Republic of the Philippines OFFICE OF THE PRESIDENT COMMISSION ON HIGHER EDUCATION CHED MEMORANDUM ORDER No.

___08___ Series of 2003 GRANT OF UNIVERSITY SYSTEM TITLE TO HIGHER EDUCATION INSTITUTIONS X-------------------------------------------------------------------------------------------------------------X In accordance with the pertinent provisions of Republic Act No. 7722, otherwise known as the "Higher Education Act of 1994" and by the virtue of CHED Resolution Number __044__ dated __February 17, 2003__, the Commission on Higher Education hereby promulgates the guidelines governing the use of "University System" title by higher education institutions in the country. Article I. STATEMENT OF POLICY The Commission on Higher Education (CHED) as stated in the Medium Term Higher Education Development and Investment Plan (MTHEDIP) has adopted several strategies to address the trend towards mass higher education without sacrificing quality in the delivery of higher education. These are all geared towards the attainment of the four goals, namely, quality and excellence, relevance and responsiveness, access and equity, efficiency and effectiveness. One of the strategies identified is for excellent higher education institutions (HEIs) to transform themselves into University Systems where common academic policies and administrative structures are used to the greatest advantage, without restricting academic freedom and institutional and mandates. There is a also a growing concern on the cost-effectiveness of higher education and the efficiency of operating higher education institutions especially in developing countries where phenomenal growth in population has resulted in rapidly increasing student enrollment. Alternative organizational structures like the "University System" model may be used to address institutional efficiency for better financing schemes, to adjust to new and emerging conditions, and to provide wider access to higher education. Article II. OBJECTIVES This set of policies and guidelines is intended to define the establishment or creation of a "University System" by higher education institutions and to clarify the application of CHED Policies, Standards and SUBJECT :

Guidelines relative to the University System as a whole and to its constituent units. Article III. COVERAGE The policies and guidelines apply to all HEIs, both private and public. Article IV. DEFINITION OF CONCEPT A University System is an organized academic entity composed of separate but interrelated units, at least one of which has university level status. A single board responsible for the formulation of system-wide policies and programs governs a University System. The System shall have the general powers of a corporation set forth in the Corporation Law. A University System must have a clearly defined organization that is governed primarily by the board and by a set of officers, both system-wide and for each constituent unit. Article V. GUIDELINES In addition to the existing standards and guidelines for the grant of government authority to establish colleges and universities and to offer programs, the following are the guidelines for establishment of a University System: Sec. 1. Governing Board. The governing body or board which is commonly called as Board of /Trustees/ Directors/Regents has full powers of organization and governance of the System and is vested with the responsibility of formulating policies common to all units of the System. The exercise of the university's corporate power is also vested exclusively in the board. Sec. 2. System Administration. The system administration shall coordinate and integrate system-wide functions and activities. The University System's Chief Executive Officer and head of the system administration (may be called President) is appointed directly by and is responsible to the governing board. All other officers of the University System are responsible to the Chief Executive directly or through designated channels. The Chief Executive is responsible for the implementation of policies approved by the governing board and the administration of all operations of the University System. Among the Chief Executive's most important functions are consultations with the heads of the constituent universities/colleges of the System on academic policies, recommendations to the board on the academic plans of the constituent universities/colleges and presentation of a single budget for the entire University System. Sec. 3. Constituent Units. A college/university may be made part of the University System only if at least fifty-percent (50%) of its tertiary program ii

offerings have Level II accreditation and if more than fifty-percent (50%) of its student population is at the tertiary level. An existing University System intending to include an additional constituent unit must seek the prior approval of the Commission and prove compliance with the requirements under this Order. Each constituent unit in the University System will have its own Chief Executive Officer (may be called Chancellor) to whom broad powers shall be delegated by the board for the organization and operation of the constituent unit. The governing board shall define the extent of autonomy of each constituent unit. The board shall also define the organizational structure of each unit. The administration of a constituent unit shall be responsible for the academic, administrative, and service functions of the unit. Sec. 4. Academic Senate. The University System shall have an Academic Senate where the regular faculty members of all constituent units are represented. The Senate passes on all academic policies for recommendation to the governing board and which would be applicable to all units of the System, from the admission to the graduation of students, their discipline and the courses of study. Sec. 5. University Council. Each constituent unit in the University System will have its own University Council, analogous as to composition and function to the system-wide Academic Senate. It shall approve for recommendation to the governing board all academic policies which would be applicable only to the unit but which are consistent with systemwide policies. The governing board shall clearly define and delineate the role of the University Council and Academic Senate. Sec. 6. Budget. Each constituent should have an independent/separate budget but with provisions, as may be prescribed by its board, to share finances between constituents if and when the need arises. Sec. 7. Faculty and Staff. Each constituent unit should have its own roster of faculty and staff. However, the sharing and mobility of faculty members among units may be effected through policies formulated by the governing board in order to maximize the use and sharing of resources, physical, financial and human resources. Notwithstanding the possibility of sharing of faculty resources, each constituent unit must fulfill the faculty requirements set forth for a separate university/college. Sec. 8. Program Offerings. Program offerings of the constituent units in the system should complement each other, taking into account the physical iii

