JOINT CIRCULAR

GUIDING NORMS OF CONSTRUCTION AND ALLOCATION OF BUDGET ESTIMATES FOR THEMES AND PROJECTS OF SCIENCE AND TECHNOLOGY USING THE STATE BUDGET

Pursuant to the Decree No.60/2003/ND-CP dated 06/6/2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to the Decision No.171/2004/QD-TTg dated 23/09/2004 by the Prime Minister on approving the scheme to renovate the management mechanism of science and technology;

To unify the establishment and allocation of budget estimates of the themes and projects of science and technology (S&T) using the state budget, joint Ministries of Finance - Science and Technology provide the following guidance:

PART I. GENERAL PROVISIONS

1. Subjects and scope of governing:

This Circular shall apply to: The themes of scientific research, projects of trial production, projects of S&T using the state budget (including the themes of scientific research, projects of trial production, project of S&T of state-level, ministerial level, ministerial-level agencies, Governmental agencies, the Office of the President, Office of the National Assembly, the Committees of the Party and the central offices of the Association unions, provincial and centrally-run city level - hereinafter referred to as themes, projects of S&T); activities serving management of themes, projects of S&T of the competent authorities.

Other cost norms, estimation of the themes, projects of S&T which are not specified in this Circular shall comply with the current regulations of the state.

2. Interpretation of terms:

a. The theme of scientific research: means a mission of S&T in order to discover rules, describe, explain the movement cause of objects, phenomena or create principle, solutions, know-how, patents,. ... expressed in the forms of: Themes of basic research, of applied research, of experimental deployment or a combination of basic research, applied research and experimental deployment.

b. Trial production project (project of TP): means the task of science and technology to apply the results of scientific research and experimental deployment to test the solutions, methods, socio-economic management model or trial production in a small scale in order to perfect the new technology, new products before they are put into production and life.

c. Project of Science and Technology (project of S&T) means the task of science and technology, including a number of themes of scientific research and a number of projects of trial production of organic, synchronous association and carried in a certain time to settle issues of science and technology mainly for the production of a product or a group of major, key products with impact to improve the technology level of an branch, a field and having great influence on the socio-economic development of the country.

d. Scientific topics: means a scientific matter needs to be solved in the course of study of a theme, the project of S&T, to identify points of science and prove these points by the scientific arguments, including theoretical argument (rationale) and the actual argument (as the results of survey, investigation, testing, experiments done by the authors or citing works of other colleagues).

Scientific topics are classified into 2 categories below:

- Type 1: Theoretical researching topic including the activities to collect and process available information and data, the scientific points which have been proven to be true, are extracted from documents, books, newspapers and scientific works of the predecessors, research-experiment in the laboratories, thus making the needed arguments to prove those scientific arguments.

- Type 2: Theoretical researching topic in combination with experimental deployment, in addition to activities such as scientific topic-type 1 above, it also includes activities of investigative, interviews, research, testing, and experimentation in reality to control, compare, analyze, and evaluate to demonstrate the scientific points.

e. Expert: means a person with relevant expertise and deep knowledge, having at least 05 years experience in the field of S&T of the themes and projects, mastering management mechanism of S&T; having experience in implementing the tasks of S&T, transfer and application of scientific and technological results into practical production; reputable expertise and professional ethics.

g. Competent agency in theme and project management: means a state agency tasked to: Identify tasks; select the organizations and individuals in charge of implementation; review and approve contents and funding; inspect and assess to accept the results of the themes and projects.

h. Organization presiding over themes and projects: means an organization with legal entity status assigned duties and funding to implement a theme or project by a competent management agency.

PART II. SPECIFIC PROVISIONS

1. The contents of expenditure for the activities serving the management of the competent agencies over the themes, projects of S&T:

a. Expenditure for consultancy: Identification of themes and projects of S&T; recruitment and selection of organizations and individuals in charge of the themes and projects of science and technology, including expenditure for scientific labor of experts commenting, criticizing, evaluating dossiers, themes and projects, appraising contents and finance of the themes or projects; expenditure for advisory council meetings; expenses for travel and accommodation of remote experts who are invited to participate in the consultancy.

b. Expenditure for the midterm examination, assessment (if any), assessment to accept the results of the themes, projects at the management level of themes and projects, including expenditure for the experimental labor of the results of themes, projects, labor of experts commenting, criticizing, evaluating results of the themes and projects; expenditure for the meetings of the inspection teams, the evaluation expert teams, mid-term evaluation council ( if any), the Advisory Council of acceptance assessment; the expenses for travel, accommodation of remote experts who are invited to join in mid-term assessment, acceptance assessment.

c. Other expenses directly related to the activities serving the State management of the competent agencies over the themes, projects of S&T.

