MIJRDV1I60003

Multidisciplinary International
Journal of Research and Development

Volume: 01 | Issue: 06 | 2022 - Open Access - Website: www.mijrd.com - ISSN: 2583-0406
Preparation and Utilization of Maintenance and

Other Operating Expenses (MOOE) by School Heads
Jose Mari M. Viernes
Aliaga National High School, Philippines
Abstract— The study aims to determine the challenges encountered by the School Heads in the
Preparation and Utilization of Maintenance and Other Operating Expenses (MOOE). The school budget is
one of the most powerful tools to promote and strengthen school-based management and accountability.
Maintenance and other operating expenses (MOOE) fund is the school heads' budget in operating schools
in more productive and functional ways. The researcher utilized a descriptive research design through
quantitative analysis and used the total enumeration of the respondents in the Division of Nueva Ecija. In
preparation and utilization of MOOE, the average weighted mean on the assessments made of different
groups of respondents in non-autonomous secondary schools in CD I was 3.18 verbally described as
“Exceeds”. There were no variables existed or no significant relationship found on the profile of the school
heads on the preparation and actualization of MOOE funds based on AIP and SIP. With regards to the
actualization of MOOE Funds based on SIP and AIP when grouped according to respondents shows that
principal and SSG (Md=.72526, p< 0.05), principal and PTA (MD=.49474, p< 0.05), teacher and SSG
(MD=.39290, p< 0.05). This meant that the four groups of respondents significantly differed in terms of
evaluation on the actualization of MOOE Funds. The hypothesis of no significant variation is rejected. Based
on the findings of the study, the researcher may propose development plan towards the enhancement of
SIP and AIP.
Keywords— AIP, Challenges, MOEE Budget, Preparation, SIP, Utilization.
INTRODUCTION
The school budget is one of the most powerful tools to promote and strengthen school-based management
and accountability. The idea is to put a premium in school management's financial aspect and create a fully
aware school to the financial stability (Department of Education Order no. 13 series of 2016).
The order is strongly committed to support the schools, teachers, and students by enhancing teaching and
services standards. It continues to make more resources available to schools to support them in enabling
students' eagerness to learn and for the teachers to perform better.
The amended financial management reforms on transferring the responsibility and accountability to School
Head in managing school finances for operations in developing the school and its facilities and other
necessities that support learning programs and help maintain a safe, healthy and conducive environment
for students and teachers.
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Maintenance and other operating expenses (MOOE) fund is the school heads' budget in operating schools
in more productive and functional ways. There are different things to consider in budgeting for the
continuous development of school facilities and services most beneficial to the learners. Hence, it is very
challenging to all school heads to budget and fund school projects, especially if there is only a limited school
budget. Some use their own money to sustain their needs and provide quality education. Furthermore, the
utilization of MOOE took into consideration the annual improvement plan (AIP) made by the school head,
however, meeting the minimum set standard is difficult and always depend on the availability of the budget.
Thus, to interpret the said statement, the main goal of giving MOOE funds is to achieve programs and plans
in the AIP in terms of utility expenses, security and maintenance, training and travel expenses, supply
expenses, repair and maintenance, and other expenses to uplift students' performance
The Department of Education (DepEd) and the Department of Budget and Management (DBM)
collaboratively set guidelines for the implementation of the release of the Maintenance and Other Operating
Expenses (MOOE) fund. MOOE is the allocated funds for public elementary and secondary schools that can
be spent on activities and necessities that support the learning programs and help maintain a safe and
healthy environment in schools. It must be utilized to procure school supplies and other consumables
necessary in the conduct of classes, pay for the reproduction of teacher-made exercises sheet, for school
utilities, communication bill and other expenses (electric, water, and internet expenses).
These training activities should address the school's most critical needs to improve the learning outcomes,
security and janitorial services, minor school repairs, and other necessary expenses for teaching and
learning activities. With the adaption of the new formula of School Maintenance and Other Operating
Expenses (MOOE) starting 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, and a fixed amount corresponding to the basic needs. In addition,
starting 2016, financial assistance previously released separately for specials programs or activities is now
incorporated in the budget for schools' operations.
It is the school head's job and duties to ensure that all their plans and programs are attainable and must be
included in the MOOE budget. In this respect, the school heads must have the capacity to manage the school
finances to achieve educational goals and objectives.
As observed by the researcher school heads utilize 51% to 75% of MOOE fund for each activity/program
indicated in the AIP. They always prioritize the security and utilities services but were challenged by
complaints and misconceptions about spending and allocating the MOOE. Transparency, accountability and
maintain harmonious relationships are the key to ensure collaboration and teamwork for the betterment
of the school and learners as well, (Abellion et. al, 2020).

