Joint Circular No. 29/2007/TTLT-BTC-BKHCN guiding financial management for State-level key science and technology programs during the period of 2006-2010.

JOINT CIRCULAR

Guidelines for Financial Management of National Key Science and Technology Programs for the Period 2006-2010

focal point at the state level for the period 2006-2010

__________________________

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 Decision No. 67/2006/QĐ-TTg dated March 21, 2006 of the Prime Minister approving the orientation, objectives, and main tasks of science and technology for the five-year period 2006-2010;

Based on Decision No. 18/2006/QĐ-BKHCN dated September 15, 2006 of the Minister of Science and Technology promulgating the "Regulations on Organizing and Managing Activities of National Key Science and Technology Programs for the Period 2006-2010" and Decision No. 23/2006/QĐ-BKHCN dated November 23, 2006 of the Minister of Science and Technology amending and supplementing certain provisions of the "Regulations on Organizing and Managing Activities of National Key Science and Technology Programs for the Period 2006-2010";

In order to unify financial management for National Key Science and Technology Programs for the Period 2006-2010, the Ministry of Finance and the Ministry of Science and Technology hereby issue the following guidelines:

I. GENERAL PROVISIONS

1. These Circular applies to National Key Science and Technology Programs for the Period 2006-2010 (hereinafter referred to as Programs) approved by the Minister of Science and Technology to implement Decision No. 67/2006/QĐ-TTg dated March 21, 2006 of the Prime Minister "Approving the Orientation, Objectives, and Main Tasks of Science and Technology for the Five-Year Period 2006-2010."

2. The Program implementation funds are allocated from the annual state budget for scientific and technological activities and are approved by the competent authority. The Ministry of Science and Technology is responsible for managing, guiding organizations in charge and project leaders to use funds for their intended purposes, in accordance with regulations, effectively, and ensuring that the settlement of funds provided is in compliance with current regulations.

3. The management and settlement of Program funds shall be carried out in accordance with the State Budget Law, guiding documents of the Law, and specific provisions of this Circular.

4. The expenditure standards and norms for projects within the Programs shall be implemented in accordance with current regulations.

II. SPECIFIC PROVISIONS

1. Contents of state budget expenditures for the Programs:

a) Expenditures for implementing projects under the Programs: Implemented according to current regulations.

b) Common expenditures for the Programs:

- Expenditures for management services:

+ Expenditures for consulting activities to determine tasks, selection, mid-term evaluation (if applicable), national-level acceptance of projects under the Programs; Program acceptance (including remuneration for comments and evaluations by members of the Council, Expert Group, fees for hiring appraisals, testing results of projects (if necessary); expenditures for Council meetings; rental fees for meeting rooms, travel expenses for Council members, other direct expenditures serving the activities of the Council).

+ Expenditures for surveys and investigations to serve the construction and approval of important projects under the Programs as decided by the Ministry of Science and Technology.

- Expenditures for the Program Steering Committee and Program Offices:

+ Expenditures for the salaries of Program Steering Committee members and Program Secretariat members.

+ Expenditures for salaries, wages, and allowances based on salary for Program Office staff.

+ Expenditures for reviewing and inspecting projects.

+ Expenditures for travel expenses, scientific conferences, organizing interim and final summary meetings of the Programs, compiling and printing specialized books, results of the Programs.

+ Expenditures for information dissemination and promotion of Program activities.

+ Expenditures for house rent, electricity, water, telecommunications, office supplies.

+ Expenditures for fuel and vehicles for professional work.

+ Expenditures for professional operations.

+ Expenditures for purchasing, repairing assets, small-scale infrastructure construction to serve professional work.

+ Expenditures for departure and return trips.

+ Other expenditures related to the activities of the Program Steering Committee and Program Offices.

- Other expenditures related to common Program activities.

All expenditures for common Program activities shall be carried out through the Program Offices.

2. Remuneration for Program Steering Committees and Secretaries:

a) Remuneration for Program Steering Committee members:

+ Program Leader: not exceeding 3,000,000 VND/month.

+ Program Steering Committee members: not exceeding 2,000,000 VND/month.

The Minister of Science and Technology decides the specific amount and implements it through responsibility contracts of the Ministry of Science and Technology or authorizes the Director of Program Offices to sign contracts with Program Steering Committees based on the effectiveness of the work of Steering Committee members.

b) Remuneration for Program Secretariat members does not exceed 2,000,000 VND/month. The Program Leader decides the specific amount based on the effectiveness of the work of Secretariat members, after reaching agreement with the Director of Program Offices. On this basis, the Director of Program Offices signs responsibility contracts with Secretariat members.

