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TO:	The Minister of Education and Culture The Minister of the Budget The Minister of Local Government and Community Development The Chairman, Commission on Audit

Whereas, the limited funds of government need to be used in the most effective manner;

Whereas, the production of textbooks is a priority activity that needs maximum funding support;

Whereas, a relative priority structure must be determined in the allocation of funds for textbooks, reference books, supplementary readers, flip charts, and other types of teaching aids;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President, (Prime Minister) of the Philippines, do hereby Order and Instruct:

1. The production and procurement of textbooks shall be undertaken through EDPITAF, which shall prepare and submit for the approval of the President, an annual textbook program that indicates the status of existing textbook levels in the various Regions, the proposed annual distribution identified as to region grade, subject, title, and other pertinent information.
   
   
2. Funds appropriated for books, whether coming from loan proceeds or peso counterpart requirements supported by the general Fund or by Special Funds or Accounts, shall be covered by the textbook program to be prepared by EDPITAF.
   
   
3. The funds appropriated for EDPITAF, including loan Proceeds and peso counterpart requirements, may not be used for the procurement of items other than textbooks.
   
   
4. The purchase of textbooks, supplementary readers, reference books, and other similar items which are funded from the regular equipment funds of the Ministry of Education and Culture, of national high schools and colleges, or from Local School Board funds, shall be subject to the prior approval of the President in consonance with LOImp. No. 29.
   
   
5. Maintenance and operating funds of the Ministry of Education and Culture may be used for the production or procurement of teaching aids other than books only with the prior approval of the President, following the procedure established under LOImp. No. 29 for books.   Such maintenance and operating funds may not be used for the production or procurement of books.  For purposes of these Instructions, teaching aids shall include flip charts, flash cards, workbooks, magazines, naps, manuals, garden tools, films, slides, audio-visuals, pictures, printed material, laboratory aids,  and other items or materials of similar nature  and purpose.
   
   
6. Funds appropriated as assistance to local schools, including barangay schools, shall be transmitted in cash and in full to the local government units concerned, who shall be responsible for seeing to it that the funding is used for the local schools concerned.  Priority in the use of the said funds shall be  given to upgrading of teacher salaries and allowances in order that they may be compensated at the national schoolteacher compensation scale.   The funding assistance to local schools may be used by local government units for the procurement of books and teaching aids only with the approval of the President pursuant to LOImp. No. 29.
   
   
7. Funds still available out of those appropriated m B. P. Blg.  40 for  schoolteacher material shall be distributed to them in cash.
   
   
8. Funds intended for regional operations shall not be retained at the Central Office for purposes of centralized procurement without the prior approval of the Regional Director concerned and of the Minister of the Budget.
   
   
9. Central Office procurement shall be done through the Procurement Council created under LOI No. 755 for items which are handled by the said Council.
   
   
10. The Minister of the Budget shall study the provisions of existing law, including the General Appropriations Act, and Propose such revisions that will ensure consistency with these Instructions.
    
    
11. The Chairman of the Commission on Audit shall study the transactions of the Ministry of Educational and Culture and of Local School Boards during 1980 and shall report to the President on those transactions  inconsistent with these Instructions, including those completed prior to date hereof.  A preliminary report shall be  submitted on transactions to date, within sixty days of date hereof.

Done in the City of Manila, this 16th day of July, nineteen hundred and eighty.