2. Expenditure contents of the themes, projects of S&T:

a. Expenditure for workers participating directly in implementing the themes or projects, including:

- Expenditure for labor of scientists, technical personnel directly participating in the implementation of the themes and projects of Science and Technology, such as: theoretical research, study of processes of technology, the solution of Science and Technology, design, trial manufacture; theoretical research of arguments in the social sciences and humanities; implementation, monitoring of experiments and sample analysis; survey, designing of the questionnaire, sociological investigation; processing, analysis of survey data, sociological investigation; writing of computer software; scientific report summarizing themes and projects, recommendation report; expenditures for support of training, transfer technology.

- Expenditure for other labor in service of deployment of themes and projects;

b. Expenditure for the purchase of supplies, raw materials, documents, materials, data, books, referential magazines, technical documentation, technological know-how, professional documents, publications, tools, labor protection serving the scientific research and technology development.

c. Expenditure for repair, purchase of fixed assets:

- For purchase of essential properties directly serving activities of scientific research and technological development of the themes or projects;

- For rental of properties directly involved in conducting research and technological development of the themes or projects.

- For depreciation of fixed assets (if any) during the period directly involved in implementation of the themes and projects under the depreciation rate described for assets of the enterprises.

- For repair of equipment and material facilities directly serving the research of the themes and projects.

d. Expenditures for: Domestic travelling fees; reception of delegations, general conference, seminars of the themes and projects, stationery and printing; translation of documents from foreign language; general management of the host (including indirect remuneration for performing the themes and projects, payment of utilities, clerical fees, office phone and money for using the working facilities of the host, ...); grassroots level acceptance test (internal acceptance test, including expenditure content for experts of analysis, evaluation, testing of results, products of the tasks prior to the acceptance assessment); registration for protection of intellectual property rights for the results of scientific research - technological development; expenditure for advertising, marketing, trade promotion (if any) for the products of themes and projects, some other expenses directly related to the themes and projects.

3. Delineation of investment source from the state budget:

a. State Budget invested in the themes and projects of S&T under the direction of key research is identified in the strategy of development of S&T; the themes and projects of S&T in the field of basic research or basic research oriented application, strategic research, policy and public service areas for socio-economic development of the whole country, localities and regions.

b. For the themes and projects of S&T under the direction of S&T priorities of the State, the State budget supports partial funding to implement the themes or projects in accordance with provisions of the competent state agencies.

c. The themes and projects of S&T under the direction of research for application deployment, technology development and the S&T themes and projects of other areas, mainly invested by organizations and individuals with their own funds.

The Ministry of Science and Technology issues guidelines detailing the classification of themes, projects of S&T under the direction of S&T research mentioned in this Section.

4. The frames of the budget allocation:

a. For the activities serving the management of the competent agencies over the themes, projects of science and technology:

Unit: 1,000 VND

b. For the activities to implement themes, projects of S&T

Unit: 1000 VND

For the themes and projects of Science and Technology: The norms prescribed in this Circular to unify the formation and allocation of budget expenditures estimate for the themes, projects and expenditure orientation; when carrying expenditures and control of expenditures, comply with the provisions and regime of funding package to implement the themes or projects specified in the joint Circular No.93/2006/TTLT/BTC-BKH&CN dated 04/10/2006 of the joint Ministry of Finance - Ministry of Science and Technology.

For the activities serving the competent agencies’ management: the norms prescribed in this Circular are the maximum spending norms.

PART III. FORMATION AND VERIFICATION AND APPROVAL OF FUNDING

1. Construction of cost estimates for the activities serving the state management of the competent state agencies over the themes, projects of science and technology: The ministries, local, central agencies: Based on the plan to identify and select themes and projects of Science and Technology in the year; mid-term assessment, inspection plan (if any), assessment for acceptance for the themes and projects of Science and Technology of the year and frame of expenditure norms specified in this Circular for estimating and summing into the S&T non-business expenditure estimates of the ministries, central agencies, the Departments of Science and Technology or the units assigned state management task on S&T in the localities at the same time to form expenditure estimate of the annual budget for submission to competent authorities for approval.

