JOINT CIRCULAR No. 79/2014/TTLT-BTC-BKHCN GUIDING THE MANAGEMENT OF FINANCIAL RESOURCES FOR THE NATIONAL TECHNOLOGY INNOVATION PROGRAM UNTIL 2020

JOINT CIRCULAR

Guidelines for Financial Management of the National Technology Innovation Program until 2020

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 20/2013/NĐ-CP dated February 26, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Implementing Decision No. 677/QD-TTg dated May 10, 2011 of the Prime Minister approving the National Technology Innovation Program until 2020;

The Minister of Finance and the Minister of Science and Technology issue this Joint Circular to guide financial management of the National Technology Innovation Program until 2020 (hereinafter referred to as the Program).

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

This Circular guides financial management of the National Technology Innovation Program until 2020 (hereinafter referred to as the Program) according to the contents and tasks specified in Decision No. 677/QD-TTg dated May 10, 2011 of the Prime Minister, excluding tasks that are considered for funding, loans, and loan guarantees from funds in the field of science and technology.

This Circular applies to organizations, individuals, enterprises implementing tasks within the Program and agencies managing the Program.

Article 2. Financial Resources for Implementing the Programme

Financial resources for implementing the Programme shall be secured from the following sources:

1. The National Technology Innovation Fund;

2. Budget funds from the State;

3. Funds from organizations, individuals, enterprises:

a) Legal capital of organizations, individuals, enterprises;

b) Enterprise Science and Technology Development Fund;

c) Funds for technological innovation investment by enterprises.

4. Credit capital from the Vietnam Development Bank, Commercial Banks, and other credit institutions.

5. Funds from other lawful sources.

Article 3. Principles of Mobilizing Financial Resources

1. Tasks under the Program must have a plan for mobilizing financial resources, specifying the full requirements according to each source of funds mentioned in Article 2 of this Circular, and clearly explaining the ability to mobilize funds to implement the project.

2. The plan for mobilizing financial resources must ensure feasibility:

a) Budget funds must have a written opinion from the competent state management agency regarding the source of funds.

b) Non-budget funds must be confirmed by financial and credit institutions.

Article 4. Principles of Using State Budget Funds

1. Prioritize and allocate sufficient funds from the National Technology Innovation Fund and budget funds to support tasks under the Program that have been approved by the competent authority.

2. For the portion of budget support funds planned according to types of capital and phased investment throughout the implementation period; they are allocated and utilized according to the progress and structure in the approved budget estimate. The process of preparing the budget estimate, allocation, utilization, and settlement of budget support funds follows the State Budget Law, the provisions of this Circular, and related documents.

3. For the portion of support funds from the National Technology Innovation Fund, implementation shall follow the guidance documents of the National Technology Innovation Fund ensuring compliance with current financial management regulations.

4. Organizations and individuals using support funds with a state budget origin to implement tasks under the Program must ensure the purpose, comply with regulations, and be subject to inspection and supervision by the competent management authority as stipulated in this Circular and related documents.

Article 5. Principles for the use of non-state budget funds

The organization responsible for tasks under the Program shall be responsible for using and disbursing non-state budget funds according to the plan for mobilizing financial resources to implement the tasks that have been approved.

Chapter II

SPECIFIC PROVISIONS

Article 6. Content and levels of support and sponsorship for tasks under the Program

1. For scientific research and technological development tasks related to the national technology map project; developing technology roadmaps and innovation roadmaps for industries and sectors; building databases on new technologies, advanced technologies, and technology experts, the state budget will provide maximum support of up to 100% of the funding for implementing the task approved by the competent authority. The content and level of support for implementing the task shall be carried out in accordance with current laws governing scientific and technological tasks funded by the state budget.

2. For training tasks on technology management, technology governance, and updating new technologies for engineers, technicians, and managers:

a) The state budget will provide maximum support of up to 100% of the funding for organizing training activities on technology management, technology governance, and updating new technologies for engineers, technicians, and managers in public units and organizations, and up to a maximum of 50% of the total training activity funding for businesses, units, and organizations outside the state sector. The content and expenditure levels shall be implemented in accordance with Circular No. 139/2010/TT-BTC dated September 21, 2010, issued by the Ministry of Finance, which stipulates the preparation of budgets, management, and use of state budget funds for training and capacity building for civil servants, and Circular No. 05/2011/TTLT-BKHĐT-BTC dated March 31, 2011, jointly issued by the Ministry of Planning and Investment and the Ministry of Finance, providing guidance on training and capacity building for human resources in small and medium-sized enterprises.

b) In addition to the above provisions, the state budget will support travel expenses, accommodation costs, and living allowances for foreign experts participating in training activities on technology management, technology governance, and updating new technologies for engineers, technicians, and business managers. The expenditure content applies to category C guests as stipulated in Circular No. 01/2010/TT-BTC dated January 6, 2010, issued by the Ministry of Finance, regarding the regulations on expenditures for receiving foreign guests for work in Vietnam, organizing international conferences and seminars in Vietnam, and hosting domestic guests.

