DepEd Order No. 8, s. 2007, the Revised Implementing Guidelines on the Operation and Management of School Canteens in Public Elementary and Secondary Schools, still governs public school canteens. It sets who may run a canteen, how its money is deposited, budgeted, divided and audited, and what a school head must do. DepEd Order No. 13, s. 2017 modified its food rules, bringing in the GREEN, YELLOW and RED categories, and DepEd Order No. 002, s. 2024, as DepEd applies it, moved canteen management from teachers to the school head and non-teaching personnel.

DepEd Memorandum No. 064, s. 2026, DepEd’s October 26, 2026 memorandum on the 2026-2027 El Niño, still names DO 8, s. 2007 as the rule for using canteen net income (Sec. VIII). The rules below are those in force on November 5, 2026.

Key findings

  • DO 8, s. 2007 is in force. DO 13, s. 2017 modified only its Policy Statements 4.4 to 4.6, on food, and no later order has replaced it.
  • A canteen is school-managed or run by a registered teachers’ cooperative, and every secondary school has a laboratory canteen for its Home Economics classes (DO 8, s. 2007, items 4.1 to 4.3). Leasing the canteen to a private concessionaire is void (item 14.1), and a PTA may not operate one (DepEd Order No. 013, s. 2022, Sec. 25.1.2).
  • DO 8 still has the school head designate a Home Economics teacher as Canteen Teacher (item 6.1), but DepEd’s answers on its teacher workload policies say canteen “management shall fall upon the school head or any appropriate non-teaching personnel”; teachers may still use the canteen as a laboratory.
  • RED-category foods and drinks, such as soft drinks, sweetened and powdered drinks, instant noodles, chips and deep-fried snacks, may not be sold, and YELLOW items only “once or twice a week only (Tuesdays and Thursdays)” (DO 13, s. 2017, Sec. V.A.1). No form of marketing is allowed in schools.
  • A school-managed canteen’s earnings are deposited daily in a bank account “in trust for” the school, never in a personal account, and spent under an annual budget approved by the Schools Division Superintendent (DO 8, s. 2007, items 6.6 and 6.7).
  • A school-managed canteen’s net income is divided 35% feeding, 5% clinic, 15% faculty and student development, 10% Home Economics instruction, 25% school operations and 10% revolving capital (item 6.5). A teachers’ cooperative pays the school at least 20% of its gross margin by the fifth of each month (item 7.10).
  • As of November 5, 2026, DepEd has no general rule on income-generating projects in public schools. Income may be kept only where a law allows it, and cash donations are deposited with the National Treasury (General Appropriations Act, FY 2026, General Provisions, Sec. 5).

Which issuances govern school canteens

Subject Current rule
Operation and management, funds, audit, sanctions DO 8, s. 2007
Food and drinks sold, marketing DO 13, s. 2017 (modifies DO 8, items 4.4 to 4.6)
Who manages the canteen DO 002, s. 2024, read with DepEd’s answers on the teacher workload policies
Food safety for consigned food DepEd Order No. 52, s. 2008
Sanitation, water and handwashing DepEd Order No. 10, s. 2016 (WASH in Schools); Presidential Decree No. 856 (Code on Sanitation)
PTAs DO 013, s. 2022
Teachers’ cooperatives DO 8, s. 2007, Sec. 7; Republic Act No. 9520 (Philippine Cooperative Code of 2008)
Declaring and posting all school funds DepEd Order No. 008, s. 2019

Who may run a school canteen

Arrangement Where it applies Who runs it
School-managed canteen Elementary schools with 500 learners or fewer (rural) or 1,000 or fewer (urban); larger schools with no qualified, interested teachers’ cooperative; secondary schools with fewer than 1,500 learners, where the laboratory canteen is the school-managed canteen The school, “under the general supervision of the school head/principal” (items 3.2 and 4.2.1)
Teachers’ cooperative-managed canteen Larger elementary schools; secondary schools with more than 1,500 learners, in addition to the laboratory canteen; special schools with more than 500 learners A teachers’ cooperative registered with the Cooperative Development Authority (CDA) that meets the criteria in item 7.1 (items 4.2.2, 4.3.2 and 4.3.3)
Laboratory canteen “Every secondary school, regardless of its enrollment size” (item 8.1) Students in their Home Economics classes, under the designated canteen teacher (items 3.4 and 8.1)

Source: DO 8, s. 2007, items 3, 4 and 8.

What a teachers’ cooperative needs

A cooperative may run the canteen only if it is registered with the CDA, lists canteen operation among its primary purposes, has existed for at least two years, has the equipment and trained staff, can hire a full-time manager and staff “who are not holding civil service positions”, and counts more than half of the school’s teachers and non-teaching personnel as members (item 7.1). It submits its documents to the division office, through the school head, “At least thirty (30) days prior to the start of canteen operations” (item 7.2).

