Statement of Functions of the Financial & Management Service Including the Divisions Under It Down to Section Level

February 22, 1984 REVENUE ADMINISTRATIVE ORDER NO. 05-84 SUBJECT : Statement of Functions of the Financial & Management Service Including the Divisions Under It Down to Section Level TO : All Internal Revenue Officers and Others Concerned I. Objective : This Order aims to implement more effectively the Reorganization of the Bureau under Executive Order No. 608 by defining, delineating and expanding the functions of the Financial & Management Service and its divisions relative to activities on budgeting, financial control, revenue accounting, statistical analysis, management improvement, tax information and education. II. Organization : To attain this objective, the Financial & Management Service shall have the following divisions and respective sections: A. Budget Division 1. Budget Operations Section 2. Allotment and Expense Control Section B. Management Division 1. Organization and Manpower Section 2. Forms Design and Control Section 3. Report Monitoring and Evaluation Section 4. Methods and Procedures Section C. Statistical Analysis Division 1. Processing and Analysis Section 2. Statistical Research and Report Development Section D. Tax Information & Education Division 1. Information & Education Section 2. Publication Section 3. Tax Assistance Section cd i E. Disbursement Accounting Division 1. Expense Control Section 2. Processing Section 3. Bookkeeping and Reconciliation Section 4. Records and Administrative Section F. Revenue Accounting Division 1. Direct Payment (ROR) Section 2. Payments Thru Banks (PO/CR) Section 3. Allotment, Tax Refund/Credit & Miscellaneous Section 4. Bookkeeping and Reconciliation Section 5. Records and Administrative Section III. Functions : The Financial & Management Service shall have the following functions: 1. Perform staff, advisory and consultative functions relative to budgeting, financial control, revenue accounting, statistical analysis and management improvement; 2. Formulate and recommend policies and programs, set up guidelines, standards and procedures for financial and management services; 3. Review and evaluate activities to field offices for adherence to policies, procedures and standards; 4. Exercise technical supervision over field offices on financial and management matters; 5. Analyze tax and other data provided by the computerized management information system for use of top management and other agencies; 6. Recommend necessary tax legislations and regulations based on its own operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; acd 7. Direct and supervise the activities of the divisions under this service; and 8. Perform such other related functions as may be assigned. A. The Budget Division shall have the following functions: 1. Develop, formulate and recommend policies and work programs and set up standards, guidelines, methods and procedures relative to the preparation, execution and control of the budget of the Bureau; 2. Schedule and coordinate the various steps of the budget process in the Bureau to meet prescribed time schedules and deadlines; 3. Prepare annual, supplemental, special and deficiency budgets of the Bureau in accordance with the prescribed guidelines; 4. Assist management in the presentation of BIR budgetary estimates before the Office of Budget and Management (OBM) and other governmental bodies; 5. Represent the BIR on routine budget meetings with the OBM and the Ministry of Finance; 6. Prepare annual work and financial plans and modifications thereof, whenever necessary; 7. Prepare budget and financial reports for management guidance and as required by higher authorities of other governmental bodies; 8. Maintain awareness of all developments affecting budgetary matters; 9. Allocate available funds to programs, projects and activities on the basis of approved guidelines and priorities; 10. Provide fund support to the operations, plans and programs of the Bureau subject to budgetary ceilings; 11. Provide consultation and technical assistance to budget units in the regional offices and various organizational units of the Bureau on matters relative to budgeting; and 12. Perform such other related functions as may be assigned. The following shall be the functions of the sections under the Budget Division: A-1 Budget Operations Section a. Plan and develop methods and procedures on budget preparation and accountability; b. Determine and analyze problems on budget preparation and accountability and recommend solutions thereto; c. Develop guidelines and instructions in the preparation of annual budget estimates indicating the materials to be prepared, the forms to be used and manner of submission; d. Monitor the preparation of budget estimates in regional offices and the Central Office, ascertain problem areas and assist whenever necessary; cdt e. Analyze, review and evaluate for completeness and conformity to instructions, budget proposals submitted including justification materials; f. Assist in budget hearings conducted by the Financial & Management Service; g. Consolidate the budget proposals of various services, divisions and regional offices into one bureau budget proposal, securing basic materials from operating personnel; h. Prepare justifications and materials to accompany budget estimates including those needed in consultation meetings