JOINT CIRCULAR No. 62-TC-KHCNMT ON BUDGET MANAGEMENT FOR THE SCIENCE, TECHNOLOGY AND ENVIRONMENT SECTOR

JOINT CIRCULAR

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

Pursuant to Decision No. 35/HĐBT dated January 28, 1992 of the Council of Ministers (now the Government) on science and technology management work; Decision No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, 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 the management of the state budget; and Decision No. 60/TTg dated February 8, 1994 of the Prime Minister on certain policies and measures to manage the plan for economic and social development in 1994;
In order to gradually bring financial management in the field of science, technology, and environment into a regular system, the Ministry of Finance - Science, Technology and Environment has issued several documents such as Circular No. 1213/KHCN-TC dated September 26, 1992 "Guidelines for Financial Management of National Science and Technology Programs for the Period 1991-1995", Circular No. 1308/TC-KHKT dated November 24, 1990 "Guidelines for the Recovery of Funds for Scientific and Technological Activities", Circular No. 63/TC-KHKT dated December 11, 1990 "Guidelines for Financial Management of Scientific and Technological Activities at Provinces and Central Cities"... Now, the Ministry of Finance - Science, Technology and Environment guides the management of the budget for the science, technology, and environment sector 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, Technology and Environment will coordinate with the Ministry of Finance and the State Planning Commission to establish and allocate the annual science, technology, and environment budget for 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 environment agencies have the responsibility to manage, direct, and use scientific, technological, and environmental funds in accordance with their intended purposes, financial regulations, effectively, and report on fund usage 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, Technology and Environment, ministries, and central agencies (central budget portion). Provincial Departments of Finance and Prices will disburse funds to provincial Science, Technology and Environment Departments, departments, and provincial-level agencies (local budget portion).

For expenditures from the central budget under the program objectives (if any) of the science, technology, and environment sector, the Ministry of Science, 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 at the beginning of the year. The Ministry of Finance will directly disburse funds to ministries, central agencies, and authorize provincial Departments of Finance and Prices according to the approved amount and settle accounts according to Circular No. 80/TC-NSNN dated September 24, 1993 of the Ministry of Finance.

4\. The Ministry of Finance - Science, Technology and Environment will continue to study and develop financial expenditure standards and policies for scientific, technological, and environmental activities as a basis for allocation, management, and utilization in line with the specific circumstances of the science, technology, and environment sector.

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).

- Science, technology, and environment tasks: research programs and topics, project types, information, measurement standards, quality control, technology transfer, industrial property, international cooperation...

- 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

Each science, technology, and environment agency must determine financial sources to ensure funding requirements and maximize the exploitation of non-state budget resources to support its scientific, technological, and environmental activities, specifically:

- 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

- Science, technology, and environment agencies must prepare expenditure plans according to the current state budget classification as decided in 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, Technology and Environment.

3\. Procedure for Preparation and Consolidation of Plans

- Annually, science, technology, and environment agencies are responsible for preparing financial plans along with science, technology, and environment plans and submitting them to higher-level management agencies according to the current forms and deadlines.

- Ministries, central agencies, provincial departments, and provincial-level agencies are responsible for consolidating financial plans together with science, technology, and environment plans within their jurisdiction and submitting them to the Ministry of Science, Technology and Environment (for central agencies) and provincial Science, Technology and Environment Departments (for local agencies). Specifically, the provincial Science, Technology and Environment Department's plan should be submitted to the provincial Department of Finance and Prices for participation and agreement before being submitted to the People's Committee of the province for approval and then sent to the Ministry of Science, Technology and Environment.

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

B. MANAGEMENT WORK

1/ Budget allocation and management work

a/ At the central level

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

Funds allocated from the State budget for the target programs of science and technology have been approved. The Ministry of Finance will directly allocate these funds to central ministries and agencies through the form of "budget limit" via the State Treasury system and allocate funds through the form of "authorized budget" via the Department of Finance and Prices, which then allocates funds to the Department of Science, Technology and Environment via the State Treasury system.

For funds aimed at preventing deterioration and enhancing equipment, the Ministry of Finance will allocate funds after the approved design budget, 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 Office of the State Planning Committee - Ministry of Finance and 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 plan, the Ministry of Science, Technology and Environment will coordinate with the Ministry of Finance and the State Planning Committee to submit to the Government for consideration and decision.

b/ At the 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 aimed at preventing deterioration and enhancing equipment, the Department of Finance and Prices will allocate funds after the approved 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 Committee - Ministry of Finance and 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 final accounts according to Circular No. 525/TC-TCĐN dated April 6, 1992 of the Ministry of Finance and other current regulations regarding the concentration of foreign currency receipts and expenditures through the State budget.

Scientific, technological, and environmental agencies need to use foreign currency revenues, aid, cooperation, etc., as state budget funds. 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 according to Circular No. 1308/TC-KHKT dated November 24, 1990 of the Joint Office of the State Science Council - Ministry of Finance "Guidelines on the recovery of funds for scientific and technological activities."

3/ Financial inspection work

- Quarterly, scientific, technological, and environmental agencies organize financial inspections, close their accounting books, reconcile accounting records with unit inventory, actual withdrawn funds, and unwithdrawn funds at the State Treasury, and prepare quarterly settlement reports to be submitted 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 inspecting items such as salary payments, allowances, subsidies for staff, management fees, scientific, technological, and environmental task expenses, procurement and repair of infrastructure (buildings, equipment, transportation means), research and technology contract revenues and expenditures, application of scientific and technological achievements, technical service revenues and expenditures; inspect accounting entries, quarterly and annual settlement statements, and the retention of original and accounting vouchers.

After inspection, a record should be established between the scientific management agency, the financial agency, and the inspected unit to jointly draw lessons in the management and use of the science, technology, and environment 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-level programs, independent accounting systems must be established separate from the unit's accounting system, collecting original and accounting vouchers attached to the program's accounting books. Original and accounting vouchers can be stored at projects under the national program's management, but project accountants must prepare monthly income and expenditure statements for each project and send them to the program accountant. Quarterly and annually, the program accountant must reconcile income and expenditure figures with project accountants and submit final 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 on the accounting system for administrative and public institutions, and Circular No. 14/TC-HCVX dated February 28, 1994 of the Ministry of Finance guiding the review and approval of annual settlements for administrative and public institutions, 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 organize accounting and settlement work for direct state budget allocations for scientific research sent to the Ministry of Finance according to current regulations. At the same time, central ministries and agencies compile and submit settlement reports to the Ministry of Science, Technology and Environment for consolidation.

- The Departments of Science, Technology and Environment, and units receiving state budget funds for scientific research in provinces and cities shall be responsible for preparing and submitting final settlement reports to the Department of Finance - Price Control for review and approval of final settlements, while 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 ministries, central agencies, and localities, the preparation and review of consolidated final settlement reports shall be carried out in accordance with Circular No. 80/TC-NSNN dated September 24, 1993 issued by the Ministry of Finance.

- The Departments of Science, Technology and Environment shall be responsible for settling the program target funds (if any) together with the Department of Finance - Price Control, and submitting them to the Ministry of Science, Technology and Environment for approval and consolidation, which will then be forwarded to the Ministry of Finance.

If agencies and units in science, technology and environment prepare quarterly and annual final settlement files that are incomplete or submit them beyond the prescribed time limit, the financial authority has the right to refuse acceptance of the final settlement and 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.