RMO No. 17-2021 — Prescribes the guidelines, policies and procedures in the attainment of ISO 9001:2015 Quality Management System (QMS) Certification Digest | Full Text | Annex A | Annex B

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE May 20. 2021 JUREAI RECOROS MGT.DIVISION NnTTt U OF INTERNAL REVENUE MAY 2 0 2021 UG 9:304.M. em

REVENUE MEMORANDUM ORDER NO./% -202

SUBJECT Guidelines, Policies and Procedures in the Attainment of IS0 9001:2015 Quality Management System (QMS) Certification TO All Internal Revenue Officials, Employees and Others Concerned.

I. BACKGROUND AND OBJECTIVE

the Purpose Administrative Order No. 161, s.2006) was issued iast February 23, 2007. Owned and Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs), to adopt the Government-Wide Quality Management Program. Standards to Implement the Government Quality Management Program (Amending for directing all departments and agencies of the Executive Branch, including all Government Executive Order (EO) No. 605 on Institutionalizing the Structure, Mechanisms and

requirements. The ISO Certification helped the Bureau to provide consistent, efficient and taxpayer-oriented quality service. demonstrate the ability to consistently provide services that meet customer and regulatory Business Registration Processes (Individual/Non-Individual) for all Revenue District Offices (RDOs) under Revenue Region No. 7 -- Quezon City. ISO 9001 is being defined as the international standard that specifies requirements for QMS and is used to received Certification on ISO 9001:2008 Quality Management System (QMS) for In compliance with the said EO, the BIR had successfully adopted, implemented, and

analysis, the Bureau is aiming to sustain its ISO Certification by adopting the recent is issued to provide guidelines, policies and procedures in the attainment of IS0 900 1:2015 changes and expand the coverage of RDOs undergoing ISO Certification; hence, this Order QMS Certification. With the release of IS0 9001:2015 version, which is more on risk-based approach and

H COVERAGE

Registration Processes: The scope of the ISO 9001:2015 Certification includes the following Business

1. Primary Registration

of Registration (COR). trusts, or a corporation and other juridical entities, upon application and full compliance with the registration requirements prescribed under existing issuances and/or regulations. is registered with and consequently included in the registration database of the BIR. This includes application and issuance of Taxpayer Identification Number (TIN) and Certificate It is the process by which a person, whether an individual, including estates and

. Secondary Registration

,which includes the following activities: It shall pertain to subsequent registration activities after the issuance of BIR COR

b. a Application for Authority to Print Principal Receipts, Invoices and other Registration of Cash Register Machines (CRMs), Point-of-Sales (POS) Machines, Special Purpose Machines (SPMs) and other receipting system which includes: 2.Issuance of Permit to Use (PTU). Supplementary Receipts/Invoices; and I. Account Enrollment in eAccreg System; and Registration of Books of Accounts;

I. POLICIES AND GUIDELINES

adopt a risk-based approach process. This involves identifying potential risks and opportunities that may arise in the performance of services/functions. It also involves identification of preventive actions to minimize, if not eliminate the occurrence of such risks, which will ensure effectiveness of the implementation of QMS. A separate issuance will be issued for the detailed discussion on the identification and management of risks. To conform with the requirements of IS0 9001:2015 standards, the Bureau needs to

9001: 2015 QMS Certification: In the meantime, the following must be adhered to in relation to the attainment of ISO

1. The Revenue Region shall manage the preparation and planning towards ISO (Client Support Service, through Taxpayer Service Programs and Monitoring Certification. All RDOs that intend to undergo such Certification must coordinate with their respective Region, in turn, the latter will coordinate with the Process Owner Division) in the National Office.

2. All RDOs intending to undergo ISO Certification and their respective Region must allocate funds in their Office's Project Procurement Management Plan (PPMP) to cover all expenditures related to the said Certification.

3. Preparation for ISO Certification shall be for a period of seven (7) to twelve (12) months based on the ISO QMS Road Map (Annex A). 4. Each Revenue Region shall form a Coordinating Team composed of personnel from provided herein who will oversee the compliance to the IS0 9001:2015 Standards of each RDO covered. the Office of the Regional Director and/or Assistant Regional Director and an Internal Quality Audit (IQA) Team represented by at least one (1) member per RDO and those from offices/divisions of the concerned Regional Office based on the qualifications

5. Any recommendation for update or change in the existing QMS policies shall be coursed through by the concerned office to the process owner for evaluation.

