Original Title: Notice on Issuing the "Detailed Rules for the Management of Projects and Funds under the Shanghai Modern Agricultural Industrial Technology System (Trial)"
To the Agriculture and Rural Affairs Commissions and Finance Bureaus of all districts, and all relevant units:
To further standardize and strengthen the management of projects and funds under the Shanghai Modern Agricultural Industrial Technology System, and in accordance with the requirements of the “Shanghai Rural Revitalization Special Fund Management Measures” (Shanghai Agriculture Commission Regulation [2022] No. 5), the Municipal Agriculture and Rural Affairs Commission, in conjunction with the Municipal Finance Bureau, has formulated the “Detailed Rules for the Management of Projects and Funds under the Shanghai Modern Agricultural Industrial Technology System (Trial).” These rules are hereby issued to you for implementation.
This notice is hereby issued.
Shanghai Municipal Commission of Agriculture and Rural Affairs
Shanghai Municipal Finance Bureau
August 14, 2023
Detailed Rules for the Management of Projects and Funds under the Shanghai Modern Agricultural Industrial Technology System (Trial)
Chapter I General Provisions
Article 1 To further standardize and strengthen the management of Shanghai’s Modern Agricultural Industrial Technology System projects and funds, these Detailed Rules are formulated in accordance with the guiding principles of the “Special Administrative Measures for the Construction of the Modern Agricultural Industrial Technology System” (Nong Ke Jiao Fa [2022] No. 3) and the “Administrative Measures for Shanghai’s Rural Revitalization Special Funds” (Hu Nong Wei Gui [2022] No. 5), based on national and municipal regulations regarding science and technology project and fund management as well as relevant financial systems, and in light of the actual circumstances of the construction of Shanghai’s Modern Agricultural Industrial Technology System.
Article 2 The Shanghai Modern Agricultural Industrial Technology System Projects (hereinafter referred to as “System Projects”) focus on the requirements for the modernization of agriculture and rural areas. Based on the city’s relevant agricultural and rural development plans and the layout of regional specialty agricultural products, these projects integrate the city’s scientific research, education, technology extension, and enterprise resources for scientific and technological innovation and industrialization. Taking agricultural products as the unit and industry as the main thread, they allocate scientific and technological resources across the entire industrial chain to build relevant industrial technology systems with local characteristics or advantages, thereby enhancing the quality, efficiency, and competitiveness of Shanghai’s modern urban green agriculture.
Article 3 System Projects shall conduct technological research, integration, and demonstration at key nodes of the industrial chain in response to the industrial development needs identified in the plan. They shall broadly mobilize R&D capabilities from all parties, break down departmental, regional, and disciplinary barriers, and deploy innovation chains around the industrial chain.The project cycle of the system shall align with the plan, generally spanning five years. From the perspective of the holistic development of each industry, systematic and institutionalized designs shall be established regarding content planning, task allocation, collaboration methods, and organizational management. Relatively stable funding channels shall be established, and coordination with the National Modern Agricultural Industrial Technology System shall be strengthened.
Chapter 2 Management Bodies and Responsibilities
Article 4 The Shanghai Municipal Commission of Agriculture and Rural Affairs (hereinafter referred to as the “Municipal Commission of Agriculture and Rural Affairs”), in conjunction with the Shanghai Municipal Finance Bureau (hereinafter referred to as the “Municipal Finance Bureau”), shall establish the Shanghai Modern Agricultural Industrial Technology System Construction Coordination and Guidance Committee (hereinafter referred to as the “Coordination and Guidance Committee”). The Committee shall be responsible for conducting annual supervision and evaluation of the progress of system projects and for coordinating the resolution of major issues encountered during the implementation of system projects.
Article 5 The Office of the Coordination and Guidance Committee shall be located within the Municipal Agriculture and Rural Affairs Commission. The Shanghai Agricultural Science and Technology Service Center (hereinafter referred to as the “Service Center”) shall assist the Office of the Coordination and Guidance Committee in carrying out the day-to-day management of system projects.
