ESC and Tuition Fee Supplement Guidelines

Legal basis and policy declaration

The Order implements State assistance consistent with Republic Act No. 6728, which declares State policy to promote and make quality education accessible to all Filipino citizens.
Republic Act No. 6728 recognizes the complementary roles of public and private schools and their contribution to education.
The Order provides that the Educational Service Contracting (ESC) Scheme, previously managed and administered by FAPE since SY 1986-87, is directly administered by the Bureau of Secondary Education (BSE), DECS through DECSROs effective SY 1991-92.
The Order provides that the Tuition Fee Supplement (TFS) for high school students is administered by BSE and remains under the administration and supervision of that Bureau through DECSROs.

Program structure and governing councils

The Order establishes Project Management through the State Assistance Council (SAC) and a BSE-GASTPE Unit.
The Order establishes a Regional Project Committee (RPC) for regional administration of ESC and TFS.
The Order establishes a Division Coordinating Committee (DCC) for division-level processing and monitoring of ESC and TFS.
The Order provides that the programs operate as GASTPE programs (ESC and TFS).

Definitions and core program features

ESC is implemented through a contract where the government and a private school accommodate students in the private school.
Under ESC, government pays tuition and other school fees of students who cannot be accommodated in public schools due to lack of teachers, space, facilities, or similar reasons.
ESC may apply in communities where no public school exists and the only educational service is in a private school, subject to availability of funds after other requirements are met and explicit approval by the regional Director as to the number of students to be accommodated.
ESC payment per student grantee is at the rate prescribed by the participating school but must not exceed P1,320.00.

TFS is a government subsidy of P290.00 per student enrolled in a private secondary school that charged less than P1,700.00 including subsidy for SY 1991-1992.

ESC: school participation and exclusions

The Order allows any duly recognized private high school in the student’s area of residence to participate in ESC.
A school is excluded from ESC when it does not comply with ESC guidelines, has low NCEE performance, has a high dropout rate, has congested classrooms, or has inadequate support facilities.
When a school is excluded from further ESC participation, the RPC must make a report to the BSE-GASTPE Unit.

ESC grantees: enrollment, quotas, and eligibility

Public high school principals implement an early enrollment schedule on a first-come-first served basis and number student names consecutively until the quota is reached.
The quota is determined by the Regional Director based on existing physical facilities of the public schools and the number of teachers available.
Students enrolled after the public school quota is filled are treated as excess or overflow.
The public high school principal issues an individual Certification of Excess Enrollment to each overflow student directing enrollment in a duly recognized private school of the student’s choice in the area of residence.
ESC payment to the participating private school for overflow students is limited to tuition and other fees actually charged by the school up to a maximum of P1,320.00 per year.
Overflow students present to the participating private school principal: the Certification of Excess Enrollment, the elementary report card, and the parent’s latest income tax return or certification of family income, then undergo normal enrollment procedure.
Among ESC grantees, preference is given to overflow students whose family income is not more than P36,000 per annum.

In municipalities where there is no public school and the only educational service is a private school, ESC is undertaken subject to availability of funds, with priority to community residents from families whose income falls below the poverty line as defined by NEDA.

After enrollment, the private school prepares a Certification of Enrollment with the tuition fee schedule per year level and submits these to the Schools Division Superintendent, Chairman of DCC.

After checking and reviewing the ESC grantee list, the Schools Division Superintendent endorses it to the GASTPE Regional Coordinator, who prepares a summary list of ESC grantees including the tuition fee schedule per participating school.

The Regional Coordinator submits the summary list to the BSE-GASTPE Unit at the 3rd Floor, Bonifacio Building, University of Life Complex, Pasig, Metro Manila for budget allocation.

Replacement of drop-out ESC grantees is not allowed, and ESC grantees who drop out are no longer eligible for any GASTPE grant.

ESC conditions, transfers, and subsidy adjustments

Once enrolled as an ESC grantee in a participating private school, the student is considered a bonafide student of that school and is subject to the school’s rules and regulations.

ESC grantees must pass the minimum requirements to qualify for promotion under DECS rules, or their ESC privileges of free education terminate.

If a private school’s tuition and other fees exceed the ESC ceiling, the school may collect the balance from an ESC grantee if the student is notified and parental consent is obtained.

Initial processing of payments-to-schools papers is done by the DCC.

Payments are processed at DECSROs, which issue checks directly to participating schools.

ESC privilege terminates if the grantee transfers to another private school outside the region.

When ESC grantees drop out or transfer within the year, the government pays the school:

10% of the subsidy if drop-out/transfer occurs within the first week after the start of classes;

20% of the subsidy if drop-out/transfer occurs after the first week or within the second week after the start of classes, regardless of actual class attendance (Section VII, par. 137 of the Manual of Regulations for Private Schools. 7th Edition, 1970);

50% of the subsidy if drop-out/transfer occurs after the second week or within the third week after the start of classes; and

100% of the subsidy if drop-out/transfer occurs any time after the 4th week of the start of classes.

ESC participating schools’ directors/administrators must refund drop-out or transfer payments to regional offices through channels.

Regional offices must remit refunded amounts and any year-end balance to the DECS Accounting Office, Rizal II Bldg., University of Life Complex, Pasig, Metro Manila.

ESC participating schools must furnish the Bureau of Secondary Education, through the DECS Regional Office, the official dropout or transfer form of students duly certified and under oath.

ESC grantees enrolled in the first and second year of participating ESC schools must return to their original schools to seek accommodation after the year ends.

