April 16, 2012

CHED MEMORANDUM ORDER NO. 009-12

GUIDELINES ON THE GRANT AND ALLOCATION OF THE DISBURSEMENT ACCELERATION FUND OF P4.28 BILLION BY THE COMMISSION ON HIGHER EDUCATION FOR STATE UNIVERSITIES AND COLLEGES (SUCS) IN SUPPORT OF THE REFORM AGENDA FOR PUBLIC HIGHER EDUCATION (2011-2016)

Pursuant to the authority of the Commission on Higher Education under DCHaTc

I. Rationale

The main rationale for the creation and maintenance of state universities and colleges (SUCs) is to provide access to more affordable, good quality education for the poor and disadvantaged, to ensure equity of access to higher education while at the same time serving as instruments of development in their regional and national contexts. SUCs should therefore ideally focus on priority programs in the triad of functions, e.g., instruction, research and extension, in areas where the private sector cannot adequately respond to. These public higher education institutions, as a matter of priority, should also cater to the geographic areas that are not covered by private sector provision. However, the unplanned and unchecked proliferation of SUCs campuses and programs has resulted in uneven distribution and provision of education services and has given rise to inefficiently utilized resources and duplicative programs that tend to crowd out the private sector. Moreover, without corresponding increase in funding, the expansion of SUCs campuses, programs and enrolments would spread resources thinly across a big number of beneficiaries, leading to underinvestment per capita and poor quality of education provision which undermines the capacity to perform their special developmental roles.

Thus, the SUCs are facing two major challenges at present the need to provide access to quality higher education, and to generate/adapt/transfer technologies that would efficiently and effectively enhance productivity, alleviate poverty and improve the country's state of competitiveness. Addressing these challenges requires substantial investments. In an effort to respond to these pressing concerns, and sensitive to these challenges faced by the SUCs, the National Government has correspondingly provided the financial resources out of the current Disbursement Acceleration Funds, and entrusted to the Commission on Higher Education the important task of rationally allocating these substantial funding resources pursuant to the principal guidelines based on and aligned to the Roadmap for Public Higher Education Reform (2011-2016). The Commission has been tasked to formulate the herein guidelines to ensure that goals and objectives are properly met through effective and efficient mechanisms that are institutionalized in the SUC bureaucracy as well as in the Commission itself, guided by the principles of transparency and accountability, with no other purpose but to enhance the capabilities of SUCs to meet and address the abovementioned challenges.

II. Objectives of the Disbursement Acceleration Program

In general, the main objectives of public higher education reform are:

A. To rationalize the public higher education system, improve its internal and external efficiency, optimize resource utilization and maximize resource generation among SUCs; cEATSI

B. To improve the quality of educational outcomes and increase the social relevance of its developmental functions; and

C. To enhance access to quality higher education among lower income & disadvantaged groups.

The policy package will synchronically pursue the twin strategic roles of higher education in national development outlined in the Philippine Development Plan (PDP) 2011-2016:

Instrument for poverty alleviation

Vehicle for technologically-driven national development and global competitiveness

These reforms proposed for implementation in the next six years reaffirm and build on reform measures that were proposed in the Congressional Education Commission (EDCOM), the Philippine Education Sector Study (PESS 1998) and the Presidential Commission on Educational Reform (PCER 2000) and subsequently initiated through the Higher Education Development Project (HEDP) in 2004-2009.

Thus, for this purpose, the Commission has embarked on this Disbursement Acceleration Program aligned towards the implementation of the Roadmap for Public Higher Education Reform covering a six-year period (2011-2016), which lays out the initiatives and performance measures, as well as the significant milestones to be achieved towards the realization of the needed reforms.

III. Guiding Principles and Target Outputs for the Grant of the Fund

This Disbursement Acceleration Plan shall be implemented primarily for the State Universities and Colleges existing as of the date of effectivity of this guidelines, provided that the grant and disbursement of the funds provided herein shall be in accordance with the rationale, objectives and specific implementing guidelines for each Program/Project component covered under the Plan.

