The General Office of the Communist Party of China Central Committee and the General Office of the State Council have issued the "Several Opinions on Further Improving the Management of Central Financial Research Project Funds and Other Policies"

（ Zhongbanfa [2016] No. 50

      Beijing, July 31 (Xinhua) -- Recently, the General Office of the Communist Party of China Central Committee and the General Office of the State Council issued the "Several Opinions on Further Improving the Management of Central Financial Research Project Funds and Other Policies", and issued a notice requiring all regions and departments to conscientiously implement them based on their actual situation.
      The full text of the "Several Opinions on Further Improving the Management of Central Financial Research Project Funds and Other Policies" is as follows.

      Since the issuance of the "Several Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of the System and Mechanisms and Accelerating the Implementation of the Innovation Driven Development Strategy" and the "Several Opinions of the State Council on Improving and Strengthening the Management of Central Financial Research Projects and Funds", they have effectively stimulated innovation and creativity, promoted the development of science and technology, but there are also some problems such as inadequate implementation of reform measures and inadequate management of research project funds. In order to implement the requirements of the central government on deepening reform and innovation, forming a dynamic scientific and technological management and operation mechanism, and further improve policies such as the management of central financial research project funds, the following opinions are proposed.
      1、 Overall requirements
      Fully implement the spirit of the 18th National Congress of the Communist Party of China, the Third, Fourth, and Fifth Plenary Sessions of the 18th Central Committee, and the National Conference on Science and Technology Innovation, guided by Deng Xiaoping Theory, the important thought of the Three Represents, and the Scientific Outlook on Development, deeply study and implement the spirit of General Secretary Xi Jinping's series of important speeches, firmly establish and implement the development concept of innovation, coordination, green, openness, and sharing in accordance with the decisions and deployments of the Party Central Committee and the State Council, deeply implement the innovation driven development strategy, promote mass entrepreneurship and innovation, further promote the combination of streamlining administration, delegating power, and optimizing services, reform and innovate the use and management of scientific research funds, promote the formation of a dynamic mechanism for scientific and technological management and operation, and deepen reform to better stimulate the enthusiasm of scientific researchers.
      ——Adhere to the principle of putting people first. Starting from and focusing on mobilizing the enthusiasm and creativity of scientific researchers, we will strengthen incentive mechanisms, increase incentives, and stimulate innovation and creativity.
      ——Persist in following the rules. According to the laws of scientific research activities and the requirements of financial budget management, improve management policies, optimize management processes, improve management methods, and adapt to the actual needs of scientific research activities.
      ——Adhere to the combination of "streamlining administration and delegating powers". Further streamline administration and delegate powers, combine regulation with decentralization, optimize services, expand the management authority of universities and research institutes in terms of research project funding, travel and meetings, basic construction, and procurement of research instruments and equipment, and create a favorable environment for researchers to devote themselves to research. At the same time, strengthen in-process and post event supervision, and seriously investigate and punish illegal and disciplinary issues.
      ——Adhere to policy implementation and implementation. Refine and implement policy regulations, strengthen supervision, focus on implementation, break through the "bottlenecks" in policy implementation, and enhance the sense of achievement and gain of scientific researchers in reform.

