Why do folders disappear after creating

I've always had folders on my iPhones. I know how to create them, rename them, move apps into and out of folders.That is not my problem. After a full restore was at a Genius Bar in December of 2012 (just a few months after getting the iPhone 5) I no longer had folders. I was told that a restore could not b done from a backup because the corrupted files would be in the backup. It put me at day one, though all apps were available for download, folders would have to be recreated. I simply have not had time since that occurrence.. My wife, a power user of iOS devices has been trying to recreate the folders as we are on a road trip. Every folder she has created with multiple apps disappear shortly after creating. In fact, any rearrangement of any apps to any other spot on same page or different page, reverts to where they were before the move.

What are we forgetting? Where do you control the ability to change location of apps on windows/pages in iOS7?