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

CIRCULAR

DIRECTIVE OF THE MINISTRY OF FINANCE NO. 32 TC/HCSN OF JUNE 13, 1997 GUIDING THE MANAGEMENT OF FINANCES FOR NATIONAL SCIENCE AND TECHNOLOGY PROGRAMS FOR THE PERIOD 1996-2000

BASED ON DECREE NO. 87/CP OF DECEMBER 19, 1996 OF THE GOVERNMENT GUIDING THE STATE BUDGET LAW AND THE RESOLUTIONS OF THE PRIME MINISTER: NO. 419/TTg OF JULY 21, 1995 ON THE MANAGEMENT MECHANISM FOR RESEARCH AND DEVELOPMENT ACTIVITIES, NO. 363/TTg OF MAY 30, 1996 APPROVING THE LIST OF NATIONAL SCIENCE AND TECHNOLOGY PROGRAMS AND KEY SCIENTIFIC TASKS FOR THE FIVE-YEAR PERIOD 1996-2000, AND NO. 716/TTg OF SEPTEMBER 30, 1996 APPROVING THE RESEARCH DIRECTION AND LIST OF NATIONAL SOCIAL SCIENCES AND HUMANITIES SCIENCE PROGRAMS FOR THE FIVE-YEAR PERIOD 1996-2000, THE MINISTRY OF FINANCE GUIDES THE MANAGEMENT OF FINANCES FOR NATIONAL SCIENCE AND TECHNOLOGY PROGRAMS FOR THE PERIOD 1996-2000 AS FOLLOWS:

PART I

GENERAL PROVISIONS

1 - THE MANAGEMENT OF FINANCES FOR NATIONAL SCIENCE AND TECHNOLOGY PROGRAMS (REFERRED TO AS PROGRAMS) FOR THE PERIOD 1996-2000 MUST BE CONDUCTED IN ACCORDANCE WITH THE STATE BUDGET LAW AND THE GUIDING DOCUMENTS THEREOF. FUNDS FROM THE STATE BUDGET ALLOCATED TO THE PROGRAMS MUST BE USED EFFECTIVELY TO PRODUCE SPECIFIC SCIENTIFIC PRODUCTS AIMED AT ACHIEVING IMPORTANT ECONOMIC AND SOCIAL DEVELOPMENT GOALS AS WELL AS PROVIDING SCIENTIFIC BASIS FOR PARTY AND STATE POLICIES. IN ADDITION TO THE OPERATIONAL EXPENSES FOR SCIENCE FROM THE STATE BUDGET, MINISTRIES AND SCIENCE AND TECHNOLOGY INSTITUTIONS NEED TO RAISE AND USE OTHER SOURCES OF FUNDS TO IMPLEMENT ASSIGNED SCIENTIFIC AND TECHNOLOGICAL TASKS.

2 - FUNDS FOR TASKS UNDER THE PROGRAMS OF ANY MINISTRY OR SECTOR SHALL BE INCLUDED IN THE ANNUAL BUDGET OF THAT MINISTRY OR SECTOR.

THE MINISTRY OF FINANCE WILL ISSUE FUNDS BASED ON THE STATE BUDGET INDICATORS ANNOUNCED BY THE GOVERNMENT TO THE MINISTRIES AND SECTORS.

3 - FUNDS ALLOCATED TO THE PROGRAMS CAN ONLY BE USED FOR THE TASKS OF THE PROGRAMS. SCIENCE AND TECHNOLOGY INSTITUTIONS CANNOT USE THESE FUNDS FOR REGULAR RESEARCH TASKS PERFORMED BY THEIR UNITS.

