Policy Guidelines and Procedures in the Preparation of the FY 2015 Budget Proposals

October 31, 2013 BIR MEMORANDUM TO : All Deputy Commissioners, Assistant Commissioners, Regional Directors, Revenue Data Center Heads, Revenue District Officers, Division Chiefs and Others Concerned SUBJECT : Policy Guidelines and Procedures in the Preparation of the FY 2015 Budget Proposals Purpose To prescribe guidelines, procedures and schedules, including the budget forms, in the preparation and submission of budgetary proposals in anticipation of the Budget Call from the Department of Budget and Management. General Guidelines 1. The budget proposal shall be aligned with the expenditure and income accounts under the Revised Chart of Accounts for National Government Agencies pursuant to COA Circular No. 2013-002, dated January 30, 2013. 2. Budget Proposals shall be submitted using the "Zero-based" budgeting approach, as well as the Program Budgeting approach. 3. Budget Proposals shall also ensure the alignment/link of programs, projects and activities with their Major Final Output/s (MFO/s). 4. Budget Proposals shall include the Project Procurement Management Plan (PPMP, using the attached format) of each office as prescribed under Section 7.3 of the Revised Implementing Rules and Regulations of R.A. 9184. PPMP shall be accompanied by Terms of Reference (TOR) and Approved Budget for the Contract (ABC), if applicable. TCaAHI 5. At the National Office, the Budget Proposals shall be submitted to the Office of the Deputy Commissioner, Resource Management Group (Attention: The Chief, Budget Division). With respect to Revenue Regions, all offices under it shall submit their budget proposals to the Office of the Regional Director (Attention: The Chief, Finance Division) for consolidation before it is submitted to the Deputy Commissioner, Resource Management Group (Attention: The Chief, Budget Division). 6. Budget Proposals shall be submitted using the following budget preparation forms together with the PPMPs, on or before the prescribed deadlines: Budget Preparation Forms Responsible Office Form A: Performance-Informed Budget Planning and Management Service (PMS) Structure BP Form B: Agency Performance PMS Measures BP Form 100: Statement of Revenues PMS and Collection Service (General Fund) BP Form 201-A: Personnel Services Human Resource Development Service (HRDS) BP Form 201-A.1: Staffing Summary HRDS BP Form 201-B: Maintenance and Other All Offices Operating Expenses (MOOE) BP Form 201-B.1: Financial Expenses Regional Offices BP Form 201-B.2: Tax Refunds Concerned Offices BP Form 201-C: Capital Outlays All Offices BP Form 202: Profile and Requirement Concerned Office (if necessary) of Locally-Funded Projects BP Form 203: Requirement of Foreign- Concerned Office (if necessary) Assisted Projects BP Form 203-A: Foreign-Assisted Concerned Office (if necessary) Project Profile BP Form 206: List of Retirees HRDS BP Form 400: Annual GAD Plan and HRDS and Regional Offices Budget BP Form 400-A: Annual GAD HRDS and Regional Offices Accomplishment Report 7. In addition, the concerned office shall include in their submission the following documents: IAcTaC Documents Responsible Office Inventory of equipment, furniture and General Services Division National fixtures Office Administrative Division Regional Offices Agency's FY 2013 Accomplishment Planning and Management Service Report 8. Budget Proposals and other required documents shall be submitted in two copies/sets not later than the following deadlines: 8.1 November 15, 2013 BP Form 400: Annual GAD Plan and Budget 8.2 December 16, 2013 Project Procurement Management Plan (PPMP); and All other Budget Preparation Forms 8.3 January 10, 2014 CY 2013 Actual Obligation of the Regional Offices; BP Form 201-A and 201-A.1 Personnel Services and Staffing Summary, respectively; BP Form 400-A: Annual GAD Accomplishment Report; ATHCDa Inventory of equipment, furniture and fixtures; and Agency's FY 2013 Accomplishment Report. For strict compliance. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT Project Procurement Management Plan (PPMP) INSTRUCTIONS The PPMP shall include the following: A. Supplies and Materials (use PPMP-Schedule 1 for detailed breakdown of common use office supplies and materials) B. Equipment, Furniture and Fixtures C. Contractual Services such as: C.1. Repairs and Maintenance of equipment, furniture, fixtures, building and other structures owned by the government C.2. Janitorial Services C.3. Security Services C.4. Trucking, hauling Services D. Other Services such as: D.1. Lease/Rent of Office Space HIAEcT D.2. Media Advertisements D.3. Lease of IT and Non-IT Equipment NOTE: 1. Items and amounts to be reflected in the PPMP shall be included in the budget proposals of the respective office. 2. Detailed breakdown of each category must be attached. ANNEX A Project Procurement Management Plan for CY 2012 Project Procurement Management Plan for CY __________ For Common-Use Supplies and Equipment Instructions BP 201-B: Maintenance and Other Operating Expenses This form shall reflect the annual cost for budgetary programs/projects. The Regional Offices shall indicate/attached the detailed breakdown of the regional component by Unit/Division/Revenue District Office . aSTAHD Column a shall reflect the following expenditure items: 1. Travelling Expenses Travelling expenses shall be segregated into local and foreign travel. Local travel shall include expenses for tax campaign activities, tax mapping activities, attendance of officials/employees to meeting/conventions/seminars/conference, travel of officials/employees with mission/special orders and travel expenses of fieldmen (examiners, collection officers/agents, liaison officers, legal officers, etc.) 2. Training and Seminar Expenses This shall include expenses for participation/attendance of personnel to training, conventions and seminar/workshops and scholarship programs. This shall also include expenses to be incurred in the conduct of training, seminar/workshops ( i.e. , food, supplies and materials, honoraria, etc.) 3. Supplies and Materials This shall include a breakdown of each expenditure with the corresponding amount per item, categorized as follows: 3.1 Office Supplies including all expendable and semi-expendable IT supplies, accessories and peripherals 3.2 Accountable Forms 3.3 Non-Accountable Forms ( e.g. , BIR Tax Forms) 3.4 Fuel, Oil and Lubricants (with breakdown by type) 3.5 Other Supplies and Materials 4. Utility Expenses HSEIAT Includes the cost water and electricity, consumed in government facilities in connection with its operations and projects. 