Organization and Functions of the Financial Service Including the Divisions Under it Down to Section Level

February 9, 2009 REVENUE ADMINISTRATIVE ORDER NO. 006-09 SUBJECT : Organization and Functions of the Financial Service Including the Divisions Under it Down to Section Level TO : All Internal Revenue Officials and Employees I. OBJECTIVE: This Order defines the organization and functions of the Financial Service including its divisions and their sections pursuant to the Rationalization Plan of the Bureau. II. ORGANIZATION: The Financial Service shall be under the direct supervision of the Deputy Commissioner for Resource Management Group. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections: A. Budget Division 1. National Office Budget Section 2. Regional Budget Section 3. Budget Control Section 4. Reports Consolidation and Records Section B. Accounting Division 1. Processing Section 2. Bookkeeping Section 3. Reconciliation and Monitoring Section 4. Verification Section III. FUNCTIONS: FINANCIAL SERVICE 1. Performs staff, advisory and consultative functions relative to budgeting and accounting of disbursement; 2. Formulates policies and administers work programs, standards, guidelines and procedures, including forms relative to the abovementioned functions; 3. Provides policy guidance and operational directions to all divisions under the Service relative to the abovementioned functions; DSacAE 4. Administers the financial management information system, specifically on the requirements for process improvement; 5. Coordinates with proper offices in the implementation of the abovementioned functions; 6. Monitors, evaluates and improves programs and activities under the responsibility of the Service; 7. Reviews, recommends and/or approves all reports and other actions of the divisions under the Service; 8. Consolidates and/or prepares prescribed reports for submission to the offices concerned; and 9. Performs such other related functions as may be assigned. A. Budget Division 1. Formulates policies, work programs, standards, guidelines and procedures, including forms relative to the preparation, execution and control of the BIR budget; 2. Allocates budget appropriation in accordance with the program/project thrusts of the Bureau; 3. Schedules and coordinates the various steps of the budget process in the Bureau to meet prescribed time schedules and deadlines; 4. Prepares annual, supplemental, special and deficiency budgets of the Bureau in accordance with prescribed guidelines; 5. Assists top management in the presentation of BIR budgetary estimates before administrative and legislative bodies; 6. Represents the BIR on routine budget meetings with the Department of Budget and Management (DBM), the Department of Finance (DOF) and the technical staff of the Appropriations and Finance Committees of Congress; HCSEIT 7. Maintains awareness on all developments affecting budgetary matters; 8. Establishes a control and reporting system to ensure that budget execution in the National Office and Regional Offices is properly implemented; 9. Provides fund support to the operations, plans and programs of the Bureau subject to budgetary ceilings; 10. Recommends measures for the efficient and effective utilization of financial resources and for improving budgetary process in BIR; 11. Maintains the Allotment Releases and obligations incurred functionality of the electronic National Government Accounting System (eNGAS) on the requirements for process improvement; 12. Coordinates with concerned offices in the implementation of the abovementioned functions; CcaASE 13. Prepares prescribed reports for submission to offices concerned; 14. Prepares revenue issuances relative to the abovementioned functions; and 15. Performs such other related functions as may be assigned. 1. National Office Budget Section 1.1. Monitors the preparation and submission of budget estimates and budget accountability reports in the National Office, ascertains problem areas and renders service whenever necessary; 1.2. Analyzes, reviews and evaluates for completeness and conformity to instructions budget proposals submitted, including justification materials; 1.3. Consolidates budget proposals of various services and divisions of the National Office; 1.4. Prepares justification and other materials to accompany budget estimates including those needed in the consultation meetings and hearings in DBM and in Congress; SacTAC 1.5. Encodes other information ( e.g. , Projects/Programs/Activities, responsibility center, account code, etc.) on the Obligation Slip drawn and forwarded by the different offices of the National Office; and 1.6. Performs such other related functions as may be assigned. 