Joint Circular No. 62/TC/KHCNMT guides the management of the budget for the science, technology, and environment sector.

CIRCULAR

OF THE JOINT MINISTRY OF FINANCE - SCIENCE AND TECHNOLOGY - ENVIRONMENT DECREE NO. 62/TC-KHCNMT ON JULY 27, 1994 GUIDING
MANAGEMENT OF THE STATE BUDGET FOR THE SECTOR OF SCIENCE AND TECHNOLOGY AND ENVIRONMENT
ENVIRONMENT

Pursuant to Decree No. 35/HĐBT dated January 28, 1992 of the Council of Ministers (now the Government) on science and technology management work; Decree No. 15/CP dated March 2, 1993 of the Government on tasks, authorities, and responsibilities for state management of ministries and ministerial-level agencies; Directive No. 123/TTg dated March 27, 1993 of the Prime Minister on strengthening state budget management; Decision No. 60/TTg dated February 8, 1994 of the Prime Minister on certain policies and measures to manage the economic and social development plan for 1994;

In order to gradually bring financial management in the field of science, technology, and environment into a regular system, the Joint Ministry of Finance - Science and Technology - Environment has issued several documents such as Circular No. 1213/KHCN-TC dated September 26, 1992 "Guiding Financial Management of National Science and Technology Programs for the Period 1991-1995", Circular No. 1308/TC-KHKT dated November 24, 1990 "Guiding the Recovery of Funds for Scientific and Technological Activities", Circular No. 63/TC-KHKT dated December 11, 1990 "Guiding Financial Management for Scientific and Technological Activities at Provincial and Central City Levels"... Now, the Joint Ministry of Finance - Science and Technology - Environment guides the management of the state budget for the sector of science, technology, and environment as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1/ Based on annual state budget planning documents issued by the Ministry of Finance, the Ministry of Science and Technology and Environment will coordinate with the Ministry of Finance and the State Planning Commission to prepare and allocate the annual state budget for science, technology, and environment to relevant ministries, central agencies, provinces, and centrally-administered cities for submission to the Government for consideration and to the National Assembly for approval.

2/ Science, technology, and environmental agencies are responsible for managing, operating, and using scientific, technological, and environmental funds according to their intended purposes, financial regulations, effectively, and reporting the usage situation to higher-level management agencies and peer-level finance agencies.

3/ The Ministry of Finance is responsible for timely and fully disbursing funds to the Ministry of Science and Technology and Environment, ministries, and central agencies (central budget portion). The Department of Finance and Prices in provinces and centrally-administered cities will disburse funds to provincial and city-level science, technology, and environmental departments, and related agencies (local budget portion).4/ For expenditures from the central budget under program-targets of the science, technology, and environment sector (if any), the Ministry of Science and Technology and Environment will coordinate with the Ministry of Finance and the State Planning Commission to allocate these funds to each ministry, central agency, and province right from the beginning of the year. The Ministry of Finance will directly disburse funds to ministries, central agencies, and authorize through provincial finance departments according to approved amounts and final accounts as per Circular No. 80/TC-NSNN dated September 24, 1993 of the Ministry of Finance.

The Joint Ministry of Finance - Science and Technology - Environment will continue to study and develop financial systems, policies, and expenditure standards for scientific, technological, and environmental activities as a basis for appropriate allocation, management, and utilization according to specific conditions of the science, technology, and environment sector.

- Scientific, technological, and environmental tasks: research programs and topics, various types of projects, information, measurement standards - quality, technology transfer, industrial property, international cooperation...

II. SPECIFIC PROVISIONS

A\. PLANNING WORK

1\. Basis for Planning

When establishing annual plans, science, technology, and environment agencies must base themselves on the following grounds:

- Current national policies, financial systems, and expenditure standards.

- Approved staffing and salaries (state staff, contractual staff, salary based on rank and position, and various allowances and subsidies according to the prescribed system).

Each science, technology, and environmental agency must determine financial sources to ensure funding for all expenditure items and maximize the exploitation of non-state budget resources to support their scientific, technological, and environmental activities, specifically:

- Requirements for procurement, repair, modernization of equipment, workshops, and other needs (electricity, water, fuel, rental fees...).

