Joint Circular No. 36/2011/TTLT-BKHCN-BTC-BNV amending and supplementing Joint Circular No. 12/2006/TTLT-BKHCN-BTC-BNV guiding the implementation of Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government on the mechanism of self-management and self-responsibility of public scientific and technological organizations.

JOINT CIRCULAR

Amending and supplementing Circular Jointly Issued No. 12/2006/TTLT-BKHCN-BTC-BNV guiding the implementation

Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government on the mechanism of self-management and self-responsibility of public scientific and technological organizations

Mechanism of self-management and self-responsibility of public scientific and technological organizations

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Pursuant to Decree No. 28/2008/NĐ-CP dated March 14, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 48/2008/NĐ-CP dated April 17, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Home Affairs;

Pursuant to Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government on the mechanism of self-management and self-responsibility of public scientific and technological organizations amended and supplemented by Decree No. 96/2010/NĐ-CP dated September 20, 2010 of the Government amending and supplementing some articles of Decree No. 115/2005/NĐ-CP dated September 5, 2005 on the mechanism of self-management and self-responsibility of public scientific and technological organizations and Decree No. 80/2007/NĐ-CP dated May 19, 2007 on scientific and technological enterprises (hereinafter referred to as Decree No. 115/2005/NĐ-CP amended)

The Ministry of Science and Technology, the Ministry of Finance, and the Ministry of Home Affairs amend and supplement Circular Jointly Issued No. 12/2006/TTLT-BKHCN-BTC-BNV dated June 5, 2006 guiding the implementation of Decree No. 115/2005/NĐ-CP (hereinafter referred to as Circular Jointly Issued No. 12/2006/TTLT-BKHCN-BTC-BNV)

Article 1. Amend and supplement certain contents of Circular Jointly Issued No. 12/2006/TTLT-BKHCN-BTC-BNV as follows:

1. Add Points d, e, and g Clause 2 Section I:

"d) Scientific and technological organizations operating in the field of researching and establishing economic and technical standards are organizations with main tasks defined in their Charter, which are advisory services for ministries and sectors to develop standards, regulations, and consumption norms for raw materials, fuels, and materials, usage norms for machinery, labor costs in various specialized economic and technical fields; the budget funds for implementing these tasks account for more than 70% of the annual operational budget of the unit."

"e) Scientific and technological organizations serving state management are organizations with one of the following main functions and tasks defined in their Charter; among which, the budget funds for implementing these tasks account for more than 70% of the annual operational budget of the unit: - Researching, applying, and transferring technology in localities with difficult socio-economic conditions or extremely difficult conditions; - Providing scientific and technological information and statistical data for policy planning of Party agencies and state management agencies; - Preventing diseases, preserving and conserving varieties and genetic resources for public benefit and not for profit purposes."

"g) Scientific and technological organizations specified in Clause 4, Article 4 of Decree No. 115/2005/NĐ-CP amended are those public scientific and technological organizations established after October 5, 2005."

2. Amend Clause 4 Section I as follows:

"4. Time limit for drafting and approving the Reform Plan:

a) Scientific and technological organizations specified in Clause 1 and Clause 2, Article 4 of Decree No. 115/2005/NĐ-CP amended shall draft the Reform Plan for organizational structure and operation (according to Model Ia attached to this Circular) and submit it to the competent authority before September 30, 2012; the competent authority shall review and approve the plan before December 31, 2012.

b) Scientific and technological organizations specified in Clause 3, Article 4 of Decree No. 115/2005/NĐ-CP amended shall draft the Plan for improving organizational structure and operation (according to Model Ib attached to this Circular) and submit it to the competent authority for approval before June 30, 2012.

c) If scientific and technological organizations mentioned in Points a and b of this Clause do not have a Plan or if the Plan is not approved, the competent authority may require the organization to draft a merger or dissolution plan.

d) Scientific research and development organizations and scientific and technological service organizations established after October 5, 2005 must determine their organizational form and operation according to Clause 1 or Clause 2 of Article 4 of Decree No. 115/2005/NĐ-CP amended and ensure the implementation of the self-management and self-responsibility mechanism in the establishment plan."

3. Amend Clause 5 Section I as follows:

"5. Scientific and technological organizations implementing the self-management and self-responsibility mechanism continue to be state-run institutions. In case of need to change the name, the organization shall propose it in the Plan for the competent authority to consider and decide."

4. Amend Clause 6 Section I as follows:

"6. Public scientific and technological organizations with revenue sources may, based on specific characteristics and conditions, have their heads consider submitting to the competent authority for approval to establish subordinate units with legal personality, seals, bank accounts, and self-financing operations. New subordinate units must contribute a portion of the surplus from non-operational activities, production, business, and service activities after fulfilling all obligations to the State to the directly managing organization for management and regulation of common activities and investment in development. The contribution rate is stipulated in the Charter and Internal Expenditure Regulations of the new subordinate unit."

