Joint Circular No. 50/1998/TTLT-BTC-BKHCNMT guiding financial management for funds recovered from scientific and technological tasks.

JOINT CIRCULAR

||| Guidelines for financial management of funds recovered from scientific and technological tasks

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||| Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the decentralization of budget management, preparation, implementation, and settlement, guiding the State Budget Law, and Decision No. 419/TTg dated July 21, 1995 on the management mechanism for scientific research and technological development activities, the Ministry of Finance issued Circular No. 32 TC/HCSN dated June 13, 1997 on the financial management of national-level 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 jointly issue the following guidelines:

Part 1:

GENERAL PROVISIONS

||| Article 1. Funds recovered from scientific and technological tasks of ministries, sectors, and localities are state revenue sources, reinvested in scientific and technological activities, managed according to the State Budget Law and the guidelines set forth in this Circular.

||| Article 2. Recovered funds shall be deposited into dedicated 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 over to the next year for continued use.

||| Article 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, submitting 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, preparing reports to submit to the Ministry of Finance.

Part II:

SPECIFIC PROVISIONS

1. Source of recovery:

||| National, ministerial, and local scientific and technological tasks utilizing recovered funds, which include annual state budget allocations subject to fund recovery, consist of:

||| - Scientific research projects and experimental implementation projects.

||| - Pilot production projects.

||| - Technology import projects.

||| - Other scientific and technological projects.

2. Content and level of recovery:

||| Clause 2.1. Contents of recoverable funds from projects with fund recovery:

||| + 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 completion.

||| + Revenue from selling fixed assets, tools, and other assets purchased for program, project, and experiment purposes upon conclusion.

||| + Other revenues (if applicable).

2.2. Level of recovery:

||| The level of fund recovery for projects with recoverable funds is stipulated between 80% and 100% of the state investment amount from the state budget or recovered funds for the project. For localities, in special cases, the Department of KHCNMT may coordinate with the Department of Finance and Price Control to request the Chairman of the Provincial People's Committee (or the People's Committee of a centrally-administered city) to consider and decide on a lower recovery rate than the general rate specified in this Circular, but not less than 50% of the state budget allocation.

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

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

||| Article 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 those 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 provisions on budget preparation, disbursement, and settlement under the State Budget Law, 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 budget estimates for recovered funds' collection and expenditure, consolidating them into the overall budget estimate for science, technology, and environment in the locality, submitted 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 signing of scientific and technological contracts, and the recovery and utilization situation reported by localities, the Ministry of KHCNMT prepares budget estimates for recovered funds' collection and expenditure at the central and national levels, consolidating them into the overall budget estimate for science, technology, and environment affairs, submitted to the Ministry of Finance. From 1999 onwards, the budget for expenditures from recovered funds is allocated together with the annual state budget according to the State Budget Law.

4.2. Revenue Collection and Submission of Recovered Funds:

||| - Centrally: The Ministry of Science, Technology, and Environment opens a dedicated 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 dedicated accounts at the provincial (or centrally-administered city) 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 Scientific and Technological 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 (for centrally governed cities). The managing authorities of the implementing units 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, approved expenditure estimates, and signed contracts, the financial authority will directly disburse funds to the units implementing Scientific and Technological Projects (or through the managing authorities of the implementing units) according to the schedule stated in the contract. For central Projects implemented in localities, the Ministry of Finance will transfer funds to the locality through the Provincial Finance and Price Departments to be disbursed to the implementing units.

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

4.4. Reporting and settlement system:

Accounting systems, forms, 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 on 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 on guiding the implementation of the decentralization, preparation, execution, and settlement of the state budget.

For centrally managed recovered funds: The leading agencies of Scientific and Technological Projects shall submit individual project settlement reports to the principal ministry, which will consolidate them and submit them to the Ministry of Finance. For centrally transferred funds managed by the Provincial Finance and Price Departments, the leading agencies of Scientific and Technological Projects shall report settlements to the Provincial Finance and Price Departments, which will consolidate and submit them to the Ministry of Finance.

For locally managed recovered funds: The implementing agencies of Scientific and Technological Projects shall submit individual project settlement reports to the principal departments, which will consolidate them and submit them to the Provincial Finance and Price Departments.

For Projects that have signed contracts and received funding from the state budget prior to 1997: For Projects using central budget sources, the implementing units shall be responsible for settling accounts with the Ministry of Science, Technology, and Environment, which will consolidate and submit them to the Ministry of Finance. For Projects using local budget sources, the implementing units shall be responsible for settling accounts with the Provincial Finance and Price Departments.

4.5. Financial inspection work:

Annually, the Ministry of Science, Technology, and Environment, and the Department 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 Scientific and Technological Projects from recovered funds. In cases where funds are misused or used inefficiently, they will recommend competent authorities to suspend the 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 Science Council - Ministry of Finance on guiding the recovery of funds for scientific and technological activities, and Circular No. 1291/KHCNMT-TC dated October 8, 1992, issued by the Joint Ministry of Science, Technology, and Environment - Ministry of Finance on guiding the establishment and use of the Science and Technology Development Fund of Ministries and Provinces; and replacing Point 6 of Part II of Circular No. 32 TC/HCSN dated June 13, 1997, issued by the Ministry of Finance on guiding the financial management of national-level science and technology programs for the period 1996-2000. It applies to the portion of funds already expended in 1996 and 1997 for experimental projects and pilot production projects under ministries and sectors. During implementation, if there are difficulties or obstacles, the relevant ministries, sectors, localities, and leading agencies of Projects should promptly reflect these issues to the Ministry of Finance and the Ministry of Science, Technology, and Environment for research and appropriate amendments.