  • Authority to operate. Within 30 days of receiving complete documents, the school head issues the cooperative an “Authority to Operate and Manage the School Canteen”; incomplete documents are returned within 72 hours (item 7.3).
  • Agreement. The school head and the cooperative’s chairperson sign a memorandum of agreement (MOA) for three years, renewable every three years (item 7.4.1). The school head comments in writing within ten days; silence for ten days counts as agreement (items 7.5.2 and 7.5.3).
  • Space and utilities. The cooperative uses the canteen “rent-free” but pays for repairs, maintenance, expansion, and water and electricity through separate meters, installed within three months (item 7.8.1).
  • No official time. Officers and members may not use “official time in attending to and supervising the activities, operations and management of the school canteen” (item 7.9).

DO 8’s enrollment thresholds predate the 2009 Cooperative Code, which gives cooperatives “organized by faculty members and employees of educational institutions” “the preferential right in the management of the canteen” in their school, with no threshold (RA 9520, Art. 62(12)). No DepEd issuance or decision has reconciled the two.

Who may not run or sell in the canteen

  • Concessionaires and lessees. “Sub-leasing the whole or part of the school canteen premises or sub-contracting the operation of the school canteen to concessionaires is prohibited” (item 4.8), and leases to private concessionaires made after November 10, 1998 are “deemed terminated for being contrary to law and public policy” (item 14.1). In Pineda v. Court of Appeals, G.R. No. 181643, November 17, 2010 (Second Division), DepEd declared a principal’s five-year lease of a high school canteen to a private operator void and returned the canteen to the school’s Home Economics department.
  • The PTA. PTAs and their officers may not operate “a canteen/school supplies store, or being a concessionaire thereof inside the school or nearby premises” (DO 013, s. 2022, Sec. 25.1.2).
  • Outside vendors and staff. “Vendors shall not be allowed to bring in food items inside the school canteen/premises.” Teachers and personnel may sell food only through the canteen, under a written agreement with the school head or the cooperative (DO 8, s. 2007, item 4.9).

Consigned food. Food a supplier leaves on consignment needs a written agreement with the school head, a supplier with a business permit and sanitary permit, health certificates for its food handlers, and inspection before sale (DO 52, s. 2008, item 3). Consignment covers goods the canteen sells; it does not let a supplier run the canteen.

Who manages and staffs the canteen now

DO 8 still says: “The school head/principal shall issue a written designation to a Home Economics teacher who shall be the Canteen Teacher” (item 6.1). That teacher keeps the books and prepares the reports (item 6.4) and co-signs the canteen’s bank account with the school head (item 6.6), and three hours of canteen supervision count as four teaching periods (item 6.1).

DO 002, s. 2024 changed the footing. It gives “School Heads and non-teaching personnel” “the sole responsibility to perform the administrative tasks”, among them financial management and program management (Sec. V.A.1), and rescinds inconsistent issuances (Sec. VII). It does not name the canteen. DepEd’s own answers apply it:

the current policy direction under DO 2, s. 2024 classifies canteen management as an administrative task and no longer part of the regular workload of teachers. Hence, teachers may still use the canteen as their laboratory. However, management shall fall upon the school head or any appropriate non-teaching personnel.

Source: DepEd, consolidated answers from the 2026 online meetings with regional and division offices on the implementation of the teacher workload policies, No. 30.

DepEd’s 2024 answers on DepEd Memorandum No. 053, s. 2024, the implementation guidelines for DO 005, s. 2024, say the workload policies “relieve teachers of administrative tasks related to canteen management such as financial management” (No. 34), and that “teaching load is limited to actual classroom teaching, class advising duties, and remediation/enhancement classes” (No. 32), so DO 8’s count of canteen hours as teaching periods no longer applies. DepEd Order No. 005, s. 2024 lists no canteen role among the teaching-related assignments a teacher may hold (Sec. V.A.4.1), and DepEd Order No. 006, s. 2025 lists no canteen form among teachers’ forms.

Who can do the work. DO 8 lets the school head “contract the services of additional qualified full-time canteen personnel, subject to availability of funds” (item 6.2), and DO 002 lets schools hire contract-of-service or job-order personnel charged to MOOE “or other alternative sources of funding” (Sec. V.A.2.b). In senior high schools, an Administrative Assistant “May also be designated as property custodian or to the canteen services of the school, as deemed necessary” (DepEd Order No. 19, s. 2016, Encl., job description of the Administrative Assistant).

What teachers keep. The laboratory canteen and Home Economics practicum are instruction. The canteen teacher prepares the practicum schedule, and “No pupil/student shall serve in the canteen beyond his/her practicum schedule” (items 8.2 and 8.4).

Learners who work. DO 8 lets indigent learners work in the canteen for reasonable pay, with their parents’ written consent and outside their class schedule (item 6.3). The child labor law limits this: “Children below fifteen (15) years of age shall not be employed except” in family work under their parents’ sole responsibility or in media work approved by the labor department, and a learner aged 15 to 17 may work no more than eight hours a day and 40 hours a week (Republic Act No. 7610, Secs. 12 and 12-A, as amended by Republic Act No. 9231). A learner below 15 may not be employed in the canteen.

