Interim Measures for the Management of Major Special Funds for Civilian Science and Technology

　　Caijiao [2009] No. 218

　　Chapter 1 General Provisions

　　Article 1: In order to ensure the effective implementation of the major science and technology projects for civilian use identified in the "National Medium- and Long-Term Program for Science and Technology Development (2006-2020)" (hereinafter referred to as the "Major Projects"), and to standardize and strengthen the management of funds allocated to these Major Projects, this Regulation is formulated based on the "Notice of the General Office of the State Council on Issuing Several Working Rules for the Implementation of Major Science and Technology Projects" and relevant national financial and accounting management systems, taking into account the specific characteristics of the management of Major Projects.

　　Article 2: The funding sources for the major special projects shall adhere to the principle of diversification, including central government funds, local government funds, funds raised by the participating entities themselves, and funds obtained from other channels. Funds received through various channels shall be used and managed in accordance with the principles of "dedicated use, separate accounting, and emphasis on performance."

　　This regulation primarily governs the use and management of major special funds allocated by the central government (hereinafter referred to as “major special funds”). Funds from other sources shall be planned and used in a coordinated manner in accordance with the specific requirements for fund use and management set forth by their respective funding providers.

　　Article 3: The major special funds are primarily intended to support research institutions, higher education institutions, enterprises, and other entities with independent legal status located within mainland China—those approved by the respective leading groups for major special projects—to carry out basic and public-interest research that cannot be effectively allocated through market mechanisms during the implementation of these major special projects, as well as public scientific and technological activities such as research and development of common technologies and critical key technologies that precede enterprise competition. Additionally, appropriate support will be provided for the early-stage industrialization efforts related to bringing major technological equipment into the market.

　　Article 4: In accordance with the requirements for organizing and implementing major special projects and the characteristics of individual projects (topics), financial support measures such as upfront subsidies and post-subsidies shall be adopted.

　　For basic and public-interest research, as well as for major common key technology research, development, integration, and other public science and technology activities, the front-end subsidy approach is generally adopted for support. For projects (topics) with clear, measurable product goals and industrialization targets, as well as for projects (topics) that share identical R&D goals and tasks but are carried out separately by multiple institutions, the post-subsidy approach is generally adopted for support.

　　The specific support methods shall be clearly defined by the leading organizing entity in the implementation plan, taking into account the characteristics of the project (subject) and the nature of the undertaking unit. After review by the leading group, these methods will become one of the elements considered in the comprehensive balancing process conducted by the Ministry of Science and Technology, the National Development and Reform Commission, and the Ministry of Finance (hereinafter referred to as the “Three Departments”).

　　Article 5: Major special funds shall be incorporated into the national treasury’s single account system and subject to centralized treasury payments. Fund disbursements shall be managed under the national treasury’s dynamic monitoring system.

　　Chapter 2: Management Bodies and Responsibilities

　　Article 6: In accordance with the organizational and management system for major special projects, funds earmarked for major special projects shall be managed and accounted for at different levels, with each level assuming corresponding responsibilities. The three departments, the Ministry of Finance, the Leading Group for Major Special Projects, the leading organizing units, and the units undertaking specific projects (research topics) shall each be responsible for relevant aspects of the management of funds for major special projects according to their respective duties.

　　Article 7: The Ministry of Finance, the Ministry of Science and Technology, and the National Development and Reform Commission shall jointly develop and formulate management measures for major special funds; carry out comprehensive balancing of implementation plans, and coordinate and integrate the relationships among major special projects, science and technology programs, major national engineering projects, and existing scientific and technological resources, serving as the prerequisite and foundation for budget preparation and review.

　　Article 8: Based on the Management Measures for Major Special Funds and the comprehensive balancing opinions of the three departments, the Ministry of Finance shall organize budget reviews for major special projects and approve the total budgets and annual budgets for major special projects (research topics); provide guidance and oversight over budget implementation; review and approve significant budget adjustments made during the implementation of major special projects; and review and approve the final accounts for major special projects.

