Belilios Public School Performance Level:

Liberal Studies
Independent Enquiry Study
Assignment 1
Problem Definition & Identification of Concepts/ Knowledge

Student’s Name : ____Gladys Ip__________( 17 ) Class : __5B___ L.S. Group : __L3____

IES Teacher : _______CSK_________________ Date of Submission : ___19-11-2019_______

Please complete the form below in 800 – 1200 words and submit it to your IES teacher on/before
19-11-2019. Late submission will result in mark penalty.

Enquiry Title
Should the Lump Sum Grant Subvention System be reformed?

A. Problem Definition (suggested word range: 300 – 500)

Significance of the issue
Guiding questions:
 What is the contemporary issue for enquiry you have chosen?
 What is the significance of the contemporary issue for enquiry on society/why is it of interest to you?
 How do you justify the significance of the issue/point of interest for enquiry (e.g. the reasons why it is
worthwhile to conduct an enquiry on the issue)?

The Lump Sum Grant Subvention System (LSGSS) was put into practice in 20011, to replace the
expenses reimbursement system as the major non-government organizations (NGOs) funding
system in Hong Kong. Under the LSGSS, NGOs receive a one-time funding from the government
each year for their staff expenses and other operating expenses.2 The purpose of introducing the
LSGSS is to give NGOs greater autonomy and flexibility to deploy resources and to meet changing
needs in the community.3 It has been almost two decades since the introduction of LSGSS. The
aim of this project is to evaluate whether the LSGSS should be reformed by analyzing the impact
that the LSGSS has brought towards to the social welfare sector, service users and the government,
and the necessity of reforming the LSGSS.

1
Lump Sum Grant Independent Review Committee. Review Report on the Lump Sum Grant Subvention System.
https://www.lwb.gov.hk/eng/consult_paper/Review%20Report%20on%20Lump%20Sum%20Grant%20Subvention%20S
ystem.pdf. Retrieved November 24, 2019
2
Social Welfare Department. Lump Sum Grant Manual (October 2016)
https://www.swd.gov.hk/doc/ngo/LSGSC/LSG%20Manual%20(October%202016)%20(Reference%20Copy)%20-%20CHA
PTER%202%20V%201.pdf Retrieved November 24, 2019
3
Social Welfare Department. Lump Sum Grant (LSG) Subvention System.
https://www.swd.gov.hk/en/index/site_ngo/page_subventions/sub_modesofsub/ Retrieved November 24, 2019
 Firstly, this topic is highly controversial under different stake holders’ views. Since the
introduction of LSGSS, it has been surrounded by controversy as some consider that it has
enhanced innovation and motivation of NGOs to provide a greater variety of social services while
others may think that the drawbacks of LSGSS outweigh its benefits as it has raised the problem of
unequal pay for equal work and commercialization of social services. Still, the abolishment of the
LSGSS is not requested. Therefore, the reformation of Lump Sum Grant Subvention System can be
discussed.
Secondly, the LSGSS has a high social significance on social aspects. As the funding to NGOs
can affect their staffs performance and quality of their service provided, whether to reform the
LSGSS may affect the general public especially the grass root level who benefitted from the large
variety of services that NGOs provide, such as child care services, residential care services for the
elderly, services for youth at risk and services for drug abusers.

Scope of the enquiry

Guiding questions:
 How do you define the scope of the issue enquiry?

The scope of my study will be focused on the impacts brought by the Lump Sum Grant
Subvention System to the social welfare sector and the government because they are the major
stakeholders who are directly affected by the LSGSS. Also, the complaint on the LSGSS is mainly
from the social welfare sector. According to the press release, the Hong Kong Council of Social
Service, the Hong Kong Social Workers Association and the Hong Kong Social Workers' General
Union urged the government to start the discussion on the total reformation of the LSGSS.4 This
shows that the majority of the social welfare sector are demanding for a reformation. With limited
time and resources, I will be focusing on the factors leading to their discontentment towards the
LSGSS, the difference between the previous system and the LSGSS.

Objectives and Focus Questions

Guiding questions:
 What are you going to enquire about and what is the focus of your enquiry?
 What is your enquiry question at last? What is/ are your focus question(s)?

4
香港社會服務聯會。《新聞發布：社福界促徹底改革「整筆撥款」津助制度》
。擷取自網頁，
http://www.hkcss.org.hk/c/cont_detail.asp?type_id=37&content_id=4167 下載於 2019 年 11 月 24 日
 Objective 1: Focus question 1:
To analyze the impact that the LSGSS What impacts has the LSGSS brought to the social
has brought towards the social sector welfare sector?
Focus question 2:
What impacts has the LSGSS brought to the
government?

