Questions and Answers on Several Opinions of the General Office of the State Council on Reforming and Improving the Management of Scientific Research Funds of the Central Government

1. What is the background to the Several Opinions?

A: Since the 18th Party Congress, the Party Central Committee with Comrade Xi Jinping as the core attaches great importance to scientific and technological innovation, and insists on taking innovation as the first driving force to lead development. The Fifth Plenary Session of the 19th CPC Central Committee emphasized the core position of innovation in the overall situation of China's modernization, and put scientific and technological self-reliance as the strategic support for national development in the first place of all planning tasks, with a special chapter for deployment. In accordance with the decision-making and deployment of the CPC Central Committee and the State Council, the central financial administration has always prioritized scientific and technological innovation as a key area to be safeguarded. 2013-2020, the central financial expenditure on science and technology reached 2.3 trillion yuan; in 2021, in the case of continued negative growth in the central government's own expenditures, by adjusting the structure of financial expenditures, focusing on safeguarding the expenditures on science and technology and arranging for a budget of 322.7 billion yuan, which provides strong support for scientific and technological innovation. strong support.

With the rapid growth of financial funding for science and technology, how to manage and utilize scientific research funding, better stimulate the innovation vitality of scientific researchers, and promote the development of science and technology is more and more important, to which the CPC Central Committee and the State Council attach great importance. General Secretary Xi Jinping has explicitly requested that scientists be given greater rights to decide on technological routes and the use of funds, so that scientific research units and researchers can be liberated from the cumbersome and unnecessary shackles of institutional mechanisms. Premier Li Keqiang pointed out that the policy of expanding the autonomy of the use of funds should be implemented, and efforts should be made to eliminate the unreasonable burden on researchers. Since the 18th CPC National Congress, the CPC Central Committee and the State Council have issued a series of policy documents and reform measures to optimize the management of scientific research funds, which have strongly stimulated the innovation vitality of scientific researchers and promoted the development of scientific and technological undertakings. However, there are also some policies and regulations are not in place, and reforms in some areas need to be further deepened with the new situation and new changes.

In order to effectively solve these problems, the General Office of the State Council issued the Several Opinions on Reforming and Improving the Management of Scientific Research Funding of the Central Government. The Opinions adhere to the problem-oriented and goal-oriented, and put forward 25 reform policies and requirements in 7 aspects, including expanding the autonomy of scientific research project funding management, improving the mechanism of scientific research project funding allocation, and increasing the incentives for scientific researchers, etc. They are targeted and precise, which are of great significance in responding to the concerns of the scientific and technological community, improving the management of scientific research funding, enhancing the sense of achievement for scientific researchers, stimulating scientific research, innovation and creativity and producing more It is of great significance to respond to the concerns of the scientific and technological community, improve the management of scientific research funding, enhance the sense of achievement of scientific researchers, stimulate the vigor of scientific research innovation and creation, and produce more high-quality scientific and technological achievements.

2. How are direct costs budgeted in accordance with the streamlined budget lines?

A: The Opinions propose further streamlining and consolidation of budgeting subjects, and the unified streamlining of direct cost budgeting subjects from the current nine or more to a total of three categories, namely, equipment costs, operational costs and labor costs.

Firstly, regarding equipment costs, the costs incurred in the course of project implementation for the acquisition or trial production of specialized instruments and equipment, upgrading of existing instruments and equipment, as well as leasing of instruments and equipment from external organizations are mainly listed. Computational instruments and software tools can be included in the equipment costs.

Secondly, regarding operational expenses, it mainly lists the expenses on procurement, transportation, loading and unloading, and finishing of all kinds of materials, auxiliary materials and other low-value consumables consumed in the course of project implementation, and the expenses incurred on testing and assaying and processing, fuel and power, publication/documentation/information dissemination/intellectual property affairs, meeting/travel/international cooperation and exchange, as well as other related expenditures.

Thirdly, regarding labor costs, it mainly lists the labor costs paid to graduate students, postdoctoral fellows, visiting scholars participating in the project and researchers and scientific research support staff employed by the project in the course of the project implementation; as well as the costs paid to consulting experts employed on a temporary basis, and so on.

At the same time, the Opinions require that, except for equipment costs of more than 500,000 yuan in direct costs, other costs only need to provide a basic measurement description, and do not need to provide a breakdown.

