Policy Guidelines and Procedures in the Preparation of the FY 2016 Budget Proposals

October 13, 2014 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 2016 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 Unified Accounts Code Structures (UACS) pursuant to COA-DBM-DOF Joint Circular No. 2013-1, dated August 6, 2013, which provides a harmonized budgeting and accounting code classification that will facilitate efficient and accurate financial reporting of revenue collections and expenditures compared with programmed revenues and expenditures. 2. Budget Proposals shall adopt the Performance Informed Budgeting (PIB) approach which required government agencies to strengthen the link between planning and budgeting. 3. Budget Proposals shall also ensure the alignment/link of programs, projects and activities with their Major Final Output/s (MFO/s). CTAIHc 4. Budget Proposals shall include submission of the Project Procurement Management Plan (PPMP) of each Office, as prescribe 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. 5. Budget Proposals and other required form/documents shall be submitted using the following budget preparation forms: Budget Preparation (BP) 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 100-A: Statement of Revenues Collection Service and Budget Division and Expenditures-Special Account in the General Fund (SAGF) 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 All Offices BP Form 201-B-2: Tax Refunds Concerned Office BP Form 201-C: Capital Outlays All Offices BP Form 202: Profile and Requirement of Concerned Office (if necessary) Programs/Locally-Funded Projects BP Form 205: List of Retirees HRDS Project Procurement Management Plan All Offices (PPMP) 6. In addition, the concerned office shall include in their submission the following documents: 7. Preparation and submission of Gender and Development (GAD) Plans and Budgets and the FY 2014 GAD Accomplishment Reports shall be in accordance with OP-PCW Memorandum Circular No. 2014-04 dated September 29, 2014. cSITDa 8. At the National Office, the Budget Proposals and supporting forms/documents 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 and supporting forms/documents 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). 9. The deadline for the submission of the required BP Forms and other supporting documents shall be as follows: 8.1 December 15, 2014 FY 2016 proposed budget of offices of Regional Office concerned using BP Forms 201-B and 201-C, PPMP and its supporting documents. 8.2 January 15, 2015 FY 2016 proposed budget of all Offices of the National Office using the applicable BP Forms under items 5 and 6 of this Memorandum together with its supporting documents. Consolidated FY 2016 proposed budget of the Regional Offices using the applicable BP Forms under items 5 and 6 of this Memorandum together with its supporting documents. For strict compliance. (SGD.) KIM S. JACINTO-HENARES Commissioner Bureau of Internal Revenue FORM A Form A: Performance-Informed Budget Structure BP FORM B Agency Performance Measures Instructions Agency Performance Measures/Targets Form B This form shall reflect the link of the budgetary requirements of Program/Activity/Project (P/A/P) statement and its component activities to the Major Final Outputs (MFOs). CacHES Column 1 MFO Description indicate the MFOs that have been agreed upon, harmonized and formally confirmed between the agency head and the DBM. Performance Indicator Description should be those agreed for each MFO pursuant to NBC 532. Column 2-6 Performance specific numerical performance measurement of the agency targets and actual accomplishments for FY 2014 and targets from FY 2015 to FY 2016 corresponding to the specific MFOs/indicators under Column (1). BP Form 100: Statement of Revenues (General Fund) Instructions BP 100: Statement of Revenues This form shall reflect all revenues collected by agencies which are deposited in the National Treasury. Column 1 Reflect the specific type of revenue under the General Fund, classified as follows: Free portion revenues which shall finance the regular day-to-day operations of the national government, broken down by tax and non-tax revenues; or Earmarked funds revenues which are authorized by law to be for a specific purpose, broken down by tax and non-tax revenues. Column 2 Reflect the description of specific sources of revenue, such as Taxes on Goods and Services; Fines and Penalties on Tax Revenue; Operating and Service Income (Rents, Interest, etc.);income from Public Enterprises/investments (Dividends, etc.);Miscellaneous Income (Sale of waste materials, Gains on foreign exchange, etc.) per Revised COA Chart of Accounts. Column 3 Indicate under this column the corresponding account code of the revenue/income. Column 4 State the legal basis authorizing the collection of revenues. Column 5 The amounts in this column shall be based on the FY 2014 Budget of Expenditures and Sources of Financing (BESF). Column 6 The amounts in this