Joint Circular No. 120/2014/TTLT-BTC-BKHCN guiding the financial management of the National Science and Technology Innovation Fund

 

JOINT CIRCULAR

Hguiding financial management for

National Fund for Scientific and Technological Innovation  

______________________

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 20/2013/NĐ-CP dated February 26, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Implementing Decision No. 1342/QD-TTg dated August 5, 2011 of the Prime Minister on the establishment of the National Fund for Scientific and Technological Innovation;

Implementing Decision No. 1051/QD-TTg dated July 3, 2013 of the Prime Minister promulgating the Charter on the organization and operation of the National Fund for Scientific and Technological Innovation;

The Minister of Finance and the Minister of Science and Technology issue this Joint Circular guiding financial management for the National Fund for Scientific and Technological Innovation as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular guides financial management for the National Fund for Scientific and Technological Innovation (hereinafter referred to as "the Fund"); it does not include guidance on financial management for credit activities such as preferential loans, interest rate support for loans, and guarantees for loan borrowing by the Fund. Guidance on preferential loans, interest rate support for loans, and guarantees for loan borrowing by the Fund shall be carried out according to separate guidelines issued by the Ministry of Finance and the Ministry of Science and Technology.

Article 2. This Circular applies to organizations, individuals, and enterprises participating in scientific and technological tasks in Vietnam and involved in managing the Fund.

Article 2. Principles of Financial Management of the Fund

Clause 1. The Fund operates without profit-making objectives and has the function of providing preferential loans, supporting interest rates for loans, guaranteeing loan borrowing, and funding for organizations, individuals, and enterprises to conduct research, technology transfer, innovation, and improvement of technology.

Clause 2. The Fund is a public service unit under the Ministry of Science and Technology, with independent accounting, legal personality, its own seal, and a separate account. When the Fund performs functions related to credit activities (preferential loans, interest rate support for loans, guaranteeing loan borrowing), the Ministry of Finance and the Ministry of Science and Technology will study, consider, and unify relevant contents concerning the state financial institution model of the Fund in accordance with Article 2 of Decision No. 1342/QD-TTg dated August 5, 2011 of the Prime Minister on the establishment of the National Fund for Scientific and Technological Innovation.

Clause 3. The Fund fulfills tax obligations and enjoys tax incentives for financial activities in the field of technology transfer, innovation, and improvement of technology in accordance with current tax laws and other relevant legal documents.

Clause 4. The Fund operates independently in finance in accordance with regulations applicable to state financial institutions and implements accounting systems in accordance with current accounting laws.

Article 3. Responsibilities of Relevant Authorities

Clause 1. The Fund Management Board and the Fund Director are responsible to the Minister of Science and Technology for the proper and efficient management and use of capital and assets in accordance with the Charter of the Fund's organization and operations.

Clause 2. The Ministry of Science and Technology performs state management functions over the Fund's activities; annually guides, inspects, reviews, and approves the budget estimates and final accounts of state funds, annual financial revenues and expenditures of the Fund, and compiles them into the annual final report of the Ministry of Science and Technology in accordance with current regulations.

Clause 3. The Fund is subject to inspection, audit, and review by competent state agencies in accordance with the law.

Chapter II

PROVISIONS ON CAPITAL MANAGEMENT

Article 4. Sources of Fund Operations for the Fund

1. Capital from the State Budget

a) The registered capital of the Fund is 1,000,000,000,000 VND (one trillion VND), provided by the state budget for scientific and technological activities. The Fund receives additional capital annually from the state budget to reach the total registered capital of the Fund.

Based on the specific operational situation of the Fund, the Minister of Science and Technology shall submit

b) The Fund may use up to 50% of the state budget capital provided to implement interest rate support, preferential loans, and guarantees for borrowing.

2. Other Capital

a) Capital raised from financial and credit organizations both domestically and internationally;

b) Voluntary contributions from organizations and individuals both domestically and internationally;

c) Interest income from loan projects of the Fund;

d) Other lawful sources of funds.

Article 5. Principles for Using and Allocating Capital for the Fund

1. The Fund's capital must be used for sponsorship and lending in accordance with current laws, regulations stipulated in this Circular, and must ensure the correct target and purpose.

