Abstract: At present, the phenomenon of illegal use of scientific research funds in colleges and universities is quite common, and there are great disputes on the legal quality of the behavior in the theory field and practice field. Both of them are caused by the defects of our country’s scientific research funding management system. The system defects are mainly manifested in three aspects: initially, the budget of scientific research ignores the value of the researchers themselves; furthermore, there is a conflict between the research budget system and the basic characteristics of scientific research activities; finally, it is not possible to avoid the information asymmetry in the management of research funds’ auditing and reimbursement. So, we should add intellectual cost subject to the budget, establish professional guidance system of budget, expand the proportion of funding adjustments, and establish the multi-subject participation system. Only when the system defects are solved, is the punishment to the illegal use of funds fair.

Key words: research funds, the illegal use, system defect, prevention strategy