May 16, 2005

CHED MEMORANDUM ORDER NO. 014-05

In accordance with the pertinent provisions of

ARTICLE I

Coverage

SECTION 1. These guidelines and procedures shall cover increase in tuition and other school fee charges, including new fee charges of Higher Education Institutions.

ARTICLE II

Definition of Terms

SECTION 2. Consultation. A meeting to discuss or plan something in a free and candid atmosphere, with participants given the opportunity to air their sentiments and views on the issues at hand. It must be conducted with legitimate and authorized representatives of student councils/governments/organizations, faculty, non-teaching personnel and/or alumni associations whenever applicable as certified by the HEI concerned.

SECTION 3. Financial Statements. Statement of Income and Expenses, Balance Sheet Statement, Cash Flow Statements.

SECTION 4. Incremental Proceeds. Amount of increase in school income resulting from the increase in tuition and other fees.

SECTION 5. New Fees. Proposed additional charges other than tuition and other existing school fees. TCDHIc

SECTION 6. Other School Fees. Charges in addition to tuition that are collected for a specific purpose or service, as may be identified by the school authorities such as: medical and dental, athletic, audio-visual, guidance, insurance, laboratory fee, laboratory deposit, library fee, student organization, internet, school publication, energy, developmental, related learning experience, study tours, miscellaneous, etc.

SECTION 7. Tuition. Used to refer to the charges for instruction and general services of all students per unit of courses enrolled in.

ARTICLE III

Allowable Fee Increases and Consultation Requirements

SECTION 8. Tuition and Other Fees.

The allowable increase in tuition and other fees should be not more than the prevailing national inflation rate.

Increases in tuition and other fees [over and above the national inflation rate shall be subject to consultation with stakeholders and approval of the Commission on Higher Education.

SECTION 9. Consultation for Private HEIs

Consultations shall be required for increase in existing tuition, other school fees, and new fees.

SECTION 10. Exemptions

Consultations shall not be required for the following:

a) The rate of increase in tuition and other fees is less than or equivalent to the rate of the prevailing year s national inflation rate as determined by the National Economic Development Authority (NEDA).

b) Tuition for incoming freshmen. However, any increase shall be based on prevailing national inflation rate.

SECTION 11. Consultation Process

11.1 Consultation must be initiated by School Heads and be conducted not later than February 28 prior to the Academic Year (AY) the intended increase shall take effect. The consultation must be done within the concerned school premises.

11.2 Notices must be posted at conspicuous places within the school campus at least thirty (30) days before the actual consultation.

11.3 Higher Education Institutions intending to conduct consultation should inform the CHEDRO concerned 15 days before the scheduled consultation. DETcAH

11.4 Consultations shall be done with legitimate and authorized representatives from the recognized:

a.) supreme student councils/governments;

b.) faculty unions;

c.) non-teaching personnel associations and/or

d.) alumni associations.

Each sector will be allowed at most three representatives. In the absence of a student council/government in an HEI, the student organizations and societies recognized by the HEI shall select not more than three representatives who will participate in the consultation.

11.5 The HEIs latest audited financial statements and tuition utilization shall be made available to the authorized representatives of the aforementioned groups, upon request.

11.6 The recognized student publication should be allowed to cover the consultation.

ARTICLE IV

State Universities and Colleges

SECTION 12. Consultation Process for State Universities and Colleges (SUCs)

As provided for in Section 4(d) of

However SUCs are enjoined to undertake the same process of consultation as herein indicated. aDSHCc

ARTICLE V

Certification and Documentary Requirements

SECTION 13. The following documents must be submitted to the CHED, through the Regional Offices concerned, not later than April 1 of the preceding Academic Year (AY) the intended shall take effect:

a. Letter of Advice (LOA) signed by the President/School Head informing the concerned Agency of its intention to increase tuition and other school fees or introduce new fees;

b. Certification of Conduct of Consultation (CCC) duly notarized containing the following information:

1) tuition utilization

2) proposed increase in other fees and how the increases are to be used (Annex A).

The following will be attached: a) the minutes and b) attendance sheet signed by the concerned School Heads and the aforementioned authorized representatives to the consultation. If the authorized representatives refuse to sign, a notation shall be made in the said document which shall be submitted for notarization.

The CCC shall be signed by the school head shall be countersigned by the President or in his absence, the Vice President of the student council/government to assure that appropriate consultation/s, as herein provided for, has been conducted accordingly.