The Ministry of Science and Technology is responsible for selecting foreign experts to participate in training activities on technology management, technology governance, and updating new technologies for engineers, technicians, and business managers.

3. For technology incubation tasks, business incubation tasks in the technology sector; creating an environment for technology incubation and business incubation in the technology sector; establishing technology incubation bases and science and technology business incubation bases; supporting organizations, individuals, and research groups with potential or outstanding research results at universities, colleges, and research institutes shall be implemented in accordance with Decision No. 592/QĐ-TTg dated May 22, 2012, issued by the Prime Minister approving the Program to support the development of science and technology businesses and public science and technology organizations implementing self-management mechanisms and responsibility, and guiding documents.

4. For tasks supporting investment in production of products based on new technologies, advanced technologies; technological innovation for traditional trades and craft villages; applying advanced technologies in agriculture.

a) Support up to a maximum of 50% of the total investment cost (excluding the residual value or depreciation costs of existing equipment and factory buildings included in the total investment cost) for conducting trial production activities. For trial production projects in the agricultural sector implemented in areas with difficult socio-economic conditions as stipulated in Decision No. 30/2007/QĐ-TTg dated March 5, 2007, issued by the Prime Minister, the support can reach up to 70% of the total investment cost of the entire project. The content of support shall be carried out in accordance with Joint Circular No. 22/2011/TTLT-BTC-BKHCN dated February 21, 2011, guiding financial management for trial production projects supported by the state budget, and the provisions of this Circular.

b) Support up to a maximum of 50% of labor costs for scientific staff and technical personnel directly involved in evaluating and valuing technology; researching, innovating, and perfecting technological processes and scientific and technological solutions; testing, analyzing, inspecting, and evaluating product quality until the completion of the first batch of products.

c) Support up to a maximum of 30% of the cost of purchasing materials, raw materials, fuel, measuring and analytical equipment during the trial production and manufacturing process of the first batch of products from the production line. For tasks in the agricultural sector implemented in areas with difficult socio-economic conditions as stipulated in Decision No. 30/2007/QĐ-TTg dated March 5, 2007, issued by the Prime Minister, the maximum support rate is applied up to 50%.

d) Provide partial or full funding for technology transfer activities within tasks under the Program in accordance with Articles 7, 12, and 18 of the Law on Technology Transfer. The level of support shall be carried out in accordance with the management regime documents of the National Innovation Fund.

đ) The funds for implementing the tasks and contents specified in points a, b, c, and d of Clause 4 here shall be prioritized and concentrated from the National Innovation Fund.

5. For research tasks on mastering and applying advanced technologies in the production of key products, important products, national products; searching for, discovering, mastering, and applying source technologies, core technologies; researching, trial producing, and applying advanced technologies, producing new products, changing technological processes.

a) Support up to 100% of funding costs for implementing research topics aimed at mastering, developing, and creating technology including: adapting imported technology, technology transferred, improving technology, decoding technology, exploiting inventions, and creating new technology; research and development activities with high economic, social, national defense, security, and environmental benefits.

b) Support funding for the following contents:

- Purchasing rights to ownership and use of technology; plant and animal breeds; technical equipment, technical documents, intellectual property information; purchasing software for research, design, simulation; importing technology, machinery, equipment, sample products for research, mastery, development, and creation of technology according to signed contracts; support for technology transfer as stipulated in Point d, Clause 4, Article of this Law.

- Searching for information on technology and technological secrets; hiring domestic and foreign experts for analysis, evaluation, valuation of technology, and participation in tasks.

c) The funding support for implementation shall be prioritized and concentrated from the National Science and Technology Innovation Fund.

