Tertiary Education Subsidy (TES) A Guide to Higher Education Institution

What is the Tertiary Education Subsidy?

The TES is a grant-in-aid program of the government that supports the cost of tertiary education of Filipino students who enroll in their first undergraduate-post-secondary program in state universities and colleges (SUCs), local universities and colleges (LUCs), private higher education institutions (HEIs) and technical-vocational institutions (TVIs).

It is one of the major components of RA 10931 or the Universal Access to Quality Tertiary Education Act signed by President Duterte on August 3, 2017, which also includes Free Higher Education, Free Technical-Vocational Education and Training (under TESDA), and the Student Loan Program for Tertiary Education.

*Subject to prioritization and availability of funds.

Submission Procedures for TES

1. The TES Focal Person encodes information of TES applicants using the standard template in the TES Online Portal.
2. An Online Portal is provided for partner institutions through which they can coordinate with UniFAST in all stages of the TES program implementation.
3. The HEI submits the list of names of enrolled TES applicants every first semester of the academic year, for assessment of potential TES student-grantees, verification and validation of documentary requirements.
4. Submissions of applications are made only once in an academic year upon opening of the Online Portal. The Portal will be opened again to accommodate submissions after the deadline, only upon the approval of the Executive Director.
5. The number of applications received from a particular HEI should not be greater than its carrying capacity as provided under CHED regulations. And HEls shall be compliant with all the requirements indicated in the Manual of Regulations for Private Higher Education (MORPHE). Prior to the opening of the Portal, the CHED Regional Offices provide the Secretariat a certification containing the list of the HEls under their jurisdiction. The Portal is configured in such a way that the number of applications of an HEI does not exceed its CHEDRO-certified carrying capacity.

Functions, Roles, and Responsibilities of HEIs

1. Execute and properly comply with the provisions of the tripartite MOA between the UniFAST, the Commission on Higher Education and the HEI.
2. Orient qualified TES student-grantees and other stakeholders on the TES implementation.
3. Submit to the UniFAST Secretariat a Certification of Tuition and Other School Fees signed by the President.
4. Settle any unliquidated cash advances with CHED for ASC availment.
5. Prepare the TES Sharing Agreement.
6. Perform the administrative and financial procedures stated in the Joint Memorandum Circular No. 4, s. 2020.
7. Prepare TES billings.
8. Ensure that full assistance through proper orientation and information dissemination has been provided to qualified enrolled TES student-grantees.
9. Be accountable for the funds received from the CHED RO pursuant to the MOA.
10. Ensure continuous compliance with the MORPHE and other CH ED regulations.

How to Liquidate Transferred Funds

For proper reporting on the release of funds, private HEIs should prepare and submit to the CHED ROs within 60 days from receipt of funds, the following documents:

1. Fund Utilization Report (FUR) duly certified by the Accountant and / or Vice President for Finance, duly verified by the internal / external Auditor and approved by the President / Head;
2. Reports of Disbursement with supporting documents for ASC, signed by Disbursing Officer, approved by the Finance Officer or Authorized Official:
3. Official receipts and other pertinent documents to substantiate the use of ASC;
4. TES Billing Details approved by the president / head of the private HEI (print-out and electronic copy);
5. Notarized Registrar’s Certification stating the total number of qualified TES student-grantees for each regular term of the academic year and the names of grantees who were not readmitted, on leave of absence, transferred to another HEI, dropped from the school roster, suspended, excluded, expelled and unable to continue studies due to other reasons;
6. Certificate of Registration of the TES student-grantees for each regular term during the academic year (PDF copy);

Additional requirements in case stipends for grantees were disbursed through the HEls:

1. FUR for the stipends, duly certified by the Accountant and / or Vice President for Finance, duly verified by the internal / external Auditor and approved by the President / Head;
2. Report of Disbursement with supporting documents for stipends, signed by the Disbursing Officer, approved by the Finance Officer or Authorized Official:
3. Payroll report duly signed by the recipients of TES;
4. Photocopy of school identification card of TES student-grantees with specimen signature; and
5. Notarized TES Sharing Agreement between the TES student-grantee and the private HEI (originally signed print out and PDF copy).

Any unused or excess funds should be returned to the CHEDRO together with the liquidation report.

Administrative Cost (ASC)

The ASC for HEls is a percentage of the total actual TES funds received by the HEI, and should not be more than the percentage set by the corresponding Special Provision of the General Appropriations Act of the current fiscal year. Excess or unutilized ASC shall be returned to the UniFAST through the CHED ROs.

‘Subject to government accounting and auditing rules and regulations.

Breakdown of Financial Benefits