SOURCE: DepEd Order No. 8, s. 2019

The school budget is one of the most powerful tools to promote and strengthen the school based management and accountability. This is why apart from curricular reforms and capacity building programs, the Department of Education (DepEd) continues to make more resources available to schools to support them in enabling students to perform better. With the adoption of the new school MOOE formula starting 2013, and the passage of Republic Act No. 10533 or the Enhanced Basic Education Act of 2013 expanding the basic education system from a 10-year to 13-year program with the addition of one year of Kindergarten and two years of Senior High School (SHS), the DepEd moves closer to rationalizing the programming of school budgets. Previously, the school MOOE budget was computed solely based on enrollment given a per capita cost. With the new formula, other factors affecting school operations are considered, such as the number of teachers and classrooms managed by the school, the number of graduating or completing students, and a fixed amount corresponding to basic needs of a school. In addition to this, starting 2016, financial assistance previously released separately for special programs or activities are now incorporated in the budget for the operations of schools. The funds that will no longer be downloaded from the Central Office and are now part of the regular school MOOE budget include: a) financial assistance to support special curricular programs in Science (Special Science Elementary Schools, Regional Science High Schools, Science, Technology and Engineering Program in High Schools), Sports (High Schools with Special Programs in Sports), Arts (High Schools with Special Programs in Arts) and Special Education; b) DepEd Internet Connectivity Program; c) Gulayan sa Paaralan; and d) School Based Management Grants. The Department continues to develop and institute policies and reforms that would deepen the decentralization of education management.


School MOOE, as defined under the Definition of Terms per Section IV.4 of this DO, shall also be used for the following, among others, subject to availability of funds and prioritization of mandatory expense items; and must be in accordance with the existing budgeting, accounting, procurement and auditing rules and regulations:

1) To 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) which shall follow the calendar year format (Annex 1) of the school;

2) To finance expenses pertaining to graduation rites, moving up or closing ceremonies and recognition activities;

3) To fund supplies, rental and minor repair of tools and equipment and other consumables for teachers and students deemed necessary in the conduct of classes and learning activities;

4) To fund minor repairs of facilities, building and grounds maintenance necessary for the upkeep of the school (as defined in DepEd Order No. 1, s. 2017 entitled Guidelines on the National Inventory of DepEd Public School Buildings for School Year 2016-2017);

5) To procure semi-expendable property items worth less than Phpl5,000.00 (including Technical-Vocational-Livelihood and science classes consumables) as provided in the Government Accounting Manual (GAM) issued by the Commission on Audit; and

6) In no case shall the school MOOE be used for the procurement of:

6.1. School seats, and teacher’s tables and chairs except for school furniture which are not procured/provided by the Central, Regional or School Division Offices. These may include laboratory and workshop furniture;

6.2. Textbooks; and

6.3. Other supplementary learning resources (SLRs) which include publications, periodicals and review materials.