GUIDELINES GOVERNING THE USE OF INCOME PURSUANT TO SPECIAL PROVISIONS (SP) NO. 14 OF THE UNPROGRAMMED FUND UNDER THE CY 1999 GENERAL APPROPRIATIONS ACT (R.A. NO. 8745)

1.0       Purpose

1.1       To provide the procedural guidelines relative to the
implementation of Special Provision No. 14 of the Unprogrammed Fund
under the CY 1999 General Appropriations Act (GAA), Republic Act (R.A.)
No. 8745.

2.0       Coverage

2.1       This circular covers all higher education institutions
under the supervision of the Commission on Higher Education, but
excludes CSIs which were integrated to State Universities and Colleges (
SUCs), pursuant to Special Provision No. 2 of the CY 1999
appropriations for CHED under the CY 1999 GAA and Section 4 (I) of R.A.
No. 8292 (Higher Education Modernization Act of 1997).

3.0       General Guidelines

3.1       Collections/income of the subject CSIs from the following
sources shall be deposited with the Bureau of the Treasury (BTR) as
income of the General Fund pursuant to Section 44 of Book VI of
Executive Order (E.O.) No. 292 (Administrative Code of 1987) and Section
3 of Batas Pambansa Blg. 325:

3.1.1 Tuition Fees

3.1.2 Other School Charges (e.g. registration fees, laboratory fees, library fees and athletic fees)

3.1.3 Fines and Penalties

3.1.4 Business Operations

3.2       Pursuant to Special Provision No. 14, page 1211 of the
Unprogrammed Fund under the CY 1999 GAA, fifty percent (50%) of the
income referred to in Section 3.1 above shall be used to augment
maintenance and other operating expenses or capital outlays of which,
whenever applicable, at least thirty percent (30%) shall be used for the
production of rice, corn and vegetables in their areas.

3.3       The other fifty percent (50%) shall be used to
augment/cover deficiencies in Personal Services appropriation, except
for payment of salaries and for creation of new positions, and for
teacher-student welfare to include the following:

3.3.1 Personal Services

a) Teacher authorized allowances and other fringe benefits;
b) Student labor or hourly wages for student services in accordance with authorized rates;

3.3.2 Maintenance and Other Operating Expenditures/Capital Outlays

a) Training and seminar expenses;
b) Student activities;
c) Upgrading of book holdings, facilities and services of the library;
d) Operation and maintenance of library, canteen and dormitories;
e) Improvement of learning environment such as, but not limited to classrooms, laboratories and faculty rooms;
f) Purchase of instructional equipment;
g) Awards and incentives for outstanding teacher performance,
publications and research, based on a set of criteria to be determined
by the CHED; and’
h) Scholarship grants for teachers and students, consistent with
CHED policies and guidelines, including stipends and book allowances.

3.4       Income derived from the following sources shall not be covered by this Circular:

3.4.1 Income from Food Production Programs accruing as revolving
funds pursuant to Letter of Instructions (LOI) No. 872 s. of 1979
(Encouraging State Universities and Colleges and Agricultural Schools to
Participate in the Food Production Program) as implemented by National
Budget Circular (NBC) No. 331, s. of 1980;

3.4.2 Income from the Sale of school desks, furniture and other
items fabricated using school facilities, accruing as revolving funds in
accordance with the provisions of LOI No. 1026 s. of 1980;

3.4.3 Income from sale of unserviceable equipment; and

3.4.4 Trust receipts pursuant to Section 45, Chapter 5, Book VI of (E.O.) No. 292.

3.5       It is to be understood that augmentation as used under
Sections 3.2 and 3.3 of this Circular implies the existence of an item,
project, activity or purpose with an appropriation which, upon
implementation or subsequent evaluation of needed resources is
determined to be deficient. In no case therefore, shall a non-existent
item, project, activity, purpose or object of expenditure be funded by
augmentation.

3.6       The use of income under this Circular shall be subject to
the submission of a Special Budget, as required under Section 35, Book
VI of E.O. No. 292, in accordance with the provisions of NBC No. 463
(Guidelines in the 1999 Release of Funds) dated January 29, 1999. CSIs
shall submit their requests duly supported by documents prescribed under
Section 4.3 of this Circular, to the concerned Regional Offices ( ROs)
of the Department of Budget and Management.

4.0       Statement of Policies

4.1       Special budgets covering the use of income to meet the
requirements for CY 1999 of CSIs, shall be submitted to the DBM Regional
Offices concerned not later than November 30, 1999.

4.2       The amount of income to be requested by the CSIs shall in
no case exceed P18 ,453,000.00 representing the appropriation authorized
for the purpose under the CY 1999 Unprogrammed Fund. (Please refer to
Annex A for the breakdown by CSI).*

4.3       The Special Budgets shall be supported by the following:

4.3.1        Indorsements of the Special Budget by CHED RO concerned;
4.3.2        Copies of bank deposit slips covering the amounts of income actually deposited
4.3.3        Work and Financial Plan (Please refer to Annex B for the format);
4.3.4        Latest Trial balance;
4.3.5        Latest Statement of Allotments, Obligations and Balances; and
4.3.6        Justifications for the request.

(Note: Annexes are available at Office of the National Administrative Register, U.P. Law Complex Diliman, Quezon City)

4.4       A Special Allotment Release Order (SARO) chargeable against
the Unprogrammed Fund — General Fund Adjustments (Purpose 5) under the
1999 GAA shall be issued by the DBM RO Concerned to cover the amount of
income authorized to be used. No income can be utilized until a SARO for
the purpose shall have been issued.

5.0       No Report No Release Policy

The “no report, no release policy” shall be strictly enforced.

6.0       Saving Clause

Cases not covered by this circular shall be referred to the Secretary
of the DBM through the Regional Coordination Service, DBM Central
Office.

7.0       Effectivity

This circular shall take effect immediately.

Adopted: 26 Nov. 1999

(SGD.) BENJAMIN E. DIOKNO
Secretary