BIR Operational Key Performance Indicators for CY 2019

January 23, 2019 REVENUE MEMORANDUM ORDER NO. 007-19 SUBJECT : BIR Operational Key Performance Indicators for CY 2019 TO : All Internal Revenue Officials and Employees I. OBJECTIVES In observance of the provisions of the Tax Reform Acceleration and Inclusion (TRAIN) Program; Ease of Doing Business and Efficient Government Service Delivery Act (Republic Act No. 11032); and the Data Privacy Act (Republic Act No. 10173), as well as the results of the Bureau's Strategic Planning Sessions, this order is being issued to: HTcADC 1. Update the BIR Operational Key Performance Indicators (KPIs) for Revenue Regions (RRs), Revenue District Offices (RDOs), Regional Divisions (RDs), and Large Taxpayers Service (LTS); and, 2. Set forth the policies, guidelines and procedures that shall govern the monitoring, preparation and submission of Accomplishment Reports, and the preparation of Evaluation and Summary Reports on Operational KPIs. II. POLICIES In pursuing the aforesaid objectives, the following policies shall be observed: 1. The elements of each Operational KPI, i.e. , definition of the KPI, KPI weight, formulas, KPI targets, are provided in Annex A of this order. 2. The concerned Assistant Commissioners (ACIRs), who have been identified as Measures Owners (MOs) in the column "Monitoring Office" in Annex A, shall be responsible for monitoring, reviewing and evaluating their respective Operational KPIs, to assess the performance of the concerned offices against their goals/targets under their Operational KPIs. CAIHTE 3. The Assessment Service shall be the lead monitoring office for KPI Nos. 5, 6, and 7. The following KPIs shall be monitored by concerned offices to support the lead MO in the timely submission of accurate data/information: 3.1 For KPI No. 5 Audit Effort 3.1.1 For RRs/RDOs Assessment Service (for eLAs, TVNs, DNs); and TSPMD under the Client Support Service (for TCVD) 3.1.2 For Investigating Office under LTS-LTS aScITE 3.2 For KPI No. 7 Audit Efficiency 3.2.1 For RRs/RDOs Assessment Service 3.2.2 For Investigating Office under LTS-LTS 4. The LTS will include the following offices as "Implementing Office" for a particular KPI: KPI No. KPI Implementing Office(s) 1 Collection Performance LT Notional Office Audit Div. (LTNOADs), LTD-Cebu City, LTD-Davao City, Excise LT Field Operations Div. (ELTFOD) 2 Percentage Increase in Collection LTNOADs, LTD-Cebu City, LTD-Davao City, ELTFOD 5 Audit Effort LTNOADs, LTD-Cebu City, LTD-Davao City, LT VAT Audit Unit (LTVATAU) 6 Increase in collection by 5% of previous year's audit collection goal LTVATAU 7 Audit Efficiency LTNOADs, LTD-Cebu City, LTD-Davao City, LTVATAU 8 Reduction of Tax Arrears LTD-Cebu City, LTD-Davao City, LT Collection Enforcement Div. (LTCED) 9 Reduction of valid TAMP Stop-Filer cases LTD-Cebu City, LTD-Davao City, LT Document Processing & Quality Assurance Div. (LTDPQAD), LTCED, Excise LT Regulatory Div. (ELTRD), LT Assistance Div. (LTAD) 5. The score for each KPI will be computed as: DETACa Applicable KPI Formula Score = x KPI Weight Applicable KPI Target 6. The overall rating will be computed as: Total KPI Score Overall Rating = x 100% Total Applicable KPI Weights 7. In the event that the actual accomplishment exceeds the KPI target, the score to be given shall be the maximum assigned KPI weight. 8. Figures to be used in all computations required in this Order shall be rounded off to the nearest two (2) decimal places. 9. The Operational KPIs should be included as measures in the Office Performance Commitment and Review (OPCR) Form, as well as in the Office Index of Success Indicators of the RRs, RDs, RDOs, LTS, LTNOADs, LTD-Cebu City and LTD-Davao City, ELTFOD, LTVATAU, LTCED, LTDPQAD, ELTRD and LTAD in relation to the Strategic Performance Management System (SPMS). HEITAD 10. The accomplishment report and evaluation report shall be prepared every 1st semester (January to June) and annual based on the cumulative accomplishment covering January to December. 11. Issues arising for a particular Operational KPI shall be the responsibility of the concerned MO(s). 12. The Operational KPIs prescribed under this Order shall be adopted in the succeeding years until there shall be amendments/revisions to be recommended by the MO(s). III. GUIDELINES AND PROCEDURES A. The following are the guidelines and procedures in the preparation and submission of accomplishment and evaluation reports. 1. RDOs/Regional Divisions, LTNOADs/LTD-Cebu City and LTD-Davao City/ELTFOD/LTVATAU/LTCED/LTDPQAD/ELTRD/LTAD shall: 1.1 Prepare the semestral/annual Accomplishment Report for each applicable Operational KPI using the prescribed format; and aDSIHc 1.2 Ensure accuracy of data prior to submission of the Accomplishment Report to the Regional Director and ACIR-LTS. 2. Regional Director and ACIR-LTS shall: 2.1 Consolidate the Accomplishment Reports per KPI; and 2.2 Validate the accuracy and completeness of data prior to submission of the Accomplishment Report to concerned Measure Owner. 3. The Measure Owner shall: 3.1 Monitor the timely submission of Accomplishment Report by all Regional Directors and ACIR-LTS; 3.2 Prepare the semestral (January to June)/annual (January to December) Evaluation Report for each KPI. The Evaluation Report shall detail the: ATICcS i) Score per KPI of RRs, RDOs, RDs LTS and its implementing offices; and ii) Ranking of offices. 