Joint Circular No. 207/2013/TTLT-BTC-BKHCN on the financial management of national key science and technology programs for the 2011-2015 period

JOINT CIRCULAR

Rules on financial management of national key science and technology programs for the period 2011-2015

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

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of 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. 1244/QĐ-TTg dated July 25, 2011 of the Prime Minister approving the orientation, objectives, and main tasks of science and technology for the period 2011-2015;

The Minister of Finance and the Minister of Science and Technology issue this Circular to regulate financial management of national key science and technology programs for the period 2011-2015.

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

This Circular regulates financial management of national key science and technology programs for the period 2011-2015 (hereinafter referred to as Programs) approved by the Minister of Science and Technology according to the orientation, objectives, and main tasks of science and technology as stipulated in Decision No. 1244/QĐ-TTg dated July 25, 2011 of the Prime Minister on approving the orientation, objectives, and main tasks of science and technology for the period 2011-2015.

Article 2. Funding for implementing the Programs

1. Funding for implementing the Programs includes funding for implementing research topics and projects and funding for common activities of the Programs approved by the competent authority.

2. Sources of funding for implementing the Programs include state budget funds allocated annually for scientific and technological affairs and other lawful sources of funding.

Article 3. General principles for managing and using funding for implementing the Programs

1. Funding for implementing the Programs must be managed and used for their intended purposes, in accordance with regulations, effectively, and settled according to the provisions of the Law on State Budget, current financial management regulations, and specific provisions of this Circular.

2. The Ministry of Science and Technology is responsible for guiding the National Key Program Office (hereinafter referred to as the Programs Office) and organizations and individuals participating in implementing the Programs to use and manage funding for their intended purposes, in accordance with regulations, effectively, and ensure that settlement of funding provided is in compliance with current laws.

Chapter II

SPECIFIC PROVISIONS

Article 4. Contents of state budget expenditure for the Programs

1. Contents of expenditure for implementing research topics and projects under the Programs

Expenditure for implementing research topics and projects under the Programs shall be carried out in accordance with current regulations applicable to research topics and projects in science and technology funded by the state budget.

2. Contents of expenditure for common activities of the Programs include:

a) Expenditure for management work:

- Expenditure for consulting activities to determine tasks, selection, direct assignment, review, mid-term evaluation (if any), final acceptance evaluation of research topics and projects under the Programs; program summary (including remuneration for comments and evaluations by members of the Council, Expert Group reviewers, fees for hiring appraisals, testing results of research topics and projects (if necessary));

- Travel expenses for Council members;

- Rental fees for meeting rooms and other expenses directly serving the activities of the Council;

- Survey and investigation expenses serving the construction and approval of important research topics and projects of the Programs as decided by the Ministry of Science and Technology.

b) Expenditure for the Program Steering Committee's activities:

- Remuneration for members of the Program Steering Committee and administrative secretaries of the Program;

- Vehicle rental fees for professional work;

- Professional business expenses;

- Review and inspection expenses for research topics and projects;

- Travel expenses, scientific conferences, organizing interim and final summary meetings of the Programs;

- Purchase and minor repair expenses for equipment and assets serving professional work;

- Outbound and inbound travel expenses;

- House rent, electricity, water, communication, office supplies expenses;

- Other expenses related to the Program Steering Committee's activities.

c) Expenditure for the Programs Office's activities:

- Salaries, remuneration, and other expenses based on salaries for staff of the Programs Office;

- Inspection expenses for research topics and projects;

- Travel expenses, organizing scientific conferences, interim and evaluation meetings, final summary meetings of the Programs, compiling and printing specialized books, results of the Programs;

- Expenses for information dissemination and promotion of achievements and products of research topics and projects after acceptance under the Programs;

- House rent, electricity, water, communication, office supplies expenses;

- Fuel and vehicle rental expenses for professional work;

- Professional business expenses;

- Purchase and minor repair expenses for equipment and assets serving professional work;

- Outbound and inbound travel expenses;

- Other expenses related to the Programs Office's activities.

Article 5. Funding Levels

1. Remuneration levels for the Program Steering Committee and Program Secretaries:

a) Program Director: VND 5,000,000 per month;

b) Deputy Directors, Members兼任秘书的科学项目委员会：每月450万越南盾；

c) 科学项目委员会成员：每月400万越南盾。

d) 项目的行政秘书：每月400万越南盾。

2. The remaining contents of expenditure specified in Article 4 of this Circular shall be implemented in accordance with current regulations on expenditure standards and quotas for state budget funds.

