Circular No. 32/1997/TC-HCSN guiding the financial management of state-level science and technology programs for the period 1996-2000

CIRCULAR

Guidelines for managing financial resources for state-level science and technology programs during the period 1996-2000

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 Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government guiding the State Budget Law and Prime Minister's Decisions: No. 419/TTg dated July 21, 1995 on the management mechanism for scientific research and technological development activities, No. 363/TTg dated May 30, 1996 approving the list of science and technology programs and key scientific and technological tasks for the five-year period 1996-2000, and No. 716/TTg dated September 30, 1996 approving the direction of research and the list of national-level social science and humanities programs for the five-year period 1996-2000, the Ministry of Finance hereby provides guidelines for managing financial resources for state-level science and technology programs during the period 1996-2000 as follows:

Part 1:
GENERAL PROVISIONS

1 - Financial management of state-level science and technology programs (referred to as Programs) during the period 1996-2000 must be carried out in accordance with the State Budget Law and related guiding documents. The state budget funds allocated to the Programs must be used effectively to produce specific scientific products aimed at achieving important goals for economic and social development as well as providing scientific bases for decisions on Party and State policies. In addition to the scientific research funding from the state budget, relevant ministries and science and technology agencies need to mobilize and utilize other sources of capital to implement assigned scientific and technological tasks.

2 - Funding for tasks under the Program of a ministry or sector shall be recorded in the annual budget estimate of that ministry or sector.

The Ministry of Finance will allocate funds based on the state budget indicators announced by the Government to ministries and sectors.

3 - Funds allocated to Programs may only be used to carry out Program tasks; science and technology agencies shall not use these funds for regular research activities according to their functions.

4 - Scientific management of Programs shall be implemented in accordance with Circular No. 2155/KH dated September 21, 1996 of the Ministry of Science, Technology and Environment "Guidelines for the management mechanism of state-level science and technology programs for the five-year period 1996-2000" and Circular No. 2535/QLKH dated November 6, 1996 regarding "Some regulations on the management mechanism for national-level social science and humanities research programs for the period 1996-2000" issued by the Ministry of Science, Technology and Environment; and Circular No. 1862/TC-HCSN dated June 6, 1997 of the Ministry of Finance concerning the allocation and management of national-level social science programs for the period 1996-2000.

Part II:
SPECIFIC PROVISIONS

1 - Program implementation funds shall be used for the following purposes:

- Research costs for research and application projects - Costs for common Program activities such as organizing scientific seminars, soliciting opinions from scientists, reviewing and evaluating, writing and printing comprehensive reports on Program scientific activities.

- Costs for sending and receiving delegations.

2 - Budget preparation work:

The preparation of Program budgets must be based on: the content and volume of work to be implemented by the project and Joint Circular No. 49/TC-KHCN dated July 1, 1995 of the Ministry of Finance and the Ministry of Science, Technology and Environment "Regulations on expenditure for research and development activities" and current state regulations.

2.1 - Overall Program budget:

- Project leading agencies must prepare a full budget for the project during its implementation period and submit it to the supervising ministry, the Program Steering Committee, and the Ministry of Science, Technology and Environment.

- The Program Steering Committee must prepare a budget for common Program activities including international cooperation costs and submit it to the Ministry of Finance and the Ministry of Science, Technology and Environment.

- The Ministry of Science, Technology and Environment must consolidate the funding requirements of each Program and all Programs and submit them to the Ministry of Finance.

2.2 - Annual budget work

- Each year, based on the overall Program budget, project leading and principal agencies must prepare detailed budget estimates for project expenses according to the state budget classification for the planned year and submit them to the supervising ministry, the Program Steering Committee, and the Ministry of Science, Technology and Environment.

- Supervising ministries must approve the budget items for each project according to the state budget classification and consolidate them before submitting to the Ministry of Finance and the Ministry of Science, Technology and Environment.

- The Ministry of Science, Technology and Environment must coordinate with the Ministry of Finance to discuss scientific content and budget estimates with relevant ministries and sectors, then consolidate the Program budget estimates and submit them to the Ministry of Finance for presentation to the Government and National Assembly.

- Based on the state budget investment approved by the National Assembly for science, technology, and environment, the Ministry of Finance, in coordination with the Ministry of Science, Technology and Environment, will allocate funds for scientific tasks within the Programs to relevant ministries and sectors for approval by the Government.

3 - Fund allocation procedures:

Annually, based on the Government's notification of funding assignments to ministries and sectors, the Ministry of Finance will allocate funds to project leading agencies according to approved budgets and current financial regulations.

Funds for common Program activities will be allocated to the agency of the Program Steering Committee Chairperson according to the approved budget.