　　Article 9: The leading group is responsible for coordinating with the lead organizing unit to prepare the overall budget and annual budgets for major special projects (research topics). Together with the lead organizing unit, it will secure funding from sources other than central government financial allocations as well as related supporting conditions. It will also organize and carry out supervision and inspection activities pertaining to the funds allocated for major special projects.

　　Article 10: The leading organizing entity is the primary responsible party for the management of major special funds. It is tasked with organizing the project (subject) implementing entities to prepare the overall budget and annual budgets for major special projects (subjects); reviewing and consolidating, according to prescribed procedures, the proposed overall budgets and annual budgets for projects (subjects); working together with the leading group to secure funding from sources other than central government financial allocations as well as related supporting conditions; establishing an internal oversight mechanism for major special funds that is tailored to the specific characteristics of these funds, thereby ensuring the standardization, safety, and effectiveness of their use; making recommendations on significant budget adjustments during the implementation of major special projects; reviewing, in accordance with regulations, routine budget adjustments made during the execution of project (subject) budgets; organizing the project (subject) implementing entities to prepare final accounts for major special funds and report on the utilization of these funds; and conducting financial acceptance inspections, among other responsibilities.

　　Article 11: The entity undertaking the project (or subject) is the primary responsible party for the use and management of project (or subject) funds. It is responsible for preparing and implementing the budget for the major special projects (or subjects) it undertakes; using and managing the special funds for major projects in accordance with regulations; securing self-funded resources and other supporting conditions from its own institution; strictly complying with all financial rules and regulations and accepting supervision, inspection, and acceptance checks; and preparing final accounts for the special funds for major projects and reporting on the status of fund utilization.

　　Chapter 3: Methods for Fund Verification and Scope of Expenditures

　　Article 12: The special funds for major projects consist of project (subject) funding, unforeseen expenses, and administrative management expenses, which shall be approved and managed separately.

　　Article 13: The funding for major special projects (topics) consists of direct costs and indirect costs.

　　(1) Direct costs refer to expenses directly related to the implementation of a project (or research topic)—including stages such as research, intermediate trials, and pilot production. They primarily include:

　　1. Equipment Costs: Refers to expenses incurred during the implementation of a project (or research topic) for the purchase or prototype development of specialized instruments and equipment, for upgrading and retrofitting existing instruments and equipment, and for leasing instruments and equipment from external institutions. Each project (or research topic) undertaking unit shall strictly control expenditures on equipment purchases. For instruments and equipment purchased using major special funds, with individual unit prices exceeding 2 million yuan, the relevant provisions of the "Administrative Measures for the Joint Evaluation of Newly Purchased Large-Scale Scientific Instruments and Equipment at the Central Level (Trial)" shall be followed.

　　2. Material Costs: Refers to the expenses incurred during the implementation of a project (or research topic) for the procurement, transportation, loading and unloading, and sorting of various essential raw materials, auxiliary materials, and other low-value consumables.

　　3. Testing, Analysis, and Processing Fees: Refers to the expenses incurred during the implementation of a project (or research topic) that must be paid to external entities (including independent economic accounting units within the project and topic implementing organizations) for services such as inspection, testing, design, analysis, and processing, due to limitations in the undertaking unit’s own technical capabilities, processes, and equipment.

　　4. Fuel and Power Costs: Refers to the separately measurable expenses for water, electricity, gas, and fuel consumption incurred during the operation of large-scale instruments, specialized scientific equipment, and other similar facilities used in the implementation of the project (subject).

　　5. Travel Expenses: Refers to expenses incurred for out-of-town travel and intra-city transportation costs associated with conducting scientific experiments (trials), scientific expeditions, business surveys, academic exchanges, and other activities during the implementation of the project (research topic). The expenditure standards for travel expenses shall be in accordance with relevant national regulations.

