Publishing the Full Text of the Inter-Agency Task Force (IATF) Memorandum Circular No. 2019-2 dated November 12, 2019 by the Secretary of Department of Budget and Management (DBM), Entitled "Supplemental Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2019 under Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016"

November 29, 2019 REVENUE MEMORANDUM CIRCULAR NO. 137-19 SUBJECT : Publishing the Full Text of the Inter-Agency Task Force (IATF) Memorandum Circular No. 2019-2 dated November 12, 2019 by the Secretary of Department of Budget and Management (DBM),Entitled "Supplemental Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2019 under Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016" TO : All Internal Revenue Officials, Employees and Others Concerned For the information and guidance of all internal revenue officials and others concerned, attached is a copy of the Inter-Agency Task Force (IATF) Memorandum Circular No. 2019-2 dated November 12, 2019, Entitled "Supplemental Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2019 under Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016." All concerned are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible. HTcADC (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems (Administrative Order No. 25 s. 2011) MEMORANDUM CIRCULAR NO. 2019-2 November 12, 2019 TO : All Heads of Departments, Bureaus, Offices and Other Agencies of the National Government, including Constitutional Commissions, Congress, The Judiciary, Office of the Ombudsman, State Universities and Colleges, Government-Owned or -Controlled Corporations, Local Water Districts, and Local Government Units SUBJECT : Supplemental Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2019 under Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016 1.0 BACKGROUND AND PURPOSE The Administrative Order (AO) No. 25 Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems (AO 25 IATF) has issued Memorandum Circular (MC) No. 2019-1 (Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2019 under Executive Order No. 80, s. 2012 and Executive Order No. 201, s. 2016) dated September 3, 2019. Consistent with MC No. 2019-1, the Department of the Interior and Local Government (DILG), Local Water Utilities Administration (LWUA), and the Governance Commission for Government-Owned or-Controlled Corporations [GOCCs] (GCG) issued separate guidelines for the grant of the FY 2019 Performance-Based Bonus (PBB) for Local Government Units (LGUs), Local Water Districts (LWDs), and GOCCs, respectively. The issuance of this Supplemental Guidelines shall provide clarifications and updates on the requirements and deadlines stated in MC No. 2019-1, released by the AO 25 IATF on September 3, 2019. 2.0 SUPPLEMENTAL GUIDELINES The Supplemental Guidelines shall apply to the following sections of the IATF MC No. 2019-1, and all issued Interim FY 2019 PBB Guidelines for GOCCs under GCG, Local Water Districts (LWDs), and Local Government Units (LGUs): 2.1 On Section 4.0 Good Governance Conditions (GGCs) The following GGCs are set based on performance drivers of the Results-Based Performance Management System (RBPMS) and the priorities of the Duterte Administration for 1) heightened transparency; 2) stronger public accountability; and 3) more inclusive and people-centered public services: a. Maintain/Update the agency Transparency Seal (TS) pursuant to Section 106 of the General Provisions of the FY 2019 General Appropriations Act (GAA). The TS page should be accessible by clicking the TS logo on the home page. Status of compliance shall be posted both DAP website through https://www.dap.edu.ph/rbpms/ and DBM website at www.dbm.gov.ph/index.php/news-update/transparency-seal compliance See Annex 2: Guideline on Transparency Seal for full details of requirements. b. Update the PhilGEPS posting of all Invitations to Bids and awarded contracts pursuant to the Government Procurement Reform Act (RA No. 9184) for transactions above Php1 million from January 1 to December 31, 2019, including Early Procurement of FY 2020 Non-Common Use Supplies and Equipment (Non-CSE) items. Agencies should track their status of compliance through the PhilGEPS microsite: https://data.philgeps.gov.ph/pbbweb/pbbwebapp.aspx .see Annex 6: Guideline on PhilGEPS Posting . Non-compliance with any of the GGCs will render the entire department/agency ineligible for the PBB. The assessment of agency compliance with GGC requirements started last October 1, 2019. In view of the first year implementation of the Citizen's Charter requirement under RA No. 11032 and MC No. 2019-002 issued by the Anti-Red Tape Authority (ARTA), the updating of the Citizen's or Service Charter or its equivalent will not be a Good Governance Condition for purposes of the PBB. However, it shall be understood that agencies shall comply with the December 6, 2019 deadline set by