Rules and Regulations Implementing National Scholarship for Development Program Established Under LOI No. 468

January 3, 1979 REVENUE MEMORANDUM ORDER NO. 10-79 SUBJECT : Rules and Regulations Implementing National Scholarship for Development Program Established Under LO I No. 4 68 TO : All Internal Revenue Officers and All Others Concerned Pursuant to the provisions of LOI No. 468, establishing a National Scholarship for Development (NSFD) Program, for employees of the government to increase their capabilities to cope with the manifold and increasingly complex task of the government and in consonance with the Rules and Regulations of the Civil Service Commission under Resolution No. 205 dated December 24, 1976, the following rules and regulations are hereby promulgated: cdt I. Scope of Scholarship The scholarship program shall be open to all permanent employees of the Bureau who deserve to complete professional or technological courses at the collegiate level or pursue higher studies. Scholarship will be extended in any of the "Preferred courses" as enumerated in Section 7 of LOI No. 468, and in the list prepared and provided by the National Economic and Development Authority specifying the areas in which additional skills are needed. The scholarship will cover tuition and other fees incurred by an NSFD grantee in connection with his studies as officially billed by the University or the college concerned. This may include the expenses for the prescribed basic textbooks. II. Selection of NFSD Grantees Selection of NSFD grantees shall be guided by Sec. 2, Rule II, of the Rules and Regulations Implementing the National Scholarship for Development promulgated by the Civil Service Commission, (Resolution No. 205). Said conditions are reiterated as follows: "SEC. 2. In adopting its criteria for selection, the Screening Committee shall be guided by the following: (a) Priority in the availment of the NSFD shall initially be given to employees who are 30 years old and below. However, the NSFD shall be open to all employees who are not yet more than 45 years of age. In both instances, preference shall be given to those employees who, on the basis of their salaries and other incomes, are financially incapable of pursuing their studies. (b) Only employees who have been rendering satisfactory service shall be considered for the NSFD. No new employee shall be eligible for the NSFD unless he has served satisfactorily the six-month probationary period following his original appointment. For purposes of this provision, "satisfactory service" means that the employee concerned has consistently obtained a performance rating of at least satisfactory and that he has not been charged administratively or criminally. (c) Where the number of applicants is such that the available funds of the department or agency would be insufficient to support their studies, the Screening Committee may employ additional selection procedures for determining the number of NSFD grantees, such as the conduct of competitive examinations. The total number of department or agency participants shall finally be determined by the department or agency head concerned." III. Responsibility of the Bureau of Internal Revenue . 1. The Bureau's NSFD program shall be the concern of the Commissioner who shall see to it that employees are duly informed of the requirements of the program and encouraged to participate in it. The NSFD shall form part of the Career and Personnel Development Plan of the Bureau of Internal Revenue. 2. The Bureau shall shoulder all of the grantees' school expenses as officially billed by the College or University. 3. Funding for the Program shall come from the savings of the Bureau. To insure continuity of financial support to its NSFD grantees, the Bureau shall plan expenditures to provide the necessary savings. IV. Responsibility of Grantee 1. All NSFD grantees shall enroll in preferred courses, and their attendance in the classes shall be after the regular office hours. 2. A grantee shall enroll immediately and every semester thereafter until he finishes his course. Deferment of enrollment shall not be allowed except for the following reasons: (a) poor health of the grantee as certified by a government physicians; or (b) grantee is on maternity leave; or (c) grave personal problems of the grantee which may psychologically affect him in his studies for the semester. In no case shall a deferment of enrollment be allowed for two (2) successive semesters, provided, that this prohibition shall not apply when an NSFD grant is deferred for reasons that the grantee accepts a scholarship, fellowship or training abroad, the NSFD grant may be deferred until the employee's return from such scholarship, fellowship or training grant. 3. Each grantee shall enroll for not less than nine (9) units per semester if pursuing a collegiate or technological course and not less than six (6) units if taking up graduate studies. If he chooses to avail of summer classes, he shall enroll for at least three (3) units. 