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Chapter Law Content

Chapter (3) Businesses and Supervision
Article 20
Paragraph (1)
The supervisory authorities of the MND over NCSIST are as follows:
Subparagraph (1)
Approving the development plans of 10-year national defense technology, and the research, applications, and production plans of 5-year national defense technology.
Subparagraph (2)
Approving the rules and regulations, annual business plans and budgets, annual performance and financial statement reports, or receiving them as reference.
Subparagraph (3)
Inspecting the assets, financial and national secret protection status.
Subparagraph (4)
Evaluating business performance.
Subparagraph (5)
Selecting and giving suggestion to the directors and supervisors.
Subparagraph (6)
Imposing necessary penalties if the directors and supervisors violate laws and regulations during carrying out businesses.
Subparagraph (7)
Revoking, changing, terminating, demanding timely improvement, suspending operations or imposing other penalties if NCSIST violates the constitution or other laws and regulations.
Subparagraph (8)
Approving the disposition of or the creation of encumbrance over the private real estate.
Subparagraph (9)
Supervising other matters as prescribed by laws.
Paragraph (2)
The MND shall request NCSIST to participate in the conferences on national defense technology research and applications, and production relating to planning of military construction, and shall promulgate guidance on the development of national defense technology based on army establishing and military reconstructing conditions.
Paragraph (3)
NCSIST shall plan for 10-year development of national defense technology, 5-year research, applications, and production plans of national defense technology, and for annual business operations and budget allocations.
Article 21
Paragraph (1)
The MND shall invite the representatives of relevant agencies, scholars, experts and impartial public figures to evaluate the performance of NCSIST.
Paragraph (2)
The methods, procedures and other relevant matters regarding the performance evaluation specified in the preceding Paragraph will be adopted by the MND.
Paragraph (3)
The contents of the performance evaluation are as follows:
Subparagraph (1)
Accessing the annual performance of NCSIST.
Subparagraph (2)
Measuring the operational performance and achievement rate toward the defined goals of NCSIST.
Subparagraph (3)
Making recommendations on the approval and allocation of funds of NCSIST.
Subparagraph (4)
Other relevant matters.
There shall be no less than 1/4 of any single sex in the board member structure.After the primary assessment in accordance with MND,the board members shall further evaluate the institute when on-site observation is required.
All the observed contents, reference, and results shall be fully documented in evaluation report.
Article 22
Paragraph (1)
NCSIST shall make the guidance of 10-year national defense technology development and 5-year national defense technology research, applications, production plan under Paragraph 2 of Article 20, and submit to the MND for approval every four years.
Paragraph (2)
NCSIST shall make annual business plans and allocate its budgets, and submit to the board of directors for approval and report to the MND for reference filing.
Article 23
Paragraph (1)
Within two months after the end of each fiscal year, NCSIST shall appoint certified public accountants for auditing and certificating the report of operations performance and the statement of receipt and expenditure, and submit to the board of directors for approval, and report to the MND for reference filing and to the audit department.
Paragraph (2)
The said financial statement shall be audited by the audit department, and the outcomes of which shall be submitted to MND or other relevant institutes for further processing.