and hearings in the Office of Budget and Management and Batasang Pambansa; i. Prepare supplemental, special and deficiency budgets whenever necessary; j. Prepare original and modification of work and financial plans and requests for allotments, including request for changes in programs, projects and activity structure of the Bureau. k. Prepare requests for Cash Disbursement Ceilings (CDC) and allotments for retirement gratuities, terminal leave, prior year obligations and revalidation of lapsed CDCs; l. Monitor and collate quarterly reports of regional offices on obligations, work performance and manpower used and initiate or suggest remedial action on significant problems and constraints reported; m. Prepare consolidated Physical Reports of Operations and status report on allotments and obligations as required by Office of Budget and Management and Bureau officials; n. Keep and maintain records of communications regarding budget operations of the Bureau; and o. Perform such other related functions as may be assigned. A-2 Allotment and Expense Control Section a. Plan and develop methods and procedures on budget execution b. Prepare and issue sub-notice of obligation ceiling to regional offices; c. Prepare operating budgets for each division, service and regional office such that workload to be performed and authorized manpower for Bureau programs and projects are aligned to amounts allotted; d. Prepare and issue advice of sub-allotment, notice of Cash Disbursement Ceilings and Request for Obligation of Allotment (ROA) covering the financial requirements for each authorized program, project and activity to regional offices; e. Obligate allotments for all anticipated and actual expenditures of the Bureau; f. Review fiscal documents and accounts relating to expenditures of the Bureau; g. Keep and maintain control of budgetary allotments and obligations of the Central Office and the regional offices by program, project and activity, effecting thru such controls, changes and adjustments in current work and financial plans; cdt h. Compile and analyze data on obligation incurred by the Central Office and the regional offices for possible transfer or reallotment of funds and for purposes as may be needed by management; and i. Perform such other related functions as may be assigned. B. The Management Division shall have the following functions; 1. Develop policies and work programs and set up standards, guidelines and procedures relative to management improvement in the Bureau; 2. Examine the administrative organization and make recommendation for improvement; 3. Maintain and update the Bureau's manual on organization and functions, procedures and other related manuals; 4. Undertake regular management surveys of organizational structure, manpower and operations of all units of the Bureau; 5. Review existing method, procedures, administrative and internal control system and make recommendations for improvements; 6. Develop new and improved management system and exercise staff supervision over the implementation on such improvement. 7. Develop staffing standards and manpower requirements; 8. Analyze and evaluate the accomplishment reports on national and regional offices for control purposes and management audit of adherence to rules and regulations including efficiency and effectiveness and for improvement programs; 9. Take charge of the design and control of BIR forms including unnumbered forms; 10. Provide assistance to staff and line units on the development of their organization, functions, staffing and methods and procedures; 11. Consolidate the annual work plan and prepare the annual report of the bureau and such other management reports as may be required; and 12. Perform such other functions as may be assigned. The following shall be the functions of the sections under the Management Division; B-1 Organization and Manpower Section a. Plan, develop and improve guidelines on BIR organization and manpower requirements and utilization for central and field offices; b. Examine the administrative organization and make recommendations for improvements; c. Maintain and update the Bureau's manual on organization and functions and other related manuals; d. Undertake management surveys of the Bureau's organizational structure and manpower requirements and utilization; e. Review proposed issuances for conformance to Bureau policies and assist in the establishment of standards for style and format of internal management documents; f. Provide technical assistance to staff and line units in the development of their organization, functions, and staffing needs; cdt g. Provide top management with data or information on organization and manpower upon request; and h. Perform such other related functions as may be assigned. B-2 Forms Design and Control Section a. Design and/or revise forms, whenever necessary, for the improvement of controls and efficiency in the bureau's entire operations and review proposed forms designed by other units of the Bureau; b. Provide technical assistance to line and other staff units in the development of forms that will suit their particular needs; c. Conduct regular review/evaluation of existing forms to determine their current applicability and relevance; d. Recommend, through the initiative of the section or from the proposals of other units, the deletion, consolidation or revision of existing forms, whenever