Joint Circular No. 93/2006/TTLT/BTC-BKHCN guiding the system of allocated funds for scientific and technological projects funded by the state budget.

CONSOLIDATED DOCUMENT JOINT CIRCULAR

GUIDING THE SYSTEM OF ALLOCATING RESEARCH AND DEVELOPMENT FUNDS FOR SCIENTIFIC AND TECHNOLOGICAL TOPICS AND PROJECTS

USING STATE BUDGET

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

Pursuant to Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government stipulating the mechanism of self-management and self-responsibility for public scientific and technological organizations;

Pursuant to Decision No. 272/2003/QĐ-TTg dated December 31, 2003 of the Prime Minister approving the Strategy for Scientific and Technological Development of Vietnam until 2010 and Decision No. 171/2004/QĐ-TTg dated September 28, 2004 approving the Project on Reforming the Management Mechanism for Science and Technology;

The Ministry of Finance and the Ministry of Science and Technology jointly issue guidelines on the system of allocating research and development funds for scientific and technological topics and projects using state budget as follows:

I. GENERAL PROVISIONS

1. Scope of application: Organizations and individuals entrusted by competent authorities with the responsibility of leading (for organizations) or heading (for individuals) scientific and technological topics and projects using state budget (hereinafter referred to as topics and projects) through selection or direct assignment.

2. Scope of application: Topics and projects using state budget in fields of science and technology, natural sciences, social sciences, and humanities (including national-level topics and projects; ministry-level topics and projects; provincial-level topics and projects - collectively referred to as ministry and provincial-level topics and projects) which have been approved by competent authorities regarding objectives, contents, requirements for research products and project budgets.

3. Allocating research and development funds for topics and projects means granting autonomy to leading organizations and heads in utilizing approved project budgets, linked with responsibilities for research outcomes and technological development results aimed at achieving the highest goals and results.

4. Procedures for establishing, distributing, and assigning state budget expenditure estimates for leading organizations of topics and projects shall be carried out according to current regulations of the Law on State Budget.

5. Settlement of project funds shall be conducted according to current regulations; for topics and projects implemented over multiple years, leading organizations and heads shall settle annually within the fiscal year for received and expended funds. Upon completion of topics and projects, cumulative settlement from the first year of implementation to the reporting year shall be compiled.

6. Definitions

a. Savings funds as defined in this Circular refer to the difference between the total approved budget of topics and projects and the actual expenditure settled after completion of assigned tasks, evaluated and accepted at the management level of topics and projects at "Achieved" level or higher.

b. Uncompleted topics and projects refer to those falling under any of the following categories:

- Suspended during implementation due to violations or inability to complete tasks as decided by the competent authority approving the topic or project;

- Having results evaluated and accepted at "Not Achieved" level by the acceptance council at the management level of topics and projects and not permitted by the competent authority approving the topic or project to extend the implementation period to improve results.

c. Determination of evaluation and acceptance levels A, B, C and Not Achieved for topics and projects is based on and applied according to Decision No. 13/QĐ-BKHCN dated May 25, 2004 of the Minister of Science and Technology on the issuance of the "Regulations on Evaluation and Acceptance of National-Level Scientific and Technological Topics".

II. SPECIFIC PROVISIONS

1. Contents of expenses allocated to organizations and individuals leading topics and projects include:

a. Expenses for remuneration of scientific and technical staff involved in research and technological development activities; fees for experts reviewing, criticizing, and evaluating (domestic and foreign); other labor remuneration for directly participating in topics and projects; the amount of such expenses shall be implemented according to Clause a, Section 4 of this Article.

b. Expenses for materials, chemicals, raw materials necessary for experiments and tests (with economic and technical norms issued by relevant ministries and sectors); purchase of literature, data, survey information, reference books, technical manuals, technological secrets, professional materials, inexpensive consumable tools, labor protection equipment, etc., directly serving the research and technological development activities of topics and projects;

c. Expenses for training support, technology transfer, dissemination of research results; domestic travel expenses; entry fees; scientific conferences and seminars of topics and projects; office supplies, printing, information, communication; translation of documents from foreign languages; compilation and printing of specialized books for dissemination within the scope of topics and projects; registration fees for intellectual property rights protection for research and technological development results (if applicable); advertising, marketing, and trade promotion activities for project products (for topics and projects with such activities and included in the approved budget by competent authorities);

d. Other expenses directly serving the research and technological development activities of topics and projects.

