PASIG CITY, Dec.

1 – Department of Education (DepEd) Secretary Leonor Magtolis

Briones encouraged all teachers to report incidences of when and why they had to shell
out personal money for expenses that should have been covered by the Maintenance
and Other Operating Expenses (MOOE).

“You are not compelled na gumastos, to buy things na nasa MOOE na. I suggest you
report na gumastos kayo,” Briones said.

As the Department eyes further increase in MOOE in 2018 to raise the capacity of
schools to provide the necessary supplies, support learning programs, and maintain a
safe and healthy environment for learners and teachers, the Secretary issued the
reminder in light of the concern on out-of-pocket spending of public school teachers.

The fund has long been in place to prevent out-of-pocket expenses of teachers. In 2018,
the MOOE may see an increase of up to P347.723 million, which will also aim to cover
the teachers’ annual physical exam (APE).

Undersecretary for Finance-Budget and Performance Monitoring Annalyn Sevilla backed

the Secretary’s call: “We have learned that there are some teachers who are spending for
the things that their schools need and charge it to their salary, hence, it affects their take
home pay. If you know any teachers who are doing this, please tell them to stop
because we have funds for school needs.”

As highlighted in DepEd Order No. 13, s. 2016 (DO 13), the MOOE annually allocated to
public elementary and secondary schools must be utilized to:

 Procure school supplies and other consumables for teachers and students
deemed necessary in the conduct of classes;
 Pay for reproduction of teacher-made activity sheets or exercises downloaded
from the Learning Resource Management and Development System (LDRMS);
 Fund minor repairs of facilities, building and grounds maintenance, and upkeep
of school;
 Fund rental and minor repairs of tools and equipment deemed necessary for the
conduct of teaching and learning activities;
 Pay for wages of full-time janitorial, transportation/mobility and security services;
 Pay for school utilities (electricity and water) and communication (telephone and
Internet connectivity) expenses;
 Support expenses for school-based training and activities selected or designed to
improve learning outcomes, such as but not limited to, Learning Action Cells
(LAC) and Continuous Improvement (CI) sessions;
 Support special curricular programs (e.g. advocacy, assessment, capacity building,
learning environment, learner development, and research);
 Fund activities as identified in the approved School Improvement Plan (SIP) for
implementation in the current year and as specifically determined in the Annual
Implementation Plan (AIP) of the school;
 Finance expenses pertaining to graduation rites, moving up or closing
ceremonies and recognition activities; and
 Procure small capital expenditure items worth P15,000 and below, as provided in
the new Government Accounting Manual issued by the Commission on Audit
(COA) and subject to separate guidelines to be issued by DepEd.
For instance, Bagong Silangan High School in Quezon City, with a population of 5,211
Grade 7 to 12 students, was allocated with P4.2 million MOOE in 2015. In 2016, the
student population increased to 5,370 and the school was allotted with P5.1 million. In
2017, the number of Junior High School (JHS) learners had a slight decrease at 5,327
and the school was apportioned with P5.2 million MOOE.

With the adoption of a new formula in 2013, the number of learners is no longer the
sole consideration for MOOE. New factors include the number of teachers and
classrooms managed by the school; the number of graduating or completing learners; a
fixed amount corresponding to the basic needs of a school.

A total of P1.2 billion MOOE was allotted to public elementary and secondary schools
(student population of 671,865 excluding SHS) in NCR for 2015; P1.5 billion for 674,187
students (excluding SHS) for 2016; and P1.6 billion for 710,946 learners (excluding SHS)
for 2017. Meanwhile, a total of P1.6 billion MOOE was allocated to public elementary
and secondary schools (student population of 796,294 excluding SHS) in Region 4-A for
2015; P2.0 billion for 820,494 students (excluding SHS) for 2016; and P2.1 billion for
872,213 learners (excluding SHS) for 2017.

