GUIMARAS STATE COLLEGE

GRADUATE SCHOOL

CHAPTER I

INTRODUCTION

Background of the Study

The Department of Education (DepEd) on February 23, 2018 issued the

DepEd Order No. 09, s. 2018, “Implementing Guidelines on the Release and

Utilization of Maintenance and Other Operating Expenses (MOOE) Allocations of

Senior High Schools” which aims to a) provide guidance to all public SHS on the

release and utilization of their school MOOE; b) ensure timely and optimal use of

school resources; and c) institute mechanisms for transparency and

accountability.

The said 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. The SHS MOOE funds were

lodged in the Central Office under Operations of Schools - Senior High School in

the FYs 2016, 2017, and 2018 General Appropriations Act (GAA). This budget

shall be released to schools, through their Schools Division Offices (SDOs).

(DepEd Order No. 09 s. 2018)

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GRADUATE SCHOOL

The legal bases of the Maintenance and Operating Expenses lies on the

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; 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 or

secondary schools and schools division offices) are to be allocated directly and

released immediately by the DBM to the said offices. These are used to pay

expenses for utilities (e.g. electric and water expenses); To procure school

supplies necessary in classroom teaching; To pay salaries for janitorial and

security services; and To use for other mandatory expenditures except for the

procurement of textbooks and other instructional materials, and school furniture

and equipment. (Escober, 2014)

MOOE Allocation is one of the reforms to continuously upgrade the

teaching standards and learning outcomes of the Department of Education by

the transference of responsibilities on the schools to manage their operation and

resources for school development so as to develop an environment that

facilitates continuous improvement. Since financial accountability in the school

funds has always been an issue in many schools, school budget preparation and

implementation by the accountable personnel need to be improved to ensure

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transparency and accountability in the utilization of school funds. (Ochada and

Gempes, 2018)

The Senior High School Administrative Section is tasked to prepare a

liquidation report every quarter for the MOOE allocated by the Schools Division

Office, however, they find difficulties in compiling the reports and issuing

Disbursement Vouchers for the fact that the Schools Employees and Personnel

has only a little knowledge of the use and the qualified disbursements

enumerated in the DepEd Order. The mechanisms, procedures, and standards in

the utilization of school MOOE must be followed strictly by public SHS in the

country in order to promote equity, transparency, and accountability.

The researcher, being an Administrative Officer II of the Department of

Education - Senior High School, felt that there is an extreme need to look into

this case for the easier flow of transactions and more efficient preparation of

reports, hence, this study will be conducted.

Statement of the Problem

This study aims to determine the utilization and practices of Senior High

School (SHS) heads and personnel on Maintenance and Other Operating

Expenses (MOOE) allocation in the Fifth District of Iloilo, Philippines for the

Calendar Year 2019.

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Specifically this study will answer the following questions:

1. What is the personal profile of respondents in terms of position in the

school, length of service, trainings and seminars attended, and

involvement in the disbursement of fund?

2. What is the level of utilization of MOOE in terms of Traveling Expense,

Supplies & Materials Expense, Utility & Communication Expense, General

Services Expense, Repairs & Maintenance Expense, and Other MOOE and

when they are taken as a whole and when classified according to position

in the school, length of service, trainings and seminars attended, and

involvement in the disbursement of fund?

3. What is the level of practices of MOOE in terms of the procedures of

the release of funds from the Schools Division Office (SDO),

responsibilities and reporting requirements of Public SHS, and uses of

MOOE and when they are taken as a whole and when classified according

to position in the school, length of service, trainings and seminars

attended, and involvement in the disbursement of fund?

4. Are there significant differences in the level of utilization of MOOE in

terms of Traveling Expense, Supplies & Materials Expense, Utility &

Communication Expense, General Services Expense, Repairs &

Maintenance Expense, and Other MOOE and when taken as a whole and
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GRADUATE SCHOOL

when classified according to position in the school, length of service,

trainings and seminars attended, and involvement in the disbursement of

fund?

5. Are there significant differences in the level of practices of MOOE in

terms of the procedures of the release of funds from the Schools Division

Office (SDO), responsibilities and reporting requirements of Public SHS,

and uses of MOOE and when taken as a whole and when classified

according to position in the school, length of service, trainings and

seminars attended, and involvement in the disbursement of fund?

6. Do variables position in the school, length of service, trainings and

seminars attended, and involvement in the disbursement of fund

significantly influence in the utilization of MOOE?

7. Do variables position in the school, length of service, trainings and

seminars attended, and involvement in the disbursement of fund

significantly influence in the practices of MOOE?

Null Hypotheses

1. There are no significant differences in the level of utilization of MOOE

in terms of Traveling Expense, Supplies & Materials Expense, Utility &

Communication Expense, General Services Expense, Repairs & Maintenance

Expense, and Other MOOE and when taken as a whole and when classified
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GRADUATE SCHOOL

according to position in the school, length of service, trainings and seminars

attended, and involvement in the disbursement of fund

2. There are no significant differences in the level of practices of MOOE in

terms of the procedures of the release of funds from the Schools Division Office

(SDO), responsibilities and reporting requirements of Public SHS, and uses of

MOOE and when taken as a whole and when classified according to position in

the school, length of service, trainings and seminars attended, and involvement

in the disbursement of fund.

3. The variables position in the school, length of service, trainings and

seminars attended, and involvement in the disbursement of fund have no

significant influence in the utilization of MOOE.

4. The variables position in the school, length of service, trainings and

seminars attended, and involvement in the disbursement of fund have no

significant influence in the practices of MOOE?

Theoretical Framework

This study is based on the Department of Education (DepEd) Order No.

