RMO No. 37-2010 — Prescribes the guidelines and procedures relative to the BIR 2010 Key Performance Indicators for the Revenue Regions and Revenue District Offices Digest | Full Text | Annex A | Annex B-G

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City March 26, 2010 REVENUE MEMORANDUM ORDER NO. 37-2010 To : All Deputy Commissioners (DCIRs), Assistant Commissioners (ACIRs), Regional Directors, Revenue District Officers and Others Concerned Subject : BIR 2010 Office Key Performance Indicators (KPIs) for the Revenue Regions and Revenue District Offices _____________________________________________________________________________ I. OBJECTIVES This Order is issued to: 1. Prescribe and provide details of the BIR's CY 2010 Revenue Region (RR) and Revenue District Office (RDO) Performance Measures by indicating the Priority Programs, Key Performance Indicators, Program Weights, KPI Weights, Targets, as well as the Office(s) responsible to implement and monitor each Priority Program; (Refer to Annex A) 2. Prescribe the policies and procedures for monitoring and evaluating the performance of RRs and RDOs vis-a-vis the Office Performance Measures; 3. Align the Priority Programs/Activities/Projects of all Revenue Regions and Revenue District Offices to the 2010 BIR Strategy Map; and 4. Articulate the progress of BIR initiatives and tax reforms under the Performance Governance System. II. POLICIES 1. Key Performance Indicators (KPI) shall be used as a basis for the performance monitoring and evaluation of incumbent heads of RRs and RDOs for CY 2010. 2. A separate Revenue Memorandum Order prescribing and providing the details of the 2010 KPIs for the Large Taxpayers Service (LTS) - Regular and LTS � Excise together with all the divisions under their supervision shall be issued. 3. The two (2) LT Services shall be clustered with all the RRs for ranking purpose based on their corresponding overall KPI ratings. The LTS audit offices shall be clustered with all RDOs for similar ranking purpose. The previous cluster shall be referred to as Group "A" while the latter cluster shall be referred to as Group "B". 4. The incumbent head of office of the top five (5) under Group "A" may be assigned in the Office of their preference or retained in their present area of assignment; while those ranked in the bottom five (5) shall undergo the Senior Executive Development Program. 1

5. The incumbent heads of office of the top ten (10) ranking in Group "B" may be assigned in the RDO of their preference or retained in their present area of assignment; while those ranked in the bottom ten (10) shall undergo the Senior Executive Development Program. 6. The definitions and criteria used in the particular 2009 KPIs shall be adapted if the same KPI is retained as a 2010 KPI. However, if there is a need to define/redefine or clarify any 2010 KPI, the concerned ACIR who is the Measure Owner may, at a later date, issue a corresponding memorandum to effect such, with the approval of the Commissioner. 7. A Performance Contract per Office shall be signed by the Head of Office and noted by the Commissioner/Deputy Commissioners (DCIRs) and submit to the Assistant Commissioner, Policy and Planning Service not later than April 15, 2010. (Refer to Annex B) 8. The Commissioner, DCIRs, and Assistant Commissioners (ACIRs) shall perform periodic checking and systematic documentation on the progress of each of the KPI included in the Performance Contracts of their supervised Offices. The concerned DCIR shall discuss during the regular Management Committee (MANCOM) Meeting issues/outstanding accomplishments reported on any KPI under its area of jurisdiction. 9. The ACIRs shall prepare the Annual Office Performance Evaluation of the RRs and RDOs for each of the KPIs they are monitoring. 10. There will be an additional ten (10) points bonus from the members of MANCOM: 10.1 Commissioner = 3 10.2 DCIR, Operations Group = 2 10.3 DCIR, Information Systems Group = 1 10.4 DCIR, Legal and Inspection Group = 1 10.5 DCIR, Resource Management Group = 1 10.6 DCIR, Special Concerns Group = 1 10.7 DCIR, Tax Reform Administrative Group = 1 11. An interim performance rating maybe administered depending on the exigencies of service as determined by MANCOM. III. PROCEDURES Hereunder are the procedures in the preparation and submission of the accomplishment reports and office performance evaluation for CY 2010 Priority Programs and KPIs: 2

A. Preparation and Submission of Accomplishment Reports 1. Prepare Monthly Accomplishment Report Report Office/Person Submitted To Due Date Responsible Respective Regional Not later than the 5th 1.1 RDO Accomplishment Revenue District Director day after end of each month on KPIs (using format Officer in Annex C1) 1.2 Revenue Region Regional Director Assistant Not later than the Commissioner 10th day after end of Accomplishment on monitoring the KPI each month KPIs (using format in Annex C1) 1.3 Consolidated Accom- Regional Director Assistant Not later than the plishment of all RDOs Commissioner 10th day after end of (using format in Annex monitoring the KPI C2) each month 2 Prepare Consolidated Quarterly Accomplishment Report Report Office/Person Submitted To Due Date Responsible 2.1 RDO Accomplishment Revenue District Respective Regional Not later than the 7th on KPIs (using format in Officer Director day of the month Annex D1) following each Assistant quarter 2.2 Revenue Region Regional Director Commissioner Not later than the Accomplishment on Regional Director monitoring the KPI 10th day of the month KPIs (using format in following each Annex D1) Assistant quarter Commissioner Not later than the 2.3 Consolidated Accom- monitoring the KPI 10th day of the month plishment of all RDOs following each (using format in Annex quarter D2) 3 Consolidated Semestral Accomplishment/Status Report Report Office/Person Submitted To Due Date Responsible Deputy 3.1 Consolidated Accom- Assistant Commissioner Not later than the plishment of all RRs and Commissioners 12th day of the RDOs (using the format Commissioner month following in Annex E) Deputy each semester Commissioners Not later than the 3.2 Status Assessment Re- 12th day of the port of RRs and RDOs month following (using the format in each semester Annex F) 3

B. Evaluation of Office Performance Prepare Annual Office Performance Evaluation (using the format in Annex G) Activity Office/Person Submitted To Due Date Responsible Commissioner and 1. Annual Performance Assistant Deputy Not later than the Evaluation of RRs and Commissioners Commissioners 18th day of the RDOs month after the end Commissioner of the year 2. MANCOM additional MANCOM bonus or minus points Not later than the 21st day of the month after the end of the year C. Documentation The Office of the Commissioner, thru the Policy and Planning Service, shall be responsible in preparing the overall final ranking of Revenue Regions and Revenue District Offices. The Planning Division must be provided with copy of all documents prepared and submitted as abovementioned. These documents shall serve as means of validation in the preparation of the Office Annual Performance Evaluation for the Revenue Regions and Revenue District Offices. Likewise, these will be used as basis/input for next year's strategy map and priority programs to be recommended to MANCOM. D. Analysis of Revenue Regions and Revenue District Offices KPIs Activity Office/Person Submitted To Due Date Responsible Commissioner 1. Prepare the Final Report ACIR, Policy and Not later than the of the Office Performance Planning Service 20th day of the Evaluation Report per month after the end KPI of the year 2. Analysis Report on the ACIR, Policy and Commissioner Not later than the result of accomplishment Planning Service 20th day of the of KPIs month after the end of the year 4

IV. REPEALING CLAUSE All revenue issuances or portions thereof inconsistent herewith are hereby repealed or amended accordingly. V. EFFECTIVITY This Order takes effect immediately. (Original Signed) JOEL L. TAN-TORRES Commissioner of Internal Revenue B-1 5