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Implementing Guidelines on the Release and Utilization of MOOE Allocations of Senior High Schools

May 23, 2016

DepEd Order No. 31, s, 2016

Implementing Guidelines on the Release and Utilization of Maintenance and Other Operating Expenses (MOOE) Allocations of Senior High Schools


Regional Directors
Schools Division Superintendents
Public Secondary School Heads
All Others Concerned

  1. For the information and guidance of all concerned, the Department of Education (DepEd) hereby issues the enclosed Implementing Guidelines on the Release and Utilization of Maintenance and Other Operating Expenses (MOOE) Allocations of Senior High Schools.
  2. For any inquiries on this matter, all concerned may contact the Office of the Assistant Secretary for Finance and Administration, Department of Education (DepEd) Central Office, DepEd Complex, Meralco Avenue, Pasig City through telephone no. (02) 633-7231 or through fax no. (02) 683-0867.
  3. Immediate dissemination of and strict compliance with this Order is directed.


(Enclosure to DepEd Order No. 31, s. 2016)

Implementing Guidelines on the Release of Maintenance and Other Operating Expenses (MOOE) Allocations of Senior High Schools

I. Rationale

1) The Enhanced Basic Education Act of 2013 (Republic Act No. 10533) expands the basic education system from a 10-year to a 13-year program with the addition of one year of Kindergarten and two years of Senior High School (SHS). Starting in June 2016, the Department of Education (DepEd) will mainstream the new level of basic education and enroll Grade 10 completers in public and private SHS that will offer Grade 11 and Grade 12 programs. At least 1.5 million learners are expected to proceed to Grade 11 in School Year (SY) 2016-2017.

2) To enable schools to prepare for and effectively deliver the new curricular program, public SHS are provided allocations for Maintenance and Other Operating Expenses (MOOE). Given that school budgets are driven by enrollment and that data on such will only be available after school opening, the SHS MOOE funds were lodged in the Central Office under Operations of Schools – Secondary Education in the 2016 General Appropriations Act. This budget shall be released in tranches to schools, through their Schools Division Offices (SDO), based on the guidelines provided herein.

3) This DepEd Order aims: i) to provide guidance to all public SHS on the release and the utilization of their school MOOE; ii) to ensure timely and optimal use of school resources, and iii) to institute mechanisms for transparency and accountability.

4) It is based on the following legal bases: (i) Department of Budget and Management (DBM) and DepEd Joint Circular No 2004-1 dated January 01, 2004, entitled “Guidelines on the Direct Release of Funds to DepEd-Regional Offices and Implementing Units”, (ii) Section 10, Republic Act No. 9155 (Governance of Basic Education Act of 2001), which provides that the appropriations intended for the regional and field offices (elementary/secondary schools and Schools Division Offices [SDOs]) TeacherPH are to be allocated directly and released immediately by DBM to the said offices, and (iii) Section 11, Republic Act No. 10533 (Enhanced Basic Education Act of 2013), which provides that appropriations for the operationalization of the enhanced basic education be included in the Department’s budget.

II. Scope of the Policy

5) This DepEd Order provides the mechanisms, procedures, and standards for the release, utilization and liquidation of School MOOE for all public SHS nationwide. This also defines the roles and responsibilities of each level of governance in managing school MOOE.

III. Policy Statement

6) The DepEd hereby establishes the mechanisms, procedures and standards in the utilization of school MOOE that shall be followed strictly by public SHS in the country. This policy also promotes equity, transparency and accountability.

IV. Procedures

A. Release of Funds from the DepEd Central Office

7) The 2016 budget for school MOOE lodged in the Central Office under Operations of Schools – Secondary Education represents the funding requirements of schools offering the SHS Program for seven (7) months or from June to December 2016.

8) The budget for SHS school MOOE was computed based on: (i) a per capita cost derived from the rationalized formula for school MOOE applied to Junior High Schools in 2016, and (ii) on the projected enrolments contained in the Schools Division SHS Implementation Plans as of September 2015.

9) Considering that schools will need to mobilize and prepare for the opening of classes in June and that data on actual enrolment will be available in July, the DepEd shall release an initial tranche of funds in May 2016. This amount corresponds to the estimated funding requirements of schools for three (3) months or from June to August 2016. The list of schools and their first tranche allocations are detailed in Annex A and shall be available on the DepEd website.

