In order to increase the transparency and accountability of World Vision Hong Kong, we hereby outline our main practices and mechanisms on resource governance.

Fund and Project Management

World Vision manages all projects and donations independently and there are rigorous procedures to ensure the proper use of donations. Before supporting a project, World Vision Hong Kong ensures the availability of ministry funding and appraises the project plans and budgets based on the needs assessments. All funding and budget commitments follow World Vision's standard policies and procedures and are monitored by World Vision Hong Kong as well as the World Vision office in the project country. After a project is completed, an evaluation is performed to assess the effectiveness and efficiency of the project for future improvement.

Cost Control

Our operations are bound by strict cost controls. Internal policies and procedures on expenditure are in place to ensure that every dollar raised is properly used. During this past year, only 4.8% of annual income was spent on administration and fundraising, while 93.9% of our income was used for international relief and community development programmes and reserves, and 1.3% for public education.

Audit Committee

The Board of Directors set up an Audit Committee in 2003. The Committee comprises three members; its membership is reviewed every two years by the Board. The members in 2011 were Mr. Fun-kuen Au (Chairman), Mr. Kai-man Wong and Mr. Joseph Yuen-shun Lu. The Committee considers the appointment and the audit fee of the external auditor, discusses internal and external audit matters, and reviews the annual financial statements and internal control system.

External and Internal Audit

World Vision Hong Kong has appointed Ernst & Young to perform the annual financial audit. Various fundraising activities and relief projects funded by government grants are also audited by external auditors as required by the Hong Kong SAR Government.

Vision Hong Kong has also established an internal audit function for many years to enhance internal control and