RMO No. 61-2010 — Pre cribe the policie and guideline relative to the BIR 2010 Regional Divi ion ’ Key Performance Indicator , Accompli hment Reporting and Office Performance Evaluation Dige t | Full Text | Annex A | Annexe B-G

REPUBLIC OF THE PHILIPPINES Department of Finance Bureau of Internal Revenue Quezon City June 29, 2010 REVENUE MEMORANDUM ORDER NO. 61-2010 To : All Deputy Commissioners, Assistant Commissioners, Regional Directors, Regional Division Chiefs, and Others Concerned Subject : BIR 2010 Regional Divisions' Key Performance Indicators, Accomplishment Reporting and Office Performance Evaluation _____________________________________________________________________________ I. OBJECTIVES The ability to monitor and evaluate performance is a key element in improving productivity and enhancing the BIR's revenue performance. In this regard, this Order is being issued to: 1. Prescribe and provide details of the BIR's CY 2010 Regional Divisions' Performance Measures, by indicating the Priority Programs, Key Performance Indicators (KPIs), Weights, and Formulae to be used in implementing and monitoring each Priority Program; 2. Prescribe the policies and procedures for monitoring and evaluating the performance of the Regional Divisions vis-a-vis their respective Office Performance Measures; and, 3. Attain the goals and objectives set forth in the BIR Initiatives and Tax Reform Agenda under the Performance Governance System (PGS). II. POLICIES AND GUIDELINES 1. The KPIs shall serve as a basis for monitoring and evaluating the performance of the incumbent Regional Division Chiefs, beginning with the period covering July � December 2010. 2. Each KPI shall have an overall total score of 100%. The National Office shall prescribe the KPIs with a total weight of 60%. Programs and tasks that fall under the category "Other Priority Projects/ Activities" in the 2010 Strategy Map which have a 40% weight shall be rated by the Regional Directors concerned. 1

3. Each Regional Division shall determine at least four (4) projects/activities that shall constitute its "Other Priority Projects/Activities" in the 2010 Strategy Map, subject to the approval of the Regional Director. These projects/ activities shall then be incorporated with the KPIs provided in Annex A of this Order. 4. The Performance Contract (please refer to Annex B of this Order) of each Regional Division, which shall provide details of the Division's Priority Programs/Projects, KPIs, Program/Project Weights, KPI Weight and Targets, shall be signed by the Regional Division Chief, and noted by the Regional Director concerned. The Contract shall then be submitted to the Assistant Commissioner (ACIR), Policy and Planning Service not later than June 30, 2010. 5. In the event of any request for clarification or definition/ explanation of the KPIs prescribed by the National Office, the ACIR concerned who is the Measure Owner of the KPI in question, shall issue a Memorandum to address such clarification/ explanation, subject to the approval of the Commissioner. 5.1. For purposes of this Order, the Measure Owner of the "On Time: BIR Time" (OT:BT) Program shall be the concerned ACIR to whom the Regional Divisions shall submit their identified priority reports. 6. The ACIRs and Regional Directors shall perform periodic verification and documentation of the progress of the Regional Divisions' Performance Contracts. Any issues/outstanding accomplishments shall be elevated by the Regional Director to the ACIR concerned. 7. An Annual Regional Divisions Performance Evaluation shall be conducted, to determine the rating of a Regional Division, taking into account its targets vis-a-vis actual performance. 7.1. A straightforward method of computation shall be employed in arriving at the rating of a Regional Division's performance, using the following formula: Rating = Actual Accomplishment x Project/KPI Weight 7.2. The Overall Rating of a Regional Division shall be the sum of all points earned per Priority Project/ KPI. III. PROCEDURES The following guidelines and procedures shall be observed in the preparation and submission of the required accomplishment reports, and the conduct of the office performance evaluation, for the CY 2010 Priority Programs and KPIs for the Regional Divisions: 1. Accomplishment Reports shall be prepared and submitted in accordance with the following schedule, by the concerned official: 2