　　6. Meeting Expenses: Refers to the expenses incurred for organizing and conducting related academic seminars, consultations, and coordination activities during the implementation of a project (research topic). Meeting frequency, scale, expenditure standards, and duration should be strictly controlled in accordance with relevant national regulations.

　　7. International Cooperation and Exchange Expenses: These refer to the expenses incurred during the implementation of a project (research topic) for personnel traveling abroad and for foreign experts coming to China to work. International cooperation and exchange expenses shall comply with relevant regulations governing the management of state foreign affairs funds.

　　8. Publication, Documentation, Information Dissemination, and Intellectual Property Fees: Refers to expenses incurred during the implementation of the project (research topic), including publication fees, material costs, fees for purchasing specialized software, literature retrieval fees, professional communication fees, patent application fees, and other intellectual property-related expenses.

　　9. Labor Costs: Refers to the labor-related expenses paid to R&D personnel (such as on-campus graduate students) and temporarily hired staff who do not receive salary-based income during the implementation of a project (or research topic). Labor costs incurred for outstanding college graduates hired by the project (or research topic) undertaking unit to participate in major special research tasks, including the corresponding subsidies for social insurance contributions during their employment period, may be covered under the labor costs.

　　10. Expert Consultation Fees: These refer to the fees paid to temporarily hired consulting experts during the implementation of a project (research topic). Expert consultation fees may not be paid to personnel involved in the research and management of major special projects (research topics). The expenditure standards for expert consultation fees are shown in the table below:

　　Consulting Expert Consultation Method Standard (CNY)

　　For personnel holding or equivalent to senior professional and technical titles: 500–800 person-days (Days 1 and 2); 300–400 person-days (Day 3 and thereafter).

　　Communication consulting: 60–100 people per project or research topic

　　Consultation for other personnel: 300–500 people/day (Days 1 and 2); 200–300 people/day (Day 3 and thereafter).

　　Communication consulting: 40–80 people per project or research topic

　　11. Capital Construction Costs: Refers to capital construction expenditures incurred during the implementation of major special projects, including the purchase and construction of buildings and structures as well as the acquisition of specialized equipment. Such costs shall be listed separately and shall be governed by the Financial Regulations for Capital Construction.

　　12. Other expenses refer to other directly related expenditures incurred during the implementation of major special projects (topics) in addition to the expenditure items mentioned above. Such other expenses shall be itemized separately and approved independently when applying for the budget.

　　Generally, the same expenditure item should not be allocated funds from different sources at the same time.

　　(2) Indirect costs refer to the expenses incurred by the entity undertaking a project (or sub-project) during the implementation of a major special program, which cannot be charged directly to the project’s direct costs. These costs primarily include existing instruments and equipment as well as facilities provided by the undertaking entity for the project (or sub-project) research, routine consumption of water, electricity, gas, and heating, subsidies for related administrative expenses, and expenditures by the undertaking entity aimed at incentivizing research personnel, among others.

　　Indirect costs are determined by the Ministry of Finance based on factors such as the characteristics of major special projects and individual projects (research topics), as well as the nature of the institutions undertaking these projects (research topics). Generally, indirect costs do not exceed 13% of the direct costs after deducting equipment purchase expenses and basic construction costs. Among these, expenditures specifically allocated to incentivizing research personnel typically do not exceed 5% of the direct costs after deducting equipment purchase expenses and basic construction costs.

　　Indirect costs shall be centrally managed and allocated by the unit responsible for the project (or research topic). Among the indirect costs, the portion allocated to incentives for research personnel shall, based on performance evaluations of such personnel and in conjunction with their actual research achievements, be centrally arranged by their respective units in accordance with relevant national regulations.

　　Article 14: The unforeseen expenses refer to funds allocated to address unforeseen factors that arise during the implementation of major special projects. These funds are managed centrally by the Ministry of Finance. If the entity undertaking a project (or sub-project) needs to add to its budget due to unforeseen factors, it shall submit the request for review and approval to the Ministry of Finance in accordance with the prescribed procedures.