To ensure accountability in the use of MOOE, all schools are mandated by Republic Act
9485 (Anti-Red Tape Act of 2007) to post a Transparency Board on MOOE. Furthermore,
DO 13 mandated all principals, schools heads, and teachers-in-charge to:

 Declare all sources of funding (must include amount received by school, quantity,
description, or if such was received in kind) of the school, which include school
MOOE allocation, private donations, funding support from LGUs (i.e. Special
Education Fund), and other government agencies; funding support from local
stakeholders such as School Governing Council (SGC), Parent-Teacher-
Community Associations (PTCA), civil society organizations (CSOs), alumni
associations, revenue from school canteen operations, and other income
generated from the disposal of assets, rent, or collection of fees (as cited in
Special Provisions 1 and 2 under the DepEd budget in the 2016 GAA);
 Outline the intended utilization of the abovementioned funds, including the
timing of such utilization, consistent with its SIP, in its report on sources and uses
of school funds;
 Ensure that all procurement using school funds conform to the provisions of R.A.
9184 (Government Procurement Reform Act);
 Post information on the sources, intended use and actual utilization of school
funds in the Transparency Board that must be publicly accessible and updated
every three months; and
 Using the School Report Card, formally communicate/present the sources and
uses of school funds to the following stakeholders: faculty and staff of the school,
PTCA, SGC, and active partners among local stakeholders (i.e. barangayofficials,
CSOs, alumni association). (DEPED)

https://www.dbm.gov.ph/wp-content/uploads/Issuances/2019/Joint-Circular/COA-DBM-DEPED-JOINT-
CIRCULAR-NO-1-s-2019.pdf
ENHANCED PREPARATION OF SCHOOL
MOOE LIQUIDATION ENSURES PROPER
USE OF FUNDS
AUGUST 5, 2016 ARIAS

The budget is one provision from where the school derives its existence. Not merely to
exist but to function productively. The school’s Maintenance and Other Operating
Expenses (MOOE) is downloaded to the school’s account for the management and
disbursement of the school head. The division office tries to see to it that the annual
allocation of each school is fully released by the end of the year. This is to ensure that the
allocation will be fully utilized by the school for its purpose.
However, there are certain requirements for the continuous release of the school fund to
ensue. Statement 12.3 of the enclosure to DepEd Order No. 13, s. 2016, Implementing
Guidelines on the Direct Release of Maintenance and Other Operating Expenses (MOOE)
Allocation of Schools, states that “Elementary, and Secondary schools without financial
staff shall… submit to the SDO on or before the 5th day of the following month the original
copy of the Cash Disbursement Register (CDR), the paid Disbursement Vouchers (DVs)
and all supporting documents which shall serve as liquidation or replenishment of the
cash advance granted…” 12.4 further states that the same shall “disburse funds in
accordance with the existing budgeting, accounting, procurement, and auditing rules and
regulations.”
Furthermore, on June 10, 2016 the Division Office released Division Memo No. 292, s.
2016, regarding the Revised Disbursement Reports prescribed by COA Circular 2015-
007 dated October 22, 2015, Government Accounting Manual for use of all National
Government Agencies. The said revised reports include the Checks and Advices to Debit
Account Disbursement Record which replaces the Check Disbursement Record; the Cash
in Bank Register which is the new Check Disbursement Register; and the Report of
Checks Issued and Report of Accountability for Accountable Forms.
Through the initiative of the Division Accountant, these forms can be downloaded from
the Division website. These forms come with self-explanatory instructions and step-by-
step guide on how to accomplish each and generate the needed reports.
The Checks and Advices to Debit Account Disbursement Record records the amount
downloaded to the school account and the amount of checks issued. A bank balance is
maintained after each transaction.
All items in the previous Check Disbursement Register can still be found in the new Cash
in Bank Register with only a few improvements added. It is in this report where the
breakdown of payments is detailed. The remaining cash in bank is still monitored here.
The Report of Checks Issued and the Report of Accountability for Accountable Forms are
minimally changed keeping its familiar appearance and contents. The Report of Checks
Issued is simply a list of all checks issued for each particular month. The Report of
Accountability for Accountable Forms on the other hand keeps track of the number of
checks issued and the remaining checks on hand for each month.
All these forms added to the paid Disbursement Vouchers and all supporting documents
comprise the bulk of the liquidation of the cash advance granted to elementary and
secondary schools through their accountable officers, usually the school heads.
This Division has conducted orientations and seminars relating to the process of granting
school MOOE cash advances and the preparation of liquidation reports. The latest of
these was the Document Based Reorientation-Workshop on the Grant and Liquidation of School
MOOE on April 28, 2015. Each component of the school MOOE liquidation was
thoroughly discussed with corresponding illustrations and relevant application workshops.
Adding to that, the computerized disbursement reports downloadable from the Division
website simplifies the preparation of the necessary monthly requirements. Almost all
schools have computers and internet connectivity. Basic knowledge in operating these
equipment is the simplest necessity
Liquidation of cash advance is mandated to be submitted to the SDO on or before the
5th day of the month following the end of each quarter. With all these initiatives by the
Division Office it is in place to expect an enhanced liquidation of school MOOE. Precious
time is saved when papers are in order and complete upon submission.
Timely liquidation is an indication of efficient utilization of government funds which are
made available to schools in support for their programs in helping teachers and students
to perform better.
Furthermore, fast-tracking of the submission of liquidation will ensure earlier releases of
subsequent budgets which will guarantee ample time for procurement of succeeding
batch of supplies and materials needed for effective function of the school.
At any rate, all of these are but cooperative acts to the government’s program “Pera ng
Bayan, Bantayan”.
LORNA BETHEL RAE M. LAPECIROS
Administrative Assistant III

