The Hungarian PROREC Centre is a separate project of the Computer and Automation Research Institute of the Hungarian Academy of Sciences. The operation of the Hungarian PROREC Centre is controlled by the organisational and functional regulations of the Computer and Automation Research Institute. The articles of association and working principles of the Hungarian PROREC Centre are defined by the organisational and functional regulations described in this document.

• Computer and Automation Research Institute of the Hungarian Academy of Sciences (MTA)
• Name in short: MTA SZTAKI

• 1111 Budapest, Kende u. 13-17.

• 1111 Budapest, Lágymányosi u. 117.
• 1111 Budapest, Budafoki u. 31.
• 1132 Budapest, Victor Hugo u. 18-22.
• Balatonfüred, Kosztolányi u. 2. (holiday resort)

• Computer and Automation Research Institute, Hungarian Academy of Sciences
• Forschungsinstitut für Rechentechnik und Automatisierung, Ungarische Akademie der Wissenschaften
• Naucno-issledovatelhskij Institut Vycislitelhnoj Texniki i Avtomatizacii Vengerskoj Akademii Nauk

• Central Statistical Office (KSH) index number: 15-300399-7310-311-01
• Tax number: 15-300399-2-43
• Social security number:
• Bank account: Hungarian State Treasury 10032000-01738588

• The Institute is an independent legal entity
• Organizational form: public budgetary organization
• Establisher: Hungarian Academy of Sciences (further: MTA), Budapest V. Roosevelt Square 9
• Establishment, legal succession:
• Automation Research Institute, Hungarian Academy of Sciences (further MTA AKI) established in 1964
• Computer and Automation Research Institute, Hungarian Academy of Sciences as from January 1. 1973. 11/1972 MTA-F order uniting the MTA AKI and MTA Computer Center
• Computer and Automation Research Institute, Hungarian Academy of Sciences January 1. 1998, with the modification of the founding charter uniting the MTA SZTAKI and the MTA KFKI Measurement and Computer Technology Research Institute.

The supervision of the Institute is done by the MTA according to the Act XL of 1994,, t the fundamental academic regulations authorised by law, and the academic rules.

Professional supervision is done by the Engineering Science Department in conjunction with the Mathematical Science Department.

The council has been operating since 1986 at the Institute as an overall board of supervision. The seven members of the INTA are academic representatives of the Institute. The president and the members of the INTA are appointed for a period of maximum three years by the secretary-general of the MTA in agreement with the MTA's responsible departments and the director of SZTAKI.

Sphere of Activities performed by the Institute as state public duties:

• Research and experimental development Engineering, and natural sciences research and experimental development. Within this, work is concentration is focused on
• basic and applied research activity, experimental development in the fields of information, information technology and computer technology,.
• Creation of unique hard- and software products and systems (prototypes) for research and experimental developments,
• Other computing services - the running of the computer centre of MTA, the maintenance and running of the Academy's computer network system,
• Continuing Postgraduate education
• Adult and other education
• Library services - maintenance and running of the Institute's library,
• Professional consulting and designing services consulting
• Utilisation of own or rented properties

• Computer manufacturing
• Manufacturing of industrial sequence process control equipment
• Foreign trade
• Retail of goodsing not included offered anywhere else at professional stores
• Utilisation of own or rented properties
• Rental of office machines, equipment, computer tools
• Rental of other machines and equipment
• Hardware consulting
• Software development, consulting and furnishing,
• Engineering and natural science research and experimental development,
• Professional consulting and design services consulting
• Data processing
• Data bankingbase function
• Servicing of computer peripherals equipment

The Institute can perform services in the areas included in point Section 4.2 without jeopardising the basic duties. The income from the venture functions cannot exceed 30% of all the total income.

The order of the Institute's venture activity is laid down in the Institute Venture Regulations.

The management of the financial issues of the Institute is regulated by Act XXXVIII of 1992 of the budget modified several times and the 156/1995 (XII.26) government decree regulating the planning, management and reporting of the budgetary organisations. The relationship of our the Institute and the Hungarian State Treasury is regulated by the 211/1996 (XII.23) government decree, and supplemented by the Ministry of Finance order of payments of financial services by the Hungarian Treasury 42/1996 (XII.28).

The Institute consists of three research and development divisions, a management department, a supply department performing warden's activity, as well as a legal advisor directly under the director's supervision, the head of human resources and the unit of internal affairs directly under the director's supervision.