3. What are the new provisions of the Opinions on the right to transfer the budget of scientific research projects?

A: In view of the uncertainty of scientific research activities, the Opinions have realized the full decentralization of the right to transfer the budget of scientific research projects: firstly, the right to transfer the budget of equipment costs is fully decentralized to the project undertaking unit, i.e., the project leader does not need to apply for an increase in the budget of equipment costs to the project management department; secondly, the right to transfer the costs other than the cost of equipment costs is fully decentralized by the project undertaking unit to the project leader, who shall arrange for the transfer of the costs independently in accordance with the needs of the scientific research activities. Secondly, the right to transfer other expenses except for equipment costs is fully delegated from the project undertaking unit to the project leader, who shall make arrangements independently according to the needs of scientific research activities.

4. What are the new arrangements in the Several Opinions for expanding the funding envelope?

A: Since 2019, we, together with relevant departments, have carried out the pilot of the lump-sum system for the use of funds in the National Outstanding Youth Science Fund and the Postdoctoral Science Fund. Judging from the implementation situation, the pilot system of lump-sum system has been very effective, and the scientific research institutions and scientific research project leaders have highly evaluated it. The Opinions further expand the scope of implementation of the lump-sum system from the levels of scientific research projects and scientific research organizations. First, at the project level, based on the summarization of the pilot experience, it is clear that the lump-sum system will be implemented in human resources and basic research projects. Secondly, at the institutional level, the relevant departments and localities are encouraged to carry out pilot projects of the lump-sum funding system in independent legal entities engaged in basic, cutting-edge and public welfare research.

5. How to improve the mechanism for allocating funds for scientific research projects?

A: The disbursement of funds for scientific research projects involves a number of links, such as the financial department, the project management department, the project lead undertaking unit and the project participating units. The Opinions set forth requirements for the management of each link. First, from the financial department to the project management department, research funds can be allocated in advance before the approval of the departmental budget. Secondly, from the project management department to the project undertaking unit, the project management department is explicitly required to reasonably formulate the fund allocation plan, and allocate the funds to the project undertaking unit within 30 days after the signing of the project mission statement. Thirdly, from the lead project undertaking unit to the project participating unit, the lead project undertaking unit shall, according to the opinion of the project leader, allocate the funds to the project participating unit in a timely manner.

6. What new initiatives are proposed in the Several Opinions on the management of fund balances?

A: In order to encourage research units and researchers to use funds economically and avoid spending money unexpectedly, the Opinions further improve the management of surplus funds. First, to relax the retention policy, more than two years will no longer be recovered. Clearly the project to complete the task objectives and through a comprehensive performance evaluation, the balance of funds to stay in the project unit, no longer recovered, by the unit to arrange for direct expenditure on scientific research activities, giving priority to the original project team research needs. Second, to improve the efficiency of fund utilization. Project units are required to strengthen the management of surplus funds, improve the mechanism for revitalization of surplus funds, prevent the scale of surplus funds from becoming too large, and accelerate the progress of fund use.

7. How will the indirect costs of research projects be managed in the future?

A: In order to increase incentives for scientific researchers, the Opinions further improve the management of indirect costs of scientific research projects, and put forward measures with higher gold content and greater incentives. First, the proportion of indirect costs approved. In accordance with the direct costs after deducting a certain percentage of the equipment purchase cost approved, the part of less than 5 million yuan, the proportion of indirect costs from not more than 20% to 30%; 5 million yuan to 10 million yuan, from not more than 15% to 25%; 10 million yuan or more, from not more than 13% to 20%. For purely theoretical basic research projects such as mathematics, the proportion of indirect costs is further increased to no more than 60%. Second, the main body of indirect cost management. Indirect costs are co-ordinated and utilized by the project undertaking unit. Third, indirect cost management requirements. The project undertaking unit can use all the indirect costs for performance expenditure, and tilt to the team and individual with outstanding innovative performance, to incentivize researchers to produce more high-quality innovative results.

8. What is the expanded scope of the pilot project to stabilize support for the withdrawal of incentive funds from research funds?

A: In order to support units to explore and improve the incentive and guidance mechanism of scientific research project funds, in 2018, the Ministry of Science and Technology, the Ministry of Finance and other departments carried out a pilot reform of scientific research management based on performance, integrity and competence, and allowed the pilot units to withdraw incentive funds from the stable support of scientific research funds. On the basis of summarizing the pilot experience, the Several Opinions propose to expand the scope of the pilot project of extracting incentive funds from stable support for scientific research funding in two aspects: one is to further expand the scope of the pilot unit from some scientific research institutes under the Chinese Academy of Sciences to all central-level scientific research institutes. The second is to further expand the scope of stable support for scientific research funding that can be extracted as incentive funding. On the basis of the basic scientific research operational expenses and the special funds for strategic pilot science and technology of CAS, the special funds for innovation projects of the relevant scientific research institutes will be increased.