and human resources of the constituent unit and the needs and development priorities of the area where the unit is located. For private HEIs, the authority to operate programs shall be awarded to a specific unit of the system as indicated in the award or permit or recognition. The authority granted to one unit does not necessarily apply to the entire system unless the authority specifically states such. Sec. 9. Research and Extension Services. While each constituent unit may have its own thrust in research and extension that responds to their resources and the needs of their service area, the University System may institute mechanisms for the coordination and integration of these activities for more effective use of resources and in order to achieve bigger goals. Sec. 10. Cross Crediting. A university system shall provide a mechanism for recognition of units earned by a student in one constituent unit of the University System to the other units within the same system. Sec. 11. Facilities and Equipment. Each constituent unit should have its own facilities and equipment for instruction and laboratory purposes. The facilities and equipment of each unit should conform to the standards set by the Commission in the particular programs being offered. Sec. 12. Site and Buildings. The physical plant of each constituent unit should conform to the existing laws, rules and regulations on the same. Sec. 13. Status. Designations given by the Commission such as deregulated status, autonomy or center of excellence shall apply only to the specific university/college to which the award is made and not necessarily to the entire University System unless otherwise specified in the award. Any status previously awarded to a constituent unit prior to this Order shall not be automatically applied to the University System of which it becomes a part nor to the other constituent units of the University System. Sec 14. Establishment. Higher education institutions, both public and private, complying with the foregoing requirements must file their application for University System status and seek the prior approval of the Commission for the use in their corporate name/s the term University System or Academic System or Educational System or any term similar thereto or purporting to the public that it is a University System within the definition stated in this Order before they can register with the Securities and Exchange Commission as such and use the aforesaid terms in its corporate seal or name or in advertisements to the public.

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The use of the terms indicated above shall not be limited to the use in the corporate name of the HEIs but shall likewise include the use of the said terms as trademarks or tradenames by the HEIs, in any form, through advertisements, directly or indirectly, or any other representations made to the public creating the impression that the HEI possesses the qualifications of a University System within the definition of this Order. Sec. 15. Appropriate Sanctions for Violations. Any HEI found after due hearing to have violated or continues to violate any of the provisions stated herein shall be imposed any of the following administrative penalties but not limited to: a. Loss of status currently held b. Withdrawal of government authority to operate specific programs depending on the gravity of the violations c. Ineligibility for or cancellation of grant of autonomy or deregulated status d. Recommendation to the SEC on the revocation of registration of the HEI for violation of this order The above shall be exclusive of other possible sanctions, i.e., filing of the proper civil, criminal or administrative actions against responsible school officials found initiating or abetting the violations. The Commission shall hereafter issue further guidelines as may be deemed proper on a case to case basis, and coordinate with the Securities and Exchange Commission concerning the possible cancellation of violators' corporate registration. Sec. 16. Effectivity. The grant of University System is valid for five (5) years from date of approval of university system status and shall be subject to review by the CHED. Sec 17. Transitory Provisions. All existing new systems shall be given a period of three (3) years from the effectivity of this CMO to comply. Article VI. REPEAL. All existing issuance inconsistent herewith are hereby deemed revoked, revised, amended and /or repealed accordingly. SO ORDERED. Pasig City, Philippines, ____May 6, 2003_____. (SGD.) ESTER A. GARCIA Chairman v