The research main divisions are the as following:

• Autonomous Research Division (AKE)
• Autonomous Development Division (AFE)
• Computer Networks and Services Division (ASZI)

The detailed description of the organisational chart can be found in Chapter B.

The official leader of the Institute director is the director official leader of the Institute, who is appointed by the president of the MTA according to the orders of the Act XL of 1994 regarding the Academy of Sciences.

The director of the Institute has the right to selectchooses and appoints his/her deputies, among whom has to be at least one financial deputy director according to Section 98 of Act XXXVIII of 1992.

A Scientific Council functions at the Institute according to section 23 of Act XL of 1994.

As a major rule, the Institute is represented by the director,. He/she is who has authorityzed to individually sign in one person for the Institute. The director can delegate his/her representative rights in certain business matters to other managers at the Institute managers according to the present SZMSZ Chapter B, point Section 2.

The issue is regulated according to Chapter 12.1 and Appendix I. of the SZMSZ.

Basic and additional rights of the employer should be distinguished regarding exercise of the rights of the employer.

Basic rights of the employer:

• employment, appointments, commissions,
• determination of personal basic salary and salary bonuses,
• modification of employment contracts (ranking, internal transfer, and assignment modification),
• termination of employment,
• awarding of medals, proposition for higher awards,
• exercising of disciplinary rights, calling on to monetary account,
• allowance of other legal relations affecting part-time and full-time work,
• permitting of study trips abroad, permitting of working abroad,
• permitting of payless holidays.

Additional rights of the employer:

• personal evaluation, qualification,
• permitting of yearly regular holidays, permitting of holidays regarding studies, etc.
• establishment of yearly bonuses, target bonuses,
• approval of short professional study trips abroad,
• sendordering out to domestic field trips.

The director exercises the full range of the rights of the employer above the following people concerning:

• deputy directors,
• division heads,
• project managers directly under the director's authority.

The exercise of the basic rights of the employer belongs to the director's sphere of authority. The director can is given the right to transfer the some of these rights to his/her immediate colleagues (deputies, director head of human resources). Division heads exercise the additional rights of the employer are. exercised by the division heads.

Questions regarding the protection and , utilisation of intellectual property are stipulated in the Regulation of Intellectual Creations.

The rules of work are regulated in detail in the collective bargaining labour agreement, apart from and taking the Athe cts KJT and MT into consideration.

The description of activities contains the name and position of the employee, position, name of the supervisor, work tasks, authority, rights, date and signature(s).

It is practical to have the description of work activities has to be set in writing with one copy for the employee and one for the Institute.

The order of transferring the work activities is regulated by the director's orders. Within this the employee is obliged to relinquish his/her room, armchairs furniture, all the and tools in his/her name, all and the books on loan to him/her, all the bills, contracts, and unanswered letters in his/her possession. If there is anything else to be relinquished, a report should be written, which is to be signed by the employee, his/her supervisor, and the person receiving all of the above.

The director is responsible in one person for the successful operation of the Institute within the framework of the rules relevant to his/her position. A proportion the extent of his/her responsibility is determined by the division of spheres of authorities management authority.

He/she decides in or arranges for all affairs that are delegated to his/her sphere of authority jurisdiction by the provision of law or that he/she decides to exercise in his/her authority.

The director acts in the following matters:

• preparation with his/her deputiesy and colleagues the yearly and long-term scientific plans of the Institute; guarding and raising the Institute's standards level and usefulness of scientific work; bearing the responsibility for the professionalism and feasibility of the Institute's plans,
• responsibility for the preservations of the Institute's property, ensurance of internal control, in economic matters for the supervision of his/her and his/her deputies' activities. He/she is bound to have the financial deputy report to him/her on the financial matters of the Institute,
• directing the Institute's human resource policies and the continuing education of the employees, as well as directly supervising the work of the head of human resources director,
• developing the directions for international relations and events,
• developing the Institute's contract policy, income, patent, invention, new development, intellectual royalty and other internal ruling principles, as well as approving internal rules, forming boards or councils for the execution of internal rules when needed,
• personally exercising the basic rights of the employer above the deputy directors and department heads, and the basic rights of the employer above all employees of at the Institute.

Deputy directors independently fulfill their role described in the Organisational and Functional Regulation (SZMSZ), lead the work of the departments delegated to them by the director. They participate in the development of the yearly and long-term scientific and working plans, as division of labour, represent the Institute in international relations, and university relations, as well as with supreriorme authorities and partner institutions.

