### West Kowloon Cultural District Authority Ordinance 《西九文化區管理局條例》

22. Resources of Authority
(1) The resources of the Authority consist of—
(a) all moneys paid by the Government to the Authority, whether by way of appropriation by the Legislative Council, loan or any other means;
(b) all moneys provided by any person other than the Government to the Authority, whether by way of loan or any other means;
(c) income received by the Authority by operating, managing or otherwise dealing with arts and cultural facilities, related facilities or ancillary facilities; and
(d) all other moneys and property, including gifts, sponsorships, donations, interest, profits, dividends and investment income, received by the Authority.
(2) The Authority shall—
(a) manage its finances (including resources) with due care and diligence; and
(b) ensure the financial sustainability of the operation and management of arts and cultural facilities, related facilities and ancillary facilities.

23. Investment
(1) The Authority shall, having regard to the advice of the Investment Committee established under section 9, invest, in a financially prudent manner, the funds available for investment in such classes or descriptions of investment as the Financial Secretary may specify in writing.
(2) For the purposes of subsection (1), the Authority may engage financial consultants or advisors under section 12(4) to manage or otherwise deal with its resources referred to in section 22(1).

24. Borrowing powers, etc.
(1) The Authority may borrow from the Government, or otherwise raise, moneys as may be required for the performance of its functions on such terms and conditions as may be approved by the Financial Secretary.
(2) Subject to subsection (3), the Authority may borrow moneys from any person other than the Government for performing its functions.
(3) The Chief Executive may issue a direction in writing for the purposes of this section to the Authority that it is not to borrow or raise any sum (or its equivalent in a currency other than Hong Kong dollar) which exceeds an amount specified in the direction without the prior written approval of the Financial Secretary.
(4) The Authority shall comply with a direction issued under subsection (3).
(5) The Authority may, with the prior written approval of the Financial Secretary, charge all or any part of its property as security for the repayment of moneys borrowed or raised.
(6) A charge referred to in subsection (5) in so far as it relates to any property of the Authority is not to be enforced, whether by order of any court or otherwise, except with the prior written approval of the Chief Executive in Council and in accordance with the terms and conditions of such approval.

25. Power to enter into other financial transactions
The Authority may, on such terms and conditions as it considers fit, enter into any agreement or arrangement in connection with its financial affairs, including any agreement or arrangement for reducing, compensating for or hedging against any financial risk.

### West Kowloon Cultural District Authority Ordinance 《西九文化區管理局條例》

26. Guarantees by Government
(1) The Legislative Council or its Finance Committee may from time to time by resolution authorize the Financial Secretary to grant on behalf of the Government guarantees in respect of the repayment of loans made to, or the discharge of other indebtedness of, the Authority and the payment of interest, premium or other charge on the loans or indebtedness up to an amount not exceeding in total the amount that is specified in the resolution and subject to any terms and conditions specified in it.
(2) If, pursuant to a guarantee granted under subsection (1), the Government makes a payment to a creditor of the Authority in respect of a debt secured by a charge—
(a) the sum is to be charged and paid out of the general revenue;
(b) the sum is repayable to the Government by the Authority, together with interest on such sum at such rate as the Financial Secretary may determine, and the Government shall as from the time of payment have the benefit of all the remedies vested in the creditor by virtue of such charge, and may exercise the rights and powers arising under the charge in its own name and without any assignment by the creditor; and
(c) any sum received by the Government by way of repayment of a sum so paid out, or for the interest on such sum, is to be paid into the general revenue.

27. Reserve funds
(1) The Authority may—
(a) with the prior written approval of the Financial Secretary, establish and maintain general and special reserve funds;
(b) credit into those funds such sums as it considers fit; and
(c) make such disbursements from those funds as are consistent with this Ordinance.
(2) For the purposes of subsection (1)(b), the Authority shall, in accordance with the direction given by the Financial Secretary at the time when the approval is given, carry the profits (whether wholly or partly) of the Authority in any financial year to the credit of such general or special reserve funds as may be specified in the direction.

### West Kowloon Cultural District Authority Ordinance 《西九文化區管理局條例》

28. Authority to keep proper accounting records and to prepare statement of accounts
(1) The Authority shall keep proper accounts and records of its transactions.
(2) Subject to subsection (5), the Authority shall ensure that a statement of accounts is prepared within 3 months after the end of each financial year, or such longer period as the Financial Secretary may allow, containing—
(a) a profit and loss account for that financial year;
(b) a cash flow statement for that financial year; and
(c) a balance sheet as on the last day of that financial year.
(3) A statement of accounts referred to in subsection (2) is to give a true and fair view of—
(a) the state of affairs of the Authority as at the end of the financial year to which the statement relates;
(b) its profit or loss for that financial year; and
(c) its cash flow for that financial year.
(4) Where the Authority has any subsidiary at any time in a financial year, the statement of accounts prepared under subsection (2) for that financial year is to include the group accounts relating to the Authority and the subsidiaries, and subsection (3) is to apply accordingly.
(5) The Authority shall ensure that the statement of accounts prepared under subsection (2) complies with—
(a) the manner in which the statement is to be prepared;
(b) any accounting standards; and
(c) any other requirement,
as may be notified to the Authority in writing by the Financial Secretary.

29. Authority to appoint auditor
(1) The Authority shall, subject to subsection (2), appoint an auditor to audit the statement of accounts prepared under section 28(2).
(2) The person appointed under subsection (1) is not to be—
(a) a Board member;
(b) a committee member;
(c) an employee of the Authority;
(d) a partnership of which any partner is a Board member or a committee member; or
(e) a body corporate of which any director is a Board member or a committee member.
(3) The auditor appointed under subsection (1) shall—
(a) audit the statement of accounts prepared under section 28(2); and
(b) submit a report on it to the Authority.
(4) For the purposes of subsection (3), the auditor is entitled to—
(a) have access at all reasonable times to all books of account, vouchers and other financial records that are in the custody or under the control of the Authority; and
(b) require such information and explanations relating to those books, vouchers and records as he thinks fit.
(5) In this section—
auditor (核數師) means a certified public accountant (practising), or a corporate practice, as defined by section 2(1) of the Accounting and Financial Reporting Council Ordinance (Cap. 588). (Replaced L.N. 66 of 2022)