RMO No. 31-2013 — Prescribes the Inter-Agency Task Force Memorandum Circular Nos. 2013-01 and 2013-01-A re: Guidelines on the Grant of the Performance-Based Incentives for FY 2013 Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City November 6, 2013 REVENUE MEMORANDUM ORDER NO. 31-2013 TO : All Revenue Officials Concerned SUBJECT : Prescribing the Inter-Agency Task Force Memorandum Circular (MC) Nos. 2013-01 and 2013-01-A re: Guidelines on the Grant of the Performance-Based Incentives for FY 2013 under Executive Order No. 80 I. BACKGROUND President Benigno S. Aquino III has issued Executive Order No. 80 dated July 20, 2012, directing the adoption of the Performance-Based Incentive System (PBIS) for Government Employees. The PBIS consists of the P 5,000 across-the-board in the form of the existing Productivity Enhancement Incentive (PEI) and a top-up bonus known as the Performance-Based Bonus (PBB). This PBB shall be given to a government employee in accordance with his/her contribution to the accomplishment of the Department/Agency's overall targets and commitments. The implementation of the PBB started in CY 2012. II. OBJECTIVE This Order is issued to prescribe the Policies, Guidelines, and Procedures in the implementation of the Performance-Based Incentive System and the criteria and conditions for the grant of PBB in FY 2013. III. POLICIES AND GUIDELINES 1. All officials and employees of Departments/Agencies, State Universities and Colleges (SUCs), Government Owned and Controlled Corporations (GOCCs) holding regular plantilla positions, and contractual and casual personnel having an employer-employee relationship with the said agencies, and have rendered at least nine (9) months of service for the year 2013. 1

2. The PBB is characterized by a two-step system of ranking the offices under a Department and the employees within the offices according to their performance as measured by verifiable and credible indicators of performance based on the pillars of the Results-Based Performance Management System (RBPMS): 2.1 Department's/Agency's MFO and Performance Targets as specified in its Organizational Performance Indicators Framework (OPIF) and consistent with the targets reflected in the 2013 Approved Budget; 2.2 Department's/Agency's commitments to the President that are supportive of the priorities under Executive Order No. 43; and 2.3 Good Governance conditions based on the performance drivers by the Administrative Order (AO) 25 Inter-Agency Task Force. 3. The Department/Agency/Unit shall be eligible for the Performance-Based Bonus, provided that the following criteria shall be satisfied: 3.1 Achieve at least 90% of each one of the performance targets for the delivery of MFOs, Support to Operations (STO), and General Administration and Support Services (GASS); 3.2 Achieve at least 90% of each one of the priority program/project targets under the five (5) Key Result Areas (KRAs) of Executive Order No.43; 3.3 Satisfy 100% of the Good Governance conditions set by the Inter-Agency Task Force for CY 2013; and 3.4 Ranking of performance of bureaus/delivery units and the personnel within the bureaus/delivery units. 4. For FY 2013, inability to meet any of the targets in item no. 2 of this Section, will render departments/agencies ineligible for the PBB. Inconsistency and inaccuracy of the compliance reports/certification made by the department/agency may also be considered a ground for disqualification to the PBB, upon proper determination and due process. 2

5. The qualified agencies, bureaus, offices or delivery units shall be ranked as follows: Ranking Performance Category Top 10% Best Bureau/Office/Delivery Unit Next 25% Better Bureau/Office/Delivery Unit Next 65% Good Bureau/Office/Delivery Unit 6. In determining eligibility of personnel for the PBB, the following shall be observed: 6.1 Employees belonging to the First and Second Levels should receive a rating of at least "Satisfactory" under the existing Performance Evaluation System; 6.2 Officials belonging to the Third Level should receive a rating of at least "Very Satisfactory" under the Career Executive Service Performance Evaluation System (CESPES). Payment of the PBB to Third Level Officials shall be contingent on the results of CESPES; 6.3 The contractual and casual personnel who may be entitled to the PBB shall be those compensation are charged to the lump sum appropriation under Personnel Services; or those occupying positions in the DBM- approved contractual staffing pattern of the agencies concerned. They may be included in the ranking along with the regular personnel; 6.4 Personnel on detail to another government agency for six (6) months or more as of November 30, 2013 shall be included in the ranking of employees in the recipient agency that rated his/her performance; 6.5 Personnel on scholarship may be included in the ranking, provided they qualify based on the performance criteria established by the Performance Management Group of the Department/Agency and approved by the Department Secretary/ Head of Agency; and 6.6 Personnel found guilty of administrative and/or criminal cases filed against them and meted penalty in FY 2013 shall not be entitled to the FY 2013 PBB. If the penalty meted out is a reprimand, such penalty shall not cause the disqualification to the PBB. 3