5. Communication Expenses This shall cover postage, courier services; telephone (mobile and landline); internet subscription; cable; satellite, telegraph and radio (with breakdown by type). 6. Professional Services This expense shall include a breakdown of each expenditure with the corresponding amount per item, categorized as follows: 6.1 Legal Services this includes cost incurred for authorized legal services rendered by the private lawyers. This also includes special counsel allowance granted to government lawyers deputized to represent the government in court as special counsel. 6.2 Auditing Services operating expenses provided by auditees for auditing services rendered by Commission on Audit. 6.3 Consultancy Services cost of services rendered by consultants contracted to perform particular outputs or services primarily advisory in nature and requiring highly specialized or technical expertise which cannot be provided by the regular staff of the agency. 6.4 Other Professional Services (specify) cost of other professional services contracted by the agency not otherwise classified under any of the specific professional services accounts. 7. General Services This expense shall include a breakdown of each expenditure with the corresponding amount per item, categorized as follows: HEcIDa 7.1 Janitorial Services cost of janitorial services contracted by the government 7.2 Security Services cost of security services contracted by the government 7.3 Other General Services 8. Repairs and Maintenance This shall be supported with a breakdown of each item of expenditure to be covered by repairs and maintenance, with the corresponding amount per item, categorized as follows: 8.1 Building and Structures include office buildings and other structures. 8.2 Furniture and Fixtures. 8.3 Leased Assets cost of repairs and maintenance of buildings, and other leased assets acquired by a lessee under a finance lease contract/agreement. 8.4 Machineries and Equipment include Office equipment; ICT equipment; communication equipment; printing equipment and other machinery and equipment. 8.5 Transportation. equipment ( i.e. , motor vehicles and other transportation equipment) 8.6 Other Property, Plant and Equipment not classified under specific repair and maintenance accounts. HaAISC 9. Taxes, Insurance Premiums and Other Fees 9.1 Shall include taxes, duties, licenses and other fees due to regulatory agencies. 9.2 Fidelity Bond Premiums shall include expenses for premium on fidelity bond of accountable officers. 9.3 Insurance Expenses shall include premiums paid by the agency for the insurable risks of government property. 10. Other MOOE This shall include the following: 10.1 Advertising Expenses Cost of advertisement in newspapers, magazines, television, radio and other forms of media. 10.2 Printing and Binding Expenses Expenses for the printing, binding of manuscripts, documents in government operations and projects. 10.3 Transportation and Delivery Expenses cost of transporting government inventory, property and equipment. 10.4 Rent/Lease Expenses this shall include rental of the following: Building and Structures Equipment Living Quarters ISAaTH Rent should be supported with a copy of contract/agreement and computation of the yearly rentals. For building rental, the floor area and number of employees to be housed in the building should also be disclosed. 10.5 Membership Dues and Contributions to Organizations Covers membership dues, contributions, fees to professional and/or recognized organizations. 10.6 Subscription Expenses this shall cover the cost of subscription to library and other reading materials. 10.7 Litigation/Acquired Assets Expenses This shall include the expenses incurred in connection with litigation proceedings and registration/consolidation of ownership of acquired assets, as well as those incurred in their preservation/maintenance. The use of "OTHERS" account shall be strictly prohibited. Column b shall reflect the total annual cost of programs and projects. Column c shall reflect the annual cost for on-going/regular programs and projects . Column d shall reflect the annual cost for key programs and projects . Column e shall reflect the narrative justification for the proposed budget for programs and projects. CSEHIa BP Form 201-B - Maintenance & Other Operating Expenses BP Form 201-B.2 - Tax Refunds Instructions BP 201-C: Capital Outlays This form shall reflect the annual costs of budgetary programs/projects. The Regional Offices shall indicate/attached the detailed breakdown of the regional component by Unit/Division/Revenue District Office. Column a shall reflect the following expenditure items: 1. Building and Structures Outlay This shall include cost of buildings and structures, constructed or acquired and related improvements thereto which are permanent or capital in nature. 2. Office Equipment, Furniture and Fixtures This shall include all types of office equipment, furniture and fixtures, IT equipment and software and library books. For library books, this covers the cost of reference books and all other materials whether printed or in audio-visual form, relevant to the functions of the agency concerned and library collections needed in the intellectual and professional advancement of government personnel and other library users. DEcTIS Requests to replace non-serviceable equipment considered extremely necessary shall also be given priority over the purchase of additional items. Proposals for replacement shall be supported by an Inventory and Inspection Report of Unserviceable Property duly signed by the Head of the Agency/COA Auditor and information on the expected proceeds of the sale. Column b shall reflect the total annual costs of budgetary programs and projects. Column c shall reflect the annual costs for on-going/regular budgetary programs and projects . Column d shall reflect the annual costs for key budgetary programs and projects . Column e shall reflect the narrative justification for the proposed budget of programs and projects. BP Form 201-C - Capital Outlays (CO)