10) School MOOE allocations of all public SHS, such as SHS in existing junior high schools, SHS within elementary schools and stand-alone SHS in new sites, regardless if they are implementing units1 or non-implementing units2, shall be released through sub-allotment release order (sub-ARO) to the Schools Division Offices (SDOs).

11) The Central Office shall calibrate and make adjustments on the second downloading of funds once data on actual enrollment for School Year 2016-2017 is available on the Learner Information System (LIS). If actual enrollment in the SHS is higher than estimated, additional funds will be released. If actual enrollment is less than estimated, the next tranche of funds shall be adjusted downward accordingly.

ParticularsTimeline of Fund DownloadAmount to be Downloaded
First TrancheMay 201640% of the budget (based on enrollments indicated in Schools Division SHS Implementation Plans as of September 2015)
Second TrancheAugust 2016Remaining funding requirement adjusted upwards or downwards based on actual SHS enrollment reported in LIS 2016

B. Release of Funds from the Schools Division Office (SDO)

12) Upon receipt of sub-ARO from Central Office, the SDO shall immediately request for issuance of Notice of Cash Allocation from the DBM Regional Office concerned to ensure that cash advances are released promptly to schools.

13) The SDO shall ensure that MOOE allocations of all public SHS are fully downloaded to the respective heads of schools through cash advance using the replenishment method. Said replenishment must be made within 3 working days upon receipt of the liquidation report. The SDO may opt to download the entire first tranche allocation to schools (good for three months) in a single release. However, the SDO shall also ensure that funds released in the first tranche axe fully liquidated prior to releasing additional cash advance from the second tranche.

14) As a general rule and consistent with DepEd Order No. 13, s.2016, SDOs are prohibited from undertaking centralized procurement of any good or service out of school MOOE intended for distribution to schools in kind. In extreme cases, however, such as when the school head or school’s accountable officer cannot receive additional cash advance, the SDOs may procure items using school MOOE, provided that they submit a report to their respective Regional Office (RO) and the Office of the Secretary (OSEC), through the Offices of the Undersecretary for Finance and Administration and Undersecretary of Governance and Operations, explaining or presenting:

14.1. the need for such items;
14.2. the nature, type, quantity, and price of the items listed by the receiving school; and
14.3. the estimated price difference between the SDO and school procurement, and the name of the supplier, including the mode of procurement used.

C. Responsibilities of Public SHS

15) The public SHS shall:

16.1. Prepare and update its monthly physical and financial plan, mindful of adjustments that may arise given the actual number of students that will enroll in SY 2016-2017. TeacherPH Schools should note that second tranche release of school MOOE may be adjusted upwards or downwards, depending on actual enrollment;
16.2. Ensure that its accountable officers have duly applied for bonding with the Bureau of Treasury, Fidelity Bond Division;
16.3. Draw cash advance from its supervising/directing SDO for its MOOE requirements;
16.4. Pursuant to Item H.1.1 of the Manual on Simplified Accounting Guidelines and Procedures for the Use of Non-Implementing Units/Schools, Version 2008, 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. Subsequent cash advances shall be granted only upon receipt of the CDR equivalent to at least 75% of the previous cash advance. It is reiterated, however, that any remaining cash advance at the end of the year must be liquidated in full and unexpended balances refunded;
16.5. Disburse funds in accordance with the existing budgeting, accounting, procurement, and auditing rules and regulations; and

D. Uses of School MOOE

16) To fund activities as identified in the approved SHS Implementation Plan;

17) To support expenses for school-based training and activities that are selected or designed to address the most critical needs that will improve learning outcomes in the school as well as official school meetings, such as but not limited to, Learning Action Cells (LAC) and Continuous Improvement (Cl) activities;

18) To finance expenses pertaining to graduation rites and recognition activities;

19) To procure supplies and other consumables for teachers and students deemed necessary in the conduct of classes;

20) To fund minor repairs of facilities, building and grounds maintenance and the upkeep of the school;

21) To fund rental and minor repairs of tools and equipment deemed necessary for the conduct of teaching and learning activities;

22) To fund rental of facilities for the conduct of classes;

23) To pay for wages of full-time utility, building and grounds maintenance, messsengerial, janitorial, transportation/mobility and security services;

24) To pay for utilities (electricity and water and gas for workshop laboratories) and communication (telephone and Internet connectivity) expenses; and

25) To pay for reproduction of teacher-made activity sheets and other resources that may be downloaded from the Learning Resource Management and Development System (LRMDS) portal, which support differences in learning among students.

