September 1, 2004

MEMORANDUM NO. ERR-04-091

To: Deans, Directors, Head of Units, Faculty, 
 Staff, Students and All Concerned

Subject: Austerity Measures
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Let us do our share in helping the country deal with the fiscal 
 crisis by adopting our own austerity program in Diliman. Cutting 
 down on expenditures is not new to most of us – in fact we have 
 been doing this all these years and with some success! But the 
 time calls for more “sacrifices” on the part of everyone. 
 I therefore urge you to implement to the best of your ability 
 the following measures:

I. Personal Services
1. Reduce overtime- unless absolutely necessary, overtime work shall
 no longer be allowed. Let us review work loads and their distribution 
 and ensure maximum productivity during office hours. Let us also 
 strictly follow rules on overtime. No overtime shall be paid if prior 
 submission has not been secured. Moreover, justification for overtime 
 must be carefully assessed. Our Office will now closely monitor 
 overtime expenses.

2. Monitor closely frequency of course offerings and class sizes 

 Department chairs are reminded to review the schedule of course 
 offerings. For example, offering the same electives every semester 
 might not be efficient. Classes with very small enrollment 
 (please refer to University rules) should be abolished.

3. Suspend filling up of vacant items
 As a general rule, filling up of vacant items shall no longer 
 be allowed. This is in accordance with the recent directive from 
 Malacanang that filling up of items vacated by reason of retirement, 
 resignations, termination and transfer shall not be allowed. 
 Highly exceptional cases may be considered on a case-to-case basis.

4. Suspension of foreign travel 
 Travel abroad that will require 
 government funding shall be suspended indefinitely. Exceptions 
 to this rule include those who are on study leave and those 
 representing the university in important meetings and conference.

II. Maintenance and Other operating Expenses (MOOE)
The following are the major items of MOOE expenditures (2003) figures
(note listed)

Please note that for these items alone, we spend over a quarter 
 of a billion pesos every year! Our efforts will therefore focus on 
 reducing in these expenditures.

1. Security services
Our recent review of the deployment of security guards has resulted 
 in a reduction on the number of guards and savings of about P20 
 Million. Units have devised creative ways of dealing with the 
 reduction in the number of security guards and we thank you sincerely 
 for your understanding and cooperation. We have also designated an 
 inspection team that will study alternative ways of securing buildings, 
 i.e. use of alarm systems, video cameras, etc. Purchase of security 
 equipment may be expensive in the short run but over the long term, 
 a combination of modern technology and deployment of guards may be
 more cost effective. We encourage you to submit to us proposals on 
 how to strengthened security in your areas in ways other than hiring 
 more guards.

2. Janitorial service
UP shall shoulder expenses for janitorial services that cater to 
 official UP activities only. We have noted that some units conduct 
 extramural activities, seminar, workshop, etc. from which they 
 generate revenues that are deposited as trust funds which UP cannot 
 access. For these activities, janitors render work or do overtime. 
 And UP pays for their overtime or salaries. This shall no longer be 
 allowed. Projects should be able to pay for the salaries or overtime 
 of janitors servicing these activities.

3. Electricity, Water and Telephone
3.1 Use of airconditioning units
 We are committed to provide good and clean working conditions, 
 including airconditioning units for faculty and staff offices 
 and some classrooms. However, we once again ask that airconditioning 
 units be used for no longer than 6 hours per day.

 We shall also do an energy audit of all buildings starting with 
 those classified as high consumption units to determine how we 
 can further reduce electrical consumption

3.2. Close monitoring of utilities consumption by Building Administrators
 Building administrators shall be asked to identify the measures 
 that will be undertaken for their particular units to reduce utilities 
 consumption. These measures shall be determined in consultation with 
 the Administrative Officers and the College Secretaries, Building 
 Administrators shall prioritized the responsibility of closely 
 monitoring utilities consumption and shall submit monthly reports 
 on activities undertaken relative to this responsibility, e.g. 
 number of hours airconditioners are in operation, reports on leaking 
 faucets and repairs done, etc. Monthly reports shall be submitted to 
 the Office of the Chancellor.

3.3. Telephone, computer, and fax machines usage
 Telephone bills shall be audited at random to determine expenditures for 
 overseas and long distance calls. Cellphone charges shall also be closely 
 monitored, We shall also fast-track the shift from the PABX system to VOIP 
 to save on the cost of leasing PABX facilities and manpower.

Let us minimize use of fax machines. Instead let us use email services 
 to transmit documents to other parties. Computer games in offices are 
 also banned.

3.4 Utilities consumption alert
As soon as possible, UP Diliman will identify the Top 10 consumers of 
 electricity, water and telephone. These units henceforth be closely 
 monitored.

III Other measures
1. The Lantern Parade has become a tradition that is awaited year 
 after year especially as it brings together the entire UP community. 
 The Executive Committee has decided to continue with activity this year, 
 but not in the same magnitude that we have been celebrating it. This 
 year let’s keep up on the Christmas spirit but let us have simple 
 lanterns. We have also agreed that no expense for the parade shall 
 be charge to UP funds.

2. In lieu of the Community Christmas Party we instead encourage simple 
 Christmas parties at the unit level.

3. The possibility of reducing operating hours for some units shall 
 be studied. We would like to get suggestions on which of your operations 
 can stand a reduction in operating hours.

IV Incentives for Cost reduction and Efficiency measures

Sacrifices will be rewarded! A portion of the savings generated 
 from the cost reduction and efficiency measures shall be given back 
 to the unit in the form of additional MOOE, Equipment Outlay, or 
 grants for research.

We are asking for your understanding and cooperation. Thank you.


EMERLINDA R. ROMAN 
Chancellor