Local School Board's Approval of Request for Payment of Registration fees, Transportation and Vest Uniform for Teachers and Students Representing the City of Naga Schools Division

December 4, 2015 DILG LEGAL OPINION NO. 047 S. 2015 Hon. Valdemar M. Chiong Mayor City of Naga Province of Cebu Dear Mayor Chiong, This refers to your 13 October 2015 letter requesting this Department's opinion concerning your Local School Board's approval of the request for payment of registration fees, transportation and purchase of official vest uniform for the four (4) teachers and four (4) students representing the City of Naga Schools Division, allegedly on the bases of DepEd Memoranda authorizing the charging of the same to the Special Education Fund (SEF). Allegedly the Commission on Audit (COA) disallowed the foregoing expenses for lack of basis and for not being in accordance with Section 272 of the Local Government Code of 1991 (hereinafter, the "Code"). Hence, this request. The disposition/utilization of the SEF is governed primarily by Sections 100 (c) and 272 of the Code, viz .: "Section 100. Meetings and Quorum. Budget . xxx xxx xxx (c) The annual school board budget shall give priority to the following: (1) Construction, repair and maintenance of school buildings and other facilities of public elementary and secondary schools; (2) Establishment and maintenance of extension classes where necessary; and (3) Sports activities at the division, district, municipal and barangay levels. HEITAD " Section 272. Application of Proceeds of the Additional One Percent SEF Tax . The Proceeds from the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards: Provided, That, in case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated for the operation and maintenance of public schools, constructions and repair of school building, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the local school board ." [Underscoring ours] While the provisions of Republic Act No. 5447 which are not expressly repealed by the Code and those not inconsistent with the latter shall continue to govern the SEF's disposition, as held by the Supreme Court En Banc in The COA of the Province of Cebu vs. The Province of Cebu, et al . (G.R. No. 141386, November 29, 2001), viz. : "Evidently, what was expressly repealed by the Local Government Code was only Section 3, of R.A. No. 5447, which deals with the "Allocation of taxes on Virginia type cigarettes and duties on imported leaf tobacco." The legislature is presumed to know the existing laws, such that whenever it intends to repeal a particular or specific provision of law, it does so expressly. The failure to add a specific repealing clause particularly mentioning the statute to be repealed indicates that the intent was not to repeal any existing law on the matter, unless an irreconcilable inconsistency and repugnancy exists in the terms of the new and the old laws." Hence, consistent with the above ruling of the Supreme Court, the applicable provisions of Letter of Instructions No. 1462 (LOI 1462) Enhancing the Effectiveness of the Special Education Fund in Improving Elementary Education shall continue to govern the utilization of the SEF. Note that under Item 1.4 of LOI 1462, the utilization of the SEF for sponsorship of fairs, contests, exhibits and other related activities is expressly disallowed, viz. : "1.4 Except where authorized by Law, Local School Boards shall not appropriate, local officials shall not authorize and Treasurers shall not pay for activities outside of those allowed under R.A. No. 5447, such as the following: (a) basic salary to persons other than elementary school teachers, head teachers and elementary school principals, (b) construction and/or repair of buildings other than school buildings, (c) motor vehicles, (d) payment of maintenance and operating expenditures of agencies and offices other than the Local School Board itself, (e) purchase of forms other than those used in the school system, and (f) sponsorship of fairs, contests, exhibits and other related activities ;" [Emphasis, ours] In view of the foregoing, we opine that the payment of registration fees, transportation and purchase of official vest uniform for the four (4) teachers and four (4) students representing the City of Naga Schools Division do not fall within the activities authorized to be financed by the SEF. We hope to have enlightened you on the matter. Very truly yours, (SGD.) AUSTERE A. PANADERO Undersecretary