Joint Circular No. 788/KHKT-TC guiding temporarily the method of disbursing funds for scientific and technological activities

JOINT CIRCULAR

Interim Guidelines on the Method for Allocating Funds for Scientific and Technological Activities 

In recent times, the Ministry of Finance - State Science and Technology Council has issued Circulars No. 33, 34/TC-KHKT regarding guidelines on expenditures for national-level scientific and technological programs, and Circular No. 1438/KHKT-TT concerning the signing of contracts in scientific research. The implementation of these regulations has gradually brought financial management of scientific and technological activities into order, but there are still some shortcomings that have not met the current requirements for financial management in scientific and technological work.

To gradually improve financial management in current scientific and technological work in accordance with the spirit of Resolution of the Sixth Plenary Session of the Central Committee (Sixth Term), creating conditions for research institutions to effectively utilize research funds, allocate capital according to schedule, volume, and results of scientific and technological research,  the Ministry of Finance and the State Science and Technology Council temporarily guide the allocation of funds for scientific and technological activities as follows:   I. GENERAL PRINCIPLES:

1. Research agencies and technical implementation agencies need to promptly review their functions, tasks, and staffing in accordance with Directive No. 199/CT dated June 25, 1988 of the Chairman of the Council of Ministers and report to higher-level management agencies for consideration.

The State Science and Technology Council will jointly with Ministries, General Departments, State Committees, etc., re-evaluate national-level and ministry-level programs and projects. Based on this, additional funding will be provided for programs and projects that yield practical benefits, while reducing funding for those that are ineffective.

2. For the time being, the Ministry of Finance will allocate funds to the State Science and Technology Council for key national-level programs and projects for the Council to organize the signing of science and technology contracts. Other scientific and technological programs and other expenses for scientific and technological activities will continue to be allocated according to current regulations.

3. The leading agency and project leader of national-level and ministry-level programs and projects shall implement the rules for signing science and technology contracts, recruitment, budget preparation, settlement, and other financial systems according to the current state regulations.

4. The State Science and Technology Council shall conduct the consolidation and examination of budget preparation and reporting of income and expenditure for key national-level programs and projects signed by the Council under current state regulations and submit them to the Ministry of Finance.

II. METHODS FOR ALLOCATING FUNDS

Based on the total amount approved by the National Assembly for scientific and technological research in the annual state budget, the State Science and Technology Council will coordinate with the Ministry of Finance to allocate financial resources for scientific and technological activities throughout the year (with quarterly projections) for Ministries, General Departments, State Committees, etc., and research funds for key national-level programs and projects based on the assessment of the progress, volume, and results of scientific and technological work from the previous year and the budget for planned activities in the current year. The Ministry of Finance will allocate funds as follows:

1. Allocate funds to the State Science and Technology Council for key national-level programs and projects signed by the Council for science and technology contracts.

The Council will transfer funds to the programs and projects through contractual mechanisms based on the prices agreed upon in the competitive bidding process. The signing of science and technology contracts through competitive bidding will follow the guidelines of the State Science and Technology Council.

2. Allocate all funds for the development and review of national standards to the General Department of Standards, Metrology and Quality Control. The General Department will conduct competitive bidding and sign contracts for the development and review of national standards with Ministries, General Departments, and institutions.

3. Allocate funds to Ministries, General Departments, State Committees, etc., as follows:

a- Funds for national-level programs and projects managed by Ministries, General Departments, etc., shall be organized by the leading Ministry or General Department and the program leadership to conduct competitive bidding and sign contracts with the main research institutions. In certain cases, if the leading Ministry or General Department requests and obtains the agreement of the State Science and Technology Council, the Ministry of Finance may allocate funds to the program leadership through the accounts of the leading Ministry or General Department to enhance responsibility and effectiveness and provide conditions for the program leaders to actively organize competitive bidding and sign contracts with the main research institutions within the total research budget allocated. The organization of competitive bidding and signing of science and technology contracts will follow the guidelines of the State Science and Technology Council.

b- Funds for other scientific and technological activities such as information on scientific and technological matters, international cooperation in scientific and technological fields, training of domestic graduate students, and industrial property activities will be allocated by the State Science and Technology Council in coordination with the Ministry of Finance according to the approved objectives and contents.

c- Support funds for ministry-level and general department-level scientific and technological programs and projects will be allocated by the State Science and Technology Council in coordination with the Ministry of Finance to Ministries and General Departments.

4. Allocate a certain percentage of the total scientific and technological funds to agencies such as the Vietnam Academy of Science, the State Social Sciences Council, and the National Atomic Energy Institute for salaries and agency operations according to assigned scientific and technological tasks (excluding national-level scientific and technological programs). If these agencies undertake national-level scientific and technological programs, they will be allocated funds according to those programs.

4. Allocate to the following agencies: Vietnam Academy of Science and Technology, Social Sciences and Humanities Council, National Atomic Energy Institute, a certain proportion of the total funding for science and technology to cover salaries and agency operations according to the assigned science and technology tasks (excluding state-level science and technology programs). If these agencies implement state-level science and technology programs, they shall be allocated funding according to those programs.

Allocate a certain amount of funding to the Ministry of Secondary Education, Vocational Training, and Trade to cover research exploration tasks, basic research, establishment of scientific schools, and new technologies under its management.

The science and technology funds allocated to the aforementioned agencies are included in the total annual budget approved by the National Assembly for scientific and technological activities.

5. During the allocation of funds for scientific and technological activities, the State Committee for Science and Technology and the Ministry of Finance will reserve a certain amount within the total annual budget for scientific and technological activities approved by the National Assembly to cover salaries and agency operations of research and development agencies that have not yet been reorganized according to the spirit of Directive No. 199/CT dated June 25, 1988, of the Council of Ministers, after being reviewed and decided by the managing agencies.

III. SOME ADDITIONAL PROVISIONSC

1. The entire process of financial plan construction from the stage of preparing project budgets, program budgets at the Ministry, General Department... to the budgets at various levels shall still be carried out in accordance with Circulars No. 33 and 34/TC-KHKT.

2. Due to changes in the method of funding distribution, implementation of competitive mechanisms, signing contracts in scientific research and technological application, the reporting and final settlement system is revised as follows:

a/ Agencies receiving contracts with the State Committee for Science and Technology shall submit final settlement reports on the funds transferred by the Committee according to the contract (including income from research) to the State Committee for Science and Technology.

b/ The State Committee for Science and Technology shall review and consolidate final settlements of funds for national key programs and projects signed by the State Committee for Science and Technology and submit them to the Ministry of Finance.

IV. IMPLEMENTATION PROVISIONS.

This Circular takes effect from July 1, 1989. The improvement of the method of funding distribution for scientific and technological activities according to this Circular has a trial nature and serves as a basis for the State Committee for Science and Technology to implement comprehensive funding and management for the entire sector of scientific and technological activities.

During the implementation of this Circular, if there are difficulties, the ministries, general departments, and research and development agencies should reflect these issues to the Joint Research Board for resolution.