Objective 2: Focus question 1:

To assess the necessity of reforming the What measures has the government adopted to improve
LSGSS the system?
Focus question 2:
Can the measures alleviate the problem brought by the
LSGSS?

B. Relevant Concepts and Knowledge/ Facts/ Data (suggested word range: 500 – 700)
Relevant Concepts and Knowledge
Guiding questions:
 What are the key knowledge and concepts (at least 5) that you think are significant for understanding the issues in
your enquiry?
 How would you apply the concepts and knowledge to your issue enquiry?

Concept / knowledge 1:
The Lump Sum Grant Subvention System (LSGSS)

Relevance and applicability to the enquiry title:

According to the document, the reason that the government proposed the implementation of the
LSGSS is because the previous subvention system had been criticized as inflexible, complex and
bureaucratic.5 As at 1 August 2018, 164 out of the 169 subvented NGOs have joined LSG system

5
Social Welfare Department. Welfare Sector Subvention Reforms.
https://www.swd.gov.hk/doc/ngo/SectorReform_eng.pdf Retrieved November 24, 2019
 and the subvention for these NGOs represents over 99% of the total recurrent subvention for
2017-18.6 An NGO will receive one LSG for all its existing service units and newly allocated
service units and it will not be topped up in the course of the year but only adjusted annually in line
with salary and price movements, NGOs also have flexibility in deploying their LSG, all LSG
underspending will be transferred to the Reserve Fund.7

Concept / knowledge 2:
Non-governmental organizations

Relevance and applicability to the enquiry title:

In Hong Kong, NGOs are provided with subventions of welfare services to the public. Welfare
services provided by NGOs comprise elderly services, family and child welfare services,
rehabilitation services, and youth and corrections services. Under these four areas of welfare
services, there are some 140 types of services. For example, elderly services include day care
centres for the elderly and integrated homecare services).8
Concept / knowledge 3:
Benchmark Approach

Relevance and applicability to the enquiry title:

In order to standardize the funding level for different NGOs, the government introduced the
following benchmark approach: the benchmark for each NGO would be determined on the basis of
mid-point salaries of the pay scales of its recognized establishment as at 1 April 2000, plus the
sector-wide average Provident Fund ("PF") employer's contribution of 6.8%. Besides, a snapshot of
staff strength of each NGO as at 1 April 2000 and its Personal Emolument ("PE") subvention for
2000-2001 under the existing subvention mode would be taken and projected.9 After the funding
application is approved, even if the NGO recruit more employee in the future, no extra subsidy will

6
Social Welfare Department. Lump Sum Grant (LSG) Subvention System.
https://www.swd.gov.hk/en/index/site_ngo/page_subventions/sub_modesofsub/id_lsgmanualc/ Retrieved November
24, 2019
7
Social Welfare Department. LSG Manual (May 2012)
https://www.swd.gov.hk/doc/ngo/LSG%20Manual%20(May%202012)%20-%20Chapter%202.pdf Retrieved November
24, 2019
8
Audit Commission. Administration of Lump Sum Grant by the Social Welfare Department - Executive Summary.
https://www.aud.gov.hk/pdf_e/e69ch01sum.pdf Retrieved November 24, 2019
9
Panel on Welfare Services. Updated background brief prepared by the Legislative Council Secretariat for the meeting
on 12 May 2014. https://www.legco.gov.hk/yr13-14/english/panels/ws/papers/ws0512cb2-1430-5-e.pdf Retrieved
November 24, 2019
 be given.

Concept / knowledge 4:
Notional Staffing Establishment

Relevance and applicability to the enquiry title:

It refers to the number of posts, ranks as well as the functions, remunerations and benefit levels of
the various posts. Under the LSG system, Service Operators have the flexibility to deploy the
subventions and arrange suitable staffing to meet the requirements as set out in the Funding and
Service Agreements. Notional Staffing Establishment (NSE) is only used for calculating the
recurrent subventions# for subvented services and should not be used for benchmarking the
manpower and staffing structure of the subvented services.10

Concept / knowledge 5:
Regulatory Framework

Relevance and applicability to the enquiry title:

