MOOE budget can be used to purchase any item not exceeding P50,000

 MOOE budget can be used to purchase any item not exceeding P50,000

The Maintenance and Other Operating Expenses (MOOE) budget can now be used to purchase  any supply or item not exceeding Php50,000 accordibg to Undersecretary Annalyn M. Sevilla.

"The Maintenance and Other Operating Expenses (MOOE) budget can be used for any supply/item not exceeding Php50,000," said Usec. in her Facebook Page.

Based on Section 23 of the General Provisions of the 2022 GAA, the Capitalization Threshold for semi-expendable property is increased from Php15,000 to Php 50,000.

"The Commission on Audit has issued the corresponding guideline for the Increase in Capitalization Threshold for semi-expendable property from Php15,000 to Php50,000," Usec. Sevilla posted.

"Section 23 of the General Provisions of RA No. 11639 or the FY 2022 GAA provides that tangible items below P50,000.00 shall be accounted as semi expendable property. The increase in the capitalization threshold was envisioned to lead to a more efficient utilization of funds in the procurement of goods. However, as stated in the President's Veto Message, the implementation of the provision for the increase in the capitalization threshold from below P15,000.00 to below P50,000.00 shall be subject to the issuance by COA of appropriate accounting and auditing rules and regulations. Pending the issuance from COA, the agencies/entities shall still apply the existing accounting and auditing rules and regulations," as stated in the Rationale.

Semi-expendable property tangible items which meet the definition and recognition criteria of Property. Plant and Equipment (PPE), but below the capitalization threshold of P50,000.00.

Tangible items which meet the definition and recognition criteria of PPE but cost is below Fifty Thousand Pesos (P50,000.00) shall be accounted in the books of accounts of the agencies as semi-expendable property. This shall be supported by the issuance of the Inventory Custodian Slip (ICS) to establish accountability of the end-user. ICS shall be issued to the end-user and shall be renewed every three years or every time there is a change in custodianship/user of the property. The threshold shall be applied on an individual asset or per item basis. Each item within the bulk acquisition such as library books, small equipment, computer peripherals, work animals, and the like, will need to meet the amount of below P50,000.00 to be recognized as semi-expendable property.

For more information, please access:

https://www.coa.gov.ph/issuances/circulars/#98-4974-wpfd-cy-2022-1644208836