What is still open. DO 8’s staffing provisions have not been amended, and DepEd’s 2026 answer itself notes that “COA still advises some SDOs to follow the older guidelines”. As of November 5, 2026, no DepEd issuance names who replaces the Canteen Teacher as joint signatory of the canteen account or as preparer of its books and reports, or whether the teachers on DO 8’s auditing committee may still serve. The safer course is to keep the books, reports and co-signature with the school head and a designated non-teaching staff member, and to ask the division in writing to confirm the account’s signatories. The DO 002 guide and the teaching-related assignments guide cover the wider rules.

What a canteen may sell

DO 13, s. 2017 applies to “all public elementary and secondary schools, learning centers, including DepEd Offices”, and private schools are “enjoined” to adopt it (Sec. II). Each school develops a healthy menu “for approval by the Schools Division Superintendent (SDS)” (Sec. V.A.1.a).

Category Rule Packaged foods, per serving (Tables 1 to 3) Examples (Tables 4 to 6)
GREEN “should ALWAYS be available in the canteen” Saturated fat under 3 g, no trans fat, added sugar under 10 g, sodium under 120 mg Unsweetened milk, safe water, unsweetened buko water, rice, corn, boiled kamote and saba, suman, puto, fish, lean meat, eggs, fresh fruits and vegetables
YELLOW “should be served carefully”: “once or twice a week only (Tuesdays and Thursdays), in smaller servings” Saturated fat 3 to 5 g, no trans fat, added sugar 10 to 20 g, or sodium 120 to 200 mg 100% fresh fruit juice, pancit, arroz caldo, champorado, banana cue, turon, sandwiches, processed meats such as hotdogs and nuggets
RED “not recommended in the canteen menu” and “should not be served in healthy school canteens” Saturated fat over 5 g, any trans fat, added sugar over 20 g, or sodium over 200 mg Soft drinks, sports and energy drinks, sweetened and powdered juice drinks, anything with caffeine, ice candies, cakes and donuts, candies, instant noodles, chips, chicharon, fish balls and kikiam

Source: DO 13, s. 2017, Sec. V.A.1.h and Tables 1 to 6.

A packaged product with even one nutrient in the RED range “should not be sold in school canteens” (Sec. V.A.1.i). The order’s summary assessment table repeats the GREEN cut-offs in its RED column, and DO 13 does not resolve the overlap. For a packaged item that Tables 1 to 3 put in YELLOW but the summary table puts in RED, confirm the division’s reading before stocking it.

Other rules in DO 13, s. 2017:

  • Safe drinking water “should be made readily available”, and soy sauce, fish sauce and similar condiments are served only on request (Sec. V.A.2.a and b). Canteen-cooked food uses iodized salt, with salt reduced gradually (Sec. V.A.1.e and k).
  • “There shall be no form of marketing in schools and in DepEd offices” (Sec. V.A.3.a). That covers branded refrigerators and vending machines, free samples, point-of-sale displays and sponsorship. Equipment bearing the brand of an unhealthy product had to be removed within three months (Sec. V.A.3.e).
  • No donations or sponsorships from tobacco companies or makers of breast milk substitutes (Sec. V.C).
  • “Schools shall advise parents and guardians to provide healthy foods and beverages to be consumed in schools (baon) by their children” (Sec. V.A.2.c). DO 8 still makes it a ground for ending a canteen’s operation to compel learners to buy only from the canteen or to prohibit “them to bring their own “baon”” (item 9.2(g)). DO 13 adds that learners “shall not bring unhealthy foods and beverages to school” (Sec. V.A.2.c). Read together, a school may bar unhealthy baon but may not forbid baon itself or compel purchases from the canteen.
  • Each school forms a working group of “School Heads, Teacher in-charge of canteen, Chairperson of canteen cooperative, and Parent-Teacher Association” “to discuss the implementation of the policy”, plans the school’s healthy menu, and must “Ensure that only healthy food and drinks are available in the schools” (Sec. V.E.4.a to c). Division monitors check compliance monthly (Sec. V.F.2).