Chapter III Organizational Structure and Job Responsibilities
Article 6 The Shanghai Modern Agricultural Industrial Technology System consists of chief experts, specialized groups, and comprehensive experimental stations. Depending on the needs of the construction tasks, demonstration sites for special projects and key node application scenarios may be established.
Each specialized group shall have one group leader position, and each comprehensive experimental station shall have one station director position.
The institution employing the Chief Expert shall serve as the technical support unit for the system project, while other institutions shall serve as project construction units.
Article 7 Duties of the Chief Expert: Establish and manage the innovation team for the system project; propose research, experimental, and demonstration tasks along with annual plans for the project’s construction cycle, and formulate task breakdown plans; organize, guide, coordinate, and implement the annual research and experimental demonstration tasks of the system project;Establish key node technological innovation teams to implement special projects and strengthen collaborative innovation across nodes; execute the system project budget and centrally manage fund allocation and usage; organize annual summaries and evaluations of the innovation team; select demonstration sites for key node application scenarios, demonstrate the application of system project outcomes, and expand the system project’s influence and catalytic effect.
Article 8 Job Responsibilities of the Professional Group Leader: Based on the requirements of the system project, analyze domestic and international technological trends in the field, propose recommendations for system project tasks, clarify the division of responsibilities within the professional group, formulate and implement technical plans, and organize members of the professional group’s innovation team to address key technological issues in industrial development through technical research, policy consultation, and emergency services, while liaising with and guiding the Comprehensive Experimental Station and demonstration sites for key node application scenarios.
Article 9 Duties of the Director of a Comprehensive Experimental Station: In accordance with the requirements of the system project, investigate and collect information on practical production issues and technical needs; conduct integrated testing and demonstrations of research outcomes generated by the system project; organize members of the experimental station’s innovation team to carry out technical training and services; and liaise with and guide application scenario demonstration sites at key nodes.
Article 10: The technical host institution of the system project shall strictly fulfill its primary legal responsibility, provide the chief expert with necessary research facilities and support staff, and promptly report major matters such as the chief expert’s job transfer, overseas travel, or violations of discipline or laws. The institution shall incorporate the system project into its scientific research projects for daily supervision and management, and strengthen the construction of internal control systems for funds.
Chapter IV Management of System Projects
Article 11 Establishment of System Projects
(1) Announcement. The Municipal Agriculture and Rural Affairs Commission, in accordance with the city’s agricultural industry development plan and technological needs, shall organize relevant industry authorities and experts to study and determine the project objectives and key tasks, and publicly issue a selection notice.
(2) Application. Applicants for the position of Chief Expert shall prepare application materials, including the Chief Expert Recommendation Form and the System Project Implementation Plan, in accordance with the selection notice. After review by their employing unit, these materials shall be submitted to the Municipal Agricultural Science and Technology Service Center. Upon receipt, the Municipal Agricultural Science and Technology Service Center shall conduct a formal review of the application materials in accordance with the requirements of the selection notice and issue a review result.
(3) Evaluation. The Municipal Agricultural Science and Technology Service Center proposes an evaluation plan, which, after approval by the Municipal Agriculture and Rural Affairs Commission, is used to organize expert evaluations. The Municipal Agricultural Science and Technology Service Center compiles the expert evaluation results and reports them to the Municipal Agriculture and Rural Affairs Commission.
(4) Public Announcement. Based on the expert review results, the Municipal Agriculture and Rural Affairs Commission shall determine the candidates for Chief Experts, the implementation plans for system project construction, and the construction funding, and shall publicly announce the candidates for Chief Experts.
(5) Issuance. After the public notice period concludes without objection, the Municipal Agriculture and Rural Affairs Commission shall issue the annual plan in accordance with the budget allocation, following consultation and approval by the Municipal Finance Bureau.