column shall be based on the agency's actual revenue collections deposited with BTr for the year 2014. Column 7 The amounts in this column shall be based on the FY 2015 revised BESF figures based on the latest macroeconomic assumptions and fiscal program approved by the DBCC. Column 8-10 Reflect the projected revenues for 2016 to 2018 based on existing conditions. Column 11 State in this column the assumption/basis in the projection of income. Significant increase/decrease in the income projection for FY 2016 vis--vis prior and current year compared with the FY 2014 income estimate shall also be justified. BP Form 100-A: Statement of Revenues and Expenditures Special Account in the General Fund (SAGF) Instructions BP 100-A: Statement of Revenues and Expenditures Special Account in the General Fund (SAGF) FY 2014-2018 This form shall reflect all revenues collected by agencies which are deposited in the National Treasury under Special Account in the General Fund. Column 1 Reflect the specific type of revenue under the Special Account in the General Fund. The revenues shall be disaggregated into annually appropriated, automatically appropriated and local/foreign grants (grants with more than a year of implementation). Column 2 Reflect the description of specific sources of revenue, such as Taxes on Goods and Services; Fines and Penalties on Tax Revenue; Operating and Service Income (Rents, Interest, etc.);income from Public Enterprises/investments (Dividends, etc.);Miscellaneous Income (Sale of waste materials, Gains on foreign exchange, etc.) Column 3 Indicate under this column the corresponding UACS account code of the revenue/income. Column 4 State the legal basis authorizing the collection of revenues. Column 5 The amounts in this column shall reflect the cash balance of the special fund as of December 31, 2014. Column 6-7 The amounts in this column shall be based on the agency's Detailed Statement of Income and Expenses for the year 2014. Column 8-9 The amounts in this column shall be based FY 2014 BESF figures consistent with BP Form 100. Column 10-15 Reflect the projected income based on existing conditions. Column 16 State in this column the assumption/basis in the projection of income. Significant increase/decrease in the income projection for FY 2016 vis--vis prior and current year level must be fully justified. Reasons for material deviations of income realization is 2014 compared with the FY 2014 income estimate shall also be justified. BP Form 201-A Personnel Services Instructions BP 201-A: Personal Services This form shall reflect the following: CHcETA 1. Salaries of permanent positions shall be equal to the sum of the actual salaries of filled itemized positions, based on the approved staffing pattern, as well as, on the PSIPOP submitted to DBM, as of December 31, 2014. Actual salaries shall refer to authorized basic salaries of positions, step increments and transition allowance, if any, as of December 31, 2014. 2. Vacated positions identified as co-terminus with the incumbent must be abolished. BP 201-A1 Staffing Summary Per Level of the Position in the Organization Instructions BP 201-A1 STAFFING SUMMARY per Level of the Position in the Organization This form shall reflect the number and annual salaries of authorized and filled-up positions (based on the PSIPOP submitted to DBM),as of December 31, 2014, broken down as follows: 1. KEY positions which refer to executive, managerial, and chief of division or equivalent positions; 2. Technical positions which refer to those directly performing the mandated substantive and/or frontline services or functions of the agency; 3. Support to Technical positions which refer to those which provide staff or technical support functions to key and technical positions but do not perform frontline services/functions; and 4. Administrative positions which refer to those performing general services, clerical, human resource management, financial management, records management, procurement, custodial and other related housekeeping functions. IHSTDE BP Form 201-B Maintenance & Other Operating Expenses Instructions BP 201-B: Maintenance and Other Operating Expenses This form shall reflect the annual cost for budgetary programs/projects and shall be supported by detailed breakdown for each type of expenditure item. 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. Travelling Expenses 1.1 Travelling expenses shall be segregated into: Local Travel this account shall include reimbursable travelling allowance of fieldmen, liaison officers, messengers, and the like. This also includes transportation, travel per diem, and other related expenses of government officials and employees travelling on official mission within the country. Foreign Travel this account include transportation, travel per diem, and other related expenses of government officials and employees travelling on official mission outside the country. 