DRAFT as of June 2011 4pm

CHED Memorandum Order No. ____ Series of 2011 Subject: POLICIES, GUIDELINES AND PROCEDURES GOVERNING THE APPLICATION OF HIGHER EDUCATION INSTITUTIONS (HEIs) FOR THE INCREASE IN OTHER SCHOOL FEES, IMPOSITION OF NEW FEES, AND FOR OTHER PURPOSES

In accordance with the pertinent provisions of Batas Pambansa Blg. 232, Republic Act (R.A.) 7722 otherwise known as the Higher Education Act of 1994, Supreme Court decision in Lina vs. Carino (G.R. No. 100127, April 23, 1993) which reinforced and sustained the legal authority of the CHED to regulate tuition and other school fees, and pursuant to CEB Resolution No. ___ dated ______________of the ______Commission en banc, these policies, guidelines and procedures are hereby adopted, as follows: ARTICLE I COVERAGE Section 1. These policies, guidelines and procedures shall cover the imposition, increase of and collection of existing other school fees, and the introduction of new school fees in both public and private HEIs .

ARTICLE II PURPOSES AND NATURE OF OTHER SCHOOL FEES Section 2. In order to improve and sustain the provision of student support services directly related to the enhancement of high quality and relevant instruction in HEIs and as stipulated in CMO 21 s. 2006 Guidelines in Student Affairs and Services Program also, the imposition, collection, and increase in other school fees, and the introduction of new other school fees, may be authorized by the
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Commission subject to justifiable and meritorious grounds and the provisions of this Order as well as other relevant laws, rules, and regulations.

ARTICLE III DEFINITION OF TERMS Section 3. 3.1 For purposes of this set of policies and guidelines, the following are defined as:

Other School Fees sometimes referred to as miscellaneous fees, are charges in addition to tuition that are collected for a specific purpose or service, as may be identified by the school authorities and certified by the recognized student council and faculty association such as: medical and dental, athletic, guidance, insurance, student organization, and student publication. These Other School Fees are classified as basic/core and incidental fees. Basic/Core Other School Fees charges aside from tuition which are essential and are directly related to the enhancement of instruction, the total development of the student and his/her welfare and those aimed at sustaining and improving the provision of student services.

3.2

3.3 Consultation a meeting to discuss, decide 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/organization, faculty, non-teaching personnel and/or alumni associations whenever applicable as certified by the HEI concerned. 3.4 Financial Statements Audited statement of income and expenses, Balance Sheet Statement, and Cash Flow Statements.
3.5

Incidental fees - are other school fees other than the Basic/Core fees which may be considered as supplemental charges in view of the nature of the program/course of the student and provided such charges cannot be adequately incorporated in the tuition fee and/or the Basic/Core school fees, and provided, further, that such fees are not one of those contemplated pursuant to CMO 40 s. 2008 Manual of Regulation for Private Higher Education of 2008, particularly Section 128.2 Allocation of Tuition Incremental
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proceeds, any incremental proceeds derived from tuition fee increase shall be allocated at least 20% shall go to the improvement or modernization of buildings, equipment, libraries, laboratories, gymnasia, and similar facilities, and to the payment of other costs of operation, hence buildings, equipment, libraries, laboratories, gymnasia , and similar facilities. 3.6 Incremental Proceeds - amount of increase in school income resulting from the increase in tuition and other fees. 3.7 New Other School Fees - proposed additional charges other than tuition and other existing school fees. Tuition - used to refer to the charges for instruction and general services of all students per unit of courses enrolled in.

3.8

ARTICLE IV TYPES OF OTHER SCHOOL FEES Section 4 Other School Fees. These Other School Fees are classified as follows: 4.1 BASIC/CORE OTHER SCHOOL FEES.

The following shall be considered as Basic/Core Other School Fees: 1. Registration 2. Medical/dental 3. Athletics/Sports 4. Guidance and counseling 5. Student Handbook 6. Student publication 7. Student organizations 8. Insurance 9. ID 10. Library 11. Laboratory (general education)

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4.2

INCIDENTAL OTHER SCHOOL FEES . The following are some examples of incidental fees that schools are currently charging students:

1. Affiliation fee 1. Community extension 2. Cultural fee 3. Drug test 4. Graduation fees 5. Program Laboratory 6. Retreat and recollection 7. Research/thesis 8. Student development 9. Transcript and diploma fee 10. Energy fee 11. Internet Fee 4.3 The On-the-Job or Practicum Fee shall be treated as a program fee so that this shall be included in the tuition fee charges.

ARTICLE V GUIDELINES ON ALLOWABLE INCREASES IN OTHER FEES Section 5. Any increases in other school fees in all levels to be made by Higher Education Institutions (HEIs) shall be subject to consultation with stakeholders and approval of the Commission on Higher Education. Section 6. Any allowable new or existing other school fees shall be reasonable, acceptable and in accordance with the specific circumstances of the school and the situation in the community in the particular region. Moreover, the imposition and collection of such fees shall strictly follow the guidelines and processes herein stipulated. Section 7. No increase in incidental fees shall be allowed unless a genuine process of consultation pursuant to this Order has been conducted and all the guidelines complied with.

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Section 8. The following shall serve be considered, among others, in the imposition of other school fees and in the determination of allowable increases in such school fees: 1. Regional Inflation Rate( RIR) as may be determined by NEDA; 2. Prevailing economic conditions as shown by various economic indicators such as the consumer price index, incidence of poverty; 3. Financial standing of the HEI; 4. Financial capacity of the general studentry; 5. Impact of force majeure or calamities; 6. Quality track record of the school.

