The study aims to determine the challenges encountered by the School Heads in the Preparation and Utilization of Maintenance and Other Operating Expenses (MOOE). The school budget is one of the most powerful tools to promote and strengthen school-based management and accountability. Maintenance and other operating expenses (MOOE) fund is the school heads' budget in operating schools in more productive and functional ways. The researcher utilized a descriptive research design through quantitative analysis and used the total enumeration of the respondents in the Division of Nueva Ecija. In preparation and utilization of MOOE, the average weighted mean on the assessments made of different groups of respondents in non-autonomous secondary schools in CD I was 3.18 verbally described as “Exceeds”. There were no variables existed or no significant relationship found on the profile of the school heads on the preparation and actualization of MOOE funds based on AIP and SIP. With regards to the actualization of MOOE Funds based on SIP and AIP when grouped according to respondents shows that principal and SSG (Md=.72526, p< 0.05), principal and PTA (MD=.49474, p< 0.05), teacher and SSG (MD=.39290, p< 0.05). This meant that the four groups of respondents significantly differed in terms of evaluation on the actualization of MOOE Funds. The hypothesis of no significant variation is rejected. Based on the findings of the study, the researcher may propose development plan towards the enhancement of SIP and AIP.