The deputy directors decide independently in cases which are referred underordered to their authority by the present Regulation or the director; they report to the director regularly. The approval of two deputy directors is needed for institutional undertaking of obligations, as well as in case of important decisions defined by the present regulations.

The deputy directors also perform the roles of the director according to the chain rules set by the director of command in case of the director’s the his/her incapability, and they are authorised to perform roles belonging to the personal authority of the director if those are transferred to them. They practice the non-basic rights of the employer over the departments led by them directly.

There are three deputy director positions defined at the Institute has three deputy directors: scientific I., scientific II., and financial deputy director with the following scope of duties:.

The scientific deputy director I. organises and coordinates the Institute's especially most important outside external scientific relationships and projects at the Institute. SHe/she supervises and develops

• the academic and university relations
• the international scientific relations
• the publishing policy
• and the organization of scientific events of at the Institute and
• the employment and continuing postgraduate education of young researchers.

The Institute's Library functions fall under the direction of the scientific deputy director I.

He/she is responsibility for the existence and good proper status condition of the regulations, as are described in Appendix II.

The scientific deputy director I. is the director's general deputy substitute for the director.

The scientific deputy director II. is the appointed elected director of AKE, appointed for a fixed time period as ain deputy director position. Regarding AKE, he/she performs the duties establishpulated in the regulation of AKE., as a deputy director he/she is responsible for in charge of the appropriate standard level of the software and networking technology applied at the Institute, as well as for the necessary activities necessary for forming the Institute's image.

He/she is responsibility for the existence and good conditionproper status of the regulations as are described in Appendix II.

The sphere of authority and the responsibilities of the financial deputy director are regulated in the state budget law and the government decree 156/1995 (XII.26) government decree.

He/she is supported in executing these duties by the departments under his/her control. Among his/her responsibilities include are :

with the participation of the departments under his/her control - the following:

• the development, regulation and supervision, including the economic and financial planning, records, accounts, allotment order of the internal financial system of the Institute; the analysis of the financial activity, preparation of specific information and statistics; the supervision of the economic and financial regulations specified by the Ministry of Finance and the Hungarian Academy of Sciences.
• the organisation and supervision of the Institute's maintenance and warden, such as
• control of materials, and purchasing, equipment management,
• investment, purchasing of durables, and management of durables,
• inventory and write-offs,
• transportation, use of the institution's cars, photocopying, mailing,
• the supervision of the human resources management of the Institute,
• supervision of the undertakings of the institution in financial and business sense, in case of all contracts undertakings he/she signs as is the second in line of proper signatory for the Institute,
• organisation and supervision of the security of the Institute's property, inventory and internal control.

He/she is responsible for any the existence and good condition correctness of financial management rules -– based on Szvt. or any other provision of law - rules.

Departments under the direct control of the financial deputy director:

• -Financial Department,
• -Supply Department.

As the head of the research & development and business division, he/she is in charge of the division's scientific, business and other activities. He/she is authorized to negotiate with outside partners, prepare R&D contracts, during execution undertakes obligations which are not considered as changes of contract and signs transfer acceptance documents in relations with contracts.

He/she is responsible for the preparation of the plans for the division's research topics and contracted projects, submission of the objectives in his/her area as well as outlines the projects' conditions.

In his/her business management role, he/she prepares - with the help of administration - his/her division's business and financial plans, oversees the plans' and monitors the reasonable and economical execution of these plans.

He/she followbserves his/her colleagues' professional and personal development. He/she makes them report, on evaluate their work, evaluates their results and participates in their appraisal. He/she proposes and expresses opinion regarding his/her division's human resources questions, practices the non-basic rights of the employer over the employees of the division. He/she has the authority to propose salary, bonuses and other monetary incitement, participation in conferences and courses; permits domestic field trips.

He/she maintains keeps the scientific and technical relationships with the leaders of associate institutes and other outsidexternal organisations in the framework of scientific cooperation.

He/she is bound to holdrun meetings of the department at least twice a departmental meetings yearly,. and during these meetings he/she presents the plans and the income strategy of the department, their reports on the execution of the duties, the income system and its execution, evaluates his/her colleagues' yearly activity during these meetings, forwards questions and suggestions to the responsible leaders of the Institute.