2. Contents of expenses not allocated to organizations and individuals leading topics and projects include:

a. Expenses for materials, chemicals, raw materials (without economic and technical norms issued by relevant ministries and sectors) for experiments and tests serving the research and technological development needs of topics and projects.

b. Exit fees (if any).

c. Expenses for purchasing new essential fixed assets and repairing technical facilities directly serving the research and technological development activities of topics and projects.

d. Leasing, depreciation (if applicable) of machinery, equipment, and workshops participating in implementing the research topic or project.

3. Establishing and approving the budget estimate for the research topic or project:

a. Establishing the budget estimate:

- Basis for establishing the budget estimate:

+ The research contents of the research topic or project that have been approved by the competent authority.

+ Economic and technical norms issued by relevant ministries and sectors, and the current state expenditure regulations. In cases where there are no economic and technical norms, detailed explanations must be provided regarding the basis for establishing the budget estimate.

- The budget estimate for the research topic or project must be linked to specific research contents and products; clear explanations must be provided regarding the basis for establishing the budget estimate according to each work content.

- The head of the research topic or project shall establish a detailed budget estimate for the research topic or project according to the expenditure items specified in Points 1 and 2 of Section II above, report to the leading organization for submission to the competent authority for approval. For expenditure items assigned on a cost-reimbursement basis, the budget estimate should be included in a different category of expenditure; for expenditure items not assigned on a cost-reimbursement basis, the budget estimate should be included in the corresponding categories according to the national budget classification.

b. Approving the budget estimate:

The state management agency with the authority to approve the research topic or project is responsible for organizing the review and approving the budget estimate for the research topic or project in accordance with the prescribed regulations and norms. In cases where expenditures for materials, chemicals, raw materials do not have economic and technical norms issued by relevant ministries and sectors, the state management agency with the authority to approve the research topic or project shall decide on the budget estimate for these expenditure items and bear responsibility for its decision.

4. Using the budget for the research topic or project:

The approved and allocated budget estimate for each research topic or project is the maximum amount for implementing the research topic or project. Within the total budget estimate for the research topic or project and based on the unified financial expenditure regulations of the research topic or project agreed upon with the head of the leading organization, the head of the research topic or project has autonomy in using the approved budget estimate to organize the implementation of the research topic or project according to the following provisions:

a. For expenditure items assigned on a cost-reimbursement basis:

- For expenditure items related to payment of remuneration for scientific and technical staff, experts reviewing, critiquing, evaluating, and other direct participants in the research topic or project; scientific conference expenses: The head of the research topic or project may decide on higher or lower expenditure levels than those prescribed by the state, depending on the quality and effectiveness of the commissioned research work.

- For domestic travel expense expenditure items: The head of the research topic or project may decide on higher or lower levels of reimbursement for travel expenses than the current state regulations for officials and civil servants when traveling, in accordance with the conditions and specific provisions of the leading organization regarding travel expense expenditure items.

- For expenditure items related to information, communication, books, reference materials, office supplies, materials, chemicals, raw materials, incoming shipments, support payments (if any), and other direct service expenditure items for the research topic or project: The head of the research topic or project may proactively implement these expenditure items based on the requirements of the research topic or project, aiming for economy, efficiency, and compliance with actual business activities arising during the implementation of the research topic or project.

b. For expenditure items not assigned on a cost-reimbursement basis: The head of the research topic or project manages and expends funds according to the current state regulations within the scope of the approved budget estimate.

c. Adjusting the budget estimates for expenditure items of the research topic or project:

- For budget estimates of expenditure items assigned on a cost-reimbursement basis: Within the total allocated budget estimate, the head of the research topic or project may adjust the budget estimates between expenditure items according to the requirements of scientific research and technological development work.

- For budget estimates of expenditure items not assigned on a cost-reimbursement basis: In necessary cases, adjustments to the budget estimates between expenditure items can be made after obtaining the opinion of the agency directly assigning the research topic or project.

d. In cases where the head of the leading organization and the head of the research topic or project do not agree on expenditure levels or adjustments to the budget estimates for expenditure items, the head of the leading organization is the final decision-maker and bears responsibility for the decision; the head of the research topic or project is responsible for implementing it.