ARTICLE VI CONSULTATION PROCESS AND REQUIREMENTS As a general policy, no other school fees shall be charged from students without undergoing due consultation. Section 9. The HEI must comply with all the documentary requirements pursuant to CHED Memorandum Order No. 13 s. 1998 Guidelines on the Procedure to be Followed by Higher Education Institutions (HEIs) Intending to Increase their Tuition Fees, Effective Beginning School Year 1998-1999 . A summary of the said requirements are herein included as Annex A and is made an integral part of this Order. Section 10. Consultation process for the other fees and new fees shall follow with the procedures as stipulated in CMO 13 s. 1998 . A summary of the said requirements are herein included as Annex B and is made an integral part of this Order.

ARTICLE VII POSTING OF OTHER SCHOOL FEES AND NEW FEES Section 11. It is a requirement for the concerned HEIs to post the other school fees and new fees in conspicuous places within the campus of HEIs and outside the HEIs for the information and reference of all stakeholders especially the studentry.

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ARTICLE VIII COMPLAINTS AND GRIEVANCES Section 12. As a general rule all complaints and grievances regarding increases in other fees and new fees shall be endorsed by the student council and all other legitimate entities before submitting the same to the concerned HEI. ARTICLE IX OBLIGATIONS OF CHED OFFICES Section 13. Executive Directors Office 13.1 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. The Executive Director shall handle disputes on applications for tuition and other fee increases including new fees not resolved by the Regional Muti-Sectoral Committee on Tuition and Other Fees.

13.2

13.3 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. Section 14. Regional Offices of CHED (CHEDROs)

These are the functions and responsibilities of the CHEDROs which includes the following: 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 Monitor regularly the implementation of HEIs of these guidelines and furnish the Commission, through its Executive Director, a formatted report on the increases in tuition, other school fees, and new fees in HEIs under their jurisdiction particularly the consultation process and allocation of incremental proceeds derived from fee increases
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and related developments on or before 31 May of every calendar year; 14.3 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; When requested by any of the stakeholders, assist the Regional Multi-Sectoral Committee on Tuition Fee (RMCTF) in monitoring compliance of HEIs particularly with the provisions on consultation and allocation of incremental proceeds derived from fee increases; Intervene in case of disputes and/or complaints regarding tuition fee and other fee increases, including introduction of new fees. 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 Multi-Sectoral Committee on Tuition and Other School Fees.

14.4

14.5 14.6

ARTICLE X NATIONAL AND REGIONAL MULTI SECTORAL COMMITTEE ON OTHER SCHOOL FEES Section 15. Composition of the Regional Multi-Sectoral Committee on Other School Fees

Composition of the regional and national multi-sectoral committee on other school fees shall follow the provisions of CMO 13 s. 1998. Section 16. Functions of the Multi-Sectoral Committee on Other School Fees

The committee shall follow the same functions as stated in CMO 13 s. 1998.

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ARTICLE XI APPLICABILITY OF CERTAIN PROVISIONS Section 17. Provisions indicated herein shall be applicable for applications for increases of other fees and introduction of new fees. ARTICLE XII COMPLAINTS AND GRIEVANCES Section 18. All complaints and grievances regarding increases in other fees and new fees shall be endorsed by the student council and all other legitimate entities. Section 19. In cases where a Higher Education Institution increased 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 other fee increases as well as new fees are returned to the students. ARTICLE XIII SANCTIONS Section 20. In case of any violation of the provisions of these guidelines, the concerned CHED Regional Office, after complying with the foregoing procedures, and upon recommendation of the Regional Multi-Sectoral Committee on Other Fees may bar the HEI or cancel the application for other fees increase and introduction of new fees of HEl from effecting other school fee increases and new fees, without prejudice to the filing of administrative and criminal charges against it and/or its responsible officers under existing laws. Also, the imposition of penalties such as revocation of permits, downgrading of status, phase-out and such other penalties may be validly imposed by the Commission to the concerned HEIs. Any HEI that shall refuse to furnish copies of its audited financial statements as requested by authorized parties in the process of consultation shall forfeit its right to increase its other fees and introduce new fees, in addition to other penalties or sanctions as may be imposed by the CHED Regional Office upon recommendation of the Muti-Sectoral Committee on Other Fees.

ARTICLE XIV
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REPEALING CLAUSE Section 21. All previous issuances inconsistent with this guidelines deemed repealed, revoked or rescinded accordingly. ARTICLE XV TRANSITORY PROVISIONS Section 22. All Higher Education Institutions shall submit a schedule of tuition and other school fees starting AY 2012 2014 in order for the CHED to have a basis for monitoring and consolidating data for policy improvement. Section 23. An Adhoc committee composed of staff from the Executive Office, Office of Student Services, Administrative and Finance Services and Regional Office shall be established which shall not be more than seven including members and resource persons to prepare the evaluation instrument that will be utilized by the CHEDROs in monitoring compliance of higher education institutions to this guidelines. Section 24. In case of other fees charged by the HEIs which are not defined and covered by this CMO, the same shall be refunded to affected students immediately within one year upon the effectivity of this CMO. ARTICLE XVI EFFECTIVITY Section 25. These guidelines shall take effect 15 days after publication in newspaper of general circulation and should be observed by all HEIs starting AY 2013- 2014 and shall remain in force and effect until revoked or amended. Issued this ____ day of ______________________, Pasig City, Philippines. are

For the Commission:

PATRICIA B. LICUANAN, Ph. D. Chairperson

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