Academy of Finland general conditions for funding decisions

Academy of Finland terms and guidelines for funding decisions 2010

1. Scope of application
2. Application of the full cost model in Academy research funding
3. Remittance of funds
4. Use of funds
5. Hiring staff
6. Acquisitions with Academy funding
7. Reporting responsibility of site of research
8. Reporting responsibility of principal investigator
9. Deviations from the funding plan
10. Appealing against a funding decision
11. Granting additional research grants
12. Control, discontinuation and claw-back of funds
13. Intellectual property rights
14. Delivery of social science research data
15. Scientific publications
16. Research ethics
17. Certain provisions on research funding

1 Scope of application

The general conditions for funding decisions by the Academy of Finland (hereafter the Academy) are applied to decisions where the funding period starts on 20 April 2010 at the earliest. The conditions are applied to the following types of funding:

• Senior Scientist
• Postdoctoral Researcher’s project

The general conditions for Academy funding decisions apply to both the principal investigator and the site of research. If the application has been initiated by the principal investigator and the recipient of funding specified in the Academy’s decision is the site of research, both the principal investigator and the site of research are obliged to comply with these general conditions.
 
2 Application of the full cost model in Academy research funding

As a rule, the drafting, issuing and implementation of Academy research funding decisions shall adhere to the full cost model. Academy research funding is a joint venture in which funds to finance the costs of each project always come from at least two sources. When applying for Academy funding, universities, research institutes and other research organisations commit to contributing a certain percentage of the project costs.

2.1 Funding percentage

The Academy’s funding contribution for a project is specified in the funding decision and comes to a maximum of 80 per cent. This funding percentage is equally applicable to all project costs, that is, both direct and indirect costs. Indirect costs include indirect employee costs and overheads.

3 Remittance of funds

The Academy has adopted the payment request procedure in 2010, and it is applicable to all organisations that receive research funding from the Academy. The site of research is responsible for advances and for submitting requests for payment.
The Academy will accept requests for advances and payment concerning funding decisions as e-invoices. Requests for advances and payment can also be submitted in the Academy’s online services. The payment of the last instalment is tied in with the filing of the final report of research in accordance with Item 8.

3.1 Advances

Universities and polytechnics can request advances from the Academy annually by 15 February. The Academy may pay annual advances so that a third of the Academy’s funding contribution of a project for the year in question is paid by the end of February of that year. Advances can be paid for those funding decisions where the site of research is a university or a polytechnic. Advances are always settled at year-end against the costs accrued within the project. If needed, a credit note for the advances of the previous year shall be submitted to the Academy no later than 10 January. If the project still continues, a new advance will be paid for the funding of the coming year. In this case it is required that the request for payment concerning the funding decision of the previous year has been accepted at the Academy. Advances will not be paid on grants.

3.2 Requests for payment

Requests for payment shall be submitted to the Academy on a quarterly basis: January-April, May-August and September-December. E-invoices addressed to the Academy regarding requests for payment of research projects shall be submitted by 15 May, 15 September and 15 January or by the next workday, respectively.

4 Use of funds

Research funding granted by the Academy may only be used for the purpose specified in the funding decision. If the Academy has set a condition, specified in the decision, for the awarding of funding, it must be adhered to.

Funding is granted as a total sum that must not be exceeded. Funding can be used only for costs that have incurred during the funding period. The recipient of funding shall see to that the funds are used in compliance with the funding decision, with these general terms and guidelines, and other regulations and provisions.

4.1 Basic facilities of a project

The Academy will provide funding only in so far as the site of research undertakes to provide the research project with the necessary basic facilities. These are determined on the basis of the nature of the research, but the usual basic facilities are the same as those available to other research staff at the institution, such as office and laboratory facilities, equipment (incl. computer equipment), telecommunications, telephone, mailing, copying and library services.

4.2 Costs covered with Academy funding

Academy funding can be used to cover both direct project costs (e.g. direct wages and salaries) and indirect costs (e.g. rents for premises). All these costs are covered by the same funding percentage specified in the decision.

Research grants awarded by the Academy can be used for the following purposes relating to the research plan of a research project: salaries and fees, indirect employee costs, grants normally paid only for work or studies abroad, and for the research visit by a foreign researcher in Finland of no more than twelve months, travel costs, equipment costs, costs for arranging seminars, costs for inviting a foreign researcher to Finland, and for other direct costs arising from project implementation. If the Academy requires an auditors’ report on the project, the auditing costs may be accepted from the project costs. Value added tax is also paid from Academy research grants, provided that it is not deductible in taxation and the activity has not been carried out in the form of business activity.

4.2.1 Grants

A funding decision by the Academy may also include personal grants that are usually paid only for work or studies abroad, or for shorter than 12-month research visits by foreign researchers to Finland. If the decision includes no mention of a grant, the site of research where the researcher works can decide to pay a grant for the above purposes. In this case, the principal investigator shall submit a proposal with justification for a personal grant to be paid to a researcher of his/her project. The proposal shall be submitted to a competent party (e.g. personnel, finance or general administration) of the organisation of the principal investigator. If a personal grant is approved, the site of research may pay a grant from the research grant. The Academy recommends that the Academy’s grant amounts be followed.