6. For projects constructing infrastructure laboratories; projects investing to enhance the capacity of local science and technology application centers.

a) Projects constructing infrastructure laboratories shall be carried out in accordance with current laws regarding project establishment, construction, approval, and implementation in the field of science and technology.

b) Projects investing to enhance the capacity of local science and technology application centers in provinces and centrally-administered cities shall be implemented in accordance with the guidelines set forth in Decision No. 317/QĐ-TTg dated March 15, 2012 of the Prime Minister approving the Project to Enhance the Capacity of Local Science and Technology Application Centers and Technical Standard Measurement Quality Centers, and related guiding documents.

Article 7. Contents of State Budget Expenditure for the Common Activities of the Program

1. Expenditure for the National Science and Technology Innovation Program Steering Committee (hereinafter referred to as the Steering Committee):

a) Expenditure for organizing regular and extraordinary meetings of the Steering Committee;

b) Expenditure for organizing inspection and supervision teams, organizing mid-term and final evaluations of the Program's results;

c) Expenditure for remuneration of the Steering Committee;

d) Other expenditures of the Steering Committee.

2. Expenditure for the National Science and Technology Innovation Program Management Board (hereinafter referred to as the Management Board):

a) Monthly payment for members of the Management Board;

b) Expenditure for communication and office supplies;

c) Expenditure for renting means of transportation for work purposes, travel expenses;

d) Expenditure for organizing scientific and technological councils;

đ) Expenditure for organizing the determination of tasks; selecting and directly assigning organizations, individuals, enterprises to implement; inspecting, auditing, supervising, evaluating acceptance, liquidation of tasks; searching for and identifying potential organizations, individuals, research groups or those with outstanding research results at universities, colleges, research institutes;

e) Expenditure for departure and arrival;

g) Expenditure for information dissemination, conferences, scientific seminars, mid-term and final evaluations of the Program;

h) Other expenditures of the Management Board.

3. Expenditure for the Office of National Science and Technology Programs (hereinafter referred to as the Office of National Programs):

a) Salaries, wages, and other expenditures based on salaries for staff of the Office of National Programs;

b) Expenditures for common program tasks;

c) Expenditure for organizing the determination of tasks; selecting and directly assigning organizations, individuals, enterprises to implement; inspecting, auditing, supervising, evaluating acceptance, liquidation of tasks;

d) Expenditure for travel expenses, conferences, scientific seminars, organizing mid-term and final evaluations of the Program, compiling and printing specialized books, Program results;

đ) Expenditure for information dissemination about Program activities;

e) Expenditure for housing, electricity, water, communication, office supplies for the activities of the Office of National Programs;

g) Expenditure for fuel, renting means of transportation;

h) Expenses for purchasing and repairing infrastructure and equipment;

i) Expenses for departure and arrival;

k) Other expenses.

4. Funding for the common activities of the Program mentioned above shall be allocated to the Office of National Programs under the Ministry of Science and Technology for management and use in accordance with the provisions of the law.

Article 8. The level of state budget expenditure for the common activities of the Program

1. The level of remuneration for the responsibility of members of the Steering Committee:

a) Chairman of the Steering Committee: VND 500,000/person/month;

b) Members of the Steering Committee: VND 400,000/person/month.

2. The level of monthly payment for members of the Head Management Board:

a) Head Manager: VND 5,000,000/month;

b) Deputy Head Manager, Secretary Member: VND 4,500,000/month;

c) Member: VND 4,000,000/month.

3. Other expenditure items prescribed in Article 7 of this Circular shall be applied in accordance with current laws and regulations on state budget expenditure.

Article 9. Preparation of Budget Estimates, Allocation, and Transfer of Budget Estimates for Implementing the Program

The preparation of budget estimates, allocation, and transfer of state budget estimates from development investment funds, science and technology public service funds, and other sources derived from the state budget for the Program shall be carried out in accordance with the State Budget Law, current guiding documents, and the following specific guidelines:

1. Annually, at the time of preparing the state budget revenue and expenditure estimates, units assigned to implement the Program's tasks shall base their budget estimates for funding the Program's projects on approved Program tasks and the guidance provided in this Circular, submit them to the competent authority for consolidation and approval, and simultaneously send them to the Ministry of Science and Technology for consolidation and coordination.

2. For expenses managed directly by the Ministry of Science and Technology, expenses for the Program Steering Committee's operations, general operational expenses serving the Program's management work, and expenses for the National Program Office's operations, the National Program Office shall prepare the budget estimate according to current laws and send it to the Ministry of Science and Technology for consolidation and annual budget allocation plan submission to the Ministry of Finance in accordance with the State Budget Law.