The FUND Allocations to specific SUCs shall be distributed by the Commission in such amount and in such manner guided by the following principles and criteria aligned to the reform agenda being pursued by the National Government, that shall take into account the primordial objectives of creating a critical mass to propel the country's competitiveness as well as to institutionalize measures for a proper Regional equitable distribution of the FUND: SHECcD

A. Quality and Excellence

B. Regional and Pre-Amalgamation Complementation of PHEIs and Commitment to Research

C. Equity and Access to Quality Higher Education

Guided by the Rationale of the DAP and to achieve the stated objectives for the higher education reforms aligned to the National Government's Roadmap for Higher Education Reform (2011-2016), the priority thrusts of and deliverable actions from the publicly-funded HEIs shall conform to the following critical areas of directional changes outlined in the said Roadmap:

1. Rationalizing the number, distribution and growth of SUCs and LUCs

2. Rationalization of SUC/LUC program offerings

3. Rationalizing resource utilization and maximizing resource generation by SUCs

4. Strengthening quality assurance in SUCs and LUCs

5. Upgrading the qualifications and competency of faculty

6. Upgrading leading SUCs to international standards

7. Modernizing facilities of developing SUCs

8. Strengthened Student Financial Assistance Programs

9. Strengthening Public HEI Management through the Executive Development Plan

IV. Fund Source and Program/Project Components

This Disbursement Acceleration Program shall be funded by the National Government in the total amount of FOUR BILLION TWO HUNDRED EIGHTY FOUR MILLION FOUR HUNDRED THOUSAND PESOS (P4,284.4 Million), according to the following Allocation of Funds per Program Component as approved by the National Government, and shall distributed taking into account the abovementioned Guiding Principles in the Grant of the Fund. DaTICc

A. Institutional Capacity Building of Leading Universities P3,356.6M

Infrastructure and Facilities Upgrade P2,631.6M

Grants-in-Aid for Research, Development & Extension P560M

Executive Development P165M

B. Institutional Capacity Building for Developing Universities P427M

C. Students' Grants-in-Aid Program for Poverty Alleviation P500M

The Commission en Banc utilizing as the principal criteria Quality and Excellence and the determinants thereof, has approved the first cut of the Leading State Universities which shall be given priority funding in accordance with the Guiding Principles mentioned in Article III hereof, pursuant to CEB Resolution No. 010-2012 dated January 9, 2012. Thereafter, the Commission en Banc approved CEB Resolution No. 069-2012 on the criteria for selection of the 2nd Tier of the Leading State Universities, including the list of those that qualified under such category.

"Leading University" is defined as the selected/identified State Universities which qualify for the criteria of Quality and Excellence under the Guiding Principles in Section III hereof, and must be an SUC Level II and IV only, must have at least one academic program recognized as (1) Center of Excellence or two (2) Centers of Development, and must have at least seven (7) Level III accredited programs, or must be an identified Philippine Higher Education Research Network (PHERNet) or Higher Education Research Center (HERRC) per Commission en Banc Resolution No. 010-2012 dated January 9, 2012.

"Developing SUC" is defined as all other existing State Universities and Colleges and specialized public higher education institutions with charters that are not included among the list of Leading Universities (Tiers 1 and 2), and which shall be entitled to receive the allotted funds provided under these guidelines.

In order that the programs/projects implemented pursuant to these Guidelines are assured continuing funding appropriations for succeeding Fiscal years, so as to achieve the targeted goals of the DAP in accordance with the Road Map, the Commission shall apprise the National Government by December 31 of each year covered by these guidelines, through the DBM, the Report on specific FUND utilization for such Fiscal Year. EAISDH

V. Specific Guidelines and Fund Allocations for Program/Project Components

The Specific Guidelines for each Program component which contain the particular governing implementing rules to qualify for the FUND, including the terms and conditions, milestones and timelines for project output or deliverables, that are needed to guide program/project implementers within the SUCs are attached as integral parts of this main guidelines as follows:

A. On the Institutional Capacity Building of Leading Universities

A.1. Infrastructure and Facilities Upgrade DAP GUIDELINE NO. 1.0 (Annex "A")

A.2. Grants-in-Aid for Research, Development & Extension DAP GUIDELINE NO. 1.2 (Annex "B")

B. On Modernizing Higher Education Facilities to Upgrade Developing SUCs (included in DAP GUIDELINE 1.0)

C. Students Grants-in-Aid Program for Poverty Alleviation DAP GUIDELINE NO. 2.0 (Annex "C")

D. Executive Development Program DAP GUIDELINE NO. 3.0 (Annex "D")

VI. Implementing Committees and Approving Authority

For purposes of properly and efficiently managing the DAP and to ensure that targeted objectives are met with deliverables/output provided on time, the Commission has constituted a DAP Management Committee pursuant to CHED Special Order No. 09, series 2012, with the corresponding tasks and responsibilities.