Health, sanitation and safety

Requirement Source
Sanitary permit from the local health office, health permits or certificates for canteen personnel, and, for a cooperative, the school head’s authority to operate, all posted in the canteen and valid for the school year DO 8, s. 2007, item 5.1; PD 856, Secs. 14 and 15
“No person shall be employed in any food establishment without a Health Certificate issued by the local health authority” PD 856, Sec. 15
Clean white shirt or blouse, hairnet, apron, proper footwear and photo ID DO 8, s. 2007, item 5.2
Training on safe food handling before anyone, including practicum students, works in the canteen DO 8, s. 2007, item 5.7
Potable water, handwashing facilities, food covers, a clean and pest-free room, and solid waste management DO 8, s. 2007, item 5.6.1; DO 10, s. 2016, Sec. IV.A
Food handlers “shall have an updated health certificate issued by the local health authority” DO 10, s. 2016, Sec. IV.A
Schools monitor the absolute smoking ban in canteens and the ban on selling tobacco within 100 meters of the school DepEd Order No. 48, s. 2016, Sec. F
Reusable food containers; avoid selling food in non-recyclable packaging DepEd Order No. 5, s. 2014, Encl. item 2.2.3.1

Under Republic Act No. 10611, the Food Safety Act of 2013, local governments “shall be responsible for food safety in food businesses such as, but not limited to, … school canteens”, and for “street food sale, including ambulant vending” (Sec. 15(c)). DepEd has no rule that binds vendors outside the school gate. DO 13, s. 2017 encourages school officials to work with their local government on “local legislation to limit the marketing of unhealthy foods and beverages within at least 100 meter radius of the school” (Sec. V.A.3.c).

DO 52, s. 2008 underscores “the accountability of the school principal for any untoward incident that may happen in the school due to non-compliance with school health policies and food safety guidelines” (item 2). The Educational Facilities Manual guide gives the dining-space and service-counter standards.

Canteen funds

Deposits and accounts

“Earnings and cash received from canteen operations shall be deposited daily in the nearest government depository bank”, or the nearest reputable commercial bank where there is none. “In no case shall the deposits be made in the personal account of any school official.” The account is “in trust for” the school (DO 8, s. 2007, item 6.6).

Canteen money is kept in its own account, apart from MOOE. For schools that receive MOOE as cash advances (non-implementing units), “Only funds from DepEd OUs (Central, Regional and Division Offices) shall be deposited by the SDO to the school’s bank account”, and “Deposits from personal funds and funds from other sources shall not be allowed” (DepEd Order No. 029, s. 2019, item 21).

Budget and use of income

“Based on the expected income of the school canteen, the school head/principal shall prepare an Annual Budget to be submitted to and approved by the Schools Division Superintendent or his/her representative at the start of every school year”, and disbursements follow that budget “and existing accounting and auditing rules and regulations” (items 6.7 and 6.8).

Use School-managed canteen, net income (item 6.5) School’s share from a cooperative canteen (item 7.10(c)) Laboratory canteen income (item 8.5)
Supplementary feeding for undernourished learners 35% 35% 40%
School clinic 5% 5%
Faculty and student development 15% 15% 30% (student development)
Home Economics instruction 10% 10% 30% (H.E. development)
School operations 25% 35%
Revolving capital 10%

Source: DO 8, s. 2007, items 6.5, 7.10(c) and 8.5.

  • The cooperative’s share. The gross margin is split “Eighty percent (80%) for the teachers’ cooperative and twenty percent (20%) for the school”, or another split the two agree on, but the school’s share “shall not be less than twenty percent (20%)”. “Remittance of the school share shall be due every fifth day of the month”, and the school head issues an acknowledgment receipt (item 7.10(a) and (b)).
  • No share for higher offices. “No portion of the net income derived from canteen operations shall be set aside and in any manner, in favor of the Regional, Division or District Offices” (item 5.8).
  • Supplier incentives. Cash or in-kind incentives from food and drink suppliers “shall form part of the gross income of the school canteen” (item 5.5), but DO 13, s. 2017’s marketing ban rules out branded equipment, free samples and sponsorship of unhealthy products, and “sponsorships and partnerships shall not be allowed if conflict of interest is likely to arise with the objectives of this policy” (Sec. V.C).
  • Uses later orders allow. DO 8’s list of uses is “not limited to” its six shares (item 6.5). Canteen proceeds may also fund Gulayan sa Paaralan (DO 5, s. 2014, item 7), simple refreshments during the division’s checking of school forms (DepEd Order No. 11, s. 2018, Sec. VI), the cost of sending learner records (DepEd Order No. 54, s. 2016, Sec. VI), and School Governance Council meetings and activities (DepEd Order No. 026, s. 2022, Sec. M, Budget). None says which of DO 8’s shares to charge; the school operations share is the closest fit for records and council costs, and the feeding share for feeding gaps.
  • Uses DO 8 forbids. “Use or disbursement of canteen funds contrary to the provisions of these rules and guidelines which includes devoting and re-aligning said funds to any other endeavor not included in these guidelines” is a ground for ending the canteen’s operation (item 9.2(f)).

Purchases with canteen money are made with school funds, so the procurement law applies: DO 008, s. 2019 requires that “all procurement using the school funds” follow the procurement law (Sec. VI.A.3), now Republic Act No. 12009, the New Government Procurement Act, which applies “regardless of source of funds” (Sec. 4).