2. Training and Scholarship Expenses 2.1 Training Expenses this account shall cover expenses for participation/attendance of personnel to training, conventions and seminar/workshops and scholarship programs. It shall include training fees, honoraria of lecturers, cost of handouts, supplies, materials, meals, snacks and all other training related expenses. 2.2 Scholarship Grants/Expenses this account shall cover expenses for scholarships granted by the government to individuals in the pursuit of further learning, study or research. 3. Supplies and Materials Expenses HTDAac 3.1 Accountable Forms 3.2 Non-Accountable Forms this account includes pre-printed application forms, tax returns forms, accounting forms and the like. 3.3 Office Supplies this account shall cover office supplies such as bond paper, ink, and small tangible items like staple wire remover, puncher, stapler and other similar items. 3.4 Fuel, Oil and Lubricants Expenses this account includes fuel, oil and lubricants for the use of government motor vehicles and other equipment in connection with government operations/projects. 3.5 ICT Office Supplies this account shall cover ICT office supplies, expendable and semi-expendable ICT supplies, accessories and peripherals. 3.6 Other Supplies and Materials this account shall include supplies and materials not falling under any of the specific items under Supplies and Materials Expenses. 4. Utility Expenses Includes the cost water and electricity, consumed in government facilities in connection with its operations and projects. 5. Communication Expenses 5.1 Postage and Courier Services this account shall include delivery/transmission of official messages, mails, documents, records and the like. 5.2 Telephone Expenses this account shall cover transmitting messages thru telephone lines (mobile and landlines),faxes, telex and the like whether prepaid or postpaid. 5.3 Internet Subscription Expenses this account shall cover Internet services in government operations. 5.4 Cable, Satellite, Telegraph and Radio Expenses this account shall cover cable/satellite/telegram/radio services. 6. Professional Services HICSTa 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 ICT Consultancy Services this account shall cover all ICT consultancies other than maintenance of existing systems. 6.5 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 7.1 Janitorial Services this account shall cover janitorial services contracted by the government. 7.2 Security Services this account shall cover security services contracted by the government. 7.3 General ICT Services this account pertains to maintenance of existing ICT systems. 7.4 Other General Services this account shall cover other general services contracted by the agency not otherwise classified under any of the specific general services accounts. 8. Repairs and Maintenance 8.1 Building and Structures this account shall cover repairs and maintenance of office buildings and other structures. 8.2 Machineries and Equipment this account shall cover repairs and maintenance of Office equipment; communication equipment; printing equipment and other machinery and equipment. IEAacS 8.3 ICT Infrastructure, Machineries and Equipment this account shall include communication networks, data center and storage facility. 8.4 ICT Office Equipment this account shall include ICT equipment such as desktop computers, mobile computing devices, tablets, printers, scanners, etc.;network devices such as switches, routers, power supplies, and software. 8.5 Transportation equipment this account shall cover repairs and maintenance of motor vehicles and other transportation equipment. 8.6 Furniture and Fixtures this account shall cover repairs and maintenance of furniture and fixtures. 8.7 Leased Assets cost of repairs and maintenance of buildings, and other leased assets acquired by a lessee under a finance lease contract/agreement. 8.8 Other Property, Plant and Equipment this account shall cover repairs and maintenance of other property, plant and equipment not falling under any of the specific repair and maintenance accounts. 9. Taxes, Insurance Premiums and Other Fees 9.1 Taxes, Duties and Licenses this account shall cover taxes, duties, licenses and other fees to regulatory agencies. 9.2 Fidelity Bond Premiums this account shall cover premiums paid by agency for the fidelity bonds of accountable officers. 9.3 Insurance Expenses this account shall cover premiums paid by the agency for the insurable risks of government property. 10. Other MOOE This shall include the following: 10.1 Advertising Expenses this account shall cover advertisement which include publishing invitations to bid and other authorized government advertisements. 10.2 Printing and Binding Expenses this account shall cover printing and binding of manuscripts/documents, forms, manuals, brochures, pamphlets, and the like. THIECD 10.3 Transportation and Delivery Expenses this account shall cover the transporting of government inventory, property and equipment. This also includes moving agency's own people and properties from one station to another. 