To: Bureau Directors
Regional Directors
Directors of Services/Centers and Heads of Units
Heads of Private Schools, Colleges and Universities

1. In line with the government’s policy of upgrading science and engineering education in the country, their institutions and programs and their outputs in the form of science and engineering graduates who could support the requirements of industry and impact technological and economic development, there is a need to continuously attain higher levels of quality, efficiency and relevance in the areas of faculty, laboratory, library and physical plant facilities, among others.
2. Pursuant to the above imperatives, the attainment of the desired level of quality in science and engineering education is currently being addressed by the Department of Science and Technology (DOST) in cooperation and coordination with the DECS through the Engineering and Science Education Project (ESEP) which aims to develop and upgrade selected science and engineering institutions and programs primarily through the upgrading and maintenance of high quality laboratory facilities as well as training of science and engineering faculty.
3. In view of the above, one of the prerequisites in joining the SEMDP Network is the schools’ full compliance with the Policies and Standards for Science Education as set by the Technical Panel for Science (TPS), in the case of science schools, and the Revised Policies and Standards for Engineering Education and the accompanying Revised Engineering Laboratory Requirements (RELR) as set by the Technical Panel for Engineering and Architecture Education (TPEAE), in the case of engineering schools.
4. After having complied one hundred percent with the above minimum standards, the ESEP network schools shall be entitled to assistance in the form of laboratory facilities and equipment to conform with the intermediate laboratory standards: ownership of such facilities to be retained by the government.
5. In line with the objectives of the SEMDP, the network schools may opt to contract loans to upgrade their laboratory and physical plant facilities to meet the required standards and to prepare for further upgrading beyond the minimum requirements set by the Technical Panels in order to provide the science and engineering students with the required hands-on exposure to advanced equipment used in research, development, design, and manufacturing.
6. in consideration of the foregoing, the selected schools are hereby authorized to assess, over and above their existing tuition and fee schedules, the Special Laboratory Tuition Fee (SLTF) and the Special Laboratory Development Fee (SLDF) defined as follows:
   6.1 SPECIAL LABORATORY TUITION FEE (SLTF)
   This fee shall be applicable to major laboratory courses presently being conducted on the basis of one (1) academic unit for three (3) actual 1aboratory hours. Consequently, the school may now be allowed to assess an SLTF equivalent to one (1) academic unit for the same three (3) actual hours of laboratory. These laboratory classes are experimental classes using the upgraded science and engineering equipment and/or physical facilities. Excluded in the above laboratory courses are non-experimental classes such as machine design, drafting, problem solving, seminar and other similar subjects.
   6.2 SPECIAL LABORATORY DEVELOPMENT FEE (SLDF)
   This fee which is collected on a per student and per semester (or trimester) basis shall be applicable to major laboratory courses (as described in 6.1) and shall be calculated based on the following formula:
   Total amortization (principal plus interest) of loan divided by ten (10) years divided by two (2) for schools on trimester basis or by three (3) for schools on trimester basis divided by total number of science and engineering students, where the “loan” refers to the money borrowed to purchase science and engineering laboratory equipment to meet TPS and TPEAE requirements and/or to build physical plant facilities for laboratories (not classrooms), and “amortization” refers to the amount of the annuity. Alternatively, the SLDF may be calculated separately for science, computer science and engineering students based on the amortization of loan contracted for each program.
7. The SLTF and SLDF shall be collected subject to the following conditions:
   7.1 All the SLTF and SLDF collected shall be accounted for in a separate fund called the Science and Engineering Laboratory Fund (SELF).
   7.2 All interest earnings from the SELF shall be credited to the fund.
   7.3 The SELF shall only be used for the payment of the amortizations (principal plus interest) of the loans as described in 6.2, maintenance and operation of the laboratory equipment, and future upgrading of the equipment.
   7.4 Laboratory instructors teaching courses described in 6.1 shall receive an additional credit load equivalent to one-half (1/2) of the difference between their present credit load and the number of hours (normally three) of the laboratory class. This additional compensation may be charged against the SELF.
   Illustration: For those receiving two (2) credit unit load for thee (3) hours of laboratory teaching, they will receive an additional compensation equivalent to one-half (1/2) credit unit load, making the total two-and-a-half (2-1/2) credit unit load.
   7.5 The school shall continue to allocate a separate budget to support the operation and maintenance of its laboratories at least equal to its budget for school year 1991-1992 plus yearly increases due to inflation.
   7.6 The school shall submit periodic reports of the SELF to the DECS and the DOST, which will exercise monitoring responsibilities on the proper collection and use of SELF.
8. Procedures for the Collection and use of the SELF.
   8.1 By the end of February of a regular-school year, the school shall calculate the proposed SLDF to be collected in the next school year based on the enrolment of the regular school year. The amount of the SLDF and the manner by which it is determined shall be submitted to the Steering Committee through the Project Implementation Committee (PICO) of the DOST for review and approval, in consultation with DECS. Funds spent after June 1, 1990 for purchase of equipment to meet TPS or TPEAE requirements may he included or used as basis for the calculation of the SLDF.
   8.2 The SLTF and the SLDF shall be collected during enrolment and shall he reflected explicitly in the assessment form.
   8.3 No later than four (4> weeks after enrolment, the school shall send an affidavit signed by its President reporting to the Steering Committee through the PICO a summary of the amount of SLTF and SLDF collected. At this time also, the SLTF and SLDF collected shall be transferred to a separate account called the “Science and Engineering Lah0ratory Fund” (SELF).
   8.4 The SELF shall be deposited in a separate savings account with a corresponding automatic-transfer current account for disbursement purposes.
   8.5 All disbursements from the SELF shall be supported by documents and vouchers that are sequentially numbered and approved by the controller and/or treasurer of the school.
   8.6 At the end of the months of April, August, and December, a summary report on the SELF shall he submitted to the Steering Committee through the PICO showing the following:
   8.6.1 Balance of fund from the previous period
   8.6.2 Collections during the present period
   8.6.3 Interest earnings during the present period
   8.6.4 Disbursements during the present period
   8.6.5 Balance of fund
   8.7 The summary report shall be signed by the c0ntr0ller 0r treasurer and the President 0f the sch00l, and audited by an external auditor. The PICO and DECS may review the v0uchers and other supporting documents in the possession of the school relating to the SELF.
9. After the duration of the loan, the SLTF and the SLDF shall continue to be collected to provide for funds to continuously upgrade and maintain the laboratory equipment and facilities.
10. The SLTF and the SLDF shall be considered as special fees which are intended solely for the expenses described in Items 5 and 6 above. As such, therefore, these fees shall not be considered as tuition fee revenue or increases.
11. Other imp1ementing guide1ines shall be issued as needed by the Steering Committee.
12. All Orders and issuances inconsistent with this Order are hereby superseded, amended or modified accordingly.
13. This Order shall take effect immediately with the proviso that the actual collection of the SLTF and the SLDF will start only on the semester or trimester after the laboratory equipment have been installed and/or the physical plant facilities have been constructed and ready for use.

References: DECS Orders: Nos. 76 and 102, s. 1989
Allotments: 1-4—(M.O. 1-87)

To be indicated in the Perpetual Index under the following subjects:
COMMITTEES
Course of Study, COLLEGIATE
FEES
POLICY
RULES & REGULATIONS SCIENCE EDUCATION