To: Bureau Directors
Regional Directors
Schools Superintendents
Heads of Private Schools, Colleges and Universities

Declaration of Policy

1. R.A. No. 6728 entitled “An Act Providing Assistance to Students and Teachers in Private Education, and Appropriating Funds Therefor,” 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 rules of public and private schools in the educational system and the invaluable contribution they make to education.
2. The Educational Service Contracting (ESC) Scheme which has been managed and administered by the Fund for Assistance to Private Education (FAPE) since SY 1986-87 is now directly administered by the Bureau of Secondary Education (BSE), Department of Education, Culture and Sports (DECS) through the DECSROs effective SY 1991-92.
3. The Tuition Fee Supplement for high school students is administered by BSE and will continue to be under the administration and supervision of that Bureau through DECSROs.Features of the Program
4. In Educational Service Contracting (ESC), the government and a private school may enter into a contract for the purpose of accommodating students in said private school. The government pays the tuition and other school fees of students who cannot be accommodated in public schools because of lack of teachers, space or facilities, or similar reasons. The scheme may also be applicable in communities where there is no public school and the only educational service available is in a private school, subject to availability of funds after all other requirements have been met and explicit approval by the Regional Director concerned as to the number of students to be accommodated has been secured.
5. ESC payment per student grantee shall be at the rate prescribed by the school for other students but not to exceed P1,320.00.
6. The Tuition Fee Supplement (TFS) is a subsidy given by the government in the amount of two hundred ninety pesos (P290.00) per student enrolled in a private secondary school which charged less than P1,700.00 including subsidy for SY 1991-1992.Implementing ESC and TFS Guidelines for SY 1992-93
7. These guidelines on the management and implementation of the two assistance programs for high school students (ESC and TFS) are hereby promulgated for school year 1992-93 and shall be enforceable and in effect until otherwise changed, modified or repealed.
   1. Project Management
      1. State Assistance Council (SAC) shall be responsible for policy guidance and direction, monitoring, evaluation, and the promulgation of rules and regulations of GASTPE programs (ESC and TFS).
      2. BSE-GASTPE Unit is composed of:
         Chairman – BSE Director IV
         Vice-Chairman – BSE Director III
         GASTPE Coordinator – Chief, Staff Development Division
         ESC Coordinator and Members
         TFS Coordinator and MembersResponsibilities of the Unit:
         Supervises, monitors, and oversees the implementation of ESC and TFS programs in all participating private schools;
         Sends written communications to Regional Project Committee (RPC) on DECS guidelines and policies through channels;
         Collects, collates, and interprets pertinent data on ESC/TFS from the RPC and makes periodic reports whenever needed; and
         Evaluates/assesses the ESC/TFS program implementation.
      3. Regional Project Committee (RPC)
         Chairman – Regional Director IV
         Vice-Chairman – Regional Director III
         GASTPE Coordinator (Secondary Level) – Chief, Secondary Education Division (SED)
         Asst. Coordinator – Asst. Chief, SED
         Members: Head, Private Schools Association
         NEDA Representative
         DLG Representative
         PSAS (Private Schools Area Supervisor)Responsibilities of the RPC:
         Sets up Division Coordinating Committees (DCC) to handle ESC/TFS at the division level;
         Identifies sites where excess enrolment is registered;
         Supervises, monitors, and oversees the implementation of ESC/TFS programs in the regional level;
         Provides BSE-GASTPE Implementing Unit with needed ESC/TFS data/reports;
         Disseminates relevant information on ESC/TFS Implementing rules;
         Resolves issues/problems on ESC/TFS programs in the regions; and
         Disburses ESC/TFS funds to participating schools/beneficiaries and submits duly certified periodic updates to BSE-GASTPE Implementing Unit.
      4. Division Coordinating Committee (DCC)
         Chairman – Schools Division Superintendent
         Vice-Chairman – Asst. Schools Superintendent for Secondary Level
         Members: Private Schools Are Supervisor (PSAS)
         Principal, Public High School
         Principal, Private High School
         Civic Sector Representative
         Municipal Development Office RepresentativeResponsibilities of DCC:
         Identifies overflow students according to guidelines set;Checks, reviews, and processes ESC/TFS required documents presented by participating private schools;Monitors and confirms enrolment data;