5. Changing the budget estimate for the research topic or project:

a. In cases where it is necessary to change the main objectives and research contents of the scientific and technological development of the research topic or project to align with actual circumstances, or at the request of the competent authority approving the research topic or project, thereby significantly altering the budget estimate for the research topic or project, the head of the research topic or project and the head of the leading organization shall establish a revised budget estimate for the research topic or project according to the new objectives and contents, and submit it to the competent authority for approval.

b. The establishment and approval of the revised budget estimate for the research topic or project shall be carried out in accordance with the provisions of Points 1, 2, and 3 of Section II above.

c. After being approved by the competent authority, the use of funds according to the revised budget estimate for the research topic or project shall be implemented according to the cost-reimbursement system for the research topic or project stipulated in this Circular.

6. Finalizing the budget for the research topic or project:

a. Principles for finalizing the budget:

- The budget for the research topic or project allocated and assigned for implementation in a given year must be finalized according to the fiscal year's regulations. For research topics or projects spanning multiple years, the leading organization and the head of the research topic or project shall finalize annually according to the fiscal year for the received and expended funds. Upon completion of the research topic or project, a cumulative finalization from the first year of implementation to the reporting year will be conducted.

- The funds for implementing the topic/project (including allocated and unallocated funds) shall be recorded under the corresponding budget expenditure item according to current regulations when actually spent on specific contents.

- The settlement of funds for the topic/project must be based on the results of each scientific research and technological development content recognized in writing by the topic/project leader and the head of the leading organization as meeting the requirements or higher.

- For topics/projects implemented over multiple years, the annual settlement of funds must correspond to the volume of scientific research and technological development work completed.

- The topic/project leader is responsible for reporting the annual settlement and compiling the cumulative settlement of the topic/project to the leading organization upon completion.

- The leading organization is responsible for guiding, inspecting, and reviewing the settlement of the topic/project leader to incorporate it into the unit's settlement report sent to the supervising authority according to current regulations or the Office of Programs (if applicable).

b. Documentation for settlement and clearance of funds for implementing the topic/project:

- Documentation for settlement and clearance of payments for conference fees includes a list detailing the amount paid to each individual, signed by the recipient, confirmed by the topic/project leader.

- Documentation for settlement and clearance of payments for expert review, comments, and evaluations includes the written review, comment, and evaluation document and a receipt signed by the recipient, confirmed by the topic/project leader.

- Documentation for settlement and clearance of research and development contracts:

+ For individuals, the documentation for settlement and clearance includes the contract, contract termination, research and development results confirmed by the topic/project leader as meeting acceptance and payment requirements, and payment vouchers.

+ For organizations (legal entities), the documentation for settlement and clearance includes the contract, contract termination, research and development results confirmed by the leading organization and the topic/project leader as meeting acceptance and payment requirements, payment vouchers or bank transfers, and receipts from the receiving party.

- For expenditures on fixed asset purchases, materials, raw materials, domestic and foreign travel expenses, and other expenditures, the settlement documentation shall be carried out according to current regulations.

- For saved funds: The settlement documentation is a report on the difference between the total approved budget for the topic/project and the actual expenditure.

c. Any remaining (budgeted, advance) funds of topics/projects still within the implementation period according to the approved plan shall be transferred to the next year for continued implementation.

For topics/projects that have been completed and accepted by the end of the year (December 31), the topic/project leader is responsible for reporting in detail the advance payments made for the topic/project's activities up to December 31 to the leading organization for settlement (during the adjustment period) according to the current regulations of the State Budget Law.

7. Utilization of saved funds from the topic/project:

The leading organization of the topic/project may utilize the saved funds from the topic/project according to the following principles:

a. For saved funds from allocated expenditures of the topic/project:

- Rewarding groups and individuals who have contributed significantly to the success of the topic/project with bonuses not exceeding 100 million VND, specifically as follows:

+ 70% of the saved funds if the topic/project is evaluated at the management level as "A" grade;

+ 60% of the saved funds if the topic/project is evaluated at the management level as "B" grade;

+ 40% of the saved funds if the topic/project is evaluated at the management level as "C" grade;

The specific bonus amount for individuals participating in the topic/project shall be decided by the topic/project leader after reaching agreement with the head of the leading organization.

- The remaining saved funds shall be allocated to the organization's funds according to current regulations applicable to the leading organization.

b. For saved funds from non-allocated expenditures of the topic/project: the leading organization may allocate to the Development Fund. If the leading organization does not have a Development Fund, it shall remit to the state budget according to the current budget classification.

