IMPLEMENTING GUIDELINES FOR EDUCATIONAL SERVICE CONTRACTING (ESC) AND TUITION FEE SUPPLEMENT (TFS) FOR SY 2000-2001

1.         The State Assistance Council in its last meeting held on
February 7, 2000, agreed on certain revisions of some provisions of DECS
Order No. 75, s. 1997. These revisions have been incorporated in the
implementing guidelines found in the Enclosure.

2.         The revised guidelines include, in brief, the following:

—      acceptance of new participating schools shall depend on the availability of funds;

—      dropouts may be replaced for SY 2000-2001 provided that the
number of slots for ESC participating schools in SY 1999-2000 is
maintained;

—      increase of subsidy for ESC grantees from P1,700 to P2,500;

—      increase of subsidy for TFS grantees from P290 to P500, and
raising of tuition fee ceiling for schools participating in the TFS
program from P2,500 to P3,500 inclusive of the subsidy for SY 1999-2000;

—      designation of a signing officer in cases where the
Regional Directors are not able to sign documents pertaining to the
program;

—      holding in escrow a school’s entitlements to the program
for the current school year and suspension of the school’s participation
in the program until dispute is settled in cases of dispute over
ownership of a participating school;

—      deadline on the submission of application and MOAs to DECS regional offices is due on August 31, 2000; and

—      monitoring of the ESC/TFS programs sponsored by PAFE at
least twice a year to determine the efficiency of program
implementation.

3.         All previous DECS rules and regulations and other
issuances or parts thereof, which are inconsistent with this Order are
hereby repealed or modified accordingly.

Adopted: 13 June 2000

(SGD.) ANDREW GONZALEZ, FSC
Secretary

 

Inclosure to DECS Order No. 40, s. 2000

ESC IMPLEMENTING GUIDELINES FOR SY 2000-2001

1.         R.A. 8545 (amending R.A. 6728)
otherwise known as the “Expanded Government Assistance to Students and
Teachers in Private Education, stipulates that it is the declared policy
of the State, in conformity with the mandate of the Constitution, to
promote and make quality education accessible to all Filipino citizens.
The State also hereby recognizes the complementary roles of public and
private schools in the educational system especially the latter’s
invaluable contribution to education.

2.         The Education Service Contracting (ESC) scheme which
was formerly managed by the Department of Education, Culture and Sports
(DECS) through the Bureau of Secondary Education shall be administered
by the Fund for Assistance to Private Education (FAPE) this SY
2000-2001.

FEATURES OF THE PROGRAM

3.         Pursuant to DECS Order No. 22, s. 1992, in Educational
Service Contracting (ESC), the Government and a private school may enter
into a contract for the purpose of accommodating student-grantees in
the said private school. The government pays the tuition and other
school fees of the grantees. The scheme may also be applicable in
communities where only a private school is available to deliver
education service; however, this shall be subject to the school meeting
the prescribed requirements, the approval of the Regional Director and
the availability of funds.

4.         As agreed upon in the State Assistance Council (SAC)
meeting held on March 7, 2000, ESC payment per student grantee shall be
at the rate prescribed by the school for other students but not to
exceed P2,500.

5.         These guidelines on the management and implementation
of the Educational Service Contracting (ESC) program for high school
students are hereby promulgated for SY 2000-2001 and shall be
enforceable and in effect unless otherwise changed, modified or
repealed.

5a.           Project Management

1)      The State Assistance Council (SAC) shall be
responsible for policy, guidance and direction, monitoring, evaluation
and the promulgation of rules and regulations of GASTPE programs.

2)      Implementation of these policies, rules and
regulations as promulgated by the State Assistance Council (SAC) shall
be the responsibility of FAPE.

The ESC Unit of FAPE shall (1) supervise, monitor and oversee
the implementation of the ESC program in all participating private
schools; (2) send written communication to Regional Project Committees
(RPCs) on DECS guidelines and policies, through channels; (3) collect,
collate and interpret pertinent data on ESC from the RPCs reports
whenever needed; and (4) evaluate the ESC program implementation.

