QuestionsQuestions (EXECUTIVE ORDER NO. 156)
It is constituted as an irrevocable trust fund, with its principal maintained intact and managed as a capital fund for investment and reinvestment.
The principal is USD $6,154,000, derived from the Special Fund for Education authorized by U.S. Public Law 88-94, made available under the Project Agreement and Exchange of Notes.
On April 30, August 31, and December 31, if cash on hand and in bank plus the market value of investments (after adjusting for accrued expenses) is at least equal to the dollar equivalent of the Fund (or augmented amount), then the Fund is deemed intact and unimpaired.
No disbursement for programs/projects of assistance to private education is authorized until after the succeeding determination date when impairment has been remedied (e.g., stricter controls, appreciation of investment value, or additional cash from earnings or sale proceeds).
Net earnings are the excess of (cash on hand and in bank + market value of investments, after accrued expenses) over the dollar value (or peso equivalent) of the trust fund as of a determination date; that excess is the maximum level that may be earmarked/disbursed until the succeeding determination date.
To hedge against impairment, the Trustee shall, as far as practicable, refrain from committing funds in excess of 90% of the net earnings.
The Fund finances assistance programs to private education using only its earnings, via grants and/or loans for faculty training/development (scholarships, research grants, faculty incentives, inter-institutional cooperative projects, and other benefits). Support of religious worship or instruction is excluded.
It is chaired by the Secretary of Education (or representative); includes a representative from the National Economic Council; and representatives from (1) Catholic Educational Association of the Philippines, (2) Association of Christian Schools and Colleges, and (3) Philippine Association of Colleges and Universities.
No. Members serve without compensation.
It sets investment policy; establishes and reviews priorities; receives and processes projects; makes decisions on use of Fund income/capital gains including final action on applications; may retain investment/financial manager; ensures proper identification of the Fund’s origin; and performs other acts necessary to achieve the Fund’s purposes.
Materials describing the Fund’s origin and projects/buildings financed (in whole or in part) must appropriately identify the contribution of the Special Fund for Education made available by the people of the USA in recognition of the common efforts of the Philippines and the USA during World War II.
The trust fund must be operated strictly as a capital fund for investment and reinvestment, maintained intact, with only net earnings authorized for use; and religious worship/instruction support is excluded.
If part of the Fund is converted into Philippine pesos or invested in peso-denominated assets, the portion not to be impaired is valued in pesos using the rate of exchange prevailing at the time of conversion(s), calculated as actual dollars converted times the exchange rate at the time of conversion.
They must equally weigh: (1) contribution to improving quality of Philippine education; (2) relation to high-priority field of study for national growth; (3) significance and contribution of applying institution/association to educational needs in specific geographic areas/regions; (4) amount requested consistent with assisting as many institutions as possible; and (5) assessment of the institution’s/association’s past and current efforts and future planning.
Decisions of the Trustee must be made with the concurrence of the Chairman.
When necessary, the Trustee shall consult with the Philippine Manpower Development Council.
The Trustee must submit an annual report of its activities to the President of the Philippines, and furnish a copy to the Government of the United States of America as provided in the Project Agreement and Exchange of Notes.
It takes effect immediately.