To: Regional Directors
Schools Division/City Superintendents
Heads, Public Elementary and Secondary Schools
Others Concerned

1. To rationalize the allocations for certain expenditures, the following budgetary items previously reflected as regionwide lump-sums are now treated as nationwide lump-sum appropriations under Republic Act No. 9336, the General Appropriations Act of Fiscal Year 2005:
   1. Salary adjustments based on approved Equivalents Record Form (ERFs);
   2. Conversion of teaching items to Master Teacher positions;
   3. Reclassification of positions; and
   4. Payment of step increments (prospective).
2. The Secretary of Education or his duly authorized representative, in this regard, is given the full flexibility in allocating the funds according to the needs of each Regional office, subject to availability of the funds.
3. All requests pertaining to the above-mentioned expenditures, as properly evaluated and indorsed by the Schools Division Superintendents and Regional Directors concerned, shall be submitted to the Office of the Secretary, thru the Budget Division, Financial and Management Service, this Department (attention: Mr. Armando C. Ruiz, Chief Administrative Officer), using the prescribed forms hereto attached.
4. Pertinent documents supporting the requests such as Plantilla Allocation Lists, copies of approved ERFs, updated Service Records and others, as the case maybe, need not be submitted to the Central Office. Such should be submitted directly to the concerned Regional Office of the Department of Budget and Management for their further evaluation and appropriate action. The staff of the Budget Division, FMS, this Department will notify each Region when to forward the said documents to the DBM-ROs concerned.
5. Equivalents Record Form (ERF’)
   The new cut-off date for the implementation of the approved ERFs is 31 December 2003. However, the requests for salary adjustments of teachers with ERFs approved prior to and up to 31 December 2002 which have remained unimplemented to date shall be given top priority.
6. Step Increment for Implementation in 2005
   The requests for release of funds for payment of salary step increment shall be supported by a certification on non-availability of personal services savings.
7. Reclassification of Positions
   In view of the meager amount provided for the reclassification of positions, priority shall be given to reclassification of teaching and teaching-related items such as Teacher-in-Charge to Head Teacher, Head Teacher to Principal, etc.
8. The effectivity date for the implementation of salary upgrading due to ERFs, conversion to MT items, and reclassification of positions is not retroactive but upon the approval by the DBM-ROs. Salary step increments, however, are effective on the date an employee becomes entitled to such benefit in pursuance to existing DBM and CSC rules and regulations.
9. Regions/Divisions are to compute the funding requirements for the implementation of ERFs, conversion of teaching items to Master Teacher positions, reclassification of positions, and to prepare the necessary pertinent documents to support the requests. The submission period starts July 15, 2005 but shall not go beyond October 15, 2005. Submit early since the availment of the lump-sum funds shall be on a first come, first served basis.
10. Immediate dissemination of this Order is desired.

Encl.:
As stated
Reference:
None
Allotment: 1—(D.O. 50-97)

To be indicated in the Perpetual Index under the following subjects:
FORMS
FUNDS
SALARY
TEACHERS

DO_s2005_040