Despite the school head's effective planning in implementing the school plans, it is challenging for them to
budget due to many factors like in budgeting the training expenses of faculty and staff, utility expenses,
travel expenses, repair and maintenance, procurement expenses, and other expenses that the school head
needs to prioritize.
It is on these premises that the researcher wanted to conduct this study to determine how the school heads
prepare and utilize their MOOE budget.
Specifically, this study aimed to analyze the preparation and actualization of the Maintenance and Other
Operating Expenses (MOOE) fund in achieving the school Annual Improvement Plan (AIP) and School
Improvement Plan (SIP). This study was also proposed so that the readers would become aware of this
particular fund as the government's provision to the Department of Education and enable them to fully
understand its implementation and how it is allocated to particular school expenditures. This study would
also describe the challenges and the actions to be taken with the challenges being encountered that would
bring notions that could enhance the performance of the persons concerned on their school MOOE funds
utilization.
II. OBJECTIVES OF THE STUDY

The main objectives of the study were to determine the challenges encountered by School Heads in
preparation and utilization of Maintenance and Other Operating Expenses (MOOE).
1. Specifically, it sought to answer the following questions:

2. How may the preparation and realization of the MOOE budget allocations be described?
3. Is there significant variation on the preparation of MOOE funds based on School Improvement Plan
(SIP) and Annual Improvement Plan (AIP) when grouped according to respondents?
4. What intervention program can be proposed based on the findings of the study?
Hypothesis of the Study

There is no significant variation on the preparation/actualization of MOOE Funds based on SIP and AIP
when grouped according to respondents.
III. RESEARCH METHOD

The researcher utilized a descriptive research design through quantitative analysis. The researcher used
the total enumeration of the respondents in the Division of Nueva Ecija.
As cited in Comighud & Arevalo (2020), it is a research design that deals with the present condition. The
research study through inferential studies and or quantitative analysis used to develop, test, and evaluate

research instruments and methods. It explores phenomena in real-life situations and uses a survey method.
Common data gathering methods used are questionnaires and interviews.
This research method helped the researcher analyze how the School Head/ Principal prepare, actualize and
utilize the MOOE budget based on the AIP.
The study was conducted in all non-autonomous public secondary schools in Congressional District 1 in
the Nueva Ecija. The respondents are composed 1991 respondents composed of 19 School Heads, 19 LGU,
19 SSG, 19 PTA and 123 teachers using purposive sampling technique.
And the researcher was personally developed survey questionnaire and interview guide questions to
gathered the needed data. Additionally, all data gathered were tabulated, organized and statistically treated
using SPSS tool analysis.
IV. RESULTS AND DISCUSSION

1. Preparation and Realization of the MOOE Budget Allocations
Table 1: Assessment Made by the Respondents in the Preparation and Realization of MOOE Budget
Allocations
Respondents N Weighted Mean Verbal Description
School Head/Principal 19 3.58 Substantially Exceeds
Teacher 123 3.25 Substantially Exceeds
PTA 19 3.08 Exceeds
Brgy. Official 19 3.13 Exceeds
SSG 19 2.85 Exceeds
Over all weighted 3.18 Exceeds or “The Program exceeds the standards”
mean
Legend:
Range Verbal Description Verbal Interpretation
4- 3.25 - 4.00 - Substantially Exceeds - The Program substantially exceeds the standard
3- 2.50 – 3.24 - Exceeds -The Program exceeds the standards
2- 1.75 – 2.49 - Met - The Program meets the standard
1- 1.00 – 1.74 - Not Meet -The program does not meet the standard/noncompliance
As shown in the table, the average weighted mean on the assessments made of different groups of
respondents in non-autonomous secondary schools in CD I was 3.18 verbally described as “Exceeds”.
The assessment made by the school heads got the highest weighted mean of 3.58 verbally described as
“Substantially Exceeds”, followed by the assessment made by teachers with weighted mean of 3.25 also
verbally described as “Substantially Exceeds”, “the assessment made by the Barangay Officials got ratings
the of 3.13, PTA got 3.08 and the SSG had ratings of 2.85 and both were verbally described as “Exceeds”.

