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

CIRCULAR

Guidelines for Financial Management National Science and Technology Programs for the 1996-2000 Period

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 activities and technological development, No. 363/TTg dated May 30, 1996 approving the list of science and technology programs and key scientific and technological tasks for the 1996-2000 five-year period, and No. 716/TTg dated September 30, 1996 approving the research direction and list of national-level science programs in social sciences and humanities for the 1996-2000 five-year period, the Ministry of Finance hereby issues guidelines for financial management of national-level science and technology programs for the 1996-2000 period as follows:

1. Recipients and Scope of Application of Encouragement Scholarships.

GENERAL PROVISIONS

1 - Financial management of national-level science and technology programs (referred to as Programs) for the 1996-2000 period must be carried out in accordance with the State Budget Law and related guiding documents. 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 state budget funds for scientific activities, relevant ministries and science and technology agencies need to mobilize and utilize other sources of capital to implement assigned scientific and technological tasks.

2 - The expenses for implementing Program tasks under a ministry or sector shall be recorded in the annual budget 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 Managing National-Level Science and Technology Programs for the 1996-2000 Five-Year Period" and Circular No. 2535/QLKH dated November 6, 1996 regarding "Certain Provisions on the Management Mechanism for National-Level Research Programs in Social Sciences and Humanities for the 1996-2000 Period" 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 1996-2000 period.

PART 2:

SPECIFIC PROVISIONS

1 - Expenses for implementing Programs shall be used for the following purposes:

Funding research work of research topics, application - Funding common activities of Programs such as organizing scientific seminars, soliciting opinions from scientists, inspection and evaluation, writing and printing comprehensive reports on scientific activities of Programs.

Organizing outbound and inbound delegations.

2 - Budget preparation:

Preparing the Program budget must be based on: the content and volume of work to be implemented by the topic 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:

The main agencies responsible for topics must prepare a full budget for the topic during its implementation and submit it to the competent 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 Preparation:

Each year, based on the overall Program budget, the main agencies responsible for topics must prepare detailed budgets for the expenditure items of the topic according to the state budget classification for the planned year and submit them to the competent ministry, the Program Steering Committee, and the Ministry of Science, Technology, and Environment.

The competent ministries must approve the expenditure items of each topic according to the state budget classification, consolidate them, and submit them 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 the scientific content and budgets of topics with relevant ministries and sectors, then consolidate the Program budgets and submit them to the Ministry of Finance for presentation to the Government and the National Assembly.

The Ministry of Finance, based on the state budget investment for science, technology, and the environment approved by the National Assembly, must take the lead in coordinating with the Ministry of Science, Technology, and Environment to allocate funds for scientific tasks within Programs to relevant ministries and sectors for approval by the Government.

3 - Fund Allocation:

Annually, based on the Government's notification assigning expenditure tasks to ministries and sectors, the Ministry of Finance allocates funds to the main agencies responsible for topics according to the approved budget and current financial regulations.

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

4 - Accounting and Finalization System:

The accounting system, 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 Implementing the Delegation, Preparation, Execution, and Finalization of the State Budget."

Settlement and finalization must comply with regulations, accompanied by specific expense vouchers consistent with the content and progress of the topic.

The main agency responsible for a topic must prepare the finalization report for each topic of the unit and submit it to the competent ministry. The competent ministry must prepare the finalization report for the units responsible for topics under its management and submit it to the Ministry of Finance.

5 - Financial Inspection and Asset Inventory of Topics:

Annually, the Ministry of Finance will coordinate with the Ministry of Science and Technology and Environment and the respective supervising ministries to conduct regular or surprise inspections on the use of funds for Research Projects and their scientific research contents. Based on the inspection findings, if the funds are misused, they will recommend the competent authority to suspend the implementation of the Project and recover the allocated funds.

After the Program and Project have been completed, evaluated, and accepted, the leading agencies of the Projects must inventory and assess assets purchased or constructed using Project 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 Project funds from the recovery fund:

Agencies implementing the Projects are responsible for recovering part of the state budget funds allocated to the Projects through the sale of research products, trial products, waste materials, unused equipment, and other items not required during the execution or upon completion of the entire Project.

For Projects capable of recovering funds, science and technology transfer 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 Project leader, with the participation of the Ministry of Finance, and the recovered funds must be deposited into the state budget.

The recovery rate for applied Projects under Programs and science and technology transfer projects (using the recovery fund) ranges from 80% to 100%. Specific recovery rates for each type will be detailed in separate guidelines issued by the Ministry of Finance in coordination with the Ministry of Science and Technology and Environment.

Specifically, for production and testing projects funded from the recovery fund: Annually, the Ministry of Science and Technology and Environment will prepare revenue and expenditure plans for each project, submit them to the Ministry of Finance for annual consolidation, and notify 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 the principle of using recovered project funds for new project investments.

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 National-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 National-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 rate for the permanent members of the Steering Committee of the Program is as follows:

Chairman: VND 200,000/month

Deputy Chairman: VND 150,000/month

Secretary Member: VND 150,000/month

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

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

PART 3:IMPLEMENTING PROVISIONS

This Circular applies to the financial management of State-level Programs and Projects for the period 1996-2000, independent State-level Projects, and experimental production projects funded from recovered funds, replacing Circular Joint No. 1213/KHCN-TC dated September 26, 1992, issued by the State Science Council - Ministry of Finance on the financial management of State-level science and technology Programs for the period 1991-1995, and Circular No. 1308/TC-KHKT dated November 24, 1990, issued by the Joint State Science Council - Ministry of Finance on the recovery of funds for scientific and technological activities.

This Circular takes effect from January 1, 1997. The portion of funds implemented in 1996 for Programs and S&T Experimental Production Projects for Ministries and Sectors shall also be carried out in accordance with the guidance provided in this Circular. In the course of implementation, if there are difficulties or obstacles, the heads of Programs, Projects, and Ministries and Sectors are requested to report to the Ministry of Finance for research and appropriate amendments and supplements.