4 - THE MANAGEMENT OF SCIENCE FOR THE PROGRAMS IS CONDUCTED ACCORDING TO CIRCULAR NO. 2155/KH OF SEPTEMBER 21, 1996 OF THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT "GUIDING THE MANAGEMENT MECHANISM FOR NATIONAL SCIENCE AND TECHNOLOGY PROGRAMS FOR THE FIVE-YEAR PERIOD 1996-2000" AND LETTER NO. 2535/QLKH OF NOVEMBER 6, 1996 REGARDING "SOME PROVISIONS ON THE MANAGEMENT MECHANISM FOR NATIONAL SOCIAL SCIENCES AND HUMANITIES RESEARCH PROGRAMS FOR THE PERIOD 1996-2000" OF THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT; AND LETTER NO. 1862/TC-HCSN OF JUNE 6, 1997 OF THE MINISTRY OF FINANCE ON THE ISSUANCE AND MANAGEMENT OF NATIONAL SOCIAL SCIENCES PROGRAMS FOR THE PERIOD 1996-2000.

PART II

SPECIFIC PROVISIONS

1 - FUNDS FOR IMPLEMENTING THE PROGRAMS ARE USED FOR THE FOLLOWING PURPOSES:

- EXPENSES FOR RESEARCH WORK OF RESEARCH PROJECTS - EXPENSES FOR COMMON ACTIVITIES OF THE PROGRAMS SUCH AS ORGANIZING SCIENTIFIC SEMINARS, SEEKING INPUT FROM SCIENTISTS, EVALUATION, WRITING AND PRINTING COMBINED REPORTS ON SCIENTIFIC ACTIVITIES OF THE PROGRAMS.

- EXPENSES FOR ORGANIZING OUTBOUND AND INBOUND DELEGATIONS.

2 - BUDGET PREPARATION:

THE BUDGET PREPARATION FOR THE PROGRAMS MUST BE BASED ON THE CONTENT AND VOLUME OF WORK TO BE IMPLEMENTED IN THE PROJECTS AND CIRCULAR JOINTLY ISSUED BY THE MINISTRY OF FINANCE AND THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT NO. 49/TC-KHCN OF JULY 1, 1995 "REGULATING EXPENSES FOR RESEARCH AND DEVELOPMENT ACTIVITIES" AND CURRENT REGULATIONS OF THE STATE.

2.1 - OVERALL BUDGET OF THE PROGRAM:

- THE MAIN ORGANIZERS OF THE PROJECTS MUST PREPARE A COMPLETE BUDGET FOR THE ENTIRE PROJECT DURING THE IMPLEMENTATION PERIOD AND SUBMIT IT TO THE MINISTRY IN CHARGE, THE PROGRAM DIRECTORATE BOARD, AND THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT.

- THE PROGRAM DIRECTORATE BOARD MUST PREPARE A BUDGET FOR COMMON PROGRAM ACTIVITIES INCLUDING INTERNATIONAL COOPERATION FUNDS AND SUBMIT IT TO THE MINISTRY OF FINANCE AND THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT.

- THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT MUST AGGREGATE THE FUNDS REQUIREMENTS OF EACH PROGRAM AND ALL PROGRAMS AND SUBMIT THEM TO THE MINISTRY OF FINANCE.

2.2 - ANNUAL BUDGET PREPARATION

- ANNUALLY, BASED ON THE OVERALL BUDGET OF THE PROGRAM, THE MAIN ORGANIZERS OF THE PROJECTS MUST PREPARE A DETAILED BUDGET FOR THE EXPENSES OF THE PROJECTS ACCORDING TO THE STATE BUDGET CLASSIFICATION AND SUBMIT IT TO THE MINISTRY IN CHARGE, THE PROGRAM DIRECTORATE BOARD, AND THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT.

- THE MINISTRIES IN CHARGE MUST APPROVE THE EXPENSES OF EACH PROJECT ACCORDING TO THE STATE BUDGET CLASSIFICATION AND AGGREGATE THEM TO SUBMIT 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 THE PROJECTS WITH THE MINISTRIES AND SECTORS, THEN AGGREGATE THE BUDGETS OF THE PROGRAMS TO SUBMIT TO THE MINISTRY OF FINANCE FOR REVIEW BY THE GOVERNMENT AND THE NATIONAL ASSEMBLY.