necessary; e. Take charge in the numbering and control of the forms; f. Maintain a system of stock control, distribution and replenishment of forms; g. Keep and maintain records of all forms issued including the revisions on existing ones; h. Prepare monthly report of activities and accomplishments of the section; and i. Perform such other functions as may be assigned. B-3 Report Monitoring & Evaluation Section a. Develop work programs, guidelines and procedures relative to the Bureau's operations and annual and/or periodic work plans and accomplishments; b. Monitor the timeliness and accuracy of reporting of national and regional work plans and accomplishment reports used for management audit and improvement program; c. Evaluate national and regional accomplishment reports giving significance to a) performance vis-a-vis goals and objectives, b) efficiency and c) effectiveness; d. Conduct studies to determine effectiveness of newly installed system of reporting programs, plans and accomplishments, as well as applicability of already existing system; e. Provide assistance to staff and line units on the constraints encountered on work plans submitted; f. Prepare and submit to top management, consolidated national and regional reports on work programs and accomplishments as well as the annual report of the Bureau to the Ministry of Finance; and g. Perform such other functions as may be assigned. B-4 Methods and Procedures Section a. Plan, develop and improve standards, methods and procedures relative to BIR operations; b. Conduct management survey of BIR operations and activities to improve techniques, methods and procedures and recommend solutions to procedural problems; c. Prepare guides and standards relating to the preparation of manuals of operation of the different units of the Bureau and initiate updating thereof; d. Conduct a continuing study on the reporting system of the Bureau with a view to simplifying reports and designing or revising forms for the improvement of the Bureau's system and procedures; e. Examine operations involving voluminous paperwork for possibility of integrating the same into the central data processing system of the bureau; f. Provide technical assistance to staff and line units in the development methods and procedures regarding their particular operations; and g. Perform such other related functions as may be assigned. C. The Statistical Analysis Division shall have the following functions: 1. Develop and prescribe the nature and content of Statistical reports and information on revenue administration and operation; 2. Collate, analyze and present relevant statistical data in an organized form for an effective management information system; 3. Generate revenue statistics and estimates required by other units of the Bureau and other government agencies; 4. Allocate the annual revenue goal by organizational unit, geographic subdivision, by type of tax and by month; 5. Support management policies, plans and programs with needed statistical data and information; 6. Monitor collection performance and prepare corresponding performance ratios of Audit Divisions, regions and districts; 7. Develop guidelines and techniques for the operating units to understand and utilize statistical information; 8. Undertake researches to improve collection, presentation, analysis, interpretation and utilization of statistical data; and 9. Perform such other related functions as may be assigned. The following shall be the functions of the Sections under the Statistical Analysis Division: C-1 Processing and Analysis Section a. Develop and maintain a centralized recording and reporting system on revenue statistics; b. Consolidate, tabulate and analyze data on revenue collections by geographic subdivision and by kind of tax, etc.; c. Coordinate with the Revenue Information Systems Services Incorporated (RISSI), Revenue Accounting and Management Divisions, Audit Division and Regional Offices in the preparation of relevant statistics needed by the Bureau; d. Generate revenue statistics and estimates required by other units of the Bureau and other government agencies; e. Allocate the annual revenue goal by organizational unit, geographic subdivision by type of tax and by month; f. Monitor collection performance and prepare semestral and annual performance ratings of revenue regions, districts and audit divisions for management purposes; and acd g. Perform such other related functions as may be assigned. C-2 Statistical Research and Report Development Section a. Recommend standards and procedures in the proper reporting of revenue data from both national and regional offices for statistical purposes; b. Develop and prescribe the nature and content of statistical reports and information relevant to revenue administration and operations; c. Develop guidelines and techniques for the operating units to understand and utilize statistical information; d. Coordinate with other units of the bureau for the improvement of reporting collections and other types of data relevant to the needs of top management; e. Undertake studies for the improvement of collection, presentation, analysis, interpretation, and utilization of statistical data; f. Provide data and analysis of revenue collections for the Annual Report; g. Prepare, maintain and update statistical charts and graphs on revenue collections; and h. Perform such other related functions