　　Article 15: The administrative expenses for major special projects refer to the costs incurred by the relevant departments and units—such as the three ministries, the leading group for major special projects, and the lead implementing organizations—that assume management functions related to major special projects but do not directly undertake project (subject) implementation—in carrying out organizational, coordinating, and other management tasks associated with the implementation of these major special projects. These expenses are separately approved by the Ministry of Finance.

　　Chapter 4: Budget Management for Pre-Grant Projects (Topics)

　　Article 16: Pre-approval subsidies refer to a fiscal support mechanism in which the budget is approved after a project (or research topic) is officially launched, and funds are disbursed according to the project’s (or research topic’s) implementation progress.

　　Article 17: The budget for major special projects (topics) with upfront subsidies shall include both an income budget and an expenditure budget, and must comprehensively reflect all income and expenditures incurred during the implementation of the major special project, ensuring that income and expenditure are balanced.

　　Article 18: The revenue budget for major special projects (subjects) with upfront subsidies shall include central government financial funds, local government financial funds, funds raised by the institutions themselves, and funds obtained from other sources. In preparing the revenue budget, the allocation and priorities for the use of government funding and funds from other sources shall be reasonably determined based on the objectives, tasks, and implementation stages of each major special project. The leading group, the lead organizing entity, and the entities undertaking the projects (subjects) shall, in accordance with the implementation plan and scheme for the major special project, secure funding from sources other than central government financial funds. When preparing the budgets for major special projects (subjects), the entities undertaking the projects (subjects) shall provide evidence of the sources of funding from other channels; the leading group and the lead organizing entity shall give these budgets particular scrutiny when compiling the overall project (subject) budgets.

　　Article 19: The expenditure budget for pre-funded projects (topics) under major special programs shall include both direct costs and indirect costs. The preparation of the expenditure budget shall be centered on the objectives of the projects (topics) identified under the major special program, adhering to the principles of goal relevance, policy compliance, and economic rationality. It must be based on sound scientific calculations and thoroughly justified through adequate deliberation, so as to meet the reasonable needs of implementing the major special program.

　　Article 20: The leading organizing entity shall, based on the implementation plan for major special projects approved by the State Council, determine the projects (topics) and their respective undertaking units. The financial departments of the undertaking units, in collaboration with the science and technology administration departments, shall prepare the overall budget and annual budgets for the projects (topics), which shall be incorporated as part of the implementation plan. These budgets shall then be submitted step by step according to prescribed procedures to the three relevant departments for comprehensive balancing.

　　Article 21: The leading organizing entity, based on the comprehensive balancing opinions of the three departments, shall organize the revision and refinement of the overall project (subject) budget and the annual budgets. The finance department, in coordination with the science and technology administration department, shall compile a draft proposal for the special major-project budget and submit it to the Ministry of Finance one month before the “first submission” of the departmental budget for the current year, following the prescribed procedures. A copy shall also be sent simultaneously to the Ministry of Science and Technology and the National Development and Reform Commission. If there are two or more leading organizing entities, the primary leading organizing entity, in collaboration with the other leading organizing entities, shall jointly prepare and submit the budget proposal.

　　Article 22: The Ministry of Finance shall organize reviews of budgets for major special projects. Based on the review results and the fiscal capacity for the current year, it will approve the total budget and the annual budgets for individual years of major special projects (research topics). The leading organizing entity shall, in accordance with the approval documents for project (topic) establishment and the total budget and annual budgets approved by the Ministry of Finance, sign task contracts with the entities undertaking the projects (topics).

　　Article 23: Based on the total budget and the annual budgets approved for major special projects (research topics), the Ministry of Finance shall determine the budget control figures for the next year’s projects (topics) and issue them to the leading organizing units, while simultaneously sending a copy to the Ministry of Science and Technology, the National Development and Reform Commission, and the leading unit of the Steering Committee. If there are multiple leading organizing units, the budget control figures shall be issued separately to each of these units.