3)      The ESC National Executive Committee is composed of
the Secretary of Education, as Chair, an Undersecretary for
Programs/Projects and Regional Operations, the Director of the Bureau of
Secondary Education (DECS) and the President of the Fund for Assistance
to Private Education (FAPE) as members.

4)      The ESC National Secretariat is composed of the FAPE
Director for Externally Funded Programs as Project Director, and Project
Staff members designated by the President of FAPE.

5)      The Regional Project Committee is composed of the DECS
Regional Director as Chair, the Regional Chief of Secondary Education
Division and the Regional COCOPEA Representative as co-chairs and a
private school representative, as member.

The Unit (1) sets up the Division Project Committee (DPC)
which shall handle ESC at the Division level; (2) supervises, monitors
and oversees the implementation of ESC program at the regional level;
(3) provides FAPE-GASTPE Implementing Unit with needed ESC data/reports;
(4) disseminates relevant information on ESC implementing rules; (5)
resolves issues/problems on ESC Program in the Region; and (6) submits
duly certified periodic updated report to the ESC National Secretariat
using the prescribed ESC Forms.

6)      The Division Project Committee is composed of the
Division Superintendent as Chair, a duly appointed Division ESC
Coordinator and a COCOPEA as co-chairs.

The Unit (1) checks, reviews and processes ESC required
documents presented by participating private schools; (2) monitors and
confirms enrolment data; (3) prepares and submits to the RPC needed
statistical data on ESC program; and (4) endorses to the RPC a duly
certified list of ESC participating school indicating the number of
grantees by year level and the total amount claimed (actual tuition and
fees charged). This list should be duly certified by the Division
Finance Office and Schools Division Superintendent.

5.b.          Procedural Management

1.      Selection of Schools — Any duly recognized private
high school in the student’s area of residence may participate in ESC. A
school may be excluded from the ESC program when it does not comply
with the ESC guidelines, has a high dropout rate and has congested
classrooms and inadequate support facilities. When a school is excluded
from further participation, the RPC shall make a report to the ESC
National Secretariat at FAPE.

2.      Selection of 1st Year ESC Grantees and Enrolment
Procedure — The student applicant enrolls in the ESC participating
private school of his/her choice in the area of his/her Region/Division
on condition that the government shall pay the annual tuition and other
school fees actually charged by the school up to maximum of P2500.

The student applicant presents his/her elementary report card
to the private high school participating in the ESC program. He/she
undergoes the normal admission procedure. Among ESC grantees, preference
is given to applicants whose family income falls below poverty line as
defined by NEDA (1997: P72,000 per annum).

3.      Memorandum of Agreement  — The private high school
principal prepares the Memorandum of Agreement (MOA) and its supporting
documents for review and processing by the Division Project Committee.
The supporting documents to be submitted are as follows: (1) ESC Form 3
or the List of Selected Student Participants (LSSP); (2) Form 4 or List
of Continuing Contract Students by Year Level (LCCSYL); (3) ESC Form 5
or Year-End Status Report (Submitted on the 15th of the following month
after school closes); and (4) ESC Form 6 or Certification of Tuition
Fees and Other Fees Charged, duly signed by the Regional Director.

The School must submit its MOA and complete supporting
documents to the Division Project Committee on or before June 30, 2000,
and every 30th day of June thereafter.

4.      Conditions and Limitations of Student Participation
— For SY 2000-2001, the DECS is adopting the quota system of allocating
new ESC entrants to the existing participating schools which will be
determined by the Regional Director based on the capability of the
school in terms of physical facilities, number of teachers, etc.

Drop outs may be replaced for SY 2000-2001 provided that the
number of slots for ESC participating schools in SY 1999-2000 is
maintained. First year ESC applicants will enroll on a
first-come-first-accepted basis upon presentation of their elementary
report card to the high school principal.

Once the student is enrolled as an ESC grantee in a participating
private school, he/she shall be considered as a bonafide student of said
school and shall be subject to its rules and regulations.

ESC grantees must pass the minimum requirements that will qualify
them for promotion to the next year level under DECS rules, otherwise,
their privileges under ESC shall terminate.

In the event that the tuition and other school fees of a private
school exceed the set ceiling of P2500, it may collect the balance from
the ESC grantee provided that the student is notified of said
arrangement and the consent of his/her parents is obtained.

