Joint Circular No. 12/2001/TTLT/BTC-BKHCNMT guides the financial management of funds recovered from scientific and technological tasks.

JOINT CIRCULAR

Guidelines for managing financial resources recovered from scientific and technological tasks

từ các nhiệm vụ khoa học và công nghệ

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Implementing Decree No. 87/CP dated December 19, 1996 of the Government detailing the decentralization of management, budget preparation, execution, and settlement of 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. To unify the financial management of funds recovered from scientific and technological tasks, the Ministry of Finance and the Ministry of Science, Technology, and Environment jointly issue these guidelines.

I. GENERAL PROVISIONS

1. Financial resources recovered from scientific and technological tasks of ministries, sectors, and localities are state budget revenues, to be reinvested in scientific and technological activities, and must be managed in accordance with the provisions of the State Budget Law and specific guidance provided in this circular.

2. Recovered funds shall be deposited into dedicated accounts at the National Treasury, managed by ministries, sectors, and provincial Departments of Science, Technology, and Environment. For national-level scientific and technological tasks, funds shall be deposited into the dedicated account of the Ministry of Science, Technology, and Environment. The year-end balance of the dedicated account shall be carried over to the next year for continued use.

3. Annually, ministries, sectors, and provincial Departments of Science, Technology, and Environment shall prepare reports on the recovery fund income and expenditure, consolidated into the annual science, technology, and environmental affairs budget of ministries, sectors, and central cities and provinces, to be submitted to the corresponding financial authorities and concurrently sent to the Ministry of Science, Technology, and Environment for consolidation and submission to the Ministry of Finance.

II. SPECIFIC PROVISIONS

1. Source of recovery:

Scientific and technological tasks that must recover part of the funding supported by the state include:

- Research projects implementing experimental trials (with products commercialized).

- Pilot production projects.

- Technology transfer projects from abroad.

Ministries, sectors, and localities are responsible for transferring the entire balance of the Science and Technology Development Fund established previously into their dedicated accounts at the National Treasury.

For research projects and pilot projects not within the scope of this circular, if revenue is generated, units shall remit it to the state budget according to current regulations.

2. Content and level of recovery:

2.1. Content of recovery:

- Revenue from selling products developed through research and pilot projects.

- Revenue from selling surplus materials after completion.

- Revenue from selling fixed assets and tools used for research and pilot projects upon conclusion.

- Other income (if any).

2.2. Level of recovery:

The level of recovered funds for research and pilot projects ranges from 60% to 100% of the state budget support, categorized as follows:

- Recovery rate of 60% to 70% applies to projects directly serving agriculture, rural areas, mountainous regions, and economically disadvantaged areas.

- Recovery rate of 70% to 80% applies to:

+ Projects producing industrial goods for commercialization but at small scale or individual units.

+ High-tech projects as defined by competent authorities.

+ Projects transferring research results from abroad.

- Recovery rate of 80% to 100% applies to projects not falling into the above categories.

For localities, in special cases, the Department of Science, Technology, and Environment shall coordinate with the Department of Finance and Prices to submit to the Chairman of the Provincial People's Committee for consideration, which may decide on a lower recovery rate than stipulated in this circular, but not less than 50% of the state budget support.

Specific levels are determined by the approving authority and bear responsibility for their decisions.

The corresponding financial authority has the right to inspect and verify; if the recovery rate is found to be incorrect, they can request the approving authority to adjust it.

2.3. Consideration for reduction in recovery funds:

In cases where research and pilot projects must be halted due to natural disasters, market fluctuations leading to difficulty in product sales, or inability to sell products, the recovery funds may be reduced. When encountering such situations, the project leaders must report in writing the implementation process and reasons for halting the projects, along with the ability to repay state budget support to the supervising authority for verification and confirmation.

- For national-level projects, after verification, the supervising authority shall send a written report to the Ministry of Science, Technology, and Environment for coordination with the corresponding financial authority to consider and decide on the reduction in recovery funds.

- For ministry, sector, and local projects, the supervising authority shall coordinate with the corresponding financial authority to consider and decide on the reduction in recovery funds.

3. Contents of expenditures from recovered funds:

- Support for pilot production projects with the following expenditure items:

+ Support for completing technology (including completing production lines, establishing optimal processes, supplementing or replacing equipment and measuring tools...).

+ Support for trial production costs (raw materials, energy, labor...).

+ Support for training managers and high-skilled workers directly serving the projects.

+ Support for marketing promotion, management, inspection, and acceptance of projects.

The state support shall not exceed 30% of the total investment required for the project as approved by the competent authority (excluding existing equipment and facilities). The specific support level for each project is decided by the approving authority. The financial authority shall inspect and verify; if the support amount deviates from the prescribed total and expenditure items, they have the right to request the approving authority to adjust it.

- Allocate for urgent scientific and technological tasks in accordance with the Decision of the competent authority, in compliance with the current state financial system and standards.