Article 12 Daily Management of System Projects
(1) Assignment of Tasks. After the plan is issued, the Chief Expert shall organize the technical host units and various implementing units of the system project to formulate an annual task breakdown plan. Upon approval by expert review, the Municipal Agricultural Science and Technology Service Center shall sign task delegation agreements and annual task assignment documents with the Chief Expert, specialized groups, comprehensive experimental stations, and project-specific implementing units, clearly defining implementation content, planned progress, performance indicators, and funding budgets.
(2) Dynamic Management. Professional groups, comprehensive experimental stations, and special project undertaking units shall submit annual work summaries through the management system by November 30 of each year, detailing fund utilization and implementation progress. The chief expert shall submit an annual report on industrial development trends and policy consultation by December 31 of each year.
(3) Annual Evaluation. The Coordination and Guidance Committee conducts an annual evaluation of the Chief Experts. Those who fail to meet task targets are required to rectify the issues within a specified timeframe; if necessary, adjustments may be made to relevant groups, stations, or personnel within the system. In the final year of a system project’s implementation, a separate evaluation is not conducted; instead, it is combined with the comprehensive performance evaluation.
The Chief Expert shall organize evaluations of the specialized groups, comprehensive experimental stations, and special projects in accordance with the annual work plan and task delegation agreement. The evaluation results shall serve as the basis for the allocation of annual performance-based expenditures and shall be reported to the Municipal Agricultural Science and Technology Service Center for record-keeping.
(4) Project Changes. Changes involving the technical host institution of the system project must be submitted to the Municipal Agriculture and Rural Affairs Commission for approval before implementation; changes involving assessment indicators, specialized groups, comprehensive experimental stations, or project-specific implementing units must be submitted to the Municipal Agricultural Science and Technology Service Center for approval before implementation; other changes not involving funding must be filed with the Municipal Agricultural Science and Technology Service Center.
(5) Project Termination. During the implementation of a system project, if significant changes occur, the technical host unit of the system project may apply to the Municipal Agriculture and Rural Affairs Commission for termination. In cases where annual assessment tasks are not completed and the project still fails to meet expectations after rectification, or in cases of serious violations of rules or discipline, the Municipal Agriculture and Rural Affairs Commission may directly terminate the project.
Article 13 Personnel Management
(1) Personnel Selection. In accordance with the principles of establishing positions based on needs and hiring personnel based on positions, the chief expert shall propose a recommended list of innovation team members when submitting the implementation plan for the project, which shall be finalized during the review process.
(2) Appointment of Personnel. Members of the innovation team shall be appointed under a contractual system; during their term of appointment, they may continue to fulfill the job responsibilities and related work tasks of their home institutions.
(3) Personnel Changes. Changes to the Chief Expert must be submitted to the Municipal Agriculture and Rural Affairs Commission and the Municipal Finance Bureau; such changes may only be implemented upon approval. Changes to the heads of specialized groups or directors of comprehensive experimental stations must be submitted to the Municipal Agricultural Science and Technology Service Center; such changes may only be implemented upon approval. Changes to other members of the innovation team must be filed with the Municipal Agricultural Science and Technology Service Center.
Article 14 Comprehensive Performance Evaluation
Upon completion of the project cycle, a comprehensive performance evaluation shall be conducted to assess the achievement of the project’s objectives based on factors such as contribution to industrial development, integration with innovative production and operation entities, recognition within the domestic industry, and participation in government industrial decision-making. Projects rated as “unqualified” or ranked last shall no longer receive support. The comprehensive performance evaluation plan shall be formulated separately.
Chapter V Fund Management
Article 15 Funding Support Method
System projects shall be supported through an upfront grant mechanism. Funds shall be allocated annually, with the budget disbursed to the technical host institution of the system project. The technical host institution shall then allocate funds to the project implementation units in accordance with the annual plan and budget.
Article 16 Scope of Fund Expenditures
The budget for system projects consists of direct costs and indirect costs.