In a municipality where there is no public school and the only
educational service available is in private school, ESC may be extended
to all students of said school subject to the availability of funds.
However, priority shall be given to students who are residents of the
community and who come from families whose income falls below the
poverty line as defined by NEDA. For SY 2000-2001, acceptance of new
participating schools shall depend on the availability of funds and
subject to the approval of the National Executive Committee.

5.      Policy on Drop-outs, Transferees and Refunds. In schools where an ESC grantee drops out or transfers within the year, the government through FAPE shall pay to the schools:

a.      10% of the subsidy if the ESC grantee drops out or transfers within the first week after the start of classes;

b.      20% of the subsidy if the ESC grantee drops out or
transfers after the first week or within the second week after the start
of classes, regardless of whether or not the student has actually
attended classes (Section 66: Tuition Charges of the Manual of
Regulations for Private Schools, 8th Edition, 1992);

c.       50% of the subsidy if the ESC grantee drops out or
transfers after the second week or within the third week after the start
of classes; and

d.      100% of subsidy if the ESC grantee drops out or transfers anytime after the third week of the start of classes.

The Directors/Administrators of ESC participating schools shall
refund to the ESC National Secretariat at FAPE payments for grantees
that drop out or transfer. The ESC participating schools should furnish
the ESC National Secretariat, the official drop-out or transfer form of
students duly certified under oath.

6.  Processing of ESC Application and MOAs.

a.    Regional Project Committee (RPC):

The participating schools submit the Memorandum of Agreement
(MOA) together with the necessary forms and supporting documents to the
Division Project Committee for review and verification. Thereafter, a
summary report on the number of ESC grantees, by year level and the
total amount claimed by each school, duly certified by the Division
Finance Office and School Division Superintendent is submitted to the
ESC/TFS National Secretariat, copy furnished the Regional Secondary
Education Division.

The MOAs and application forms are forwarded to the RPC-FAPE
Regional Coordinator for review and endorsement to the RPC DECS through
the Chief of the Secondary Education Division (SED). The deadline for
submission of applications and MOAs to DECS Regional Offices is August
31, 2000. The SED Chief makes sure that the DECS Regional Director signs
the MOA and endorses the application to the ESC National Secretariat at
FAPE in Makati City.

In case the DECS Regional Director is unavailable to sign the
MOA, a designated DECS Officer (preferably the SED Chief) may sign on
his/her behalf to facilitate the forwarding of the documents to the
ESC/TFS National Secretariat for final review and processing.

In the processing of the applications and MOAs, the supporting documents must be reviewed, evaluated and checked as follows:

1.      The first year student grantees are listed in ESC Form 3 (LSSP);

2.      The continuing grantees are listed by year level on the ESC Form 4 (LCSYL).

3.      Compare the current ESC grantee enrolment with that of
the list in the ESC Form 5 or the year-end report. It must be ensured
that the student is a continuing participant and no dropouts are
included.

4.      The tuition fees and other fees charged by the school
indicated in the ESC Form 6 conform to that approved officially by DECS
and is duly noted by the DECS Regional Director.

5.      Verify the accuracy of computation in the billing section of the MOA to ascertain correctness of the contract amount.

b.    ESC National Secretariat:

The ESC National Secretariat receives the MOAs from the RPC
counterpart under a covering transmittal slip in duplicate, and
acknowledges receipt.

The ESC National Secretariat records the MOAs by school within a
division and region in a register with the following suggested column
headings:

a.         date
b.         school name
c.         school address
d.         number of students
e.         contract amount
f.          date of 1st payment
g.         check number and amount
h.         date of 2nd payment
i.          check number and amount

The ESC National Secretariat verifies the accuracy of computations
in the billing section of the MOA to ascertain correctness of the
contract amount; checks that the first year enrolment in the
division/region is within the authorized slot allocated for the school
year; reports to RPS any excess enrolment detected; and finally,
arranges for the signing of the MOA by FAPE President and thereafter,
for its notarization and distribution as follows:

Original and duplicate — FAPE (ESC National Secretariat with the
attached List of Selected Student Participants (LSSP) and List of
Contract Students by Year Level (LCSYL); 3rd copy — Private High School
Principal; 4th copy RPC Secretariat; 5th copy — ESC National
Secretariat/FAPE); and 6th copy — Notary Public’s Office:

All requests for payment are processed by the ESC National Secretariat at FAPE.

