any items that are not supported;

b.  items not supported as listed in the relevant artform’s assessment guidelines;

c.  expenses of ticket purchases generally will not be considered as an expenditure item;

d.  administration fees of ticket sales shall be deducted directly from the box office income.

The HKADC reserves the right not to accept any expenditure items which it deems unreasonable or unrelated to the project.

2.  The Grantee is required to report to the HKADC all expenditure relating to the project unless the HKADC stated clearly at the time of approval that only a particular item(s) is/are supported. All expenditure must be supported with the original and a copy of the official receipts. The HKADC only accepts the following as official receipts:

-  C.O.D receipts

-  Cash memos

-  Receipts

If there is any online purchase, it must be supported with the following: (i) the printed copy of online payment receipts; (ii) the original copy of delivery note or receiving note; and (iii) the original or a printed copy of account transfer voucher. All copies of receipts must be signed by the individual Grantee / head of Grantee organization and stamped with the chop of the Grantee organization (if applicable).

3.  All receipts must be sequentially numbered to provide cross-reference against the income/expenditure items in the “Financial Report”. The following details must be shown in the receipts:

-  Date of transaction

-  Details of the expenditure and amount

-  For main expenditure items with an receipt of or over $1,000, please provide the name of vendor and contact (for verification)

4.  Receipts for artists/personnel emoluments must include the following details:

-  Project name

-  Amount received

-  Name of recipient and signature

-  Post assumed by the recipient in the project

-  Contact telephone number of the recipient (for verification)

The receipt format for artists/personnel emoluments is as follows:

Payment Receipt
Project Name
Recipient’s Name / Post assumed in the Project / Amount
1.Chan Tai Man A123456 / Producer / Total $3000
Signature’s Recipient
______
Contact Telephone Number
______ / Signature of Grantee
______
Name
______
Chop of Grantee
______

5.  For miscellaneous expenditure items (such as transport fare, stationery, etc) that do not usually produce receipts, the Grantee may certify the expenditure (the total expenditure must not exceed $500) in the following format:

Certified Receipt
Items/ Usage / Quantity/details / Date of Purchase / Amount
1.Transport fare
2. Stamps / Admiralty to Western District
10 / 3.6.14
4.7.14 / Total $35
Total $13
Signature of purchaser ______
Name
______ / Signature of Grantee ______
Name
______
Chop of Grantee
______

6.  Total fees paid to personnel involved in the project must not exceed the budget approved by the HKADC unless a full and reasonable explanation is provided.

(B) Income

1.  The Grantee is required to report to the HKADC all income items unless the HKADC stated clearly at the time of approval that it only supports a particular part of the project. Proof of ticket/sales income, distribution report, rental subsidy and commercial sponsorship must also be provided.

2.  The Grantee should indicate whether specific expenditure or parts of the project are sponsored by individuals/organizations other than HKADC in the Financial Report.

3.  For performance, official proof from URBTIX or the performance venue must be provided to support the ticket income. Proof of ticket income from internal sales should be certified by the Grantee/head of Grantee organization.

C.  Artistic Evaluation Report

1.  Please answer all questions in the “Artistic Evaluation Report” and submit taped performances. The evaluation will help the HKADC set the future direction of arts development.

2.  The HKADC encourages the Grantee to submit the following information for HKADC ’s record:

-  Photographs or a CD-Rom containing photographs of the activities (please write down the name of the Grantee, activity and photographer at the back of the photograph or the CD-Rom; the Grantee agrees to grant the rights to publish the submitted photographs in the HKADC’s Annual Report, Newsletter, website or other publications and promotional materials. If the Grantee does not wish to grant such rights to the HKADC, please indicate so)

-  Promotional materials of activities which are open to the public

-  Documentation on the proceedings and outcome of seminars and press conferences (including newspaper clippings and other commentaries)

-  Information about the distribution, screening, exhibition and awards won for film/video production

3.  Grantees are encouraged to send all HKADC supported publications (including books, magazines, newsletters, house programmes, posters, pamphlets etc.) to the Arts Resource Centre, and video productions to the Hong Kong Film Archive, for public access. Please submit the materials directly to:

-  Publication: The Arts Resource Centre at the Hong Kong Central Library, 10/F, 66 Causeway Road, Causeway Bay, Hong Kong

-  Video production: Hong Kong Film Archive, 50 Lei King Road, Sai Wan Ho, Hong Kong

D.  Freeze Policy

1.  The Grantee must submit the completed Reports by the stipulated due date, failing which the HKADC reserves the right to recover the amount paid to the Grantee, and the Grantee, its head of organization, and the project-in-charge will be listed on the HKADC Freeze List.

2.  Any person or organization whose name is on the HKADC Freeze List is ineligible to apply for any HKADC grant in the next 6 months after the overdue item is completed/ submitted. If the person on the HKADC Freeze List is the key participant in another application (though not an applicant), the HKADC reserves the right not to process the relevant application.

E.  Random Check on Project

1.  Receipts Verification: To ensure proper use of grants, the HKADC reserves the right to verify receipts. The HKADC will contact the vendors issuing the receipts to verify whether they are genuine.

2.  Double Subsidy: To avoid double subsidy, the HKADC reserves the right to verify with other organizations (e.g. LCSD, QEF, etc.) whether the approved project also receives support/sponsorship from other organizations.

F.  Surplus from project (only applicable to Project Grant and 2015-17 Multi-Project Grant)

1.  To encourage the Grantee to actively explore other funding resources, the HKADC allows the Grantee to retain any surplus over and exceeding the stipulated box income (60%) or income level, and excludes the sales income of publication. Also, cash donation from non-public sources and advertising income related to the project will not be included in the calculation of project surplus. The above mentioned surplus calculation method only applies to non-profit making organizations. All profit-making organizations, in any circumstances, must refund the project surplus to the HKADC. If the project still has unspent grants, or any surplus not mentioned above, the Grantee must refund the unutilised grant or surplus to the HKADC. Such refunds shall not exceed the grant approved.

For example:

Actual Project Expenditure/Income / How HKADC Calculates
Project Income / Project Income
HKADC grant amount / $100,000 / HKADC grant amount / $100,000
Other sponsorship / $50,000
Ticket sales(80% of the box income) / $30,000 / Ticket sales (60% of the box income) / $22,500
Total: / $180,000 / Total / $122,500
Project Expenses / Project Expenses
Approved project expenditure by HKADC / $120,000 / Approved project expenditure by HKADC / $120,000
Total / $120,000 / Total / $120,000
Surplus / $60,000 / Surplus that must be refunded to HKADC (unutilised grant amount) / Surplus / $2,500

2.  Based on the above principle, refund of surplus will be handled as follows:

a.  If the surplus is less than the last instalment of the Grant, it will be deducted from the last instalment;

b.  If the surplus is more than the last instalment of the Grant, the Grantee will be required to refund the difference within one month from the date of the Project Report acquittal letter (failing which the HKADC will immediately cease to accept or process any new application from the Grantee);

c.  If the Grantee wishes to seek HKADC’s permission to retain the surplus, the request must be made within one month from the date of project acquittal letter, and must submit a proposal suggesting an appropriate use of surplus. The proposal must be a follow-up activity arising from the original project.

3.  The HKADC reserves the right to undertake legal action to recover any surplus or outstanding amount.

Hong Kong Arts Development Council

July 2014

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