Notice from the Ministry of Science and Technology and the Ministry of Finance on Issuing the Provisional Regulations for the Supervision of Central Government-Funded Science and Technology Programs (Special Projects, Funds, etc.)

　　To all ministries and commissions of the State Council, directly affiliated institutions, science and technology departments (commissions or bureaus) and finance departments (bureaus) of provinces, autonomous regions, municipalities directly under the central government, and cities under separate planning; the Science and Technology Bureau and Finance Bureau of the Xinjiang Production and Construction Corps; and all relevant units:

　　To strengthen and standardize the oversight of central government-funded science and technology programs (including special projects and funds), in accordance with the "Several Opinions of the State Council on Improving and Strengthening the Management of Central Government-Funded Scientific Research Projects and Funds" (Guofa [2014] No. 11), the "Notice of the State Council on Issuing the Plan for Deepening the Reform of the Management of Central Government-Funded Science and Technology Programs (Including Special Projects and Funds)" (Guofa [2014] No. 64), and relevant laws and regulations, we have formulated the "Provisional Regulations on the Oversight of Central Government-Funded Science and Technology Programs (Including Special Projects and Funds)." These regulations are hereby issued and shall be strictly complied with.

　　Ministry of Science and Technology

　　Ministry of Finance

　　December 29, 2015

　　Interim Provisions on the Supervision of Central Government Financial Science and Technology Programs (Special Projects, Funds, etc.)

　　Chapter 1 General Provisions

　　Article 1

　　To strengthen and standardize the oversight of central government-funded science and technology programs (including special projects, funds, and other similar initiatives) (hereinafter referred to as “science and technology programs”), these Regulations are formulated in accordance with the “Several Opinions of the State Council on Improving and Strengthening the Management of Central Government-Funded Scientific Research Projects and Funds” (Guofa [2014] No. 11), the “Notice of the State Council on Issuing the Plan for Deepening the Reform of the Management of Central Government-Funded Science and Technology Programs (Including Special Projects, Funds, and Other Similar Initiatives)” (Guofa [2014] No. 64), and relevant laws and regulations.

　　Article 2

　　The supervision referred to in these regulations refers to the inspection, oversight, and accountability conducted in accordance with relevant rules and regulations over the management and implementation of science and technology programs, projects, and funds, so as to promote scientific, standardized, fair, and transparent management and enhance the efficiency of using fiscal funds for science and technology.

　　Article 3

　　The main contents of supervision include:

　　(1) The scientific and standardized management of science and technology programs and resource allocation by the relevant administrative departments, as well as the performance of these programs in implementation;

　　(2) The scientific and standardized nature of the management work conducted by professional project management institutions, as well as their performance in fulfilling their duties and responsibilities throughout the project management process;

　　(3) The implementation of the legal entity responsibility system by the project undertaking unit, the status of project execution, and the management and use of funds;

　　(4) Experts involved in the consultation, review, and oversight of science and technology programs and projects, as well as the performance of their duties by supporting institutions;

　　(5) The research integrity and fulfillment of duties by researchers in the implementation of projects and the management and use of funds.

　　Article 4

　　Supervisory work should adhere to the following principles:

　　(1) Uphold the principle of mutual checks and balances as well as mutual coordination among decision-making, execution, and supervision. Supervisory work should not only integrate relevant content and requirements into management activities but also be conducted independently of such management activities, thereby ensuring objectivity and fairness.

　　(2) Adhere to following established principles. Based on the nature and characteristics of science and technology programs and projects, carry out supervision in a categorized manner, strengthening the rigidity of supervisory requirements while also leveraging the guiding, supportive, and service-oriented functions of supervision.

　　(3) Adhere to a tiered and hierarchical supervision approach. In line with the management levels of science and technology programs, implement a tiered and hierarchical supervision mechanism, strengthen supervision during and after the event, and enhance performance evaluation and assessment. Intensify accountability tracing and place particular emphasis on supervising critical stages.

　　(4) Adhere to a combination of internal management and external oversight. On the basis of improving relevant rules and regulations, strengthen internal management, corporate accountability, and self-discipline among research personnel; enhance public disclosure and external oversight; and minimize any adverse impact on normal scientific and technological management and research activities.

　　(5) Adhere to a performance-oriented approach. Strengthen performance assessment and evaluation, enhance the application of supervision results, refine the accountability mechanism, intensify penalties for violations, emphasize effectiveness and efficiency, build a scientific research credit system, and promote management optimization.

