NEDO Web Page https://www.nedo.go.jp/english/index.html

To All Those Engagedin NEDO Projects
Five Principles of Accountingfor NEDO Projects

In the event of a false application and overcharging of expenses, or misconduct orinappropriate conduct in research activities, NEDO may take the following strictmeasures in addition to requesting the return of research expenses.
• Suspension of subsidies and new contracts (up to three years for contractors or subsidy recipients)
You cannot apply for NEDO projects during the suspension period. The Ministry of Economy, Trade andIndustry (METI) and other ministries and agencies will take the same measures, and you may not be able
to receive any public research funds for a considerable period of time. Furthermore, if a researcher

commits misconduct in research activities, NEDO may take measures lasting up to ten years for all who
are involved in the misconduct.

• Disclosure of the project operator’ s name and details of its misconduct• Criminal prosecution (violation of the Budget Execution Act*)*The Act on Regulation of Execution of Budget Pertaining to Subsidies, etc. (Act No. 179 of 1955)

Not only juridical persons but also their employees who commit violations are subject to penalties.
(Application of Penal Provisions under Article 29-32)

New Energy and Industrial Technology Development Organization
Risk Management Department
MUZA Kawasaki Central Tower, 16F
1310 Omiya-cho, Saiwai-ku, KawasakiCity, Kanagawa 212-8554 Japan
https://www.nedo.go.jp/english/index.html

New Energy and Industrial Technology Development Organization
Feb. 2024

helpdesk-e@ml.nedo.go.jp

Contact point for inquiries and comments on
administrative processing and procedures for
entrustment/subsidy projects:

helpdesk-2e@ml.nedo.go.jp

Contact point for receiving allegations about
misconduct of research activities or misuse ofresearch funds related to NEDO projects:

Contact Details for Inquiries

Please write your daily record, which is the basis for the labor expense calculation, correctly every day byyourself. The manager of the work should regularly check whether there are any differences or falsehoods inthe recorded contents.

Please fill in the daily recordand other documents accurately.

When purchasing goods or subcontracting, please try to use expenses economically by comparing quotations.

When using expenses, please execute procurement
in an economical and efficient manner.

Do not mix multiple research funds. Duplicate receipt of public funds for the same research theme is not allowed.

Do not mix research funds for one projectwith other research funds for other projects.

In principle, orders, deliveries/inspections, and payments should be made during the project period.
*Deposits (pooled money) to suppliers are clearly misconduct.

Only expenses that are incurred during
the project period are to be recorded.

General office supplies (e.g., toner for copiers, printer ink cartridges, pencils, and office equipment such asdesks) that are not consistent with the project purpose and that cannot be identified as being used directly forthe project cannot be included in direct expenses. In addition, please refrain from making purchases that are
not necessary, which can be regarded as a year-end budget fulfillment.

Only expenses that are directly necessary
for the project are to be recorded.

Five Principles of Accounting for NEDO Projects

The fabrication, falsification, and plagiarism of research results and papers inresearch activities are the most malicious forms of misconduct that are
unacceptable as a researcher. Please manage results
appropriately.

Appropriate Management of Research Results

NEDO’ s research expenses are financed by public funds. When executing researchexpenses, please ensure proper accounting procedures are followed in accordance with not
only laws and regulations but also internal rules. In addition, please observe the following fiveprinciples of accounting.
Furthermore, it is desirable to have an organizational system with internal checks andbalances, such as not having the same person as the person who places the order and theperson who inspects the delivered goods, to establish and thoroughly enforce the rules foradministrative procedures related to accounting execution, and to strengthen the checksystem by conducting periodic audits.

Proper Execution of Expenses

Please pay attention to the following matterswhen carrying out NEDO projects!