Books, reports, audit and posting

  • Books. A book of accounts and a statement of sales and disbursements record daily transactions, with receipts kept for every sale, purchase and payment (item 5.4.1).
  • Auditing committee. The school head organizes a school-level auditing committee, which “shall look into the books of accounts at least once a month” and audits the funds quarterly; the COA auditor audits them “twice a year”. “Audited financial statements shall be posted on bulletin boards for the information of everybody” (items 5.4.2 and 5.4.3).
  • Reports. Quarterly financial statements go to the division office for a school-managed canteen, or to the school head for a cooperative canteen, by May 15, August 15, November 15 and February 15. Monthly schedules, including the bank reconciliation and the statement of receipts and disbursements, are posted by the 10th of the following month (item 5.3.1). The school head also posts a statement of receipts and disbursements showing the cooperative’s share (item 5.3.3).
  • All school funds. School heads declare all sources of school funds, including “revenue from school canteen operations”, and post their sources and uses on a Transparency Board “updated every three (3) months” (DO 008, s. 2019, Sec. VI.A.1 and 4).
  • Clearance. Teachers and canteen personnel secure clearance from money and property accountabilities before they retire, resign or transfer (item 6.9).

Failing to submit the monthly report within 30 days, failing to deposit in the “in trust for” account, or failing to show the books to the school head, the auditing committee or COA on request are all grounds for ending a canteen’s operation (item 9.2(a), (i) and (j)). The unauthorized fees and canteen money guide covers the Supreme Court cases on canteen money, and the MOOE guide the MOOE rules.

Income-generating projects and other money a school raises

As of November 5, 2026, DepEd has issued no general rule on income-generating projects in public schools. The rules that exist are narrow:

  • Garden produce. Gulayan sa Paaralan produce is used “primarily for feeding in school”, and “excess vegetables may be sold in the community as part of the school’s income-generating project for the procurement of feeding ingredients, garden tools and other garden inputs” (DO 5, s. 2014, Encl. item 2.1.4).
  • Home Economics products. Food from Home Economics practicum may be sold in a cooperative canteen, with the proceeds going to “the revolving fund created for this purpose” (DO 8, s. 2007, item 7.12.1), and laboratory canteen income follows the 40/30/30 split.
  • Technical-vocational high schools. The schools covered by DepEd Order No. 48, s. 2007 may keep income from their production projects in a special account separate from MOOE (item 4.i).

Outside these, the default rule for government income is deposit with the National Treasury, “Unless otherwise specifically provided by law” (Presidential Decree No. 1445, Government Auditing Code, Sec. 65). The 2026 General Appropriations Act lets national elementary and secondary schools keep revolving funds from fees and charges, from “manufacturing and production programs, including auxiliary services”, and puts rentals of DepEd training centers and other facilities into a revolving fund, all recorded in the books and spent under budgeting, accounting, auditing and procurement rules (General Appropriations Act, FY 2026, DepEd Special Provisions 1 to 3). These provisions say where such income goes; they do not say who may lease school property. Whatever the source, the school declares the income and posts it on the Transparency Board (DO 008, s. 2019, Sec. VI.A.1 and 4).

  • Renting out school premises. As of November 5, 2026, DepEd has issued no rule letting a school head lease out school grounds or facilities. In Office of the Deputy Ombudsman for Luzon v. Dionisio, G.R. No. 220700, July 10, 2017 (First Division), a principal who leased part of a provincially owned school site for a drugstore, and spent the rent and a “donation” on a canteen and equipment without bidding, was dismissed for grave misconduct. The Court held that the local government, not the school, has authority to lease its property.
  • Cash donations. “The receipts from cash donations and proceeds from sale of donated commodities shall be deposited with the National Treasury and recorded as a Special Account in the General Fund” and become available to the agency through a Special Budget Request; donations for a term of up to one year are trust receipts (General Appropriations Act, FY 2026, General Provisions, Secs. 5 and 6). The sample partnership agreement in DepEd Order No. 24, s. 2016 sets out the same procedure: the school “deposits the fund as donation to the Bureau of Treasury (BTr)” and gets it back through a Notice of Cash Allocation (Encl. No. 1, Annex A).
  • No collections. The sale of tickets or “the collection of contributions in any form whatsoever” from learners and teachers is prohibited (Republic Act No. 4206, as amended, Sec. 1; DepEd Memorandum No. 041, s. 2024). A canteen sells food; it may not run raffles, ticket sales or contribution drives.

Grievances and sanctions

  • Complaints. Complaints on “pricing, quality of foods, etc.” go to the division grievance committee for a school-managed canteen and to the school grievance committee for a cooperative canteen (DO 8, s. 2007, item 10.2(a)).
  • Simple violations. “a warning shall be issued by the school head/principal for the first infraction”, and a repeat may end the cooperative’s MOA (item 10.3(b)).
  • School-managed canteens. “any violation of these guidelines shall warrant appropriate administrative sanctions against the school head/principal and other canteen teachers who are directly or indirectly involved” (item 10.3(c)), besides criminal and civil liability where the violation warrants it (item 10.3(e)).
  • Grounds for ending operation include sub-leasing, selling cigarettes or liquor to learners, missing health and sanitation permits, unreported supplier incentives, and using the canteen as a warehouse for prohibited items (item 9.2). The grievance guide explains the grievance machinery.