　　Chapter 2: Responsibilities

　　Article 5

　　All stages of the implementation of various science and technology programs and projects should clearly define the responsible entities. In accordance with the principle that those who bear primary responsibility shall also be subject to oversight, and that powers and responsibilities should be commensurate, each responsible entity must consciously accept supervision.

　　Article 6

　　Clearly define the responsibilities of each supervisory entity. The Ministry of Science and Technology, the Ministry of Finance, relevant departments and local authorities, specialized project management agencies, and project implementing units—each of these supervisory entities shall supervise, evaluate, and hold accountable the responsible entities under their management or entrusted to them, ensuring that these entities fulfill their duties and responsibilities.

　　Article 7

　　The Ministry of Science and Technology and the Ministry of Finance are the leading departments responsible for oversight. Their primary oversight responsibilities include:

　　(1) Study and formulate management systems and standards related to supervision;

　　(2) Strengthen the coordinated planning, comprehensive guidance, and foundational capacity building of supervisory work;

　　(3) Organize and carry out supervision on the standardization and scientific nature of key management activities, including the collection and refinement of demands for science and technology programs, preparation of implementation plans, selection and entrustment of specialized institutions for project management, etc.; and conduct performance evaluations and assessments on the achievement of science and technology program objectives, output results, effectiveness, and impact.

　　(4) Organize and carry out oversight on the independence, objectivity, and impartiality of the Strategic Advisory and Comprehensive Review Committee in performing its duties, as well as on compliance with and enforcement of integrity and self-discipline requirements, confidentiality policies, and conflict-of-interest avoidance rules.

　　(5) Organize and carry out supervision over the corporate governance and internal management of project management professional institutions, as well as the standardization and effectiveness of project management.

　　(6) Coordinate with relevant departments to conduct random spot checks on the management and use of projects and funds.

　　(7) Strengthen feedback and application of supervision results, and establish a unified scientific research credit system.

　　Article 8

　　Relevant departments and local authorities should strengthen their supervisory efforts. The main supervisory responsibilities include:

　　(1) In accordance with the responsibilities for managing science and technology programs, strengthen oversight of relevant science and technology programs, projects, and funding.

　　(2) Responsible for organizing the daily management and supervision of the units entrusted with science and technology programs and projects, and cooperating with relevant supervisory bodies to investigate key issues and leads identified within these units.

　　(3) Strengthen the management and supervision of the construction and daily operations of affiliated units as professional project management institutions;

　　(4) Participate in performance evaluations of scientific and technological programs and projects in relevant fields, including assessment of R&D quality, application of technology transfer results, and achievement of performance targets.

　　(5) Cooperate with the Ministry of Science and Technology and the Ministry of Finance in carrying out relevant supervisory work.

　　Article 9

　　The professional organization for project management is primarily responsible for the day-to-day supervision of science and technology programs and projects. Its main supervisory responsibilities include:

　　(1) Conduct oversight of the management and use of relevant projects and funds;

　　(2) Conduct performance evaluations of relevant projects;

　　(3) Conduct oversight of the performance and accountability of experts involved in advisory reviews related to project initiation, process management, and acceptance.

　　Article 10

　　The project undertaking unit is the entity responsible for implementing the project. Its main supervisory responsibilities include:

　　(1) Responsible for the daily supervision and management of project implementation and fund utilization;

　　(2) Conduct publicity and training on compliance with rules and regulations for research personnel, and strengthen their self-discipline awareness and scientific integrity.

　　Article 11

　　The Ministry of Science and Technology and the Ministry of Finance will take the lead in establishing an inter-departmental consultation mechanism to strengthen coordinated management of oversight systems, annual plans, and the application of results. Major issues will be reported to the Inter-Ministerial Joint Conference for the Management of National Science and Technology Programs.

　　Article 12

　　The Ministry of Science and Technology, the Ministry of Finance, relevant departments, local authorities, and specialized project management agencies—each of these supervisory entities—should all be subject to oversight by audit and disciplinary inspection authorities.

　　Chapter 3: Internal Management and Self-Discipline

　　Article 13

　　The responsible entities involved in science and technology planning and project management should actively fulfill their duties, integrating oversight into the daily operations of these programs and projects. Through establishing standardized systems, fulfilling corporate legal responsibilities, strengthening internal controls and self-discipline, they can achieve scientific decision-making and standardized management.