(1) Direct Costs. These refer to expenses incurred during project implementation that are directly related to the project, primarily including:
1. Equipment Costs: These refer to expenses incurred during project implementation for the purchase or prototyping of specialized instruments and equipment, the upgrading and modification of existing instruments and equipment, and the leasing of instruments and equipment from external entities.Computational instruments, equipment, and software tools may be charged to the equipment expenses account. The procurement of equipment shall be reasonably planned; open sharing, independent development, leasing of specialized instruments and equipment, and the upgrading and modification of existing instruments and equipment are encouraged to avoid duplicate purchases. For equipment purchased with special funds where the price per unit/set/piece exceeds 500,000 yuan, the relevant provisions of the city’s joint evaluation for newly purchased large-scale scientific instruments and facilities shall be followed.
2. Operational Expenses: These refer to costs incurred during project implementation for the procurement, transportation, loading/unloading, and sorting of various materials, auxiliary materials, and other low-value consumables, as well as expenses related to testing, inspection, and processing; fuel and power; publishing, literature, information dissemination, and intellectual property matters; and meetings, travel, and international cooperation and exchange. Specific expenditure items may include:
(1) Material Costs: These refer to expenses related to the procurement, transportation, loading/unloading, and sorting of various raw materials, auxiliary materials, reagents, and other low-value consumables; experimental animals and plants; components; parts; purchased parts; and packaging materials required during project implementation.
(2) Testing, Inspection, and Processing Fees: These refer to expenses incurred during project implementation for commissioning external entities (including the technical support unit of the system project and independent economic accounting units within the construction unit) to conduct project-related inspections, testing, design, laboratory analysis, and processing.
(3) Fuel and Power Costs: These refer to separately measurable expenses for water, electricity, gas, and fuel consumption incurred during the operation of relevant instruments, equipment, and scientific facilities directly used during the project implementation.
(4) Travel, Conference, and International Cooperation and Exchange Expenses: These refer to expenses incurred during project implementation for organizing academic seminars, consultations, and feasibility studies, as well as for coordinating project activities; expenses for inter-city transportation, accommodation, meal allowances, and local transportation incurred during scientific experiments (tests), scientific expeditions, field research, and academic exchanges; and expenses for researchers traveling abroad and foreign experts visiting China to engage in scientific and technological exchange and cooperation.
(5) Publication/Literature/Information Dissemination/Intellectual Property Expenses: These refer to expenses incurred during project implementation, including publication fees, material costs, professional software purchases, literature search fees, professional communication fees, patent application fees, and other intellectual property-related expenses.
3. Labor Costs: These refer to fees paid during project implementation to graduate students, postdoctoral researchers, visiting scholars, and researchers and research assistants hired for the project, as well as fees paid to temporarily hired experts for consultation, evaluation, and similar services.
The expenditure standards for labor fees for project-hired personnel shall be determined based on the average wage level of employees in the city’s scientific research and technical services sector, in accordance with the work tasks they undertake in the project. Social insurance subsidies and housing provident fund contributions paid by the employing unit may be included in the labor fee expenditure category.
Fees paid to temporarily hired experts shall not be paid to personnel involved in project research and management; their management shall be carried out in accordance with relevant national and municipal regulations.
(2) Indirect Costs. These refer to relevant expenses incurred by the technical host institution and the construction unit of the system project during the implementation process that cannot be charged to direct costs. They primarily include: the use of premises provided for project research; daily consumption costs for water, electricity, gas, and heating; subsidies for related management expenses; and performance-based incentives for research personnel. Taking into account the institution’s credit standing, indirect costs are subject to total amount control and shall be approved at a rate not exceeding 40% of the project’s direct costs minus equipment procurement costs.
Indirect costs shall be incorporated into the institution’s unified financial management system; internal management systems shall be improved, and their use shall be coordinated. The allocation of performance-based payments shall be linked to the actual contributions of research personnel to the project. The technical host institution and the implementing entity of the system project may allocate the entire amount of indirect costs to performance-based payments, with a focus on teams and individuals demonstrating outstanding innovation performance.
