Circular No. 21/2010/TT-BTTTT stipulates on the preparation of outlines and detailed budgets for information technology application activities funded by state budget but not requiring project establishment.

CIRCULAR

Regulations on the preparation of outlines and detailed budgets for information technology application activities funded by state budget but not requiring project establishment

After receiving comments from the Ministry of Finance, the Ministry of Information and Communications has established regulations on the preparation of outlines and detailed budgets for information technology application activities funded by state budget but not requiring project establishment as follows:

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Pursuant to the Law on Information Technology dated June 29, 2006;

Pursuant to Decree No. 64/2007/NĐ-CP dated April 10, 2007 of the Government on the Application of Information Technology in the Activities of State Agencies;

Pursuant to Decree No. 102/2009/NĐ-CP dated November 6, 2009 of the Government on Management of Investment in Information Technology Applications Using State Budget Funds;

BASED ON THE GOVERNMENT DECREE NO. 187/2007/NĐ-CP OF DECEMBER 25, 2007 ON THE FUNCTIONS, TASKS, POWERS, AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF INFORMATION AND COMMUNICATIONS;

These Circulars apply to organizations and individuals related to information technology application activities funded by state budget but not requiring project establishment.

PART I

GENERAL PROVISIONS

Article 1. Scope of application

1. These Circulars regulate the preparation of outlines and detailed budgets for information technology application activities funded by state budget but not requiring project establishment, applicable to cases of investment in upgrading and expanding existing information technology application capabilities (including new investments in information technology application components within existing systems) with a total capital under VND 3 billion, including:

Article 2. Scope of Application

a) Development and upgrade of internal software;

b) Purchase, upgrade, installation, and setup of information technology equipment (network, hardware, commercial software) aimed at maintaining regular operations with a total value exceeding VND 100 million.

2. Information technology application activities funded by state budget but not requiring project establishment, which fall outside the scope of regulation of this Circular, shall be implemented according to the provisions of Joint Circular No. 43/2008/TTLT-BTC-BTTTT dated May 26, 2008 of the Ministry of Finance and the Ministry of Information and Communications and current regulations.

3. The determination of the scope and scale of information technology application activities for the preparation of outlines and detailed budgets must be based on technical characteristics, implementation procedures, ensuring the synchronization of investment activities.

In cases where the outline and detailed budget are prepared with a total budget under VND 3 billion, but during implementation adjustments lead to changes in the total budget to VND 3 billion or more, the investment procedures must be redone according to the provisions of Government Decree No. 102/2009/NĐ-CP dated November 6, 2009 on management of investment in information technology application using state budget funds (hereinafter referred to as Decree No. 102/2009/NĐ-CP).

The process and procedures for preparing budgets, implementing budgets, and finalizing state budget accounts shall be carried out in accordance with the State Budget Law, guiding documents for the Law, and the provisions in Section III Part II of Joint Circular No. 43/2008/TTLT-BTC-BTTTT dated May 26, 2008 of the Ministry of Finance and the Ministry of Information and Communications guiding the management and use of funds for information technology application in government agency activities (hereinafter referred to as Joint Circular No. 43/2008/TTLT-BTC-BTTTT).

1. Must meet the requirements of the beneficiary unit.

Chapter II

SPECIFIC PROVISIONS

Article 3. Principles for Drafting Outlines and Detailed Budgets

2. Must comply with information technology technical standards and norms applicable to each item of information technology application costs listed in the outline and detailed budget.

3. Must ensure sufficient conditions to determine the volume of budget estimates for information technology application items and must adhere to the principle of non-duplication.

4. The explanatory notes of the outline and detailed budget must clearly explain the contents that cannot be shown in the forms and other contents as required by the beneficiary unit.

5. The budget estimate must be built based on standards, quotas, and unit prices issued by competent state agencies. For items without issued standards, quotas, or unit prices, they should be developed based on technical and operational requirements and conditions, or applied similar quotas and unit prices from other approved projects and tasks, and must have clear explanations of the calculation basis.

5. The budget must be prepared based on standards, norms, and unit prices that have been issued by competent state agencies. For contents without established standards, norms, or unit prices, they shall be developed based on technical requirements, technology, and working conditions, or similar norms and unit prices from other projects or tasks approved by competent authorities, and must include a clear explanation of the calculation basis.

Article 4. Roles, functions, authorities, and responsibilities of relevant agencies and units

1. Unit organizing the outline and detailed budget estimate

The budget-using unit that is assigned tasks and budgets by the competent authority to carry out information technology application activities must prepare the outline and detailed budget estimate in accordance with this Circular. If capable, the budget-using unit may organize the preparation of the outline and detailed budget estimate itself, or it has the right to hire consultants for preparation.