10.4 Rent/Lease Expenses this account shall include rental/lease of the following: Buildings and Structures Living Quarters ICT Equipment (e.g. desktop computers, mobile computing devices, printers, scanners, etc.) ICT Infrastructure Machineries and Equipment (e.g. communication networks, data center and storage facilities, etc.) 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 this account shall cover membership dues, contributions, fees to professional and/or recognized organizations. 10.6 Subscription Expenses this account shall cover the subscription of library and other reading materials, as well as the subscription of ICT software. 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. 10.8 Other Maintenance and Operating Expenses this account shall cover operating expenses not falling under any of the specific MOOE accounts. 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 . aTIEcA Column e shall reflect the narrative justification for the proposed budget for programs and projects. BP Form 201-B.1 Financial Expenses (FE) Instructions BP 201-B.1: Financial Expenses This form shall reflect the annual cost of the following: 1. Interest Expenses interest charges paid for the use of borrowed money. 2. Bank Charges charges imposed by the bank for various services rendered excluding interest charges. This also includes cost of checkbooks, penalties and surcharges on overdrafts. 3. Other Financial Charges charges not falling under any of the specific financial expense accounts. BP Form 201-B.2 Tax Refunds BP Form 201-C Capital Outlays (CO) Instructions BP 201-C: Capital Outlays This form shall reflect the annual costs of budgetary programs/projects and shall be supported by detailed breakdown for each category. The Regional Offices shall indicate/attached the detailed breakdown of the regional component by Unit/Division/Revenue District Office. EDCIcH Column a shall reflect the following expenditure items: 1. Land and Land Improvements Outlay This account shall include the rights to land ownership and the improvements to land which are permanent or capital in nature. 2. Building and Structures Outlay This account shall include buildings and structures, constructed or acquired and related improvements thereto which are permanent or capital in nature. Budget proposal shall be supported with the following: Cost of projects adopting the DPWH Mensuration standards DPWH clearance of the approved plan DENR geo-hazard certification 3. Machineries and Equipment Outlay Office Equipment this account shall cover office equipment which includes duplicating/photocopying machines, air conditioning units and the like. Information and Communication Technology (ICT) Equipment this account shall cover ICT equipment which includes computers, printers, scanners, and the like; pre-loaded software such as but not limited to operating systems which are included in the cost of the computer hardware; and data communications equipment and such other peripherals and auxiliary equipment necessary to put the system into operational mode. Communication Equipment this account shall include communication equipment. Printing Equipment this account shall include offset press, letter press, bindery equipment, prepress machines, and the like. Other Machinery and Equipment this account shall include other equipment not otherwise classified under the specific equipment accounts. 4. Transportation Equipment Outlay Motor Vehicles this account shall cover motor vehicles for official use as service vehicles which includes cars, buses, vans, motorcycles, and the like. Proposals for the purchase of motor vehicles shall be subject to pertinent provisions of the General Appropriations Act, National Budget Circular Nos. 446 and 446-A and Budget Circular No. 2010-2 and Administrative Order No. 233, prohibiting the acquisition by government offices of luxury vehicles. The office concerned shall determine and dispose its unserviceable motor vehicles subject to pertinent COA rules and regulations. Motor vehicles that would be replaced shall likewise be determined. The provisions of NBC No. 446 shall, however, be strictly adhered to in the replacement of motor vehicles. Based on the car re-fleeting program, it is understood that old motor vehicles should have been disposed before proposing the purchase of new motor vehicles, pursuant to Item 4.6.1 of CL No. 2008-9. 5. Furniture, Fixtures and Books Outlay Furniture and Fixtures this account shall cover the acquisition of furniture and fixtures. CHcETA Books this account shall cover the acquisition or production of books and other reference materials including those in electronic copies (in CD/DVD). 