2. Regional Budget Section 2.1. Provides consultation and technical assistance to Regional Offices on budgetary matters; 2.2. Monitors the preparation and submission of budget estimates and budget accountability reports of Regional Offices and disseminates instructions and circulars related thereto; SIDEaA 2.3. Assists in the budget hearings of Regional Offices; 2.4. Processes, analyzes and collates budget proposals of Regional Offices and submits recommendations; 2.5. Prepares and issues operating budgets of Regional Offices based on approved Agency Budget Matrix and Allotment Orders; 2.6. Prepares and reviews Sub-Allotment Advice (SAA) covering regular budget allocation and other fund releases of Regional Offices and forwards the same to concerned Regional Offices together with the Notice of Fund Transfer for Personal Services issued by the Accounting Division and Notice of Cash Allocations for Maintenance and Other Operating Expenses issued by DBM; 2.7. Monitors and consolidates Monthly Physical Report of Operations and Financial Report of Operations of all Regional Offices and initiates or suggests remedial action on significant problems and constraints reported; TcIAHS 2.8. Reviews requests for modification or realignment of funds whenever necessary; and 2.9. Performs such other related functions as may be assigned. 3. Budget Control Section 3.1. Keeps and maintains control of appropriations, allotments and obligations of the National Office and Regional Offices by program, project, activity and by expense object effecting through such controls, changes and adjustments in current Agency Budget Matrix; 3.2. Compiles and analyzes data on obligations incurred by the National Office for possible transfer or re-allotment of funds and for purposes as may be needed by top management; 3.3. Prepares supplemental or special budgets whenever necessary; and 3.4. Performs such other related functions as may be assigned. 4. Reports Consolidation and Records Section 4.1. Consolidates budget proposals of the National and Regional Offices into one Bureau budget proposal; 4.2. Prepares Bureau's Budgetary Reports, Accomplishment Report, Consolidated Physical Report of Operations (PROs) and Status Report on Allotments and Obligations as required by DBM, DOF and other governmental bodies; 4.3. Coordinates with DBM on the preparation of the annual Agency Budget Matrix and requests changes in program, activity structure of the Bureau including realignment of funds, whenever necessary; 4.4. Prepares Annual Cash Program based on the approved Agency Budget Matrix; 4.5. Acts as liaison to fiscal agencies involving budget matters; 4.6. Acts as custodian of all budget documents and records; and 4.7. Performs such other related functions as may be assigned. aTSEcA B. Accounting Division 1. Formulates policies, work programs, standards, guidelines and procedures, including forms relative to the accounting of appropriation and disbursements incurred by the Bureau; 2. Coordinates with the proper offices in the implementation of the abovementioned functions; 3. Prepares prescribed reports for submission to offices concerned; 4. Prepares revenue issuances relative to the abovementioned functions; and 5. Performs such other related functions as may be assigned. 1. Processing Section 1.1. Processes, reviews and settles various money claims for compliance with accounting and auditing rules and regulations; 1.2. Remits payments of salary deduction and withholding taxes of National Office employees to proper entities concerned; 1.3. Encodes and consolidates monthly payroll adjustments into the BIR Payroll System (BPS) and informs the Information Systems Group (ISG) that adjustments have been entered into the system; 1.4. Processes applications for National Office Clearance of revenue officials and employees for retirement, leave of absence of thirty (30) days or more, transfer, separation and other similar purposes; aIcTCS 1.5. Prepares summaries of monthly payrolls for purposes of issuance of Sub-Allotment Advice (SAA) and fund transfer; 1.6. Encodes into the system (Alphalist Data Entry) data corresponding to withholding taxes of private creditors and validates files for attachment to EFPS, remits payments of withholding taxes of private creditors to BIR; 1.7. Encodes Government Service Insurance System (GSIS) Regular and Supplemental monthly payroll deductions to the GSIS Electronic Remittance Program for compliance as per GSIS Electronic File Exchange; 1.8. Matches the GSIS Monthly Electronic Billing File against the BIR General Payroll System for updating BIR NO employees premiums and loan accounts; 1.9. Prepares ATM payroll and diskette, Disbursement Vouchers and Obligation Slips for salaries, PERA/ACA and other benefits