“Our government is facing financial difficulty,” Kong said. “The most important task of the commission should be on whether any public money has been wasted and the expenses are value for money.”

Tik Chi-yuen, a fellow legislator, added the commission could give recommendations on measures related to safeguarding national security, but emphasised it should not be a major focus of the watchdog’s duties.

They were speaking after the commission said the postal service’s annual stamp issue programme, where it commissions designers to prepare artwork on stamp themes approved by the secretary for home and youth affairs.

“Audit examination of the service agreements signed between Hongkong Post and the designers revealed that there were no specific clauses concerning safeguarding national security,” the report said.

The auditor said it was Hong Kong’s constitutional duty to safeguard national security and asked the postal service to “incorporate specific clauses concerning safeguarding national security in service agreements”.

The watchdog also highlighted a government circular sent to all its bureaus and departments that said any references to Hong Kong and mainland China should be formulated to ensure accuracy of descriptions.

The commission said Hongkong Post had “incorrectly described” services to other regions of China as “International Services” on its website, mobile app, as well as in annual reports and notices in the General Post Office in Central.

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The commission also sank its teeth into public dental services and asked the government to ensure specific clauses related to national security were added to agreements.

The report said that the Hospital Authority in 2012 signed an agreement with an unnamed organisation to provide elderly subsidised dental care services, but it had not included clauses on safeguarding national security at the time or in subsequent contracts.

The Hong Kong Academy for Gifted Education, set up to support high-flying pupils, was also advised to introduce measures to protect national security in its procurement policies, tender documents and contracts.

The secretary for health and the postmaster general told the watchdog that it agreed with the recommendations.

The executive director of the academy said it had updated its guidelines and procurement procedures in March.

It was not the first time the commission has taken aim at what it said were inadequate efforts to safeguard national security interests in services funded from the public purse.

The watchdog called on the Chinese University of Hong Kong last November to strengthen its guidance and regulations for services operated by outside contractors.

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Hong Kong’s public libraries also removed books last year said to be “manifestly contrary” to the interests of national security after the commission made recommendations.

The watchdog’s report also highlighted the need for Hongkong Post to get back to profitability.

The report said the mail services provider had run up annual operating losses over seven out of 10 financial years. The biggest loss was HK$364 million (US$46.5 million), while the one for the 2022-23 financial year stood at HK$305 million.

The watchdog also asked Hongkong Post to explore ways to boost income from its e-commerce services and maximise cash returns from the rent of advertising spots in post offices.

The postal service was also found to have unsold stocks of commemorative stamps worth almost HK$137 million by January.

Nine of the 14 souvenir items available online by Hongkong Post failed to notch up any sales in the 2022-23 financial year.