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 202: Profile and Requirements of Locally-Funded Projects Instructions BP 202: Profile and Requirements of Locally-Funded Projects Notes: Accomplish this form for each locally-funded project of the agency whether new or on-going for projects P10M and above. This same form shall also be used for the proposed construction/acquisition of building and structures. Box No. 1 Indicate the Project Name as identified in the project document or as approved by the pertinent approving authorities such as the Investment Coordination Committee (ICC),if applicable. For any change in Project Name, indicate the old name enclosed in the parenthesis. Box No. 2 Identify the name of the implementing agency submitting the form. Indicate the role of the agency in project implementation (lead or participating) in parenthesis after the name of the agency. Box No. 3 Provide a brief description of the project and its objectives . Box No. 4 Indicate the key programs/commitments of the Administration, addressed by the P/A/P under BP 201. Box No. 5 Provide the time frame within which the project must be completed, specifying the day, month and year of project start and completion both original and revised (if applicable). Box No. 6 Cite the frequency and the particular year/s when the project has been revised and the reason/s for revisions . Total project cost refers to the amount necessary to undertake and complete the project. Include original and revised, if applicable. Box No. 7 List down all the components of the project and their corresponding costs, original and revised, if applicable. Box No. 8 Present the project cost and financial status of the project for the period/years indicated according to Expense Class (PS, MOOE, CO) Box No. 9 Identify the region/district or areas to be covered by the project For Boxes No. 7, 8 and 9: Column 2014 Cumulative Refers to the cumulative actual obligations as of December 31, 2014. 2015 Refers to the 2015 appropriation per GAA/NEP. 2016 Refers to the 2016 proposed program for each locally-funded project. Box No. 10 List down the project's physical targets in the absolute terms and the corresponding accomplishments for the periods/years indicated. Specify the pertinent performance measurement indicators using as basis the components/categories used in Box No. 7. Express slippage/over-performance as the difference between target and accomplishment in relative terms. Enclose data in parenthesis. Box No. 11 Identify the major implementation problems encountered or expected in the course of project execution if any. Include the causes of cost overruns which are the difference between the original cost and the revised cost. BP Form 205 List of Retirees For Payment of Terminal Leave and Retirement Gratuity Benefits Instructions BP 205: List of Retirees For Payment of Terminal Leave (TL) and Retirement Gratuity (RG) Benefits This form shall be accomplished by departments/agencies to provide information on their requirements TL and RG benefits for 2016. This form shall contain the following: Column 1 Name of Retiree and the Retirement Package/Law, such as RA 1616, RA 8291, etc. Column 2 Position as of Retirement Date indicate Position or Class ID as provided under the Index of Occupational Services, Position Titles and Salary Grades. Indicate the unique Item No. of the retiree under the PSIPOP. Column 3 Date of Birth of Retiree (mo/dd/year) Column 4 Date of Original Appointment of Retiree (mo/dd/year) Column 5 Effectivity of Retirement (mo/dd/year) Column 6 Monthly Salary as of Retirement Date used in the computation of the benefits due (as prescribed to be derived from the Notice of Salary Adjustment NOSA) Column 7 For Terminal Leave, the Number of Vacation Leave (VL) Credits Earned which is used in the computation of the amount due. Column 8 For Terminal Leave, the Number of Sick Leave (SL) Credits Earned which is used in the computation of the amount due. Column 9 Computed Amount of Terminal Leave Benefit due each subject retiree. Column 10 For Retirement Gratuity Benefits, the Total Creditable Service which may be derived from the service record of the retiree and used in the computation of the amount due. Column 11 Number of Gratuity Months used in the computation of the amount due. As prescribed, the total creditable service is converted into gratuity months as follows: 1 gratuity month for each creditable year of service not exceeding 20 years. 1.5 gratuity months for each creditable year of service over 20 years but not exceeding 30 years. 2 gratuity months for each creditable year of service over 30 years. Column 12 Computed Amount of Retirement Gratuity Benefit due each subject retiree. Project Procurement Management Plan for CY 2012 Project Procurement Management Plan (PPMP) Instructions The PPMP deals with planning for the procurement of project requirements which include but not limited to the following: CcTIDH 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. Manpower Services C.3. Security Services C.4. Trucking, hauling Services D. Other Services such as: D.1. Lease/Rent of Office Space 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. Annual Procurement Plan for 2016 For Common-Use Supplies and Equipment