TERMINOLOGY OF SCHOOL

FINANCE

ANDREA I. MANUEL
Discussant
 LEARNING OBJECTIVES:
•To identify the different terminologies
used in school finance;
•To define the meaning of terminologies in
school finance; and
•To understand how to administer the
school finance.
 MOOE
The Maintenance and Other Operating
Expenses (MOOE) is the allocated funds
for public elementary and secondary
schools that can be spent on activities
and necessities (i.e. electricity and
water) that support learning programs and
help maintain a safe and healthy
environment in schools
 PEI
PERFORMANCE ENHANCEMENT INCENTIVES
Pursuant to Executive Order (EO) No. 201, s.
2016 entitled, “Modifying the Salary Schedule
for Civilian Government Personnel and
Authorizing the Grant of Additional Benefits
for Both Civilian and Military and Uniformed
Personnel,”
-(approved on February 19, 2016)
 P.E.R.A.
PERSONNEL ECONOMIC RELIEF ALLOWANCE
-Ranging from P2000-P3000
-In 1991, the approved P.E.R.A was
P500.
-In 2008, it was increased to P1500
 COLA
Cost-of-Living Adjustment An increase in
funding for government programs, including the
target calculation and categorical programs.
Current law ties the COLA percentage for most
education programs to the annual percentage
change in the “Implicit Price Deflator” for
State and Local Governments—a government price
index.
 REVOLVING CASH FUNDS
A stated amount of money used primarily
for emergency or small or sundry
disbursements and reimbursed
periodically through properly
documented expenditures, which are
summarized and charged to proper
accounting classifications.
 THE
ADMINISTRATION
OF SCHOOL
FINANCING
 THE STATE RESPONSIBILITY
FOR THE SUPPORT OF EDUCATION
The welfare of the state depends largely upon the
education of its citizens.
Our leaders and framers of the Constitution who have
realized the importance of education saw to it that
the Magna Carta contain a provision that the state
should establish and maintain a complete and
adequate system of education and provide at least a
primary education for all children of school age.
Congress has consistently given approximately one-
third of the entire budget of the country to
education.
 SOURCES OF SCHOOL REVENUES
In the Philippines, there is no specific education tax.
3 different levels of government: (1) the National, (2) Provincial and
(3) Municipal taxes.
Sources Of Government Income For Education:
1.Taxes imposed by law for the support of the government such as the
real-property tax, specific tax, and import/export taxes.
2. Tuition fees imposed on students in private schools and
authorized/voluntary contribution in public schools, vocational
schools, regional normal schools, and chartered colleges and
universities such as the University of the Philippines.
3.Rental for lease of school sites and sales of school products.
4. Land grants and donations.
5. Special fees.
 SUPPORT FOR ELEMENTARY EDUCATION
Before the enactment of Commonwealth Act No. 586
(Educational Act of 1940), the elementary schools
were jointly supported by the National and the local
government.
Educational Act of 1940:
1.The law forbids the collection of tuition fees in
the intermediate grades although it is permits
matriculation fees not exceeding two pesos for each
pupil enrolled in intermediate grades. 60% spent for
the purchase of library books and equipment and 40%
for financing athletic activities in intermediate
grades.
 SUPPORT FOR PUBLIC SECONDARY SCHOOLS

