Procedures for Calculating and Allocating Financial Reference Amount to Scientific Institutions

Issued pursuant to
Section 38, Paragraph one of the Law On Scientific Activity

I. General Provisions

[28 October 2014]

1. This Regulation prescribes the procedures for calculating and allocating the financial reference amount from State budget funds to State scientific institutes, State institutions of higher education, scientific institutes of State institutions of higher education registered in the Register of Scientific Institutions, including scientific institutes of State-founded universities - derived public persons (hereinafter - the scientific institution).

1.¹ In order to ensure a scientific activity, in addition to financial resources calculated and allocated in accordance with Chapters II and III of this Regulation for the purpose of maintaining the scientific institution, the Ministry of Education and Science shall ensure for the scientific institution free of charge access to the joint national academic core network of Latvia by covering the following expenditure for the maintenance of the core network:

1.¹ 1. costs related to ensuring access to international scientific digital libraries and scientific literature databases (including purchase of the right to use academic databases);

1.¹ 2. global Internet connection subscription costs;

1.¹ 3. maintenance costs of the main State academic centre connections and network junction points (including rental of the required optical fibres and data transmission channels);

1.¹ 4. maintenance costs of the national scientific activity portal; and

1.¹ 5. maintenance costs of the joint data centre.

[28 October 2014/Paragraph shall come into force on 1 July 2015. See Paragraph 22]

II. Formulae for Calculating Financial Reference Amount

2. Financial reference amount for one calendar year (hereinafter - the financing period) (B_inst) shall be calculated by using the following formula:

B_inst = (I + P) x A_t, where

I - financial resources for the maintenance of the scientific institution;

P - financial resources for the remuneration of a scientific staff - senior researchers, researchers and research assistants (hereinafter - the scientific staff); and

A_t - the development coefficient of the scientific institution.

3. The financial resources for the maintenance of the scientific institution (I) for the financing period shall be calculated by taking into account the standard for working premises used for a scientific activity, the exploitation costs of one square metre of the premises and the coefficient of the branch by using the following formula:

I = Zd x Q x T x Kn, where

Zd - the number of the scientific staff, research technical staff and research attending staff employed by the scientific institution (hereinafter - the employees employed in the field of science) expressed in the equivalent of full working time (standard working hours in conformity with the laws and regulations governing employment legal relationship and occupation (employment) legal relationship of the officials (employees) employed at State and local government institutions). The ratio of the total number of hours worked by the employee employed in the field of science (including the annual paid leave) against the total number of working hours within the relevant financing period shall be regarded as the equivalent of full working time;

Q - the standard for working premises for one employee employed in the field of science expressed in the equivalent of full working time - 15 square metres;

T - expenditure for the maintenance of one square metre of the premises used for the scientific activity in the financing period (including the maintenance of premises, maintenance of structures and equipment, payments for public utility services, administrative costs, remuneration for technical and attending staff working in science) which have been laid down in accordance with the annual opinion of an expert which has been approved by the Ministry of Education and Science;

Kn - coefficient of the branch:

1) branches of natural sciences, engineering sciences and technologies, health and life sciences, agricultural and forestry sciences - 2.0; and

2) branches of human sciences and social sciences - 1.3.

4. Financial resources for the remuneration of the scientific staff (P) for the financing period shall be calculated by taking into account the number of the scientific staff (Zz) and the amount of base remuneration of one unit of the scientific staff (A) by using the following formula:

P = Zz x (A + N) x 12, where

Zz - the number of the scientific staff (expressed in the equivalent of full working time) in the scientific institution in the financing period;

A - the monthly base remuneration of one unit of the scientific staff (expressed in the equivalent of full working time) which conforms with 50 per cent of the lowest rate of the monthly salary of a professor in accordance with the norms for the remuneration of teachers; and

S - mandatory State social insurance contributions of the employer.

5. The development coefficient of the scientific institution (A_t) shall be calculated by using the following formula:

A_t = Ss x 0.06, where

Ss - the sum of the quality indicators of a scientific activity (maximum number of points to be granted is 12).