https://www.depedmalaybalay.net/accounting/enhanced-preparation-of-school-mooe-liquidation-
ensures-proper-use-of-funds.html

https://www.deped.gov.ph/school-maintenance-and-other-operating-expenses-mooe/

https://www.rappler.com/move-ph/issues/budget-watch/23435-deped-budget-process-requires-fine-
tuning

The Department of Education (DepEd) is one of the agencies that has improved its
delivery of services due to social accountability. Social accountability means that while
the government must account for its performance and actions, citizens and citizen
organizations must also hold government agencies and officials accountable.

Despite reforms, however, a study conducted by the Philippine Business for Education
(PBEd) and Araullo University reveals that DepEd has yet to improve in specific areas --
particularly in budget preparation and implementation.

Data for the study were gathered through interviews with school and budget officials,
focus group discussions, and examination of budget appropriation, allotment and
obligation documents. Two school districts, Cabanatuan and Muñoz cities, were used
as case studies.

The study examined how budget for the schools’ maintenance and other operating
expenses (MOOE) are crafted and used. In addition, the study also looks at how the
MOOE is complemented by the Special Education Fund (SEF) allocated to local
districts. There are 3 parameters for which the budget process and the execution were
assessed: participation, effectiveness, and efficiency.

In 2010, the DepEd adopted a new scheme for computing MOOE allocation, also
referred to as the “Boncodin formula,” as it was introduced by former Department of
Budget and Management (DBM) secretary, Emilia Boncodin. The study reveals that this
improvement is more reflective and responsive to the schools’ needs.

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But students need to get the consent of their parents or guardians to participate

In terms of releasing the funds to schools, prior to 2011, the schedule has been
unpredictable. However, in 2011, funds have been released on a monthly basis. This
allowed the principals to directly address the needs of the students and the
requirements of the schools.

Little participation of teachers, parents

However, the study also found out that the participation of teachers and parents has
been negligible as reflected in the budget. They are consulted to identify the needs of
the school, but these may not be prioritized. The study recommends increased
participation of civil society so the budget becomes more responsive to needs.

In the two case studies, the SEF is used for MOOE and for payment of teaching and
non-teaching personnel. The study argues that while SEF can be used for MOOE, the
guidelines and Commission on Audit (COA) rules are not clear if it is allowed for
personnel use.

The study recommends better monitoring systems in the implementation of the MOOE.
In addition, it also recommends better guidelines for the SEF to supplement the MOOE,
as well as improved harmonization of funds from MOOE and SEF. This way, the
national budget is efficiently allocated among local districts.

Finally, in the light of reforms that DBM is initiating in 2012 onwards, the study
recommends that DepEd institute new policies and processes to improve the releases
and use of the MOOE and SEF. – Rappler.com

This story is published in partnership with the Philippine Business for Education. To
know more about the study, please find the full report below.