         Prepares and submits needed statistical data on ESC/TFS programs to RPC; and

         Endorses to RPC a duly certified:

         1. TFS list of participating schools indicating the number of beneficiaries (after deducting the total number of ESC grantees from the total enrolment) and the amount claimed (number of beneficiaries multiplied by P290)
         2. ESC list of participating schools indicating the number of grantees by year level and the total amount claimed (actual tuition and other fees charged). These lists should be duly certified by the Division Finance Officer and the Schools Division Superintendent.
   2. Procedural Management
      1. Educational Service Contracting (ESC) Scheme
         a. Selection of Schools
         Any duly recognized private high school in the student’s area of residence may participate in the ESC.
         A school may be excluded from the ESC program when it does not comply with ESC guidelines, has low NCEE performance, high dropout rate, has congested classrooms, and inadequate support facilities.
         When a school is excluded from further participation in ESC, the RPC shall make a report to the BSE-GASTPE Unit.
         b. Selection of ESC Grantees/Enrolment Procedure
         Public high school principal implements early enrolment schedule on a first-come-first-served basis; number the names in the list consecutively until the prescribed limit is reached; the limit shall be determined by the Regional Director based on the existing physical facilities of the public schools as well as the number of teachers available.Students enrolled after the school quota as determined by the Regional Director has been filled, are considered excess or overflow.The public high school principal issues an individual Certification of Excess Enrolment to each overflow student advising him/her to enroll in a duly recognized private school of his/her choice in the area of his/her residence under the condition that the government shall pay tuition and other fees actually charged by the school up to a maximum of P1,320/annum.The overflow student presents Certification of Excess Enrolment from the public high school principal, his elementary report card and parent’s latest income tax return or certification of family income, to the private high school principal participating in the ESC program and undergoes the normal enrolment procedure. Among ESC grantees, preference is given to overflow students whose family income is not more than P36,000 per annum.

         In a municipality where there is no public school and the only educational service available is in a private school, ESC may be undertaken subject to availability of funds. However, priority will be given to students who are residents of the community and come from families whose income falls below the poverty line as defined by NEDA.

         After the enrolment of excess/overflow students, the private high school principal prepares a Certification of Enrolment together with the tuition fee schedule per year level and submits them to the Schools Division Superintendent, Chairman of DCC.

         After checking and reviewing the list of ESC grantees, the Schools Division Superintendent endorses it to the GASTPE Regional Coordinator who, in turn, prepares the summary list of ESC grantees including the tuition fee schedule per school participating in the program.

         The Regional Coordinator submits such list to the BSE-GASTPE Unit at the 3rd Floor, Bonifacio Building, University of Life Complex, Pasig, Metro Manila, for budget allocation.

         Replacement of dropout ESC grantees is not allowed. ESC grantees who drop out shall no longer be eligible for any GASTPE grant.
         c. Conditions and Limitations of Student Participation
         Once the student is enrolled as an ESC grantee in a participating private school, he shall be considered a bona-fide student of said school and shall be subject to the rules and regulations of that school.

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

         In the event that the tuition and other school fees of a private school exceed the set ceiling, it may collect the balance from an ESC grantee provided that the student is notified of said arrangement and the consent of his parents is obtained. Initial processing of papers for payments to be made to participating schools will be done by the DCC.

         Payments are processed at the DECSROs which issue checks directly to the participating schools.

         ESC privilege shall terminate if grantee transfers to another private school outside the region.

