Supplementary Notice on the Regulations for Budget Adjustments of Major Special Projects (Topics) in Civil Science and Technology

Caijiao [2012] No. 277 To the leading group units and coordinating organizations of major science and technology special projects involving civilian sectors, relevant ministries and commissions of the State Council, directly affiliated institutions, finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the central government, and cities under separate planning, the Finance Bureau of the Xinjiang Production and Construction Corps, and relevant entities: In 2009, the Ministry of Finance, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the “Interim Measures for the Management of Special Funds for Major Science and Technology Projects Involving Civilian Sectors” (Caijiao [2009] No. 218, hereinafter referred to as the “Interim Measures”). To further strengthen the management of funds for national major science and technology projects and address existing problems in the implementation of the “Interim Measures,” we now...

　　Caijiao [2012] No. 277

　　To the leading group heads of major science and technology special projects under various civilian sectors, the leading organizing units, relevant ministries and commissions of the State Council, directly affiliated institutions, finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the central government, and cities under separate planning, the Finance Bureau of the Xinjiang Production and Construction Corps, and relevant units:

　　In 2009, the Ministry of Finance, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the "Interim Measures for the Management of Special Funds for Major Science and Technology Projects Involving Civilian Sectors" (Caijiao [2009] No. 218, hereinafter referred to as the "Interim Measures"). To further strengthen the management of funds allocated to major national science and technology projects and address issues encountered in the implementation of the "Interim Measures," we hereby issue the following supplementary notice regarding adjustments to the central financial budget for major science and technology projects (subjects) involving civilian sectors:

　　1. Any adjustments to the total budget or annual budget of a project (or research topic) shall be submitted by the leading organizing unit to the Ministry of Finance for approval in accordance with the prescribed procedures.

　　II. If adjustments are made to the budget for indirect costs of the project (subject) as well as to the direct costs—specifically, equipment costs and basic construction costs—the leading organizing unit shall submit the adjustments for approval by the Ministry of Finance in accordance with the prescribed procedures. However, if the intended use and quantity of equipment remain unchanged, and the equipment cost budget is reduced due to changes in market prices or other factors, such reductions shall be approved by the implementing unit of the project (subject), reported to the leading organizing unit for record, and confirmed by the leading organizing unit during financial acceptance. The reduced funds may be reallocated to cover other expenditures related to the project (subject).

　　3. The total budget for the project (subject) and the total annual budgets remain unchanged. Any budget adjustments resulting from a change in the entity undertaking the project (subject) shall be submitted by the leading organizing unit to the Ministry of Finance for approval following the prescribed procedures.

　　4. The total budget for the project (subject) and the total annual budgets remain unchanged. Any budget adjustments among the collaborating units of the project (subject), as well as any adjustments involving the addition or reduction of collaborating units, shall be proposed by the unit responsible for the project (subject), approved by the leading organizing unit, and reported to the Ministry of Finance for record.

　　5. The total budget for the project (subject) and the total annual budgets remain unchanged. If adjustments are required for the budgets of direct costs—including material costs, testing and analysis fees, fuel and power costs, travel expenses, conference fees, international cooperation and exchange fees, publication/literature/information dissemination/intellectual property-related expenses, labor costs, expert consulting fees, and other expenses—the project (subject) team shall submit a request for approval, which will be reviewed and approved by the unit responsible for the project (subject). The adjusted budgets must then be filed with the leading organizing unit, which will confirm them during financial acceptance.

　　6. The budgets for travel expenses, conference fees, international cooperation and exchange fees, labor costs, and expert consulting fees within the direct costs of the project (subject) may not be increased. If a reduction is necessary, such reductions must be applied to other expenditure items under the project (subject).

　　7. Budget adjustment matters requiring approval from the Ministry of Finance shall be submitted by the leading organizing unit to the Ministry of Finance before August 31 of the same year. For budget adjustment matters subject to approval by the leading organizing unit, the leading organizing unit shall make provisions based on the actual circumstances.

　　8. The leading organizing entity may, in accordance with the contents of this notice, formulate detailed implementation rules for budget adjustments and submit them to the Ministry of Finance for filing.

　　Ministry of Finance

　　September 4, 2012

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