Circular No. 05 TC/VP guiding the implementation of Resolution No. 15-HÐBT dated February 8, 1982 of the Council of Ministers on intensifying thrift practices.

JOINT CIRCULAR

OF THE MINISTRY OF FINANCE - STATE SCIENCE AND TECHNOLOGY COUNCIL NUMBER 28-TC/KHKT SEPTEMBER 24, 1986 GUIDELINES FOR THE ESTABLISHMENT AND USE OF THE CONCENTRATED SCIENCE AND TECHNOLOGY DEVELOPMENT FUND

Implementing Resolution No. 51-HĐBT dated May 17, 1983 of the Council of Ministers on allowing Ministries and General Departments to establish concentrated science and technology development funds, after reaching consensus through exchanges with relevant Ministries, the Ministry of Finance and State Science and Technology Council hereby issue guidelines for the establishment and use of concentrated science and technology development funds at Ministries and General Departments (hereinafter referred to as Ministries).

I. OBJECTIVES OF ESTABLISHING THE FUND

1. Ministries are permitted to establish concentrated science and technology development funds to carry out scientific and technological tasks within their sectors aimed at developing and innovating products, seedlings, technological methods, agricultural techniques, new machinery, equipment, tools, including certain research and survey issues necessary to meet national economic requirements for production efficiency, increased labor productivity, reduced costs, and improved product quality.

2. The establishment of concentrated science and technology development funds is intended to provide each Ministry with financial autonomy, responsibility for financing scientific and technological activities, enhancing the economic and technical level of production and products, and deepening sectoral production development.

II. CONTENTS OF FUND UTILIZATION

The centralized science and technology development fund is used to finance tasks under the sector's scientific and technological activity plan, including:

- Tasks related to natural resource surveys and environmental conditions.

- Scientific research topics and pilot production technology implementation projects.

- Support for tasks applying advanced technologies.

- Technical management activities of the sector (to improve product quality, develop and review industry standards, produce and repair measuring instruments).

- Support for scientific and technological information activities, initiatives, inventions, and international cooperation in science and technology within the sector.

Specific expenditure items for each task, as well as expenditure regulations and standards, shall be applied according to current state documents applicable to state-planned scientific and technological tasks.

III. ESTABLISHMENT AND MANAGEMENT OF THE FUND

A. Establishment of the Fund

Financial sources for establishing centralized science and technology development funds of Ministries include:

1. Contributions from enterprises directly under the Ministry to the fund for encouraging production development shall be between 10-25% of the enterprise's production development fund. The specific contribution rate of each unit is determined by the Minister or General Department Director (within the aforementioned ratio) based on the amount of the production development fund available at the enterprise and the investment needs for the Ministry's scientific and technological development plan.

2. The 20% contribution from enterprises directly under the Ministry according to the savings system stipulated in Circular No. 05-TC/VP dated March 6, 1982 of the Ministry of Finance, which was previously submitted to the science and technology development fund for applying advanced technology, will now be submitted to this centralized science and technology development fund.

3. Contributions of 30% of revenues from selling trial products, waste materials, and by-products from research and development.

This provision is set forth in Point 2, Section B, Part V of Joint Circular No. 03-TC/KHKT dated January 28, 1984 of the Ministry of Finance and the State Committee for Science and Technology.

4. Contributions of 10-20% of profits generated from the application of advanced technologies.

5. Ministries with Enterprise Associations, Companies, and General Corporations must specify the contribution rates for the centralized science and technology development fund of the Ministry and the amount retained for management by these Associations, Companies... as stipulated in Point 2, Part II of Circular No. 02-TC/VP dated January 18, 1980 of the Ministry of Finance regarding the financial system of state-owned enterprise associations.

In the future, based on practical application experience, the Joint Ministry will review and adjust the contribution ratios to better meet the requirements for the scale and management and use of the fund in relation to other enterprise funds.