5. Amend and supplement Clause 1 Section II as follows:

"1. Tasks of scientific and technological organizations include:

a) Regular tasks according to functions: Regular tasks according to functions are tasks aimed at ensuring the operation of the unit, approved and assigned directly by the competent authority in accordance with the functions and tasks of the organization as stipulated in the establishment decision or the Charter (tasks at the grassroots level, ministry level, provincial level; planning; information and publicity activities; international cooperation; specialized conferences; training and seminars; personnel and asset management; maintaining administrative operations).

b) State scientific and technological tasks State scientific and technological tasks are national, ministry-level, and equivalent scientific and technological programs, topics, projects, and initiatives funded from state scientific and technological operating funds through selection, review, or direct assignment. Scientific and technological organizations are responsible for proactively organizing and implementing these tasks to ensure their completion in terms of quality and time.

c) Other tasks of scientific and technological organizations

- Scientific and technological tasks not using state scientific and technological operating funds;

- Surveys, statistics, and planning assigned by the state;

- Postgraduate training;

- Scientific and technological services;

- Production and business activities, other services. Scientific and technological organizations actively exploit opportunities, enter into contracts with organizations and individuals, and implement tasks. The content of research, technology transfer, scientific and technological service contracts, provision of goods, and other economic contracts is agreed upon by scientific and technological organizations with partners based on their capabilities and specialized fields as stipulated by law. Scientific and technological organizations may apply regulations on budget preparation for scientific and technological tasks funded by state scientific and technological operating funds when preparing budgets for scientific and technological tasks not funded by such funds.

6. Amend and supplement Point a Clause 4 Section II as follows:

"a) Scientific and technological organizations engaged in production, business, and service activities shall register their business operations with the local registration authority at the location where the organization's main office is located and obtain a Business Registration Certificate. Scientific and technological organizations may use the seal of public institutions for their production and business activities."

7. Amend and supplement Point b Clause 4 Section II as follows:

"b) Business registration dossier:

In addition to the business registration dossier as guided by the Ministry of Planning and Investment, scientific and technological organizations must submit the following additional documents:

- A certified copy of the Decision of the competent state management agency approving the Reform Plan for organizational structure and operation or the Improvement Plan for organizational structure and operation of the scientific and technological organization;

- The Charter of organizational structure and operation of the scientific and technological organization."

8. Amend Points a and b Clause 1 Section III as follows:

"a) Regular activity funding: Regular activity funding includes salaries, wages, and operational costs of the scientific and technological organization's administrative machinery.

- For scientific and technological organizations subject to the provisions of Clause 1, Article 4 of Decree No. 115/2005/NĐ-CP amended:

+ The state budget does not directly allocate regular activity funding.

+ By no later than January 1, 2014, regular activity funding will be determined and allocated within the budget for regular task implementation according to the state's scientific and technological functions and responsibilities.

- For scientific and technological organizations subject to the provisions of Clause 2, Article 4 of Decree No. 115/2005/NĐ-CP amended and those scientific and technological organizations that have been approved for conversion plans as stipulated in Clause 1, Article 4 of Decree No. 115/2005/NĐ-CP amended but currently cannot self-fund regular activity expenses:

+ The state budget allocates regular activity funding through a quota system until December 31, 2013. The quota level of regular activity funding shall not be lower than the state budget allocation for regular activity expenses of the previous year or the year approved in the plan; additionally, the state supplements regular expense increases for scientific and technological organizations due to organizational expansion and increased tasks as decided by the competent authority and the state-defined salary reform funding. The supervising authority determines the quota level of regular activity funding based on the organization's annual revenue and expenditure budget. Encouragement is given to scientific and technological organizations to increase revenue sources and gradually reduce regular expense budgets from the state budget annually. These provisions do not apply to scientific and technological organizations under enterprises and State Corporations.

+ By no later than January 1, 2014, the state will not directly allocate regular activity funding, but regular activity funding will be determined and linked to the budget for regular task implementation according to the state's scientific and technological functions and responsibilities.

- For scientific and technological organizations operating in basic research, strategic research, policy research, construction of industry-specific economic-technical norms, and services for state management as stipulated in Clause 3, Article 4 of Decree No. 115/2005/NĐ-CP amended:

+ The state budget allocates regular activity funding through a quota system. The quota level of regular activity funding is based on the annual functions and tasks assigned to the unit and shall not be lower than the state budget allocation for regular activity expenses of the previous year; additionally, it includes supplementary funding for salary reform, organizational expansion, and increased tasks as decided by the competent authority.

+ In addition to the regular funding allocated through the quota mentioned above, by no later than January 1, 2014, this type of scientific and technological organization will be allocated regular activity funding within the budget for implementing state scientific and technological tasks. For this type of scientific and technological organization, there is no regular activity funding in the regular task budget according to function.