7. Officials and employees of bureau, offices or delivery units that qualified for the PBB shall be forced ranked, as follows: For the best and better bureaus: Ranking Individual Performance Category Top 15% Best Performer Next 30% Better Performer Next 55% Good Performer For the good bureaus: Ranking Individual Performance Category Top 10% Best Performer Next 25% Better Performer Next 65% Good Performer IV. PROCEDURES 1. The BIR shall prepare the following matrices using the Forms prescribed in the Inter-Agency Task Force Memorandum Circular No. 2013-1 dated August 1, 2013, signed by DBM Secretary Florencio B. Abad: 1.1 Form A � Cascading of the Department/Agency Performance Targets 1.2 Form A-1 � Details of Bureau/Office Performance Indicators and Targets 1.3 Form B � Department Targets on Key Programs and Projects Targets These Forms shall be submitted to the Department of Finance for their consolidation with all the Agencies under their jurisdiction. 2. The Offices concerned shall prepare and submit annual accomplishment report, depending on the cut-off dates prescribed, relative to the following performance indicators: 4

Performance Indicators Person Submitted Date of Submission (PIs) Responsible To Cut-off Dates of Reports on PIs 11/30/13 12/31/13 3/31/14 A. Major Final Output (MFO) Revenue District Regional December January 3, April 3, 2014 1. Collection Officers (RDOs) Director (RD) 3, 2013 2014 LTDO ACIR, LTS Collection Report LTS Divisions (Actual Collection vs with collection Goal) performance Consolidated RDs DCIR, December January 5, April 5, 2014 Regional/LTS ACIR, LTS Operations 5, 2013 2014 Collection Report Group BIR Collection DCIR, CIR, copy December January 7, April 7, 2014 Performance for CY Operations furnished 7, 2013 2014 2013 Group through ACIR, ACIR, Collection Planning and Service Management Service (PMS) Consolidated Chief, Planning CIR, thru December January 9, April 9, 2014 channels 9, 2013 2014 accomplishments on and DOF Secretary December January April 10, 10, 2013 10, 2014 2014 Form A and Form B Programming Division (PPD) 2. Collection Growth RDOs RD December January 3, April 3, 2014 Collection Report LTDOs and ACIR, LTS 3, 2013 2014 2013 Actual Chief, LTS Collection vs 2012 Divisions with December January 5, April 5, 2014 Actual Collection) collection 5, 2013 2014 performance Consolidated Regional DCIR, Regional/LTS Director Operations Collection Report ACIR, LTS Group 5

Performance Indicators Person Submitted Date of Submission (PIs) Responsible To Cut-off Dates of Reports on PIs BIR Collection Performance for CY 11/30/13 12/31/13 3/31/14 2013 DCIR CIR, copy December January 7, April 7, 2014 Operations furnished Group thru ACIR ACIR, PMS 7, 2013 2014 Collection Service Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 April 10, Form A and Form B RATE Task Force DOF Secretary December January 2014 DCIR, Legal 10, 2013 10, 2014 B. Support to Operations Group DCIR, Legal April 3, 2014 Frequency of filing of Cases Group December January 3, with DOJ 3, 2013 2014 April 5, 2014 Report on RATE cases CIR, copy furnished December January 5, filed with DOJ ACIR, PMS 5, 2013 2014 Validated Report on RATE cases Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 Form A and Form B DOF Secretary December January April 10, 10, 2014 10, 2014 2014 C. General Administration Chief, Budget ACIR, PMS December January 5, April 5, 2014 and Support Services Division and 5, 2013 2014 (GASS) Chief, Accounting 1. Budget Utilization Rate Division Consolidated Report on Budget Utilization Rate Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 Form A and Form B DOF Secretary December January April 10, 10, 2013 10, 2014 2014 2. Submission of Financial Statements to the Commission on Audit (COA) 6