Article 17 Budget Adjustments
Technical host institutions and implementing entities of system projects shall strictly use project funds in accordance with the provisions of the task entrustment agreement and the annual plan. When adjustments are truly necessary, they shall follow the procedures below and submit them to the Municipal Agricultural Science and Technology Service Center for record before the end of the construction cycle:
(1) Budget Adjustments for Technical Host Institutions of System Projects:
1. For adjustments to the equipment budget, the chief expert shall submit an application. After the institution comprehensively considers the existing equipment configuration and the actual project needs, the institution shall approve the adjustment on its own.
2. For adjustments to direct costs other than equipment expenses, the unit shall improve its internal management systems in accordance with relevant national regulations and, based on the unit’s actual circumstances, approve the adjustments itself or authorize the chief expert to make independent arrangements according to the actual needs of the research activities.
3. The total budget for indirect costs shall not be increased. Adjustments to the internal composition of indirect costs or transfers to direct costs shall be proposed by the chief expert and approved by the institution.
(II) Budget Adjustments for System Construction Units:
1. For adjustments to the equipment budget, applications shall be submitted by the professional group, comprehensive experimental station, or project leader. The institution shall approve such adjustments independently after comprehensively considering existing equipment configurations and actual project needs, and shall promptly report them to the chief expert and the technical host institution of the system project for record-keeping.
2. Adjustments to direct costs other than equipment costs shall be made in accordance with national regulations by improving internal management systems. Depending on the institution’s actual circumstances, such adjustments may be approved by the institution itself or authorized to be arranged autonomously by the specialized groups, comprehensive experimental stations, or special project leaders based on the actual needs of research activities, and shall be promptly reported to the chief expert and the technical host institution of the system project for record-keeping.
3. The total budget for indirect costs shall not be increased. Adjustments to the internal composition of indirect costs or transfers to direct costs shall be requested by specialized groups, comprehensive experimental stations, or project leaders. The institution shall approve such adjustments independently and promptly report them to the chief expert and the technical host institution of the system for record-keeping.
Article 18: Carryover and Surplus Funds
Annual carryover funds for system projects shall be retained by the system project’s technical host institution and the implementing entity and carried over to the following year for continued use in accordance with regulations.
If a project is terminated for any reason, the technical host institution and the implementing entity of the system project shall, within one month from the date of submitting the termination application or receiving the termination notice from the Municipal Agriculture and Rural Affairs Commission, complete the settlement of accounts and assets, prepare financial reports and an inventory of assets. The Municipal Agriculture and Rural Affairs Commission shall suspend the disbursement of project funds, organize an audit and disposal of project funds, and confirm and recover any remaining project funds.
For system projects that pass the comprehensive performance evaluation, the remaining funds shall be retained for use by the technical host institution and the implementing entity of the system project, and shall be allocated for direct expenditures related to scientific research activities. The technical host institution and the implementing entity of the system project shall give priority to the research needs of the original project team, strengthen the management of remaining funds, improve mechanisms for utilizing remaining funds, and accelerate the pace of fund utilization.
For system projects that fail the comprehensive performance evaluation, the remaining funds shall be recovered through the original channels; if there are still outstanding balances, they shall not be disbursed.
Article 19: Fund Audits
During the project implementation period, the Municipal Agricultural Science and Technology Service Center shall commission a qualified accounting firm to conduct spot-check audits of fund utilization.
Upon completion of the system project construction cycle, the Municipal Agricultural Science and Technology Service Center shall commission a qualified accounting firm to conduct an audit of all project funds; the audit results shall serve as an important basis for the comprehensive performance evaluation.
Article 20 Fixed assets formed from project funds used by public institutions are classified as state-owned assets and shall be managed in accordance with national and municipal regulations on state-owned asset management. Fixed assets formed from project funds used by business entities and other operating units shall be managed in accordance with relevant regulations such as the General Rules of Enterprise Finance.