of NO employees; DSAacC 1.10. Issues certificate of salaries, PERA/ACA and other benefits received per NO employee upon request of the individual concerned or other government entities; 1.11. Prepares summaries of Tax Refund Payroll (TRP) for purposes of issuance of SAAs and fund transfer; 1.12. Prepares Notice of Transfer of Cash Allocation to ROs and advises them of such transfer; 1.13. Sets-up in the eNGAS receivables from NO employees e.g. , salary overpayment; 1.14. Informs the employees concerned of their salary overpayment for the settlement of their account; 1.15. Maintains control records of fund allocations received by Regional Offices; and 1.16. Performs such other related functions as may be assigned. 2. Bookkeeping Section 2.1. Maintains accounting records and books of accounts (journal, general and subsidiary ledgers) to reflect accurate and current financial transactions required by management and existing accounting and auditing rules and regulations; IacHAE 2.2. Prepares and consolidates trial balances, supporting schedules and statements and other financial reports of the National Office (N.O.) and those submitted by Regional Offices (ROs) for submission to fiscal agencies and Congress; 2.3. Coordinates with General Services Division (GSD) on the update of Cash Allocation; 2.4. Analyzes accounts for proper adjustments in the books of accounts; 2.5. Prepares requests for Notice of Cash Allocation (NCA) to cover Accounts Payable, Informer's Reward, Tax Refunds and Trust Receipts; 2.6. Uploads data on salary deductions from BIR Payroll System for importation to eNGAS e.g. , Philhealth, GSIS, BIR Coop, BIR Savings and Loans Association (BIRSALA), Pag-ibig, etc.; 2.7. Encodes financial transaction to eNGAS for Journal Entry Voucher (JEV) generation; 2.8. Reconciles Inventory Reports of Regional Offices against accounting records for dropping from NO books and take-up in RO books; 2.9. Maintains updated cash balances to ensure availability of cash for all claims presented for payment; AIDSTE 2.10. Keeps records of all supplies, goods and equipment procured and delivered for utilization; 2.11. Certifies as to availability of stocks of supplies, materials and equipment; 2.12. Informs the offices concerned of their accountabilities ( e.g. , supplies accountabilities, cash accountabilities, Commission on Audit (COA) disallowances for the settlement of their account; and 2.13. Performs such other related functions as may be assigned. 3. Reconciliation and Monitoring Section 3.1. Maintains updated balance of Obligation Slip (OS); 3.2. Monitors all disbursements of the Bureau e.g. , salaries, benefits, tax refund payments and other sundry expenses; 3.3. Keeps and maintains subsidiary ledgers of all salary deductions and cash advances of N.O. employees; 3.4. Prepares and submits schedule of unliquidated obligations, cash advances and trust deposits of the National Office; 3.5. Prepares a record of aging accounts payable of the National Office; 3.6. Keeps and maintains subsidiary ledger on uncomplied travel of National Office employees; 3.7. Keeps and maintains subsidiary ledger of all withholding taxes deducted from private creditors; 3.8. Prepares and submits quarterly report on foreign travel of revenue officials and employees to the Office of the President and Department of Finance; cHEATI 3.9. Informs the employees concerned of their uncomplied travel and outstanding cash advances for the settlement of their account; 3.10. Reconciles current accounts maintained with Land Bank of the Philippines (LBP) and Treasury/Agency account current of the Bureau; 3.11. Reconciles encashed Tax Refund Notices; and 3.12. Performs such other related functions as may be assigned. 4. Verification Section 4.1. Acts as custodian of all accounting documents and records; 4.2. Acts on request for verification of information regarding accounting data; 4.3. Prepares certified copies of documents requested by duly authorized officials of the Bureau; IDcAHT 4.4. Issues certification of payments to Medicare, GSIS, NHMFC, PAG-IBIG and other government and private agencies as requested by employees; 4.5. Verifies and certifies Tax Credit Certificates (TCCs) converted to cash; 4.6. Prepares and issues Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307), Certificate of Final Tax Withheld (BIR Form No. 2306) and Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316); and 4.7. Performs such other related functions as may be assigned. IV. REPEALING CLAUSE: All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. V. EFFECTIVITY: This Order shall take effect immediately. (SGD.) SIXTO S. ESQUIVIAS IV Commissioner of Internal Revenue Approved: (SGD.) MARGARITO B. TEVES Secretary of Finance