8. Utilization of products from the topic/project:

a. Products from the topic/project that are intellectual property shall be utilized according to the laws on Intellectual Property, laws on Technology Transfer, and other relevant laws.

b. Physical products from the topic/project funded by the state budget, when sold on the market, the net revenue after deducting necessary and valid expenses shall be distributed as follows:

- 40% remitted to the state budget according to the current budget classification.

- 30% allocated to the Development Fund of the leading organization. If the leading organization does not have a Development Fund, it shall remit to the state budget according to the current budget classification.

- 30% used for rewarding the group and individuals directly involved in the topic/project, with a total bonus amount not exceeding 100 million VND for one topic/project. Any excess bonus amount over 100 million VND shall be allocated to the Organization's Reward and Welfare Fund.

c. In cases where the research contract for the topic/project product specifies state funding, the product belongs to the leading organization; the leading organization must organize the accounting, management of the topic/project product according to current state regulations.

9. Handling of assets purchased using state budget funds for the topic/project:

a. For research topics and projects funded by state budget funds, the purchased assets are state assets. After the completion, acceptance, and final settlement of the research topic or project, such assets shall be handled according to current regulations on state asset management, specifically as follows:

- In cases where the leading organization of the research topic or project is a public scientific and technological organization and has a need to use the assets, the managing authority of the research topic or project shall consider and decide to increase the assets for the leading organization.

- Transfer to state agencies or units that still lack assets needed for use or that fall short of the standards and usage quotas set by the state.

- Organize auctions to sell the assets and remit the proceeds to the state budget for assets that are still usable. If the leading organization of the research topic or project is not a state agency or unit and has a need, it may be given priority to purchase at market prices at the time of sale.

- Dispose of assets that are no longer usable.

The organization of auctions and disposal of assets shall be carried out in accordance with current state regulations.

b. In cases where the state funds have a support nature or the leading organization of the research topic or project has already remitted to the state budget the recovered funds from experimental production projects or technology transfer projects as prescribed, the assets formed from state budget support funds shall be under the management of the leading organization. Management and use of these assets shall be carried out in accordance with current regulations.

10. Provisions on the Public Disclosure of Research Topics and Projects:

Leading organizations of research topics and projects are responsible for financial disclosure in accordance with current regulations; they must also disclose the content of the research topics and projects (except for those requiring confidentiality as determined by authorized authorities), specifically as follows:

a. Disclosure within the leading organization:

- Content to be disclosed:

+ Name of the assigned research topic or project.

+ Name of the head of the research topic or project and key members participating in its implementation.

+ Objectives of the research topic or project.

+ Main scientific research and technological development contents to be implemented.

+ Duration of the research topic or project.

+ Key results expected to be achieved upon completion of the research topic or project.

+ Total funding for the research topic or project, including total funding from the state budget, with detailed breakdowns of major expenditure items approved by the competent authority.

+ Results of the research topic or project that have been accepted, evaluated, and recognized by the competent authority.

+ Final settlement of expenditures for implementing the research topic or project, with detailed breakdowns of major expenditure items.

+ Total savings of the research topic or project.

- Methods of disclosure:

+ Posting in easily visible locations.

+ Disclosure at annual meetings of the leading organization.

- Timeframe for disclosure: no later than 30 days after the research topic or project is approved by the competent authority, and this disclosure must be maintained throughout the implementation period. Specifically, regarding the final settlement of expenditures after approval by the competent authority, the results of the research topic or project that have been evaluated, accepted, and recognized by the competent authority must be disclosed immediately after approval and maintained for a period of 90 days.

b. Disclosure outside the leading organization:

- Content to be disclosed:

+ Name of the assigned research topic or project.

+ Name of the head of the research topic or project.

+ Objectives of the research topic or project.

+ Main scientific research and technological development contents to be implemented.

+ Duration of the research topic or project.

+ Key results expected to be achieved upon completion of the research topic or project.

+ Total funding for the research topic or project, including total funding from the state budget approved by the competent authority.

+ Results of the research topic or project that have been accepted, evaluated, and recognized by the competent authority.

- Methods of disclosure:

+ On the website of the leading organization (if available).

+ Publication in specialized journals and newspapers for three consecutive issues.