4. A grantee who continually maintains a high scholastic record shall not be required to refund the money advanced by the Bureau as a form of recognition for his exemplary academic performance. For purposes of this condition "a high scholastic record" shall mean a rated average for the entire course of not lower than 2.00 or 85%, or its equivalent in technological or collegiate courses; or 1.75 or 88% or its equivalent in the graduate course. 5. Each grantee shall be required to submit periodic progress reports of his studies to the Civil Service Commission and to the Bureau. This report shall contain information on: (a) where grantee enrolled and the subjects enrolled in, at the beginning of every semester; (b) subjects completed with the corresponding grades and weights in units, at the end of every semester; (c) other matters pertinent to the scholarship which shall be required from time to time by the Bureau. 6. Subject to Rule V of the Implementing Rules and Regulations of Letter of Instructions No. 468, the grantee shall upon termination of his grant, refund to the Bureau all the expenses it paid for his studies which shall be charged against his salary. For this purpose "termination" may occur when a grantee (a) completes his course, or (b) resigns or is dropped from the government service; or (c) decides to discontinue his studies; or (d) fails in any of his subjects. In the event, a grantee transfers to another government agency, he may be allowed to continue his studies. However, the expenses incident to the scholarship henceforth shall be assumed by his new office and refund for expenses incurred shall be made by the grantee in accordance with Rule V of the Implementing Rules and Regulations of Letter of Instructions No. 468. This will require the signing of a new contract between the grantee and the new office. 7. Upon selection as a NSFD scholar, the grantee shall enter into a contract with the Bureau which shall contain their respective obligations in connection with the study grant. A sample form of the same labelled as Annex "A", National Scholarship for Development (NSFD) Contract, is hereto attached and made a part hereof. V. Administration of the Program The Career Development Division of the Bureau shall administer the NSFD Program. As such, it shall: 1. Provide secretariat services to the Screening Committee; 2. Keep records of all NSFD grantee relating to their studies; 3. Facilitate the payment of the necessary expenses of all NSFD grantees; 4. Insure that the NSFD contract required in these Rules and Regulations is executed; 5. Prepare a report to the Commissioner on the NSFD Program which shall be integrated into the annual report on personnel management activities of Bureau. 6. Submit to the Civil Service Commission at the end of each school year a report containing the names of the Bureau's NSFD grantees, courses in which they are enrolled, the schools or universities, and other relevant information. 7. Notify the Accounting Officer of the NSFD grantee's completion of his course or termination of his grant and the date when deductions for repayment shall begin. 8. Perform such other functions as may be necessary for the effective implementation and administration of the NSFD Program in the Bureau. VI. Repayment Scheme 1. Upon completion of his course, a grantee shall refund to the Bureau the expenses advanced for his studies. The periods of payment shall be two years for a two-year course and four years for a four-year course. Repayment shall be made from the grantees' salary in equal installments until full amount shall have been paid. An NSFD grantee, however, may start repayment of such expenses even before completion of his studies. 2. When the grant is terminated due to the NSFD grantee's resignation or dropping from the service, repayment of expenses incurred for his studies shall be made from any amount accruing to him as a government employee. If he decides to discontinue his studies or fails in any of his subjects which terminates his grant, repayment of his school expenses shall begin in the month following the termination of the NSFD grant. The same modes of repayment shall apply when, even after an NSFD grantee's transfer to another government agency. 3. In the event an NSFD grantee transfer to another government agency, the BIR shall issue a certification to his new office on the total amounts advanced for his studies. Upon completion of the grantees' studies, the new agency shall make the necessary deductions incurred by the BIR. If at the time of his transfer, an NSFD grantee has already completed his studies, and repayment of the expenses incurred his studies has been started in the Bureau, the new agency shall be furnished a certification on the balance of his account. 