as may be assigned. D. The Tax Information & Education Division shall have the following functions; 1. Develop, formulate and recommend policies and work programs and set up standards, guidelines and procedures for the implementation of the tax information and education program of the Bureau to attain the highest degree of voluntary tax compliance and intensify tax consciousness; 2. Determine, monitor and analyze public reactions and attitudes towards the Bureau's Policies implementing revenue laws, regulations and other issuances; 3. Conduct an aggressive and continuing tax information and education campaign covering laws and regulations in tax administration and collection in coordination with regional and district offices to maximize potentials on all sources of revenue; 4. Coordinate with the mass media channels, i.e. press, radio and television, for the effective launching of periodic tax campaigns; 5. Render assistance to taxpayers in filing returns, answering queries, etc.; 6. Evaluate tax information and education activities to determine adherence to standards, guidelines and procedures; and 7. Perform such other related functions as may be assigned. The following shall be the functions of the sections under the Tax Information & Education Division: D-1 Information and Education Section a. Plan, develop and improve standards, guidelines and procedures on tax information and education; b. Plan, develop and conduct seminars, conferences and forums on tax information and education drives; c. Launch aggressive regional tax education drives in coordination with the regional offices of the Bureau and other government offices to maximize potentials on all sources of revenue; d. Prepare write-ups on various programs, projects and related activities of the Bureau, including press release, for dissemination through the mass media; e. Coordinate with field offices in conducting tax information campaigns and render assistance to taxpayers; f. Prepare tax education materials such as timely slogans and reminders, slides and documentary films for distribution to newspapers, radio and television networks; g. Plan, develop and accomplish audio-visual presentations on tax information and education for showing to the general and special public; h. Operate and maintain audio-visual equipment for use in seminars, conferences, briefings, forums, meetings and other similar affairs; i. Evaluate tax information and education activities to determine adherence to standards, guidelines and procedures; and j. Perform such other related functions as may be assigned. D-2 Publication Section a. Plan, develop and improve standards, guidelines and procedures on publications; b. Conduct researches and studies to determine tax publication needs, as well as the most economical and effective techniques and methods for publication; c. Prepare and publish the Bureau's official publication; d. Prepare and publish tax primers, pamphlets, newsletters, posters, tax calendars, and other printed matters relating to internal revenue taxes; e. Compile newspaper and magazine clippings of news items and articles relating to the revenue service; f. Evaluate and analyze public attitudes and reactions towards the bureau to determine the information needs of the reading public; and acd g. Perform such other related functions as may be assigned. D-3 Tax Assistance Section a. Plan, develop and improve standards, guidelines and procedures on tax assistance; b. Establish and operate a tax assistance counter in the national office and render tax information assistance to the public; c. Assist and coordinate in the establishment and operation of tax assistance units in all regional and district offices of the bureau; d. Assist taxpayers in the filing of their tax returns and in doing business with other offices of the Bureau; e. Answer queries on tax information and other activities of the Bureau and/or refer such queries to pertinent offices for appropriate action; f. Distribute tax information materials direct to the public; g. Refer complaints and other suggestions received to pertinent units/office for appropriate action; and h. Perform such other related functions as may be assigned. E. The Disbursement Accounting Division shall have the following functions: 1. Develop, formulate and recommend policies and work programs and set up standards, guidelines and procedures on the accounting of appropriation and disbursements incurred by the Bureau; 2. Process and review disbursement vouchers and payrolls in compliance with accounting and auditing rules and regulations; 3. Remit payments of deductions and withholding taxes to the proper entities concerned; 4. Prepare adjustments in the payroll of BIR personnel for computerization purposes; 5. Maintain books of accounts to reflect accurate and current financial information; 6. Issue and control Certifications of Availability of Funds (CAF) as required by auditing regulations; 7. Prepare financial and other statements required by fiscal authorities; 8. Issue certification of payments to the Medicare, GSIS, NHMFC (Pag-ibig), etc., requested by employees; and 9. Perform such other related functions as may be assigned. The following shall be the functions of the sections under the Disbursement Accounting Division: cdt E-1 Expenses Control Section a. Maintain updated balances of Requests for Obligation of Allotments (ROAs); b. Monitor all