Fiscal Control and Management of the Funds of the University of the Philippines

Case Overview and Summary

Executive Order No. 714

Fiscal Control and Management of the Funds of the University of the Philippines

- Recognizes the University of the Philippines (UP) as an institution of higher learning where academic freedom is guaranteed, and its excellence is founded on its ability to allocate and utilize resources with flexibility. (Preamble)

- Ensures that laws on fiscal planning and management do not unreasonably restrict UP's ability to pursue its mission and maintain its standing in the international academic community. (Preamble)

- Mandates the automatic release of the following income, receipts, and fees to UP upon collection:
• Tuition, matriculation, registration, late registration, entrance, laboratory, medical, library, athletic, school organ, cultural, graduation, diploma fees, and all other fees authorized under Act No. 1870, as amended (the "UP Charter"). (Sec. 1a)
• Income from land grants ceded to UP pursuant to Act No. 3608, as amended, and other land grants. (Sec. 1b)
• Income under R.A. No. 3870 and all other special laws. (Sec. 1c)
• Income from the operation of service facilities, such as the Asian Institute of Tourism, College of Veterinary Medical Hospital, and Cafeterias. (Sec. 1d)
• Income from extension services and similar fees. (Sec. 1e)
• Income from trusts, legacies, gifts, and donations of real and personal property, which shall be administered according to the instructions of the trustor, testator, or donor, pursuant to Section 6(i) of the UP Charter. (Sec. 1f)
• All other income classified as special or fiduciary funds within the context of PD 711, PD 1177, and PD 1234. (Sec. 1g)

- Provides that government assistance to UP under the annual general appropriations law and any supplemental or deficiency appropriations measure shall be in lump sum, unless otherwise specified by the President of the Philippines. UP shall submit a program of expenditures for the President's approval. (Sec. 2)

- Requires all income, receipts, and funds derived by and/or released to UP to be immediately deposited in a separate account or accounts in any authorized Government depository bank in the name of the Treasurer of the Philippines, in his capacity as Treasurer ex officio of UP under the UP Charter. (Sec. 3)

- Affirms the Board of Regents' full powers and authority under the UP Charter, including the power and authority to receive and appropriate sums provided by law for the support of UP. (Sec. 4)

- Allows the Board of Regents to prescribe the terms and conditions for disbursing amounts deposited in the authorized accounts, exempting such disbursements from the requirement of Special Budgets under Section 40 of PD 1177. (Sec. 5)

- Mandates the Commission on Audit to audit all accounts and expenses of the University. (Sec. 6)

- Establishes that the Board of Regents' determination on the appointment, number, and compensation of academic staff, officers, employees, and other personnel of UP shall be binding and conclusive on the Office of Compensation and Position Classification of the Budget Commission. (Sec. 7)

- Requires the Board of Regents and UP to file a detailed report with the President of the Philippines on or before August 10 of each year, setting forth the progress, condition, and needs of UP. (Sec. 8)

- Directs UP to coordinate with the Minister of the Budget in drawing up implementing rules for this Executive Order. (Sec. 9)