2. The content of science and technology tasks and projects funded by the Fund must not overlap with those already or currently being implemented using the Fund’s capital or other state capital sources.

3. The Fund may use idle registered capital that has not been used for sponsorship or lending to deposit at commercial banks for the purpose of preserving and developing the Fund's capital but must ensure safety.

4. Annually, the Fund balances its capital sources and needs, plans for various capital sources:

a) The Fund actively mobilizes and accepts external capital sources and other capital sources according to the Fund's regulations and relevant state regulations;

b) The Fund balances state budget capital sources to consolidate in the Ministry of Science and Technology's state budget estimate.

5. The Fund opens accounts at the State Treasury and transaction accounts at commercial banks as prescribed. The Fund receives annual supplementary capital from the state budget to reach the total registered capital of the Fund according to the state budget estimate, provisions of the State Budget Law, and guiding documents implementing the State Budget Law.

6. The objects, contents, and levels of expenditure from the state budget are carried out in accordance with current laws and regulations stipulated in this Circular.

7. The Fund's operating capital and assets must be used for their intended purposes and effectively according to the Fund's sponsorship methods. Supervision, inspection, and auditing of the use of capital and assets of the Fund are conducted according to current regulations on state budget expenditures.

8. The Fund is permitted to carry over surplus capital from the fiscal year to the next fiscal year.

Article 6. Preparation and Approval of the Fund's Annual Financial Plan

1. Annually, at the time of preparing the budget estimate, the Director of the Fund prepares the Fund's financial plan including the following contents:

a) Estimated balance of state budget capital, plan to recover loaned capital, recover interest on loans, and plan to raise funds from other sources.

b) Sponsorship, lending, interest rate support, and guarantee plans for borrowing from state budget capital and non-state budget capital.

c) Regular expenditure plan for the Fund's management machinery.

d) Supplementary capital plan from the state budget.

2. The Director of the Fund sends the Fund's financial plan to the Audit Board and the Management Council. The Management Council reviews, approves, and sends it to the Ministry of Science and Technology for consolidation into the state budget estimate sent to the Ministry of Finance in accordance with current laws.

3. The state allocates and disburses annual state budget capital to the Fund in accordance with the provisions of the State Budget Law and guiding documents for implementation.

4. The Director of the Fund prepares the final financial report of the Fund to send to the Audit Board and the Management Council. The Management Council reviews and sends it to the Ministry of Science and Technology for approval to send to the Ministry of Finance in accordance with financial management regulations.

Chapter III

REGULATIONS ON FINANCIAL MANAGEMENT FOR

THE FUND'S SPONSORSHIP ACTIVITIES

Article 7. Funding for business enterprises' research and development projects on new technology, advanced technology, high technology; experimental production of new products; transfer, improvement, and innovation of technology to produce key products, important products, national products.

The Fund shall provide funding for the implementation of business enterprises' research and development projects on new technology, advanced technology, high technology; experimental production of new products; transfer, improvement, and innovation of technology to produce key products, important products, national products proposed by organizations and individuals, including:

1. Funding up to 100% of the total project cost for scientific research topics; ownership rights, usage rights of technology; rights over plant varieties and animal breeds; technical equipment, technical documents, intellectual property information; sample products for analysis and decoding technology according to signed contracts; searching for technology information, technological secrets; hiring domestic and foreign consulting experts.

2. Funding for the implementation of experimental production projects in accordance with Circular No. 22/2011/TTLT-BTC-BKHCN dated February 21, 2011, issued by the Ministry of Finance and the Ministry of Science and Technology on guiding financial management for experimental production projects supported by the state budget.

3. Funding up to 50% of labor costs for scientific staff and technical personnel directly implementing the content of building computer software; testing, analyzing, inspecting, evaluating product quality until the completion of the first batch of products.

4. Funding up to 30% of the cost of purchasing materials, raw materials, fuel, testing and analytical equipment during the trial production process of the first batch of products from the production line. For agricultural projects implemented in areas with difficult socio-economic conditions as stipulated in Decision No. 30/2007/QĐ-TTg dated March 5, 2007, of the Prime Minister on issuing the list of administrative organizations in difficult regions and any subsequent amendments and supplements (if any), funding can be up to 70% of the cost. of the Government regarding the issuance of the list of administrative organizations in difficult regions and any subsequent amendments and supplements (if any).