6. The sum of the quality indicators of a scientific activity of the institution (Ss) shall be determined in conformity with the division of scientific branches and coefficients of branches referred to in Paragraph 3 of this Regulation by taking into account the quality indicators of the scientific activity laid down in Annex 1 to this Regulation and, where necessary, based on the guidelines referred to in the introductory section of Paragraph 10 of this Regulation. The sum of the quality indicators of the scientific activity of the scientific institution (Ss) shall be calculated (by taking into account the quality assessment of the scientific activity of the scientific institution (Annex 1)) by using the following formula:

Ss = E1 + E2 + E3, where

E1 - research and development projects;

E2 - results of the scientific activity: publications, patents and plant varieties; and

E3 - promotional theses and Master's theses.

[24 November 2015]

III. Procedures for Calculating and Using Financial Reference Amount

7. The financial reference amount shall not be calculated for the scientific institution that employs less than five representatives of the scientific staff with a doctoral degree in the field of science within the meaning of the equivalent of full working time or that has not published a scientific article and implemented a scientific project within the financing period in conformity with Annex 1 to this Regulation.

[24 November 2015]

7.¹ The financial reference amount shall be calculated for the scientific institution wherein the number of representatives of the scientific staff (if the workload for each of them within the calendar year is at least 0.25 within the meaning of the equivalent of full working time) is not less than:

7.¹1. 25 (within the meaning of the equivalent of full working time) - for State scientific institutes and State-founded universities, scientific institutes of State-founded institutions of higher education;

7.¹2. 10 (within the meaning of the equivalent of full working time) - for State-founded institutions of higher education and State-founded academies, except State-founded academies subordinated to the Ministry of Culture; and

7.¹3. 5 (within the meaning of the equivalent of full working time) - State-founded academies subordinated to the Ministry of Culture.

[24 November 2015/ Paragraph in relation to the minimum number of representatives of the scientific staff shall come into force on 1 January 2017, whereas in relation to the workload of a representative of the scientific staff shall come into force on 1 January 2018. See Paragraphs 27 and 28]

8. On the basis of the information provided according to the procedures and within the deadline referred to in Paragraph 10 of this Regulation, used for the calculation of the financial reference amount for the provision of a scientific activity of professors, associate professors, docents, lecturers and assistants working in the scientific institution, the financial reference amount shall not be calculated or allocated if such persons are working regular working hours in the abovementioned academic positions in conformity with the laws and regulations governing labour rights.

[24 November 2015]

9. The scientific institution shall use the allocated financial reference amount for the remuneration of the scientific staff, the maintenance of the scientific institution, and also for the achievement of the objectives laid down in the operational strategy of the scientific institution, including for patenting inventions, their maintaining in effect, registering new plant varieties and protection of the right to use them, preparation for economic use (commercialisation), and also for ensuring co-financing of the European Union Structural Funds, other foreign and international financial instruments and international scientific research projects. The remuneration of the scientific staff from the financial reference amount allocated to the scientific institution which has been calculated in conformity with Paragraph 2 of this Regulation shall be determined by the scientific institution in proportion to the amount of the financial reference amount received for the current financing period by taking into account the remuneration policy of the scientific institution, the qualification indicators of the scientific staff and the personal investment of each senior researcher, researcher and research assistant in the sum of quality indicators of the scientific activity of the institution (Ss).

10. In order to calculate the financial reference amount for the next financing period, the scientific institution shall, by 1 April of the current financing period and by using the guidelines developed by the Ministry of Education and Science regarding documentation to be submitted for calculating the financial reference amount of the scientific institution (hereinafter - the guidelines), submit the following information to the Ministry of Education and Science and a relevant sectoral ministry (the abovementioned information shall be verified by a sworn auditor involved by the Ministry of Education and Science by using a public procurement):

10.1. the number of the employees employed in the field of science in the previous financing period and the employees employed in the field of science within the meaning of the equivalent of full working time in conformity with Paragraph 3 of this Regulation;

10.2. the titles and financing of research and development projects implemented in the scope of the Framework Programme of the European Union in the previous financing period (in conformity with the definition provided for in the scientific statistics methodology collection Frascati Manual of the Organisation for Economic Co-operation and Development (OECD) (hereinafter - Frascati Manual)) and the titles and financing of other international research and development projects obtained by the scientific institution for these projects in tenders, and also financing obtained by the scientific institution for contractual works of international research and development;