2\. Content of the Financial Plan

The content of the financial plan includes two parts:

a\. Revenue Plan

- Science, technology, and environmental agencies must prepare budgets according to the current state budget classification as per Decision No. 300/TC-NSNN dated October 3, 1987 of the Ministry of Finance and supplementary guidance documents issued annually by the Ministry of Finance and the Ministry of Science and Technology and Environment.

- State budget sources include allocated state budget funds and foreign aid and cooperation (funding for seminars, training, equipment...), which must be reflected in the state budget.

- Recovery of production trials, testing, application of scientific and technological achievements, scientific research contracts, technical services... with domestic and foreign units according to the prescribed system.

- Other sources.

b\. Expenditure Plan

- Annually, science, technology, and environmental agencies must prepare financial plans together with their scientific, technological, and environmental plans and submit them to higher-level management agencies according to current forms and deadlines.

3\. Procedure for Preparation and Consolidation of Plans

- Ministries, central agencies, provincial departments, and local agencies must consolidate financial plans together with their scientific, technological, and environmental plans within their jurisdiction and submit them to the Ministry of Science and Technology and Environment (for central agencies) and provincial science, technology, and environmental departments (for local agencies). Specifically, the provincial science, technology, and environmental department's plan must be submitted to the provincial finance department for participation and unified submission to the provincial People's Committee for approval and then forwarded to the Ministry of Science and Technology and Environment.

The Ministry of Finance will disburse funds to the Ministry of Science and Technology and Environment, ministries, and central agencies for items such as salaries, administrative expenses, and costs for scientific, technological, and environmental tasks according to approved plans.

Annually, the Ministry of Science, Technology and Environment, ??

B. MANAGEMENT WORK

1/ Budget allocation and management work

a/ At the central level

Funds allocated from the state budget for science and technology programs have been approved. The Ministry of Finance will directly disburse these funds to central ministries and agencies through the State Treasury system in the form of "budget limits" and disburse them through provincial finance departments in the form of "authorized budget" to provincial science, technology, and environmental departments via the State Treasury system.

For funds allocated for anti-depreciation and equipment enhancement, the Ministry of Finance will disburse funds after the approved design estimates, pursuant to Decision No. 92/TTg dated March 7, 1994 of the Prime Minister and Circular No. 02/TTLB dated March 28, 1994 of the Joint Ministry of the State Planning Commission - Ministry of Finance and other current documents.

For the specific funds for preventing deterioration and enhancing equipment, the Ministry of Finance shall allocate the funds after the approved design budget estimate, pursuant to Decision No. 92/TTg dated March 7, 1994 of the Prime Minister and Circular No. 02/TTLB dated March 28, 1994 of the Joint Ministry of the State Planning Commission - Ministry of Finance, and other current regulations.

In cases of real necessity, the Ministry of Science, Technology and Environment will coordinate with the Ministry of Finance to adjust certain expenditure items, but not exceeding the total amount of funds announced by the Government.

If the demand for scientific, technological, and environmental activities exceeds the annual scientific, technological, and environmental plan, the Ministry of Science, Technology, and Environment shall coordinate with the Ministry of Finance and the State Planning Commission to submit to the Government for consideration and decision.

b/ at local level

The Department of Finance and Prices allocates funds to the Department of Science, Technology and Environment and other provincial departments and agencies according to approved plans.

For funds allocated for anti-degradation and equipment enhancement, the Department of Finance - Price Control will disburse them upon approval of the design budget, in accordance with Decision No. 92/TTg dated March 7, 1994 of the Prime Minister and Circular No. 02/TTLB dated March 28, 1994 of the Joint Office of the State Planning Commission and the Ministry of Finance, as well as current regulations.

2/ Management of revenues

a/ Revenue from foreign aid and cooperation

All revenues from foreign aid, cooperation, gifts, etc., in the fields of science, technology, and environment, whether in foreign currency or in kind, must be recorded in the unit's accounting books and reported quarterly and annually along with the final settlement report, in compliance with Circular No. 525/TC-TCĐN dated April 6, 1992 of the Ministry of Finance and other current regulations on the concentration of foreign currency receipts and expenditures through the state budget.