4. Financial Management Work:

The preparation of budgets, disbursement, and settlement of funds from recovered revenues shall be carried out in accordance with general regulations on budget preparation, disbursement, and settlement under the State Budget Law, current financial systems, and specific guidelines as follows:

4.1. Budget Preparation:

- Annually, along with the preparation of revenue and expenditure budgets, based on plans to recover funds from scientific and technological projects with recoverable funds and the implementation status of experimental production projects, Ministries, Sectors, Provincial Science, Technology, and Environment Departments shall prepare revenue and expenditure budgets for recovered funds to be included in the scientific, technological, and environmental budget and submit them to the corresponding financial authorities and the Ministry of Science, Technology, and Environment.

- Expenditure budgets from recovered funds from scientific and technological tasks shall be submitted together with the annual state budget expenditure budget according to the State Budget Law.

4.2. Revenue Collection and Submission of Recovered Funds:

- The Ministry of Science, Technology, and Environment (for recovered funds from national-level scientific and technological tasks), Ministries, and Sectors (for recovered funds from ministry and sector-level scientific and technological tasks), and Provincial Science, Technology, and Environment Departments (for recovered funds from local scientific and technological tasks) shall be responsible for opening special collection accounts at the State Treasury to monitor and manage recovered funds from scientific and technological tasks and bear responsibility for the progress of recovery and the amount of recovered funds as stipulated in contracts.

- Units implementing scientific and technological projects shall be responsible for fully submitting recovered funds into the special collection account within the time specified in the contract. Higher-level management agencies of these units shall be responsible for urging the units to recover funds in accordance with signed contracts.

4.3. Disbursement of Funds from Recovered Revenues:

Financial authorities shall allocate funds to units implementing projects (directly to the unit or through higher-level management agencies) based on:

- Allocated expenditure budgets from recovered funds for science and technology.

- Signed science and technology contracts and accompanying project files.

- Recovered funds from special collection accounts that have been deposited into the state budget.

For projects lasting over one year, units implementing the projects must report the results of the previous year's implementation as the basis for further funding allocation for the following year.

Specifically, for national-level projects signed by the Ministry of Science, Technology, and Environment with provincial departments of science, technology, and environment, the Ministry of Finance will allocate funds through provincial finance and price departments to the provincial departments of science, technology, and environment.

4.4. Reporting Implementation Results and Settlement of Funds:

- Settlement of state budget funds supporting implementation shall be carried out in accordance with Circular No. 103/1998/TT-BTC of the Ministry of Finance "Guidelines for the Delegation, Preparation, Execution, and Settlement of the State Budget," in addition to the following provisions:

+ For projects implemented using locally recovered funds, the implementing agency shall report to the provincial department of science, technology, and environment for consolidation and reporting to the provincial finance and price department.

+ For projects implemented in provinces using centrally recovered funds (managed by the Ministry of Science, Technology, and Environment): the implementing agency shall report the settlement to the provincial department of science, technology, and environment for consolidation and reporting to the provincial finance and price department. The provincial finance and price department shall report the settlement to the Ministry of Finance.

+ For projects implemented centrally using recovered funds managed by the Ministry of Science, Technology, and Environment or recovered funds managed by higher-level management agencies, the reporting and settlement shall be conducted with the higher-level management agency.

Specifically, for projects signed and funded from 1997 or earlier: units primarily implementing projects using central government funds, allocated by the Ministry of Science, Technology, and Environment, shall be responsible for settling accounts with the Ministry of Science, Technology, and Environment for consolidation and settlement with the Ministry of Finance. For units primarily implementing projects using local government funds, the settlement shall be with the provincial finance and price department.

4.5. Monitoring Project Implementation:

- For national-level projects, annually, the Ministry of Science, Technology, and Environment, in coordination with the Ministry of Finance and the main managing agencies of the implementing units, shall inspect the implementation of projects regarding progress, scientific and technological contents... as stipulated in the signed contracts. Specifically, regarding the inspection of the use of allocated funds for projects, it shall be mainly coordinated by the main managing agency in conjunction with the financial agency.

- For ministry and sector-level projects: Ministries and sectors shall coordinate with the Ministry of Finance to inspect the implementation of projects regarding progress, scientific and technological contents... as stipulated in the signed contracts and the use of allocated funds for projects.

- For local projects: Provincial Science, Technology, and Environment Departments shall coordinate with the main managing agencies and corresponding financial authorities to conduct inspections of project implementation regarding progress, scientific and technological contents... as stipulated in the signed contracts. Specifically, regarding the inspection of the use of allocated funds for projects, it shall be mainly coordinated by the main managing agency in conjunction with the corresponding financial authority.

In cases where the implementing units fail to comply with the terms stipulated in the contracts, misuse funds, or violate regulations, the aforementioned inspection agencies shall recommend the competent authority to suspend the implementation of the projects and recover the allocated funds.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days after the date of signature, replacing Circular Joint Circular No. 50/1998/TTLT/BTC-BKHCNMT dated April 15, 1998, of the Ministry of Finance and the Ministry of Science, Technology, and Environment "guiding financial management work for funds recovered from scientific and technological tasks." During implementation, if there are difficulties or obstacles, they are requested to be reported to the Ministry of Finance and the Ministry of Science, Technology, and Environment for study and appropriate amendments and supplements./.