10.3. the titles and financing obtained by the scientific institution for the research and development projects (in conformity with Frascati Manual) implemented in the previous financing period, financed from the State budget of Latvia and obtained in accordance with the tender procedures;

10.4. the titles of contractual works of research and development (in conformity with Frascati Manual) implemented in the previous financing period, subjects of the contract and financing obtained by the scientific institution, including contractual works of research and development concluded with merchants, public persons (for example, the State, a local government, a State institution of higher education, a State scientific institute) and other commissioning parties (for example, a natural person, an association, a foundation) and income from the transfer of rights of inventions, patents or registered plant varieties and registered sources of the reproductive material of a forest (hereinafter - the intellectual property);

10.5. original scientific articles of the scientific staff published in the editions included in the Web of Science or SCOPUS databases, scientific monographs reviewed and published by the scientific staff within the previous three financing periods, and the intellectual property maintained in effect or registered abroad. The Ministry of Education and Science shall provide the scientific institutions with free of charge access to the abovementioned databases;

10.6. original scientific articles of the scientific staff, other than referred to in Sub-paragraph 10.5 of this Regulation, published in the editions included in international databases within the previous three financing periods, and the intellectual property maintained in effect or registered in Latvia;

10.7. promotional theses developed by the scientific staff in the previous financing period and defended in accordance with the laid down procedures; and

10.8. Master's theses developed by the employees employed in the field of science in the previous financing period and defended in accordance with the laid down procedures.

11. On the basis of the information submitted in accordance with the procedures and within the deadline referred to in Paragraph 10 of this Regulation, the Ministry of Education and Science shall, by 1 November of the current financing period, calculate the financial reference amount necessary for each scientific institution for the next financing period. The financial reference amount shall be allocated by the Ministry of Education and Science to the scientific institution by taking into account the total amount of funds allocated for this purpose in the State budget for the current year, on the basis of a contract concluded with the scientific institution regarding the results to be achieved by a scientific activity or on the basis of a tripartite contract regarding the results to be achieved by a scientific activity concluded between the Ministry of Education and Science, a sectoral ministry and the scientific institution subordinated to it.

[24 November 2015/ Paragraph in relation to the allocation of the financial reference amount on the basis of the contract regarding the results to be achieved by a scientific activity shall come into force on 1 January 2017. See Paragraph 27]

11.¹ On the basis of international evaluation of the operations of the scientific institutions organised by the Ministry of Education and Science for a period of six years and in conformity with the information referred to in Sub-paragraph 10.1 of this Regulation provided by the scientific institution, the Ministry of Education and Science shall calculate and allocate additional funds (in the amount of 10 per cent from the financial reference amount allocated in the State budget for the current year) to such scientific institutions that have been graded with "4" and "5" in the abovementioned evaluation. When allocating the abovementioned additional funds, the number of persons employed in the field of science within a subordinate unit which was graded with "4" and "5" in the international evaluation of the scientific institutions shall be taken into account in conformity with the scientific staff employed at the scientific institution (PLE).

[28 October 2014/ Paragraph shall come into force on 1 January 2015. See Paragraph 23]

11.² The Ministry of Education and Science shall not allocate the financial reference amount to the scientific institutions that have received "1" and "2" in the international evaluation of the operations of the scientific institutions (except the scientific institutions participating in the projects organised within the scope of the sub-activity 2.1.1.3.3 "Institutional Capacity Development of Scientific Institutions", the measure 2.1.1 "Science, Research and Development" of the Operational Programme "Entrepreneurship and Innovations" of the European Union Structural Funds as functional units subject to consolidation).

