The Minister of Education and Culture
        The Minister of the Budget
        All Heads of National Agricultural Schools

1.    All state universities and colleges and national agricultural schools with suitable agricultural land area shall prepare a food production plan with particular emphasis on protein sources and legumes, particularly cassava, seguidillas, mongo, soya bean, and where suitable, fruit trees, fish, cattle, hogs, poultry, goats, and other food sources.

2.    The food production effort shall be considered as a proprietary activity of participating schools. Commodities shall be sold at commercial rates, with income to be entered as income of a school Revolving Fund. Direct expenses shall be charged to the same Fund, subject to rules and regulations which shall be issued by the Ministry of the Budget and the Commission on Audit.

3.    The following guidelines shall be observed in the formulation of rules and regulations:

a.    Only income from sale of commodities generated under this Program shall be recorded as income of the Revolving Fund and all expenses incurred in such effort shall be charged to this Fund. The expenses which shall be charged to the Fund shall include the cost of labor and supervision, including faculty honoraria, fertilizer, seed, farm implements and the like. No expenses directly associated in the food production effort may be charged to the regular budget of the institution, except for initial development cost as may be duly approved under pertinent budget rules;

b.    The school shall be authorized to open a bank account into which the income may be directly deposited. Expenses, likewise, may be directly drawn from the account. The bank accounts shall be opened only with the duly authorized government bank at which the school deposits its regular income or collections and shall be drawn against on joint signature of the authorized school financial official and of the representative of the Commission on Audit. No Cash Disbursement Ceiling shall be necessary to draw from the fund. 

c.    Any interest earned on the bank deposit shall accrue to the Revolving Fund.

d.    Net profits earned by the schools' food production program may be used for the improvement of school facilities, the acquisition of equipment other than motor vehicles, augmenting school maintenance and operating expenses, purchase of library books, the hiring of casuals who are employed in the food production program, and other similar purposes that involve non-recurring expenditures. The fund, however, shall not be used to pay bonuses and allowances to the full time staff of the school, except for honoraria to staff members actually participating in the program and as may be approved by the Minister of the Budget.

Since 19.07.98.