Seminar on Laws and Rules on

Government Expenditures

MAINTENANCE AND OTHER

OPERATING EXPENSES
Module 3
DATE
Commonwealth Avenue, Quezon City

1
Session Overview
This session is about the application of
rules and regulations for Maintenance and
Other Operating Expenses (MOOE).

2
Learning Objectives

➢ Know the different expenses under MOOE other

than Traveling Expenses and Supplies and
Materials Expenses
➢ Know and apply the pertinent laws, rules and
regulations on MOOE

3
 Classification of MOOE Expenses

Training and Awards,

Utility Expenses Communication
Scholarship Expenses Rewards
Expenses and Prizes
and Indemnities

4
 Classification of MOOE Expenses

Survey, Research, Generation, Confidential, Professional

Exploration and Transmission Intelligence and Services
Development and Extraordinary
Expenses Distribution ExpensesS
Expenses

5
 Classification of MOOE Expenses

General Services Repairs and Financial Taxes,

Maintenance Assistance/ Insurance
Subsidy Premiums
and Other Fees

6
 Classification of MOOE Expenses

Labor & Wages Rent/Lease Printing and

Expenses Publication
Expenses

7
 Rules and Regulations to Consider

COA Circular No. 2012-003 dated October 29, 2012

re Updated Guidelines for the Prevention and
Disallowance of Irregular, Unnecessary, Excessive,
Extravagant and Unconscionable Expenditures

COA Circular No. 2012-001 dated June 14, 2012

Prescribing the Revised Guidelines and
Documentary Requirements for Common
Government Transactions
8
Training Expenses
Includes:
Training Fees
(NBC No. 563
dated April 22, 2016)
Honoraria of lecturers
Handouts
Supplies
Materials
Meals and Snacks
All training related Expenses

9
 Training – General Guidelines
Departments, Bureaus Offices or Agencies

Human Resource
Development

To equip appropriate
Training Programs skills and attitudes and
make the personnel
responsive to their
organizational needs

10
 Training – General Guidelines

MORALS

EFFICIENCY &
INTEGRITY RESPONSIVENESS

COURTESY NATIONALISM
& PATRIOTISM

Human Resources Development Training Programs

Measures to Promote
11
 Regulation on the Conduct of Government
Training and Development Programs

Responsibility of the Approve training and

Agency Head development programs
Secure Accreditation
of Programs

In-house Training Ensure minimal expenses

Programs

Collection of Fees

12
 Training

Documentary Requirements
➢ Budget estimates
(Approved: Head of Agency)
➢ Schedule of training
(Approved: Head of Agency)
➢ Same requirements under
Procurement depending on the
nature of expense and the mode of
procurement adopted

13
Documentary Requirements: Training
Honoraria

DBM Budget Circular No. 2007-1

April 23, 2007

Guidelines on the Grant of Honoraria

to Lecturers, Resource Persons
Coordinators and Facilitators

14
Water / Electricity / Cooking Gas / Telephone /
Internet Subscription Expenses

15
Utility Expenses

CONSUMED IN
GOVERNMENT
PROCUREMENT:
OPERATIONS/
DIRECT
PROJECTS
CONTRACTING
(Providers are granted
exclusive franchises to
operate within a
specific territory)

16
 Water/Electricity

Documentary Requirements
➢ Statement of account/bill
➢ Invoice/Official Receipt or machine
validated statement of account/bill
➢ Logbook on the delivery of mineral water
with signature of the one who is in-charge
of receiving the water (in case of mineral
water)

17
 Utility Expenses

Telephone Expenses
Cost of transmitting messages thru telephone
lines (mobile or landlines), faxes, telex and the
like whether prepaid or postpaid

Internet Subscription
Cost of using internet services in government
operations

18
 Telephone/Internet Subscription
Procurement
RA 9184 as amended in GPPB Resolution No. 41-2017 dated December 31,
2017
EXISTING LINES NEW LINES
Contractual agreements Competitive Public
previously entered Bidding