What this means for school heads

  1. Confirm the arrangement. Check whether the school’s enrollment and any teachers’ cooperative fit DO 8’s arrangements, and that a secondary school has its laboratory canteen. End any lease or concession; it is void (items 4.8 and 14.1).
  2. Staff it without teachers. Assign canteen management, books and reports to yourself and non-teaching personnel, or contract canteen staff from canteen funds or MOOE (DO 8, item 6.2; DO 002, Sec. V.A.2.b). Keep Home Economics practicum in the laboratory canteen, on a posted schedule. Ask the division in writing who should co-sign the canteen account in place of the Canteen Teacher.
  3. Keep the permits current. Sanitary permit, health certificates and food-handling training for every food handler, all posted in the canteen (DO 8, items 5.1 and 5.7; PD 856, Sec. 15).
  4. Approve a healthy menu. Draw it up with the canteen working group, submit it to the SDS, keep RED items off the shelves, serve YELLOW items only on Tuesdays and Thursdays, and turn down branded equipment and sponsorship (DO 13, s. 2017).
  5. Bank every day. Deposit all earnings daily in the “in trust for” account. Never use a personal account, or, if the school receives MOOE as cash advances, the MOOE account (DO 8, item 6.6; DO 029, s. 2019, item 21).
  6. Budget by the shares. Prepare the annual canteen budget along DO 8’s shares, get the SDS’s approval at the start of the school year, and spend only under it (items 6.5, 6.7 and 6.8).
  7. Audit and post. Organize the auditing committee, have it review the books monthly and audit quarterly, post the audited statements and monthly schedules, and send quarterly statements to the division (items 5.3 and 5.4). Declare canteen income on the Transparency Board every three months (DO 008, s. 2019).
  8. Collect the cooperative’s share. Receive it by the fifth of each month, issue an acknowledgment receipt, and post what the school received (items 5.3.3 and 7.10).
  9. Answer requests for the books. A request for the canteen’s statements is answered within 15 working days (Republic Act No. 6713, Sec. 5(a)).

This work serves PPSSH Domain 2, strand 2.2 on financial management, and the PTA and partner links in the School Governance Council and PTA guide.

A school head may not:

  • lease the canteen or let a concessionaire or the PTA run it (DO 8, items 4.8 and 14.1; DO 013, s. 2022, Sec. 25.1.2);
  • deposit canteen money in a personal account, or, in a school that receives MOOE as cash advances, in the MOOE account (DO 8, item 6.6; DO 029, s. 2019, item 21);
  • spend canteen money outside the approved budget or on purposes DO 8 and later orders do not allow (items 6.8 and 9.2(f));
  • set aside canteen income for the region, division or district (item 5.8);
  • sell RED-category food and drinks or allow marketing in school (DO 13, s. 2017);
  • compel learners to buy only from the canteen or forbid their baon (DO 8, item 9.2(g)); or
  • collect contributions or sell tickets to learners or teachers (RA 4206, as amended).

How the NASH may test this

The items below are original practice items, scored 3 (Relational), 2 (Multistructural), 1 (Unistructural) or 0 (Prestructural). An option that breaks a rule scores 0.

Question 1

Indicator 1.3.2, Policy implementation and review. Career Stage 2, Situational, Moderate.

You are the principal of a public secondary school with a school-managed canteen. A soft drink distributor offers the canteen a free refrigerator bearing its brand and a cash rebate on every drink sold, which would add to the canteen’s income for the feeding program. The canteen staff favor the offer, since many learners ask for soft drinks. What is the most appropriate action?

  • A. Accept the refrigerator and the rebate, and use the added income only for the feeding program so that undernourished learners are the ones who benefit.
  • B. Decline the offer, put GREEN drinks such as water and unsweetened milk on the school’s healthy menu, and submit the menu to the division superintendent.
  • C. Ask the division office whether the offer may be accepted, and tell the distributor that the school will give its answer once the division has replied.
  • D. Decline the offer, and have the canteen stock bottled water, unsweetened milk and unsweetened buko water from suppliers whose products meet the healthy food rules.
Answer and explanation

Best answer: B. Points: A = 0, B = 3, C = 1, D = 2.

  • A (0 points, Prestructural). Soft drinks are RED-category items that may not be sold, and a branded refrigerator is marketing, which DO 13, s. 2017 bars in schools, whatever the income is used for.
  • B (3 points, Relational). It connects the bans on marketing and on RED drinks with the school’s duty to plan a healthy menu of GREEN items and have the Schools Division Superintendent approve it.
  • C (1 point, Unistructural). Asking the division is reasonable, but the rules already answer the question, and the option changes nothing in the canteen.
  • D (2 points, Multistructural). It declines the offer and stocks GREEN drinks, but it does not bring the change into the school’s healthy menu, which the division superintendent approves.