4 - Accounting and finalization procedures:

Accounting systems, forms, and quarterly and annual finalization procedures shall be carried out in accordance with Decision No. 999TC/QDCĐKT dated November 2, 1996 of the Minister of Finance and Circular No. 09 TC/NSNN dated March 18, 1997 of the Ministry of Finance "Guidelines for the Implementation of the Delegation, Preparation, Execution, and Finalization of the State Budget."

Finalization must comply with regulations, accompanied by specific expense receipts consistent with the content and progress of the project.

Project leading agencies must prepare finalization reports for each project and submit them to the supervising ministry. The supervising ministry must prepare finalization reports for projects under its management and submit them to the Ministry of Finance.

5 - Financial inspection and asset inventory procedures for projects:

Annually, the Ministry of Finance will coordinate with the Ministry of Science and Technology and Environment and the supervising ministry to conduct regular or spot checks on the use of funds for Research Topics and their scientific research contents. Based on the inspection, review, and assessment of the fund usage of the Research Topic, in cases where funds are misused, they will recommend the competent authority to suspend the implementation of the Research Topic and recover the allocated funds.

After the Program and Research Topic are completed, evaluated, and accepted, the leading agencies of the Research Topic must inventory and assess assets purchased or constructed using the Research Topic funds. The Ministry of Finance will coordinate with the Ministry of Science and Technology and Environment to inspect, review, and decide on the handling of materials and assets according to current regulations.

6 - Recovery of funds for Research Topics and S&T Development Projects funded from the recovery fund:

Agencies implementing Research Topics are responsible for recovering part of the state budget funds allocated to Research Topics through the sale of research products, trial products, waste materials, unused materials and equipment during the implementation process, or at the end of the entire Research Topic.

For Research Topics with the potential to recover funds, and S&T Development Projects, the recovery rate and time frame must be planned and specifically stipulated in contracts signed between the Ministry of Science and Technology and Environment, the supervising ministry, and the head of the Research Topic or Project, with the participation of the Ministry of Finance, and the recovered funds must be deposited into the state budget.

The recovery rate for Applied Research Topics under Programs and S&T Development Projects (funded from the recovery fund) ranges from 80% to 100%. Specific recovery rates for each type will be separately guided by the Ministry of Finance in coordination with the Ministry of Science and Technology and Environment.

Specifically for Production and Trial Projects funded from the recovery fund: Annually, the Ministry of Science and Technology and Environment will prepare plans for revenue and expenditure of each project to be submitted to the Ministry of Finance for inclusion in the annual revenue and expenditure plan and notification to relevant ministries and sectors. Based on the progress of revenue collection into the budget and signed contracts, the Ministry of Finance will allocate funds to the leading agencies of the projects to implement according to the principle of using recovered project funds to invest in new projects.

7- Remuneration for the Steering Committee of the Program:

If the Steering Committee of the Program has implemented activities and fulfilled all tasks outlined in Circular No. 2155/KH dated September 21, 1996, "Guidelines for Managing State-Level Science and Technology Programs for the 1996-2000 Period," and Circular No. 2619/KCM dated November 6, 1996, "Regulations on the Organization and Operation Mode of the Steering Committee for State-Level Science and Technology Programs for the 1996-2000 Period," issued by the Ministry of Science, Technology, and Environment, it shall be entitled to remuneration.

The temporary remuneration level for the permanent members of the Steering Committee of the Program is as follows:

+ Chairperson: VND 200,000/month

+ Deputy Chairperson: VND 150,000/month

+ Secretary Member: VND 150,000/month

Other members of the Steering Committee of the Program will be compensated according to current regulations based on specific tasks.

The total expenditure for the common activities of the Program shall not exceed 3% of the total annual expenditure for the Program (including remuneration for the Steering Committee of the Program).

Part 3:
IMPLEMENTING PROVISIONS

This Circular applies to financial management for State-level Programs and Research Topics for the 1996-2000 period, independent State-level Research Topics, and Production and Trial Projects funded from recovered funds, replacing Joint Circular No. 1213/KHCN-TC dated September 26, 1992, of the State Science Council - Ministry of Finance, "Guidelines for Financial Management of State-Level Science and Technology Programs for the 1991-1995 Period," and Circular No. 1308/TC-KHKT dated November 24, 1990, of the Joint Circular of the State Science Council - Ministry of Finance, "Guidelines for the Recovery of Funds for Science and Technology Activities."

This Circular takes effect from January 1, 1997. The portion of funds already expended in 1996 for Programs and S&T Development Projects for ministries and sectors shall also be implemented according to the guidelines of this Circular. During implementation, if there are difficulties or obstacles, the heads of Programs, Research Topics, and Projects, and ministries and sectors are advised to report to the Ministry of Finance for study and appropriate amendments and supplements.