　　Article 24: The leading organizing unit shall, based on the annual budget control figures allocated, organize and prepare the “Second-Level” budget.

　　Article 25: The Ministry of Finance shall formally approve the annual budgets for major special projects (research topics) led by the organizing units in accordance with the statutory budgeting procedures, and shall notify the Ministry of Science and Technology, the National Development and Reform Commission, and the leading group’s coordinating unit of the approval status via official letter.

　　The major special project “Manufacturing Equipment and Complete Process Technologies for Ultra-Large-Scale Integrated Circuits” shall be implemented in accordance with the relevant procedures for managing local special funds.

　　Article 26: Major special funds shall be managed under the unified treasury account system and subject to centralized treasury payments. The entities undertaking projects (research topics) shall open special accounts as required. The leading organizing entity shall, in accordance with the approved budget, expenditure plan, implementation schedule, and prescribed procedures, promptly remit funds via centralized treasury payments to the special accounts for major funds opened by the entities undertaking projects (research topics) as approved by the financial authorities. These special accounts shall be included in the dynamic monitoring system of the treasury. Matters related to the opening of special accounts shall be governed by the relevant provisions of the centralized treasury payment system.

　　Article 27: The leading organizing entity is responsible for overseeing the implementation of the project (subject) budget. Major special funds shall be disbursed based on the progress of the project (subject) and the completion of key milestone tasks. The leading organizing entity shall, in accordance with the task contract, reasonably delineate the R&D phases and key milestones of each project (subject), clearly define the tasks associated with these milestones, specify the R&D progress, and establish the conditions for disbursement of major special funds. On this basis, the leading organizing entity shall assess the achievement of phase objectives and key milestone tasks for each project (subject), and within one month submit a fund utilization plan accordingly. After review by the Ministry of Finance, the funds will be disbursed.

　　Article 28: The entity undertaking the project (or research topic) shall strictly adhere to the approved budget and manage and account for major special funds through a specially designated account.

　　The budget for a project (or research topic) is generally not subject to adjustment. If an adjustment is indeed necessary, the relevant procedures must be followed. During the implementation of a project (or research topic), if significant changes occur—such as adjustments to objectives or technical approaches, or changes in the implementing organization—that result in adjustments to the total budget, annual budget, indirect costs of the project (or research topic), as well as the budgets for equipment expenses and capital construction expenses within direct costs, the lead organizing unit shall, in accordance with prescribed procedures, submit the adjustments to the Ministry of Finance for review and approval.

　　Article 29: A final accounts reporting system shall be implemented for major special funds. The final accounts for major special funds shall include all types of funds allocated through channels such as central government financial funds, local government financial funds, and funds raised by the institutions themselves, which are earmarked for major special projects.

　　The entity undertaking the project (or research topic) shall prepare an annual financial closing report in accordance with applicable regulations. For projects (or topics) whose funding was allocated less than three months before the end of the fiscal year, an annual closing report need not be prepared for that year; instead, the details of fund usage for such projects shall be reflected in the annual closing report for the following fiscal year. The financial closing report for the project (or topic) shall be prepared under the leadership of the undertaking entity’s finance department. After undergoing the prescribed review and consolidation procedures, the project (or topic) closing report shall be submitted to the leading organizing unit no later than April 20 of the following year.

　　Within one month after the acceptance of a major special project (or sub-project), the entity undertaking the project (or sub-project) shall prepare the final financial statement for the project (or sub-project) and report the use of project (or sub-project) funds, step by step (at each level), to the leading organizing unit. After reviewing and consolidating the reports, the leading organizing unit shall submit them to the Ministry of Finance.

　　Article 30: The unspent funds remaining at the end of each fiscal year for ongoing projects (research topics) shall be carried forward to the next fiscal year in accordance with regulations and continued use. In the event that a project (research topic) is terminated for any reason, the financial department of the undertaking entity shall promptly settle accounts and assets, prepare financial reports and asset inventories, and submit them to the leading organizing entity. The leading organizing entity will then review and propose recommendations for the disposition of these assets, submit them to the Leading Group for approval, and finally obtain approval from the Ministry of Finance.