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6. Once certified, the Regional Coordinating Team shall submit to the Process Owner the ISO 9001:2015 QMS Certificates for posting in the BIR Website under the Transparency Seal.

7. Under extraordinary circumstances 1ike the Coronavirus Disease 2019 (COVID-19) health standards and other necessary protocols. pandemic, submission of requirements and/or other procedures that can be done online such as trainings and meetings must be employed to ensure observance of minimum

8 To measure the effectiveness and efficiency of QMS standards, the following Key

Performance Indicators (KPIs) shall be maintained by the covered RDOs:

Hoemeoeandits Daa Source/s aD TA AT Processt KPIComparative R DFGE Target 23

2 Certificate of Registration Application and Issuance TIN and TINCard is initially set at The KPI target 7%

3 4 5 6 Cash Register Machine(Activated/Approved) Print (ATP) Application and Issuance (Initial) Books Registration eAccREG Enrollment (COR) & Authority to Authority to Print (ATP) (Subsequent) Application Application and Issuance of Accounts Account [ and eAccREG Generated CSS Transactional Record (Issued/Processed) versus using Logsheet (Applied) RDC System-Generated Transactions Transactions System-

T Customer (CRM) and Point-of-Sale versus Issuance of Permit (POS) Approval Satisfaction and (Applied) Based on the CSS result Logsheet of KPI target on

Survey Customer Survey Satisfaction level satisfaction of

8 9 (Subsequent/Update) (Initial/New) Accuracy on the Issuance of of Accuracy on the Issuance No. COR/ATP COR No. Regenerated/Reprinted per at 65% of the Regenerated/Reprinted per RDC report less No. CORs/ATPsRegenerated/ Reprinted due to taxpayer CORs/ATPs processed per RDC and system errors vs. No. of 1901/1903 report less No. of total no. of of CORs/ATPs CORs Initial target set of I no errors Initial target set 4.0 applications processed at 65% of the total rating shall be o. has of of

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10 of ATP (Subsequent) Accuracy on the Issuance Regenerated/Reprinted per processed per 1906 COR processed per 1905 No RDC report less No. of Reprinted due to taxpayer and system errors vs. No. of Reprinted due to taxpayer and system errors vs. No. of ATPS ATP CORs of Regenerated/ Regenerated/ Applications Applications ATPsInitial target set applications for at has no errors ATP processed COR processed total applications for has no errors 65% of the no. of

9. For ease of documentation and retrieval, documents processed by CSs for frontline services covered by ISO 9001:2015 Certification shall be properly filed and labelled in the following manner:

LABEL COLORLABEL CODET DESCRIPTIONE Red Blue Orange Yellow Ac D B O AaB AbB Registration of Books of Accounts OriginalApplication of Certificateof Updates to COR Subsequent Application of ATP Receipts/ Permit to Use Cash Register Machine New Business Registrants, together with Receipts/Invoices Invoices (CRM) and Point of Sale (POS) Machine Original Application of Certificate of Registration (COR) for Individual New Business Registrants, Application for Authority to Print (ATP) Receipts/Invoices Application for Authority to Print (ATP) Registration (COR) for Non-Individual together with

IV ROLES AND RESPONSIBILITIES

A. National/Regional Document Controller shall:

1) Establish, document, implement, and maintain a procedure for the control of 2) Maintain the master copies and master list of the Quality Manual and ISO 3) Ensure that the current versions of controlled documents are available and quality 4) Ensure the traceability of documents; 5) Implement the enhancement of the procedure for control of records; and documents and records; Manual, including the master list of externally generated documents and forms are used; hence, prohibits the use of obsolete documents and records: references:

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6) Coordinate with Section and/or Division Heads on all matters concerning Records Management, specifically records generated from the Client Support Section.

B. Internal Quality Audit (IQA) Team shall:

2) Ensure the continuous improvement particularly on the conformity of the 3) Prepare and maintain audit plan and oversee its implementation; 5} 1) Monitor and measure the effectiveness of all management system processes; 4) Conduct internal quality audit to ensure that policies and procedures relative to Recommend necessary corrective actions through the issuance of a Corrective organization as required with QMS standards; QMS are strictly implemented;

6) Conduct follow-up audit to verify implementation and effectiveness of corrective 7) Report to top management the status of the audit findings and other issues relative to QMS implementation. Action Request (CAR) Form for every non-conformity found during the conduct of audit: action stated in CAR Form; and

