TL;DR: MOOE, Maintenance and Other Operating Expenses, is the government budget line that funds a Philippine public school's day-to-day operating costs, released directly to individual schools under DepEd Order No. 8, s. 2019 (which superseded DO 13, s. 2016). It can pay for classroom supplies, utilities, minor repairs, and school-based training, but it explicitly cannot pay for textbooks, school furniture, or teachers' tables and chairs. Allocation has historically used the Boncodin Formula, a per-classroom, per-teacher, per-learner calculation, though the 2026 national budget moved toward a simpler per-learner approach. Schools liquidate MOOE monthly and must post fund sources and usage on a public Transparency Board, updated at least every three months under the Anti-Red Tape Act, which is also the funding backdrop behind the DepEd no-collection policy that limits what schools can ask parents to pay for.
Every school year, teachers assigned as MOOE custodians and parents reading a DepEd no-collection policy notice both run into the same underlying question: what is MOOE actually supposed to cover, and why does a public school still need it if basic education is free? This guide explains what Maintenance and Other Operating Expenses funds, what it legally cannot fund, how the per-school allocation and liquidation process works, and the transparency requirements attached to it. Figures and rules below come from DepEd's own MOOE issuances and independent reporting on the 2026 budget changes.
What Is DepEd MOOE?
MOOE is one of three main categories in a public school's government budget, alongside Personnel Services (salaries and benefits) and Capital Outlay (construction, major equipment, and land). School MOOE specifically is the portion released directly to individual public elementary and secondary schools nationwide to fund the operating activities in their approved School Improvement Plan (SIP) and Annual Implementation Plan (AIP), rather than being spent centrally on their behalf.
The current governing issuance is DepEd Order No. 8, s. 2019, which took effect for school year 2019-2020 and consolidated guidance from earlier orders, including DepEd Order No. 13, s. 2016 ("Guidelines on the Direct Release of Maintenance and Other Operating Expenses") and DepEd Order No. 9, s. 2018. The 2019 revision folded several previously separate funding streams, such as special curricular program support and internet connectivity, into the regular school MOOE allocation.
Disclaimer: DepEd periodically issues new MOOE guidelines. Confirm the currently governing DepEd Order and any updates with your school's finance officer or division office before making budget decisions.
What Can School MOOE Be Spent On?
| Category | Examples |
|---|---|
| Learning support | Classroom supplies, consumables, and materials used directly in instruction |
| Facility upkeep | Minor repairs, building and grounds maintenance |
| Utilities and communication | Electricity, water, internet, phone/communication costs |
| Personnel-adjacent services | Wages for janitorial, security, and transportation service contracts |
| School activities | Graduation, moving-up ceremonies, and recognition activities |
| Training | School-based training addressing identified learning needs |
| Small capital items | Semi-expendable items valued at ₱15,000 or less |
These categories are drawn from DepEd Order No. 8, s. 2019 and its predecessor DO 13, s. 2016. In every case, spending must trace back to an activity approved in the school's own School Improvement Plan or Annual Implementation Plan; MOOE is not a discretionary fund a school head can spend outside that plan.
What Can School MOOE NOT Be Spent On?
DepEd Order No. 8, s. 2019 is explicit: "In no case shall the school MOOE be used for the procurement of" school seats, teachers' tables and chairs, textbooks, and other supplementary learning resources, even when those items appear in the school's own Improvement Plan. Instructional materials, including publications, periodicals, and review materials, fall under the same prohibition. Those categories are meant to come from Capital Outlay allocations or centralized/regional procurement instead, not from a school's own operating budget.
School Division Officers and school heads who violate these provisions are, per the order, "dealt with administratively," which underscores that these are not soft guidelines but binding restrictions on how public money can legally be spent at school level.
How Is a School's MOOE Allocation Computed?
For years, DepEd used the Boncodin Formula, named after former Budget Secretary Emilia Boncodin, a component-based calculation combining a fixed base amount with variable amounts tied to a school's number of classrooms, teachers, and enrolled learners. One widely cited version of the formula structure is:
School MOOE = Fixed amount + (rate × number of classrooms) + (rate × number of teachers) + (rate × number of learners)
The specific peso rates in that formula have changed across budget years and are set through DepEd's annual MOOE guidelines rather than fixed permanently in law, so a rate cited from one school year should not be assumed to carry forward unchanged. Reporting on the 2026 national budget indicates DepEd moved away from the older, more complex component-based Boncodin structure toward a simpler per-learner allocation approach, with per-learner MOOE spending for elementary public schools reported near ₱2,792 under the 2026 budget. Because allocation methodology and rates are revised through the annual General Appropriations Act and DepEd's own yearly guidelines, schools should confirm their specific allocation with their division finance office rather than apply a formula from a prior year.