If more than one service provider

Shall be respected operating within the area

But shall be assessed at the Direct Contracting

end of the year
No longer beneficial: If only one service provider
Procuring entity should bid operating within the area
said services

19
Guidelines : Telephone Expenses - Mobile

Privilege or
Entitlement

Guidelines and
Procedures

20
CPCS Circular No. 2021-010 dated Jan. 12, 2022 Grant of
Communication Allowance to Certain Officers and Employees

21
 Telephone/Internet Subscription

Documentary Requirements
➢ Statement of account/bill
➢ Invoice/Official Receipt or machine
validated statement of account
➢ Certification by the agency head or
his authorized representative that all
National Direct Dial, National Assisted
Calls and International Operator
Assisted Calls are official calls.

22
Accounting for Utilities Expenses

Recognized upon
receipt of bill

Reported in the
period to which
these relate

23
Extraordinary & Miscellaneous Expenses

➢ Meetings, seminars, and conferences

➢ Official entertainment
➢ Public relations
➢ Educational, athletic and cultural
activities
➢ Contributions to civic and charitable
institutions

24
Extraordinary & Miscellaneous Expenses

➢ Membership in gov’t associations

➢ Membership in national professional
organizations - accredited by the PRC
➢ Subscription to professional technical
journals and information magazines
➢ Other similar expenses not supported by
the regular budget allocations

25
 Extraordinary & Miscellaneous Expenses

Authorized Officials/Employees to Charge

➢ Head of Bureau Regional Office or Organization of Equivalent
Rank including General Manager of Local Water District in
Categories C and D
➢ Municipal Trial Court Judge, Municipal Circuit Trial Court Judge
and Shari’a Circuit Court Judge
➢ Local Chief Executives

26
 Extraordinary & Miscellaneous Expenses
Authorized Officials/Employees to Charge
➢ Department Secretary
➢ Department Undersecretary
➢ Department Head of Bureau or Organization of Equivalent
Rank, Head of a Department Regional Office including General
Manager of Local Water District in Categories A and B
➢ Assistant Secretary

27
 Extraordinary & Miscellaneous Expenses
Authorized Amount and Guidelines

NGAs GOCCs/GFIs LGUs

Amount authorized: Annual appropriation of
Amount authorized:
Where no such authority the local chief executive:
Derived from General
is granted in the Shall not exceed 2% of
Appropriations Act
corporate charter, it is the actual receipts
(GAA) derived from the basic
derived from the GAA.
real property tax in the
Guidelines: next preceding calendar
Prescribed under COA Guidelines:
year (Section 25(h) of the
CircularNo. 89-300 Prescribed under COA Local Government Code
dated March 21, 1989 Circular No. 2006-001 (RA 7160)
dated January 3, 2006

28
Extraordinary & Miscellaneous Expenses

Documentary Requirements
➢ Invoice Receipts for GOCCs/GFIs
and LGUs
➢ Receipts and or other documents
evidencing disbursement
➢ Non-commutable/reimbursable

29
Extraordinary & Miscellaneous Expenses
Documentary Requirements
➢ In lieu of receipts, certification
executed by the official concerned
that the expense sought to be
reimbursed have been incurred for
any purposes contemplated under
the provisions of the GAA in relation
to or by reasons of his position, in
case of NGAs
➢ Other supporting documents as are
necessary depending on the nature
of expense charged.