3. The allocation and transfer of budget estimates shall be carried out in accordance with current financial management and decentralized state budget regulations.

Article 10. Disbursement of State Budget Support Funds for Tasks under the Program

1. For tasks implemented by Ministries and Central Agencies

a) Opening accounts, receiving funds, and controlling expenditures

- For projects directly managed by the Ministry of Science and Technology, the National Program Office shall open a budget account at the State Treasury to receive funds for implementing projects directly managed by the Ministry of Science and Technology; the Program Steering Committee's operations; general operations, projects serving the Program's management work, and the National Program Office's operations serving the Program's management work. The National Program Office shall be responsible for controlling expenditures and bear legal responsibility for the legality, compliance, documentation, and vouchers of the project's main organizing body; and carry out settlement and finalization according to current laws.

The State Treasury shall control according to the terms agreed upon in the project implementation contracts, without controlling the deposit accounts opened by the project's main organizing body at the State Treasury; nor will it control detailed expenditure records of the project's main organizing body.

- For projects managed by other Ministries and sectors, the managing Ministries and sectors shall allocate and transfer the budget estimates for implementing projects to the organizing bodies and individuals in accordance with current state budget management regulations.

- The organizing bodies and individuals implementing projects shall open accounts at the State Treasury where transactions take place to receive project implementation funds. They shall bear full responsibility for their own expenditure decisions and be subject to inspection and supervision by central Ministries and agencies and local authorities regarding the use and settlement of project implementation funds. For projects directly managed by the Ministry of Science and Technology, the organizing bodies and individuals implementing projects shall bear full responsibility for their own expenditure decisions and be subject to inspection and supervision by the National Program Offices regarding the use and settlement of project implementation funds.

- The State Treasury shall control state budget expenditures at the budget account of the state budget using unit according to Circular No. 161/2012/TT-BTC dated October 2, 2012, of the Ministry of Finance on the system of controlling and settling state budget expenditures through the State Treasury.

b) Advance payments for tasks under the Program:

- First advance payment:

When making an advance payment, the state budget using unit shall withdraw the budget estimate to make the first advance payment to the main organizing body of the task up to a maximum of 100% of the allocated budget estimate according to the approved annual plan, but not exceeding 50% of the total approved budget from the state budget according to the signed contract with the main organizing body. The first advance payment application documents sent to the State Treasury include: the annual budget estimate granted by the competent authority; the state budget withdrawal form (advance payment) according to regulations; the task implementation contract signed between the Ministry, central agency, and the main organizing body and head of the task.

- Subsequent advance payments:

Based on progress reports, workload completion, and the use of resources by the main organizing body of the task, the Ministry, central agency shall organize inspections and evaluations of the progress, workload completion, and use of project implementation funds.

Advance funding for subsequent phases may only be implemented for tasks that have at least 50% of the previously advanced funds settled in payment documents, without violating current state laws related to the organization and implementation of tasks, and ensuring that the total outstanding advance does not exceed 50% of the total approved budget from the state treasury according to the signed contract (except in cases where equipment procurement has incomplete settlement procedures due to objective reasons confirmed by the Ministry or sector based on the proposal of the leading organization of the task). The documents for subsequent advances submitted to the State Treasury include: the annual state budget allocation; the request for state budget allocation (advance); the payment settlement documents for at least 50% of the previously advanced funds that have not yet been settled.

c) Settlement of advance funding:

- When settling advance funding, the state budget using unit sends the advance payment settlement documents to the State Treasury where transactions are conducted. The advance payment settlement documents include: the advance payment settlement request from the Ministry or central agency; confirmation of completed work volume; a detailed list of expenses for completed work items prepared by the leading agency and confirmed by the Ministry or central agency.

- At the end of the task implementation period, the state budget using unit must settle the advance funding with the State Treasury. If within six months from the end date of the task implementation period, the state budget using unit fails to settle the advance funding with the State Treasury, the Ministry of Finance will recover it by reducing the next year's budget allocation of the central ministry or agency managing the state budget using unit.

d) The use of state budget support funds for task implementation must be consistent with the structure between state budget funds and funds raised from outside the state budget for task implementation as approved. In cases where the contribution funds from sources outside the state budget of the leading organization of the task do not meet the commitments in the contract, the state budget support portion will be reduced accordingly based on the ratio of external budget contributions.

đ) The leading organization of the task is responsible for using the advanced funds for their intended purpose and in accordance with regulations. If the advanced funds are misused or not used in accordance with regulations, the budget management unit is responsible for recovering and returning them to the state treasury.

