Funding by the Ministry of Education and Culture can be used to cover both direct and indirect costs from the projects, incurred from:
1) Salaries for researchers in the research group
The amount of the salaries applied for must be in proportion to the average salary level of the site of research.
Part of the funding awarded by the Ministry of Education and Culture may be in the form of an individual grant. This grant may be used either for an individual researcher working abroad, or for an international co-researcher working in Finland. In these situations, the Academy of Finland’s practices and scope of grants are applied. If the individual grant is used for working continuously for at least four months in scientific research and the grant intended for work adds up to EUR 4,032 or more (in 2021) when converted into annual earned income, the recipient of the grant must notify the Farmers' Social Insurance Institution of the grant (MELA). MELA collects pension, occupational accident and group life insurance contributions on the grant for the insured period, i.e. for the period the recipient receives the grant. Tax authorities retrospectively collect contributions based on health insurance legislation. These statutory insurance contributions normally amount to around 15% of the total grant.
Other expenses
At its discretion, the Ministry of Education and Culture may also fund other expenses for research projects. Other expenses do not cover any basic facilities of the research site that are paid for, wholly or in part, with overheads. A clear breakdown of other expenses according to type of expenditure and year must be included in the application:
- materials, supplies and other goods,
- participation in conferences and meetings (maximum of EUR 5,000 per year),
- other expenses (itemised)
The criteria for expenses incurred by attending conferences and meetings comprise an approved scientific presentation at a conference or meeting (such approval must be presented when reporting on the research to the Ministry of Education and Culture), a central position of trust in the organising community or membership in the community bureau.
Overheads (maximum of 15% of the total sum granted)
At most 15% of the discretionary government grant awarded by the Ministry of Education and Culture may be spent on research project overheads intended to cover the basic requirements of projects receiving research funding. The general basic requirements for recipients of discretionary government grants are the same as those for other research staff at the institution: i.e. access to office and laboratory premises, equipment (incl. computer equipment), and telecommunications, telephone, postal, copying and library services.
Funding granted by the Ministry of Education and Culture may, as a rule, cover at most 95 per cent of the acceptable costs of the activities or project being funded. Under the Act on Discretionary Government Transfers (688/2001, section 6), discretionary government grants may not cover the full sum of overall costs of the activities or project, unless there are essential and justified reasons to do so to meet the objectives set for discretionary government grants. Each application must include details of funding received from other sources and funding by the research organisation itself.
Changes in the use of funding
No permission is needed from the Ministry of Education and Culture for minor changes in the research plan. However, permission is required if a researcher or the site of research changes, or if the research plan alters significantly, for example. Other reasons for changes that significantly impact the execution of the research also require permission from the Ministry, and applying for such permission can be submitted in free-form text.
The expenditure types for cost estimates listed in the original application are normative, which means that departure from them is permissible, if this supports the execution of the proposed research plan. However, if the cost estimates depart from the original estimates by more than 15 per cent, the recipient of the discretionary government grant must contact the Ministry of Education and Culture.
If the recipient of the discretionary government grant has not used the government grant over the period for which it was awarded, the remaining funds must be reimbursed to the Ministry of Education and Culture. An extension of the expiry date may be granted only for highly compelling reasons. In such cases, a well-substantiated application for an extension must be submitted to the Ministry of Education and Culture no later than 30 days before the original expiry date for using the funds.
Restrictions
The Ministry of Education and Culture will fund individual research projects being launched in 2022 for a maximum period of three years and to a maximum total of EUR 400,000 per project.
Under the Act on Discretionary Government Transfers (688/2001), a research project may not receive simultaneous funding for the same purpose from both the Ministry of Education and Culture and the Academy of Finland. When applying for funding for different sub-areas of an extensive research project simultaneously from both the Ministry and the Academy, the applicant must submit separate applications to both financing organisations.
The applications will be processed only if they are not designed to be used to apply for funding for one and the same purpose. The applications must also include a description of the link between the study in question and the larger project. The basic principle is that basic research associated with the overall research entity falls within the scope of the Academy of Finland and applied research within that of the Ministry of Education and Culture.
The funding period for the research projects will begin on 1 April 2022 at the earliest. The funding may be used in the course of the year in which it was granted and in the successive year. The Ministry of Education and Culture will do its best to reach decisions on the discretionary government grants by March 2022 at the latest.
As a rule, the Ministry funds an individual research project for a maximum of three years.
Continued financial support is contingent on whether Parliament allocates sufficient funds for sport science research projects, and whether the subsidised project is proceeding according to plan and whether the research has in place a realistic plan for further research.
Discretionary government grants may only be used for the purpose for which they were awarded
Discretionary government grants awarded by the Ministry of Education and Culture may cover at most the share specified in the government grant decision of the total costs incurred from the activities for which the government grant was awarded or of the actualised total costs of the project. The eligible costs are determined in the government grant decision and its appendices.
A sum corresponding to an annual salary of EUR 80,000 (including statutory indirect labour costs) qualifies as eligible costs for salaries and remuneration for each salary earner. Salaries may be paid in the form of monetary pay or fringe benefits.
The recipient of a discretionary government grant must have appropriate financial management and administration practices in place.
The recipient must submit a report on the use of the discretionary government grant to the Ministry by the date specified in the government grant decision.
Financial reporting based on cost accounting is required of the government grant recipient if the government grant that has been awarded is a special grant or a general grant intended for a specific part of activities.
The Ministry of Education and Culture has the right to conduct audits of discretionary government grant recipients’ finances and operations that are necessary for the payment of government grants and supervision of their use (Act on Discretionary Government Transfers, section 16).
Grant recipients must verify whether they are obliged to comply with procurement legislation, and if so, to take this into account in their activities. A recipient other than central or local government or a religious community may also be obliged to arrange competitive tendering for their procurements in accordance with the procedures laid down in the Act on Public Procurement and Concession Contracts.
- If a discretionary government grant recipient meets the criteria for institutions and bodies governed by public law (for example if more than half of its funding comes from a public source), the government grant recipient must comply with the Public Procurement Act in all its procurement processes.
- If a recipient is awarded a government grant amounting to more than 50% of the value of a specific procurement, the recipient must comply with the Public Procurement Act in the procurement process.
(Act on Public Procurement and Concession Contracts 1397/2016).
The Ministry of Education and Culture has outlined that discretionary government grant recipients must invite tenders from more than one supplier in such procurement of goods and services whose value falls below the national threshold value but exceeds EUR 20,000 exclusive of VAT.
Other terms and conditions also apply to how discretionary government grants may be used. For a full list of terms and conditions applicable to discretionary government grants, visit on website.