09, s. 2018, dated February 23, 2018 which is the Implementing Guidelines on

the Release and Utilization of Maintenance and Other Operating Expenses

(MOOE) Allocations of Senior High Schools. This specific order covers the release
 GUIMARAS STATE COLLEGE
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and uses of Maintenance and Other Operating Expenses, and the responsibilities

of the public Senior High School.

This study is also anchored to Knight’s Organizations’ Systems Theory

model for school financial management ― a “system” composed of interrelated

elements necessary for the successful operation of the school. In this setting, the

elements needed to achieve the school objectives are the school administration,

teachers, parents, students and all other resources. (Knight, 1993) Just as

pointed out by Knight, these elements are interdependent. Among these, school

finance is one of the major interactive elements within a school. Accordingly,

financial resource is an important key input in school system since it provides the

means of running all the affairs of an institution or organization and acquire all

the resources needed to achieve institutional objectives. In this respect, the

school heads and the committee members play a major role in the management

of funds in public schools. (Ochada and Gempes, 2018)

Due to these theories’ applicability to the present study, this research will

try to determine the level of awareness of Senior High School personnel on the

utilization of Senior High School Maintenance and Other Operating Expenses

Allocation.
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Conceptual Framework

The dependent variables of this study are the level of utilization of MOOE

and the level of practices of MOOE of senior high school heads and personnel. It

is believed that these dependent variables are influenced by the independent

variables with regards to the respondent’s position in the school: “School

Head/Department Head”, “Administrative Personnel”, “Committee Member (Bids

and Awards Committee/Inspectorate Team).”

The respondent’s length of service is also considered as a variable on the

premise that the longer one served, the more likely one to have a huge amount

of knowledge and understanding on the matters at hand. In this case, the longer

the personnel have served, the more likely that they are aware of the rules and

guidelines in the utilization of Maintenance and Other Operating Expenses

Allocation. Length of service in the public office is categorized as: “1-3 years”,

“4-10 years” “11 years and above”. The same applies if the personnel have

attended relevant trainings and seminar regarding the topic. Attendance to

seminars will be classified as, “Attended” and “Not Attended”. Involvement in

Disbursement of the fund: “Involved” and “Not Involved”.

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Research Paradigm

Independent Variables Dependent Variables

Profile of the Respondents Level of Utilization of MOOE

1. Traveling Expense

1. Position in the School 2. Supplies & Materials

Expense
3. Utility & Communication
Expense
2. Length of Service 4. General Services
Expense
5. Repairs & Maintenance
Expense
3. Trainings and Seminars attended
6. Other MOOE

Level of Practices of MOOE

4. Involvement in the Disbursement

of Fund 1. Procedures of the
release of funds from the
Schools Division Office
2. Responsibilities and
reporting requirements of
public SHS
3. Uses of MOOE

Figure 1. Schematic diagram of the relationship between variables.

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GRADUATE SCHOOL

Definition of Terms

The following terms that will be used in the study are defined conceptually

and operationally:

Utilization. The action of making practical and effective use of

something. (Oxford Dictionary, 2018)

Utilization, in this study, means the act of using properly and in

accordance to the guidelines of the Maintenance and Other Operating Expenses

Allocation.

Practices. A method, procedure, process, or rule used in a particular field

or profession; a set of these regarded as standard. (Business Dictionary, 2018)

Practices are the culture and procedures on how the heads and personnel

of senior high school utilize their MOOE.

Maintenance and Other Operating Expenses (MOOE). Are

expenditures to support the operations of government agencies such as

expenses for supplies and materials; transportation and travel; utilities (water,

power, etc.) and the repairs, etc. (Department of Budget and Management,

2012)

In this study, Maintenance and Other Operating Expenses is the allocated

amount by the Schools Division Office to the secondary schools with Senior High

School for their expenditures.

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GRADUATE SCHOOL

Senior High School (SHS). Refers to Grades 11 and 12, the last two

years of the K-12 program that DepEd has been implementing since 2012.

Students begin to study in SHS the subjects that will introduce them to their

preferred career path. (Philippine Daily Inquirer, 2016)

In this study Senior High School is the department to which the allocation

of Maintenance and Operating Expenses will be given to and that they will need

to effectively utilize.

Significance of the Study

Department of Education. This study will provide an understanding to

the agency as to how and where the secondary schools use their allocated

Maintenance and Other Operating Expenses.

Senior High School Department. The department will greatly benefit

from the study for it will help in the proper identification and provision of the

resources that they need.

School Heads and Personnel. This study will provide a

recommendation and understanding on how and where to utilize their allotted

Senior High School Maintenance and Other Operating Expenses since they are

the accountable officials in the use of the fund.

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Researcher. The researcher, being with the DepEd as an administrative

personnel, the result of this study will be a source of information and the data

obtained in study may be considered for the development of the organization.

Future Researchers. The study can be a source of valuable information

which can be used as basis and reference for their own and similar studies.

Scope and Limitation of the Study

This study will focus on identifying the level of utilization and the practices

of the Senior High School (SHS) Heads and Personnel on Maintenance and Other

Operating Expenses (MOOE) allocation in the public secondary schools with

Senior High School in the Fifth Congressional District of Iloilo, Philippines. The

study will be conducted during the School Year 2018-2019. The descriptive

survey research design will be employed and will utilize a researcher-made

questionnaire as a tool in gathering information in the extent of the level of

utilization and practices of SHS heads and personnel Maintenance and Other

Operating Expenses in terms of: position in the school, length of service,

trainings and seminars attended, and involvement in the disbursement of fund.

The said survey questionnaire will undergo validity and reliability tests.

Total population will be employed in the selection of the respondents as

their total number is manageable. These purposively chosen respondents will be

the School Head or In-charge of the office and their Administrative Officer,
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Administrative Assistant, Supply Officer, Property Custodian, Bids and Awards

Comittee Members, and Schools Inspectorate Team Members.