Pursuant to CSC Resolution No. 98-1052 and to make LSP more responsive to the needs of the scholars and/or other agencies, the Commission adopted the following revised/additional guidelines on the Local Scholarship Program (LSP).

Responsibilities of the Scholar

The following responsibilities of the scholar are hereby revised to read as follows:

choose a field of study relevant to the needs of his/her agency. As appropriate, a scholar may enroll in a non-thesis master's degree program.

sign a scholarship contract with the Commission and his agency covering the terms and conditions of the scholarship.

complete all requirements for the master's degree within one year. This means, completion of all academic units, term papers, examinations and thesis or project/research study needed to earn a master's degree.

In case a scholar is unable to complete the course within one year for meritorious reasons, the CSRO Director may extend the grant for a maximum of one semester or six months. Whether or not the scholar will continue his/her studies on official time for the extended term shall be at the discretion of the agency head.

The grant shall cover the tuition and other school fees of the scholar for the extended terms provided that the amount of P 22,500 allotted for each scholar has not been fully utilized.

If the scholar would not be able to complete the grant after the extended term/period, he/she may continue his/her studies at his/her own time and expenses. He/she may file a leave of absence, subject to the approval of his/her agency head to enable him/her to complete the grant within six months. Otherwise, the scholar will refund to the CSC all the expenses defrayed for his/her studies and to his/her agencies the salaries and allowance he/she received while on official study grant.

work on thesis/research study that is relevant to the needs of his/her agency.

upon completion of the course and/or after the one-year official study grant, serve his/her agency as follows:

Scholarship Term	Service Contract
1 year	2 years
1 years	3 years
2 years	4 years

provide his/her agency a copy of the scholarship contract before the official start of the grant; and

authorize the agency's cashier to deduct from his/her salary the corresponding amount to be refunded to the CSC and/or the agency, in case of violation of any of the terms and obligations stipulated in the contract.

The following is added to the LSP guidelines both for LSP-MDP and LSP-BDC to wit:

Penalties for Violation of the Terms and Conditions of Scholarship Contract

In the event that the scholar fails to: (1) complete the degree or discontinue his/her studies; or (2) fulfill/render the service obligation stipulated in the contract through his/her own fault or willful neglect, resignation, voluntary separation or transfer, the scholar shall refund to the:

a. Civil Service Commission the actual full amount actually defrayed for his/her study grant. However, in case the scholar completed his master's degree and opted to transfer to another government agency, he/she shall no longer refund to the Commission the amount spent for his/her studies.

b. Agency all salaries and other remunerations received while on scholarship.

Such refund of all expenses, e.g. salaries and allowances may be condoned on the following instances:

separation from government due to:

abolition of the office; or

involuntary phase-out of the position being held by the grantee due to reorganization; and

death or permanent disability.

The proportionate refund of the monetary value of the scholar's service obligation to the agency shall be allowed after he/she has rendered at least fifty percent (50%) of the total service obligation in the agency.

Example:

A scholar received a gross total of P 120,000 representing the salary and other remunerations paid to him/her while on one-year study grant. He/she has served the agency for one year after completion of his studies. While on service obligation, the scholar opted to transfer or resign, he/she will then refund to the agency P 60,000.00 only. This is the total monetary value of his/her unexpired service obligation.

The mode of payment whether on installment basis and/or through salary deduction, shall not exceed three (3) years. An agreement, duly executed in an affidavit shall be effected between the scholar and the CSC or between the scholar and the agency.

Distance Learning Mode

An LSP-MDP scholar may also pursue the grant through distance education mode offered by UP and other colleges/universities accredited by the Commission on Higher Education (CHED) as long as the grant is completed within two years, and subject to the LSP-Distance Education Program guidelines stipulated under MC No. 14, s. 1997.

Availment of Other Training/Scholarship Program During the LSP Grant

LSP scholar shall no longer be nominated nor avail of any local/foreign training or scholarship grant while on scholarship to enable him/her to complete the grant within the allotted time.

This memorandum shall supersede all previous issuances not consistent herein.

For the information and guidelines of all concerned.

Adopted: 14 May 1998

(SGD.) CORAZON ALMA G. DE LEON
Chairman