5. Funding up to 30% of the total cost of technology transfer contracts for contents related to:

a) Inventions, industrial property rights, information, technical secrets;

b) Technical knowledge about transferred technology in the form of technological solutions, technological processes, technical solutions, formulas, technical parameters, technical drawings, technical programs, data information;

c) Rationalization of production, technological innovation;

d) Purchasing and importing specialized machinery and equipment not yet produced domestically for serving technology transfer;

d) Consulting experts, technical support, training

For technology transfer projects serving the protection of human health and disaster prevention and control, and technology transfer projects in the agricultural sector implemented in areas with difficult socio-economic conditions as stipulated in Decision No. 30/2007/QĐ-TTg dated March 5, 2007, of the Prime Minister on issuing the list of administrative organizations in difficult regions and any subsequent amendments and supplements (if any), funding can be up to 70% of the total cost of the technology transfer contract.

6. Funding for experimental production and technology transfer contracts for projects transferring, improving, and innovating technology to produce national products and business enterprises' high-tech research and development projects. The content and level of support are applied in accordance with the provisions of Joint Circular No. 218/2012/TTLT/BTC-BKHCN dated December 20, 2012, and Joint Circular No. 219/2012/TTLT/BTC-BKHCN dated December 20, 2012, issued by the Ministry of Finance and the Ministry of Science and Technology on financial management for the National Program to Develop National Products until 2020 and the National High-Tech Development Program until 2020.

7. Funding for science and technology tasks of organizations and individuals related to standards and intellectual property. The content and level of support are applied in accordance with the provisions of Joint Circular No. 130/TTLT-BTC-BKHCN dated September 16, 2011, issued by the Ministry of Finance and the Ministry of Science and Technology on financial management regulations for tasks under the National Program "Improving Productivity and Quality of Goods and Products of Vietnamese Enterprises until 2020" and Circular No. 112/2011/TTLT-BTC-BKHCN dated August 12, 2011, issued by the Ministry of Finance and the Ministry of Science and Technology on guiding financial management for the Intellectual Property Development Support Program for the period 2011-2015.

Article 8. Project funding for technology incubation

1. For technology incubation projects, the Fund shall provide support for the contents as prescribed in Clause 1, Clause 5, and Clause 7 of Article 7 of this Circular.

2. The maximum funding shall be 100% of the total expenses for hiring consulting experts, training project management staff, technology management, technology governance, market strategy, renting premises, and communication information within a maximum period of three years.

Article 9. Funding for research topics to establish pre-feasibility studies, feasibility studies for organizations, businesses, and individuals; research topics on searching, decoding technology, exploiting inventions, and technical improvements for the development of new technologies and advanced technologies

The Fund shall provide maximum funding of 100% of the costs for implementing research topics to establish pre-feasibility studies and feasibility studies for organizations, businesses, and individuals; research topics on searching, decoding technology, exploiting inventions, and technical improvements for the development of new technologies and advanced technologies.

Article 10. Funding for projects to expand, disseminate, introduce, and transfer applications of scientific and technological progress serving agricultural, forestry, and fishery development in rural and mountainous areas

1. Maximum funding of 100% of the total expenses for searching, identifying, evaluating initiatives, technical improvements, and scientific and technological progress serving agricultural, forestry, and fishery development in rural and mountainous areas; researching and perfecting initiatives, technical improvements, and scientific and technological progress; building and evaluating models; activities for preparing pre-feasibility and feasibility study reports; hiring experts and organizing short-term and on-site training in applying initiatives, technical improvements, and scientific and technological progress.

2. Other funding shall apply Circular No. 101/2011/TTLT/BTC-BKHCN dated July 8, 2011, guiding financial management for the Program to support the application and transfer of scientific and technological progress serving economic and social development in rural and mountainous areas.