2. For tasks managed by localities from local budgets: they shall be implemented in accordance with the provisions of the State Budget Law.

Article 11. Regarding the common operating funds of the Program

The common operating funds of the Program are directly implemented at the National Program Office and follow the current regulations applicable to level III budget units using state funds. The State Treasury implements expenditure control in accordance with Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Ministry of Finance, concerning the system of control and settlement of state budget expenditures through the State Treasury.

Article 12. Regarding the investment development funding supported from the state budget, from the National Science and Technology Innovation Fund, and other sources of capital

1. The management and settlement of investment project funding under the Program shall be carried out in accordance with Circular No. 86/2011/TT-BTC dated June 17, 2011, issued by the Ministry of Finance, on the management and settlement of investment capital and operational capital with investment characteristics from the state budget, and any subsequent amendments and supplements thereto (if any).

2. The management and utilization of support funding from the National Science and Technology Innovation Fund and other funds (if any) shall be carried out in accordance with the financial management regulations of such funds.

3. The disbursement, advance payment, and settlement of other funding sources shall be implemented in accordance with current laws governing the management of such funding sources.

Article 13. Procurement, management, and use of assets funded by the state budget

The procurement, management, use, and disposal of assets for tasks under the Programs funded by the state budget shall be carried out in accordance with current laws governing the management and use of state assets.

Article 14. Inspection and handling of violations

1. Annually, the Ministry of Science and Technology, central ministries and agencies, localities, and the Ministry of Finance shall regularly or suddenly inspect the implementation, management, use, and final settlement of funding for tasks under the Program.

2. In cases where the organization responsible for the task misuses funding from the state budget for purposes other than intended or does not comply with regulations, consideration shall be given to stopping the disbursement of state budget funding and deciding on handling according to current laws.

Article 15. Final Settlement Reports

The work of reporting and final settlement of funding from the state budget for the execution of Program tasks shall be carried out in accordance with current laws and specific guidelines as follows:

1. Final Settlement Report on Funding for Tasks Under the Program

a) For ongoing tasks:

Annually, based on the actual funding used and the workload completed in the year, central ministries and agencies and localities shall report on the receipt and use of funding for tasks under the Program to the Ministry of Science and Technology and the Ministry of Finance for monitoring and coordination.

b) For completed tasks:

- Central ministries and agencies and localities shall be responsible for reviewing and approving the final settlement of funding for tasks they oversee within six months from the date the task ends, as decided by the competent authority.

- For tasks directly managed by the Ministry of Science and Technology, the National Program Office shall be responsible for reviewing and approving the final settlement of funding for these tasks within six months from the date the task ends, as decided by the competent authority, and consolidating this into the final settlement report of the National Program Office to be submitted to the Ministry of Science and Technology. The Ministry of Science and Technology shall be responsible for reviewing and approving the final settlement of funding for the National Program Office, and consolidating this into the overall final settlement of the Ministry of Science and Technology.

- Financial records and expenditure vouchers for tasks under the Program shall be established, managed, and stored at the organization overseeing the task in accordance with regulations.

2. Final Settlement Report on Common Program Activities Funding

a) Annually, the National Program Office shall submit a final settlement report for review and approval by the Ministry of Science and Technology in accordance with the regulations for a third-level budget unit.

b) Financial records and expenditure vouchers for common Program activities funding shall be managed and retained in accordance with regulations.

3. For tasks using development investment funding and other funding sources, the final settlement shall be carried out in accordance with current laws.

4. For tasks under the Program using funding from the National Science and Technology Innovation Fund and other funds (if any), as stipulated in Article 2 of this Circular, the final settlement of funding for the execution of tasks shall be carried out in accordance with the regulations of such funds.

Chapter III

IMPLEMENTING PROVISIONS

Article 16. Effective Date

This Circular takes effect from August 4, 2014.

Article 17. Implementation Organization

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Science and Technology to guide and organize the implementation of this Circular.

2. For tasks under the Program that have high effectiveness and significant impact on the economy, society, national defense, and security, the level of support from the state budget may be higher than specified in this Circular, proposed by the Ministry of Science and Technology, with the agreement of the Ministry of Finance and the Ministry of Planning and Investment for consideration and decision.

3. During the implementation process, if there are difficulties or obstacles, they should be reported to the Ministry of Finance and the Ministry of Science and Technology for research and appropriate amendment and supplementation./.