ARTA. Kindly refer to the Supplemental Guidelines to be issued by ARTA on this. 2.2 On Section 5.1 Streamlining and Process Improvement of the Agency's Critical Services a. The updated Citizen's or Service Charter or its equivalent shall still be the basis for the review of the agency's critical services covering all Government-to-Citizens (G2C),Government-to-Businesses (G2B),and Government-to-Government (G2G) transactions. b. Relative to the agency's FY 2019 Performance Targets, below are additional details that would guide agencies in accomplishing their forms. For Modified Form A, departments/agencies shall report a summary of the streamlining efforts containing the Status as of FY 2018, Targets set in FY 2019 and Status of efforts done in FY 2019 ,pertaining to the following criteria: 1 Number of steps Turnaround time Number of signatures Number of required documents Transaction costs o Primary transaction cost/fees o Other transaction costs Substantive Compliance Cost Citizen/client satisfaction results c. In order to assist the AO 25 Composite Teams in understanding the government services provided by the departments/agencies, a more detailed report of these services and the streamlining criteria must be declared in Modified Form A1, which should also include the following additional information: DETACa Name of Service state as declared in the Citizen's or Service Charter or its equivalent. Responsible delivery/processing units declare all delivery units contributory to the completion of the reported government service. Identified Clients/Customers identify all documented types of clients/customers who avail of the government service. Number of client visit/s in 2019 report the total number of visit/s (including returns) the client underwent in completing the entire service. Volume of Transactions in 2019 provide data on the volume of transactions of the declared services delivered by the agency. Remarks indicate justifications, explanations, and/or supporting data on the service. d. Ensure that the submitted Modified Forms A and A1 (see attached) are duly signed by the Supervising Officer and approved by the Department/Agency Head or Designated Official. e. Small agencies shall submit their Modified Forms A and A1 on or before February 28, 2020 and big departments/agencies on August 31, 2020 . 2.3 On Section 5.4a Computation of Agency's FY 2019 Budget Utilization Rate (BUR) Pursuant to Section 1 of EO No. 91, s. 2019, 2 Departments/Agencies shall adopt the Cash Budgeting System (CBS) effective January 1, 2019. Accordingly, all authorized appropriations shall be available for obligation and disbursement only until the end of each fiscal year (FY).Departments/Agencies shall observe Section 5 Transitory Provisions which states: "In the first year of implementing the CBS, the concerned national government agencies and qualified GOCCs shall strictly comply with the following: a. Appropriations for infrastructure capital outlays, including subsidy releases to GOCCs for infrastructure projects, shall be valid for obligation until 31 December 2019. Meanwhile, the completion of construction inspection and payment shall be made not later than 31 December 2020; and b. Appropriations for maintenance and other operating expenses as well as other capital outlays shall likewise be valid for obligation until 31 December 2019. On the other hand, the delivery, inspection and payment shall be not later 30 June 2020." aDSIHc 2.4 On Section 5.4c Compliance with Quarterly Submission of Budget and Financial Accountability Reports (BFARs) Online Using the DBM's Unified Reporting System (URS) Acknowledging the shift to URS Version 2.0 and the calibration of the accountability reports, the quarterly submission of BFARs online using the URS shall no longer be a GASS target for compliance to the grant of FY 2019 PBB. 2.5 On Section 5.4d Submission of Annual Procurement Plan (APP-non CSE) Section 7.3.5 of the 2016 revised IRR of Republic Act No. 9184 provides that the final and approved APP shall be submitted to the GPPB as soon as the GAA, corporate budget, or appropriations ordinance is approved. Thus, the APP submitted prior to the approval of the GAA, corporate budget, or appropriations ordinance is merely indicative and will NOT be considered as compliance with the APP submission. 2.6 On Section 5.4e Submission of FY 2020 Annual Procurement Plan-Common Use Supplies and Equipment (FY 2020 APP-CSE) To afford sufficient time for Departments/Agencies, entities, and instrumentalities to prepare the list of the items that they need for FY 2020, the Procurement Service (PS) recommends the extension of the submission of the FY 2020 APP-CSE from October 31, 2019 to December 15, 2019 .Submission will be done online by uploading the filled-out template in the PhilGEPS Virtual Store. 