APPENDIX 1 SET OF OFFICERS AND COMMITTEES (ST.PAUL UNIVERSITY SYSTEM ) The Chancellor. He/she is the chief executive officer in the university system and as such is the principal administrative and academic officer of the system. The Chancellor serves as the chair of the Systems Administrative Board and the presiding officer of all its meetings. He/she is responsible for the entire operation of the System and is accountable for its results. He/she is to represent the System as chief spokesperson. The Chancellor represents the needs and views of the Systems component institutions. The Presidents. They are the chief executive officers for their respective campuses and shall have the authority and responsibility for the proper and effective management of their institutions in accordance with the policies established by their respective Boards of Trustees. In relation to the System, the Presidents report directly to the Chancellor and consult him/her on all matters that affect the health of the institution and the System. They are responsible for the execution in their respective institutions of all decisions, programs, policies, and systems approved by the Administrative Board. They shall update the Chancellor of the progress made in their institutions in relation to the goals and objectives of the System. They are to provide all the information, human, and logistical support at their disposal as may be required, in order to meet the goals and needs of the system. The Administrative Board. It is the decision-making body for the entire system. Specifically, it is responsible for strategy development and management and the development of structures and formulation of policies to ensure the effective and efficient implementation of strategies. It approves all human resource sharing arrangements within the system and the adoption of systemwide programs, policies, structures, systems or major changes affecting the System. It is composed of the Chancellor as chair and the Presidents of all member institutions. Should a component institution cease to be a member of the System for whatever reason, its President automatically ceases to be a member of the Administrative Board. Should there be additional institutional members of the System, their respective Presidents automatically become members of the Administrative Board upon approval of their membership. All the proposals and recommendations of the Executive Committee will be discussed, evaluated, and acted upon by the Administrative Board. It also makes final decisions on the addition, merger, or termination of Standing Committees. However, where decisions will directly impact the life of a member institution, such decisions will be subject to the approval by the Board of Trustees of such institution.

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Committees. D.1. The Technical Committee. It is created to assist the Board in setting directions and evaluating recommendations. The Technical Committee shall serve as the think-tank or internal consultant group for the System. Its main task is to study and recommend things to the Administrative Board for approval. The Committee is accountable for formulating policies, processes, and frameworks for system-based strategy planning and management for use and implementation across the system. All proposals and recommendations made by the Standing Committees will be submitted to the Technical Committee, which will evaluate their impact to the overall strategy of the System. The Technical Committee can require the Standing Committees to revise such proposals or recommendations. Once cleared by the Technical Committee, such proposals and recommendations will be submitted to the Administrative Board through the Chancellor. On the other hand, the Administrative Board can delegate to the Technical Committee the process of reviewing proposals that are received directly from member institutions and making appropriate recommendations to the Board. The Board can also delegate to the Technical Committee the process of evaluating existing policies, systems, and structures at the System level and making recommendations to increase the Systems effectiveness and health. D.2 Standing Committees. They are responsible for the planning, implementation, monitoring and supervision of particular areas critical to the life of the System such as programs, external affairs, and finance. Each Standing Committee may form project teams whose leaders will be recommended by the Committee Chair. All proposals made by the Standing Committees require review and evaluation by the Executive Committee and approval by the Administrative Board prior to implementation. It is chaired by the President of a member institution who has the responsibility to choose the members from among the members of the system. Each Standing Committee is required to make annual reports to the Administrative Board at the end of each school year. The Chairs of the Standing Committees are directly responsible to the Chancellor. Committee on Programs and Standards. This Committee is responsible for the development and application of processes and policies relative to new program development, program integration, program review and updating, program termination, and internal accreditation. It is responsible for programming, implementing and evaluating curriculum and instructional development programs to benefit the member institutions. It evaluates academic-related systems, such as the performance appraisal system and the ranking and re-classification system, and makes recommendations for improvement. The Committee is tasked to set and impose quality standards on all member institutions as approved by the Administrative Board. It is also responsible for the development and maintenance of academic-related partnerships and other forms of linkages. It shall oversee that all the student vii