26) The school MOOE may be used to procure small capital expenditure items worth PhP15,000 and below, as provided in the new Government Accounting Manual issued by the Commission on Audit. TeacherPH This shall be subject to separate guidelines to be issued by DepEd.

27) In no case shall the school MOOE be used for the procurement of school seats, and teacher’s tables and chairs, except for school furniture which are not procured/provided by the Central, Regional or Schools Division Offices. These may include laboratory and workshop furniture. In no case shall the school MOOE also used for the procurement of textbooks and other instructional materials, even if these expenditures are contained in the SHS Implementation Plan. In this regard, instructional materials includes publications, periodicals, and review materials.

V. Reporting Requirements

28) Consistent with the reporting requirements outlined in DepEd Order No. 13, s. 2016, all SHS principals/school heads/teachers-in-charge shall: received by the school but also details on quantity and description, if such donations are received in kind;

34.2 Outline the intended utilization of the abovementioned funds, including the timing of such utilization of funds or donations in kind, consistent with its SIP, in its report on sources and uses of school funds;
34.3. Ensure that all procurement using school funds conform to the provisions of Republic Act No. 9184. The report on sources and use of school funds shall include the names of suppliers and service providers where there is procurement of goods and services against school funds;
34.4. Post information on the sources, intended use and actual utilization of school funds in the Transparency Board that must be publicly accessible and must be updated every 3 months; and
34.5. Using the School Report Card, formally communicate/present the sources and uses of school funds to the following stakeholders: (a) faculty and staff of the school, (b) the PTCA, (c) the SGC, and (d) local stakeholders who are active partners of the school (i.e. barangay officials, CSO groups, alumni association) in accordance with DepEd Order No. 44, s. 2015.

29) SHS in existing JHS and SHS within elementary schools shall prepare separate financial reports for SHS school MOOE apart from their regular school MOOE allocations. These reports shall be submitted to SDOs at the end of each month. The existing accounting and auditing rules and regulations shall govern the liquidation process.

30) All SDOs shall summarize the monthly status of School MOOE utilization submitted by schools and shall submit the same to their respective ROs every 5th day of the month using the format labeled as Annex B-l. Such reports shall be consolidated by the ROs concerned for subsequent submission to the Central Office thru the Accounting Division-FS using the format labeled as Annex B-2 every 10th day of the month. These forms effectively revise the reporting templates that were issued under DepEd Order No. 13, s.2016.

VI. Penalty Clause

31) The SDO and school heads that violate any provision of this Order shall be dealt with administratively, pursuant to DepEd Order No. 49, s. 2006, the “Revised Rules of Procedure of the Department of Education in Administrative Cases”.

VII. Effectivity

32) This Order shall take effect immediately upon issuance.

34.1. Declare all sources of funding of the school, which include school MOOE allocation, private donations, funding support from local government units (i.e. Special Education Fund) and other government agencies, funding support from local stakeholders such as School Governing Councils (SGC), Parent-Teacher-Community Associations (PTCA), civil society organizations (CSO), 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). The report on sources and uses of school funds shall include not only the amounts of funding.

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  1. DO 30, s. 2016 – Policies and Guidelines on Overtime Services and Payment in the Department of Education
  2. DM 84, s. 2016 – Additional Guidelines on the DepEd National Uniforms for Teaching and Non-Teaching Personnel
  3. DM 82, s. 2016 – 27th National Statistics Month and 13th National Convention on Statistics
  4. DM 81, s. 2016 – 2016 National Literacy Awards (NLA)
  5. DM 80, s. 2016 – 2016 Principals’ Test


Mark Anthony Llego

Mark Anthony Llego, hailing from the Philippines, has made a profound impact on the teaching profession by enabling thousands of teachers nationwide to access crucial information and engage in meaningful exchanges of ideas. His contributions have significantly enhanced their instructional and supervisory capabilities, elevating the quality of education in the Philippines. Beyond his domestic influence, Mark's insightful articles on teaching have garnered international recognition, being featured on highly respected educational websites in the United States. As an agent of change, he continues to empower teachers, both locally and internationally, to excel in their roles and make a lasting difference in the lives of their students, serving as a shining example of the transformative power of knowledge-sharing and collaboration within the teaching community.

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