9. How are labor costs managed?

A: The Several Opinions have further optimized the management of labor service fee, and the project undertaking units shall focus on the following three aspects when issuing labor service fee. First, on the object of issuance, the object of labor fee issuance is the personnel employed by the project, that is, the personnel employed by the project undertaking unit for the project by way of labor dispatch or signing labor contract or employment agreement, including postgraduates, postdoctoral fellows, visiting scholars participating in the project, as well as researchers, scientific research auxiliary personnel, scientific research (financial) assistants employed by the project, etc. The project undertaking unit should also take into consideration the local scientific research and technological support staff. Secondly, in terms of the standard of payment, the standard of labor expense shall be determined with reference to the average salary level of local employees in the scientific research and technical service industry, and in accordance with the work tasks undertaken by the personnel employed for the project in the project research. Thirdly, in terms of the scope of expenditure, the manpower costs required by the project staff can be charged under the subject of labor cost, including the social insurance subsidy and housing provident fund of the project staff. In other words, the “five insurance policies and one pension” of project personnel can be charged to the labor cost.

10. How does the Several Opinions stipulate the policy on the total amount of performance pay for centralized universities, research institutes and enterprises?

 Salary statistics data to determine the annual report), the financial situation, especially financial research projects can be used to spend personnel performance overhead and other actual conditions, to the competent departments to declare the dynamic adjustment of the level of performance pay, the competent departments to take into account the stimulation of scientific and technological innovation vitality, to ensure that the basic researchers to stabilize the wage income, regulating the income gap between the different units (positions, disciplines), and other factors for approval and then reported to the human resources and social security, Finance Department for the record.

11. What are the requirements of the Opinions on increasing incentives for researchers in the transformation of scientific and technological achievements? 

A: In order to fully mobilize the enthusiasm and initiative of scientific researchers in the transformation of scientific and technological achievements, and to promote the accelerated transformation of scientific and technological achievements into real productivity, the “Opinions” put forward by the units to implement the “Promotion of Scientific and Technological Achievements Transformation Act” and other relevant provisions to accelerate the pace of transformation of scientific and technological achievements. 
At the same time, emphasize the transformation of scientific and technological achievements cash incentives counted in the total amount of performance pay in the unit, but not subject to the total amount of approved performance pay, not as the total amount of approved performance pay for the next year as the basis for the total amount of incentives to increase incentives for scientific researchers.

12. How to promote the solution to the problem of cumbersome reimbursement of research expenses? 

A: Several Opinions adhere to the problem-oriented, focusing on the difficulties and blockages in the reimbursement of funds, the right medicine, precise force, and efforts to reduce the reimbursement burden of scientific researchers.

First, fully equipped with scientific research financial assistant, so that professional people do professional things. Several Opinions clearly puts forward that project undertakings should fully implement the system of scientific research financial assistants to ensure that each project is equipped with relatively fixed scientific research financial assistants to provide professional services for scientific researchers in budgeting, reimbursement of funds, etc., so as to no longer allow scientific researchers to spend their energy on scientific research fund reimbursement.

Secondly, to improve the financial reimbursement management method, and effectively solve the problems of researchers in “finding” and “posting” the invoices. The Opinions require project undertakings to continuously improve financial reimbursement management, and when hosting conferences, they can reimburse the inter-city transportation and international travel expenses of invited domestic and foreign experts, scholars and related personnel in the conference fee and other expenses; and they can implement the lump-sum system for the meal subsidy, in-city transportation and accommodation expenses that are difficult to obtain invoices in the domestic travel expenses.

Thirdly, paperless reimbursement will be promoted to allow digital information to run more and scientific researchers to run less. The Opinions propose to strengthen the informatization construction of scientific research expenses reimbursement, explicitly promote the paperless reimbursement of scientific research expenses on a pilot basis, and select some central universities, scientific research institutes and enterprises to be included in the scope of the promotion of the standard for accounting data of electronic entry vouchers, so as to promote the digitization of reimbursement of scientific research expenses and paperless reimbursement, and to practically reduce the reimbursement burden of scientific research personnel.

Fourth, the implementation of early warning reminders to enhance the level of service. The Opinions propose to strengthen the responsibility of the legal person of the project undertaking unit, and require the project undertaking unit to dynamically supervise the use of funds and provide real-time early warning and reminders, so as to integrate services into management, urge scientific researchers to utilize scientific research funds in accordance with the regulations, lay the foundation for smooth reimbursement, and enhance the level of service of the unit's financial reimbursement.