services and academic support systems are aligned with the goals and objectives of the academic programs. The Committee shall also coordinate policy and planning for all institutional relations of the System with external constituencies. Institutional relations include matters relating to government affairs, community relations, non-governmental organizations, other educational institutions or foundations, parent organizations, media and other external constituencies which can enhance the image and effectiveness of the System. It has the responsibility of promoting the System and its interests and establishing partnerships, linkages and strategic alliances with local and international organizations for purposes of advancing the vision, mission, and goals of the System. Moreover, the Committee is tasked to propose advocacy programs and ensure the collective commitment and unified action of the entire System. Committee on Human Resource Development. This Committee is responsible in planning, administering and developing a human resource program to ensure the effective identification, recruitment, training and maintenance of the Systems manpower requirements. The Committee is tasked to organize a more efficient identification of expertise for deployment, training and development for institutional and inter-institutional human resource sharing. It shall establish and maintain a standardized appraisal system for recognition, promotion and ranking purposes. It shall further institutionalize a system-wide machinery that will provide highly competent internal trainers and consultants for the empowerment of member institutions, for institutional image-building, as well as for an alternative resource-generation. Committee on Student Services. Students are the focus of the academic system. The Committee shall shape the provision of student services to meet better the diverse needs of the students. d. Committee on Finance. The Committee shall coordinate policy and planning for all financial matters of the System. It shall consider all recommendations of the Administrative Board of a fiscal nature. Financial affairs include not only the operating and capital budgets of the System but also expenditures, revenues, fiscal commitments, property sales and acquisitions, and other transactions that affect the financial resources of the System. Besides advising the Board on all policy matters related to financial affairs and carrying out all responsibilities with respect to the System finance, the Committee is tasked to identify, generate, and allocate financial resources required to implement the strategies of the System.

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APPENDIX 2 SET OF OFFICERS (UNIVERSITY OF CALIFORNIA) AUTHORITY AND DUTIES OF : President - Appointed directly and responsible to the Regents, the President is the University's Chief Executive. All other officers of the University, except the Principal Officers of the Regents, are responsible to the President directly or through designated channels. The President has full authority and responsibility over the administration of all affairs and operations of the University, excluding those which are the responsibility of the Principal Officers of the Regents. The President may delegate presidential duties except for services as an ex officio Regent. Among the President's most notable functions are consultations with the Chancellors and Academic Senate regarding the University's educational and research policies, recommendations to the Regents concerning the academic plans of the University and the campuses, annual presentation to the Regents of a single operating budget and capital budget for the entire University, and administration of the Office of the President. The Office of the President is organized into five vice presidential divisions - Academic Affair, Business and Finance, University and External Affairs, Health Affairs, and Agriculture and National Resources. The Provost and Senior Vice President - Academic Affairs has overall responsibility for the academic and budgetary activities of the University and is the principal link between the central administration and the Academic Senate. The Senior Vice President - Business and Finance is the University's chief business and financial officer. The Vice President University and External Relations is responsible for advocacy, governmental relations, and communications and public affairs. The Vice President - Health Affairs plans and coordinates health professions training and clinical services provided by the University's teaching hospitals. The Vice President Agriculture and Natural Resources coordinates the University's statewide agricultural programs and oversees management of the University's Natural Reserve System. Chancellors - Chancellors, to whom broad powers are delegated are the executive heads of all campus activities. Chancellors are responsible for the organization and operation of their respective campuses, including academic, student, staff, and business affairs; and for discipline within them. Decisions made by Chancellors within the provisions of the budget allocations for their campuses and the provisions established by the Regents or the President is final. Each Chancellor is assisted by various administrative officers - Vice Chancellors, Deans and Provosts, Department Chairs, Directors of Organized Research Units.

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Campus Academic Administrative Structure - Campuses are organized into Schools or Colleges, or both, which are themselves organized into Departments or Divisions. Some departments are further divided into disciplinary divisions. Administrative, fiscal and policy responsibility for a School or College is assigned to its Dean or Provost. The academic leader and administrative head of a Department within a School or College is the Department Chairperson. Chairs are appointed from the faculty ranks by the Chancellor, to whom they are responsible through the Dean or Provost. Academic Senate - The University of California has a long tradition of extensive faculty participation in the educational administration of the University through the Academic Senate. The Senate is composed of all regular ranks faculty and major campus and administrative officers and functions as the voice of the faculty in University governance. The Senate advises the President and the Chancellors on many issues of academic policy, including budget matters, the administration of the libraries, and the appointment and advancement of faculty members. In addition, the Senate authorizes, approves, and supervises all courses, except those of certain graduate professional schools and determines the condition of admission, certificates, and degrees.