The Academy is not responsible for any tax consequences possibly arising from the payment of a grant. The Academy recommends that the site of research consult tax administration concerning any tax consequences in connection with the payment of a grant before the grant decision is made.

Both the grant recipient and the granting organisation are obliged to notify the Farmers’ Social Insurance Institution Mela (www.mela.fi.) of the grant. The grant recipient is obliged to take out statutory insurance cover.

5 Hiring staff

Research grants for Senior Scientists are intended for the applicants’ salary costs and other research costs, if this is specified in the decision. The Senior Scientist shall be in a full-time employment relationship with the site of research. The researcher must not have any other full-time employment during the funding period. If the salary for the task of the Senior Scientist paid in accordance with the pay system of the site of research exceeds the amount allocated by the Academy, the site of research shall pay the exceeding part.

Research grants for Postdoctoral Researcher’s projects are intended for the applicants’ salary costs that are determined in accordance with the pay system of the site of research and for other research costs, if this specified in the decision. Out of the research grant for the Postdoctoral Researcher’s project, a grant may be paid for purposes of work abroad for a fixed time with the consent of the site of research. The Postdoctoral Researcher’s project is intended for full-time research work and the Postdoctoral Researcher shall be in an employment relationship with the site of research during the funding period.

The duties of Postdoctoral Researchers include research according to a set research plan. In addition, the Academy recommends that Postdoctoral Researchers provide supervision of theses and dissertations within their own field and provide teaching related to their specific field of expertise.

The collective agreements in force at the site of research as well as other regulations concerning the employment relationship conditions shall be observed in the hiring and other employment relationship conditions of any staff to be hired with Academy funding.

5.1 Amount of teaching by hired staff

The Academy recommends that Academy-funded researchers with a doctorate provide teaching or supervision of theses and dissertations to the equivalent of 5 per cent of their annual working hours without separate remuneration. However, no more than 10 per cent of the annual working hours should be spent on teaching and other work not immediately connected with the researcher’s own research.

The Academy recommends that if Academy-funded doctoral candidates provide teaching it shall be connected with their own research and be equivalent to no more that 5 per cent of their annual working hours. Teaching must not delay the completion of a doctoral dissertation.

6 Acquisitions with Academy funding

The recipient of funding is liable to clarify whether the Finnish Act on Public Contracts is applied to acquisitions made by the Academy-funded research project, and when needed, to see to that the acquisition is in compliance with the practices stipulated in the Act.

6.1 Administration of fixed assets

Any supplies, equipment and literature acquired with Academy funding will remain in the ownership and possession of the site of research.

If funding is granted for a specific purpose specified in the decision on discretionary government transfers for acquisition of assets or for basic improvements, the property must not be used permanently for other purposes than for those defined in the decision on discretionary government transfers. Neither can the ownership or possession right of the property be handed over to anyone else during the time the property is used, as specified in the decision on discretionary government transfers.

7 Reporting responsibility of the site of research

The basis for reporting in connection with the requests payment is derived from project accounting, in which the direct costs of a project are entered (based on business accounting). In addition, the calculated overheads and indirect employee costs that are to be entered into the projects are derived from the organisation’s cost calculation. Separate reports on the calculated cost items based on the organisation’s accounting shall be submitted to the Academy Registrar’s Office annually.

The overheads percentage approved in the funding decision shall be applied during the entire funding period. The 12.5 per cent overheads percentage is applied to funding decisions that were applied for before 2009. The percentage is included in these decisions. The coefficient for indirect employee costs may change from year to year if there are such changes in statutory payments.

The total outturn data from the start of the project and the outturn data for the period in question are requested for each type of expenditure. The corresponding information shall be given on the Academy’s funding contribution. The percentage indicating the Academy’s funding contribution in accordance with the decision is used as calculation grounds for the Academy’s funding contribution. The amount and percentage of Academy funding are specified in the funding decision.
Reporting on hours worked forms part of the request for payment. If needed, the Academy also approves information on hours worked as files including all necessary data fields.

8 Reporting responsibility of the principal investigator

The principal investigator of a research project shall draft and submit a research report to the Academy no later than three months after the termination of the funding period. For separate guidelines on reporting, see www.aka.fi/eng > For researchers > Reporting. The payment of the last instalment is tied in with the submission of the final report.

9 Deviations from the funding plan

In addition to the total amount of funding, the Academy’s decision may also indicate the annual instalments and types of expenditure of a project.

Each year, it is possible to deviate from the indicated annual instalments by a maximum of +/-15 per cent. The types of expenditure indicated in the decision are normative and to deviate from them is only allowed if it supports the implementation of the presented research plan.

10 Appealing against a funding decision

All relevant changes in the content of Academy of Finland funding decisions or in issues relating to the use of funds require an advance approval by the Academy and a change in the funding decision. Deviations approved on the basis of Item 9 are not regarded as fundamental changes.