　　Chapter 5: Management of Funding for Post-Grant Projects (Research Topics)

　　Article 31: Post-subsidy refers to a financial support mechanism in which relevant entities, guided by the objectives and tasks of major special projects, first make initial investments and carry out research and development, technology transfer, and industrialization activities. After the completion of the project (or sub-project) and the achievement of corresponding results, the entities will undergo review, evaluation, or acceptance according to prescribed procedures, and then receive the corresponding subsidy.

　　Post-subsidy includes two types: pre-approval and post-subsidy, and post-approval and post-subsidy.

　　Article 32: For projects (topics) adopting the “pre-approval and post-subsidy” approach, the project approval procedure shall follow the requirements stipulated for the pre-subsidy model. After the project (topic) is completed and passes acceptance testing, the leading organizing entity shall conduct an assessment of the project (topic)’s outcomes and value, submit a budget allocation proposal, and obtain approval from the Ministry of Finance according to the prescribed procedures. For projects (topics) with substantial R&D funding needs, high risk levels, and relatively weak financial capabilities of the implementing entities, an initial funding amount not exceeding 30% of the total central government funds requested in the project application may be disbursed in advance. The management of the disbursement and use of such initial funding shall follow the relevant regulations governing the management of pre-subsidy projects (topics). The remaining central government funds will be disbursed only after the leading organizing entity has completed the acceptance testing of the project (topic)’s outcomes, submitted a budget allocation proposal, and obtained approval from the Ministry of Finance.

　　Article 33: For projects (research topics) adopting the post-approval and post-subsidy approach, after completing the approval procedures as prescribed, the leading organizing entity shall evaluate the value of the project (research topic) outcomes and, in conjunction with the actual expenditures incurred by the project (research topic), submit budget allocation recommendations. These recommendations shall then be submitted to the Ministry of Finance for review and approval according to the prescribed procedures.

　　For projects (topics) that share the same R&D objectives and tasks and are undertaken separately by multiple institutions, the leading organizing institution generally submits specific proposals for post-subsidy projects (topics) based on the acceptance results. In principle, only one of these projects (topics)—the one that meets the relevant requirements—will receive a post-subsidy. At the same time, the leading organizing institution will formulate budget allocation proposals by taking into account factors such as the overall value of the outcomes and actual expenditure levels, and submit these proposals to the Ministry of Finance for approval following the prescribed procedures.

　　Article 34: Funds obtained through the “pre-approval and post-subsidy” approach may be used by the project (subject) implementing entity to offset various expenditures incurred in carrying out related R&D activities. Funds obtained through the “post-approval and post-subsidy” approach may be managed and allocated centrally by the project (subject) implementing entity.

　　Chapter Six: Supervision and Management

　　Article 35: The entity undertaking the project (or research topic) shall, in strict accordance with these Measures and relevant regulations on national financial and accounting management, formulate internal management measures, establish and improve an internal control system, and strengthen the management of special funds for major projects. The entity undertaking the project (or research topic) shall reinforce budgetary constraints, handle expenditures strictly within the scope and standards for expenditure stipulated in these Measures, and strictly prohibit the use of special funds for major projects to pay various fines, donations, sponsorships, or any other similar expenses. It is also strictly prohibited to seek personal gain in any form. The entity undertaking the project (or research topic) shall establish and improve systems for recording original documentation related to various expense items, as well as systems for tracking material consumption and conducting regular inventory checks, thereby performing all foundational tasks related to budgeting and financial management.

　　Article 36: The leading organizing entity shall, in accordance with the objectives and tasks of the major special project and taking into account the specific characteristics of the project, establish a financial supervision system, strengthen oversight and management of funds allocated to the major special project, and ensure that the use of these funds is standardized, safe, and effective. The leading organizing entity shall also, in compliance with the Ministry of Finance’s relevant regulations on performance evaluation and based on the implementation status of the major special project, organize experts or entrust intermediary agencies to conduct performance evaluations. The evaluation results shall be submitted to the Ministry of Finance.