The results meant that School Heads and teachers had the same assessments on the actualization of MOOE
funds while PTA Presidents, Barangay Officials and SSG Presidents had the same assessments. The
assessment made by different group of respondents revealed that the School Heads fund disbursement was
in accordance with the existing budgeting, accounting, procurement and auditing rules and regulations and
saw to it that all budgets and expenses were completely documented and properly liquidated.
As stated in DepEd Order No. 13, s. 2016, the Principals/School Heads/Teachers-in-charge shall declare all
sources of funding of the schools, which includes 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 Council (SGC), Parent-Teacher-Community
Association (PTCA), civil society organization (CSO), alumni association, revenue from the 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 received by the school but also details on
quantity and description, if such donations are received in kind.
2. Variation on the Preparation of MOOE funds based on School Improvement Plan (SIP) and Annual
Improvement Plan (AIP) when grouped according to respondents
Table 2: Significant variation on the preparation/actualization of MOOE Funds based on SIP and
AIP when grouped according to respondent
ANOVA
Sum of Df Mean F p Verbal
Squares Square ratio value Description
Preparation Between Groups 5.84 4 1.46 7.51 0.000 Significant
Within Groups 37.711 194 0.194
Total 43.55 198
Actualization Between Groups 5.594 4 1.399 5.93 0.000 Significant
Within Groups 45.75 194 0.236
Total 51.344 198
*Significant at the 0.05 level
*Significant at the 0.05 level
Multiple Comparisons
Scheffe
95% Confidence Interval
Dependent (I) Resp (J) Resp Mean Std. Sig. Lower Upper
Variable Difference (I-J) Error Bound Bound
Prep Principal Teachers 0.27845 0.10868 0.165 -0.0596 0.6165
Brgy. .49789* 0.14304 0.019 0.053 0.9428
Official
SSG .57526* 0.14304 0.004 0.1304 1.0201
PTA .63526* 0.14304 0.001 0.1904 1.0801
Teachers Principal -0.27845 0.10868 0.165 -0.6165 0.0596
Brgy. 0.21944 0.10868 0.399 - 0.5574 Brgy.
Official 0.1186 Official

SSG 0.29681 0.10868 0.118 - 0.6348 SSG

0.0412
PTA .35681* 0.10868 0.032 0.0188 0.6948 PTA
Actual Principal Teachers 0.33236 0.1197 0.107 -0.0399 0.7047
Brgy. 0.45263 0.15756 0.087 -0.0374 0.9426
Official
SSG .72526* 0.15756 0.000 0.2352 1.2153
PTA .49474* 0.15756 0.046 0.0047 0.9848
Teachers Principal -0.33236 0.1197 0.107 -0.7047 0.0399
Brgy. 0.12027 0.1197 0.908 -0.252 0.4926
Official
SSG .39290* 0.1197 0.032 0.0206 0.7652
PTA 0.16237 0.1197 0.765 -0.2099 0.5347
*. The mean difference is significant at the 0.05 level.
This meant that the four groups of respondents significantly differed in terms of evaluation on the
preparation of MOOE Funds Based on SIP and AIP. The hypothesis of no significant variation is rejected.
The variations of respondents significantly differed in evaluations on preparation because each and every
one had different points of view regarding the implementation of MOOE. Some had clear idea about the
MOOE funds but others had limited. School Heads and teachers understood the whole coverage of MOOE
funds guidelines and policy while Barangay officials and SSG officers only based their knowledge on what
they know of MOOE funds.
With regards to the actualization of MOOE Funds based on SIP and AIP when grouped according to
respondents shows that principal and SSG (Md=.72526, p< 0.05), principal and PTA (MD=.49474, p< 0.05),
teacher and SSG (MD=.39290,p< 0.05). This meant that the four groups of respondents significantly differed
in terms of evaluation on the actualization of MOOE Funds Based on SIP and AIP. The hypothesis of no
significant variation is rejected.
Same with the preparation of MOOE, in actualization the group of respondents significantly differed in
terms of evaluation because their own perceptions and own understanding on how the MOOE funds were
utilized. Some of the respondents had no or had limited idea on how MOOE were utilized. Some did not
know that utilization of MOOE fund was subjected to auditing protocols.
There are set guidelines and standards to be followed, that the School Heads and teachers only are aware.
According to Manasan et. al (2011), stated that lack of information is of particular concern for lower-level
DepEd officials.
School heads and district officials have stated that they do not know what schools are receiving support,
have no access to district local school board budget reports, and are often not notified when requests have
been approved or denied.