Why. This aligns with Career Stage 2 expectations because indicator 1.3.2 asks the school head to implement policy so that school operations follow national issuances. DO 13, s. 2017 lists soft drinks among RED items, which “should not be served in healthy school canteens”, bars “branded vending machines, branded refrigerators and ice boxes” as marketing (Sec. V.A.1.h and V.A.3), and has each school develop a healthy menu “for approval by the Schools Division Superintendent (SDS)” (Sec. V.A.1.a). The 2-point option stocks the right drinks but leaves out the menu and its approval.

Indicator 1.3.2: Undertake policy implementation and review in the school to ensure that operations are consistent with national and local laws, regulations and issuances.

Sources: DepEd Order No. 13, s. 2017, Secs. V.A.1 and V.A.3.

Question 2

Indicator 2.2.1, Financial management. Career Stage 1, Conceptual, Moderate.

Under DepEd’s canteen guidelines, which statement best describes how the income of a school-managed canteen should be handled?

  • A. It is deposited daily in the school’s “in trust for” account, with the books kept current and open to the school’s auditing committee and to the COA auditor.
  • B. It is kept by the canteen staff in a locked cash box and spent at the end of the school year on whatever the faculty agrees the school needs most.
  • C. It is deposited daily in the school’s “in trust for” account and spent under an approved budget along the set shares, with audited statements posted.
  • D. It is reported to the division office every quarter through the canteen’s financial statements, as the canteen guidelines require of the school.
Answer and explanation

Best answer: C. Points: A = 2, B = 0, C = 3, D = 1.

  • A (2 points, Multistructural). It gets the daily deposit, the account and the audit right, but it says nothing about the approved budget, the shares or posting.
  • B (0 points, Prestructural). Earnings must be deposited daily, and spending on whatever the faculty agrees on ignores the approved budget and the set shares; both break DO 8.
  • C (3 points, Relational). It links the deposit rule to the budget, the division of net income and the posting that make the money accountable.
  • D (1 point, Unistructural). Quarterly statements to the division are one of DO 8’s reporting rules, but the option leaves out the deposit, the budget, the shares and the audit.

Why. This aligns with Career Stage 1 expectations because indicator 2.2.1 asks for knowledge of the policies on allocating, disbursing and accounting for school finances. DO 8, s. 2007 requires daily deposit in an account “in trust for” the school (item 6.6), an annual budget approved by the SDS (item 6.7), the division of net income in item 6.5, and audited statements “posted on bulletin boards for the information of everybody” (item 5.4.3). The 2-point option covers deposit and audit but not how the money is planned and spent.

Indicator 2.2.1: Demonstrate knowledge and understanding of policies, guidelines and issuances in managing finances such as allocation, procurement, disbursement and liquidation aligned with the school plan.

Sources: DepEd Order No. 8, s. 2007, items 5.3.1, 5.4.3, 6.5, 6.6 and 6.7.

Nothing in this guide reproduces or predicts examination content.

Frequently asked questions

Is DepEd Order No. 8, s. 2007 still in force?

Yes. As of November 5, 2026, no DepEd order has replaced it. DO 13, s. 2017 modified only its food rules (items 4.4 to 4.6), and DepEd’s teacher workload policies have moved canteen management away from teachers, but its rules on canteen types, deposits, budgets, shares, audit and sanctions still apply.

Can a teacher be a canteen manager in DepEd now?

Not under DepEd’s current direction. DepEd’s answers on DO 002, s. 2024 treat canteen management as an administrative task, and “management shall fall upon the school head or any appropriate non-teaching personnel”; teachers may still use the canteen as a laboratory for their classes. DO 8’s text naming a Home Economics Canteen Teacher has not been amended, and DepEd’s answer notes that COA still advises some division offices to follow the older guidelines, so confirm the arrangement with the division.

Can the PTA run the school canteen?

No. DO 013, s. 2022 prohibits PTAs and their officers from “operating a canteen/school supplies store, or being a concessionaire thereof inside the school or nearby premises” (Sec. 25.1.2). A canteen is run by the school or by a registered teachers’ cooperative (DO 8, s. 2007, item 4.1).

Can a school canteen sell soft drinks or instant noodles?

No. Both are RED-category items under DO 13, s. 2017 (Table 6), and “The canteens in schools and DepEd offices shall not sell foods and beverages high in fat and/or sugar and/or sodium” (Sec. V.A.1.c). YELLOW items such as pancit or banana cue may be served only on Tuesdays and Thursdays, in smaller servings.

How is canteen income divided?

For a school-managed canteen, net income goes 35% to supplementary feeding, 5% to the clinic, 15% to faculty and student development, 10% to Home Economics instruction, 25% to school operations and 10% to revolving capital (DO 8, s. 2007, item 6.5). A teachers’ cooperative pays the school at least 20% of its gross margin, which the school divides 35/5/15/10/35 (item 7.10).