Article 11. Funding for projects to train scientific and technological human resources for the transfer and application of technology for businesses

1. For organizing short-term courses on transferring and applying high-tech, new, and advanced technologies for multiple businesses:

a) Maximum funding of 100% for hiring consulting experts to develop curricula, purchasing curricula, costs for compiling curricula, software, renting or purchasing training equipment (in cases where rental is not possible), hiring experts to train instructors, and costs for training instructors for short-term courses on transferring and applying technology for businesses.

b) Funding of 50% of the costs for training participants in short-term courses on transferring and applying technology for businesses. For businesses operating in agriculture and rural development in areas with difficult socio-economic conditions according to Decision No. 30/2007/QD-TTg dated March 5, 2007 of the Prime Minister on issuing the list of administrative organizations in difficult regions and any subsequent amendments and supplements, businesses operating in the field of protecting human health, disaster prevention, and disease control shall be supported up to a maximum of 70%.The Prime Minister on issuing the list of administrative organizations located in difficult regions and, if any, amended and supplemented consolidated documents for enterprises operating in the field of protecting human health, disaster prevention and control, disease prevention and control, which shall be supported up to a maximum of 70%.

2. For training and upgrading knowledge on transferring and applying specific technologies for businesses:

a) Maximum funding of 50% of the total expenses for hiring training experts, accommodation and travel costs, renting training equipment, and curriculum preparation costs. For businesses operating in agriculture and rural development in areas with difficult socio-economic conditions according to Decision No. 30/2007/QD-TTg dated March 5, 2007 of the Prime Minister on issuing the list of administrative organizations in difficult regions and any subsequent amendments and supplements, businesses operating in the field of protecting human health, disaster prevention, and disease control shall be supported up to a maximum of 70%.

b) Maximum funding of 50% of the costs for training participants in short-term courses. For businesses operating in agriculture and rural development in areas with difficult socio-economic conditions according to Decision No. 30/2007/QD-TTg dated March 5, 2007 of the Prime Minister on issuing the list of administrative organizations in difficult regions and any subsequent amendments and supplements, businesses operating in the field of protecting human health, disaster prevention, and disease control shall be supported up to a maximum of 70%.

Article 12. Management and planning of funding

1. Based on the regulations of the Ministry of Science and Technology, the Ministry of Finance, the Fund's management body organizes scientific and technological councils and independent consulting experts to select scientific and technological tasks to be funded and submit to the Fund Management Council for decisions on funding levels, recovery rates for each specific scientific and technological task.

2. During implementation, the Fund Management Council has the authority to adjust funding levels and support to align with actual circumstances and ensure the effectiveness of scientific and technological tasks and must bear responsibility for their decisions.

3. Funding must be implemented according to the intended recipients, funding must be used for its intended purpose, and disbursement must follow the progress of the scientific and technological task.

4. Annually, based on the capital plan and funding needs of the recipients, the Fund's management body prepares a funding plan for the recipients in accordance with regulations. The annual funding plan must be approved by the Fund Management Council and reported to the Ministry of Science and Technology as prescribed.

Chapter IV

PROVISIONS ON FINANCIAL MANAGEMENT FOR THE OPERATIONS

OF THE FUND'S MANAGEMENT

Article 13. Sources of operating funds for the Fund's administrative machinery

The sources of funds for the activities of the Fund's administrative machinery include:

1. State budget capital provided for use in the form of Fund capital support.

2. Interest from the Fund's lending activities and interest from deposits.

3. Income from other business operations:

a) Activities collaborating with foreign organizations and individuals, international organizations regarding issues related to the Fund's operations;

b) Liquidation and sale proceeds of Fund assets (after deducting residual value and liquidation and sale expenses);

c) Differences arising from revaluation of collateral assets when the project's principal entity cannot repay the debt;

d) Assets formed from non-budgetary capital and other capital of the Fund;

đ) Recovery of debts previously written off but now recovered;

e) Other lawful income.

Article 14. Contents of expenditure for the Fund's operations

1. Expenditure for the operations of the Fund Management Council:

a) Expenditure for organizing regular and extraordinary meetings of the Fund Management Council;

b) Expenditure for organizing inspection and supervision teams, interim and final evaluations of the Fund's operations; expenditure for identifying and determining the Fund's business tasks;

c) Monthly remuneration for members of the Fund Management Council;

d) Communication and office supplies expenses; rental expenses for equipment serving work and travel expenses;

đ) Outbound and inbound delegation expenses;

e) Other expenditures.

