As the controlling officer of the budget of the Leisure and Cultural Services Department, the Director of Leisure and Cultural Services is responsible and accountable for all expenditure that is vested under his control. He must ensure that the Department provides quality services in an efficient, economic and effective manner.

The activities of the Department are funded through the Government's General Revenue Account. A total budget of $5,027 million was allocated for the 2006/07 financial year under Head 95 — Leisure and Cultural Services Department — to meet the operational and capital expenditures in recreation and sports, horticulture and amenities, heritage and museums, performing arts and public libraries, and to provide subventions to the Hong Kong Life Saving Society, the Hong Kong Archaeological Society, local sports bodies and non-government organisation camps to help them meet their operating expenses.

The LCSD provides horticultural maintenance for the Tunnel Approach Rest Garden near the Cross Harbour Tunnel.

Funding for major systems and equipment that cost more than $2 million per item and computerisation comes from the Government's Capital Works Reserve Fund. Major items for 2006/07 included the Digital Library System ($144 million) and the new Library Automation System ($196 million).

Capital works projects planned by the Department are also funded by the Capital Works Reserve Fund. Both the funding provision and project progress are supervised by the Architectural Services Department.

The Department maintains a budgetary control system to ensure that expenditure is properly monitored within the approved budget. Financial management and budgetary control are exercised by more than 150 budget holders through a three-tier structure. Line managers at different levels are delegated the authority to deploy resources, but they are responsible for exercising budgetary control and are accountable for every item of their spending.

The Director of Leisure and Cultural Services administers more than 700 types of fees and charges. He is responsible for ensuring that the fees and charges are reviewed from time to time, and that revenue from these sources is collected promptly and properly accounted for.

The revised estimate of revenue for 2006/07 is $795 million. Revenue comes mainly from fees and charges, admission to and hiring of leisure and cultural activities and facilities, and rents. Revenue is credited to the General Revenue Account.