TFS: registration, claims, and reporting

Private high schools charging tuition and other fees less than **P1,700 including subsidy in SY 1991-92 must register with the DCC on or before July 25, 1992, and every year thereafter.
Schools must use TFS Form 1 (Tuition and Other Fees Supplement Voucher) in quadruplicate: one copy for the Division, one for the RPC, one for the school, and one for public posting in school premises.
The data in Form 1 serves as the basis for payment of TFS claims.
The DCC Chairman must prepare and submit to the RPC a report on TFS claims for SY 1992-93 using TFS Form 2 not later than August 20, 1992, as the basis for budgetary allocation.
The GASTPE Regional Coordinator (GRC) prepares a consolidated report using TFS Form 2 and submits it to the BSE-GASTPE Unit not later than August 30, 1992.
Vouchers are processed at DECSROs, which issue checks directly to schools corresponding to the aggregate amount indicated in the vouchers.
After paying participating schools, the GRC must submit:
- periodic disbursement updates using TFS Form 3;
- a year-end report using TFS Form 4; and
- a final report before the end of the school year addressed to the GASTPE Unit, Bureau of Secondary Education, 3rd Floor, Bonifacio Bldg., University of Life Complex, Pasig, Metro Manila using TFS Form 5.
If balances remain payable, the Regional Finance Officer must submit to BSE a duly certified financial statement indicating the school and the exact amount due to serve as basis for additional allotment.

TFS: student eligibility limits and allocation

An awardee is disqualified from TFS benefits if the awardee:
- fails in a majority of the academic subjects enrolled in for one school year, unless the failure is due to valid causes beyond the awardee’s control; or
- transfers residence outside the region.
Seventy percent (70%) of the tuition fee increase must go to the payment of salaries, wages, allowances, and other benefits of teaching and non-teaching personnel except administrators who are principal stockholders of the schools.
The 70% portion may be used to cover increases provided for in collective bargaining agreements existing or in force at the time Republic Act No. 6728 was approved and made effective.
Government subsidies are not used directly for salaries of teachers for non-secular subjects.
At least twenty percent (20%) of the tuition fee increase must go to the improvement or modernization of buildings, equipment, libraries, laboratories, gymnasia, and similar facilities, and to payment of other costs and operation.
A certification on the allocation of proceeds must be attached to the final GASTPE report at the end of the school year.

Sanctions and program participation bars

Upon recommendation of SAC, the DECS may bar an institution from participating in or benefiting from GASTPE programs and other DECS programs if there are violations of the guidelines or violations of Republic Act No. 6728.
A DECS bar under the guidelines is without prejudice to administrative and criminal charges that may be filed against the school and its responsible officers under existing laws.
A DECS bar under the guidelines also prevents the institution from raising its tuition and other fees.
Any school that refuses to furnish copies of its audited financial statements to concerned sectors with whom it is having consultation prior to tuition fee increases forfeits the right to increase tuition fees, in addition to other penalties or sanctions under the preceding paragraph or under existing laws.

Implementation roles and committee duties

The SAC is responsible for policy guidance and direction, monitoring, evaluation, and promulgation of rules and regulations of GASTPE programs (ESC and TFS).
The BSE-GASTPE Unit is composed of: Chairman (BSE Director IV), Vice-Chairman (BSE Director III), GASTPE Coordinator (Chief, Staff Development Division), and ESC and TFS coordinators and members.
The BSE-GASTPE Unit supervises, monitors, and oversees ESC and TFS implementation in all participating private schools; sends written communications to RPC on DECS guidelines and policies through channels; collects, collates, and interprets pertinent ESC/TFS data and makes periodic reports whenever needed; and evaluates/assesses ESC/TFS implementation.
The RPC is chaired by a Regional Director IV, with a Vice-Chairman (Regional Director III), a GASTPE Coordinator (Secondary Level) (Chief, Secondary Education Division), an Asst. Coordinator (Asst. Chief, SED), and members including the Head, Private Schools Association; NEDA representative; DLG representative; and PSAS (Private Schools Area Supervisor).
The RPC sets up Division Coordinating Committees (DCC); identifies sites where excess enrollment is registered; supervises, monitors, and oversees implementation at the regional level; provides BSE-GASTPE Implementing Unit with needed ESC/TFS data/reports; disseminates information on ESC/TFS; disburses ESC/TFS funds to participating schools/beneficiaries; and submits duly certified periodic updates to BSE-GASTPE Implementing Unit.
The DCC is chaired by the Schools Division Superintendent, with a Vice-Chairman (Asst. Schools Superintendent for Secondary Level) and members including private high school representatives, civic sector representatives, and Municipal Development Office representatives.
The DCC identifies overflow students according to guidelines set; checks, reviews, and processes required ESC/TFS documents presented by participating private schools; monitors and confirms enrollment data; prepares and submits statistical ESC/TFS data to the RPC; and endorses duly certified ESC and TFS lists to the RPC.
The DCC endorses to RPC a duly certified TFS list showing the number of beneficiaries (after deducting total ESC grantees from total enrollment) and the amount claimed calculated as beneficiaries multiplied by P290, and an ESC list showing the number of grantees by year level and total amount claimed based on actual tuition and other fees charged.

Annexes, repeal/modification, and application

The Order’s Inclosure A contains ESC Forms 1, 2, 3 and 4.
The Order’s Inclosure B contains TFS Forms 1, 2, 3, 4 and 5.
All DECS rules, regulations, and other issuances, or parts thereof, inconsistent with the Order are repealed or modified accordingly.