The attached certificate of merit/recognition of School Heads in non-autonomous secondary public schools
in CD 1 show their hard-work, dedication, consistency and accountability in preparation and actualization
of MOOE funds based on SIP and AIP.
Based on the interview of the researcher on one of the School Heads one of the most challenging part in the
preparation and actualization of MOOE funds based on SIP and AIP is the limited budget allocated annually.
As school head, she quoted “I need to use my own money from own my pocket just to sustain the needs of
the school especially the top priorities for the benefits of the learners. I need also to tap stakeholders to
support or give donations and immediate actions for the safety and healthy environment for students.
Sixty percent of principals reported receiving comments and complaints from the PTA (World Bank Group
& Australian Aid, 2016). Also, approximately 85 percent of elementary and high school PTAs reported
participating in SIP development and monitoring.
However, their role in planning may be more limited than that response suggests. The primary type of
support provided by PTAs is in the form of additional financing and labor—"only 32 percent of elementary
schools and 41 percent of high school PTAs mentioned planning as one of their main areas of support"
(ibid). As such, decisions on the use of school funds are largely confined to the school principal and teachers.
In 2014, more than 80 percent of elementary schools reported that teachers had been consulted about how
to use the schools' MOOE funds, but PTAs had input in fewer than 30 percent of schools (World Bank Group
& Australian Aid, 2016). This is not surprising since DepEd's guidelines explicitly prohibit PTAs from
"interfering in schools' administrative management."
According to Dr. Johnny P. Mayor, many problems hindered many of the school heads from utilizing and
liquidating the monthly MOOE and hence, they were not able to get the allocated budget every year. Here
are some of the many problems that hindered monthly liquidation: (1) Lack of canvassers wherein the
administrator most of the time do the canvassing of the materials to be bought from various stores.; (2)
Lack of means of transportation wherein the administrator sometimes use his/her own vehicle and spend
his/her own money.; (3) Lack of carpenters or workers to do repairs.; (4) Insufficient MOOE funds for
repair. Due to expensive electricity and water bills, the MOOE fund is so limited that it is not enough to
provide for repairs and for other necessary improvements to the school.; (5) Delay of releasing of checks;
and (6) Lack of time due to many other duties of the administrator.
3. Intervention Program
Based on the findings of this study, the researcher proposed development plan that could help MOOE funds
budget officers, School Head/Principal to serve as guide and basis for them to continuously develop and
enhance their preparation and actualization of MOOE funds.

