With effect from April 2004, the Hong Kong Sports Development Board has ceased its subvention function to NSAs. The responsibility for funding allocation was transferred to LCSD which has become the single funding agent to centrally disburse the subvention to NSAs and other sports associations for organising sports events, training programmes and competitions.

In 2004, the department provided subvention of $136 million on 7 667 sports programmes which attracted over 635 200 participants. Among the most popular programmes were the Youth Football Scheme, New Generation Table Tennis Training Courses, Youth Windsurfing Promotion Scheme and Youth Wushu Training Scheme.

During the year, the NSAs concerned were given subsidies under the scheme to organise activities including the World Hong Kong Luminous Dragon Dance and Lion Dance Championships and the Asian Schools Football Championships.