To: Regional Secretary, ARMM
Regional Directors
Schools Division/City Superintendents
All Others Concerned

1. Under the General Appropriations Act (GAA), one percent (1%) of the total appropriations for the Basic Educational Facilities Fund (BEFF) is authorized for the Engineering and Administrative Overhead (EAO) to cover administrative overhead, procurement activities, contract implementation management, acquisition/rehabilitation and repair of sets of equipment and spare parts used in the implementation of DepEd’s infrastructure projects.
2. As part of the contract implementation management for BEFF projects, the 1% EAO may be used for the following purposes:
   > Material testing and quality control;
   > Survey and field studies;
   > Expenses incurred in the monitoring and inspection of projects (transportation, per diem, gasoline and hired vehicle);
   > Salaries of Physical Facilities and Schools Engineering Division-Office of the Planning Service (PFSED-OPS) contract of service engineers and consultants;
   > Workshops/Seminars and registration fees during seminars;
   > Communication allowance;
   > Supplies and materials; and
   > Meals during meetings relative to BEFF projects.
3. The one percent (1%) EAO shall be allocated and released in the following manner:
   > 0.80% will be retained at the Central Office;
   > 0.15% will be released to the implementing units (regional/division office / secondary schools with fiscal autonomy). The percentage share shall be incorporated in the Sub-Allotment Release Order (Sub-ARO) to be issued to the respective implementing units: and
   > 0.05% will be released to the Regional Offices through the issuance of a separate Sub-ARO.
4. The monitoring activities shall be the main responsibility of the Regional and Division Offices (through the Physical Facilities Coordinators) with support from the Central Office (through the PFSED-OPS).
5. The following regional/division officials/personnel are authorized to utilize the EAO funds for the monitoring of the BEFF projects:
   > Regional Directors (RDs) and Assistant Regional Directors (ARDs);
   > Schools Division/City Superintendents (SDSs) and Assistant Schools Division/City Superintendents (ASDSs);
   > Regional/Division Bids and Awards Committee;
   > Physical Facilities Coordinators;
   > Accountants/Bookkeepers;
   > DepEd Project Engineers /Architects; and
   > Auditors.
6. All regional and division offices are required to submit their status of disbursement reports to Ms. Molyn L. Dionela, Accounting Division, Central Office.
7. Unutilized EAO costs may be used for the construction and repair of school buildings needing immediate attention such as those that were damaged by typhoons or burned school buildings.
8. Immediate dissemination of and compliance with this Order is directed.

References:
DepEd Order: Nos. 28, s. 2008 and 1, s. 2010

To be indicated in the Perpetual Index under the following subjects:
FUNDS
OFFICIALS
POLICY
PROJECTS
REPAIR
SCHOOLBUILDINGS

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