The financial support for the maintenance and operation of public schools
is provided for by the provincial and city governments.
The source of provincial income are the following:
1.Internal revenue allotments from the national government;
2.Share from local taxes;
•The major portion of the support for secondary schools comes from the
tuition and matriculation fees impose by the Provincial Board on all high
school students.
•Public secondary schools charge a tuition fee of between 80.00 and 150.00
a year.
•Through the enactment of Republic Act No. 3478, the National Government
has been granting annual national aid to general provincial and municipal
high schools .The law authorized 10 million for the purpose. This aid is
primarily intended for salary adjustments of teachers and other secondary
school personnel.
 SUPPORT FOR PUBLIC SECONDARY SCHOOLS
• Voluntary contributions and donations by private
individuals constitute additional sources of
income.
• In the case of municipal high schools, they are
also supported from students’ tuition and
matriculation fees and general fund transfer from
the municipality where they are located.
• Former superintendent of schools Dr. Pedro T.
Orata has advocated the opening of barrio high
schools.
• According to Dr. Orata, there are as of July 1967
about 450 barrio high schools.
 DR. PEDRO T. ORATA
Sources of funds, the Bureau of Public Schools in its Memorandum
No. 86, issued on August 1, 1966, states as follows:
1.Tuition fee to be charged should not be less than 80.00 a
year.
2.50% of the 10% real estates tax proceeds allotted to barrios
in accordance with Revised Barrio Charter should be set aside
and used for the improvement of instruction in the barrio high
schools.
3.All feeder barrios should share the expenses for the
improvement of instruction.
4.All resolutions of the barrios councils regarding the funding
of barrio high schools should be approved by the Municipal
Council concerned.
 SUPPORT OF REGIONAL NORMAL
SCHOOLS
•Regional normal schools are also national like
the vocational schools.
•Sources of income are national contribution
and tuition fees.
•Regional normal schools are therefore
supported jointly by the students themselves
and by the national, provincial and municipal
governments.
 SUPPORT OF CHATTERED GOVERNMENT
COLLEGES AND UNIVERSITIES
•Comes from the tuition and matriculation
fees of students and from national funds
appropriated annually by Congress.
•Special aids for the construction,
repair and improvement of buildings are
given in special legislation or taken
from the pork barrel fund.
 SUPPORT OF SPECIAL SCHOOLS
•The Philippine Nautical School in Pasay
City which offers courses for employment
as merchant marine officers is supported
entirely by the National Government. The
School for Deaf and Blind under the
Bureau of Public Schools is supported
almost entirely by the National
Government with occasionally aids from
the Philippine Charity Sweepstakes.
 PROCEDURES FOLLOWED IN FINANCING
EDUCATION BY THE MUNICIPAL, CITY,
PROVINCIAL, AND NATIONAL GOVERNMENTS
• There is no special education tax fixed by law in
the Philippines.
• Commonwealth Act No. 586 - which placed the
responsibility of support for elementary education
on the National Government. Municipalities,
municipal districts and cities do not have to
provide for elementary education.
• Local entities may set aside sums from their general
fund income if they can afford, but it is optional.
THE NATIONAL GOVERNMENT HAS ASSUMED THE GREATER
BURDEN OF SUPPORT FOR:

• Elementary schools in the whole country

• Regional normal schools, vocational schools,
specials schools and partially even provincial
secondary schools.
• Chartered colleges and universities
• The construction and repair and improvement of
school buildings remain the legal
responsibilities of provinces, municipalities
and cities
 SYSTEM USED BY THE LOCAL GOVERNMENTS

1. A budget is prepared by the treasurer

2. Proposed budget signed by all officials
concerned
3. Submitted to the municipal council
4. If approved, the resolution of the local
government is signed by the chairman of the
council and local executive
5. If the budget approves, it becomes legal and
valid.
 PROCEDURE IN THE EXPENDITURE OF FUNDS
1. The Budget Office which is the disbursing
agency notifies the Offices concerned of the
amounts available for release for the first
quarter (July to September)
2. The Budget Commission releases the first
allotment based on the approved national budget
3. The Director of Public Schools notifies
the Division Superintendent of Schools of the
allotment for his division by quarter.
 PROCEDURE IN THE EXPENDITURE OF FUNDS

4. The salaries for the national teachers are paid

by checks through I.B.M. The Superintendent is
required to submit to the General Office his program
of expenditure
5. The report of expenditure submitted from the
field is forwarded by the Director to the Secretary
of Education.
6. These requisitions are then examined and
scrutinized by the Office of the Secretary of
Education.