The Temporary Provisions on the Management of Indirect Costs in Research Funds at GTIIT

Article 1          These provisions were formulated to standardize the management of indirect costs in research funds at GTIIT, improve usage benefits of the indirect costs, and have no limitations on the faculties’ enthusiasm in scientific research, according to “The Several Opinions on the Policies about Funds Management of Research Projects Supported by State Revenue” issued by Central Committee General Office and State Council, “The Implementation Opinions on the Policies about Funds Management of Research Projects Supported by Provincial Finance” issued by Guangdong Province, and relevant policies and regulations on the management of research funds issued by state, Guangdong Province and Shantou City.  

Article 2          These provisions are applicable to all types of national and local research topics and specific research projects (hereinafter referred to as “topics”) for which the indirect costs are specified in the regulations.

Article 3          The indirect costs refer to those spent by the research group during the implementation period but cannot be listed as an expense in the direct costs. The indirect costs consist of four parts: the administrative fee, the support fee of research condition, the daily office expenses of research group, and performance pay. The institution (GTIIT) is responsible for the overall management and usage of indirect costs by preparing the budget of indirect costs, including the full amount of indirect costs in the financial management of GTIIT in the manner of direct retrieval, and spending the money with an overall arrangement.

Article 4          The Budgeting of Indirect Costs

The indirect costs can be budgeted according to the reality within the upper limit of a prescribed ratio as follows:

1.      For the research projects of National Natural Science Foundation of China and the National Science and Technology Plan, as well as Science and Technology Projects of the Public Welfare Sectors, and various science and technology projects of Guangdong Province, the calculation of indirect costs shall adopt the regressive proportion of segmented excess method and control the total amount. The indirect costs shall be determined according to a certain ratio after deducting the cost for the purchase of equipment from the direct costs in a project fund. The specific proportions are as follows:

1) 20% for 5,000,000 Yuan or below;

2) 15% for the range between 5,000,000 to 10,000,000 Yuan;

3) 13% for the range above 10,000,000 Yuan.

2.  For the research projects of National Social Science Foundation and the Philosophy and Social Sciences Research Funds of the Ministry of Education, indirect costs shall be kept at or below the designated proportion of the total expenditure. The specific proportions are as follows:

1) 30% for 500,000 Yuan or below;

2) 20% for the range between 500,000 to 5,000,000 Yuan;

3) 13% for the range above 5,000,000 Yuan.

3.  Other specific projects: The budget should be formulated according to the regulations on indirect costs in each specific project.

Article 5          Withdrawal of Indirect Costs

For the research projects not supported by national treasury, the indirect costs will be withdrawn at once at a certain ratio of the received fund when handling project entry. For the projects supported by national treasury, only administrative fee of the indirect costs will be withdrawn at once at a certain ratio when handling project entry, the other items will be withdrawn from the total fund at specified ratios in the budget. Specific provisions are as follows:

1.  For a research fund with a definite budget, the indirect costs will be withdrawn according to the approved amount in the project budget.

2.  For a research fund without a definite budget, the withdrawal of indirect costs will be implemented according to the amount or proportion specified in the administrative methods or contract created for the project.

3.  For a research project without a definite budget and having no indirect-related regulations, the withdrawal of indirect costs will be implemented according to 5% of the total fund.

4.  For a sub-project undertaken by GTIIT faculty, the indirect costs shall be calculated and withdrawn according to the proportion of the sub-project fund in the total fund. If an explicit agreement was set by the research group, the PI of the project shall provide the Research, Innovation & Graduate Studies (RIGS) Office of GTIIT with the total budget of the project and allocation plan. With the acknowledgement of the RIGS Office, the allocation plan will be used as the foundation for the withdrawal of indirect costs.

Article 6          The Allocation and Usage of Indirect Costs

1.  The specific scope for the usage of indirect costs:

1)  The management cost shall be paid to GTIIT.

2)  The support costs shall be paid for the research conditions necessary for the designed tasks in the research proposal, such as existing equipment and house, consumptions of water, electricity, gas, and heating.

3)  The daily office expenses of research group shall be paid for office expenses that cannot be settled in direct costs.

4)  Performance expenses shall be mainly used as incentive payment to team members.

2.  Indirect costs shall be preferentially used for management cost and research support costs. If the indirect costs of the approved budget are lower than the asked amount, the management cost and research support costs shall still be deducted according to the proportion set by the institution, whereas the daily office expenses and performance may be reduced until zero; if the indirect costs are not enough to cover the management cost and research support costs, the costs of the latter two items shall be reduced by the same proportion, and nothing shall be allocated for the daily office expenses and performance expenses.

3.  If the annual implementation report of a project is unsatisfactory or the project is suspended or fails to pass the acceptance check, part or all of the performance expenses may be deducted.

Article 7          After a research fund is transferred to a bank account designed by GTIIT, the RIGS Office shall issue an account distribution memorandum of the indirect costs according to the project budget. The Finance Office shall transfer the indirect costs to the relevant account of the institution. The host institution or PI of a project will be responsible for the overall arrangement and usage of the indirect costs according to the above-mentioned regulations.

Article 8          The provisions shall come into force as of the date of promulgation.

Article 9          The provisions shall be interpreted by RIGS Office.