30
 Subscription Expenses

Subscription is a payment or promise of payment for consecutive

issues of a magazine, newspaper, book, etc., over a specified period
of time.
31
Subscription Expenses

RULES

Approval of Agency Head

Availability of funds for library materials

32
Advertising Expenses
Documentary Requirements

Statement of Copy of newspaper

Account / Billing clippings evidencing
Statement publication

CD in case of
TV/Radio
commercial

33
Consultancy Services
Consultant
An expert (natural or juridical) not part
of the regular staff of the agency CONSULTANCY
CONTRACT

Agency Consultant • Not found in DBM index of

position titles
• Advisory duties; not
considered government
service
• Limited period of
CONTRACT engagement
• Paid not more than 120% of
Minimum Basic Salary

34
 Consultancy Services

Types of
Consulting
Services

35
 Consultancy Services
Procurement: Guidelines stated in RA
9184
Documentary Requirements
➢ Approved documents indicating
the expected outputs/deliverables
➢ Copy of the Approved Manning
Schedule
➢ Copy of the curriculum vitae
➢ Letter request for payment from
the consultant

36
 Consultancy Services
Procurement: Guidelines stated in
RA 9184
Documentary Requirements
➢ Approved Consultancy
Progress/Final Reports, and /or
output required under the contract
➢ Progress /Final billing
➢ Contract of Infrastructure Projects
subject to Project Management
Consultancy Services

37
 Consultancy Services
Procurement: Guidelines stated
in RA 9184
Documentary Requirements
➢ Number of personnel involved
and their
➢ corresponding rate/salary
➢ Schedule of workplaces of
assignment in stations/visits
➢ Accomplishment Report

38
 Consultancy Services
Procurement: Guidelines stated
in RA 9184
Documentary Requirements
➢ Request for Payment
➢ Contractor’s Bill
➢ Certificate of Acceptance
➢ Proof of remittance of
taxes/contributions to BIR, SSS
and Pag-Ibig

39
Repairs & Maintenance

Transportation Equipment
Cost of repair and maintenance of
motor vehicles:
➢ Trains
➢ Aircrafts
➢ Watercrafts
➢ Other transportation
equipment

40
 Repairs & Maintenance
Documentary Requirements
➢ Pre-repair and
➢ approved detailed plans copy (showing
in sufficient detail the scope of work/
extent of repair to be done)
➢ Latest service bulletin copy, in case of
aircraft
➢ Report of waste materials
➢ Copy of document indicating history of
repair

41
 Repairs & Maintenance

Documentary Requirements
➢ Post-inspection reports
➢ Warranty certificate
➢ Request for payment
➢ Bill/Invoice
➢ Certificate of acceptance
➢ Pre-repair inspection reports

42
Rent/Lease Expenses

Expenses for rental/lease of :

▪ Land
▪ Buildings
▪ Facilities
▪ Equipment
▪ Vehicles
▪ Machineries and the like

43
General Rules and Restrictions on
Rent / Lease Expenses

Notarized
Duly Signed Contract
Agreement and Fixed Terms and Conditions
Computation
Not disadvantageous

44
 Rent / Lease Expenses

COA Circular No. 2009-001 dated Feb. 12, 2009

Restatement with amendment of COA Circular

87-278 and COA Memorandum 2005-027 re:
submission of copy of government contracts,
purchase orders and their supporting documents
to the Commission on Audit

45
General Rules and Restrictions on
Rent / Lease Expenses

Duly Signed Contract Notarized

Agreement and Fixed Terms and
Computation Conditions
Not disadvantageous

The rental cost for the

provision of quarters to
these officials shall
form part of the annual
Should not be for a rental budget
continuous period of
more than fifteen
(15) days

46
General Rules and Restrictions on
Rent / Lease Expenses

Duly Signed Contract Notarized

Agreement and Fixed Terms and
Computation Conditions
Not disadvantageous

The rental cost for the

provision of quarters
to these officials shall
form part of the
Should not be for a annual rental budget
continuous period
of more than fifteen
(15) days

47
Lease of Real Property & Venue Policy
Considerations
➢ Procurement: In accordance w/
RA 9184
➢ More preferred that government
agencies lease publicly-owned
real estate and venue from other
government agencies.

48
Lease of Real Property & Venue Policy
Considerations
➢ Location of the real estate or venue to be
leased(selected by the procuring entity),
taking into consideration:
Prudence
Economy
Suitability of the area in relation to
the mandate of the office, and its
accessibility to its clients

49
Lease of Real Property & Venue Policy
Considerations
➢ Lease of venue: Nature of the event or
the level of security in the proposed
location should also be taken into
account.

