Joint Circular No. 101/2001/TTLT-BTC-BNNPTNT guiding the financial management regime for state budget funds invested in crop and livestock seed programs and forestry seeds.

JOINT CIRCULAR

Guidelines for financial management of state budget funds invested in the Plant and Animal Breeding Program and Forestry Seed Program

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Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of authority, preparation, implementation, and settlement of the State Budget, and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Government amending and supplementing certain Articles of Decree No. 87/CP dated December 19, 1996 of the Government
Pursuant to Decision No. 225/1999/QĐ-TTg dated December 10, 1999 of the Prime Minister approving the Plant and Animal Breeding Program and Forestry Seed Program for the period 2000-2005.
The Ministry of Finance and the Ministry of Agriculture and Rural Development issue guidelines for financial management of state budget funds invested in the Plant and Animal Breeding Program and Forestry Seed Program as follows:

1. Object and scope of application:

1.1. State budget funds invested in the Plant and Animal Breeding Program and Forestry Seed Program according to the provisions set out in Point 1, Article 3 of Decision No. 225/1999/QĐ-TTg dated December 10, 1999 of the Prime Minister based on research topics and projects approved by competent authorities.

1.2. Funds for implementing research topics and projects on plant and animal breeding and forestry seeds of the Ministry of Agriculture and Rural Development shall be guaranteed by the central budget. Funds for implementing research topics and projects on plant and animal breeding and forestry seeds of provinces and centrally-administered cities shall be guaranteed by local budgets.

1.3. Annual funding for the Plant and Animal Breeding Program and Forestry Seed Program shall be prepared, implemented, and settled in accordance with current regulations of the State Budget Law and guiding documents thereof.

2. Contents of expenditure:

2.1. For research topics and projects organized and implemented by the Ministry of Agriculture and Rural Development, including the following expenditures:

- Scientific research on seeds, including: hybridization studies, selection trials, regional testing of new varieties, recognition of new varieties, surveys to determine varieties and rejuvenation of good varieties...

- Preservation of crop and livestock gene sources at Institutes and Research Centers.

- Production of original seeds, super foundation seeds, foundation seeds, mother plants (for crop and forestry seed); sire and dam breeds (for livestock breeding). Completion of seed production technology and procedures (if applicable).

- Import of gene sources and new varieties, necessary production technologies to quickly absorb scientific and technological achievements from around the world.

- Training of new seed production techniques both domestically and internationally for seed production staff linked to each project of the Ministry of Agriculture and Rural Development.

- Preparation for investment and basic construction investment, procurement of equipment or upgrading to enhance research and application capabilities regarding seeds for some Institutes, Centers, Stations, and Farms according to approved projects.

- Directing, inspecting, supervising, interim review, and final evaluation of the implementation of the Plant and Animal Breeding Program and Forestry Seed Program.

- Other expenses directly related to seeds.

2.2. For research topics and projects organized and implemented by localities, including the following expenditures:

- Scientific research on seeds, including: hybridization studies, selection, trial experiments, regional testing of new varieties, recognition of new varieties, surveys to determine varieties and rejuvenation of good varieties...

- Preservation of crop and livestock gene sources at Central Stations, Seed Production Stations, and Farms.

- Production of original seeds, super foundation seeds, foundation seeds, mother plants (for crops and forestry seeds); sire and dam breeds (for livestock breeding). Completion of seed production technology and procedures suitable for local conditions (if applicable).

- Training of seed production techniques for seed-related staff, organizations, households, and individuals engaged in seed production in the locality.

- Preparation for investment and basic construction investment, procurement of equipment, assets, or upgrading some Seed Centers, Stations, and Farms to enhance research and application capabilities regarding seeds according to approved projects.

- Supporting part of the cost for producing high-tech seeds to enable poor farmers to have new and good seeds for production. Providing support and tools for better mating of dairy cows, beef cattle, and other livestock. Specific levels of support are decided by the People's Committee of the province or centrally-administered city.

In cases where localities need to import gene sources and new varieties that can adapt to widespread production and export but are not available domestically, they must prepare a project approved by the People's Committee of the province or centrally-administered city, after obtaining comments from the Ministry of Agriculture and Rural Development.