Disclaimer: allocation formulas and per-learner rates change from year to year with the national budget. The figures above describe historical and recently reported approaches, not a number every school should expect to receive.
Who Signs Off on MOOE Disbursements?
Schools that have their own accounting and disbursing staff (called "implementing schools") manage their MOOE cash advances directly through a designated Special Disbursing Officer, typically the school head, who must apply for a fidelity bond given the funds involved. Schools without dedicated financial staff receive cash advances processed through their Schools Division Office instead. Either way, spending still has to trace back to an SIP/AIP-approved activity, and the school head remains accountable for how the funds are used and liquidated.
How Do Schools Liquidate MOOE?
Liquidation is a monthly requirement. Schools submit a Liquidation Report along with supporting documents, commonly including the Cash Disbursement Register (Appendix 43), paid disbursement vouchers, a narrative report, and a summary of taxes withheld, generally due on or before the 5th day of the following month. Category-specific documentation applies depending on the type of expense (goods purchased, building repairs, travel, training, services, or utilities).
A complete and correctly documented liquidation report is what triggers release of the following month's cash advance; incomplete reports get returned for additional documents, which delays the next disbursement rather than triggering an immediate penalty. Before the next cash advance can be released, schools generally need to have liquidated a substantial share, commonly cited as at least 75%, of the previous advance.
What Is the MOOE Transparency Board and Who Sees It?
Public elementary and secondary schools are required to post a Transparency Board displaying the sources and uses of school funds, including MOOE, in a conspicuous, publicly accessible location on campus. This posting requirement is grounded in Republic Act No. 9485, the Anti-Red Tape Act of 2007, and the board must be updated at least every three months.
The figures displayed come from the school's Cash Disbursement Register, which is validated before posting by four signatories: the school principal, the school disbursing officer, the division accountant, and the schools division superintendent. Schools are also expected to formally present their fund sources and uses, through the School Report Card, to stakeholders including faculty, the Parent-Teacher Association, the School Governing Council, and other local partners.
Why Does MOOE Matter to Parents?
Because school MOOE is meant to cover a public school's routine operating costs, DepEd's position is that schools generally should not need to collect additional fees from parents at enrollment for those same operating needs. That's the funding logic behind the DepEd no-collection policy: if MOOE is supposed to already fund utilities, basic supplies, and minor repairs, a school asking parents to pay separately for those same categories is asking for something outside what public basic education is meant to charge for. Understanding what MOOE legally covers, and what it explicitly cannot buy (like textbooks and furniture, which come from a different budget line), helps parents tell the difference between a legitimate voluntary contribution and a fee a public school should not be asking for.
For broader context on how public school funding compares to private school costs, see our guide on private vs. public school cost, and for a wider look at how the Philippine basic education system works, see our parent's guide to education in the Philippines.
Practical Notes for School MOOE Custodians
- Match every expense to an approved SIP/AIP activity. Spending outside the plan is a common cause of liquidation delays and audit findings.
- Never charge textbooks, furniture, or teachers' tables/chairs to MOOE, even if urgently needed; use the correct funding channel instead.
- Submit liquidation reports by the 5th of the following month to avoid delaying the next cash advance.
- Keep the Transparency Board current. A stale board is both a compliance gap and a common source of parent complaints during enrollment season.
- Confirm the current year's allocation approach with your division office, since the formula and rates DepEd uses have changed across recent budget cycles.
Ready to find the right school? Browse schools or explore more guides on Philippine public and private education on SchoolFinderPH.
Sources
- DepEd — School Maintenance and Other Operating Expenses (MOOE), official data page
- DepEd — DepEd Order No. 8, s. 2019 (official PDF)
- TeacherPH — Guidelines on the Direct Release of Maintenance and Other Operating Expenses (MOOE), on DepEd Order No. 13, s. 2016
- TeacherPH — Computation of Public Schools MOOE (Boncodin Formula)
- TeacherPH — Transparency Board: Ensuring Accountability in the Use of School MOOE
- TeacherPH — MOOE Liquidation Report Checklist
- BusinessMirror — DepEd hikes public school MOOE in 2026 budget, shifts to simpler funding formula
- SchoolFinderPH — DepEd No-Collection Policy
- SchoolFinderPH — Private vs. Public School Cost
- SchoolFinderPH — Parent's Guide to Education in the Philippines