Responsibility contracts signed with Program Steering Committees and Secretariat members may be adjusted annually.

3. Annual budget preparation for Programs:

Annually, based on the tasks and funding needs of the Programs, research and development contracts signed between the Program Steering Committee, Program Offices, and organizations in charge and project leaders (hereinafter referred to as Contracts), Program Offices prepare the annual budget for the Programs according to the contents specified in Point 1, Part II of this Circular and current expenditure norms, submit them to the Ministry of Science and Technology for review and consolidation into the annual state budget of the Ministry of Science and Technology, and send them to the Ministry of Finance at the same time as preparing the annual central state budget according to the State Budget Law and guiding documents implementing the Law.

4. Allocation and transfer of budgets:

BASED ON THE BUDGET ESTIMATE FOR NATIONAL FINANCIAL EXPENDITURE OF THE PROGRAMS APPROVED BY THE AUTHORIZED AUTHORITIES, THE MINISTRY OF FINANCE ALLOCATES THE BUDGET ESTIMATE FOR NATIONAL FINANCIAL EXPENDITURE TO THE MINISTRY OF SCIENCE AND TECHNOLOGY.

THE OFFICE OF THE PROGRAMS PREPARES DETAILED BUDGET ESTIMATES FOR EACH PROJECT AND COMMON ACTIVITIES OF THE PROGRAMS IN ACCORDANCE WITH CURRENT REGULATIONS, AND SUBMITS THEM TO THE MINISTRY OF SCIENCE AND TECHNOLOGY FOR COMBINED BUDGET ALLOCATION PLANS TO BE SENT TO THE MINISTRY OF FINANCE FOR REVIEW.

BASED ON THE BUDGET ALLOCATION PLAN REVIEWED BY THE MINISTRY OF FINANCE, THE MINISTRY OF SCIENCE AND TECHNOLOGY ISSUES A DECISION TO ALLOCATE THE BUDGET ESTIMATE FOR NATIONAL FINANCIAL EXPENDITURE TO THE OFFICE OF THE PROGRAMS, AND SENDS IT TO THE MINISTRY OF FINANCE AND THE STATE TREASURY FOR COORDINATION IN IMPLEMENTATION.

BASED ON THE BUDGET ESTIMATE ALLOCATED BY THE MINISTRY OF SCIENCE AND TECHNOLOGY, THE OFFICE OF THE PROGRAMS ALLOCATES:

+ BUDGET ESTIMATE FOR EACH PROGRAM (IN DETAIL DOWN TO EACH PROJECT), NOTIFIED TO THE CHAIRMAN'S BOARD OF THE PROGRAM AND THE ORGANIZATIONS RESPONSIBLE FOR THE PROJECTS.

+ BUDGET ESTIMATE FOR COMMON ACTIVITIES OF THE PROGRAM.

THE OFFICE OF THE PROGRAMS SENDS THE COMBINED ALLOCATION RESULTS TO THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF FINANCE FOR MONITORING AND MANAGEMENT IN ACCORDANCE WITH CURRENT REGULATIONS.

5. BUDGET CONTROL PROCEDURE:

a) FOR FUNDS TO IMPLEMENT PROJECTS:

- TEMPORARY ADVANCES:

+ ANNUALLY, BASED ON CONTRACTS, THE OFFICE OF THE PROGRAMS IMPLEMENTS TEMPORARY ADVANCES AT THE STATE TREASURY TO PROVIDE FUNDS TO THE ORGANIZATIONS RESPONSIBLE FOR THE PROJECTS THROUGH THEIR ACCOUNTS AT THE STATE TREASURY.

+ THE MAXIMUM AMOUNT OF THE FIRST ADVANCE IS 70% OF THE FUNDS ALLOCATED FOR THE YEAR AS STATED IN THE CONTRACT, SUITABLE TO THE PROGRESS AND VOLUME OF WORK COMPLETED. BEFORE THE SECOND ADVANCE, THE RESPONSIBLE ORGANIZATION MUST REPORT ON THE USE OF THE FIRST ADVANCE; THE SECOND ADVANCE WILL BE PROVIDED ONLY IF THE PROJECT HAS BEEN SETTLED AT LEAST 50% OF THE FIRST ADVANCE (EXCEPT FOR EQUIPMENT PURCHASES THAT HAVE NOT YET MET SETTLEMENT REQUIREMENTS DUE TO OBJECTIVE REASONS CONFIRMED BY THE MINISTRY OF SCIENCE AND TECHNOLOGY BASED ON THE OFFICE OF THE PROGRAMS' APPLICATION).