➢ Rental rates should be within the

prevailing market rates for lease of real
estate or venue

50
Lease of Real Property & Venue Policy
Considerations
➢ Single advance payment not exceeding
50% of the contract amount is allowed
for contracts entered into by a procuring
entity for the following services where
requirement of down payment is a
standard industry practice:
Hotel and restaurant services
Use of conference/seminar and
exhibit areas Lease of office space

51
 Lease of Real Property & Venue
Policy Considerations
Documentary Requirement
Equipment Rental/Lease Purchase
Contract:
➢ Agency evaluation of equipment
utilization
➢ Pertinent data of area operation
➢ List of prevailing comparable
property within vicinity
➢ Vicinity map
➢ Request for payment
➢ Bill/invoices

52
 Lease of Real Property & Venue
Policy Considerations
Documentary Requirement
Privately-owned office building
➢ Complete copy of the building floor
plans indicating in shaded colors the
rentable space
➢ Certificate of Occupancy of the building
or appropriate approved documents
showing the date the building was
constructed or age of the building
➢ Vicinity map
➢ Request for payment
➢ Bill/Invoices

53
Printing & Publication Expenses

Cost of printing and binding

of manuscripts/documents,
forms, manuals, brochures,
pamphlets, and the like

54
Printing and Publication Expenses
Authorized Government Printers

GPPB Resolution No. 05-2010

A. Forms identified by government

printers
B. Specialized types of accountable
forms

Agency-to-Agency
Agreement
55
Printing and Publication Expenses

May a procuring entity engage the services of a

private printer?

General Rule: NO

Exception:
Provided no RGP can undertake the printing service
due to time and equipment limitations as
determined by the PCOO
(Section 4.3.1- 4.3.2 of GPPB Resolution 05-2010

56
Confidential and Intelligence Expenses

Confidential Incurred by CIVILIAN government

Expenses agencies

Intelligence information gathering

Intelligence of uniformed and military
Expenses personnel and intelligence
practitioners

COA-DBM-DILG-GCG-DND JMC No.

2015-01

57
 Confidential Expenses

⮚ 30% of the POPS Plan of the LGU

⮚ Release and Use is approved by 2/3 of Local Peace and
Order Council
⮚ Certification from local PNP Chief

Confidential and Intelligence

Expenses

⮚ Supported by Certification of Accountable Officer Cash

advance is drawn by bonded SDO or HoA
⮚ CA is limited to the requirements for 3 months

58
Confidential and Intelligence Expenses cannot
be used for:

Salaries and Compensation

Representation, Consultancy
Fees, Entertainment Expenses

Building/ Housing Construction

59
 GENERAL SERVICES

JANITORIAL Includes the cost of janitorial

SERVICES services contracted by the
government

Includes the cost of security

SECURITY services contracted by the
SERVICES government

60
 General Services

Documentary Requirements
1. Complete Bidding Documents
Additional documents under Annex H to K
2.
and P of COA Memo 2005-027
3. Appropriate approved documents

61
General Services
May ongoing contracts for general support
services be extended?

Answer: YES

1. Extension does not exceed 1 Year

2. Original contract in accord with RA 9184
3. Substantial undertaking of procurement
Extension is beyond PE’s control; merely
4.
emergency measure
5. Service provider has no violation
6. Original terms and conditions remain
62
General Services
Multi-Year Contract
(not to exceed 3 Years)

Environment/
Sanitary Invitation to Apply for
Eligibility and to Bid must
contain the:

a. Duration
b. ABC- 1st Year only
c. Bid prices for 3-year
Security Janitorial contract shall be fixed

63
Financial Expenses

Documentary
Requirements

1. Loan
Agreement/MOA
2. Statement of
Account
3. Bank Debit Memo
4. Other Supporting
Documents

64
65
Thank you!