JOINT CIRCULAR No. 50/1998/TTLT/BTC-BKHCNMT GUIDING THE FINANCIAL MANAGEMENT OF FUNDS RECOVERED FROM SCIENTIFIC AND TECHNOLOGICAL TASKS.

JOINT CIRCULAR

Guidelines for Financial Management

of 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, budget 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 "Guidelines for financial management of national science and technology programs from 1996 to 2000." To unify 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 I
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 dedicated accounts opened at the National Treasury. At the central level, the Ministry of Science, Technology, and Environment (Ministry of KHCNMT) shall be the account holder, while at the local level, the Department of Science, Technology, and Environment (Department of KHCNMT) shall be the account holder. Any unspent balance at year-end may be carried over 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 and 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 and prepare reports to submit to the Ministry of Finance.

PART II
SPECIFIC PROVISIONS

1. Source of recovery:

National, ministerial, and local-level scientific and technological tasks using recovered funds include:

Research projects and experimental implementation 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 fund recovery:

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

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 the program, project, or topic upon its conclusion.

Other income (if any).

2.2. Level of recovery:

The rate of fund recovery for projects with fund recovery is set between 80% and 100% of the state investment amount provided through 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 Central City People's Committee) to consider and decide on a lower recovery rate than the general rate stipulated in this Circular, but it must not be less than 50% of the state budget funding.

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

Specific recovery rates are specified in contracts signed between the Ministry of KHCNMT, the principal ministry, and the Departments 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 the competent authority.

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

4. Financial Management Work:

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

4.1. Budget Preparation:

AT Localities: Annually, based on the recovery potential 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 scientific, technological, and environmental funds of the locality, and submits it to the Department of Finance and Price Control and the Ministry of KHCNMT.

AT Central level: Annually, based on the recovery potential 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 the budget estimate for recovered funds' collection and expenditure at the central and national levels, consolidates it into the overall budget estimate for scientific, technological, and environmental public services, 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 State Budget Law.

4.2. Revenue Collection and Submission of Recovered Funds:

AT Central level: The Ministry of Science, Technology, and Environment opens a dedicated account at the Central 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 stipulated in the signed contracts.

AT Local level: The Departments of KHCNMT open dedicated accounts at provincial treasuries (central city treasuries) to monitor and manage recovered funds arising from local scientific and technological tasks and are responsible for implementing fund recovery according to the schedule stipulated in the signed contracts.

Units implementing Research Topics and Science and Technology Projects must recover funds, have the responsibility to submit the full amount of recovered funds according to the time specified in the contract into dedicated accounts opened by the Ministry of Science, Technology and Environment (for central units) and Provincial Departments of Science, Technology and Environment (for local units) at the State Treasury Central Office and provinces (central cities). The management agencies of units implementing Research Topics and Science and Technology Projects must recover funds and have the responsibility to urge units to perform fund recovery work in accordance with signed contracts.

4.3. Financial disbursement work from recovered funds:

Based on the recovered funds deposited into the state budget from dedicated accounts, approved budget estimates, and signed contracts, financial authorities shall directly disburse funds to units implementing Research Topics and Projects (or through the management agencies of units implementing Research Topics and Projects) according to the progress recorded in the contract. For Research Topics and Projects of the central level but implemented locally, the Ministry of Finance will transfer funds to localities for implementation through the Provincial Department of Finance and Prices to be disbursed back to the implementing units.

For Research Topics and Projects implemented over 1 (one) year, units implementing Research Topics and Projects must report the results of implementation and settle accounts for the previous year's funds before being eligible to receive funds for the following year.

4.4. Reporting and settlement system:

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

For centrally managed recovered funds: Units primarily responsible for Research Topics and Projects shall report individual settlement statements to the main managing ministry, which will compile and report the overall settlement statement to the Ministry of Finance. For centrally managed funds delegated to Provincial Departments of Finance and Prices, units primarily responsible for Research Topics and Projects shall report settlements to Provincial Departments of Finance and Prices, which will compile and report the overall settlement to the Ministry of Finance.

For locally managed recovered funds: Units implementing Research Topics and Projects shall report individual settlement statements to the main managing provincial department, which will compile and report the overall settlement to the Provincial Department of Finance and Prices.

Specifically 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, units implementing Research Topics and Projects shall be responsible for settling accounts with the Ministry of Science, Technology and Environment, which will compile and report the overall settlement to the Ministry of Finance. For those using local government funds, units implementing Research Topics and Projects shall be responsible for settling accounts with Provincial Departments of Finance and Prices.

4.5. Financial inspection work:

Annually, the Ministry of Science, Technology and Environment and Provincial Departments of Science, Technology and Environment shall coordinate with corresponding financial authorities and management agencies 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 shall recommend competent authorities to suspend the implementation of Research Topics and Projects and recover all previously allocated funds.

PART III
IMPLEMENTING PROVISIONS

This Circular takes effect fifteen days after its signing, replacing Circular No. 1308/TC-KHKT dated November 24, 1990 of the State Committee for Science and Technology - Ministry of Finance "Guidelines for the Recovery of Funds for Scientific and Technological Activities," Circular No. 1291/KHCNMT-TC dated October 8, 1992 of the Ministry of Science, Technology and Environment - Ministry of Finance "Guidelines for Establishing and Using the Fund for the Development of Science and Technology at the Ministry, Provincial, and Municipal Levels," and Point 6 of Part II of Circular No. 32 TC/HCSN dated June 13, 1997 of the Ministry of Finance "Guidelines for Managing the Financial Affairs of National Science and Technology Programs for the Period 1996-2000." It applies to both the already executed parts of the 1996 and 1997 budgets for experimental research topics and trial production projects under ministries and sectors. During implementation, if there are difficulties or obstacles, ministries, sectors, localities, and primary responsible units for 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./.