5c.  Payment of ESC Subsidy claim

Based on aforesaid register of MOAs, the ESC National Secretariat,
issues payment requests to FAPE’s Accounting Department for the first
fifty percent (50%) of the contract amount, payable within 45 days after
the receipt of the MOA, provided however, that the funds are released
by DECS to FAPE.

Upon release of the check for payment to schools, the National
Secretariat informs the DECSROs by post on the date of the release of
payment amounts and check number. Upon the receipt of the full amount
from DECS, the National Secretariat arranges for the payment of the
balance of the contract amount due to schools in accordance with the MOA
stipulations.

The check payment is issued in the name of the ESC participant
school to be released to the official school representative as
stipulated in the ESC MOA or its designated representative on ESC
matters.

In cases of dispute over ownership of a participant school, the
Regional Project Committee may recommend to the National Executive
Committee through the ESC National Secretariat the holding in escrow of
the ESC/TFS grant for the current year and the suspension of the
school’s participation in the program in the succeeding school year(s)
until dispute is settled.

5d.  Penalties

In case of any violation(s) of these guidelines such as 1)
discrimination against the poor/disadvantaged ESC enrollees; 2) padding
of enrolment register; and 3) adjustment in tuition fees charged to
accommodate the tuition fee ceiling under ESC. DECS, upon recommendation
of SAC, may ban the institution/s from participating in or benefitting
from GASTPE programs and in other programs of the Department, without
prejudice to administrative and criminal charges which may be filed
against it and/or its responsible officers under existing laws.

OTHER RESPONSIBILITIES OF THE ESC NATIONAL SECRETARIAT

1.         For each of the payments made to participating
schools, take steps to obtain their official receipts (ORs) if the ORs
are not received 30 days after the release of the check payments.

2.         Perform random checks at the division level with the
DPCs to verify the validity of the ESC grantees enrolled in the private
schools.

3.         Sample-test the ESC enrolment in schools located
within reasonable distance from where the said random-checking is being
done, by tracing the ESC students in class registers or other school
documents related to student enrolment.

4.         Report to the National Advisory Committee (NAC)
significant findings based on preceding steps 2 and 3 not later than the
close of the current school year.

5.         About the 15th of the month following the close of
the school year, follow up through the Regional Coordinator the list of
schools which have not submitted the ESC Form 5 in their respective
regions requesting them to expedite compliance with this requirement.

TFS IMPLEMENTING GUIDELINES FOR SY 2000-2001

1.         As in ESC, the legal basis for the provisions and implementation of the TFS programs is R.A. 8545.

2.         The Tuition Fee Supplement (TFS) for high school
students which was formerly managed by the Bureau of Secondary
Education, DECS through the DECROs, shall be administered by the Fund
for Assistance to Private Education (FAPE) this SY 2000-2001.

FEATURES OF THE PROGRAM:

3.         The Tuition Fee Supplement (TFS) is a subsidy given
by the government in the amount of Five Hundred Pesos (P500) per student
enrolled in a qualified private secondary school. This private school
must have charged tuition and other school fees not higher than the
ceiling (P3500) inclusive of the subsidy for SY 1999-2000. A student can
be recipient of either one of the two Programs, ESC or TFS.

4.         These guidelines on the management and implementation
of the Tuition Fee Supplement program for high school students (TFS)
are hereby promulgated for school year 2000-2001 and shall be enforced
and in effect until otherwise changed, modified or repealed.

4a.  Project Management

1.      The State Assistance Council (SAC) shall be responsible
for policy guidance and direction, monitoring, evaluation and the
promulgation of rules and regulations of this GASTPE program (TFS).

2.      Implementation of these policies, rules and regulations
as promulgated by the State Assistance Council (SAC) shall be the
responsibility of the FAPE. The ESC/TFS Unit of FPE (1) supervises,
monitors, and oversees the implementation of the TFS Program in all
participating private schools; (2) sends to the Regional Project
Committee (RPC), through channels, written communications on DECS
guidelines and policies; (3) collects, collates and interprets pertinent
data on TFS from the RPSs and makes periodic reports whenever needed;
and (4) evaluates the TFS program implementation.

