The unused scholarship funds amounting to P1.7 billion will be returned to the government coffers, the Science Education Institute (SEI) of the Department of Science and Technology (DOST) has assured.

DOST-SEI Director Dr. Josette Biyo assured the public that the funds will be remitted to the Bureau of the Treasury (BTr) after the Commission on Audit (COA) flagged the Institute for its unutilized funds and directed them to return these funds to the state coffers.

“To date, SEI is now in the process of preparing the necessary documents for the reversion of the P1.7 billion to the Bureau of the Treasury which accumulated over the years,” she told the Manila Bulletin in a Viber message.

She explained that DOST-SEI has been authorized expressly by Section 4 of Republic Act No. 7687 to create the Science and Technology Scholarship Fund to ensure fulfillment of the institute’s mandate.

"Moreover, SEI’s General Appropriation Act (GAA) includes a provision ensuring that the full requirements of existing scholars are considered to guarantee their continued funding. Hence, the need to maintain the S&T Scholarship Fund,” she added.

RA No. 7687 or the “Science and Technology Scholarship Act of 1994” provides scholarships to talented and deserving students whose families’ socio-economic status does not exceed the set cut-off values of certain indicators.

“The budget intended for the scholars whose scholarships were suspended for failure to satisfy the scholarship requirements, those who deferred availment of the scholarship award, those who are on a leave of absence, among others, are being deposited in the S&T Scholarship Fund to ensure that their scholarship benefits will still be available to them when they have already complied with the necessary requirements,” Biyo said.

In its 2020 audit report, the COA directed the SEI to remit the funds to the Treasury. These funds include grants intended for scholars who were ineligible or not qualified to receive the benefits.

When asked on the P5.38 billion unliquidated fund transfers to implementing agencies, including state universities and colleges (SUCs), Biyo said SEI has already conducted series of meetings with the accountants and project leaders of the implementing agencies and SUCs of the various scholarship programs and agreed on liquidation mechanisms.

"This resulted in improved submission of the liquidation report. However, for those that remain complacent with the submission of liquidation report, SEI will be issuing demand letters,” she said.

State auditors called on the SEI to compel the implementing agencies to immediately submit their liquidation reports, noting that the SUCs had outstanding balance of fund transfers totaling P2.74 billion.

Biyo said the state auditors’ 2020 report prodded them to look “into the possibility of releasing the financial assistance directly to the scholars to avoid the same COA findings in the future.”