- For public scientific research and development organizations, and public scientific and technological service organizations established after October 5, 2005:

+ Annual regular operating funds shall be allocated through a maximum lump sum for four years (for organizations under provincial people's committees directly under the central government, up to six years) from the date of establishment. The standard for annual regular operating funds shall be determined by the competent authority based on the approved project for establishing scientific and technological organizations, and shall not exceed the standard for administrative management expenses applicable to administrative agencies at the same level as stipulated in the Decisions on allocating regular budget expenditures and according to the method of calculating administrative expense standards applicable in the fiscal year in which the scientific and technological organization was established.

+ After the aforementioned new establishment period, these organizations will be assigned regular operating funds within the budget for implementing regular tasks in accordance with their functions and national scientific and technological tasks.

b) Funds for implementing scientific and technological tasks:

- Regular tasks according to functions: Based on the functions and tasks assigned by the competent authority as specified in the Decision on Establishment, Charter, or Regulation on Organization and Operation of the unit, each year, scientific and technological organizations shall prepare the budget for implementing regular tasks according to their functions. Scientific and technological organizations shall build the budget for implementing tasks in accordance with Circular Joint No. 44/2007/TTLT/BTC-BKHCN dated May 7, 2007, issued by the Ministry of Finance and the Ministry of Science and Technology guiding the standards for building and allocating budgets for scientific and technological projects using state budget funds, no later than December 31, 2013. Ministries, central agencies, provincial people's committees directly under the central government shall base on actual conditions and provisions of Circular Joint No. 44/2007/TTLT/BTC-BKHCN to guide the content and levels of expenditure for implementing regular tasks according to functions in a manner suitable and uniformly implemented within their respective ministries, central agencies, and localities.

- National scientific and technological tasks:

+ Tasks selected through competition: Based on the list of scientific and technological tasks published annually by the Ministry of Science and Technology, relevant ministries, sectors, and localities, scientific and technological organizations have equal rights to participate in the selection and competition to implement scientific and technological tasks.

+ Tasks assigned or commissioned directly by state agencies: Scientific and technological organizations shall prepare the budget for implementing national scientific and technological tasks in accordance with Circular Joint No. 44/2007/TTLT/BTC-BKHCN dated May 7, 2007, issued jointly by the Ministry of Finance and the Ministry of Science and Technology guiding the standards for building and allocating budgets for scientific and technological projects using state budget funds, no later than December 31, 2013.

9. Amend Clause 2, Section IV as follows:

"2. Income of cadres and employees of scientific and technological organizations: From January 1, 2014, scientific and technological organizations shall establish a salary fund and implement salary payments for cadres and employees of scientific and technological organizations in accordance with the guidelines of the Ministry of Finance and the Ministry of Science and Technology."

10. Amend Clause 1, Section VII as follows:

"1. When preparing the proposal for conversion, scientific and technological organizations must fully inventory existing assets at the unit, value of assets at original cost and residual value of assets at the time of preparing the proposal (according to the model attached as Appendix II to this Circular), propose a plan to manage and use assets, and depreciate assets. Before approving the proposal of the scientific and technological organization, the competent state agency shall decide to establish an asset valuation committee to verify, inspect, and value assets, then the head of the competent state agency shall sign the decision to transfer assets and the head of the scientific and technological organization shall sign to receive assets (according to the model attached as Appendix III to this Circular).

Asset transfer shall be carried out in accordance with Circular No. 245/2009/TT-BTC dated December 31, 2009, of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 52/2009/NĐ-CP dated June 3, 2009, of the Government on the management and use of state assets."

11. Amend Clause 2, Section VII as follows:

"2. Scientific and technological organizations may use state assets, including intellectual property assets that have been assigned to manage and use for production, business services, leasing, joint ventures, and collaborations in accordance with the law; they may use assets formed from borrowed capital and assets legally granted ownership rights to mortgage in accordance with the regulations."

12. Amend Clause 1, Section VIII as follows:

"1. Financial incentives principles for scientific and technological organizations undergoing conversion: When converting to self-financing organizational forms, scientific and technological organizations shall have autonomy and responsibility, enjoy financial incentives for scientific and technological activities and tax benefits as provided for scientific and technological enterprises under current laws."

13. Amend Clause 3, Section XII as follows:

"3. Points a and b of Clause 2 of this Section must seek opinions from the Staff and Officer Conference. For issues in Clause 1 and Clause 2 of this Section, if the Party Committee and the Trade Union Executive Board have inconsistent opinions with the Head of the scientific and technological organization, each organization shall report in writing to its superior body and the Head of the scientific and technological organization shall report in writing to seek the opinion of the direct supervising agency before making a decision."

Article 2. Implementation

This Circular takes effect from March 15, 2012. During the implementation process, if there are any difficulties or issues arising, it is recommended that agencies and organizations submit reports to the Ministry of Science and Technology, the Ministry of Finance, and the Ministry of Home Affairs for consideration and resolution./.