2. Agency reviewing and approving the outline and detailed budget estimate

The agency authorized to approve the outline and detailed budget estimate is the agency directly allocating the budget to the budget-using unit for information technology application activities. In necessary cases, the agency directly allocating the budget may delegate its authority to subordinate units or budget-using units to approve the outline and detailed budget estimate.

The agency authorized to approve the outline and detailed budget estimate may assign, decentralize, or delegate to specialized subordinate units to conduct a preliminary review before approval. The content and procedures for review and approval shall be carried out in accordance with this Circular.

Article 5. Contents of the outline and detailed budget estimate

1. General information:

a) Legal basis;

b) Objectives, requirements, investment needs;

c) Name of the information technology application activity for which the outline and detailed budget estimate is prepared;

d) Budget-using unit;

đ) Implementation location;

e) Organization preparing (or consulting on) the outline and detailed budget estimate;

g) Type of funding source;

h) Anticipated outcomes;

i) Proposals and recommendations: State proposals and recommendations to ensure effective implementation of the contents of the outline after approval.

2. Necessity for investment.

3. Explanation of proposed technical solutions:

a) For developing, upgrading internal software:

- Requirements to note when building software (environment, programming language, software architecture design, data requirements, connection and expansion integration capabilities,...);

- Other related requirements (if necessary);

- Description of technical requirements that need to be met by special equipment, especially internal software; - Description of software functions; - General diagram of usage scenarios.

b) For purchasing, upgrading, installing, and configuring information technology equipment (network, hardware, commercial software):

- Technical criteria and standards applied in procurement, installation, configuration, testing, and calibration of equipment;

- List of purchased, installed, and configured equipment and their technical specifications;

- Explanation of network system design solutions, system network model principles, security and data protection solutions, connectivity, power supply, lightning protection, fire prevention... (with diagrams if available);

- Summary of major construction works quantities (if applicable) of the project;

- Other explanations related (if necessary).

c) Training and technology transfer content related to proposed technical solutions.

4. Detailed budget estimate

Content of the detailed budget estimate as stipulated in Article 6 of this Circular.

5. Anticipated implementation schedule

The investment implementation period shall not exceed two years from the date the outline and detailed budget estimate is approved.

6. Implementation organization plan, operation, and exploitation.

7. Proposals and recommendations.

Article 6. Detailed Budget Estimate

1. Basis for Preparing the Budget Estimate

a) Directives on preparing the budget estimate:

- Joint Circular No. 43/2008/TTLT-BTC-BTTTT;

- Circular guiding the preparation of annual state budget estimates issued by the Ministry of Finance;

- Directives on preparing the budget estimate issued by financial authorities at all levels.

b) Regulations on standard rates - unit prices, expenditure levels:

- Joint Circular No. 43/2008/TTLT-BTC-BTTTT;

- Standard rates and unit prices issued by the Ministry of Information and Communications pursuant to Decree No. 102/2009/NĐ-CP;

- Standard rates, unit prices, average labor wages, machine and construction equipment costs, and materials directly included in costs for information technology application activities using state budget funds, issued by the Ministry of Information and Communications, sector management ministries, and localities before the effective date of Decree No. 102/2009/NĐ-CP (January 1, 2010), applied according to Clause 4, Article 75 of Decree No. 102/2009/NĐ-CP.

c) Price announcements, quotations, or other bases for determining costs.

2. Detailed Budget Estimate:

To be implemented according to the model specified in Appendix I of this Circular, including the following costs:

a) Construction and installation costs: Costs for installing network accessories, wiring for information technology networks, and other related installation costs;

b) Equipment costs:

- Costs for purchasing information technology equipment: Equipment requiring installation and setup, equipment not requiring installation and setup, special software, auxiliary equipment, and peripheral devices;

- Costs for purchasing intangible assets: Commercial software, initial database creation, data entry standardization, and other intangible asset purchases;

- Training and technology transfer costs;

- Installation and setup costs for equipment and software, testing and calibration of equipment and software;

c) Management costs: Including necessary costs for the organization to manage implementation;

d) Consulting costs: Including costs for consulting services and other related consulting work;

đ) Other related costs: Fees and charges; insurance, moving equipment and workforce; auditing; review and approval of final accounts; scientific research and technology-related studies; installation and leasing of transmission lines; domain registration and maintenance fees; and other specific costs;

e) Contingency costs: For unforeseen work volumes when drafting the outline and detailed budget estimate. Contingency costs shall not exceed 10% of the total detailed budget estimate for points a, b, c, d, đ above.