Although the purpose of the full implementation of the LSG system is to give greater flexibility and
autonomy to the NGOs, a regulatory framework is still established. The Social Welfare Department
draws up an Funding and Service Agreement for each service that a service unit of an NGO
provides. . It also stipulates the Output Standards (e.g. enrolment rates) and Outcome Standards
(e.g. percentage of service users with improved capability in managing family problems) to be
achieved by the ASU, Essential Service Requirements (ESRs — e.g. staff qualifications and
opening hours of institutions) to be met by the ASUs, the need to observe the 16 Service Quality

10
Social Welfare Department. Notional Staffing Establishment of Subvented Services.
https://www.swd.gov.hk/en/index/site_ngo/page_subventions/sub_modesofsub/id_2907/
 Standards (SQSs), and the need to follow the requirements laid down in the LSG Manual and LSG
Circulars.11

Other Background Information/ Facts/ Data (Optional)

Guiding questions:
 What are the basic and necessary knowledge/ facts/ data that facilitate your understanding of the issue?
 How would you apply the information/ facts/ data to your issue enquiry?

Background information/ facts/ data:

Relevance and applicability to the enquiry title:

Tentative Enquiry Plan and Method(s)

Guiding questions:
 How do you gather the facts/ data for your enquiry?
 What possible perspectives for the enquiry, proposed research target groups do you consider?
 What are the tentative methods for data collection and foreseeable limitations?

Interviews will be used as a qualitative data collection method. I will target on 1-3 social workers
and at least one of them will be in the NGOs. As one of problem raised by the sector is that the staff
salary structures of some subvented non-governmental welfare organisations (subvented NGOs)
have been delinked from those of the civil service, i can find out details about how the
implementation of the LSG system has affected the workload and income of the frontline social
workers. Through interviews, I can get specific, first handed information on the impacts of the LSG
system to the frontline social workers.

11
Audit Commission. Administration of Lump Sum Grant by the Social Welfare Department - Executive Summary.
https://www.aud.gov.hk/pdf_e/e69ch01sum.pdf Retrieved November 24, 2019
 Data of questionnaires conducted by other parties will be used. It was target on people from the
social welfare sector. As they are comparatively more affected by the LSG system than the general
public, their opinions and views on the LSG system are very important. I can collect the general
feedback about the LSG system within limited time. Analytical tools will be used to analyze the
data.
Document and data review will also be used as second handed information to access how the
LSG system has affected the government and the measures that the government adopted to improve
the system.

References
1. Lump Sum Grant Independent Review Committee. Review Report on the Lump Sum Grant Subvention System.
https://www.lwb.gov.hk/eng/consult_paper/Review%20Report%20on%20Lump%20Sum%20Grant%20Subvention
%20System.pdf. Retrieved November 24, 2019
2. Social Welfare Department. Lump Sum Grant Manual (October 2016)
https://www.swd.gov.hk/doc/ngo/LSGSC/LSG%20Manual%20(October%202016)%20(Reference%20Copy)%20-%2
0CHAPTER%202%20V%201.pdf Retrieved November 24, 2019
3. Social Welfare Department. Lump Sum Grant (LSG) Subvention System.
https://www.swd.gov.hk/en/index/site_ngo/page_subventions/sub_modesofsub/ Retrieved November 24, 2019
4. 香港社會服務聯會。
《新聞發布：社福界促徹底改革「整筆撥款」津助制度》
。擷取自網頁
http://www.hkcss.org.hk/c/cont_detail.asp?type_id=37&content_id=4167 下載於 2019 年 11 月 24 日
5. Social Welfare Department. Welfare Sector Subvention Reforms.
https://www.swd.gov.hk/doc/ngo/SectorReform_eng.pdf Retrieved November 24, 2019
6. Social Welfare Department. LSG Manual (May 2012)
https://www.swd.gov.hk/doc/ngo/LSG%20Manual%20(May%202012)%20-%20Chapter%202.pdf Retrieved
November 24, 2019
7. Audit Commission. Administration of Lump Sum Grant by the Social Welfare Department - Executive Summary.
https://www.aud.gov.hk/pdf_e/e69ch01sum.pdf Retrieved November 24, 2019
8. Panel on Welfare Services. Updated background brief prepared by the Legislative Council Secretariat for the
meeting on 12 May 2014. https://www.legco.gov.hk/yr13-14/english/panels/ws/papers/ws0512cb2-1430-5-e.pdf
Retrieved November 24, 2019
9. Social Welfare Department. Notional Staffing Establishment of Subvented Services.
https://www.swd.gov.hk/en/index/site_ngo/page_subventions/sub_modesofsub/id_2907/
Word Count: 1176