　　Article 37: The leading group shall supervise and inspect the implementation management conducted by the leading organizing unit, as well as the progress of major special projects, and provide guidance to the leading organizing unit in managing all financial resources effectively.

　　Article 38: The Ministry of Finance shall organize supervision and inspection of the use and management of major special funds. The results of the Ministry of Finance’s supervision and inspection, the budget execution status of the leading organizing units, the performance evaluation results, and the findings of the supervisory inspections conducted by the leading group will serve as important bases for project (subject) implementing entities when preparing budgets, adjusting project (subject) budget allocations, and disbursing funds according to schedule.

　　Article 39: Upon completion of a major special project (or research topic), the leading organizing entity shall, in accordance with relevant regulations and rules, organize a financial acceptance review of the project (or topic). Passing the financial acceptance review is one of the prerequisites for conducting the overall project (or topic) acceptance. The following behaviors, if found, will disqualify a project from passing the financial acceptance review:

　　(1) Preparing false budgets to siphon off state financial funds;

　　(2) Special funds were not accounted for separately;

　　(3) Intercepting, squeezing, or misappropriating special funds;

　　(4) Transferring or reallocating special funds in violation of regulations;

　　(5) Providing false financial and accounting information;

　　(6) Failing to implement and adjust the budget as required;

　　(7) False promises and insufficient self-funded resources;

　　(8) Other acts that violate national financial and economic discipline.

　　Article 40: Within one month after the acceptance of major special projects (topics), the entities undertaking each project (topic) shall promptly complete the financial closing procedures. If there is any surplus funds remaining from the project (topic)—including proceeds from the disposal of purchased materials, supplies, instruments, and equipment—such surplus funds shall be managed in accordance with the relevant regulations issued by the Ministry of Finance regarding the management of surplus funds.

　　Article 41: For any violation of the provisions of these Measures regarding the use and management of funds, in addition to holding the relevant units and personnel accountable according to the "Regulations on Penalties and Disciplinary Actions for Fiscal Violations," the Ministry of Finance, together with relevant departments, may, depending on the circumstances, temporarily suspend or halt the disbursement of funds. In cases of serious violations, the Ministry of Finance may submit a recommendation to the three departments and the leading group to terminate the project (research topic). If the violation is suspected of constituting a crime, it shall be referred to the judicial authorities for handling in accordance with the law.

　　Chapter 7 Other

　　Article 42: For the use of major special funds involving government procurement, the relevant provisions of national government procurement regulations shall apply.

　　Article 43: Fixed assets formed by the use of special funds for major projects by administrative and public institutions are state-owned assets. Generally, these assets are used and managed by the entities undertaking the respective projects (research topics), and the state reserves the right to reallocate them as necessary. For fixed assets formed by enterprises through the use of special funds for major projects, the relevant regulations such as the "General Rules on Enterprise Financial Management" shall apply. The management of intangible assets, including intellectual property rights, formed by special funds for major projects shall be governed by applicable national regulations.

　　Large-scale scientific instruments, equipment, scientific data, and natural science resources generated from special funds for major projects shall, while safeguarding the legitimate rights and interests of participating institutions, be opened up and shared in accordance with relevant national regulations, thereby reducing duplication and waste and enhancing resource utilization efficiency.

　　Chapter VIII: Supplementary Provisions

　　Article 44: The leading groups and lead organizations of each major special project may formulate implementation rules in accordance with these Measures and submit them for record to the three departments.

　　Article 45: The Ministry of Finance shall be responsible for interpreting these Measures.

　　Article 46: These Measures shall take effect as of the date of their promulgation. In case of any conflict between these Measures and previously applicable management regulations, these Measures shall prevail.

　　(Source of information: Website of the Ministry of Finance of China)