　　Article 14

　　In accordance with the principle of simultaneously deploying supervision and technology plans and project management, all types of technology plans and project management should establish and improve systems for plan, project, and fund management; formulate relevant implementation rules or working standards; integrate supervisory content and requirements into these systems; clearly define the specific procedures, responsible parties, and supervisory bodies for each stage—including plan initiation, selection and management of specialized project management agencies, expert selection and utilization, project organization and implementation, acceptance and performance evaluation, and outcome submission—thereby strengthening the institutionalization and standardization of management.

　　Article 15

　　In the process of science and technology planning and project management, where work assignments and task instructions are involved, specific matters such as work tasks, assessment objectives and indicators, supervision and evaluation methods, and liability for breach of contract shall be stipulated in the relevant contracts (task descriptions, agreements, etc.) in accordance with applicable requirements. This will clearly define the responsibilities, rights, and interests of all parties and provide a basis for supervisory activities.

　　Article 16

　　Professional project management organizations should improve their corporate governance structure, establish and refine various rules and regulations for institutional management and operations, and enhance their professional management capabilities.

　　The project implementing entity shall strengthen its legal entity responsibilities, earnestly fulfill its management duties in areas such as project application, organizational implementation, acceptance, and the use of scientific research funds, enhance the development of supporting service infrastructure, and improve its management capabilities and service standards.

　　Article 17

　　Each responsible entity shall, in accordance with relevant national regulations and taking into account its own specific circumstances, establish and improve an internal risk prevention and supervision system. A mechanism for oversight and checks and balances should be put in place, clearly defining the supervisory responsibilities of internal oversight bodies or dedicated personnel, and ensuring that incompatible positions are kept separate from one another. A regular self-inspection and self-correction mechanism should be established to strengthen internal reviews, urge compliance with laws and regulations in all work activities, and rigorously investigate and punish any violations.

　　Article 18

　　Implement “traceable” management throughout the entire process. All responsible entities should strengthen daily record-keeping and document archiving for science and technology programs and project management, and integrate relevant management information into the National Science and Technology Management Information System in accordance with the requirements for science and technology program management.

　　Article 19

　　A reporting system is implemented for science and technology programs and project management. Each responsible entity shall, in accordance with relevant management regulations, regularly report on the progress of science and technology programs and projects, the use of funds, and organizational and managerial activities. In the event of significant matters or special circumstances, timely reports must be submitted.

　　Article 20

　　The Ministry of Science and Technology and the Ministry of Finance have established a national database of science and technology experts and have put in place sound expert management systems and working standards. Expert selection shall be conducted through random drawing from the national database of science and technology experts, and expert management will implement mechanisms for rotation, adjustment, and conflict-of-interest avoidance.

　　Article 21

　　Researchers and experts should uphold the spirit of science, adhere to scientific integrity, strengthen their sense of responsibility, strictly comply with all regulations governing the management of scientific and technological programs, projects, and funding, and voluntarily accept supervision from relevant authorities.

　　Chapter 4: Public Disclosure

　　Article 22

　　In accordance with the principle of "publicity as the norm and non-publicity as the exception," all responsible entities and supervisory bodies shall establish systems for public disclosure, clearly defining the specific matters, channels, timeframes, and other management requirements for such disclosures.

　　Article 23

　　Relevant management departments of science and technology programs and specialized project management agencies, in accordance with applicable regulations, shall promptly and proactively disclose to the public—on the National Science and Technology Management Information System or government official websites—information including relevant management systems and standards, project approval and funding arrangements, acceptance results, performance evaluation and supervision reports, as well as details on the management and use of experts. Such information shall be open to oversight by all parties, except for matters classified as confidential or otherwise regulated by laws and regulations.

　　Article 24

　　The entity undertaking the project shall publicly disclose within the organization information such as the project’s approval status, key researchers, use of research funds, collaborating institutions, procurement of large-scale instruments and equipment, and the status of the project’s research outcomes, thereby subjecting itself to internal oversight.

　　Article 25

　　Public announcements should emphasize timeliness. In principle, the period from the date of release of the project guidelines to the deadline for project applications should be no less than 50 days; the public notice period for various matters should generally be no less than 5 working days.

　　Article 26

　　All responsible entities should attach great importance to public and media oversight, listen to feedback, and promote and improve relevant work.