OFFICE/ REPORT PERSON SUBMITTED TO DUE DATE RESPONSIBLE � Regional Divisions' Monthly Accomplishment Reports Regional Division Regional Director On or before the 7th Accomplishment Report on Chief concerned day after the end of KPIs (see Annex C1) each month � Consolidated Regional Regional Director Assistant On or before the 12th day after the end of Divisions' Accomplishment Commissioner each month Report on KPIs (see Annex C2) concerned Quarterly Accomplishment Reports � Regional Divisions' Quarterly Regional Division Regional Director On or before the 10th day of the month Accomplishment Report on Chief concerned following each Quarter KPIs (see Annex D1) On or before the 15th day of the month � Consolidated Quarterly Regional Director Assistant following each Accomplishment Report of all Commissioner Quarter Regional Divisions (see Annex concerned D2) On or before the 20th Assistant Deputy day of the month � Consolidated Quarterly Commissioner Commissioner following each Accomplishment Report of all concerned concerned Quarter Regional Divisions, by Functions (see Annex D3) Semestral Accomplishment Reports � Consolidated Semestral Regional Director Assistant On or before the 18th day of the month Accomplishment Report of all Commissioner following each Semester Regional Divisions (see Annex concerned E) � Progress Report of the Regional Assistant The Commissioner On or before the 20th Divisions (see Annex F) Commissioner and the Deputy day of the month concerned Commissioner following each concerned Semester Annual Office Performance Evaluation � Annual Regional Office Regional Director Assistant On or before the 20th Performance Evaluation of the Commissioner day of the month after Regional Divisions, per "Other concerned the end of the year Priority Projects/ Activities" in the 2010 Strategy Map [40%] (see Annex G1) 3

REPORT OFFICE/ SUBMITTED DUE DATE PERSON TO RESPONSIBLE Annual Office Performance Evaluation � Consolidated Annual Regional Assistant ACIR, Policy and On or before the 23rd Office Performance Evaluation Commissioner Planning Service day of the month after of the Regional Divisions concerned the end of the year [National and Regional Offices - prescribed KPIs] (see Annex G2) � Ranking of the Regional ACIR, Policy and The On or before the 26th Divisions, by function Commissioner day of the month after Planning Service, the end of the year through the Planning Division 2. The Planning Officer of each Regional Office shall be responsible for the consolidation and submission of all documents prepared and submitted by the Regional Division Chiefs and Regional Directors. They shall likewise be responsible for the monitoring and follow-up with the Regional Division Chiefs, Assistant Regional Directors and Regional Directors regarding the consolidation and submission of all Accomplishment Reports (on a monthly, quarterly and semestral basis), and the Annual Performance Evaluation. 3. The Planning Division shall be furnished copies of the following reports prepared and submitted in accordance with Section III (1) of this Order: � Consolidated Quarterly Accomplishment Report of all Regional Divisions, by Functions (to be prepared by Assistant Commissioner) � Progress Report of the Regional Divisions (to be prepared by Assistant Commissioner) Such reports shall be used to validate the Annual Office Performance Evaluation of the Regional Divisions relative to: (i) KPIs prescribed by the National Office (60%); and (ii) KPIs for "Other Priority Projects/ Activities" in the CY 2010 Strategy Map prescribed by the Regional Director (40%). 4. The reports shall be used as bases/ inputs in the formulation of the CY 2011 Strategy Map and Priority Programs that shall be presented to MANCOM for review and approval. 5. The ACIR, Policy and Planning Service, shall prepare the following documents, for submission to the Commissioner on or before the 31st of January of the following year: 4

� A compilation of the Office Performance Evaluation Reports, per Region, and per Regional Division; and, � An Analysis Report on the results of the accomplishment of KPIs IV. TRANSITORY PROVISIONS The implementation of the Regional Divisions' KPIs, and the Accomplishment Reports to be prepared relative thereto, shall cover the period beginning in the month of July 2010. V. REPEALING CLAUSE All revenue issuances or portions thereof that are inconsistent herewith are hereby repealed or amended accordingly. However, regular Reports required by other Revenue Services which are being prepared and submitted by the Regional Divisions, other than the Reports required in this RMO, shall continue. VI. EFFECTIVITY This Order takes effect immediately. (Original Signed) JOEL L. TAN-TORRES Commissioner of Internal Revenue B-1 � jam 5