      2、 Improving the Management of Central Financial Research Project Funds
      （1） Simplify budget preparation and delegate budget adjustment authority. Based on the laws and characteristics of scientific research activities, improve the budgeting method, implement a pre allocation system for project funds before departmental budget approval, and ensure that scientific researchers use project funds in a timely manner. Delegate budget adjustment authority, while keeping the total project budget unchanged, to transfer the budget adjustment authority for material costs, testing and processing fees, fuel and power costs, publishing/literature/information dissemination/intellectual property affairs fees, and other expenses in direct costs to the project undertaking unit. Simplify budget preparation subjects, merge conference expenses, travel expenses, international cooperation and exchange expenses subjects, and have scientific researchers prepare budgets based on the actual needs of scientific research activities and coordinate their use according to regulations. For direct expenses not exceeding 10%, no budget calculation basis is required.
      (2) Increase the proportion of indirect costs and increase performance incentives. Research and development projects that implement open competition in the central government's science and technology plans (special projects, funds, etc.) must establish indirect costs, and the approved proportion can be increased to not exceed a certain proportion of the direct cost minus equipment purchase costs: 20% for the part below 5 million yuan, 15% for the part between 5 million yuan and 10 million yuan, and 13% for the part above 10 million yuan. Intensify incentives for researchers and lift performance expenditure ratio restrictions. When coordinating indirect costs, the project undertaking unit should handle the relationship between reasonable allocation of indirect costs and incentives for scientific researchers, and link performance expenditure arrangements with the actual contributions of scientific researchers in project work.
      （3） Clearly define the scope of labor service expenses without any proportional restrictions. Graduate students, postdoctoral fellows, visiting scholars who participate in project research, as well as researchers and research assistants hired by the project, are all eligible to pay labor fees. The labor cost expenditure standard for project hired personnel is determined based on the average salary level of local scientific research and technical service industry employees, and according to the work tasks they undertake in project research. Their social insurance subsidies are included in the labor cost account. There is no proportional limit on the budget for labor costs, which shall be prepared by the project undertaking unit and scientific research personnel according to the actual situation.
      (4) Improve the handling method for retaining surplus funds. During the project implementation period, the remaining funds of the year can be carried forward to the next year for continued use. After the project completes its task objectives and passes the acceptance inspection, the remaining funds shall be retained by the project undertaking unit for use according to regulations. Within 2 years, the project undertaking unit shall coordinate and arrange for direct expenditures for scientific research activities; If it is not used up after 2 years, it shall be retrieved according to regulations.
      (5) Independently regulate and manage horizontal funds. The horizontal funds obtained by the project undertaking unit through market commissioning shall be included in the unified financial management of the unit, and shall be managed and used by the project undertaking unit in accordance with the requirements of the commissioning party or the contract agreement.

      3、 Improve the management of travel and meetings for central universities and research institutes;     （1） Improve the management of travel expenses for teaching and research personnel in central universities and research institutes. Central universities and research institutes may, based on the actual needs of teaching, research, and management work, study and formulate travel expense management methods in accordance with the principles of simplification, efficiency, and frugality, and reasonably determine the level of transportation and accommodation fees for teaching and research personnel. For those who find it difficult to obtain accommodation expense invoices, central universities and research institutes shall, on the premise of ensuring authenticity, reimburse intercity transportation expenses truthfully and issue meal allowances and urban transportation expenses according to prescribed standards.
      (2) Improve the conference management of central universities and research institutes. The number, duration, number of attendees, as well as the scope and standards of conference expenses for business meetings (such as academic conferences, seminars, review meetings, symposiums, defense meetings, etc.) held by central universities and research institutes for teaching and research needs shall be determined by the central universities and research institutes in accordance with the principles of seeking truth from facts, streamlining efficiency, and practicing thrift. The intercity transportation expenses incurred by conference representatives attending the conference shall be reimbursed by their respective units in accordance with travel expense management regulations; Due to work requirements, domestic and foreign experts, scholars, and relevant personnel are invited to attend the conference. For intercity transportation expenses and international travel expenses that need to be borne, the organizing unit can reimburse them from the conference expenses and other expenses.

      4、 Improve the procurement management of research instruments and equipment for central universities and research institutes;     （1） Improve the government procurement management of central universities and research institutes. Central universities and research institutes can purchase research instruments and equipment on their own and choose experts for evaluating research instruments and equipment. The Ministry of Finance aims to simplify the approval process for budget adjustments and changes in government procurement methods for government procurement projects. Central universities and research institutes should effectively supervise and manage equipment procurement, ensuring full openness, transparency, and traceability throughout the process.
      （2） Optimize the procurement services for imported instruments and equipment. Implement a filing system for the procurement of imported instruments and equipment by central universities and research institutes. Continue to implement the tax exemption policy for imported scientific research and teaching supplies.

      5、 Improve the management of basic construction projects in central universities and research institutes;     （1） Expand the management authority of basic construction projects in central universities and research institutes. Projects constructed by central universities and research institutes using their own funds without applying for government investment shall be independently decided by central universities and research institutes, reported to the competent department for filing, and no longer subject to approval. The National Development and Reform Commission and the competent departments of central universities and research institutes should strengthen guidance, supervision, and inspection of the basic construction projects of central universities and research institutes.
      (2) Simplify the approval process for basic construction projects of central universities and research institutes. The competent departments of central universities and research institutes should guide them in formulating five-year construction plans, and no longer approve project proposals for basic construction projects included in the plan. Simplify the approval procedures for urban and rural planning, land use, environmental impact assessment, and energy assessment of basic construction projects in central universities and research institutes, and shorten the approval cycle.