         In schools where ESC grantees drop out or transfer within the year, the government through DECS shall pay to the school:
         1. 10% of the subsidy of ESC grantees drop out or transfer within the first week after the start of classes;
         2. 20% of the subsidy if ESC grantees drop out or transfer after the first week or within the second week after the start of classes, regardless of whether or not students have actually attended classes (Section VII, par. 137, entitled: Tuition and Other Fees of the Manual of Regulations for Private Schools, 7th Edition, 1970.);
         3. 50% of the subsidy if ESC grantees drop out or transfer after the second week or within the third week after the start of classes.
         4. 100% of the subsidy if ESC grantees drop out or transfer anytime after the 4th week of the start of classes.
         The Directors/Administrators of the ESC participating schools shall refund to the regional offices, through channels, payments for grantees who drop out or transfer. The regional offices shall remit to the DECS Accounting Office, Rizal II Bldg., University of Life Complex, Pasig, Metro Manila, all refunded amounts as well as balances at the end of the school year.

         The ESC participating schools should furnish the Bureau of Secondary Education, through the DECS Regional Office the official dropout or transfer form of students duly certified and under oath.

         ESC grantees who are enrolled in the first and second year of ESC participating schools should return to their original schools to seek accommodation after the year ends.

      2. Tuition Fee Supplement (TFS)
         a. Procedure
         Private high schools which charged tuition and other fees less than P1,700 including subsidy in SY 1991-92, shall register with the DCC on or before July 25, 1992 and every year thereafter, using TFS Form 1 (Tuition and Other Fees Supplement Voucher) to be prepared in quadruplicate: one copy for the Division, one copy for RPC, one for the school and one for public posting in school premises. The data in Form 1 shall be the basis for payment of TFS claims.The DCC Chairman prepares and submits to the RPC a report on tuition fee supplement claims for SY 1992-93 using TFS Form 2 not later than August 20, 1992. The data in Form 2 will be the basis for budgetary allocation.GASTPE Regional Coordinator (GRC) prepares the consolidated report also using TFS Form 2 and submits it to the BSE-GASTPE Unit not later than August 30, 1992.Vouchers are processed at the DECSROs which issue checks directly to the schools corresponding to the aggregate amount indicated in the vouchers.

         After the payment of participating schools, GRC submits the following:
         periodic disbursement update using TFS Form 3
         year-end report using TFS Form 4
         a final report using TFS Form 5 before the end of the school year addressed to:

         The GASTPE Unit
         Bureau of Secondary Education
         3rd Floor, Bonifacio Bldg.
         University of Life Complex
         Pasig, Metro Manila

         In case there are balances to be paid, a duly certified financial statement by the Regional Finance Officer indicating the school and the exact amount due shall be submitted to BSE to serve as basis for additional allotment.
         b. Limitation of Student Participation
         An awardee is disqualified from TFS benefit if:
         He fails in majority of the academic subjects he enrolled in for one school year, unless such failure is due to some valid cause beyond his control; and
         He transfers residence outside the region.
         c. Allocation of Proceeds
         Seventy percent (70%) of the tuition fee increase 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 schools. It may be used to cover increases as provided for in the collective bargaining agreement existing or in force at the time when R.A. 6728 was approved and made effective.

         Government subsidies are not used directly for salaries of teachers for non-secular subjects.

         At least twenty percent (20%) shall go to the improvement or modernization of buildings, equipment, libraries, laboratories, gymnasia and similar facilities and to the payment of other costs and operation.

         A certification on the above allocation of proceeds shall be attached to the final report on GASTPE at the end of the school year.
         d. Penalties
         In case of any violation of these guidelines and the provisions of R.A. 6728, the DECS, upon recommendation of SAC, may bar the institution 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 filled against the school and/or its responsible officers under existing laws. It will also not allow the institution to raise its tuition and other fees.

         Any school who 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.

8. Inclosure A are ESC Forms 1, 2, 3 and 4. Inclosure B are TFS Forms 1, 2, 3, 4 and 5.
9. All DECS rules, regulation, and other issuances or parts thereof, which are inconsistent with this Order are hereby repealed or modified accordingly.

Incl.: As stated
Reference: DECS Orders: No. 120, s. 1990; 58 and 85, s. 1991
Allotment: 1-2-4—(M.O. 1-87)

To be indicated in the Perpetual Index under the following subjects:
AMENDMENT
FEES
LEGISLATION
RULES AND REGULATIONS
SCHOOLS
STUDENTS
UNIVERSITIES AND COLLEGES

DO_s1992_67