Article 6. The work of preparing budgets, allocating, and transferring state budget estimates for implementing Programs

The preparation of budgets, allocation, and transfer of state budget estimates from the operating funds for science and technology activities for the Programs shall be carried out in accordance with the provisions of the State Budget Law, current guiding documents, and the following specific guidelines:

1. Annually, at the time of preparing the state budget estimate, based on the Decision approving the organizations and individuals in charge and the funding for implementing projects and topics of the Programs, based on the Research and Technology Development Contract for implementing projects and topics (hereinafter referred to as the Contract) signed between the Program Steering Committee, the Program Office, and the organization in charge and the project and topic leader, based on the common operational needs of the Programs and the current expenditure standards, the Program Office shall prepare the state budget estimate for the Programs according to the contents stipulated in Article 4 of this Circular, submit it for consideration and consolidation into the annual state budget expenditure estimate of the Ministry of Science and Technology, and send it to the Ministry of Finance simultaneously with the central government's annual state budget expenditure estimate preparation period as prescribed by the State Budget Law and relevant financial regulations.

2. Based on the approved state budget estimates of the Programs, the Ministry of Finance shall allocate the state budget estimates of the Programs to the Ministry of Science and Technology.

3. The Program Office shall prepare detailed budget estimates for each project and topic within the Programs and for the common operations of the Programs in accordance with current regulations, and submit them to the Ministry of Science and Technology for consolidation into the budget allocation plan for units using the budget, which will then be sent to the Ministry of Finance for review.

4. On the basis of the reviewed state budget allocation plan, the Ministry of Science and Technology shall issue a decision to transfer the state budget estimates to the Program Office, and send copies to the Ministry of Finance and the State Treasury for coordination in implementation.

Article 7. Disbursement of funds from the state budget for projects and topics under the Programs

1. Opening accounts, receiving funds, and controlling expenditures

a) The Program Office shall open a budget account at the State Treasury to receive state budget funds and pay the funds for implementing projects and topics under the Programs of the organization in charge of the projects and topics and the common operational funds of the Programs. Based on the allocated budget estimate, the Program Office shall make payments to the organization in charge of the projects and topics according to the signed contracts.

The Program Office shall be responsible for controlling expenditures and bear legal responsibility for the legality, validity, documentation, and vouchers of the expenditures of the organization in charge of the projects and topics; and carry out settlement with the State Treasury where transactions take place in accordance with current regulations.

b) The organization in charge of the projects and topics shall open a separate deposit account at the State Treasury where transactions take place or at a commercial bank (in cases where the organization in charge of the projects and topics is a business entity) to receive funds for implementing the projects and topics according to the signed contracts with the Program Office.

The organization in charge of the projects and topics must establish internal expenditure rules for the projects and topics to ensure transparency and accountability for their own expenditure decisions. The Program Office shall be responsible for guiding the organizations in charge of the projects and topics in establishing internal expenditure rules; inspecting and supervising the use of funds for implementing the projects and topics; and settling the funds for implementing the projects and topics.

c) The State Treasury shall implement control according to the terms agreed upon in the contracts signed between the Program Office and the organization in charge of the projects and topics. The State Treasury shall not control the deposit accounts opened by the organization in charge of the projects and topics at the State Treasury; nor shall it control the detailed expenditure vouchers of the organization in charge of the projects and topics. The organization in charge of the projects and topics shall be responsible for its own expenditure decisions and shall settle the funds with the Program Office. The Program Office shall be responsible for checking the expenditures of the organization in charge of the projects and topics in accordance with current systems, standards, and norms.

d) For expenditures related to the common activities of the Programs at the Program Office from the budget account

The State Treasury shall implement expenditure control in accordance with Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Ministry of Finance on the system of controlling and settling state budget expenditures through the State Treasury.

1. Advance payment of funds for projects and topics under the Programs

a) First Advance Payment:

Based on the signed Contracts and the allocated state budget estimates, the Program Office shall withdraw the budget estimate to make the first advance payment of up to 100% of the allocated funding according to the annual plan budget estimate that has been assigned, but not exceeding 50% of the total approved funding from the state budget according to the signed Contracts with the organization in charge of the projects and topics. The initial advance payment application documents submitted to the State Treasury include: the authorized budget estimate; the withdrawal of the state budget estimate (advance payment) as prescribed; and the signed Contract for implementing the projects and topics between the Program Steering Committee, the Program Office, and the organization in charge and the project and topic leader.

b) Subsequent Advance Payments:

The advance funding for subsequent phases shall only be implemented for topics and projects that have submitted payment settlement files for at least 50% of the previously advanced funding amounts, without violating current state regulations related to the organization and implementation of topics and projects, and ensuring that the total outstanding advance does not exceed 50% of the total approved budget from the state treasury according to the signed contract (except in cases where equipment procurement procedures are incomplete due to objective reasons, confirmed by the Office of Programs based on the proposal of the project's leading organization). The advance funding files for subsequent phases sent to the State Treasury include: the annual state budget estimate; the state budget advance withdrawal form; the payment settlement file for at least 50% of the previously advanced funding amounts that have not yet been settled.

