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TO:	All Presidents of State Universities and Colleges The Minister of Education and Culture The Minister of the Budget All Heads of National Agricultural Schools

WHEREAS, it is necessary to marshall all available resources of government agencies in support of the food production program;

WHEREAS, state universities and colleges and national agricultural schools possess the necessary personnel and land resources to effectively contribute to the food production program;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby Order and Instruct:

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, poultrys 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:
   
   
   1. 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;
      
      
   2. The school shall be authorized to open a bank Recount 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.
      
      
   3. Any interest earned on the bank deposit shall accrue to the Revolving Fund.
      
      
   4. 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.
      
      
4. The income and expenses of the program shall be recorded in the books of account of the government, as special accounts in the General Fund, in accordance with such regulations as may be promulgated for the Program.
5. The school shall submit monthly reports of income and quarterly reports of expenses, duly supported by a copy of the bank statement, to the Minister of the Budget, who shall revoke the authority of the school to operate the Revolving Fund and to operate the bank account authorized under this Letter, should the school fail to comply with this reporting requirement.
6. The "Alay Tanim" program of the Ministry of Education and Culture shall be expanded to cover national agricultural schools and one additional unit per Region of "Ang Bagong Lipunan" prefabricated schoolbuilding shall be included in the schoolbuilding program as prize to the best "Alay Tanim" participant among national schools. Income from yields of fruit trees planted under this program may accrue to the Revolving Fund authorized under this Letter.

Done in the City of Manila, this 8th day of June, in the year of Our Lord, nineteen hundred and seventy-nine.