3.      The TFS National Executive Committee is
composed of the Secretary of Education as Chair, and Undersecretary for
Programs/Projects and Regional Operations, the Director of the Bureau
of Secondary Education (DECS) and the President of the Fund for
Assistance to Private Education (FAPE) as members.

4.      The TFS National Secretariat is
composed of FAPE Director for Externally Funded Programs as Project
Director and Project Staff members designated by the President of FAPE.

5.      The Regional Project Committee is composed of the DECS
Regional Director as chair, the Regional Chief of Secondary Education
Division and the Regional COCOPEA representative as co-chairs and a
private school representative as member.

The Unit (1) sets up Division Project Committee (DPCs) which
shall handle TFS at the Division level; (2) supervises, monitors and
oversees the implementation of the ESC/TFS National Secretariat at FAPE
with needed TFS data/reports; (4) disseminates relevant information on
TFS implementing rules; (5) submits duly certified periodic update to
the TFS National Secretariat using the prescribed TFS forms.

6.      The Division Project Committee is
composed of the Division Superintendent as chair, a duly appointed
Division TFS Coordinator and a COCOPEA representative as co-chairs.

4b.       Procedural Management

1.      Private High Schools which charge tuition and other fees
not higher than the ceiling of P3500 including subsidy for SY
1999-2000, shall register and apply for subsidy with the DPC on or
before June 30, 2000 and every year thereafter. Once the school
qualifies, it submits 5 sets of TFS Form 1 or the Tuition and Other Fees
Supplement Voucher and 5 sets of TFS for 1-A or Schedule of Tuition and
Other Fees together with the Memorandum of Agreement with FAPE.

2.      The DPC evaluates and reviews the MOA and supporting
documents of the school and endorses the private school for TFS to the
RPC-FAPE. The DPC includes the school in its Summary Report of TFS
Participating Schools. The DPC endorses to the RPC-FAPE TFS Form 2, a
duly certified list of TFS participating schools by Division, by school,
indicating the number of grantees by year level and the total amount
claimed. The Division Finance Officer and Schools Division
Superintendent should duly certify this Report. The DPC submits the
report to the RPC copy furnish the TFS National Secretariat not later
than July 25, 2000 and every year thereafter.

3.      Allocation of Proceeds — Pursuant to No. 2 of Section 5,
R.A. 6728: assistance, under paragraph (1) sub-paragraph (a) shall be
granted, and tuition fees under sub-paragraph (b) may be increased, on
the condition, that seventy percent (70%) of the amount subsidized
allotted to tuition fee or of the tuition fee increases shall go to the
payment of salaries, wages, allowances and other benefits of teaching
and non-teaching personnel except administrators who are principal
stockholders of the school, and may be used to cover increases as
provided for in the collective bargaining agreement existing or in force
at the time when this Act was approved and made effective, provided,
that government subsidies are not used directly for salaries of teachers
of non-secular subjects. At least twenty percent (20%) shall go to
improvement or modernization of buildings, equipment, libraries,
laboratories, gymnasium and similar facilities and to the payment of
other costs of operation. For this purpose, schools shall maintain a
separate record of accounts for all assistance received from the
government, any tuition fee increase, and the detailed disposition and
use thereof, which records shall be made available for the periodic
inspection as may be determined by the State Assistance Council (SAC),
during business hours, by the faculty, the non-teaching personnel,
students of the schools concerned, the Department of Education, Culture
and Sports and other concerned government agencies.

A certification on the above allocation of proceeds shall be
attached to the final report on GASTPE at the end of the school year.

4.      The RPC-FAPE Regional Coordinator evaluates the
application and reviews the MOA and supporting documents of the school.
The deadline for submission of MOA to DECS Regional Offices is August
31, 2000. The Regional Coordinator forwards the MOA and its supporting
documents to the RPC-DECS through the Chief of Secondary Education
Division for review and signature of the Regional Director or his/her
designated signing officer (preferably the SED Chiefs). The
FAPE-Regional Coordinator then endorses the MOA to the TFS National
Secretariat at FAPE in Makati City.