An appeal against a funding decision can be made by the site of research and the principal investigator of a project, who must submit an appeal to the Academy. The appeal shall include sufficient justifications and all necessary appendices needed for processing the issue.

Appealing against funding issues can only be made during the funding period, however, no later than two months before the termination of the funding period.
Examples of fundamental changes that require advance approval by the Academy:

• Substantial changes in the research plan, e.g. change of research topic
• Extension of the funding period
• Change of the principal investigator 
• Appeal by the site of the research
• Deviation from the annual instalments exceeds +/- 15 per cent (specified plan for annual instalments for funding).

The funding period may be extended only on application and for a special reason, such as on the basis of maternity, paternity, parental or childcare leave, military or non-military service, or a chronic disease. The maximum extension on the basis of childcare leave is twelve months. The appeal, with all relevant certificates, shall be filed with the Academy without delay no later than two months before the termination of the funding period.

The application for changing the site of research shall be filed by the principal investigator of the project. The consent of the original site of research and the commitment of the new site of research and a report on the use of funds by the finance administration at the time of the transfer shall be appended to the application.

The funding period cannot be extended on the grounds that the money has not been used.

11 Granting additional research grants

This item does not apply to funding instruments specified at the beginning of these guidelines.

12 Control and discontinuation and claw-back of funds

The Academy has the right to monitor and control the use of funds it has granted. The Academy is entitled to carry out any inspections of the recipient’s finances and operations that may be necessary for the payment and control of the use of the funds. It also has the right to control the implementation of the research, the accounting and the observance of the conditions set for the funding decision. The site of research and the principal investigator of the research project are obliged to submit to the Academy any necessary accounts and other documents and data, and to assist in the inspection. Both the site of research and the principal investigator shall also otherwise, on request, submit to the Academy information on the research and the use of the funds.

The principal investigator and the site of research must without delay notify the Academy of any changes affecting the use of the funds such as other funding or income received for the implementation of a set research plan. If this other funding or income exceeds the amount presented in the cost estimate included in the application submitted to the Academy, the Academy may require the site of research to return the portion of Academy funding that corresponds to the amount exceeding the cost estimate.

The Academy may interrupt or order the payment of funds to be terminated, or recover the funds in full or partly, if the funds have been used for a purpose other than the purpose for which they were granted, or if there is justified reason to suspect that the principal investigator or the site of research has used funds for some other purpose than for which they were granted, or has presented erroneous or misleading information regarding a fact which may have affected the granting, the amount or the conditions of funding; or otherwise violated the regulations on the use of funds or the terms incorporated into the funding decision.

The recipient of government discretionary transfers shall without delay repay into the Academy of Finland’s bank account 166030-112337 (SWIFT Nordea Bank Finland Plc, Helsinki, NDEAFIHH; IBAN  FI5616603000112337) any funds, or any portion of funds, received erroneously, in excess or evidently without grounds. The funds need not be returned if the sum does not exceed ten euros.

Provisions on the repayment and claw-back of discretionary government transfers have been laid down in Chapter 5 of the Act on Discretionary Government Transfers.

13 Intellectual property rights

The Academy advises that those engaged in research, as soon as possible after the funding decision is made, shall agree in writing with each other and with the site of research on the rights of ownership and use of the research results.

At sites of research where the Act on the Right to University Inventions (369/2006) applies, Academy-funded research is defined as commissioned research as referred to in the Act; in these cases the university has the primary right to inventions produced by research. At other sites of research, the Act on the Right to Employee Inventions is applied (656/1967).

14 Delivery of social science research data

The Academy recommends that Academy-funded social science research data be delivered to the Finnish Social Science Data Archive (FSD), based at the University of Tampere, see www.fsd.uta.fi Delivery shall take place as soon as possible after the funding has ceased.

15 Scientific publications

Scientific publications produced by Academy-funded research projects shall always indicate that the research has been conducted with funding from the Academy of Finland. The Academy recommends that Academy-funded researchers publish their articles in open-access electronic scientific journals in cases where there are electronic journals available that meet at least the same quality standards as traditional subscription-based journals. Likewise, the Academy recommends that parallel copies of all published research articles be saved in Finnish open-access electronic publication archives.

16 Research ethics

The Academy requires that the guidelines of the National Advisory Board on Research Ethics, ‘Good scientific practice and procedures for handling misconduct and fraud in science’ as well as the complementary research-ethical guidelines of the Academy of Finland be observed in all Academy-funded research (see www.aka.fi/eng > For researchers > Application guidelines > Research ethics). The site of research undertakes to notify the Academy Registrar's Office if an investigation is started concerning violation of good scientific practice by the principal investigator or a researcher who has received Academy funding.

17 Certain provisions on research funding

The use, payment and control of grants follows the Finnish Act on Discretionary Government Transfers, the State Budget Act and Decree and its implementing provisions and other general provisions and regulations regarding the use of discretionary government transfers. The site of research shall also comply with its internal regulations, provisions and instructions, if these are not in contradiction with the conditions issued by the Academy of Finland.

Updated 28th June 2010