Joint Circular No. 44/2007/TTLT-BTC-BKHCN guiding the construction standards and budget allocation for scientific and technological projects funded by the state budget.

JOINT CIRCULAR

Guidelines on construction standards and budget allocation for scientific and technological research projects

for scientific and technological topics and projects

My name is: ... born on ... month ... year ...

__________________

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. 171/2004/QĐ-TTg dated September 23, 2004 of the Prime Minister approving the project to reform the management mechanism for science and technology.

To unify the construction and allocation of budget estimates for scientific and technological research projects (R&D) funded by the state budget, the Ministry of Finance and the Ministry of Science and Technology hereby issue the following guidelines:

PART I. GENERAL PROVISIONS

1. Scope of application:

This Circular applies to: Scientific research topics, experimental production projects, R&D projects using the state budget (including national, ministerial, equivalent ministerial, central government agency, Office of the President, National Assembly Office, Central Committees of the Party, central agencies of associations and mass organizations, provincial-level R&D topics and projects - hereinafter referred to as R&D topics and projects); activities serving the management of R&D topics and projects by competent authorities.

Other cost standards and budget estimates for R&D topics and projects not specifically provided for in this Circular shall be implemented in accordance with current regulations of the State.

2. Explanation of Terms:

a. Scientific research topic: Is a scientific and technological task aimed at discovering laws, describing, explaining the causes of movement of objects, phenomena, or creating principles, solutions, secrets, inventions, etc., expressed in the forms: Basic research topic, applied research topic, experimental implementation topic, or a combination of basic research, applied research, and experimental implementation.
b. Experimental production project (SXTN project): Is a scientific and technological task aimed at applying scientific research results and experimental implementation to test solutions, methods, economic-social management models, or small-scale production trials to perfect new technologies, products before their introduction into production and daily life.

c. Scientific and technological project (R&D project): Is a scientific and technological task including several scientific research topics and several experimental production projects organically and synchronously conducted within a certain period to solve major scientific and technological issues serving the production of key or main products, significantly enhancing the technological level of an industry or field and having a significant impact on the country's socio-economic development.

d. Scientific subtopic: Is a scientific issue that needs to be resolved during the research process of a R&D topic or project, aimed at determining and proving scientific arguments through scientific evidence, including theoretical evidence (theoretical basis) and practical evidence (survey, investigation, experiment, implementation results conducted by the author or cited from other colleagues' works).

Scientific subtopics are divided into the following two types:

- Type 1: Theoretical research subtopic includes activities to collect and process existing information, scientifically proven arguments extracted from literature, books, previous scientific works, laboratory research and experimentation activities, leading to necessary evidence to prove scientific arguments.

- Type 2: Theoretical research subtopic combined with experimental implementation, in addition to the activities mentioned above for type 1, also includes field survey, interview, research, testing, and experimental activities to contrast, compare, analyze, and evaluate to prove scientific arguments.

e. Expert: Is a person with appropriate professional qualifications and deep knowledge, having at least five years of experience in the R&D field of the topic or project; familiar with the R&D management mechanism; experienced in organizing the implementation of R&D tasks, transferring and applying R&D results to actual production; reputable in professional ethics.

g. Competent authority managing the topic or project: Is a state agency entrusted with the task of determining the task; selecting organizations and individuals to lead the implementation; reviewing content and budget; inspecting and evaluating the acceptance of results of topics and projects.

h. Leading organization of the topic or project: Is an organization with legal personality entrusted by the competent authority to implement the topic or project with assigned funds.

PART II. SPECIFIC PROVISIONS

1. CONTENT OF EXPENSES FOR ACTIVITIES SERVING THE MANAGEMENT WORK OF AUTHORISED AUTHORITIES REGARDING RESEARCH TOPICS AND SCIENTIFIC PROJECTS:

a. EXPENSES FOR CONSULTATION SERVICES: Determining research topics and scientific projects; selecting and evaluating organizations and individuals responsible for research topics and scientific projects, including expenses for scientific labor of experts reviewing, critiquing, and assessing research topic and project applications, financial and content review of research topics and projects; expenses for consultation board meetings; travel and accommodation expenses for experts from afar invited to participate in consultation work.

b. EXPENSES FOR MID-TERM REVIEW AND FINAL ACCEPTANCE EVALUATION (IF APPLICABLE) AT THE LEVEL OF MANAGEMENT OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS, INCLUDING EXPENSES FOR TESTING RESULTS OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS; LABOR COSTS OF EXPERTS REVIEWING, CRITIQUING, AND ASSESSING RESULTS OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS; EXPENSES FOR MEETINGS OF INSPECTION GROUPS, SPECIALIST DETERMINATION TEAMS, MID-TERM REVIEW BOARDS (IF APPLICABLE), AND FINAL ACCEPTANCE REVIEW BOARDS; TRAVEL AND ACCOMMODATION EXPENSES FOR EXPERTS FROM AFAR INVITED TO PARTICIPATE IN MID-TERM REVIEWS AND FINAL ACCEPTANCE EVALUATIONS.

c. OTHER EXPENSES DIRECTLY RELATED TO ACTIVITIES SERVING THE MANAGEMENT WORK OF AUTHORISED AUTHORITIES REGARDING RESEARCH TOPICS AND SCIENTIFIC PROJECTS.

2. CONTENT OF EXPENSES FOR RESEARCH TOPICS AND SCIENTIFIC PROJECTS:

a. EXPENSES FOR LABOR ENGAGED IN DIRECT IMPLEMENTATION OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS, INCLUDING:

- LABOR COSTS OF SCIENTIFIC STAFF AND TECHNICAL STAFF DIRECTLY ENGAGED IN IMPLEMENTING RESEARCH TOPICS AND SCIENTIFIC PROJECTS, SUCH AS: THEORETICAL RESEARCH, RESEARCH ON TECHNOLOGICAL PROCESSES, SCIENTIFIC SOLUTIONS, DESIGN, TRIAL MANUFACTURING; THEORETICAL RESEARCH ON SOCIOLOGICAL AND HUMANISTIC ARGUMENTS; IMPLEMENTATION AND MONITORING OF EXPERIMENTS, SAMPLE ANALYSIS; SURVEY AND SOCIAL STUDY DESIGN; DATA PROCESSING AND ANALYSIS FROM SURVEYS AND SOCIAL STUDIES; WRITING COMPUTER SOFTWARE; SCIENTIFIC REPORTS SUMMARIZING RESEARCH TOPICS AND SCIENTIFIC PROJECTS, RECOMMENDATION REPORTS; TRAINING AND TECHNOLOGY TRANSFER SUPPORT EXPENSES.

- OTHER LABOR COSTS SERVING THE IMPLEMENTATION OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS;

b. EXPENSES FOR PURCHASING MATERIALS, RAW MATERIALS, SUPPLIES, DOCUMENTS, TECHNICAL LITERATURE, SCIENTIFIC DATA, BOOKS, REFERENCE JOURNALS, TECHNICAL DOCUMENTS, TECHNOLOGICAL SECRETS, SPECIALIZED LITERATURE, PUBLICATIONS, TOOLS, AND SAFETY EQUIPMENT SERVING SCIENTIFIC RESEARCH AND TECHNOLOGY IMPLEMENTATION.

c. EXPENSES FOR MAINTENANCE AND PURCHASE OF FIXED ASSETS:

- EXPENSES FOR PURCHASING ESSENTIAL ASSETS DIRECTLY SERVING THE RESEARCH AND TECHNOLOGY DEVELOPMENT ACTIVITIES OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS;

- EXPENSES FOR LEASING ASSETS DIRECTLY USED IN THE RESEARCH AND TECHNOLOGY DEVELOPMENT ACTIVITIES OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS.

- DEPRECIATION EXPENSES OF FIXED ASSETS (IF ANY) DURING THE PERIOD OF DIRECT PARTICIPATION IN THE IMPLEMENTATION OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS AT THE RATE PRESCRIBED FOR ENTERPRISE ASSETS.

- EXPENSES FOR MAINTAINING AND REPAIRING EQUIPMENT AND INFRASTRUCTURE DIRECTLY SERVING THE RESEARCH ACTIVITIES OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS.

d. EXPENSES FOR: DOMESTIC TRAVEL FEES; OUTBOUND AND INBOUND MISSIONS; COMMON CONFERENCES AND SEMINARS OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS; STATIONERY AND PRINTING; TRANSLATING FOREIGN LANGUAGE DOCUMENTS; GENERAL MANAGEMENT OF THE LEADING UNIT (INCLUDING PAYMENTS FOR INDIRECT LABOR COSTS SERVING THE IMPLEMENTATION OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS, WATER AND ELECTRICITY CHARGES, OFFICE COMMUNICATION FEES, USE OF WORKING EQUIPMENT BY THE LEADING UNIT, ETC.); LOCAL ACCEPTANCE (INTERNAL ACCEPTANCE, INCLUDING EXPENSES FOR EXPERTS ANALYZING, ASSESSING, AND TESTING RESULTS AND PRODUCTS PRIOR TO ACCEPTANCE); REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS FOR RESEARCH AND TECHNOLOGY DEVELOPMENT RESULTS; ADVERTISING, MARKETING, AND TRADE PROMOTION EXPENSES (IF APPLICABLE) FOR PRODUCTS OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS; OTHER EXPENSES DIRECTLY RELATED TO RESEARCH TOPICS AND SCIENTIFIC PROJECTS.

3. SOURCE OF STATE BUDGET INVESTMENT:

a. THE STATE BUDGET INVESTS IN RESEARCH TOPICS AND SCIENTIFIC PROJECTS IN KEY RESEARCH DIRECTIONS IDENTIFIED IN THE STRATEGY FOR THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY; RESEARCH TOPICS AND SCIENTIFIC PROJECTS IN BASIC RESEARCH OR APPLICATION-ORIENTED BASIC RESEARCH, STRATEGIC RESEARCH, POLICY RESEARCH, AND PUBLIC INTEREST AREAS SERVING NATIONAL AND LOCAL ECONOMIC AND SOCIAL DEVELOPMENT.

b. FOR RESEARCH TOPICS AND SCIENTIFIC PROJECTS IN STATE-PREFERRED SCIENCE AND TECHNOLOGY DIRECTIONS, THE STATE BUDGET WILL SUPPORT A PORTION OF THE IMPLEMENTATION COSTS OF THESE TOPICS AND PROJECTS ACCORDING TO THE REGULATIONS OF THE AUTHORIZED STATE AUTHORITIES.

c. RESEARCH TOPICS AND SCIENTIFIC PROJECTS IN APPLICATION-ORIENTED RESEARCH AND TECHNOLOGY DEVELOPMENT DIRECTIONS, AND OTHER AREAS ARE MAINLY FUNDED BY ORGANIZATIONS AND INDIVIDUALS THEMSELVES.

THE MINISTRY OF SCIENCE AND TECHNOLOGY SHALL ISSUE GUIDANCE DOCUMENTS ON THE CLASSIFICATION OF RESEARCH TOPICS AND SCIENTIFIC PROJECTS IN THE RESEARCH DIRECTIONS MENTIONED IN THIS SECTION.

4. BUDGET ALLOCATION FRAMEWORKS:

a. FOR ACTIVITIES SERVING THE MANAGEMENT WORK OF AUTHORISED AUTHORITIES REGARDING RESEARCH TOPICS AND SCIENTIFIC PROJECTS:

Unit: 1,000 VND

b. FOR ACTIVITIES IMPLEMENTING RESEARCH TOPICS AND SCIENTIFIC PROJECTS

Unit: 1,000 VND

For scientific and technological projects, programs: The standards set forth in this Circular are used to unify the construction and allocation of budget estimates for projects, programs and budgetary guidance; when implementing expenditures and controlling actual expenditures, follow the regulations on cost-sharing for implementing projects, programs stipulated in Joint Circular No. 93/2006/TTLT/BTC-BKHCN dated October 4, 2006 issued by the Ministry of Finance and the Ministry of Science and Technology.

For activities serving the management work of authorized agencies: The standards set forth in this Circular are maximum expenditure standards.

PART III. ESTABLISHING, AUDITING, APPROVING BUDGETS

1. Establishing budget estimates for activities serving state management work of authorized state agencies for scientific and technological projects, programs:

Ministries, central agencies, localities: Based on plans to determine and select scientific and technological projects, programs for the year; mid-term review plans (if any), final review plans for scientific and technological projects, programs for the year and the expenditure standards prescribed in this Circular, establish budget estimates and incorporate them into the annual budget estimate for scientific and technological expenses of ministries, central agencies, provincial Departments of Science and Technology or units entrusted with state management responsibilities for science and technology at the local level, together with the annual budget estimate submission time to the competent authority for approval.

2. Establishing budget estimates for scientific and technological projects, programs:

a- Basis:

- Research contents, workload required to achieve the goals and products of the project, program approved by the competent authority;

- Economic-technical norms issued by relevant ministries and sectors, budget allocation frameworks prescribed in this Circular, and current state policies. In cases where there are no economic-technical norms, detailed explanations must be provided for establishing the budget estimate.

b- Requirements:

- Budget estimates for projects, programs are established and explained according to each research content and linked to specific products of the projects, programs.

- Individuals assigned to lead the task, and the leading unit are responsible for establishing the budget estimate and submitting it to the competent authority for approval of the scientific and technological project, program.

3. Auditing and approving budget estimates for scientific and technological projects, programs:

a. The state management agency authorized to approve scientific and technological projects, programs is responsible for organizing the audit of budget estimates for these projects, programs according to the prescribed regulations. In cases where expenditure items do not have economic-technical norms issued by relevant ministries and sectors, the state management agency authorized to approve the projects, programs may decide necessary expenditure items and bear responsibility for its decision under the law.

b- For scientific and technological projects, programs at the ministry, provincial, and city levels with budget estimates of VND 300 million or more (for projects in the field of social sciences and humanities) and VND 600 million or more (for projects and programs in the fields of natural sciences and technology); national-level scientific and technological projects, programs with budget estimates of VND 500 million or more (for projects in the field of social sciences and humanities) and VND 1 billion or more (for projects and programs in the fields of natural sciences and technology), or complex projects, programs where the budget estimate basis is unclear, or other projects, programs deemed necessary by the state management agency authorized to approve the projects, programs to have a budget estimate auditing team, then:

- The state management agency authorized to approve the projects, programs shall establish a budget estimate auditing team for the projects, programs (including experts deeply knowledgeable about the scientific and technological fields of the projects, programs, economic/expert financial specialists, and experienced businesspeople familiar with the related fields of the projects, programs to be audited);

- The auditing team bases its assessment on the results of the advisory council's selection (or the review council's explanation of the projects, programs) advising the head of the managing agency about the total necessary funds to implement the projects, programs in accordance with the approved contents, the amount of state budget support needed, market feasibility, and expected effectiveness of the products created by the projects, programs.

4. Allocating budgets and settling accounts:

- Allocating budgets: Based on the budget estimates for scientific and technological expenses allocated by the competent authority, ministries, sectors, and localities shall allocate budgets to subordinate units as follows:

+ Budgets for activities serving the management work of authorized agencies for scientific and technological projects, programs: Allocate budgets to the leading units implementing these activities.

||| The budget for implementing scientific and technological projects and programs: Allocate the budget to the leading units responsible for implementing the projects and programs.

||| Regarding final accounts of funds: Implement according to the provisions of the State Budget Law and guiding documents.

||| The funds for projects and programs must be used for their intended purposes effectively and shall not be allocated for activities serving the management work of competent authorities concerning the projects and programs.

||| PART IV . . IMPLEMENTATION PROVISIONS

||| This Circular takes effect fifteen days from the date of publication in the Official Gazette and replaces Circular Joint Circular No. 45/2001/TTLT/BTC-BKHCNMT dated June 18, 2001, "Guidelines on Certain Financial Regulations for Scientific and Technological Tasks" issued by the Ministry of Finance and the Ministry of Science, Technology, and Environment. For projects and programs that have been approved by competent authorities before this Circular takes effect, they shall be implemented according to the current regulations at the time of approval.

||| When the national minimum wage is adjusted by the competent authority to increase by more than 50% compared to the national minimum wage stipulated in Decree No. 94/2006/NĐ-CP dated September 7, 2006, of the Government adjusting the national minimum wage, or when there is a change in the method of determining the project and program budget estimates, the Ministry of Finance and the Ministry of Science and Technology will consider adjusting and amending the budget allocation standards for projects and programs funded by the state budget accordingly.

||| Based on actual conditions within the scope of this Circular's standards, ministries, central agencies, People's Committees of provinces and centrally-administered cities shall issue specific standards for implementation within their respective ministries, central agencies, and localities.

||| During implementation, if any difficulties arise, organizations, ministries, central agencies, and localities are requested to report them to the Ministry of Finance and the Ministry of Science and Technology for resolution.