On the source of funds:

3.1. Expenditures for scientific research on seeds and preservation of crop and livestock gene sources and forestry seeds at Institutes, Research Centers, Stations, and Farms are allocated from the research science budget.

3.2. Expenditures for investment preparation and basic construction investment for approved seed projects are allocated from the basic construction investment capital.

3.3. Other expenditure items for the development of plant and animal breeding and forestry seeds are allocated from the economic public service budget.

On the preparation of estimates, allocation, and payment of funds:

The preparation, implementation, and settlement of public service economic funds and research science investment funds for the Plant and Animal Breeding Program and Forestry Seed Program shall be carried out in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance on the division of authority, preparation, implementation, and settlement of the State Budget.

For basic construction investment capital, management, allocation, and payment shall be carried out in accordance with Circular No. 96/2000/TT-BTC dated September 28, 2000 of the Ministry of Finance on the management and payment of basic construction investment capital and public service investment capital with construction characteristics from state budget capital.

On the recovery of products:

5.1. Projects under the seed program implemented with state budget funds (central and local levels), all seeds produced must be recovered at market prices based on guidelines from the Ministry of Agriculture and Rural Development (for projects under the Ministry of Agriculture and Rural Development) or the Department of Agriculture and Rural Development (for local projects). In special cases where seeds have not yet been sold on the market, the selling price shall be determined by the Ministry of Agriculture and Rural Development (for projects under the Ministry of Agriculture and Rural Development) or the Department of Agriculture and Rural Development shall submit to the Chairman of the People's Committee of the province or centrally administered city for determination of the selling price (for local projects). All recovered funds shall be deposited into the State Budget; however, for public institutions, 30% of the recovered funds may be retained to supplement operating expenses of the institution to enhance material facilities for scientific research, while the remaining 70% shall be deposited into the State Budget.

5.2. In cases where seed products of an entity are kept for subsequent stages as seed, the cost of purchasing seed for subsequent stages shall not be counted.

For specific-purpose breeds, grandparent breeds, produced domestically or imported for breeding purposes, entities shall manage them as fixed assets.

5.3. Regarding the portion of funding supported by the local budget for poor farmers to acquire new and good-quality seeds for production; support for fine breeding tools for dairy cattle and beef cattle breeding does not require repayment of the funds previously supported by the local budget.

5.4. For the recovery of products from scientific research activities, it shall be carried out in accordance with the provisions of Circular No. 12/2001/TTLT/BTC-BKHCNMT dated February 13, 2001, issued jointly by the Ministry of Finance and the Ministry of Science, Technology, and Environment, guiding financial management for funds recovered from scientific and technological tasks.

6. Reporting and inspection work:

- Annually and quarterly, project seed leaders must submit reports on the implementation of the project to the Ministry of Agriculture and Rural Development and the Ministry of Finance (for projects under the Ministry of Agriculture and Rural Development), and report to the Department of Agriculture and Rural Development and the Department of Finance and Prices (for local seed projects). The Department of Agriculture and Rural Development is responsible for compiling the implementation status of seed projects under the local seed program and reporting to the Ministry of Agriculture and Rural Development for compilation and reporting to the Prime Minister.

- The Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development shall cooperate with the finance authorities at the same level to organize regular or spot inspections regarding the implementation and use of funds for crop and livestock seed programs and forestry seed programs to ensure that funds are used for their intended purpose and effectively.

- At the end of each year and upon completion of the project, the Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development shall organize phased acceptance and final project acceptance as a basis for settlement of funds.

7. Implementation organization:

This circular applies to research topics and projects approved by competent authorities under the crop and livestock seed program and forestry seed program period 2000-2005 according to Decision No. 225/1999/QĐ-TTg dated December 10, 1999 of the Prime Minister.

For research topics and projects of ministries and central agencies implementing Decision No. 225/1999/QĐ-TTg dated December 10, 1999 of the Prime Minister, the financial system stipulated in this circular shall apply.

During the implementation process, if there are difficulties, units and localities are requested to promptly reflect them to the Joint Ministries for study and appropriate amendments.