COA: MOOE not ‘discretionary’ funds; Commission’s role to validate MOOE spent

in accordance with law

Published: 23 January 2013

The Commission on Audit (COA) clarified that Maintenance and Other Operating
Expenses (MOOE) is not a discretionary fund.
COA Chairperson Ma. Gracia M. Pulido Tan, in her reply to the first letter of Senator
Miriam Santiago, said that under Section 63 of the General Appropriations Act (GAA),
MOOE appropriations may only be used for the purposes specified and listed in the
GAA. In the case of the Senate, these are general administration and support,
legislative services and operational requirements of 35 congressional commissions and
oversight committees listed in the GAA.
“Per type of expenditure, the MOOE is specified in the GAA to be used for traveling,
communication, repairs and maintenance, transportation and delivery, supplies and
materials, rents, utility, training and scholarship, extraordinary and miscellaneous, taxes
insurance premium and other fees, professional services, printing and binding,
advertising, representation, subscription, and membership duties and contribution,” the
Chairperson explained.
Chairperson Tan reiterated that the Commission’s role is to examine, audit and validate
“whether the augmentation is in fact sourced from savings; whether the requirements of
law and applicable rules and regulations have been complied with in making the
augmentation; and whether such additional MOOE went to the purpose’s specified in
the GAA.”
In connection with this, Chairperson Tan had earlier vowed to tighten liquidation rules on
MOOE as reports of abuses continue to be revealed. Tan said this is pursuant to
Section 61 of Presidential Decree No. 1445 that all expenses incurred shall be duly
ascertained by the Commission to have been duly authorized; adequately funded and
documented; properly recorded; actually incurred; and appropriately and consistently
classified.
“We are in the process of coming out with new rules on cash advances and liquidation
and this is something that we could address. We are really encouraged by these
developments,” she said.
Chairperson Tan stressed the exclusive authority granted by the 1987 Constitution to
the COA to define the scope of its audit and examination including the promulgation of
accounting and auditing rules and regulations.

http://www.coa.gov.ph/index.php/2013-06-19-13-07-50/news-releases/98-coa-mooe-not-discretionary-
funds-commission-s-role-to-validate-mooe-spent-in-accordance-with-law