JOINT CIRCULAR No. 25/2003/TTLT-BKHCN-BTC Supplementing Certain Provisions of Joint Circular No. 2341/2000/TTLT-BKHCNMT-BTC dated November 28, 2000 on Implementing Decree No. 119/1999/NĐ-CP dated September 18, 1999 of the Government on Policies and Financial Mechanisms to Encourage Enterprises to Invest in Scientific and Technological Activities

JOINT CIRCULAR

Regarding the supplementation of certain provisions in Circular Joint 2341/2000/TTLT-BKHCNMT-BTC dated November 28, 2000, "Guidelines for Implementing Decree 119/1999/NĐ-CP dated September 18, 1999 of the Government on Certain Policies and Financial Mechanisms to Encourage Enterprises to Invest in Scientific and Technological Activities"

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Pursuant to Decree No. 119/1999/NĐ-CP dated September 18, 1999 of the Government on certain policies and financial mechanisms to encourage enterprises to invest in scientific and technological activities, the then Ministry of Science, Technology, and Environment (now the Ministry of Science and Technology) and the Ministry of Finance issued Circular Joint No. 2341/2000/TTLT-BKHCNMT-BTC dated November 28, 2000, to provide guidelines for implementation.

To unify financial management work regarding funding support for research and development expenses for enterprises implementing research projects that create new technologies in priority industries and fields as stipulated in Clause 2, Article 8 of Decree No. 119/1999/NĐ-CP, the Ministry of Science and Technology and the Ministry of Finance hereby supplement the following guidance:

I- EXPENSES:

1- State budget funds supporting enterprises to implement research projects that create new technologies shall be allocated for the following purposes:

- Expenses for scientific research activities.

- Purchase of technical literature and technology secrets for research.

- Analysis of samples and evaluation of product quality indicators.

- Purchase of essential materials and raw materials for research.

- Purchase or rental of equipment directly serving research.

- International cooperation expenses directly serving the research content.

- Expenses for project acceptance and evaluation of research results.

- Other expenses directly serving research activities.

2- In cases where a single task uses two sources of funds (state budget support and enterprise capital), each source's expenses must be clearly recorded in the accounting vouchers and books of the entity.

3- State budget support funds shall not be used for depreciation of fixed assets, maintenance and construction of facilities, or management expenses of the project.

II- ESTABLISHMENT, DECISION, AND ALLOCATION OF STATE BUDGET PROJECTIONS:

1- Each year, based on the need for research funding support from enterprises to implement projects included in the list of encouraged projects selected through the Appraisal Council (including ongoing and new projects), the Ministry of Science and Technology will prepare a budget projection and propose a funding allocation plan for each enterprise to send to the Ministry of Finance for consolidation and submission to the competent authority for decision-making according to the procedures, contents, timeframes, and formats prescribed by the State Budget Law.

2- Based on the budget projections and funding allocation plans for research support for enterprises in the planning year, which have been decided by the competent authority, the Ministry of Finance will allocate the total amount of research support funds to the Ministry of Science and Technology, detailing the amounts for each enterprise.

III- IMPLEMENTATION OF THE STATE BUDGET:

1- On the basis of the allocated total amount and the support funds for each enterprise, the Ministry of Science and Technology will sign science and technology contracts with each enterprise (for new projects to be implemented in the year).

2- Based on the state support funds, the research content according to the signed science and technology contract with the Ministry of Science and Technology, and the progress of the project implementation, the enterprise will prepare a budget to send to the Ministry of Finance according to the expenditure items and sub-items: Personal payment expenses, professional activity expenses, procurement and repair expenses, other expenses; simultaneously sending to the Ministry of Science and Technology for monitoring and management. The Ministry of Finance will review and inspect; if the conditions for payment are met as prescribed, it will proceed with direct payment to the enterprises in the form of payment orders, according to Chapter-Type-Article-Sub-item as follows:

- Chapter: Corresponding to each enterprise.

- Type: 11 "Scientific Research Activities".

- Article: 01 "Basic, Application, and Development of Natural Sciences Research".

- Sub-item: Corresponding to the expenditure items.

For the year 2003: Enterprises will prepare budgets according to the expenditure items and sub-items as currently prescribed and send them to the Ministry of Finance as the basis for issuing funds in the form of payment orders, simultaneously sending to the Ministry of Science and Technology for monitoring and management.

3- To continue providing funds for research projects of enterprises that have been ongoing for two years or more, from subsequent years, enterprises must submit the following documents to the Ministry of Science and Technology and the Ministry of Finance:

- Report on the implementation status and achievements according to the model (Annex 3 - Periodic Report on Implementation Status of Scientific Research Projects) stipulated in Circular Joint No. 2341/2000/TTLT-BKHCNMT-BTC dated November 28, 2000, of the Ministry of Science, Technology, and Environment - Ministry of Finance.

- Report on the use of funds or final settlement report of the previous year (if the deadline for final settlement has arrived), including both state budget funds and enterprise funds participating in the project.

- Inspection record of the previous year's implementation status by state management agencies.

- Letter requesting continued funding.

IV- INSPECTION AND SETTLEMENT WORK:

1- For enterprises:

Enterprises receiving state fund support must organize accounting in accordance with current state regulations. Project implementation expenses must be recorded specifically and clearly. The enterprise director and project leader are responsible for using state support funds for their intended purpose, in accordance with regulations, and for truthful and accurate settlement and payment of funds. If an enterprise misuses state budget funds, fails to ensure sufficient capital as committed in the contract, the Ministry of Science and Technology and the Ministry of Finance will stop funding and recover previously provided support funds.

Enterprises are responsible for submitting annual settlement reports to the Ministry of Science and Technology and the Ministry of Finance, including:

- Summary of total funds expended on the project (enterprise capital, state budget funds).

- Report on the total and detailed budgetary state funds supporting enterprises for scientific research (the settlement report form to be implemented according to Decision No. 999 TC/QĐ/CĐKT dated November 2, 1996 of the Minister of Finance), with detailed explanations according to the content of expenses and the state budget classification.

2- For management agencies:

- The Ministry of Science and Technology shall coordinate with relevant agencies to inspect the implementation of projects in terms of content and progress of research, the use of state budget funds allocated, and the mobilization of enterprise capital as committed in the contract; review and approve annual settlement (state budget funds allocated) of enterprises, compile and submit to the Ministry of Finance for annual settlement, including: Report on the total funds already spent on the project (enterprise capital, allocated state budget funds), comprehensive and detailed report on state budget funds supporting enterprises for scientific research, with explanations and analysis of the effectiveness of using state budget support funds, clearly stating achievements and issues needing resolution.

- The Ministry of Finance is responsible for reviewing and providing comments on the annual settlement of state budget funds supporting enterprises for scientific research to the Ministry of Science and Technology.

V- IMPLEMENTATION PROVISIONS:

This Circular takes effect fifteen days from the date of publication in the Official Gazette. Any difficulties encountered during implementation should be reported to the Ministry of Finance and the Ministry of Science and Technology for consideration and resolution.