2. Expenditure for the Supervisory Board:

a) Expenditure for organizing regular and extraordinary meetings of the Supervisory Board;

b) Remuneration for the responsibilities of the Supervisory Board;

c) Communication and office supplies expenses; rental expenses for equipment serving work and travel expenses;

d) Other expenditures.

3. Expenditure for the Fund's operations:

a) Salaries, wages, and allowances for Fund staff;

b) Expenditure for identifying, selecting, and appraising funding tasks and loan and guarantee tasks; independent auditing, monitoring, evaluation, acceptance, and liquidation of tasks;

c) Travel, conference, and scientific seminar expenses both domestically and internationally; organizing interim and final evaluations of the Fund's operations; compiling and printing specialized books and documents of the Fund;

d) Expenditure for organizing scientific councils and activities of independent consultants for identifying, selecting, and appraising tasks and projects of the Fund;

đ) Expenditure for purchasing materials, information dissemination, promotion, building and maintaining websites serving the Fund's activities;

e) Expenditure for promoting, disseminating, and popularizing experiences of exemplary organizations, businesses, and individuals implementing the Fund's scientific and technological tasks;

g) Expenditure for building databases of technology experts, technology demand and supply, patents supporting the Fund's scientific and technological tasks, serving enterprise technological innovation;

h) Rental expenses for office space (if any), electricity, water, communication, and office supplies for the Fund's operations;

i) Fuel and vehicle rental expenses;

k) Purchase and repair expenses for facilities and equipment;

l) Outbound and inbound delegation expenses;

m) Loan recovery and interest expenses from Fund capital;

n) Other expenditures.

4. Expenditure limits

a) Monthly remuneration limits for Fund Management Council members:

- Chairman: 5,000,000 VND/month;

- Vice-Chairman: 4,500,000 VND/month;

- Member: 4,000,000 VND/month.

b) Responsibility remuneration limits for the Supervisory Board:

- Chairperson: 1,000,000 VND/month;

- Member: 800,000 VND/month.

c) Salaries and allowances for Fund staff and collaborators of the Fund's management body are implemented as follows:

Fund staff enjoy salaries, bonuses, welfare benefits, and other entitlements as prescribed for public service units under Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government on self-management, self-responsibility for task execution, organizational structure, staffing, and finance for public service units.

When the Fund implements financial management mechanisms related to credit activities such as preferential loans, interest rate subsidies, and guarantees for borrowing, the Ministries of Finance and Science and Technology will consider, study, and unify guidelines for salary, bonus, welfare, and other entitlements for Fund staff as prescribed in Article 16 of the Fund Charter issued together with Decision No. 1051/QĐ-TTg dated July 3, 2013 of the Prime Minister on the issuance of the Charter on the organization and operation of the National Science and Technology Innovation Fund.The Prime Minister on promulgating the Charter on the organization and operation of the National Science and Technology Innovation Fund.

d) The remaining expenditure items stipulated in Article 14 of this Circular shall be applied according to current regulations on state budget expenditure. For certain expenditure items where expenditure limits have not been established in current regulations, based on actual implementation, the Fund Management Council will propose, and the Ministries of Finance and Science and Technology will examine and unify decisions.

Article 15. Financial System of the Fund

1. The Fund shall be guaranteed regular operating funds from the state budget as for public service units in accordance with current regulations. In the first three years, when the income from interest on loans and other lawful sources of the Fund have not yet been available to cover its operational costs, the Fund Director shall prepare a budget proposal to be decided by the Minister of Science and Technology after reaching consensus with the Ministry of Finance.

2. The Fund shall independently manage its regular operating expenses according to the self-management plan approved by the Ministry of Science and Technology, including:

a) Salaries, salary-like allowances, and administrative operations;

b) Additional administrative expenses from financial activity revenues;

c) Expenses for the Fund Management Board and Supervisory Board;

d) Costs for searching, selecting, evaluating, appraising, inspecting, and accepting;

đ) Expenses for information disclosure, promotion, and advertising of the Fund's activities, purchasing and translating documents, renting internet connections, and collecting information.