This certification shall include a list of officers of its student council/government duly signed by them and/or in their absence, the duly recognized student organizations/societies, with their corresponding officers.

c. A Certification of Compliance (COC) signed by the School Head and duly notarized, stating that seventy percent (70%) of the previous year s incremental proceeds from tuition fee increase were used for the payment of increase in salaries, wages, allowances and other benefits of its teaching and non-teaching personnel and other staff, except principal stockholders of the HEI who are holding executive/managerial administrative positions; twenty percent (20%) of the same was expended for the improvement or modernization of school buildings, equipment, and other costs of operation during the previous AY from whence the application was applied from; and that the total other school and new fees were spent for the items specified in the approved application (Annex B).

d. The Certification of Intended Compliance (COIC) shall be certified under oath by the school head, duly signed by the aforementioned authorized representatives and posted on the HEI's bulletin boards and other conspicuous locations inside the campus. This should specify the purposes of the allocation of increase in tuition and incremental proceeds (Annex C).

e. A Certification of Agreement signed by the duly authorized representatives of the HEI's Administration, Student Councils/governments, Faculty, Alumni and/or non teaching personnel associations whenever applicable in cases that application of new fees are initiated and agreed upon by the students (Annex D).

f. A comparative schedule of tuition and other school fees for the current AY and the proposed increases for the ensuing AY, with the differences expressed in both peso and percentage terms (Annex E).

g. Annual Report on the increases in other fees and the intended utilization (Annex F). DEICTS

ARTICLE VI

Obligations of CHED Offices

SECTION 14. Regional Offices of CHED (CHEDROs)

The Regional Offices shall:

14.1 Attend to the applications of HEIs for increases in Tuition and Other Fees subject to the conditions stipulated in this CMO. Should the CHEDRO fail to act within 30 days from the filing of application but in no case later than April 15 of the year the intended increase shall be implemented then, this means the CHEDRO has no objection to the said application.

14.2 Regularly monitor the implementation of tuition and other school fee increase and new fees in HEIs under their jurisdiction particularly the consultation process and allocation of incremental proceeds derived from fee increases;

13.4 Prepare a report on increases in tuition, other school fees, and new fees, and similar related developments thereto, for submission to CHED Office of the Executive Director on or before April 15 of every academic year;

14.4 In appropriate instances, elevate to the Regional Task Force on Tuition and Other School Fees the unresolved cases on tuition and other school fee increase, and new fee disputes.

For applications referred by the CHEDROs to the Regional Task Force on Tuition and Other Fees, the CHEDROs shall endorse the application with its recommendation to the Executive Director within 30 days upon resolution by the Task Force but in no case later than April 15 of the year the intended increase shall be implemented.

14.5 Act as Chair and secretariat of the Regional Task Force on Tuition and Other School Fees. ECaScD

SECTION 15. Executive Director s Office

15.1 The Executive Office shall maintain the consolidated report on Increase of Tuition and Other Fees, and New Fees and other related developments thereto including actions done by the CHEDROs.

15.2 The Executive Director shall handle disputes on applications for tuition and other fee increases including new fees not resolved by the Regional Task Force on Tuition and Other Fees.

15.3 Inform CHEDROs on the action taken to resolve complaints, disputes, and disagreements on the applications for increase in tuition and other school fees and for new fees.

ARTICLE VII

Regional Task Force on Tuition and Other School Fees

SECTION 16. Composition of the Regional Task Force on Tuition Fee and other School Fees

A Regional Task Force on Tuition Fee and other School Fees shall be organized at the regional level composed of:

1) CHED Regional Director Chairman

2) National Economic Development Authority Vice Chairman

3) Philippine Association of State Universities and Colleges (PASUC) member

4) Coordinating Council for Private Educational Associations (COCOPEA) member

5) Association of Christian Schools, Colleges and Universities (ACSCU) member

6) Catholic Educational Association of the Philippines (CEAP) member

7) Regional Faculty Union Representative member

8) Regional Student Representative to be designated by the National Youth Commission (NYC) member

9) National Anti-Poverty Commission (NAPC) member

SECTION 17. Functions of the Task Force

17.1 The task force shall serve as recommendatory body for all complaints, disputes and disagreements on applications for increases in tuition and other school fee and for new fees implemented in HEIs under the CHEDRO's jurisdiction. DCAHcT

17.2 Failure of the said Task Force to act within 30 days from receipt of the cases elevated to them shall result in the implementation of increase in tuition and other school fees as well as new fees.

SECTION 18. In cases where a Higher Education Institutions increased tuition, and/or other fees or introduced new fees which are contested by students or other concerned parties, such increases shall be deposited in escrow until such time that the case is resolved and increments distributed accordingly or the amount of tuition and other fee increases as well as new fees are returned to the students.

ARTICLE VIII

Sanctions

SECTION 19. In case of any violation of the provisions of these guidelines, the concerned CHED Regional Office, after complying with the foregoing procedures, may bar or cancel the HEI from effecting tuition and other school fee increases and new fees, without prejudice to the filing of administrative case against it and/or its responsible officers and the imposition of penalties such as revocation of permits, downgrading of status, phase-out and such other penalties that may be validly imposed by the Commission.

ARTICLE IX

Repealing Clause

SECTION 20. All previous issuances inconsistent with this guidelines are deemed repealed, revoked or rescinded accordingly.

ARTICLE X

Effectivity

SECTION 21. These guidelines shall take effect 15 days after publication in a newspaper of general circulation and shall remain in force and effect until revoked or amended.

Issued this 16th day of May 2005, Pasig City, Philippines.

For the Commission:

(SGD.) CARLITO S. PUNO
Acting Chairman
Commission on Higher Education