[28 October 2014/ Paragraph shall come into force on 1 January 2016. See Paragraph 24]

11.³ In addition to the financial reference amount which is calculated in conformity with Paragraph 2 of this Regulation the Ministry of Education and Science shall calculate and allocate the following:

11.³ 1. the financial reference amount for the scientific institution, participating in a project organised within the scope of the sub-activity 2.1.1.3.3 "Institutional Capacity Development of Scientific Institutions", the measure 2.1.1 "Science, Research and Development" of the Operational Programme "Entrepreneurship and Innovations" of the European Union Structural Funds. The referred to funding consists of the financial reference amount of the consolidated functional units attributed to the scientific institution that has been calculated for the number of the scientific staff within the meaning of the equivalent of full working time and indicators of a scientific activity in the previous financing period in conformity with Paragraph 2 of this Regulation, and also funding for the consolidated functional unit attributed to the scientific institution - the number of the scientific staff of legal persons governed by private law within the meaning of the equivalent of full working time calculated in conformity with Paragraphs 3 and 4 of this Regulation in the same amount per one unit of the scientific staff as for the scientific institution to which the relevant consolidated functional unit - a legal person governed by private law - is attributed to; and

11.³ 2. the financial reference amount for partial ensuring of research work to the academic staff of State-founded institutions of higher education - professors, associate professors and docents involved in a scientific activity. The abovementioned funding shall be allocated on the basis of information submitted by the State-founded institution of higher education to the Ministry of Education and Science by 1 April of the current financing period in accordance with Annex 2 to this Regulation in order to ensure the development of the scientific activity at institutions of higher education. This funding shall be calculated as one eight of full working time in conformity with the lowest rate of the monthly salary of a professor in accordance with the norms for the remuneration of teachers and shall be applied to those representatives of the academic staff who have not been elected as senior researchers, researchers or research assistants at the relevant institution of higher education.

[24 November 2015/ Sub-paragraph 1.³ 1. shall be in force until 31 December 2016, whereas Sub-paragraph 11.³ 2. shall come into force on 1 January 2016. See Paragraphs 25 and 26]

12. In conformity with the schedule for the development and submission of the Draft Medium-term Budget Framework Law and the Draft Annual State Budget Law, the Ministry of Education and Science shall submit a request to the Ministry of Finance regarding new political initiatives in respect of the amount of funds necessary in addition to ensure the financial reference amount for the next financing year.

13. Information related to the calculation, allocation and use of the financial reference amount shall be published in accordance with the following procedures:

13.1. information referred to in Paragraph 10 of this Regulation received from the scientific institutions and information regarding the financial reference amount allocated to the scientific institutions for the current year by taking into account the total amount of funds allocated within the State budget for this purpose in the current year, shall be published by the Ministry of Education and Science on the website www.izm,gov.lv; and

13.2. use of the financial reference amount shall be indicated in the annual accounts of the scientific institution that is published by the scientific institution in conformity with the law or regulation regarding the annual public accounts of the scientific institute registered in the Register of Scientific Institutions.

14. It shall only be permitted to use the financial reference amount for activities of such scientific institution for which it has been calculated.

15. The scientific institution has an obligation to provide information on the use of the allocated financial reference amount in conformity with this Regulation based on a written request by a relevant sectoral ministry and the Ministry of Education and Science.

16. The head of the scientific institution shall be responsible for the veracity of the information provided for in Paragraphs 10 and 15 of this Regulation.

IV. Closing Provisions

17. In order to ensure continuity of funding, during the transition period from 1 January 2014 until 30 June 2014 the scientific institution shall receive the following:

17.1. financial reference amount in conformity with the extent of the financial reference amount allocated by the Ministry of Education and Science for 2013 by taking into account the total amount of financial resources allocated for this purpose within the State budget in the relevant year; and

17.2. additional part of the allocated financial reference amount in the field of science for the subsidy from the State budget for 2014 that is determined in conformity with the extent of the financial reference amount allocated by the Ministry of Education and Science for 2013.

18. The scientific institution shall, by 1 April 2014, submit to the Ministry of Education and Science and a relevant sectoral ministry the information referred to in Paragraph 10 of this Regulation regarding the financing period from 1 January 2013 until 31 December 2013 and the information referred to in Sub-paragraphs 10.5 and 10.6 of this Regulation regarding the financing period from 1 January 2011 until 31 December 2013.

19. On the basis of the information submitted by the scientific institutions in accordance with Paragraph 18 of this Regulation, the Ministry of Education and Science shall, by 15 June 2014, calculate and allocate the financial reference amount to the scientific institution for 2014 by taking into account the total amount of financial resources allocated for this purpose in the State budget for 2014.