CONCLUSIONS
Based on the findings of the study the following conclusions were drawn:
There were no variables existed or no significant relationship found on the profile of the school heads on
the preparation and actualization of MOOE funds based on AIP and SIP. The results noted that regardless
of the socio-demographic status of the School head/principal can perform their duties and responsibilities
in the school where she or he assigned.
On the preparation and actualization of MOOE fund based on SIP and AIP, the grouped of respondents
significantly differed in terms of evaluations because they have different points of view and perceptions
regarding the MOOE budget allocations.
The researcher proposed a development plan to help improve the preparation, actualization and utilization
of MOOE funds based on SIP and AIP.
RECOMMENDATIONS
The following are the recommendations of the study based on the conclusions:
1. Strong relationship with all members of the schools, LGU, SSG, parents, teachers, stakeholders and
students be promoted for the improvement and development not only school but learners’ safety
and educational needs. Assure that the plans and programs funded by MOOE budgets based on AIP
and SIP will be properly implemented. Ask assistance from other members of the school
community and stakeholders. The LGU, SSG, PTA and stakeholders should be more vigilant in the
preparation, actualization and utilization of MOOE funds. Collaboration and teamwork should be
practiced at all times for the common good. Quality and relevance of the project for the students’
need and learning process should be considered to properly utilize the MOOE funds.
2. Since the group of respondents have different points of view in the preparation and actualization
of MOOE funds, update them on the progress of implementation of programs and activities funded
by MOOE based on SIP and AIP to gain strong relationship and commitments of all members of the
school community even the stakeholders. The learners should support all the activities and
projects of the school. Show leadership and engagement in all school activities that could help
improve learning environment. And to the community, make themselves a part of growing
institutions who produce skillfull and competitive students. They should provide supports not
only physically, mentally, spiritually but also financially for the continuous development of schools
and bringing quality standard of education and help maintain a safety and healthy learning
environment.

3. The teacher-representative in preparation and actualization of MOOE funds may give updates for
all their needs like trainings and seminars, teaching and learning supplies needed, all minor
classroom related repairs so that they can be funded ahead of time.
4. The proposed enhancement plan may be used as guidelines and basis for all future trainings and
seminars dealing with preparation and actualization of MOOE funds.
REFERENCES
[1] Abellion, R., Corpuz, T. & Soriano, B. (2020). The Utilization of Maintenance and Other Operating
Expenses (MOOE) Funds Allocation in Annual Improvement Plan (AIP) of Non-Autonomous
Schools
[2] DepEd Order 12 s. 2016 otherwise known as ―Implementing Guidelines on the Direct Release and
Use of MOOE allocations of the schools. Retrieved from www.deped.gov.ph
[3] DepED Order no. 008 s. 2019. Implementing Guidelines on the Direct Release, Use, Monitorinng
and Reporting of Maintenance and Other Operating Expenses (MOOE) Allocation of Schools,
Including Other Funds Managed by Schools.
[4] DepEd Order No. 12, s. 2014 entitled Implementing Guidelines on the direct release of MOOE for
School. Retrieved from www.deped.gov.ph
[5] Manasan, Rosario G., Alicia B. Celestino, & Janet S. Cuenca. (2011). Mobilizing LGU support for basic
education: Focus on the Special Education Fund. Discussion Paper Series (No. 2011-07). Philippine
Institute for Development Studies: Makati City, Philippines.
[6] Mayor, J.P. (2019). Overcoming challenges in liquidation of MOOE of school heads in public schools.
An Opinion. Retrieved from: Overcoming challenges in liquidation of MOOE of school heads in
public schools | The Freeman (philstar.com)
[7] World Bank Group & Australian Aid. (2016a). Increasing investment to improve basic education
outcomes in the Philippines. Philippines Education Note (No. 1).
[8] World Bank Group & Australian Aid (2016b). Building better learning environments in the
Philippines. Philippines Education Note (no. 4).
[9] World Bank Group & Australian Aid (2016c). Assessing school-based management in the
Philippines. Philippines Education Note (no. 5).
[10] World Bank Group & Australian Aid (2016d). Providing schools with enough resources to deliver
quality education in the Philippines. Philippines Education Note (no. 6)

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Multidisciplinary International

Journal of Research and Development

Preparation and Utilization of Maintenance and

Keywords— AIP, Challenges, MOEE Budget, Preparation, SIP, Utilization.

All rights are reserved by www.mijrd.com 26

All rights are reserved by www.mijrd.com 27

II. OBJECTIVES OF THE STUDY

1. Specifically, it sought to answer the following questions:

Hypothesis of the Study

III. RESEARCH METHOD

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IV. RESULTS AND DISCUSSION

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SSG 0.29681 0.10868 0.118 - 0.6348 SSG

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