B. Management of the Fund

1. Preparation of budget estimates for income and expenditure of the centralized science and technology development fund:

a. Budget estimates for income:

The amount of the centralized science and technology development fund established from the sources mentioned in Point A, Part III depends on the implementation results of the state plans of enterprises and research and development agencies. When preparing the annual budget for the centralized science and technology development fund, Ministries base it on the final report of the units for nine months to estimate the implementation of production and business plans, energy-saving plans, material and raw material consumption plans of subordinate enterprises, and sales revenue plans for trial products and waste materials of research and development agencies in the planning year to prepare the budget for the centralized science and technology development fund for the following year.

When approving the budget, the supervising Ministry approves and informs enterprises and research and development agencies about the amounts they must contribute to the centralized science and technology development fund of the Ministry according to the ratios specified in Part III above.

b. Budget estimates for expenditure:

The budget for expenditures from the centralized science and technology development fund is part of the overall budget for scientific and technological activities of the Ministries. This fund is only allocated to tasks recorded in the annual scientific and technological plan of the Ministry and approved by the supervising Ministry.

The time frame and forms for preparing budget estimates for expenditure using the centralized science and technology development fund must comply with current regulations for budget estimates for public service science and technology funds.

The forms for calculating the annual income and expenditure plan of the centralized science and technology development fund of the Ministries are stipulated in the annex attached to this Circular. Ministries are responsible for guiding detailed forms needed for subordinate units.

The entire income and expenditure plan using the centralized science and technology development fund is approved by the supervising Ministry but must be reported to the State Science and Technology Council and the Ministry of Finance for inspection and consideration to ensure proper use according to the designated purpose.

- Other expenses serving the research and drafting of legislative projects.

The allocation of funds from the centralized science and technology development fund to production and business enterprises and administrative service units still follows the current allocation system (for administrative service units using the budget allocation form). In the budget allocation form, the supervising Ministry must clearly indicate the source of funding as "Centralized Science and Technology Development Fund" so that units can distinguish it from other sources of funding.

Units receiving this funding must maintain separate records and account for it according to the current system. For administrative service units, it is accounted for in the "allocated budget" account (Account 24, Sub-account 24.2), and any surplus at the end of the year is carried over to the next year (through Account 26). For production and business units, it is accounted for in the "internal industry payment for miscellaneous transactions" account (Account 78, Sub-account 78.3).

The centralized science and technology development fund is deposited in a separate account at the Bank called "Funds Deposit for Centralized Science and Technology Development," managed by the Ministry. The balance at the end of the year is transferred to the next year for continued use and does not need to be remitted to the state budget.

3. Final settlement reports:

Annually, quarterly, along with the preparation of final reports according to the current system, units receiving funding from the centralized science and technology development fund must submit final reports to the supervising Ministry. The supervising Ministry is responsible for reviewing the final reports of the units and compiling the final reports on the income and expenditure of the centralized science and technology development fund to send to the Ministry of Finance and the State Science and Technology Council.

In cases where research topics utilize both funds from the State Budget and additional funding from the centralized science and technology development fund of the Ministry, when approving the budget estimate as well as finalizing the accounts, it is necessary to separate and clearly record them to avoid duplication.

4. Recovery:

During the implementation of research and deployment tasks, there will be the following sources of income:

- Income from selling research results and products from trial production.

- Income from liquidation or sale of equipment serving research and deployment projects funded by the centralized science and technology development fund of the Ministry and General Departments.

Units may only sell or liquidate assets when the project ends and the equipment is no longer needed. The procedures for selling or liquidating assets must comply with current regulations.

- Income from selling waste materials and by-products during research and deployment.

Ministries need to provide specific guidance to grassroots units to actively recover waste materials for cost savings; a certain percentage of the proceeds should be retained by the unit, while the remainder should be deposited into the centralized science and technology development fund of the Ministry.

IV. IMPLEMENTATION PROVISIONS

1. This Circular takes effect from the date of signature and applies to Ministries, General Departments, and State Committees with financial resources to establish the fund specified in Section A, Part III above.

2. The Heads of the Science and Technology Management Department and the Finance and Accounting Department shall assist the Minister in establishing, managing, and utilizing the centralized science and technology development fund in accordance with the regulations stipulated in this Circular.

3. Any provisions contrary to this Circular regarding the establishment of the centralized science and technology development fund in Ministries and General Departments are hereby abolished.