      Sixth, standardize management and improve services
      （1） Strengthen corporate responsibility and standardize fund management. The project undertaking unit should conscientiously implement relevant national policies and regulations, strengthen self-restraint and self-regulation in accordance with the requirement of consistent rights and responsibilities, and ensure that it can be accepted and managed well. Develop internal management measures to implement management authority for project budget adjustment, coordinated use of indirect costs, allocation and management of labor costs, and utilization of surplus funds; Strengthen budget review and control, standardize financial expenditure behavior, improve internal risk prevention and control mechanisms, enhance performance evaluation of fund utilization, and ensure the safe, standardized, and effective use of funds; Implement an internal disclosure system, proactively disclose project budgets, budget adjustments, fund utilization (with a focus on indirect costs, external funding, and surplus fund utilization), research results, and other related information.
      (2) Strengthen overall coordination and streamline inspection and evaluation. The Ministry of Science and Technology, project management departments, and the Ministry of Finance should strengthen the overall coordination of institutional norms, annual plans, and results utilization for the supervision of scientific research project funds, and establish a collaborative work mechanism with clear responsibilities and division of labor. The Ministry of Science and Technology and project management departments should accelerate the clearance and standardization of various inspections and evaluations conducted by commissioned intermediary agencies on scientific research projects, strengthen the use of relevant inspection results that have already been carried out in the early stage, promote the sharing of inspection results, reduce the number of inspections, improve inspection methods, and avoid repeated inspections, multiple inspections, and excessive inspections.
      (3) Innovate service methods to enable researchers to devote themselves to scientific research. The project undertaking unit shall establish and improve the system of scientific research financial assistants, providing professional services for scientific researchers in project budget preparation and adjustment, fund expenditure, financial settlement and acceptance. The expenses required for scientific research financial assistants can be solved by the project undertaking unit through channels such as scientific research project funds according to the situation. Make full use of information technology to establish and improve an information platform for internal scientific research, finance departments, and project leaders to share information, and improve the efficiency and convenience of scientific research management. Develop internal reimbursement regulations that meet the practical needs of scientific research, effectively solve the problem of not being able to obtain invoices or financial receipts for scientific research activities such as field investigations and psychological tests, as well as reimbursement for expenses incurred when inviting foreign experts to participate in academic exchanges in China.

      7. Strengthen institutional construction and work supervision to ensure effective implementation of policy measures;     （1） Promptly introduce implementation rules with strong operability. The project management department should improve the budget preparation guidelines, guide project units and researchers to scientifically and reasonably prepare project budgets; Develop detailed rules for budget evaluation and review, optimize evaluation procedures and methods, standardize evaluation behavior, establish and improve timely communication and feedback mechanisms with project applicants; Develop detailed rules for financial acceptance work and standardize the financial inspections conducted by entrusted intermediary agencies. Before September 1, 2016, central universities and research institutes should formulate and implement internal management measures for travel and conference expenses, and their supervisory departments should strengthen work guidance and overall planning; By the end of 2016, the project management department should formulate and issue relevant implementation rules, and the project undertaking unit should formulate or revise internal management measures and reimbursement regulations for scientific research project funds. Units that undertake scientific research projects in future years should formulate and issue relevant management measures and regulations in the same year.
      (2) Strengthen supervision and guidance on the implementation of policy measures. The Ministry of Finance and the Ministry of Science and Technology should timely organize inspections on the implementation of management authority for scientific research project funds, internal management methods, innovative service methods, internal control mechanism construction, and internal disclosure of related matters of project undertaking units. The inspection results should be reported in an appropriate manner and included in credit management, linked to indirect cost verification, surplus fund retention, etc. Audit institutions shall carry out audit supervision on the implementation of policy measures and financial funds in accordance with the law. The project management department should supervise and guide its affiliated units to improve internal management and ensure that national policies and regulations are implemented effectively.
      The Ministry of Finance and the central level department in charge of social science research projects should revise the fund management measures for central level social science research projects as soon as possible, taking into account the laws and characteristics of social science research and referring to this opinion.
      Each region should refer to the spirit of this opinion, combine with reality, and accelerate the reform of scientific research project fund management and other related work.