C. Regional Coordinating Team shall:

3) Collate and follow-up reports, updates and other ISO-related matters to the 2) Coordinate the ISO activities with the ISO Core Team of the Region (IQA Team. 1) Coordinate with the Process Owner the activities to be undertaken by the Region concerned offices/personnel. towards attaining the ISO Certification; Regional Director, Asst. Regional Director, RDOs and other concerned offices); and

D. Support Team

a) Finance Division shall:

1) Ensure that funds required for provisions and maintenance of infrastructures meetings, seminars, workshops, travels and per diem are likewise provided. and other expenses necessary for Regions/RDOs to perform tasks related to provided and that funds required by QA Team in relation to trainings. Business Registration in compliance with ISO standards are immediately

b) Administrative and Human Resource Management Division/Administrative Section shall:

2) Ensure that work area/environment and other support services are being 3) Ensure that funding for seminars, trainings and other expenses related to 4) Ensure that all tasks performed are aligned with QMS standards. 1) Ensure that materials/supplies needed by Regions/RDOs are procured and maintained to sustain the good working condition of concerned office: QMS are included in the Project Procurement Management Plan (PPMP) and Annual Procurement Plan (APP); and delivered on time:

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c) Human Resource Management Section shall:

2) Review the results of competence evaluation conducted for Regional/District 3) Facilitate conduct of appropriate Human Resource (HR) interventions (e.g. 5) Process recommendations for promotions and QMS related trainings of QA 4) Ensure 1) Ensure that concerned Regional/District employees are aware of their roles skills, and experience are maintained and updated accordingly in the 201 files employees performing functions affecting service quality; of each employee; and and responsibilities relative to the attainment of the Bureau's goals and relevant trainings) to enhance employees's capabilities; RSO/RRSO/Memorandum/Notices, certificates, attendance sheet, etc.). Team members. objectives: that the records of education, training Gi.e.

d) Client Support Section shall:

2) Recommend improvements/innovations in the delivery of frontline service to 1) Perform all tasks related to Business Registration Process aligned with QMS the Revenue District Officer/Asst. Revenue District Officer. standards; and

E. National/Regional Coordinators shall:

4) Collate and make follow-up on reports, assignments and updates regarding matters 2) Coordinate with the National/Regional QMS Team; 3) Coordinate with the QA Team about the status of Corrective Actions; and 1) Prepare QMS documents (Work Plan, Notices of Meeting, Minutes of Meeting. related to QMS documentation. Minutes of Management Review, Reminders/Call-ups expected assignment, RRSO. etc.):

F. The Revenue Data Center (RDC) shall:

2) Provide technical support to covered RDOs to ensure compliance with the QMS 1) Generate the required QMS reports for preparation of Key Performance Indicator 3) Handle and maintain the Information and Communications Technology (ICT) requirements of the Bureau, such as hardware, software, network and office (KPIs) of each covered RDOs; standards and efficient delivery of frontline services; and automation.

G. Planning and Management Service thru Management Division shall:

2) Regularly assess and update such risks. 1) Draft revenue issuance and risk management manual detailing the process of identification and management of risks; and

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."H. Process Owner [Client Support Service thru Taxpayer Service Programs and Monitoring Division (TSPMD)] shall:

2) Ensure integration of the QMS requirements into the organization's business 3) Promote the use of the process approach and risk-based thinking: 1) Ensure that the quality policy and objectives are established, reviewed and maintained 1) Recommend approval of Quality Manual and procedures; registration processes; for the QMS and are compatible with the context and strategic direction of the organization;

5) Evaluate requests for change in ISO-related procedures or documents for evaluation and consultation with concerned offices;

7) Participate in the conduct of initial and final gap assessment, management review and 6) Approve QMS documents; 8) Communicate/Disseminate any updates/changes made at the reasonable time to the during the third party audit; and concerned RDO.

V PREPARATORY PROCEDURES

The Revenue Region and the Covered Revenue District Offices shall:

1. Identify the RDOs to undergo ISO Certification;

2. Conduct preliminary meetings with the concerned officials and personnel of the come-up with a detailed work plan in obtaining such certification. A sample of a detailed work plan is attached herewith as Annex B: RDOs that will undergo ISO Certification to discuss issues and concerns and

3. Identify the budget requirement and availability of funds to cover all expenditures related to ISO Certification including procurement of third-party auditor who will and to identify resources to be used during their QMS Certification; conduct audit of the identified RDOs. The concerned RDO and/or Regional Office Certified RDOs to observe and interview personnel on the procedures undertaken intending to undergo ISO Certification may conduct an ocular visit with ISO-