2.7 On Section 5.4f Undertaking of Early Procurement for at least 50% of the value of goods and services based on the department/agency's budget submitted to the Congress consistent with the NEP Departments/Agencies including GOCCs with budgetary support from the national government, and under the National Expenditure Program (NEP) shall conduct the undertaking of Early Procurement Activities (EPA) for at least 50% of the value of goods and services based on the department/agency's budget submitted to the Congress consistent with the NEP. For purposes of determining the total value, projects which will use the following modalities are excluded in the computation of the total value of goods and services, following GPPB Circular No. 06-2019 (procurement modalities excluded from the EPA coverage): 1. Repeat Order 2. Shopping 3. Negotiated Procurement Emergency Cases 4. Negotiated Procurement Take-Over of Contracts 5. Negotiated Procurement Small Value Procurement Deadline of posting of Approved Contract and Notice to Proceed in PhilGEPS is on or before January 31, 2020. Agencies NOT receiving budgetary support from the national government are excluded from this PBB requirement . Heads of the Procuring Entity (HOPE) of covered departments/agencies shall submit to the GPPB a Certification under Oath on the compliance with EPA requirement on or before January 31, 2020 . To support Early Procurement, the Indicative FY 2020 APP-non CSE consistent with the FY 2020 National Expenditure Program (NEP) should be posted on the agency TS page not later than September 30, 2019 .The indicative APP is NOT submitted to the GPPB. 2.8 On Sec. 7.5 Agency's System of Rating and Ranking of Delivery Units for FY 2019 (SRR) Departments/Agencies shall prepare the System of Agency Ranking of Delivery Units for FY 2019 PBB using the Form for the Guidelines/Mechanics in Ranking Delivery Units (See Annex 8).The duly completed and signed agency guidelines in ranking delivery units shall be posted on the agency TS webpage on or before October 1, 2019 . Should the Departments/Agencies decide to retain the previously posted Guidelines, they should indicate or take note in the website that no changes have been made from the previous year's System of Agency Ranking of Delivery Units. 2.9 On Sec. 9.6 Updated FY 2019 PBB Implementation Timeline Deadline Requirements To submit/refer Physical Targets February 28, 2020 Streamlining and Process Improvement of Agency Services (small agencies) Citizen/Client Satisfaction SUCs Physical Targets Annexes 3A and 3B (Modified Forms A/A1) Annex 4 Form 1.0 PBB Evaluation Matrix Annex 5 (Modified Forms A/A1) Form 1.0 PBB Evaluation Matrix Based on the timeline set by GCG, LWUA, and DILG For Physical Targets of the ff: GOOCs covered by RA 10149 LWDs LGUs Forms required by GCG, LWUA, and DILG August 31, 2020 Streamlining and Process Improvement of Agency Services (big agencies) Citizen/Client Satisfaction Annexes 3A and 3B (Modified Forms A/A1) Annex 4 Form 1.0 PBB Evaluation Matrix Good Governance Conditions (GGCs) October 1, 2019 Transparency Seal Annex 2 January 31, 2020 PhilGEPS Posting Annex 6 Support to Operations (STO) December 31, 2019 QMS Certification Post QMS Certification in TS page Submit certified true copy of QMS certificate to GQMC through DBM-SPIB General Administration and Support Services (GASS) March 30, 2019 COA Financial Reports (small agencies) March 31, 2019 FY 2019 APP-non CSE Results of FY 2018 APCPI System September 30, 2019 Indicative FY 2020 APP-non CSE Posting in the Transparency Seal December 15, 2019 FY 2020 APP-CSE December 31, 2019 Sustained Compliance w/Audit Findings January 31, 2020 Early Procurement Activities Submit Certification under Oath of Compliance to EPA to the GPPB Posting of all Contracts and Notice to Proceed of successful EPAs Other-cross Cutting Requirements October 1, 2019 Agency SALN Review and Compliance Procedure Agency's System of Rating and Ranking of Delivery Units To be posted in the Transparency Seal November 30, 2019 People's FOI Manual To be posted in the Transparency Seal January 31, 2020 FOI Reports Agency Information Inventory 2019 FOI Registry and FOI Summary Report Screenshot of agency's home page 3.0 EFFECTIVITY CLAUSE This Supplemental Guidelines to the AO 25 IATF MC No. 2019-1 dated September 3, 2019 shall take effect immediately. TIADCc Certified true copies of this Circular shall be posted on the RBPMS website and the Official Gazette, and shall be filed with the University of the Philippines (UP) Law Center. (SGD.) WENDEL E. AVISADO Secretary, Department of Budget and Management and Chairman, AO 25 Inter-Agency Task Force ANNEX 3A Modified Form A Department/Agency Performance Report ANNEX 3B Modified Form A1 Details of Bureau/Office Performance Report 1 Footnotes 1. Follow definitions stated in MC No. 2019-1. 2. Adopting the Cash Budgeting System Beginning Fiscal Year 2019, and for Other Purposes .