　　Chapter 5: External Oversight

　　Article 27

　　Based on internal management within each responsible entity, each supervisory body conducts external supervision according to its duties and actual needs.

　　The selection of supervised entities shall be based on work needs and adopt a combination of random sampling and targeted sampling—focusing on entities with high risk levels and those receiving a large number of complaints—to reasonably determine the proportion of on-site inspections to be conducted on project management agencies and project implementing units.

　　Article 28

　　Each supervisory body shall, according to its respective responsibilities, formulate annual supervision work plans that clearly specify the objects of supervision, the content, timing, methods, implementing entities, and required outcomes.

　　The Ministry of Science and Technology and the Ministry of Finance will strengthen coordination between the annual supervision work plans of various supervisory entities to avoid duplicating oversight efforts.

　　Article 29

　　On-site supervision should generally be conducted within a concentrated timeframe, enhancing coordination in monitoring both project implementation and the management and use of funds. In principle, on-site supervision of a single project’s implementation should not exceed once per year; for projects with an implementation period of three years or less, on-site supervision of implementation should, in principle, be carried out only once.

　　For project implementers and their projects that pose higher risks and have poor credit ratings, the frequency of supervision can be increased.

　　Article 30

　　External supervision typically takes the form of special inspections, special audits, and performance evaluation assessments.

　　The special inspection focuses on examining whether the relevant responsible entities have fulfilled their corporate responsibilities, established and improved internal management mechanisms, complied with national financial and economic regulations as well as regulations governing the management of scientific research funds, and properly managed projects and utilized research funds.

　　The special audit focuses on examining the legality, compliance, and reasonableness of the use of scientific research funds, as well as the effectiveness of internal management. In general, such audits are commissioned to institutions that possess the appropriate capabilities and qualifications.

　　The key focus of performance evaluation is on the organization and implementation of science and technology programs and projects, as well as on the performance of specialized project management agencies in fulfilling their duties. The content of performance evaluation typically includes goal achievement, resource allocation, management and implementation, and outcomes and impacts. Performance evaluations are generally conducted by third-party institutions selected through open competition and other appropriate methods.

　　Article 31

　　Each supervisory body shall establish a mechanism for public participation in oversight, accept complaints and reports, and register, categorize, handle, and provide feedback on them in accordance with relevant regulations. If a complaint or report falls outside the scope of its authority, it shall be referred to the relevant departments or local authorities for handling as prescribed.

　　Article 32

　　Each supervisory body shall verify and examine the authenticity and completeness of significant issues and leads discovered during supervision. As needed, the verification work may be entrusted to the legal entity where the responsible party is located or to its superior competent authority.

　　Article 33

　　Each supervisory body may, according to its work needs, establish a joint supervision task force to carry out concentrated oversight.

　　Article 34

　　All supervisory bodies should strengthen coordination and cooperation with departments such as discipline inspection and supervision, and auditing, to create synergy in oversight efforts.

　　Chapter 6: Application of Results and Credit Management

　　Article 35

　　Each supervisory body shall, based on the issues identified during supervision, issue supervisory results and make recommendations for corrective actions in accordance with relevant regulations. The responsible entities concerned shall complete the corrective actions within the prescribed time limit and submit the results of such actions in writing to the relevant supervisory bodies.

　　If the responsible entity disagrees with the supervision results or is dissatisfied with the handling decision, it may apply for a review and file an appeal in accordance with relevant regulations.

　　Article 36

　　Establish a system for sharing supervision results. Each supervisory body shall, in accordance with unified requirements, compile and submit relevant supervision results to the National Science and Technology Information Management System and disclose them to the public as required.

　　The supervision results shall include records of the supervisory entity, the object of supervision, the content of supervision, the timing, the procedures, the conclusions, and any significant matters.

　　Article 37

　　The Ministry of Science and Technology and the Ministry of Finance, together with relevant departments and local authorities, will, based on oversight findings and the corrective actions taken by responsible entities, put forward recommendations for the dynamic adjustment of specialized agencies responsible for managing science and technology programs and projects, thereby optimizing the management of such programs and projects. The oversight results will also serve as an important basis for central financial support. Specialized agencies responsible for project management will, in light of oversight findings and the corrective measures implemented by project implementers, propose recommendations for the dynamic adjustment of individual projects.