13. What are the initiatives of the Opinions to simplify the financial management of acceptance and closure of scientific research projects?

A: The acceptance of research projects is an international practice, and researchers need to provide the materials required for acceptance. In order to free scientific researchers from the complicated transactional work, the Opinions adhere to the problem-oriented, for the completion and acceptance of scientific research funding, to take measures in three areas, and effectively for the scientific research units and personnel to “reduce the burden”. First, emphasize the merger of financial acceptance and technical acceptance, the implementation of a one-time comprehensive performance evaluation at the end of the project implementation period. The second is to improve the operational guidelines for project acceptance and evaluation, and to refine and clarify the specific requirements for financial, accounting and auditing aspects such as budget transfers, equipment management, and personnel costs, so as to avoid any deviation in the understanding and implementation of the policies by the relevant organizations and personnel in the acceptance and inspection of projects. Thirdly, some central universities, research institutes and enterprises have been selected as pilot units, which will issue statements of final accounts of scientific research project funding as the basis for project completion, and cancel the financial audit of scientific research project completion.

14. How to optimize the procurement management of research instruments and equipment?　　

A: The Opinions optimize the management of procurement of scientific research instruments and equipment in terms of both policy and implementation. First, from the aspect of policy, it implements special management policies for the procurement of scientific research instruments and equipment by central universities, research institutes and enterprises, emphasizing that central universities, research institutes and enterprises can adopt a special procurement mechanism for equipment and consumables urgently needed for scientific research, and may not carry out the bidding and tendering procedures. Secondly, in terms of implementation, central universities, research institutes and enterprises are required to optimize and improve their internal management regulations and simplify the procurement process for scientific research instruments and equipment; and the Ministry of Finance has clarified that the Ministry of Finance applies a time-limit closure system to applications for changes in the mode of government procurement by project undertakings, and that applications for changes and projects that meet the requirements are, in principle, closed within five working days.

15. What requirements does the Opinions put forward for improving the management of scientific researchers' overseas travel on official business?

A: The Opinions emphasize the requirements related to the management of scientific research personnel going abroad on official business. First, the management of international cooperation and exchanges for scientific researchers going abroad should be differentiated from that of administrative personnel, and international cooperation and exchanges for the purpose of accomplishing the tasks and objectives of scientific research projects, which are charged to scientific research funds, should be managed separately according to the business category, and work carried out in accordance with the needs. Secondly, international cooperation and exchanges charged to scientific research funds shall be managed separately according to business categories, and shall not be included in the scope of the statistics of “three public” funds, and shall not be subject to the zero-growth requirement.

16. How to expand the channels of financial research funding?

A: Since the 18th CPC National Congress, in accordance with the decision-making and deployment of the CPC Central Committee and the State Council, the Ministry of Finance, together with relevant departments, has optimized the structure of financial expenditure and improved the financial support mechanism. Several Opinions proposed to further play the leveraging effect and guiding role of financial funds, guide the participation of enterprises, play the role of financial funds, and attract private capital to support scientific and technological innovation and entrepreneurship. Optimize the use of science and technology innovation guidance funds, and promote the transformation and application of more scientific and technological achievements of great value. It will broaden the channels for funding basic research and promote positive interaction between basic research and demand orientation.

17. What measures are proposed in the Several Opinions in terms of piloting the support approach for top leading scientists?

A: China to achieve a high level of scientific and technological self-reliance and self-reliance, in the final analysis, rely on a high level of innovative talent, the need to strive to create a number of top scientific and technological talent with world influence. To this end, the “Opinions” put forward to carry out the top leading scientists to support the pilot mode, around the country's major strategic needs and cutting-edge scientific fields, select the world's top leading scientists, to give sustained and stable scientific research funding support, in the determination of the key directions, key areas, key tasks within the scope of the leading scientists independently determine the research topics, independently select the recruitment of scientific research team, independent arrangements for the use of scientific research funding; 3 to 5 years after the third-party assessment, international peer review, etc., to adopt a third-party assessment, international peer review. After 3 to 5 years, third-party evaluation, international peer review and other methods will be adopted to carry out performance evaluation, so as to form a replicable and generalizable reform experience.

18. What are the requirements of the Several Opinions on encouraging local support for the construction and development of new R&D organizations?

