Secretary for Commerce, Industry & Technology Joseph Wong has ordered the Applied Science & Technology Research Institute Company Board of Directors to follow up on the Director of Audit's suggestions to improve the institute's administration.

The Director of Audit Report No.48, released yesterday, noted that the institute's staff received a salary higher than their maximum pay bands, while performance-based variable payments awarded and salary adjustment were not consistent with staff performance ratings.

The report also noted the institute's entertainment expenses incurred in 2005-06 exceeded the annual budget by 32%, staff had not obtained prior approval for their overseas duty visits, and the institute's administration cost, at 45% of the total cost, was high.

On the sum of $181,000 paid for engaging fung shui consultants to advise on the relocation of the office and the office environment, the report said it is uncommon to use public funds for such a purpose, adding the institute is a publicly-funded organisation performing applied science and technology research. To read the full report, click here.

Mr Wong told reporters today the Government welcomed and accepted the Director of Audit's observations and recommendations, adding that the institute should follow up on the findings seriously.

Commissioner for Innovation & Technology Anthony Wong, who is also an official member of the institute's Board of Directors, said the institute has been asked to operate according to Government procedures and guidelines.