+ THE ADVANCE APPLICATION DOCUMENTS INCLUDE THE CONTRACT AND THE ADVANCE APPLICATION LETTER FROM THE OFFICE OF THE PROGRAMS.

- SETTLEMENT OF TEMPORARY ADVANCES:

+ BASED ON THE FUNDS SPENT ON COMPLETED WORK VOLUMES ACKNOWLEDGED BY THE RESPONSIBLE AND CHAIRMAN OF THE PROJECTS, THE CHAIRMAN'S BOARD OF THE PROGRAMS AND THE OFFICE OF THE PROGRAMS CHECK AND CONFIRM; THE OFFICE OF THE PROGRAMS THEN SETTLES THE TEMPORARY ADVANCES WITH THE STATE TREASURY.

+ THE SETTLEMENT DOCUMENTS AT THE STATE TREASURY INCLUDE THE CERTIFICATION OF THE CHAIRMAN'S BOARD OF THE PROGRAMS AND THE OFFICE OF THE PROGRAMS ON FUNDS SPENT CORRESPONDING TO COMPLETED WORK VOLUMES, AND THE SETTLEMENT APPLICATION LETTER FROM THE OFFICE OF THE PROGRAMS.

b) FOR COMMON PROGRAM FUNDS: EXPENSES FOR COMMON ACTIVITIES ARE DIRECTLY INCURRED AT THE OFFICE OF THE PROGRAMS AND ARE CONDUCTED IN ACCORDANCE WITH CURRENT REGULATIONS AS FOR A LEVEL 3 BUDGET UNIT USING NATIONAL FINANCIAL FUNDS.

6. FINAL ACCOUNTING REPORT:

ANNUALLY, BASED ON FUNDS RECEIVED AND THE VOLUME OF WORK COMPLETED, THE RESPONSIBLE ORGANIZATIONS MUST SUBMIT FINAL ACCOUNTING REPORTS TO THE OFFICE OF THE PROGRAMS. THE OFFICE OF THE PROGRAMS IS RESPONSIBLE FOR CHECKING THE USE AND SETTLEMENT OF FUNDS FOR PROJECTS AND COMMON PROGRAM FUNDS, AND SUMMARIZES AND SUBMITS TO THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF FINANCE IN ACCORDANCE WITH CURRENT REGULATIONS.

ANNUALLY, THE MINISTRY OF SCIENCE AND TECHNOLOGY IS RESPONSIBLE FOR REVIEWING AND APPROVING THE FINAL ACCOUNTING REPORTS OF THE OFFICE OF THE PROGRAMS FOR PROJECTS AND COMMON PROGRAM FUNDS; SUMMARIZES INTO THE MINISTRY'S FINAL ACCOUNTING REPORT, ATTACHED WITH DETAILED REPORTS OF THE PROGRAMS, AND SUBMITS TO THE MINISTRY OF FINANCE AS REQUIRED.

UPON COMPLETION OF THE PROGRAM, THE OFFICE OF THE PROGRAMS IS RESPONSIBLE FOR AGGREGATING AND SUBMITTING FINAL ACCOUNTING REPORTS FROM THE STARTING YEAR TO THE END YEAR TO THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF FINANCE.

THE FINAL ACCOUNTING REPORT FORMS FOLLOW CURRENT REGULATIONS, ATTACHED WITH DETAILED REPORTS OF FUNDS SETTLED FOR EACH PROJECT. THE REVIEW AND ANNOUNCEMENT OF FINAL ACCOUNTING REPORTS ARE CONDUCTED IN ACCORDANCE WITH CURRENT REGULATIONS OF THE MINISTRY OF FINANCE ON REVIEWING, AUDITING, AND ANNOUNCING FINAL ACCOUNTING REPORTS FOR ADMINISTRATIVE ORGANIZATIONS, PUBLIC SERVICE UNITS, AND LOCAL BUDGETS.

IN CASES WHERE NECESSARY, THE MINISTRY OF SCIENCE AND TECHNOLOGY DECIDES TO AUDIT THE USE OF FUNDS FOR PROJECTS, WHICH SERVES AS THE BASIS FOR REVIEWING AND SETTLING FINAL ACCOUNTING REPORTS. AUDIT COSTS (IF ANY) ARE INCLUDED IN THE BUDGET ESTIMATE FOR ACTIVITIES OF THE OFFICE OF THE PROGRAMS.