A: In order to encourage local support for the construction and development of new R&D institutions, the Opinions propose, firstly, to encourage local new R&D institutions to adopt a governance structure and market-oriented operation mechanism that is in line with international standards, and to implement a system of responsibility of the director of the institution under the leadership of the board of directors. Secondly, it requires innovative ways of supporting financial research funding, giving stable financial support, exploring the implementation of negative list management, and giving them greater autonomy in the use of funds. Thirdly, the assessment is centered on scientific research inputs, quality of innovation outputs, transformation of results, original value, actual contribution, talent gathering and cultivation. Fourth, except for special provisions, scientific and technological achievements and intellectual property rights generated by financial support shall be acquired by new R&D institutions in accordance with the law, and they shall independently decide on their transformation and popularization and application.

19. How to further strengthen the performance management of research funding?

A: In order to strengthen performance management and improve the performance of scientific research funding, the Opinions put forward requirements for strengthening the performance management of scientific research funding at two levels: first, at the level of the project management department, emphasizing the change from focusing on the process to focusing on the results, respecting the laws of scientific research, and implementing categorized evaluations according to the characteristics of different types of scientific research projects, with the evaluation results serving as an important basis for follow-up support. Secondly, at the level of the project undertaking unit, performance orientation should be reflected in resource allocation, scientific research resources should be tilted to outstanding talents and teams, and the effectiveness of the use of scientific research funds should be effectively improved.

20. What measures have been proposed in the Several Opinions to strengthen the supervision and management of scientific research project funds?

A: In order to improve the safety and effectiveness of scientific research project funds, the Several Opinions have further improved the supervision and inspection mechanism in terms of supervision and inspection methods, responsibilities, and application of inspection results. First, in terms of supervision and inspection methods, it requires strengthening the coherence and coordination of audit supervision, financial and accounting supervision and daily supervision, innovating supervision and inspection methods, implementing random sampling and inspection, and utilizing big data and other information technology means to improve the efficiency of supervision and inspection. Secondly, in terms of supervision and inspection responsibility, it is required to strengthen the responsibility of the legal person of the project undertaking unit, and the project undertaking unit should dynamically supervise the use of funds and provide real-time early warning reminders. Third, in terms of the application of supervision and inspection results, it is required that the breach of trust of project undertakings and researchers in the process of management and use of scientific research funds be incorporated into the credit record management, and that the serious breach of trust should be pursued and punished. Fourthly, it proposes to explore the formulation of a negative list to clarify the prohibited behaviors in the use of scientific research project funds, and to require the relevant departments to conduct inspections, evaluations, acceptances and audits in accordance with the law and the negative list, and to exempt scientific researchers from accountability for their due diligence and no-fault behaviors.

21. In order to ensure that the policy is effective, what are the requirements of the Opinions in terms of implementation?　　

A: In order to pass the policy landing “last kilometer”, “a number of opinions” from three aspects of the specific implementation requirements:

First, timely cleanup and revision of relevant regulations. These provisions involve both departmental regulations and methods, such as the National Key Research and Development Program, the National Natural Science Foundation of the central government science and technology programs (special, funds, etc.) funds related to the management, as well as social sciences research project funds management, but also includes the internal management of the project unit, such as the management of indirect costs, scientific research and financial assistant system, and so on.

Second, to increase policy publicity and training. Publicity should realize the combination of tradition and innovation, and strengthen the publicity and interpretation of policies related to the management of scientific research funds of the central government through portals, new media, opening of columns and other ways. Training should be a combination of thematic and daily, so that researchers, financial personnel, research financial assistants, auditors, etc. are fully aware of and understand the policy measures.

Third, strengthen the policy implementation supervision and guidance. Relevant departments to speed up the transformation of functions, improve the sense of service, and strengthen the tracking and guidance. The General Office of the State Council has strengthened supervision. All regions should also refer to the spirit of the Opinions, combine the actual situation, accelerate the implementation of the reform initiatives for the management of scientific research projects and funds, and form an up-and-down and nationwide working situation, so as to ensure that the reform achieves practical results.

22. After the issuance of the Opinions, how to do a good job of bridging the old and new policies?

A: After the introduction of the new policy, in order to realize the seamless connection and smooth operation of the old and new policies, the following three situations are distinguished:

First, when the “Opinions” was issued, the implementation period of scientific research projects has been completed and the projects have entered the closing and acceptance process, the related fund management and expenditure will be implemented in accordance with the original policy, and no further adjustments will be made.

Second, for scientific research projects that are still in the execution period when the Opinions were issued, the project undertaking unit shall consider the actual situation of the unit and determine whether to implement the new provisions after full consultation with the researchers. Matters that require the consent of the project management department shall be implemented after fulfillment of the relevant procedures.

Thirdly, after the issuance of the Opinions, newly-established scientific research projects will be implemented in accordance with the new provisions.