disbursements of the Bureau e.g. salaries, benefits and other sundry expenses; c. Keep and maintain subsidiary ledgers of all salary deductions, cash advances and uncomplied travel; d. Prepare lists of prior year claims to support requests for cash disbursement ceilings; e. Prepare and submit schedule of unliquidated obligations, cash advances and trust deposits; f. Process application for clearance of Disbursing Officers; g. Prepare a record of aging accounts payable; h. Review report of checks issued and reports of disbursing officers in the National Office and revenue regional offices and post them against corresponding ROAs; i. Remit payments to proper entities concerned; j. Issue certifications of deductions for loan applications of Bureau personnel with the GSIS, NHMFC (Pag-ibig) and other government and private agencies; and k. Perform such other related functions as may be assigned. E-2 Processing Section a. Process, review and settle the following claims for compliance with accounting and auditing rules and regulations: a-1) salaries, travel expenses, leaves and benefits of employees; a-2) Fiscal Agency Services (FAS) of revenue attaches and other officials going abroad on official mission; a-3) those of private and government creditors. b. Process salary deductions; c. Transmit to offices concerned suspended claims for compliance with audit requirement; d. Process necessary clearance of Bureau employees for retirement, leaves and other purposes; e. Prepare and transmit all changes in the payroll involving amounts of salaries, salary deductions, transfers and inclusion of newly appointed personnel, etc. for computerization purposes; f. Process application for clearance of Disbursing Officers; and g. Perform such other related functions as may be assigned. E-3 Bookkeeping and Reconciliation Section a. Maintain accounting records and books of accounts (journal, general and subsidiary ledgers) to reflect accurate and current financial information required by management and existing accounting and auditing rules and regulations; b. Maintain control of Cash Disbursement Ceiling (CDC); c. Prepare certifications of availability of funds; d. Reconcile the Treasury/Agency accounts current of the Bureau; e. Analyze and reflect adjustments in the books of accounts; f. Process claims on replacement of stale or lost warrants; g. Prepare financial statements and other periodic reports required by fiscal agencies and authorities concerned; h. Process application for clearance of Disbursing Officers; and i. Perform such other related functions as may be assigned. E-4 Records and Administrative Section a. Act as custodian of all accounting documents and records; b. Act as administrative arm of the division on all matters relating to personnel, supplies, physical facilities, document recording, receiving and releasing; c. Take charge, for safekeeping and permanent storage of disbursement books of accounts, reports and other disbursement accounting records; d. Act on requests for verification of information; e. Provide secretarial, typing, messengerial and reproduction services; f. Prepare certified copies of documents requested by duly authorized officials of the Bureau; g. Process application for clearance of Disbursing Officers; and h. Perform such other related functions as may be assigned. F. The Revenue Accounting Division shall have the following functions: 1. Develop, formulate and recommend policies and work programs and set up standards, guidelines and procedures relative to the accounting of all incomes and revenues realized by the Bureau; 2. Maintain accounting control for internal revenue collections and allotments; 3. Maintain subsidiary ledgers to control the individual accountabilities of collecting officers on tax collections; 4. Determine internal revenue allotments and shares of certain government agencies in special funds and make reports and certification thereof; 5. Process all approved tax refund claims for the issuance of the treasury warrants to individuals and corporations with overpayments, check replacements, and tax credits and replenishment of petroleum products consumed by tax-exempt entities; 6. Evaluate revenue accounting activities in the field offices to determine adherence to guidelines and procedures; 7. Determine and analyze revenue accounting problems and recommend solutions thereto; 8. Prepare and submit financial reports to management and other government ministries and agencies as required by law and regulations; 9. Coordinate with other units of the Bureau on matters pertaining to internal revenue collections; 10. Coordinate with the RTR-CR Monitoring Center of the Collection Office, regarding all reports of internal revenue taxes collected through the banking system; 11. Confirm and certify to the correctness of payment and other information verified from accounting records and documents; and 12. Perform such other related functions as may be assigned . The following shall be the functions of the sections under the Revenue Accounting Division: F-1 Direct Payment (ROR) Section a. Control and process collection reports covered by the direct payment system (ROR) including collections from abroad; b. Monitor, control and keep accurate and updated subsidiary ledgers of all collection agents, including Municipal Treasurers acting as collection agents, District Collections Supervisors and Revenue