Performance Indicators Person Submitted Date of Submission (PIs) Responsible To Cut-off Dates of Reports on PIs Submission of Report on Financial Statements 11/30/13 12/31/13 3/31/14 RD/ Chief, Chief, December January 5, April 5, 2014 Finance Division Accounting Division 5, 2013 2014 Chief, Revenue Accounting Division Consolidated Report on Chief, ACIR, PMS December January 7, April 7, 2014 Financial Statements Accounting 7, 2013 2014 Division Chief, Revenue Accounting Division Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 Form A and Form B DOF Secretary December January April 10, 10, 2013 10, 2014 2014 3. Good Governance Condition 3.1 In line with the required 100% compliance on good governance conditions set by the Inter-Agency Task Force (IATF) under Section 6.0 of the aforementioned MC for FY 2013, for agencies to be eligible for CY 2013 PBB, all concerned officials are hereby directed to comply with the prescribed deadlines in the preparation of reports, submission of these reports to Internal Communication Division (ICD) and posting of said reports either by the ICD or the responsible office. Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Posting A. Posting in the BIR's website under the Transparency Seal of the following reports: 1. Agency's mandates and functions, name of its officials with their positions and designation and contact information: 7

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Agency's mandates Planning and To ICD: Not Systems Posting and functions Management later than Development Not later Service January 10 Division (SDD) thru ICD than of each January year 15 of each year Name of officials. Human To ICD: SDD thru ICD Monthly positions, designation Resource Monthly - -Not and contact Development Not later later information Service than the 10th day of than the the 10th day following of the month following month 2. Statement of Budget To ICD: SDD thru ICD Within 2 Allotments and Division (BD) Within 8 working Obligations for 2011 working and 2012 hours after days (consolidated) receipt by upon DBM of the receipt from BD 2012 report 3. Financial Accountability Reports (FARs) for 2013 Statement of Finance To BD and Appropriations, Division (FD) AD: Every Allotments, 10th day of Obligations, the Disbursements and following Balances quarter (consolidated) To BD: Detailed Statement Accounting Every 15th of Current Year's Division (AD) day of the Obligations, following Disbursements and BD quarter Unpaid Obligations (consolidated) To AD: Every 5th day of the following quarter To DBM & BD COA: Every 30th day of the 8

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Posting following Quarter BD To ICD for SDD thru ICD Within 2 posting: working Within 8 days working upon hours after receipt receipt by from BD DBM List of Agency Budget FD To BD: Matrix (ABM)/SAROs Every 10th and Sub-Allotment day of the Advice (consolidated) following quarter BD To DBM & COA: Every 30th day of the following Quarter BD To ICD for SDD thru ICD Within 2 posting: working Within 8 days working upon hours after receipt receipt by from BD DBM Summary of Prior FD To AD: Every 10th Year's Obligations, day of the following Disbursements and quarter Unpaid Prior Year's To DBM & COA: Every Obligations 30th day of the (consolidated) following AD Quarter AD To ICD for SDD thru ICD Within 2 posting: working Within 8 days working upon hours after receipt receipt by from AD DBM 9

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Summary Report of Posting Disbursements (consolidated) FD To AD: Physical Report of Every 10th Operation (consolidated) day of the following quarter AD To DBM & COA: Every 30th day of the following Quarter AD To ICD for SDD thru ICD Within 2 posting: working Within 8 days working upon hours after receipt receipt by from AD DBM Regional/ To District Offices Measure & Concerned Owners : Offices of the Every 10th National day of the Office following quarter Planning and To BD: Programming Every 20th Division (PPD) day of the following quarter BD To DBM: Every 30th day of the following Quarter BD To ICD for SDD thru ICD Within 2 posting: working Within 8 days working upon hours after receipt receipt by from BD DBM 10

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Quarterly Report of Posting Income Revenue To BD: 4. Approved budget for Accounting Every 20th 2013 and Physical Division (RAD) day of the Plan/MFO following targets(consolidated): quarter Approved budget BD To DBM: MFO targets Every 30th day of the following Quarter SDD thru ICD Within 2 working BD To ICD for days posting: upon Within 8 receipt working from BD hours after receipt by DBM SDD thru ICD Within 2 working BD To ICD for days posting: upon Within 2 receipt working from BD days upon receipt of GAA PPD To BD: 7 working days before the prescribed deadline BD To DBM: On or before the prescribed deadline SDD thru ICD Within 2 working BD To ICD for days posting: upon Within 8 receipt working from BD hours after 11

