QuestionsQuestions (LETTER OF INSTRUCTIONS No. 1462)
The SEF was established by Republic Act No. 5447 (approved on September 25, 1968) and is constituted from an additional tax on real property and other sources.
Local School Boards administer the local government share of the SEF, as created by R.A. No. 5447.
It specifically refers to the implementation of the Magna Carta for Public School Teachers, R.A. No. 4670.
The SEF may be used exclusively for enumerated activities of the public school system, including: extension classes for Grade I; construction/repair of elementary school buildings and related facilities; payment/adjustment of benefits under R.A. No. 4670; preparation/printing/purchase of approved textbooks and teaching materials; equipment for practical arts/vocational courses in secondary schools; teaching materials for elementary/secondary classes; citizenship development programs; and physical education such as athletic meets.
For provinces, the order is activities item (d), (c), and (e); for cities and municipalities, the order is activities item (a), (c), and (d). The other items are of secondary priority.
It requires that the needs of a higher-priority activity be fully met first before appropriating funds for the next lower-priority activity. This must be followed strictly for the top priority activities.
Examples include: (a) basic salary to persons other than elementary school teachers, head teachers, and elementary school principals; (b) construction and/or repair of buildings other than school buildings; (c) motor vehicles; (d) payment of maintenance and operating expenditures of agencies/offices other than the Local School Board itself; (e) purchase of forms other than those used in the school system; and (f) sponsorship of fairs, contests, exhibits, and related activities.
Extension and other positions created by the Local School Board shall be supported by the Local School Board until they can be absorbed by the national government budget.
They must jointly develop the standards and mechanism under which positions created by Local School Boards may be absorbed by the national budget.
New items and extension positions in the national budget must first be used to absorb extension positions created by Local School Boards, in accordance with criteria established by the Ministers of Budget and Education, Culture and Sports.
Allowances shall not exceed: 100% of basic salary in first class local government units; 75% in second and third class; and 50% in fourth and lower classes. Existing rates may continue for local government units that presently exceed these benchmarks.
The definition of teachers is that in R.A. No. 4670 (Magna Carta for Public School Teachers) and excludes those on detail performing work of a non-teacher.
Not more than 60% of the total Local School Board budget may be used for personal services payments, except when authorized by the Office of Budget and Management upon recommendation of the Ministry of Education, Culture and Sports.
Priority must be given to textbooks approved by the Textbook Board Secretariat, and all textbooks/teaching aids/school forms/workbooks/other teaching materials purchased out of the SEF must be directly purchased from the Instructional Materials Corporation.
The Minister of Education, Culture and Sports must immediately operationalize the Instructional Materials Corporation by using the existing organization and assets, personnel, and facilities of the Textbook Board Secretariat; staff must be absorbed by the corporation without diminution in compensation.
Yes. The General Fund and Trust Funds of the local government unit may be used to cover temporary deficiencies as a loan, subject to terms and conditions imposed by the local government unit.
The Division Superintendent of Schools or the District Supervision member of the board (as the case may be) initiates the budget process by preparing and submitting a proposed budget that follows the priority structure in the Letter.
COA and OBM are to assist in ensuring compliance within their respective jurisdictions. COA shall disallow expenditures found to violate the Letter, and the Minister of Budget must observe these guidelines when passing upon Local School Board budgets.