Highlights of the Year 2021-22

LUMP SUM GRANT SUBVENTION SYSTEM

The Lump Sum Grant Subvention System (LSGSS) introduced in 2001 by the Social Welfare Department (SWD) is currently the mainstream mode of subvention, under which NGOs may use the subventions so granted to operate welfare services.  The LSGSS seeks to focus on the effectiveness of service delivery and hence allows NGOs greater flexibility and higher efficiency in utilising public funds and providing quality services.  NGOs may, on the premise that the requirements of the Funding and Service Agreements (FSAs) and the relevant statutory requirements (if applicable) are complied with, flexibly deploy resources to achieve the service output and outcome stipulated in the relevant FSAs.  As at 31 March 2022, there were 165 NGOs receiving recurrent subventions under the LSGSS for operating 3 111 service units.

REVIEW ON ENHANCEMENT OF LSGSS

• The Government set up the Task Force for Review on Enhancement of LSGSS (Task Force) to conduct a review on the enhancement of the LSGSS.  Chaired by the Director of Social Welfare, the Task Force is composed of representatives from different sectors of community, including Legislative Council Members, representatives of the Hong Kong Council of Social Service, NGOs’ management, staff and service users, independent community members, and individuals who had participated in LSGSS-related work.  In July 2021, the Task Group released the Review Report on Enhancement of the LSGSS, setting out 30 recommendations under five domains, including: (i) quality of welfare services, (ii) staffing establishment, subvention benchmark and human resource management matters, (iii) financial planning matters, (iv) relevance of utilising lump sum grant subvention, and (v) accountability and corporate governance of NGOs.