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of 5. Major programs and PPD receipt by SDD thru ICD Posting projects classified DBM Within 2 according to the five working Key Result Areas To ICD: Not later than days January 10 upon receipt of each from year PMS 6. Status of Project To PMS: Implementation of Proponent Monthly � major (PP)/ Process Every 5th programs/projects Owner day of the following month PPD To ICD: SDD thru ICD Within 2 Monthly � working Every 10th days day of the upon following receipt month from PMS 7. Annual Procurement Procurement N.A. PD Monthly � Every Plan, name of Division (PD) 5th day of the suppliers/ following contractors/consultants Administrative N.A. AD month Division (AD) B. Maintain/Update the PD N.A. PD Within 3 posting of all invitations to working Bid and awarded contracts N.A. AD days after in the Philippine AD issuance of Government Electronic Notice to Procurement System Proceed (PhilGEPS) per RA 9184 C. Liquidation of all cash AD To COA: On N.A. N.A. advances to officials and FD or before employees within the the reglementary period prescribed covering transactions of FY deadline 2013, per requirement of the Commission on Audit (COA). The Department/agency shall submit directly to COA the 12

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Posting Report on Ageing of Cash Advances duly signed by the Agency Head, Head of Accounting Office and verified by the Agency's Resident COA Auditor. D.Update the department's/ Client Support N.A. SDD thru ICD Monthly agency's Citizen's Charter Service (CSS) � Every or its equivalent. Service Concerned 5th day of Charter, to reflect Regional/ the improvements in the Concerned N.A. District Office following service delivery as Regional/ month mandated by RA 9485 and District Office post the Citizen's Charter or its equivalent in the department/agency website E. Compliance with Personnel To CSC: On N.A. N.A. submission and review of Division or before the Statement of Assets, (PerD) the Liabilities and Net Worth prescribed (SALN) of officials and Human deadline employees per RA 6713. Resource Management Unit (HRMU) F. Compliance Certificate on the following: Agency ICD N.A. N.A Transparency Seal following the template in Annex 6 of IATF MC No. 2013-01. PhilGEPS BAC compliance for FY Secretariat 2013 to be issued by the BAC Chairman, (National Office and the Head of the and concerned Procuring Entity Regional Office) following the template in Annex 7 of IATF MC No. 2013-01. (Note: cut-off dated for 13

Responsible Office Good Governance Preparation Submission Posting of Deadline Conditions of Report Deadline Report of Posting transactions covered in the certification is November 15, 2013) Cash Advance Accounting liquidation through Division the report on aging of cash advances to Finance officials and Division employee back in FY 2013 following the template in Annex 8 of IATF MC No. 2013-01. (Note: cut-off date for transactions covered in the certification is November 15, 2013) Updating of the Citizen's Charter or its equivalent, to reflect process Client Support improvements in Service service delivery following the Concerned template in Annex 9 Regional/ of IATF MC No. District Office 2013-01. Submission and Personnel review of SALN of all Division offices and employees HRMU of following the concerned template in Annex Regional 10 of IATF MC No. 2013-01. Office 3.2 All "Compliance Certificates" that are already signed by the Commissioner shall be submitted to the Assistant Commissioner, Planning and Management Service, attention: Assistant Chief, Planning and Programming Division, not later than November 20, 2013. 14

The cut-off date for the transactions covered in the Certifications on Transparency Seal, PHILGeps Posting, and Liquidation of Cash Advances is November 15, 2013. 3.3 The Planning and Programming Division shall collate all the Certifications and prepare the transmittal letter for the DOF Secretary for submission to DOF not later than November 30, 2013. V. REPEALING CLAUSE All revenue issuances and/or portions thereof that are inconsistent herewith are hereby repealed, revoked, amended or modified accordingly. VI. EFFECTIVITY This Order shall take effect immediately. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue N-1 CCK ______ LSVR ______ ZBC ______ LPO ______ FDB ______ MVBV ______ 15