- THE MINISTRY OF FINANCE MUST BASED ON THE STATE BUDGET ALLOCATED FOR SCIENCE, TECHNOLOGY AND ENVIRONMENT APPROVED BY THE NATIONAL ASSEMBLY, TAKE THE LEAD IN COORDINATING WITH THE MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT TO ALLOCATE FUNDS FOR SCIENTIFIC TASKS IN THE PROGRAMS TO THE MINISTRIES AND SECTORS FOR APPROVAL BY THE GOVERNMENT.

3 - FUNDS DISTRIBUTION:

ANNUALLY, BASED ON THE GOVERNMENT'S NOTICE ASSIGNING EXPENDITURE TASKS TO THE MINISTRIES AND SECTORS, THE MINISTRY OF FINANCE ISSUES FUNDS TO THE MAIN ORGANIZERS OF THE PROJECTS ACCORDING TO THE APPROVED BUDGET AND CURRENT FINANCIAL REGULATIONS.

FUNDS FOR COMMON PROGRAM ACTIVITIES ARE ISSUED TO THE AGENCY OF THE PROGRAM DIRECTORATE BOARD ACCORDING TO THE APPROVED BUDGET.

4 - ACCOUNTING REPORTING SYSTEM:

THE ACCOUNTING SYSTEM, FORMS, AND QUARTERLY AND ANNUAL SETTLEMENT PROCEDURES ARE CONDUCTED ACCORDING TO DECISION NO. 999TC/QDCĐKT OF NOVEMBER 2, 1996 OF THE MINISTER OF FINANCE AND CIRCULAR NO. 09 TC/NSNN OF MARCH 18, 1997 OF THE MINISTRY OF FINANCE "GUIDING THE IMPLEMENTATION OF THE DECENTRALIZATION, PREPARATION, EXECUTION, AND SETTLEMENT OF THE STATE BUDGET."

THE SETTLEMENT MUST BE ACCURATE, ACCOMPANIED BY SPECIFIC EXPENSE DOCUMENTS, CONSISTENT WITH THE CONTENT AND PROGRESS OF THE PROJECT.

THE MAIN ORGANIZER OF THE PROJECT MUST PREPARE THE SETTLEMENT REPORT OF EACH PROJECT AND SUBMIT IT TO THE MINISTRY IN CHARGE. THE MINISTRY IN CHARGE MUST PREPARE THE SETTLEMENT REPORT OF THE PROJECTS UNDER ITS MANAGEMENT AND SUBMIT IT TO THE MINISTRY OF FINANCE.

5 - FINANCIAL AUDIT AND ASSET INVENTORY OF THE 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 agencies responsible for 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&TIP projects 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 products, 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, S&TIP projects, the recovery rate and recovery period 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, the recovered funds shall be deposited into the state budget.

The recovery rate for applied Research Topics under Programs and S&TIP projects (using 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 revenue and expenditure plans for each project and submit them to the Ministry of Finance for consolidation into the annual revenue and expenditure plan 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 agencies responsible for 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 specified in Circular No. 2155/KH dated September 21, 1996, "Guidelines for the Management Mechanism of 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 of National-Level Science and Technology Programs for the 1996-2000 Period," issued by the Ministry of Science, Technology, and Environment, it will be entitled to remuneration.

- The temporary remuneration level 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 remunerated 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 III 

IMPLEMENTING PROVISIONS

This Circular applies to financial management for national-level Programs and Research Topics for the 1996-2000 period, independent national-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 National-Level Science and Technology Programs for the 1991-1995 Period," and Circular No. 1308/TC-KHKT dated November 24, 1990, of the Joint Ministry of the State Science Council - Ministry of Finance, "Guidelines for the Recovery System of Funds for Science and Technology Activities."

This Circular takes effect from January 1, 1997. The portion of funds already implemented in 1996 for Programs and S&TIP projects for ministries and sectors shall also be carried out according to the guidelines of this Circular. During the implementation process, 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.