3. Advance Payment Settlement:

a) When making advance payments, the Office of Programs sends the advance payment settlement file to the State Treasury where the transaction takes place. The advance payment settlement file includes: the Office of Programs' advance payment request form; the quantity of work completed confirmation form by the Program Management Board; the expenditure detail sheet for completed work items prepared by the leading agency and confirmed by the Office of Programs.

b) Upon completion of the topic or project implementation period, the Office of Programs must settle the advance payment at the State Treasury. If within six months from the end date of the topic or project implementation period, the Office of Programs fails to settle the advance payment with the State Treasury, the Ministry of Finance will recover it by reducing the next year's budget allocation of the Ministry of Science and Technology.

4. Issuance of Actual Expenditure Payments:

Actual expenditure payments for topics and projects shall be issued when all of the following conditions are met:

a) The topic or project has been approved by the competent authority and allocated a budget for implementation;

b) The topic or project has completed the required workload and products, and has been accepted at the basic level with a "Pass" rating;

c) The Program Management Board has confirmed the completed workload and products of the topic or project;

d) All necessary settlement documents and vouchers are available as prescribed.

Article 8. Regarding the Common Operating Costs of Programs

The common operating costs of programs are directly managed by the Office of Programs and expended in accordance with current regulations applicable to third-level budget units using state funds.

Article 9. Regarding Procurement, Management, Use, and Disposal of Assets for Topics and Projects under Programs

1. Procurement, management, use, and disposal of assets for topics and projects under programs funded by the state budget shall be carried out in accordance with current regulations governing state asset management and utilization.

2. The Ministry of Science and Technology is responsible for approving tender plans for goods and assets procurement; reviewing and approving tender results in accordance with current state regulations. The organization of tender review, tendering, approval of tender results, negotiation, and signing of purchase contracts, and contract termination for asset sales shall be conducted in accordance with current tender procurement regulations.

Article 10. Regarding the purchase of raw materials, fuels, and services for research work:

1. The purchase of raw materials, fuels, and services for research work shall be carried out in accordance with current regulations, except as provided for in Clause 2 of this Article.

2. The purchase of raw materials through direct collection from farmers and fishers, including fresh live materials, organic fertilizers, and seedlings collected from nature, to serve research purposes, organizations responsible for projects and programs may independently decide on procurement activities that are appropriate, effective, and bear full responsibility for their decisions, ensuring that each transaction does not exceed VND 20,000,000, while simultaneously complying with all invoice and documentation requirements as stipulated by law.

Article 11. Inspection and handling of violations

1. Annually, the Ministry of Science and Technology and the Ministry of Finance shall conduct regular or surprise inspections of the implementation, management, utilization, and settlement of funds for projects and programs under the Programs.

2. In cases where the leading organization of a project or program misuses state budget funds for purposes other than those intended or fails to comply with established regulations, the disbursement of state budget funds shall be suspended and appropriate measures taken according to current regulations.

Article 12. Final Settlement Reports

The work of reporting and settling expenses from the state budget shall be carried out in accordance with current regulations and the following specific guidelines:

1. Final settlement reports on the implementation of projects and programs

a) For ongoing projects and programs

Each year, based on the actual amount of funds used and the volume of work completed during the year, the Program Office shall report to the Ministry of Science and Technology and submit to the Ministry of Finance on the receipt, use, and implementation of funds for projects and programs.

b) For concluded projects and programs

- Within six months from the date of conclusion of the project or program as decided by the competent authority, the Program Office shall review and settle the final accounts for the projects and programs and incorporate them into the final settlement report of the Program Office to be submitted to the Ministry of Science and Technology.

- The Ministry of Science and Technology shall verify and approve the final accounts of the Program Office, consolidate them into the overall final settlement report of the Ministry of Science and Technology, and submit it to the Ministry of Finance for verification in accordance with regulations.

- Financial expenditure documents and vouchers of projects and programs under the Programs shall be prepared, managed, and stored at the leading organization of the projects and programs in compliance with regulations.

2. Final settlement reports on the common activities of the Programs

a) Annually, the Program Office shall prepare and submit final settlement reports for approval in accordance with the regulations applicable to third-level budget units.

b) Financial expenditure documents and vouchers for the common activities of the Programs shall be managed and retained in compliance with regulations.

Chapter III

IMPLEMENTING PROVISIONS

Article 13. Effective Date

This Circular takes effect from February 10, 2014. Circular Jointly Issued No. 29/2007/TTLT-BTC-BKHCN dated April 3, 2007, jointly issued by the Ministry of Finance and the Ministry of Science and Technology, guiding financial management of national key science and technology programs for the period 2006-2010, shall cease to be effective from the date this Circular takes effect.

Article 14. Implementation Organization

The Ministry of Finance shall take the lead in coordinating with the Ministry of Science and Technology to guide and implement this Circular.

Any difficulties or issues encountered during the process should be reported to the Ministry of Finance and the Ministry of Science and Technology for study and resolution./.