3. Based on the annual financial plan approved by the Ministry of Science and Technology and the lawful revenues of the Fund, the Fund shall apply the current regulations on staffing and finance autonomy.

4. The Fund Director is responsible for establishing internal expenditure rules and standards consistent with national regulations, submitting them to the Fund Management Board for approval as a basis for implementation, deciding on expenditures, and bearing responsibility under the law. The Fund must submit its internal expenditure rules to the superior management agency for monitoring and control, and simultaneously send them to the State Treasury branch where transactions are conducted for expenditure control in accordance with regulations.

Article 16. Management and Use of Assets

The purchase, management, and use of state assets at the Fund shall be carried out in accordance with the Law on Management and Use of State Assets and guiding documents applicable thereto.

Article 17. Distribution of Income and Use of Funds

1. Distribution of Financial Income Surplus of the Fund each year shall be distributed as follows:

a) Allocate 25% to the Development Fund for Public Service Activities;

b) Pay additional income to employees, allocate to the Reward Fund, Welfare Fund, and Income Stability Reserve Fund, in accordance with the provisions for public service units under Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government on the rights to self-management and self-responsibility for implementing tasks, organizational structure, staffing, and finance for public service units.

c) The remaining amount after setting up the above funds will be supplemented to the Development Fund for Public Service Activities.

2. Purpose of Using Funds

a) The Development Fund for Public Service Activities shall be used for investment, procurement of assets, technological innovation, equipment, working conditions, and other contents as prescribed.

b) The Reward Fund shall be used for rewarding individuals and groups within and outside the Fund who have made contributions to the Fund.

c) The Income Stability Reserve Fund shall be used to ensure income for employees.

d) The Welfare Fund shall be used for investing and contributing capital to build and repair welfare facilities of the Fund, funding sports, cultural, and public welfare activities for the staff of the Fund; providing regular and emergency hardship assistance to Fund staff; contributing to the Social Welfare Fund, and funding other welfare activities.

3. The Fund Director shall cooperate with the Fund Trade Union Executive Committee to manage and use the aforementioned reward and welfare funds.

Chapter V

ACCOUNTING, STATISTICAL REPORTING, AND SETTLEMENT WORK

Article 18. Statistical, accounting, and settlement work

1. The Fund shall carry out statistical work in accordance with the provisions of the Statistics Law and guiding documents for the implementation of the Statistics Law.

2. The Fund shall carry out accounting work in accordance with the Accounting Law and guiding documents for its implementation. The fiscal year of the Fund begins on January 1 and ends on December 31 of each Gregorian calendar year.

3. Annually, the Fund shall prepare and submit financial reports to the Ministry of Science and Technology and the Ministry of Finance. The Ministry of Science and Technology shall review and approve the Fund's settlement according to current regulations and consolidate it into the annual settlement report of the Ministry of Science and Technology to be submitted to the Ministry of Finance.

Article 19. Financial Inspection

1. Annually, the Fund shall conduct self-inspection of financial accounting in accordance with the "Regulations on Self-Inspection of Financial Accounting at Agencies and Units Using State Budget" issued by Decision No. 67/2004/QD-BTC dated August 13, 2004 of the Minister of Finance.

2. The Fund shall disclose its finances in accordance with the law and be subject to financial inspection by the Ministry of Science and Technology, the Ministry of Finance, and the State Audit Office in accordance with current laws.

3. Annual financial reports of the Fund must be audited by an independent auditing organization. Annually, the Chairman of the Supervisory Board of the Fund shall present to the Management Board of the Fund a plan for auditing the Fund’s financial reports.

Chapter VI

IMPLEMENTATION

Article 20. Effective Date

1. This Circular takes effect from October 10, 2014.

2. In cases where the legal regulatory documents cited in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement documents.

3. During the implementation process, if there are any difficulties, organizations and individuals shall reflect and report them to the Ministry of Science and Technology so that the Ministry of Science and Technology and the Ministry of Finance can coordinate to study and resolve them.