Republic Act 8292, also known as the Higher Education Modernization Act of 1997, contains provisions for the corporatization of State Universities and Colleges (SUCs) in the Philippines. SUCs are permitted to engage in corporate activities in order to produce income under these provisions [1]. Income Generating Projects (IGPs) refer to activities which generate additional revenues for the specific purpose for which it was created.

Contrary to expectations that IGPs will significantly contribute to helping SUCs become more financially self-sufficient, the impact of IGPs in overall SUCs receipts has remained minimal and has even decreased from 2003 to 2012. Slower than the average growth in SUCs total student revenue (17 percent) over that time period, SUCs income from their income-generating initiatives and other self-sustaining operations increased by 13 percent annually on average in nominal terms in 2006–2012. As a result, from 24% in 2003 to 20% in 2012, the share of SUCs income from IGPs and other self-sustaining activities in their overall internally generated income marginally decreased [2].

Income Generation Project is believed by many as a means to financial autonomy of SUCs. It is therefore important that SUCs should be able to maintain its operation for the years to come, hence this study is conducted to review the management strategies employed by State Universities and Colleges in Panay Island to ensure profitability.                

The study utilized a descriptive design using the survey method. A research design is the structure of research that is said to be the glue that holds all the elements of the study together. Kiran [3] describes it as "the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The study was conducted in the different campuses of State Universities and Colleges in Panay Island, Philippines.

Respondents of the study is a complete enumeration of University Business Affairs Office (UBAO) Directors, URGP/IGP Directors, Managers /In-charge of different IGPs. Secondary data gathered from different SUCs and a researcher modified questionnaire on management practices were used to gather data. Data collected were compiled, summarized and categorized. Categories of responses and participants views were prepared on commonality for descriptive purposes.

Management strategies of income generating projects among SUCs were categorized in terms of their production, marketing, financial and human resource aspect.

Production Aspects

Result showed that more than half (59.04%) of the IGPs used local materials in production (59.04 %); the management supported the production of quality products 

(55.24 %); used of technology to improved production efficiency (28.57 %); surprisingly, despite SUCs being mostly ISO accredited, ISO standard was not given much attention in production aspects of IGPs, only 7.62 % followed ISO standards in production process.

This simply implies that IGP used the abundance of local materials for production which enabled them to sustain production for a longer period of time. However, lack of standard process in production posted a threat to the operation of the project, thus affected the production of quality products. 

Marketing Aspects

Result showed that giving discounts to bulk orders is practiced by approximately 20 percent (21.9) of IGPs which had observed a clear, well-defined marketing strategies. This implied that the strategy ensured customers' loyalty and encouraged repeat orders from clients especially those came from within the locality. Items on "regular evaluation of IGPs by doing a SWOT analysis"; and IGPs having a facebook accounts" were not given much importance as shown by the mean of 3.81, which had the lowest mean under the management aspects. All IGPs did not have their own websites, with the advent of technology and the rapid growth of social media, businesses should learn how to make use of this platform to promote business, however, IGPs of SUCs had not made used of this platform. Further, the SWOT analysis is an important tool in making the business at par with the industry. Results further revealed that IGPs managers did not regularly conduct SWOT analysis of their projects that resulted to either a slightly higher or slightly lower price range compared to other businesses of the same product’s range.

Financial Aspects

Result showed that 17.14 percent of IGPs monitored their monthly income and expenditure against formal budgets which ranked first among the financial aspects; which mean that IGPs managers did not have proper recording of their incomes and expenses on a regular basis. Approximately four percent (3.81%) of the IGPs had its own bank accounts, separated from that of the institutions and their accountants only maintained a separate ledger for IGPs. 

Data on financial aspect strategies clearly imply that IGPs among SUCs did not have sound financial practices. This is happening because IGPs managers were mostly faculty members who were in different fields like agriculture, fisheries, food technologist and others, but have little knowledge of financial management. Result on financial aspects strategies clearly implies that IGPs among 
 SUCs does not have sound financial practices. This is mostly because IGP managers are mostly faculty members' expert in different fields like agriculture, fisheries, food technologist, and etc. but have little knowledge of accounting and management practices.

Human Resource Aspects

Result showed that 13.33 percent 0f IGPs gave performance bonus to their employees; this could be considered as IGPs best practices. This implies that IGPs of SUCs implemented what is provided in their manuals which set the standards for profit-sharing schemes which 60:40. Sixty percent for the projects and 40 percent for IGPs' in-charge and staff. However, in an interview conducted, IGPs managers said that it is very seldom that incentives were given to them firstly, because IGPs could not met the target set and they were not able to submit required reports, especially financial reports, project proposals and project development plans which were the bases of releasing their performance incentives.

Human resource aspects were not given much attention on IGPs among SUCs. IGPs lacked a concrete plan of where the business should be in the years to come. The option of simply charging back the loss of the IGP projects to either instruction or administrative expense is a drawback for IGP managers, thus, they do not exert their full effort to make the project profitable.

1. Malate, Renato F. "Corporatization of state universities and colleges: Impact on higher education." https:// asianscientificjournals.com/new/publication/index.php/ljher/article/view/24.

2. Manasan, Rosario and Rowena Revilla. Assessment of Sources and Utilization of Funding of State Universities and Colleges. https:// dirp3. pids.gov. ph/ websitecms/ CDN/ PUBLICATIONS/ pidsdps1550.pdf.

3. Thoti, Kiran. "Impact of stress on employees working in Andhra Pradesh South Power Distribution Limited." Sumedha Journal of Management, vol. 7, no. 3, CMR College of Engineering & Technology, July 2018, p. 40.

4. Commission on Higher Education. Memorandum Order No. 20, Series of 2011: Policies and Guidelines for the Use of Income, Special Trust Fund and Programs of Receipts and Expenditures of the State Universities and Colleges (SUCs). http:// www. ched. gov. ph/ wp-content/ uploads/ 2013/ 07/CMO-No.20-s2011.pdf. Accessed 23 December 2016.

5. "Impact of corporatization on higher education." https:// asianscientificjournals.com/new/publication/index.php/ljher/article/view/24.

6. Philippine Institute for Development Studies (PIDS). Content Management System. https:// pidswebs. pids. gov.ph/ CDN/PUBLICATIONS/pidsdps1550.pdf.