For each Program Component herein, there shall be constituted Steering Committees composed of officials from the Commission and the partner agencies identified for purposes of each Program Component, whose terms of reference and responsibilities shall form part of the respective specific guidelines mentioned in Article IV hereof. aTEADI

The Approving Authority for the grant of project funds from the DAP shall be the respective management committees of the Program Components, subject to information to the Commission en Banc through the DAP Management Committee, provided that the duly accomplished terms and conditions required under each specific and pertinent DAP Guideline for the particular project proposal are attached to, and form part of the completed staff work preceding approval by the respective management committees.

VII. Program/Project Outputs/Deliverables & Timelines

All Program/Project Funds for the DAP shall be disbursed within the period provided for each Program component, such that expected Outputs and Deliverables in these program components shall be completed, submitted and reported to the Steering Committee within timelines set by concerned entities of the government in accordance with the usual accounting and audit regulations.

The various Program Component Steering Committees shall be responsible for ensuring adherence to the specific timelines of deliverables in accordance with log frames drawn up for the Program components, as well as compliance with proper accounting and audit as well as other pertinent regulations.

VIII. Transparency and Accountability

The Commission shall adopt as a strict policy the principles of Transparency and Accountability in the disbursement of the funds herein provided and shall ensure that all pertinent and applicable procedures under the new

To ensure the proper and equitable distribution of the FUND as intended under the DAP, the Fund recipient SUCs shall be hereby required to submit together with their project proposal(s) their lists of procured infrastructure, facilities and equipment of their SUC for the three (3)-year period prior to the current year of DAP implementation. A similar procedure of enhancing innovative proposals for research projects, executive training programs, and access to students' grants-in-aid shall be adopted for each Program Component. ACTISD

Thus, any and all Fund disbursements related to the DAP shall be fully liquidated to the Commission as required in Article VIII hereof, and as may be applicable depending on the accounting treatment required by the said Program Component. The concerned management committees shall implement and be guided principally by the proper accounting treatment endorsed by the Commission on Audit Government Accounting System for proper implementation.

All Program/Project Reports shall be submitted to the Commission en banc and the Steering Committee within the timelines set by the respective management committees of the various Program Components of the DAP.

IX. Miscellaneous Provisions

The foregoing shall not preclude the management committees of the various Program components to propose the participation and engagement of other equally qualified partner agencies to undertake the projects envisioned within each Program Component, provided that the proper Project Proposal and Justification are fully reviewed, evaluated and approved by the respective steering committees, subject to the usual government accounting and auditing rules and regulations.

The Commission retains the right to amend or modify any of the provisions of these Main and Specific Guidelines for proper and valid cause, provided that all ongoing projects validly processed and already approved shall not be affected thereby, unless there exists compelling reason to do otherwise. It is understood that any and all subsequent issuances or guidelines referring to the DAP approved by the Commission en Banc shall accordingly modify or amend these guidelines, and be binding on the concerned agencies, project implementers, and those availing of the DAP FUND.

To ensure the full compliance, support of, and effective and productive participation of all State Universities and Colleges in this Program, the heads of these public higher education institutions shall manifest their conformity to the Rationale and terms of implementation before the President of the Republic of the Philippines in a fitting ceremony to be spearheaded by the Commission en Banc.

These Guidelines approved by the Commission en Banc shall be deemed in force and effect fifteen (15) days after publication in a newspaper of general circulation, and upon submission of three (3) certified copies at the Office of the National Administrative Register (ONAR) of the U.P. Law Center. aScIAC

Issued this 16th day of April 2012 at the Higher Education Development Center Building, U.P. Campus, Diliman, Quezon City.

(SGD.) PATRICIA B. LICUANAN, Ph.D.
Chairperson
Commission on Higher Education

Attachments available upon request.