Attaches/Representatives; c. Maintain a record including accurate and updated subsidiary ledgers of accountabilities of all collection agents, District Collections Supervisors and Revenue Attaches/Representatives; d. Reconcile subsidiary ledger against a) cash books, b) Requisition and Issue Vouchers, c) Invoice and Receipts of Accountable Forms, d) Remittance advices and other reports to determine accountabilities at any given period; e. Process application for clearance of collection agents, District Collection Supervisors, Chiefs of Administrative Branches, Accountable Forms Custodian and Revenue Attaches/Representatives; f. Maintain a record of dishonored checks paid through collection agents and the redemption/settlement of the same; g. Prepare summary reports of payments through collection agents by type of tax, including advice for journal vouchers/entries needed as bases for entry into the journals and ledgers; h. Prepare call-up letters for late submission of reports as well as corrections and/or adjustments therein; and i. Perform such other related functions as may be assigned. F-2 Payments Thru Banks (PO/CR) Section a. Control and process collection reports covered by payments through authorized agent banks; b. Monitor, control and keep accurate and updated subsidiary ledgers of collections of each authorized agent banks head office; c. Reconcile subsidiary against the general ledger to determine accountabilities of each agent bank at any given period; d. Prepare summary reports on payments through agent banks by type of tax, deposits of collections and adjustments including advice for journal vouchers/entries needed as bases for entry into journals and ledgers; e. Prepare summary report of dishonored checks paid by agent banks by type of tax, etc.; f. Maintain a record of dishonored checks paid through authorized agent banks and the redemption/settlement of the same; g. Prepare call-up letters/inquiries relative to delayed submission and/or adjustments of reports of collection and remittance of authorized agent banks; h. Compute for penalties incurred by authorized agent banks for delayed submission of reports and remittances; i. Prepare collection reports for submission to management, Central Bank, Treasury as required under existing laws and regulations; and j. Perform such other related functions as may be assigned . aisa dc F-3 Allotments, Tax Refund/Credit and Miscellaneous Section a. Collate and summarize all internal revenue collections based on Form 12.01 (Summary Report of Collection) and the computerized collection report prepared by RISSI for determination of allotments to local government and special funds accruing to government-owned and controlled corporations and other agencies; b. Coordinate with government agencies such as NBI, LTC, Bureau of Customs, Ministry of Tourism, etc. relative to revenue collections through these agencies and secure certification of collection made by them; c. Coordinate with Bureau of Treasury for journal vouchers/remittance advices evidencing remittance of collections; d. Prepare advice for journal vouchers/entries as bases for entry into journals and ledgers; e. Prepare certification of monthly BIR allotments, special funds and special accounts for transmittal to pertinent government agencies; f. Process all dockets on approved tax refunds and tax credits including claims for replacement of stale or lost warrant; g. Notify taxpayers to submit required documents relative to their claim for tax refunds; h. Maintain a record of accountabilities of the Chief, Accountable Forms Division and process application for clearance of said official; and i. Perform such other related functions as may be assigned. F-4 Bookkeeping and Reconciliation Section a. Maintain revenue accounting records and books of accounts (journal, general and subsidiary ledgers) to reflect accurate and current financial information required by management and existing accounting and auditing rules and regulations; b. Reconcile the treasury/agency accounts current of the Bureau; c. Analyze and reflect and adjustments in the revenue books of accounts; d. Prepare financial statement and other periodic reports required by fiscal agencies and authorities concerned; and e. Perform such other related functions as may be assigned. cd i F-5 Records and Administrative Section a. Act as custodian of all revenue accounting documents and records; b. Act as the administrative arm of the division on all matters relating to personnel, supplies, physical facilities, document recording, receiving and releasing; c. Take charge, for safekeeping permanent storage of revenue books of accounts, reports and other revenue accounting records; d. Act on request for verification of information; e. Provide secretarial; typing, messengerial and reproduction services; f. Prepare certified copies of documents requested by taxpayers or duly authorized officials of the Bureau; and g. Perform such other related functions as may be assigned. IV. Repealing Clause : This Order supersedes the provisions of Revenue Administrative Order Nos. 2-80 dated October 2, 1980, 2-82 dated April 2, 1982, and 3-83 dated March 3, 1983 insofar as it pertains to the above-mentioned functions and all revenue issuance or portions thereof inconsistent with the provisions of this Order . cdt V. Effectivity : This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner