Joint Circular No. 50/1998/TTLT/BTC-BKHCN&MT guides the financial management of funds recovered from scientific and technological tasks.

JOINT CIRCULAR

 JOINT CIRCULAR NO. 50/1998/TTLT-BTC-BKHCNMT OF APRIL 15, 1998 GUIDING THE MANAGEMENT OF FINANCIAL RESOURCES FOR FUNDS RECOVERED FROM SCIENTIFIC AND TECHNOLOGICAL TASKS

Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the decentralization of management, preparation, implementation, and settlement of the State budget; guiding the Law on State Budget and Decision No. 419/TTg dated July 21, 1995 on the mechanism for managing scientific research and technological development activities, the Ministry of Finance issued Circular No. 32 TC/HCSN dated June 13, 1997 guiding the financial management of national science and technology programs from 1996 to 2000. To unify the financial management of funds recovered from scientific and technological tasks, the Ministry of Finance and the Ministry of Science, Technology, and Environment issue this guidance as follows:

Part 1:

GENERAL PROVISIONS

1. Funds recovered from scientific and technological tasks of ministries, sectors, and localities are sources of revenue for the State budget, which are reinvested in scientific and technological activities and managed according to the provisions of the Law on State Budget and this Circular.

2. Recovered funds must be deposited into specialized accounts opened at the State Treasury, centrally managed by the Ministry of Science, Technology, and Environment (Ministry of KHCNMT), and locally managed by the Department of Science, Technology, and Environment (Department of KHCNMT). At year-end, any unspent balance may be carried forward to the next year for continued use.

3. Recovered funds must be used for their intended purposes, in accordance with regulations, and effectively. Quarterly and annually, the Departments of KHCNMT shall prepare reports on the collection and utilization of recovered funds in their respective localities, submit them to the Department of Finance and Price Control for consolidation and reporting according to current regulations; the Ministry of KHCNMT shall consolidate the collection and utilization of recovered funds from central units, prepare reports on the collection and utilization of recovered funds, and submit them to the Ministry of Finance.

Part II:

SPECIFIC PROVISIONS

1. Source of recovery:

National, ministerial, and local scientific and technological tasks using recovered funds include those funded annually with recoverable funds, including:

- Scientific research projects and experimental deployment projects.

- Pilot production projects.

- Technology import projects.

- Other scientific and technological projects.

2. Content and level of recovery:

2.1. Contents of recovery from projects with recoverable funds:

+ Revenue from selling products resulting from scientific and technological programs, projects, and experiments.

+ Revenue from selling waste materials during the implementation process.

+ Revenue from selling surplus materials after implementation.

+ Revenue from selling fixed assets, tools, and other assets purchased for the program, project, or experiment upon completion.

+ Other revenues (if any).

2.2. Level of recovery:

The level of fund recovery for projects with recoverable funds is set between 80% and 100% of the state investment amount provided through the state budget or recovered funds. For localities, in special cases, the Department of KHCNMT in coordination with the Department of Finance and Price Control may request the Chairman of the People's Committee of the province (city under central jurisdiction) to consider and decide on a lower recovery rate than the general rate stipulated in this Circular, but not less than 50% of the annual state budget allocation.

For technology import projects: The recovery rate is set between 70% and 100% of the state budget allocation.

Specific recovery rates are reflected in contracts signed between the Ministry of KHCNMT, the supervising ministry, and the Department of KHCNMT with the project leaders, with the participation of the corresponding financial authorities.

3. Expenditure items:

Recovered funds can be allocated for the following purposes:

- Pilot production projects.

- Urgent tasks as decided by competent authorities.

Management and recovery costs of units responsible for recovery are included in the annual budget estimates of these units and approved by competent authorities.

4. Financial Management Work:

The preparation of budget estimates, disbursement, and settlement of recovered funds are conducted according to general regulations on budget preparation, disbursement, and settlement as prescribed by the Law on State Budget, current financial regulations, and additional specific guidance as follows:

4.1. Budget Preparation:

- Locally: Annually, based on the potential for recovering funds from scientific and technological projects in the locality and the signing of scientific and technological contracts, the Department of KHCNMT prepares the budget estimate for recovered funds' collection and expenditure, consolidates it into the overall budget estimate for science, technology, and environment of the locality, and submits it to the Department of Finance and Price Control and the Ministry of KHCNMT.

- Centrally: Annually, based on the potential for recovering funds from central scientific and technological projects and the situation of recovered funds' utilization reported by localities, the Ministry of KHCNMT prepares the budget estimate for recovered funds' collection and expenditure at the central and national levels, consolidates it into the overall budget estimate for science, technology, and environment, and submits it to the Ministry of Finance. Starting from 1999, the budget for expenditures from recovered funds will be allocated together with the annual state budget according to the Law on State Budget.

4.2. Revenue Collection and Submission of Recovered Funds:

- Centrally: The Ministry of Science, Technology, and Environment opens a specialized account at the Central State Treasury to monitor and manage recovered funds arising from central scientific and technological tasks, with detailed tracking for each ministry and sector, and is responsible for implementing fund recovery according to the schedule specified in the signed contracts.

- Locally: The Departments of KHCNMT open specialized accounts at the provincial (city under central jurisdiction) State Treasury to monitor and manage recovered funds arising from local scientific and technological tasks and are responsible for implementing fund recovery according to the schedule specified in the signed contracts.

- Units implementing Research Topics and Projects must recover funds and be responsible for submitting the full recovered amount to the dedicated account opened by the Ministry of Science, Technology and Environment (for central units) or the Department of Science, Technology and Environment (for local units) at the State Treasury Central Office and provincial treasuries (central municipalities) as stipulated in the contract. The managing authorities of the units implementing Research Topics and Projects must also recover funds and urge the units to fulfill the recovery tasks according to the signed contracts.

4.3. Financial disbursement from recovered funds:

Based on the recovered funds deposited into the state budget from the dedicated account, approved expenditure estimates, and signed contracts, the financial authority will directly disburse funds to the units implementing Research Topics and Projects (or through the managing authorities of the units implementing Research Topics and Projects) according to the progress specified in the contract. For Research Topics and Projects under central management but implemented locally, the Ministry of Finance will transfer funds to the localities through the Departments of Finance and Prices to be disbursed to the implementing units.

For Research Topics and Projects lasting over 1 (one) year, the units implementing Research Topics and Projects must report on the implementation results and settle accounts for the previous year's funds before receiving further funding for the subsequent year.

4.4. Reporting and settlement system:

Accounting systems, forms, and quarterly and annual settlement procedures shall be carried out in accordance with Decision No. 999 TC/QĐCĐKT dated November 2, 1996, issued by the Minister of Finance, "Regarding the issuance of the Administrative and Public Service Accounting System," and Circular No. 09 TC/NSNN dated March 18, 1997, issued by the Ministry of Finance, "Guidelines for Implementing the Decentralization, Preparation, Execution, and Settlement of the State Budget."

For centrally managed recovered funds: The leading agencies of Research Topics and Projects shall submit individual reports and settlements to their respective ministries for consolidation and submission to the Ministry of Finance. For centrally managed funds transferred to local Departments of Finance and Prices, the leading agencies of Research Topics and Projects shall report and settle accounts with the Departments of Finance and Prices, which will consolidate and submit the settlements to the Ministry of Finance.

For locally managed recovered funds: The implementing agencies of Research Topics and Projects shall submit individual reports and settlements to their respective departments for consolidation and submission to the Departments of Finance and Prices.

For Research Topics and Projects that have signed contracts and received funds from the state budget prior to 1997: For those using central government funds, the implementing units shall be responsible for settling accounts with the Ministry of Science, Technology and Environment for consolidation and submission to the Ministry of Finance. For those using local government funds, the implementing units shall be responsible for settling accounts with the Departments of Finance and Prices.

4.5. Financial inspection work:

Annually, the Ministry of Science, Technology and Environment, and the Departments of Science, Technology and Environment will coordinate with the corresponding financial authorities and managing authorities to regularly or randomly inspect the use of funds for Research Topics and Projects from recovered funds. In cases where funds are misused or used inefficiently, they will recommend competent authorities to suspend the implementation of Research Topics and Projects and recover all previously allocated funds.

Part 3:

IMPLEMENTING PROVISIONS

This Circular takes effect 15 days after its signing, replacing Circular Joint No. 1308/TC-KHKT dated November 24, 1990, issued by the State Scientific Council - Ministry of Finance, "Guidelines for the Recovery of Funds for Scientific and Technological Activities," and Circular No. 1291/KHCNMT-TC dated October 8, 1992, issued by the Joint Ministries of Science, Technology and Environment - Ministry of Finance, "Guidelines for Establishing and Using the Science and Technology Development Fund of Ministries and Provinces"; it also replaces Point 6 of Part II of Circular No. 32 TC/HCSN dated June 13, 1997, issued by the Ministry of Finance, "Guidelines for Managing the Financial Affairs of National Science and Technology Programs for the Period 1996-2000." It applies to the portion of funds already expended in 1996 and 1997 for experimental research topics and pilot production projects under various ministries and sectors. During implementation, if there are difficulties or obstacles, the relevant ministries, sectors, localities, and leading agencies of Research Topics and Projects should promptly reflect these issues to the Ministry of Finance and the Ministry of Science, Technology and Environment for appropriate amendments and supplements.