4. Prepare a memorandum addressed to the Process Owner (Client Support Service through TSPMD) signifying the intention of the Region to undergo ISO Certification. An uncontrolled copy of the ISO Quality Manual shall also be requested from the Process Owner that will provide the overview of the procedures and documents used by ISO-Certified district offices and that will serve as guide as well;

5. An IQA Team shall be created that shall oversee the compliance to the ISO concerned Regional Office, which must possess the following qualifications: 9001:2015 Standards of each RDO covered. The IQA Team shall be represented by at least one (1) member per RDO and those from offices/divisions of the

a. : Appropriate Education (at least a bachelor's degree); b. At least three (3) years in service; and

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c. With knowledge of the functions of Client Support Section and Administrative Section.

as but not limited to the following: Moreover, IQA members shall be entitled to receive recognition in any form such An IQA Head shall be assigned to lead the audit team in performing its functions.

b. receive per diem to cover food and transportation expenses during the a. priority in promotion; and performance of their functions as IQA members.

6. An ISO QMS Roadmap (Annex A) shall be prepared, with target dates of implementation, depicting the end-to-end process to be undertaken by Region gearing towards IS0 9001:2015 Certification.

V. ISO QMS Roadmap

1. ISO Orientation

and covered RDOs, including Security Guards, Janitors and Job Orders. The said task force shall be identified in a separate Revenue Special Order (RSO). Expansion Trainers Task Force to be attended by all employees in the Regional Office An ISO 9001:2015 orientation with 5S Seminar shall be conducted by the QMS

2. Initial Gap Assessment

between the actual practices of the covered RDOs versus the QMS standards. This of personnel from the ISO-Certified Regions and those from Client Support Service. with the IQA Team of the concerned Region. The QMS Expansion Trainers Task Force is defined in a separate Revenue Special Order (RSO), which will be composed procedure can be done by the QMS Expansion Trainers Task Force, in coordination An Initial Gap Assessment shall be undertaken to determine the discrepancies

3. QMS Planning

Certification. during the Initial Gap Assessment and shall plan the next activities towards ISO The concerned Regional Office shall address the issues that were determined

4. ISO-Related Trainings

RDOs and support offices in the Regional Office: The following IS0 9001:2015 trainings shall be undertaken by the covered

a) IS0 9001:2015 Awareness with Risk Assessment/Management Course b) QMS Documentation Information Requirements c) IQA Training with Root Cause Analysis

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Note: The names and number of trainings may vary depending on the third- party service provider that the Region will contract.

5. Internal Quality Audit

all covered RDOs and support offices to evaluate their compliance to the QMS corrective action. The IQA Team shall monitor the CARs issued and validate its implementation and effectiveness. standards. If there are any observations/non-compliance identified by IQA Team, they shall issue a Corrective Action Request (CAR) Form to the office concerned. This will serve as basis for the concerned office to address the issue and to implement An Internat Quality Audit (IQA) shall be conducted by the IQA members on

6. Management Review

not limited to, the following agenda items: review shall be conducted to ensure the effectiveness and continuing suitability of the quality system to meet the requirements of the standards. The review may cover, but Before the conduct of third party audit or whenever necessary, a management

f) Changes that could affect the QMS g) Recommendations for improvement a) Matters arising from the previous management review meeting b) Results of internal and external quality audits c) Customer feedback and satisfaction results d) Process performance and service conformity e) Status of corrective actions

7. Final Gap Assessment

the readiness of the covered RDOs and support offices to third party-audit based on the results of the Initial Gap Assessment and Internal Quality Audit. Task Force, in coordination with the IQA Team of the concerned Region to evaluate A Final Gap Assessment shall be conducted by the QMS Expansion Trainers

8. Preparation for Certification

actual audit of covered RDOs and support offices shall be procured. Services of a third-party ISO 9001:2015 certifying body that will conduct the

9. Third-Party Certification Audit

to be attended by the officials from the concerned Regional Office and RDOs, IQA Team, auditees from the covered RDOs and representatives from the concerned RDC During the conduct of third-party audit, an opening meeting shall be conducted

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Office. In the said meeting, the third party auditor shall discuss the audit plan to be and the Process Owner (Client Support Service through TSPMD) from the National used by such third party auditor.

shall discuss the results of the audit conducted. A closing meeting shall likewise be conducted where the third party auditor

VI. REPEALING CLAUSE

modified or amended accordingly. All revenue issuances or portions thereof inconsistent herewith are hereby

VI EFFECTIVITY

This Order shall take effect immediately.

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Commissioner of Internal Revenue CAESAR R. DULAY 043077

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