Article 21: Large-scale scientific instruments and equipment, scientific data, natural and scientific resources, and other assets generated through project implementation shall be made available for open access and sharing in accordance with relevant national and municipal regulations, while safeguarding the legitimate rights and interests of the relevant units.
Chapter VI: Responsibilities and Supervision
Article 22. The technical host units of system projects shall establish and improve project management systems in accordance with laws and regulations, refine internal control and oversight mechanisms, and conscientiously exercise their rights regarding fund management, review, and supervision; take effective measures to provide scientific research, financial, and administrative support for project implementation; formulate and strictly enforce procedures for approval of adjustments; and cooperate in carrying out relevant work such as reviews, annual assessments, and comprehensive performance evaluations.
The technical host units, construction units, and chief experts of the system projects are the primary entities responsible for the construction, management, and use of funds for the system projects. The heads of professional groups and the directors of comprehensive experimental stations shall, in accordance with the annual plan and task delegation agreements signed with the chief experts, complete the implementation tasks and meet the assessment indicators, and cooperate with the chief experts to complete the collection of raw data, annual assessments, comprehensive performance evaluations, final fund settlements, and audits.
Article 23 The Municipal Agriculture and Rural Affairs Commission and the Municipal Finance Bureau shall supervise and inspect the implementation of system projects and the management and use of funds through various means, including special inspections, supervisory evaluations, and performance evaluations. For units found to have issues, they shall issue warnings, conduct interviews, and take other measures to urge rectification and pursue accountability.
The terms of the task delegation agreement shall explicitly stipulate that, for systems terminated for any reason or failing the comprehensive performance evaluation—except where due to objective circumstances—the chief expert and relevant responsible parties shall be prohibited from applying for agricultural science and technology innovation projects or system projects for a period of three years, and the Municipal Agriculture and Rural Affairs Commission shall issue a notice within a certain scope. For serious breaches of contract, such as unauthorized changes without approval, failure to cooperate with comprehensive performance evaluations, or failure to cooperate with fund audits, the funds already disbursed for the project shall be recovered, and the project application eligibility of the relevant responsible parties shall be revoked.
Article 24: If the technical host institution or implementing entity of a system project engages in violations of regulations, discipline, or contractual obligations during implementation, the Municipal Agriculture and Rural Affairs Commission, the Municipal Finance Bureau, and other relevant authorities shall, depending on the severity of the offense, take measures such as conducting interviews or suspending project funding. Furthermore, in accordance with the provisions of the task delegation agreement, measures such as terminating project execution, recovering funds already disbursed, and temporarily or permanently revoking eligibility to apply for projects shall be taken;For illegal acts such as fraud, embezzlement, or misappropriation of public funds, legal liability shall be pursued in accordance with the "Regulations on the Penalties and Disciplinary Actions for Fiscal Law Violations"; where criminal suspicion exists, the case shall be transferred to judicial authorities for handling; and the relevant outcomes of such proceedings shall be made public in accordance with the law.
Article 25 Strengthen the development of research integrity and credit management. The Municipal Agriculture and Rural Affairs Commission shall record acts of research misconduct committed by the technical host institutions and implementing entities of the system projects, relevant responsible persons, professional institutions, and review experts during project implementation and management, and use such records as an important basis for evaluating future project applications and management.
Article 26. During the execution of tasks, system projects must be managed in accordance with relevant national laws and regulations on scientific and technological confidentiality.
Chapter VII Supplementary Provisions
Article 27 The Municipal Agriculture and Rural Affairs Commission, in conjunction with the Municipal Finance Bureau, shall be responsible for interpreting these Detailed Rules.
Article 28 These Detailed Rules shall take effect on September 1, 2023, and remain valid until August 31, 2025. The “Implementation Plan for the Construction of the Shanghai Modern Agricultural Industrial Technology System” (Hu Nong Wei [2017] No. 123) is hereby repealed. For system projects already in progress, management shall be conducted in accordance with these Detailed Rules, provided that the task delegation agreements and project task books remain unchanged.