3. Explanation of the Method for Calculating Standard Rates and Detailed Unit Prices for Work Without Established Standard Rates - Unit Prices.

The entity preparing the budget estimate bases its calculations on technical requirements, technology conditions, and working conditions to establish standard rates and unit prices or apply similar standard rates and unit prices from other approved projects and tasks. The explanatory note is prepared according to the model specified in Appendix II of this Circular.

Article 7. Drafting and Submitting the Outline and Detailed Budget Estimate

1. Drafting the Outline and Detailed Budget Estimate:

Annually, based on the assignment documents, work plans, industry development plans, or approval documents from competent authorities, budget-using entities conduct preliminary cost estimates and brief explanations of investment needs for information technology application activities using state budget funds without requiring project preparation, consolidated into the next year's budget estimate according to the guidelines in Section III, Part III of Joint Circular No. 43/2008/TTLT-BTC-BTTTT.

After receiving the budget allocation decision from the competent authority, the budget-using entity implements the preparation of the outline and detailed budget estimate according to Articles 5 and 6 of this Circular, submitting it to the competent authority for approval as the basis for implementation.

2. Approval Submission Documents:

a) The submission package for approval consists of three sets of documents. In cases where additional documents need to be sent to relevant agencies, the approving agency must notify the submitting agency in writing;

b) Documents include:

- The submission letter of the agency or entity regarding the approval of the outline and detailed budget estimate prepared according to the model specified in Appendix III of this Circular;

- The outline and detailed budget estimate (as stipulated in Articles 5 and 6 of this Circular);

- Decision appointing the consultant to prepare the outline and detailed budget estimate (if consulting services are hired);

- Decision allocating the budget from the competent authority (copy).

Article 8. Examination and Approval of the Outline and Detailed Budget Estimate

1. Time for Examining the Outline and Detailed Budget Estimate

a) The maximum time for examining the outline and detailed budget estimate is 10 working days (counted from the date of receipt of complete and valid documents, excluding the time for supplementing and perfecting the documents).

b) In cases where additional information or explanations about the content of the outline and detailed budget estimate are required, the examination authority shall issue a written request to the relevant agencies or units within three working days from the date of receiving the documents. The examination period will be calculated from the date when all valid documents are received.

2. Content of Examination of the Outline and Detailed Budget Estimate

a) Conduct examination on:

- The appropriateness of economic and technical indicators, technical standards and norms applied;

- The rationality of the content of the proposed application of information technology with the existing information technology infrastructure system and the expected effectiveness;

- The accuracy of the quota - unit price and the application of quotas - unit prices, related systems and policies, and cost items according to the regulations of the State related to the costs stated in the detailed budget estimate;

- The consistency between the volume described in the outline and the detailed budget estimate already prepared.

b) The results of the examination are reflected in writing according to the model attached at Appendix IV of this Circular. The examination result document serves as the basis for reviewing and approving the outline and detailed budget estimate. The approval decision for the outline and detailed budget estimate is applied according to the model attached at Appendix V of this Circular;

c) During the examination process, depending on the complexity of each task and the content of the expenditure, the examination authority may seek opinions in writing or organize advisory meetings to obtain opinions from relevant agencies, and seek expert opinions from organizations and individuals with expertise;

If necessary, the examination authority may hire organizations or individuals with sufficient qualifications, experience to provide advisory examination services. The cost of hiring advisory examination services is deducted from the examination fee.

3. Examination Fee

Implemented according to the provisions of the Ministry of Information and Communications and the Ministry of Finance.

4. Time for Approval

Within three working days from the date of obtaining the examination results.

5. Examination and Approval of Adjustments to the Outline and Detailed Budget Estimate

When adjusting the outline and detailed budget estimate without changing the scale, investment objectives, and not exceeding the total approved budget, the implementing agency is permitted to adjust the outline and detailed budget estimate itself. In cases where adjustments to the outline change technical solutions, technology, scale, initial investment objectives, or exceed the total approved budget, the implementing agency must submit the outline and detailed budget estimate for review and decision by the competent authority.

The person deciding on the adjustment of the outline and detailed budget estimate shall bear legal responsibility for their decision.

The procedures, time for submitting for examination and approval of adjustments are carried out like the steps for examining and approving the outline and detailed budget estimate.

Chapter III

IMPLEMENTATION

Article 9. Effective Date

1. This Circular takes effect from October 25, 2010.

2. The Information Technology Application Department of the Ministry of Information and Communications is responsible for promoting and guiding the implementation of the contents of this Circular.

3. During the implementation process, if there are emerging issues or difficulties, relevant individuals and units need to promptly reflect them to the Ministry of Information and Communications for consideration, supplementation, and amendment./.