Sources

DepEd orders and memoranda

  • DepEd Order No. 8, s. 2007, Revised Implementing Guidelines on the Operation and Management of School Canteens in Public Elementary and Secondary Schools, February 6, 2007. Items 3 to 14.
  • DepEd Order No. 13, s. 2017, Policy and Guidelines on Healthy Food and Beverage Choices in Schools and in DepEd Offices, March 14, 2017. Secs. II, V and VIII; Tables 1 to 6.
  • DepEd Order No. 002, s. 2024, Immediate Removal of Administrative Tasks of Public School Teachers, January 26, 2024. Secs. V.A and VII.
  • DepEd Order No. 005, s. 2024, Rationalization of Teachers’ Workload in Public Schools and Payment of Teaching Overload, April 29, 2024. Sec. V.A.4.1.
  • DepEd Memorandum No. 053, s. 2024, Implementation Guidelines for DepEd Order No. 005, s. 2024, September 27, 2024; with DepEd’s consolidated answers from its online orientation (November 2024), Nos. 32 and 34.
  • DepEd, consolidated answers from the online meetings with regional and division offices on the implementation status of the teacher workload policies, May 25-26 and June 2, 2026, No. 30.
  • DepEd Order No. 006, s. 2025, Guidelines on the Streamlining of School Forms and Reports Accomplished by Teachers, March 20, 2025.
  • DepEd Order No. 026, s. 2022, Implementing Guidelines on the Establishment of School Governance Council, June 17, 2022.
  • DepEd Order No. 013, s. 2022, Omnibus Guidelines on the Regulation of Operations of Parent-Teacher Associations, March 18, 2022. Sec. 25.1.2.
  • DepEd Order No. 029, s. 2019, Procedural Guidelines on the Management of Cash Advances for School Maintenance and Other Operating Expenses and Program Funds of Non-Implementing Units Pursuant to COA, DBM and DepEd Joint Circular No. 2019-1, October 17, 2019. Item 21.
  • DepEd Order No. 008, s. 2019, Revised Implementing Guidelines on the Direct Release, Use, Monitoring and Reporting of Maintenance and Other Operating Expenses Allocation of Schools, Including Other Funds Managed by Schools, May 2, 2019. Sec. VI.A.
  • DepEd Order No. 48, s. 2016, Policy and Guidelines on Comprehensive Tobacco Control, June 28, 2016. Sec. F.
  • DepEd Order No. 24, s. 2016, Guidelines on Accepting Donations and on Processing Applications for the Availment of Tax Incentives by Private Donor-Partners Supporting the K to 12 Program, April 25, 2016. Encl. No. 1, Annex A.
  • DepEd Order No. 19, s. 2016, Guidelines on the Organizational Structures and Staffing Patterns of Stand-Alone and Integrated Public Senior High Schools, April 6, 2016.
  • DepEd Order No. 10, s. 2016, Policy and Guidelines for the Comprehensive Water, Sanitation and Hygiene in Schools (WinS) Program, February 19, 2016. Sec. IV.A.
  • DepEd Order No. 5, s. 2014, Implementing Guidelines on the Integration of Gulayan sa Paaralan, Solid Waste Management and Tree Planting under the National Greening Program, February 7, 2014. Item 7; Encl. items 2.1.4 and 2.2.3.1.
  • DepEd Order No. 52, s. 2008, Compliance with DepEd Policies on Food Safety in Schools, July 2, 2008. Items 2 and 3.
  • DepEd Order No. 48, s. 2007, Decentralizing Management of the Strengthened Technical-Vocational Education Program, July 19, 2007.
  • DepEd Order No. 11, s. 2018, Guidelines on the Preparation and Checking of School Forms, March 7, 2018. Sec. VI.
  • DepEd Order No. 54, s. 2016, Guidelines on the Request and Transfer of Learner’s School Records, June 30, 2016. Sec. VI.
  • DepEd Memorandum No. 041, s. 2024, Reiteration of the “No Collection Policy” in Schools, August 2, 2024.
  • DepEd Memorandum No. 064, s. 2026, Anticipatory Action, Preparedness and Protective Measures for the 2026-2027 Super El Niño, October 26, 2026. Sec. VIII.

Laws and decisions

This guide explains DepEd and Civil Service Commission rules for study and professional awareness. It is not legal advice; for a specific case, consult a lawyer or your Schools Division Office’s legal unit.

Written by Mark Anthony Llego for NASH Reviewer. Sources: DO 8, s. 2007, DO 13, s. 2017, DO 002, s. 2024 and DepEd’s answers on the teacher workload policies, DO 013, s. 2022, DO 10, s. 2016, DO 52, s. 2008, DO 008, s. 2019, DO 029, s. 2019, DO 24, s. 2016, PD 856, PD 1445, RA 9520 and RA 10611.