2. Formation of funding estimate of the themes, projects of S&T:

a- Based on:

- The contents of research, the volume of works need to be implemented to achieve the objectives and products of the themes, projects which have been approved by the competent authorities;

- The technical and economic norms issued by the ministries, functioning branches, the frame of state allocation norms prescribed in this Circular and the regimes, the current policies of the state. Where there is no economic -technical norm, it needs to explain in details the bases of estimation.

b-Requirements:

- Estimated budget of the themes, projects is built and explained according to research content and associated with specific products of the themes and projects.

- Individuals who are assigned to preside over duties, the host units are responsible for making estimates to submit to the competent agencies for approval of S & T themes, projects considered for approval.

3. Verification and approval of estimates of S & T themes, projects:

a. State management agencies that are competent to approve the S&T themes, projects are responsible for holding the appraisal of cost estimates for the themes, projects of science and technology in accordance with regulations. Where the spending contents have not got the economic-technical norms  issued by the ministries, function branches, State management agencies that are competent to approve the S&T themes, projects are determined the contents of spending needed and take responsibility for their own decisions before the law.

b- For the themes and projects of Science and Technology at Ministerial, provincial, municipal level with funding estimate to be built from 300 million VND or more (for the themes in the field of social sciences and humanities) and 600 million VND or more (for the themes and projects in the field of natural science and science of technology); the themes and projects of Science and Technology at state level with estimate to be built from 500 million VND or more (for the themes in the field of social sciences and humanities) and 1,000 million VND or more (for the themes and projects in the field of natural science and science of technology) or the complex themes, projects, unclear bases for construction of estimates and other themes, projects that the competent State management agencies authorities have found it necessary to appraise the cost estimates, then:

- The State management agencies that are competent to approve the S&T themes, projects establish a team to appraise cost estimate of the themes, projects of science and technology (including experts with deep knowledge of the field of S&T themes, projects, the economist/financial experts and entrepreneurs with experience and knowledge of areas related to the themes, projects of S&T need to be appraised);

- The appraisal team based on results of work of the selection Advisory Council (or Council to review, approve explanation of themes and projects of S&T) to advise heads of management agencies of the themes and projects of S&T of the total necessary funds to implement the themes, projects of S&T in accordance with the contents to be approved, the necessary funding supported from the state budget, the feasibility of market; expected efficiency for the products to be created by the themes, projects of S&T.

4. Assignment of estimate and settlement of funds:

- Assignment of estimates: Based on non-business expenditure estimates of S&T assigned by the competent authorities, the ministries, branches and localities implement the estimates assignment to the subordinate units as follows:

+ The expenditure estimates for the activities serving the management of the competent agencies over the themes, projects of science and technology: Assign estimates to the host units of implementation of these activities.

+ The expenditure estimates to implement the themes, projects of S&T: Assign estimates to the host units of implementation of the themes and projects.

- On the settlement of funds: comply with the provisions of the State Budget Law and documents guiding the implementation.

5. Funding of the themes, projects must be used for the proper purposes, effectively, not be used to spend on the activities serving the management of the competent agencies over the themes, projects.

PART IV. IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days after its publication in the Official Gazette and replaces the Joint Circular No.45/2001/TTLT/BTC-BKHCNMT dated 18/6/2001 "Guide to a number of spending regimes for the scientific and technological tasks "of the joint Ministry of Finance - Ministry of Science, Technology and Environment. For the themes and projects that use state budget which have been approved by competent authorities before the effective date of this Circular shall comply with the current regulations at the time of approval.

When the general minimum wage of State is adjusted by the competent authority to increase more than 50% compared to the general minimum wage prescribed in the Decree No.94/2006/ND-CP dated 07/9/2006 of the Government adjusting the general minimum wage or changing the method of determining cost estimates for the themes, projects, the joint Ministry of Finance - Ministry of Science and Technology will consider adjustments and amendments to add the budget allocation norms for the themes, projects using State budget accordingly.

Based on the actual situation and within the norms of this Circular, the ministries, central agencies, the People's Committees of provinces and cities under central authority issue the specific norms for the unified implementation within the ministries, central agencies and localities.

During the execution, if any problem arises, the institutions, ministries, central agencies and localities should reflect to the Ministries of Finance, of Science and Technology for handling./.