4. Should there arise circumstances which would prevent the NSFD grantee from refunding the amount incurred for his scholarship, such shall be taken from his retirement pay or any other money which would accrue to the grantee in the course of his employment. VII. Effectivity These rules and regulations shall take effect immediately. EFREN I. PLANA Acting Commissioner ANNEX "A" NATIONAL SCHOLARSHIP FOR DEVELOPMENT (NSFD) CONTRACT KNOW ALL MEN BY THESE PRESENTS: This Contract made and entered into this ________ day of ___________, 197___, at _____________________, Philippines, by and between: The __________________ with offices at ____________________________, (Name of Agency) (Address of Agency) represented herein by ______________________, ________________, of legal age, (Head of Agency) (Position) Filipino, single/married, with residence and postal address at ______________________________, hereinafter referred to as the Agency; - and - __________________________________, _________________________________, (Name of NSFD Grantee) (Position) a permanent employee of the above-mentioned Agency, of legal age, Filipino, single/married, with residence and postal address at ___________________________, hereinafter referred to as NSFD Grantee. WITNESSETH: (A) That the provisions of the NSFD Rules and Regulations shall be an integral part of this Contract; (B) OBLIGATIONS OF THE AGENCY 1. That the Agency shall advance payment out of the amount appropriated for such purpose, or out of its savings, the tuition and other fees of the NSFD Grantee, as officially billed by the School or University, for his/her studies during the period while the NSFD Grantee is in the employ of the Agency; 2. That the Agency shall not charge any interest for any amount advanced in payment of the tuition and other fees of the NSFD Grantee; 3. That the Agency shall not collect any repayment from the NSFD Granted if he/she has continuously maintained a high scholastic record in the course of his/her studies, i.e., consistent average rating in any school term of not lower than _______; and 4. That the Agency shall comply fully with the provisions of the Rules and Regulations implementing the NSFD. (C) OBLIGATION OF THE NSFD GRANTEE 1. That the NSFD Grantee shall pursue ____________________ (title of preferred course) and shall enroll immediately upon effectivity of his/her NSFD grant; 2. That he/she shall enroll successively and continuously thereafter until completion of his/her course; 3. That he/she shall enroll in such subjects as are scheduled after regular office hours and attend to need of his/her classes and studies after regular office hours only; 4. That he/she shall enroll for not less than ____ units each and every semester; at least 3 units during summer terms if he/she chooses to take up summer classes; 5. That he/she shall submit to his/her office or Agency at the end of each semester and/or summer term, a report of his/her studies; 6. That he/she shall repay the Agency the tuition and other fees advanced by the Agency for his/her studies in accordance with the provisions of NSFD Rule V under such arrangement as may be conveniently acceptable to both parties; 7. That such obligation shall become due and demandable upon termination of his/her NSFD grant which may occur in any of the following instances: When he/she (1) completes his/her studies; (2) resigns or is dropped from the government service; (3) discontinues his/her studies; and (4) fails in any of his/her subjects. 8. That he/she shall pay such obligation in full out of his/her regular salary in accordance with NSFD Rule V, and that if there should arise circumstances which would prevent him/her from repaying such obligation from his/her salary, the same shall be taken from his/her retirement pay or any other money which shall accrue to him/her in the course of his/her employment. In any event it is understood that such amount shall remain his/her personal obligation; and 9. The NSFD Grantee shall comply fully with the provisions of the Rules and Regulations implementing the NSFD. IN WITNESS HEREOF, we have hereunder set our hands this _____ day of __________________, 197__, at ____________________________: ___________________________ ___________________________ Agency NSFD Grantee By: ____________________________ Head of Agency SIGNED IN THE PRESENCE OF: ____________________________ ___________________________ ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINES) CITY OF ____________________ ) S.S BEFORE ME, a Notary Public for and in the City of ________________ this __________ day of _____________, 197___, personally appeared the following persons with their Residence Certificates, respectively indicated after their names to wit: 1. ______________________________ Res. Cert. No. A-_________________ Issued on _______________, 197____ at _____________________________ 2. ______________________________ Res. Cert. No. A-_________________ Issued on _______________, 197____ at _____________________________ Known to me to be the same persons who executed the foregoing National Scholarship for Development (NSFD) Contract, and they acknowledged to me that the same is their free and voluntary act and needed. WITNESS MY HAND AND SEAL on the date and place first above written. ____________________________ Notary Public My Commission expires on December 31, 19___ Doc. No. _________: Page No. _________: Book No. ________: Series of 19_______ :