　　Article 38

　　All supervisory bodies shall strictly address violations and make the outcomes of such actions publicly available. For project management agencies found to have engaged in violations, measures will include conducting interviews, issuing public criticism, terminating entrusted contracts, recovering previously disbursed management funds, and revoking their qualification to serve as project management agencies. For project implementing units and researchers found to have committed violations, the project management agencies will be instructed to take measures such as conducting interviews, issuing public criticism, suspending project funding, recovering previously disbursed project funds, terminating project implementation, and barring the project implementers from submitting new project applications for a specified period. Cases involving suspected disciplinary violations will be referred to the discipline inspection and supervision authorities for handling; cases involving suspected criminal or illegal activities will be referred to the judicial authorities for prosecution. For experts found to have engaged in violations, measures will include issuing warnings, ordering corrective action within a specified time limit, issuing public criticism, and revoking their qualifications to provide consulting, review, and oversight services for a certain period.

　　Establish a system for tracing responsibility backward: For any issues that arise, trace back to identify the performance of duties and integrity of all responsible entities and relevant personnel. Once verified, those found to have failed in their duties will be held accountable according to law and regulations.

　　Article 39

　　The Ministry of Science and Technology has established a unified scientific research credit management system. All supervisory bodies will promptly record credit information on project management agencies, project implementing units, supporting supervision institutions, experts, and researchers, and implement credit-based management.

　　Article 40

　　Establish and improve mechanisms for rewarding those who uphold integrity and punishing those who breach trust. Credit ratings shall serve as an important reference in management decisions, including the selection of project management agencies, project approval and funding allocation, expert selection, and the use of supervisory support institutions. For projects that adopt indirect-cost management, the determination of indirect costs shall be linked to the credit rating of the project undertaking entity. If a project successfully achieves its objectives and passes acceptance testing, and the undertaking entity receives a favorable credit rating, any remaining funds from the project may, within a specified period, be centrally managed by the entity in accordance with regulations and used for direct expenditures on scientific research activities.

　　Credit ratings are linked to the frequency of supervision. For institutions and personnel with good credit ratings, supervision can be reduced or even exempted for a specified period; for those with poor credit ratings, they should be given priority in supervision and the frequency of monitoring should be increased.

　　Article 41

　　Strengthen the linkage between the scientific research credit system and credit systems in other social sectors, and implement a joint punishment mechanism.

　　Article 42: The Ministry of Science and Technology, together with relevant departments and local authorities, shall establish a “blacklist” system.

　　Units and individuals found guilty of serious scientific misconduct, severe violations of financial and economic discipline, and illegal activities will be placed on a “blacklist.” Relevant information will serve as an important basis for decision-making in the management of national science and technology programs and projects.

　　Chapter 7: Conditional Guarantees

　　Article 43

　　The Ministry of Science and Technology and the Ministry of Finance should actively foster specialized supervision and support institutions as well as expert teams, strictly enforce work standards and discipline, and strengthen unified management and training and exchange activities.

　　All supervisory bodies should strengthen the capacity-building of their internal supervision institutions and personnel, and pay close attention to leveraging the roles of supporting supervision agencies and expert teams.

　　Article 44

　　The institutions and personnel responsible for conducting supervision shall possess the basic conditions necessary to carry out their work, as well as the specialized knowledge and professional competence appropriate for supervisory tasks. They shall perform their duties independently, objectively, and impartially, and maintain confidentiality in accordance with relevant requirements. In cases involving conflicts of interest, they shall recuse themselves.

　　Article 45

　　The expenses incurred in supervisory activities shall be borne by the supervisory entity and may not be passed on to the supervised party.

　　Article 46

　　The Ministry of Science and Technology and the Ministry of Finance should, relying on the National Science and Technology Management Information System, establish a unified supervision information platform and strengthen the sharing of supervision information.

　　Each supervisory body should rely on the supervision information platform to carry out its work, actively leverage internet and big data technologies to implement intelligent supervision and risk early warning, and enhance the precision and targeted nature of supervisory efforts.

　　Chapter VIII Supplementary Provisions

　　Article 47

　　In the relevant management systems and regulations, each responsible entity shall clearly define the supervision content and requirements in accordance with these provisions. Each supervisory entity shall, based on these provisions and in light of its actual work, formulate detailed implementation rules for its supervisory activities.

　　The supervision of other science and technology management activities may be carried out by reference to these provisions.

　　Article 48

　　These regulations shall be interpreted by the Ministry of Science and Technology and the Ministry of Finance, and shall take effect from the date of their promulgation.