Angeles City mayor wants new rules on SEF use following audit report

ANGELES CITY, Philippines – Angeles City Mayor Edgardo Pamintuan has called for the revision of existing rules on the use of local government units’ Special Education Fund (SEF), after state auditors found deficiencies in the city’s use of the fund in 2015.

Pamintuan made his appeal through a letter sent recently to the secretaries of the Department of Education (DepEd), Department of Budget and Management (DBM), and Department of the Interior and Local Government (DILG).

It was the mayor’s response to the 2015 audit report of the Commission on Audit (COA), which found “several deficiencies in the planning, budgeting, allocation and utilization” of the city’s SEF amounting to P28.1 million.

Pamintuan said the joint memorandum circulars on the use of the SEF, issued by the DepEd, DBM, and DILG in 1998 and 2000, were “antiquated.”

Under existing rules, the SEF, which is sourced from the additional 1% levy on real property tax, shall be used only for the following purposes:

• Operation and maintenance of public schools, including organization of extension, non-formal, remedial and summer classes and payment of salaries and authorized allowances of public school teachers;
• Construction, repair and maintenance of school buildings and facilities;
• Purchase, titling and improvement of school sites;
• Procurement of books, instruction materials and periodicals
• Acquisition of equipment, including computers and other information technology resources;
• Expenses for school sports activities at the national, regional, division, district , municipal and barangay (village) levels, including DepEd –related and co-curricular activities;
• Salaries and authorized allowances of teachers hired to handle new extension classes of public elementary and secondary schools.

In its report, COA said some P28.1 million of Angeles City’s 2015 SEF was used for programs, projects and activities excluded from allowable items that are chargeable against the fund.

These include honoraria, expenses for travel, trainings, and seminars; water, electricity, telephone, supplies and materials; registration, and repair of motor vehicles; senior high school preparation, and Teacher’s Day celebrations – all covered by the DepEd’s budget on maintenance and other operating expenses (MOOE).

“It appeared that the governing Local School Board disregarded the prior year’s audit recommendation and set aside the standards, parameters and criteria in the planning and budget formulation of SEF which may hinder the attainment of SEF objectives and compliance with the oversight authority,” COA said in its report.

The Local School Board is co-chaired by the city mayor and the city superintendent of schools.

In his letter to the 3 national departments, Pamintuan said existing guidelines on the use of SEF have failed to assist in alleviating the poor condition of public schools and teachers.

He also hit the prohibition on the use of the fund “to settle bills for water and electricity.”

The COA report showed that P9.25 million and P4 million from the city’s SEF were used to pay for electric and water bills, respectively. Another P300,000 was used for telephone bills.

Pamintuan said that aside from its intended use, the SEF should be allowed to be used to pay for electric, water and internet bills; campaign against illegal drugs; commemoration of teachers’ day; and annual teachers general assembly. – Rappler.com