- Timeframe for disclosure: no later than 30 days after the research topic or project is approved by the competent authority, and immediately after the research topic or project is accepted, evaluated, and recognized by the competent authority.

In cases where external organizations or individuals wish to obtain more detailed information, the leading organization or individual responsible for the research topic or project shall provide the disclosed content of the research topic or project within the leading organization to such organizations or individuals.

11. Sanctions for Uncompleted Research Topics and Projects:

a. Within 15 working days from the date of receipt of the document identifying the uncompleted research topic from the competent state management authority, the head and the leading organization of the research topic or project shall prepare a detailed report on the entire implementation process (activities and fund usage) of the research topic or project; clearly identify the causes (subjective and objective) and submit them to the competent state management authority that approved the research topic or project.

Within 30 working days from the date of receipt of the report from the leading organization and the head of the research topic or project, the competent state management authority that approved the research topic or project shall be responsible for checking and determining the reasons for the failure to complete the research topic or project.

b. Depending on whether the reasons for the failure to complete the research topics or projects are objective or subjective, the competent state management authority shall make specific decisions as follows:

- Return the full amount of funds allocated but not yet used for the research topic or project to the state budget.

- As for the portion of state budget funds that have been used, it shall be handled as follows:

+ In cases of subjective reasons, the responsibility of each individual must be clearly defined to recover the maximum amount of funds for the state budget. The minimum recovery rate shall not be less than 30% of the state budget funds allocated and used for the research topic or project.

+ In cases of objective reasons: the maximum recovery rate shall not exceed 10% of the state budget funds allocated and used for the research topic or project.

+ The specific recovery rate shall be decided by the competent state management authority that approved the research topic or project. The source of funds to be returned to the state budget: 50% shall be borne by the head of the research topic or project; 50% from various funds and other self-funded sources of the leading organization.

Within 60 days from the date the competent authority that approved the research topic or project makes a decision on the return of funds to the state budget, the leading organization and the head of the research topic or project shall be responsible for returning the funds to the state budget according to the current budget management hierarchy.

- In cases where the sources of the Funds and other existing self-owned resources of the organizing entity are insufficient to repay the state budget, the remaining amount shall be carried over to the following year for continued repayment to the state budget.

- The organizing entities of projects and topics shall compile the situation regarding the recovery of funds for repaying the state budget into their annual settlement reports, which they submit to the higher supervisory authority for consolidation and forwarding to the same-level financial authority in accordance with regulations.

Other forms of handling for organizing entities and project leaders who fail to complete their tasks shall be stipulated in other documents issued by the Ministry of Science and Technology.

12. Responsibilities of the organizing entities and project leaders, and competent state management agencies:

a. For organizing entities and project leaders:

- The organizing entities and project leaders must prepare the budget estimate for the project based on economic and technical norms issued by ministries and sectors, current state expenditure regulations, and submit it for approval by the competent authority.

- The project leader is responsible for the contents and results of scientific research and technological development of the project; they are responsible for reporting and explaining detailed settlement figures for the project's budget implementation to the organizing entity.

- The organizing entity of the project has the responsibility to manage, monitor, and regularly inspect the implementation of the project; they are responsible for the settlement figures of the project. They have the duty to urge and take necessary measures to ensure that the project leader complies with the provisions set out in Point 11.b above for the repayment of the state budget.

b. For competent state management agencies:

- Competent state management agencies are responsible for approving the content and budget estimates of the project based on a detailed review of the objectives, content, and final products of scientific research and technological development (for applied research projects and technology transfer projects, the final product must meet the application goals in practice) and the budget estimate; they shall inspect and approve the settlement of the project's budget implementation according to regulations.

- The same-level financial agency shall cooperate with the competent state management agency to approve the project, conduct financial inspections, review the settlement of the project, and implement financial management in accordance with the State Budget Law and specific provisions in this Circular.

- The State Treasury shall carry out disbursement, payment, and control of expenditures for implementing the project in accordance with current regulations and specific provisions in this Circular.

III. IMPLEMENTATION

This Circular shall take effect fifteen days from the date of its publication in the Official Gazette. For projects and topics that have been approved by competent state management agencies and are being implemented before this Circular takes effect, they shall continue to be implemented in accordance with the regulations at the time of approval.

During implementation, if there are any difficulties, organizations, individuals, ministries, central agencies, and localities are requested to report to the Ministry of Finance and the Ministry of Science and Technology for coordinated resolution.