Urban Renewal Authority 2018-19 Annual Report

145 (expressed in Hong Kong Dollars) NOTES TO THE FINANCIAL STATEMENTS 6. Operating surplus before income tax Operating surplus before income tax is arrived at after charging/(crediting) the following items: (a) Direct costs including: 2019 2018 $’000 $’000 Cost of properties under joint development projects 1,596,191 2,015,257 Cost of properties sold 73,496 94,065 (b) Administrative expenses including: 2019 2018 $’000 $’000 Staff costs* (excluding directors’ remuneration) 359,715 343,288 Operating lease charges in respect of rental of office premises 17,127 17,270 * Including salaries and other benefits of $335,447,000 (2017/18: $319,957,000) and contribution to provident fund scheme of $24,268,000 (2017/18: $23,331,000). (c) Other expenses including: 2019 2018 $’000 $’000 Rehabilitation and retrofit expenses 73,064 61,565 Revitalisation and preservation expenses 2,413 5,344 Place making expenses 9,440 – Outgoings in respect of preservation properties, retained properties and rehousing units 58,290 49,695 Depreciation 73,118 56,128 Auditor’s remuneration – Audit services 467 440 – Non-audit services 1,479 365