May 7, 2010
DO 41, s. 2010
Guidelines for the Implementation of FY 2010 School-Based Management (SBM) Grants
  1. To sustain the reforms under the Basic Education Sector Reform Agenda (BESRA) in pursuit of quality basic education for all, the Department of Education is continuing the provision of School-Based Management Grants to public elementary and secondary schools using funds from the FY 2010 General Appropriations Act (GAA).
  2. For uniformity of implementation and other reporting requirements, the provisions of DepED Order Nos. 55, s. 2008 and 75, s. 2009 containing the guidelines for the FY 2007 and 2009 SBM Grants and all the annexes of said Orders are herein employed, save for some modifications described hereunder:
2.1. Allocation of SBM Grants
  1. All regions and divisions shall receive the FY 2010 SBM Grant, to be allocated equitably in this manner – 70% weight shall be assigned to the prorated distribution of the total number of schools in the division/region, and 30% to the average of three (3) crucial performance indicators, namely: participation rate, cohort survival rate and achievement rateAnnex 1shows the allocation per region and division.
  2. It is understood that low performing divisions shall be given priority in the allocation of SBM Grant to enable them to catch up with the other areas of the country.
  3. To prevent the accumulation of unliquidated cash advances by regions and divisions, the release of allotments to recipient divisions shall be dependent upon the full liquidation of prior SBM Grants under FY 2006-2009 GAA and SPHERE. Evidence of such liquidation of cash advances by concerned divisions shall be forwarded to this Office, Attn.: OPS-PPD at telefax: (02) 638-8634 and email address copy furnished Ms. Molyn Dionela at Accounting Division, at telefax (02) 633-7201, email address molyn and the Regional SBM Task Force. For those divisions that have yet to liquidate their prior cash advances, a template for this purpose is in Annex 2.


2.2. Selection and Prioritization of School Recipients
  1. All schools regardless of size and location are deemed eligible for the grant. However, priority shall be accorded to those schools that have not yet benefited from similar grants in the past. These priority schools shall be ranked using the average of promotion rate, retention rate, dropout rate and achievement rate as reflected in the Basic Education Information System of the most recent SY. Low performing schools will be given priority in case of new recipients.
  2. For those schools that have availed of the SBM Grant in the past, they may still qualify for this year’s Grant, subject to the demonstration of school improvement. Among others, the schools should be able to show the:
  1. Absence or minimal unliquidated cash advances (all sources) as certified by the Division Accountants;
  2. Improvements in achievement level, drop out rate and promotion rate;
  3. Utilization of SBM self assessment tool in determining the level of SBM practice;
  4. Absence or minimal number of non-readers, frustrated readers and/or non-numerates;
  5. Fully Functional School Governing Council
The Division SBM Task Forces are advised to accomplish Annex 3 in confirming the eligibility of schools who have received the previous grants. Failure to show evidence of three (3) out of five (5) basic indicators forfeits school’s opportunity to receive this year’s SBM Grant. The SBM Task Forces must ensure strict implementation of this provision.
  1. The concerned Schools Division Superintendents shall call for the submission of school proposals for those schools identified as priority. All proposals must dwell on the provisions of SIP and must be incorporated in their respective Annual Improvement Plans.
  2. The Division SBM Task Force shall forward a Summary Report of the prioritization and the result of evaluation of school proposals (Annex 4) to Planning and Programming Division, Office of Planning Service (PPD-OPS), DepEd Complex, Meralco Avenue Pasig City on or before June 15, 2010 at telefax no.: (02) 638-8634 or email address: sbmgrants@yahoo.comcopy furnished the Regional SBM Task Force for review and evaluation and onward endorsement to Budget Division for the release of funds.
2.3. Amount of SBM Grant
The amount of SBM Grant for each recipient school shall be Fifty Thousand Pesos (PhP 50,000).
2.4. Eligible Activities/Expenditure Items
  1. School Grant:
  1. The FY 2010 SBM Grant shall be used to finance activities intended for SIP/AIP implementation including other items listed hereunder.
  2. Eligible Expenditures are the following:
Elementary Schools
  • supplies and materials (for the development of supplementary instructional materials and implementation of school-based teacher training);
  • food and supplies for school feeding (not exceeding 15% of the total grant);
  • Medical and Dental Supplies including weighing scale (not exceeding 5% of the total grant);
  • meals during meetings and school-based teacher trainings (not exceeding 10% of total grant);
  • reproduction cost of teaching and learning materials, per DepEd Order Nos. 112 and 119, s. 2009 (not exceeding 20% of the total grant); and
  • minor repairs of school furniture (not exceeding 15% of the total grant).
Secondary Schools
  • supplies and materials (for the development of supplementary instructional materials and implementation of school-based teacher training);
  • supplies and materials for science (chemistry and biology) laboratories (not exceeding 15% of the total grant);
  • reproduction cost of teaching and learning materials, per DepEd Order Nos. 112 and 119, s. 2009 (not exceeding 20% of the total grant);
  • minor repairs of school furniture (not exceeding 15% of the total grant); and
  • Library supplies (not exceeding 10% of the total grant).
  1. Ineligible expenditures are the following:
  • hiring and payment of salaries of additional staff;
  • purchase of equipment (per latest COA circular);
  • payment of allowances and/or honoraria;
  • training of school or cluster heads in SBM; and
  • Payment of utility bills (electricity, telephone, water, broadband, cable) and all other expenditures chargeable against the school’s Maintenance and Other Operating Expenses (MOOE) budget
  1. Program Support Fund
  1. Program Support Funds will be provided at the regional, division and national levels to support activities relative to giving technical assistance to schools and to quality assure the implementation of SBM. The amounts are also reflected in Annex 1. Accomplishment and utilization reports of previous Regional and Division PSF shall be submitted with the proposed work plans for FY 2010 (Annexes 5 & 6) to contacts stated in Section 2.1.c, this Order.
  2. Eligible activities are the following:
  • SBM Grant monitoring and evaluation;
  • hiring of additional support personnel;
  • purchase of office supplies;
  • minor repair and maintenance of office equipment; and
  • conduct of meetings, consultation, orientation.
2.5. Miscellaneous Provisions
  1. For newly created divisions, the SBM grants shall be released to their mother divisions. The Regional SBM Task Force is hereby authorized to decide on the distribution of the funds between the mother and newly created division/s using the 30-70 formula described in Item 2.1 a. A copy of said decision by the Regional SBM Task Force must be sent to OPS within a month from release of this Order.
  2. In cases where school heads could not draw cash advance due to legal and administrative impediments, the Schools Division Superintendent shall take immediate appropriate action to ensure that such schools will not be deprived of the grant.
  3. The Regional and SBM Task Forces and the Planning Officers are hereby directed to submit Progress Report of SBM Grant implementation to PPD-OPS on a monthly basis. The same teams are also expected to monitor and report on the activities charged against the Program Support Funds sourced from FY GAA and to ensure that all are fully liquidated at the close of the school year.
  1. Other DepEd Orders found inconsistent with this Order are hereby amended, superseded, or modified accordingly.
  2. Immediate dissemination of and compliance with this Order is directed.
    Mona D. Valisno

    DO No. 41, s. 2010