20. The following shall be allocated to the scientific institution during the transition period from 1 July 2014 until 31 December 2014:

20.1. adjusted financial reference amount which has been calculated by taking into account the extent of financial reference amount for 2014 referred to in Paragraph 19 of this Regulation and by taking into account the already allocated financial reference amount referred to in Sub-paragraph 17.1 of this Regulation; and

20.2. adjusted subsidy from the State budget which has been calculated by taking into account the extent of financial reference amount allocated additionally for the subsidy from the State budget for 2014 and the extent of financial reference amount allocated for 2014 in accordance with the procedures referred to in Paragraph 19 of this Regulation, by taking into account the part of financing that has been already allocated in accordance with Sub-paragraph 17.2 of this Regulation.

21. Paragraph 7 of this Regulation shall come into force on 1 January 2015.

22. Paragraph 1.¹ of this Regulation shall come into force on 1 July 2015.

[28 October 2014]

23. Paragraph 11.¹ of this Regulation shall come into force on 1 January 2015.

[28 October 2014]

24. Paragraph 11.² of this Regulation shall come into force on 1 January 2016.

[28 October 2014]

25. Sub-paragraph 11.³ 1. of this Regulation shall be in force until 31 December 2016. The financial reference amount referred to in this Sub-paragraph regarding the consolidated functional unit attributed to the scientific institution - the number of persons employed in the scientific staff of legal persons governed by private law within the meaning of the equivalent of full working time shall be calculated by the Ministry of Education and Science by 1 February 2016 on the basis of information submitted to the Ministry of Education and Science by the scientific institution by 8 January 2016 in accordance with the guidelines. The abovementioned information shall be taken into account by the Ministry of Education and Science when calculating the financial reference amount for the scientific institution for 2017 in conformity with Paragraph 2 of this Regulation.

[24 November 2015]

26. Sub-paragraph 11.³2 of this Regulation shall come into force on 1 January 2016. The financial reference amount referred to in this Sub-paragraph for 2016 shall be calculated by the Ministry of Education and Science as one sixteenth of full working time in conformity with the lowest rate of the monthly salary of a professor in accordance with the norms for the remuneration of teachers on the basis of the information submitted to the Ministry of Education and Science by State-founded institutions of higher education by 1 April 2016 regarding the number of academic staff - performers of a scientific activity - employed therein in 2015 within the meaning of the equivalent of full working time. The calculation of the financial reference amount on the basis of these data shall be ensured by the Ministry of Education and Science until 1 October 2016.

[24 November 2015]

27. Paragraph 7.¹ of this Regulation in respect of the minimum number of representatives of the scientific staff and Paragraph 11 in respect of the allocation of the financial reference amount on the basis of a contract regarding the results to be achieved by a scientific activity shall come into force on 1 January 2017.

[24 November 2015]

28. Paragraph 7.¹ of this Regulation in respect of the size of workload of a representative of the scientific staff shall come into force on 1 January 2018.

[24 November 2015]

Acting for the Prime Minister -
Minister for Defence Artis Pabriks

Minister for Education and Science Vjačeslavs Dombrovskis

Annex 1
Cabinet Regulation No. 1316
12 November 2013

[24 November 2015]

Quality Assessment of a Scientific Activity

Notes.

¹ In conformity with the definitions provided for in the scientific statistics methodology collection Frascati Manual of the Organisation for Economic Co-operation and Development (OECD).

² Quotations shall be regarded as a quality criteria and the number thereof in the databases referred to in the E_2.1 criterion shall be compiled by the Ministry of Education and Science.

Minister for Education and Science Vjačeslavs Dombrovskis

Annex 2
Cabinet Regulation No. 1316
12 November 2013

[24 November 2015]

Form for Submission of Data Regarding the Academic Staff Employed by a State-founded Institution of Higher Education Involved in a Scientific Activity

Note. * Professors, associate professors and docents who are working standard working hours in the abovementioned academic positions in conformity with the laws and regulations governing labour rights and who have not been elected as senior researchers, researchers or research assistants.

Translation © 2017 Valsts valodas centrs (State Language Centre)