1. The Department of Education (DepEd) issues the enclosed Implementing Guidelines on the Use of Capital Outlay (CO) Fund for Schools Effective Fiscal Year (FY) 2016. This fund is lodged under Schools Division Offices in the DepEd’s Operations of Schools–Elementary Schools Budget in the General Appropriations Act starting FY 2016.
2. The CO Fund aims to enable elementary schools to finance small CO requirements, such as furniture and equipment, which cannot be charged against their regular operating budgets or against their Maintenance and Other Operating Expenses allocations.
3. The mechanisms and procedures contained herein shall guide the composition, utilization and reporting of this Fund. It shall also clarify the guidelines on the capitalization threshold of Plant, Property and Equipment as prescribed in the new Government Accounting Manual issued by the Commission on Audit and as cited in DepEd Order Nos. 13 and 31, s. 2016.
4. For any inquiries on this matter, all concerned may contact the Office of the Finance Director–Budget and Performance Monitoring, Ground Floor, Alonzo Building, DepEd Complex, Meralco Avenue, Pasig City at telephone no. (02) 637-4611.
5. Immediate dissemination of and strict compliance with this Order is directed.

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