A group leaders is are authorised to negotiate with outside partners in his/their subjects, to sign reports and minutes, withoutich can not modifying the relevant contracts, to accept deliverables from and can take over rights in relations to subcontractors and other, employment or other legal accomplishments contracted partners.

He/she observes his/her colleagues' professional and personal development. He/she makes them report on their work, evaluates their results and participates in their appraisal. He/she proposes and expresses opinion regarding his/her group's human resources questions, practices the non-basic rights of the employer over the employees of the group. He/she has the authority to propose salary, bonuses and other monetary incitement, participation in conferences and courses; permits domestic trips.

He/she follows his/her colleagues' professional and personal development. He/she makes them report, evaluate their work, participate in their appraisal. He/she proposes and expresses opinion regarding his/her group's human resources questions, practices the non-basic rights of the employer over the employees of the group. He/she has the authority to propose salary, bonuses and other monetary incitement, participation in conferences and courses, and permits domestic field trips.

The director has the right can to appoint project leaders for larger projects. The project leader has the same rights within the given project as a department head in relation to people his/her employees, outside partners and subcontractors participating in the project, outside partners and subcontractors.

The jurisdiction of leaders of non-scientific units leaders is the same as that of the scientific ones. Their duty is to help the Institute's main activities in accordance with the Institute internal regulations of the Institute, and within their required duties, fulfill the recording and reporting duties of regulations or internal regulations.

A description of duties should be prepared for all employees who are working at non-scientific units.

Similarly to the leaders of scientific units the leaders of non-scientific unit leaders are to regularly run, just as scientific ones, bound to hold unit meetings, informing colleagues and the passing on the opinions and suggestions to the responsible leaders of the Institute.

As the immediate assistant of the director, he/she assesses and prepares for decision all of human resources related questions belonging to the immediate jurisdiction of the director, helps the director in practising his/her rights as an employer (employment contracts conclusion and, modification of, employment contracts, permitting overtimes, field trips and employment abroad, employment, suggestions for domestic and international scholarships, exceptional vacations, etc.).

The head of human resources director is in charge of the Institute's human resources policy, including the education of human resources employees' continuing education, planning and organising of their advancement.

The head of human resources manager's is given jurisdictions include the following matters:

• assessment of proposals of or selecting and hiring of new human resources colleagues (tenders), requestshiring (ask for transfer), ranking, salary,
• questions or suggestions regarding all employment contract modifications (appointments, re-ranking, extra salary modification, extension of contracts, retirement, etc.),
• requests for exceptional vacation holidays, reduction of working hours reduction, proposals for other allotments and help, support,
• employment authorisation and, requests for the extension of employment,
• recording all requests for part-time employment (in addition to full-time work),
• preparation of work certifications, preparation of requests and suggestions for other official organisations.

The institution employs a contracted legal counselor adviser., He/she must have who has both a lawyer's degree and a sufficient liability insurance.

His/her, whose duties are:

• preparation of institutional contracts for the Institute, (participation in the wording, revision and approval of documents, counsel)
• arrangement of all matters of the institution where there is a need for a lawyer or legal counselor (countersigning of papers documents by a lawyer, possible law suits, payment notices, ventures with the participation of the Institute, negotiation with lawyers of parties with opposite interest, etc.)
• arrangement of employee home loans,
• assessment of the Institute's internal regulations, participation in the preparation and modification of the regulations,
• observationce of published legal regulations, recognition of the intentions, contradictions and loopholes in the regulations, informing the Institute's director and managers of the newest notions of the lawmakers.

The Institute employs an ISO 9001 certified quality management system assurance to ensure that its products inspire trust in the customers with their quality and reliability.

The Quality Assurance Booklet Management Handbook of the Institute contains the regulations for regarding contractings, network and software design and development as well as product recording of development version management.

Appendix II of the present SZMSZ's appendix II contains the detailed list of internal regulations, with the date of approval and , the name of the representative(s) of the Institute's management responsible for maintainering of the regulations and the name of the issuering of the internal regulations.

This SZMSZ will take effect with the approval of the AKT according to the Act XL of 1994 of the Academy of Sciences.

Countersigned by:

Dr. Peter Inzelt
director

Budapest, August 25. 1998

Appendices:

Appendix I.: Detailed regulation of the institutional undertakings of obligations order
Appendix II.: The internal regulations connecting to the SZMSZ of MTA SZTAKI
Appendix III.: The Institutional Council's structure and functions of the Council of the Institute