The RC FAPE-Regional Coordinator prepares and submits to the
ESC/TFS National Secretariat not later than August 30, 2000 a summary
report on tuition fee supplement claims for SY 2000-2001 using TFS Form
2.

5.      The TFS National Secretariat makes a final evaluation of
the MOAs and the supporting documents submitted by the private schools.
It verifies the accuracy of the computations in the billing section of
the MOA to ascertain the correctness of the contract amount.

The TFS National Secretariat arranges for the signing of the MOAs
by the FAPE President and thereafter, for its notarization and
distribution as follows:

Original and duplicate   —        FAPE/TFS National Secretariat;
3rd copy                          —        Private High School Principal;
4th copy                          —        RPC Secretariat;
5th copy                          —        Bureau of Secondary Education; and
6th copy                          —        Notary Public’s Office

Based on the MOA, the TFS National Secretariat issues payment
requests to FAPE’s Accounting Department for the full payment of the TFS
claims.

4c.       Limitation of Student Participation — An awardee
is disqualified from TFS benefits if (a) he/she fails in the majority (5
or more) academic subjects in which he/she is enrolled during the
course of his/her study unless such failure is due to some valid cause;
and (b) he/she transfers residence outside the region.

4d.       Payment of TFS Subsidy Claim — The government
will reimburse the vouchers from the schools concerned within one
hundred twenty (120) days from the close of the registration period;
provided, however, that all documents of the participant school have
been processed by the ESC/TFS National Secretariat and provided,
further, that the funds have been released by DECS to FAPE. All TFS
subsidy payment requests are processed by the ESC/TFS National
Secretariat.

Upon release of the checks for payment to schools, the National
Secretariat informs the DECSROs by post on the date of the release of
payments, amounts and check numbers.

The check payment is issued in the name of the TFS school to be
released to the official school representative as stipulated in the TFS
MOA or its designated representative on TFS matters. In the case of
students who were collected the full tuition fee in advance, the school
shall refund to the students the Five Hundred Pesos (P500) tuition fee
subsidy.

In cases of dispute over ownership of a participant school the
Regional Project Committee may recommend to the National Executive
Committee through the ESC National Secretariat the holding in escrow of
the ESC/TFS grant for the current year and the suspension of the
school’s participation in the program in the succeeding school year(s)
until dispute is settled.

4e.       Penalties — In case of any violation of these
guidelines and the provisions of R.A. 8545, the DECS upon recommendation
of SAC, may ban the institution/s from participating in or benefitting
from the GASTPE programs and in other programs of the Department,
without prejudice to administrative and criminal charges which may be
filed against it and/or its responsible officers under existing laws.

Any school that shall refuse to furnish copies of their audited
financial statements to concerned sectors with whom they are having
consultation prior to tuition fee increases, shall forfeit the right to
increase their tuition fees, in addition to other penalties or sanctions
as may be imposed under the preceding paragraph or by existing laws.

4f.        Other responsibilities of the RPC-FAPE

a.         TFS Regional Coordinator (TFS-RC) prepares the
consolidated report, also using TFS Form 2, and submits it to the TFS
National Secretariat not later than August 30, 2000. A copy of the TFS
Form 1 should be submitted also to the Bureau of Secondary Education not
later than August 30, 2000 and every year thereafter. MOA is processed
at the TFS National Secretariat, which issues checks directly to the
schools corresponding to the aggregate amount indicated in the MOA.

OTHER RESPONSIBILITIES OF TFS NATIONAL SECRETARIAT

a.         For each of the payments made to participating
schools, take steps to obtain their official receipts (ORs) if the ORs
are not received 30 days after the release of the check payments.

b.         Perform random checks at the division level with the
DPCs to verify the validity of the TFS grantees enrolled in the private
schools.

c.         Sample-test the TFS enrolment in schools located
within reasonable distance from where the said random-checking is being
done, by tracing the TFS students in class registers or other school
documents related to student enrolment.

d.         Report significant findings based on preceding steps b
and c to the National Advisory Committee (NAC) not later than the close
of the current school year.