EXPENSE DOCUMENTATION FOR FUNDS USED IN PROJECTS UNDER THE PROGRAMS IS CONDUCTED IN ACCORDANCE WITH CURRENT REGULATIONS AND MANAGED AND STORED BY THE RESPONSIBLE ORGANIZATIONS.

7. FINANCIAL INSPECTION WORK:

ANNUALLY, THE CHAIRMAN'S BOARD OF THE PROGRAMS AND THE OFFICE OF THE PROGRAMS CONDUCT REGULAR OR SURPRISE INSPECTIONS OF THE USE OF FUNDS FOR PROJECTS. THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF FINANCE CONDUCT INSPECTIONS OF THE USE OF FUNDS FOR COMMON PROGRAM ACTIVITIES.

IN CASES WHERE NECESSARY, THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF FINANCE CONDUCT INSPECTIONS OR COOPERATE WITH THE OFFICE OF THE PROGRAMS TO INSPECT THE USE OF FUNDS FOR PROJECTS.

DURING THE INSPECTION PROCESS, IF VIOLATIONS OF FUNDS USE ARE DISCOVERED, THEY WILL BE HANDLED IN ACCORDANCE WITH CURRENT REGULATIONS.

8. PROCUREMENT AND PROPERTY MANAGEMENT OF THE PROGRAM:

a) PROCUREMENT IS CONDUCTED IN ACCORDANCE WITH CURRENT REGULATIONS ON TENDERING AND PROCUREMENT OF SUPPLIES, MATERIALS, EQUIPMENT, AND WORKING AIDS FOR ORGANIZATIONS USING NATIONAL FINANCIAL FUNDS.

The Ministry of Science and Technology is responsible for approving procurement plans for goods and assets; reviewing and approving tender results in accordance with current state regulations.

b) Asset management:

The leading organization of the topic or project is responsible for establishing records to monitor and manage the fixed assets purchased from the state budget for the topic or project in accordance with current regulations. The Office of Programs is responsible for establishing records to track the fixed assets purchased from the state budget for topics and projects under the Programs.

c) Asset disposal:

The disposal of assets purchased using funds from the state budget, including assets generated from the results of the topic (including commercialized topics), shall be carried out in accordance with current regulations.

9. Recovery of funds:

The recovery of funds for projects under the Programs shall be implemented in accordance with the provisions set forth in Circular Joint Circular No. 85/2004/TTLT-BTC-KHCN dated August 20, 2004, issued by the Ministry of Finance and the Ministry of Science and Technology on "Guidelines for Financial Management of Recovered Funds from Scientific and Technological Tasks."

The Program Steering Committees and the Offices of Programs are responsible for urging the recovery of funds for the Programs. The Offices of Programs are responsible for reporting to the Ministry of Science and Technology on the recovery of funds for the Programs to compile and submit to the Ministry of Finance.

10. The Ministry of Science and Technology shall provide guidance and clearly define the legal nature, content of scientific and technological contracts implementing topics and projects between the Program Steering Committees and the Offices of Programs and the leading organizations and heads of topics and projects, specifying in detail the responsibilities and financial sanctions for violations by the parties involved in the contract.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days after its publication in the Official Gazette.

For Program KX.09 "Research to leverage natural conditions, economic, social factors, and historical cultural values of 1000 years of Thang Long - Hanoi to serve comprehensive development of the capital city": it continues to be implemented according to the financial management mechanism for the period 2001-2005 as stipulated in Joint Circular No. 35/2002/TTLT-BTC-KHCNMT dated April 18, 2002, issued by the Ministry of Finance and the Ministry of Science, Technology and Environment (now the Ministry of Science and Technology) on "Guidelines for Financial Management of National Key Science and Technology Programs" and Joint Circular No. 101/2004/TTLT-BTC-KHCN dated October 29, 2004, issued by the Ministry of Finance and the Ministry of Science and Technology on "Amendments and Supplements to Certain Points of Joint Circular No. 35/2002/TTLT-BTC-KHCNMT."

National key science and technology programs implemented in defense agencies, security agencies, and Party organs continue to be implemented in accordance with financial management regulations for defense, security, and Party organs.

During implementation, if there are difficulties or obstacles, they should be reported to the Ministry of Finance and the Ministry of Science and Technology for study and appropriate amendments and supplements./.