Scientific, technological, and environmental agencies need to utilize foreign currency revenues, aid, cooperation, etc., as state budget allocations. The Departments of Science, Technology, and Environment and the Ministry of Science, Technology, and Environment are responsible for consolidating and managing these revenues concurrently with state budget investments in scientific, technological, and environmental activities at both local and national levels.

b/ Revenues from testing, trials, and application of scientific and technological achievements

These revenues are managed in accordance with Circular No. 1308/TC-KHKT dated November 24, 1990 of the Joint Office of the State Science Council and the Ministry of Finance, "Guidelines for the Recovery of Funds for Scientific and Technological Activities."

3/ Financial inspection work

- Quarterly, scientific, technological, and environmental agencies must organize financial audits, close their accounting books, reconcile accounting data with the unit's inventory, actual funds withdrawn, and unwithdrawn funds at the National Treasury, prepare quarterly settlement reports, and submit them to higher-level management agencies.

- Annually, scientific management agencies cooperate with financial agencies at all levels to inspect the management and use of funds by scientific, technological, and environmental agencies. Focus on reviewing expenses such as salaries, allowances, subsidies for staff, administrative fees, scientific and technological tasks, procurement and repair of infrastructure (buildings, equipment, transportation, etc.), income and expenditure of research contracts and application of scientific and technological achievements and technical services; auditing accounting entries, quarterly and annual settlements, and the retention of original and accounting vouchers.

After inspection, a joint record should be established between the scientific management agency, the financial agency, and the inspected entity to share experiences in managing and utilizing the scientific, technological, and environmental budget.

4- Accounting organization

Scientific, technological, and environmental agencies, and national-level programs must conduct accounting according to Decision No. 257/TC-CĐKT dated June 11, 1990 of the Ministry of Finance and current regulations.

For national programs, independent accounting systems must be established separate from the unit's accounting system, collecting original and accounting vouchers alongside the program's accounting records. Original and accounting vouchers can be stored at projects under the national program's management, but project accountants must submit monthly statements of income and expenditure to the program accountant. Quarterly and annually, the program accountant must reconcile figures with project accountants and submit settlement reports to the Ministry of Science, Technology, and Environment and the Ministry of Finance.

5/ Settlement work

Based on Decision No. 257/TC-CĐKT dated June 1, 1990 of the Ministry of Finance regarding the accounting system for administrative and public service units, and Circular No. 14/TC-HCVX dated February 28, 1994 of the Ministry of Finance guiding the review and approval of annual settlement reports for administrative and public service units, scientific, technological, and environmental agencies and management agencies must prepare and consolidate quarterly and annual settlement reports.

- The Ministry of Science, Technology, and Environment and central ministries and agencies shall organize accounting and reporting of state budget funds for direct scientific research through the Ministry to the Ministry of Finance according to current regulations. At the same time, central ministries and agencies shall compile and submit settlement reports to the Ministry of Science, Technology, and Environment for consolidation.

- Provincial Departments of Science, Technology, and Environment, and units receiving state budget funds for scientific research shall be responsible for preparing and submitting settlement reports to the Department of Finance - Price Control for audit and approval, and simultaneously sending them to the Ministry of Science, Technology, and Environment for consolidation.

- For target programs (if any) funded by the Ministry of Finance to central ministries and agencies and localities, the preparation and consolidated review of settlement reports shall be carried out in accordance with Circular No. 80/TC-NSNN dated September 24, 1993 of the Ministry of Finance.

- Provincial Departments of Science, Technology, and Environment shall be responsible for jointly settling program funds (if any) with the Department of Finance - Price Control, submitting them to the Ministry of Science, Technology, and Environment for approval and consolidation and submission to the Ministry of Finance.

Agencies and units engaged in scientific, technological, and environmental activities that fail to submit quarterly and annual settlement files in the prescribed format and within the stipulated timeframe may have their settlement rejected by the finance agency, which may temporarily suspend funding for the next quarter or year.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect from August 15, 1994. During implementation, if any issues arise or difficulties occur, ministries, sectors, and localities should report them to the joint ministry for study and resolution.