3.3 Ensure the completeness and accuracy of the Accomplishment Report received from RRs and LTS; and 3.4 Submit the Evaluation Report per KPI to the ACIR-Planning and Management Service, Attention: Planning and Programming Division (PPD). 4. Planning and Management Service/PPD shall: 4.1 Monitor the compliance of concerned ACIR/MO relative to the submission of KPI Performance Evaluation Report; 4.2 Consolidate the Office KPI Performance Report per RR and LTS; 4.3 Prepare a Summary Report on the result of the rating of KPIs; and ETHIDa 4.4 Submit the Office KPI Performance Report to MANCOM. B. The Accomplishment and Evaluation Reports shall be prepared and submitted in accordance with the following schedules: REPORT SUBMITTED BY SUBMITTED TO DUE DATE Accomplishment Report per Operational KPI (Annex B) Chiefs, Regional Division and RDOs Regional Director concerned Semestral Report : On or before July 25 Chiefs, LT National Office Divisions and LTDs Cebu and Davao Assistant Commissioner, LTS Annual Report : On or before January 25 Consolidated Accomplishment Report on KPI (Annex C) Regional Directors and ACIR-LTS MO concerned (ACIRs) Semestral Report : On or before July 30 Annual Report : On or before January 31 Evaluation Report on KPI (Annex D) Measure Owners (ACIRs) ACIR-PMS Attention: Chief, PPD Semestral Report : On or before August 15 Annual Report : On or before February 15 Consolidated Evaluation Report on KPIs (Annex E) ACIR-PMS Thru: PPD MANCOM Semestral Report : On or before August 30 Annual Report : On or before February 28 IV. REPEALING CLAUSE This Order supersedes Revenue Memorandum Order Nos. 12-2018, 18-2018, 51-2018 and all other issuances or portions thereof inconsistent herewith. TIADCc V. EFFECTIVITY This Order takes effect immediately until there shall be amendments/revisions recommended. Date Issued: February 1, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A CY 2019 Operational Key Performance Indicators (KPIs) Accomplishments No. KPI Formula Target KPI Weight LTS RR RDO Monitoring Office Objective 1: Attained Collection Target and Sustained Collection Growth 1 Collection Performance Actual Collections x 100 Assigned Goal 100% collection of assigned goal 35 35 35 35 Collection Service (CS) 2 Percentage Increase in Collection (Actual collection Previous year's collection) x 100 Previous year's collection 10% increase from previous year's collection 15 15 15 15 CS 3 RATE cases Number of cases filed x 100 Target for the period One (1) significant case per semester per RDO 3 n/a 3 3 Enforcement and Advocacy Service (EAS) 4 Oplan Kandado Number of establishments approved for closure under Oplan Kandado x 100 Target for the period One (1) closure per semester per RDO 3 n/a 3 3 ODCIR-Operations Group 5 Audit Effort Collection from Audit/Enforcement (eLAs, TVNs, DNs, TCVDs) x 100 Assigned Collection Goal* Collection from Audit/Enforcement (eLAs, DNs) x 100 Assigned Collection Goal * (* Net of voluntary compliance collections from withholding tax on compensation income, TRA of NGAs, withholding taxes of LGUs, SARO and Taxes on ONETT) 3% of assigned collection goal* 3 3 3 3 Assessment Service (AS) 6 Increase in collection by 5% of previous year's audit collection goal Previous year's audit collection x 105% 5% increase from previous year's audit collection goal for RRs with VATAS and LTVAU 3 3 3 (RRs 5, 6, 7, & 8 only) n/a AS 7 Audit Efficiency Number of reported cases covered by eLAs transmitted by investigating office and acknowledged by the reviewing office x 100 Total number of cases covered by eLAs handled by the investigating office 75% of eLAs handled together with the corresponding dockets were transmitted by the investigating office and acknowledged by the reviewing office 3 3 3 3 AS 8 Reduction of Tax Arrears 2019 Arrears Collected/Cancelled Thru ATCA 2018 Arrears Collected/Cancelled Thru ATCA x 100 2018 Arrears Collected/Cancelled Thru ATCA 7% of increase in Arrears collected/cancelled thru Authority to Cancel Assessment (ATCA) over previous year 3 3 3 3 CS 9 Reduction of valid TAMP Stop-Filer Cases Number of valid TAMP stop filer cases closed x 100 Total number of valid TAMP stop filer cases handled For LTS = 90% For RDOs = 80% (TAMP) 3 3 3 3 CS Objective 2: Improved Taxpayers Satisfaction and Compliance 10 Increase in number of active business registrants Total number of current active business registrants Total number of previous year's active business registrants x 100 Total number of previous year's active business registrants 5% increase in the number of registered active business taxpayers 3 n/a n/a 3 Client Support Service (CSS) 11 Validation of Inactive Business Taxpayers Total number of inactive business taxpayers with validated and End dated Tax Types and Form Types x 100 Number of inactive business taxpayers determined by ISG 2% of inactive business taxpayers validated 3 n/a 3 3 CSS 12 Batch Control Sheet/Return Retrieval Efficiency Number of Transmitted BCS to DPD x 100 Number of BCS Retrieved by RDO 100% of BCS retrieved by RDO from the AAB are transmitted to DPD 3 n/a 3 3 CS Number of BCS Validated by RDO x 100 Number of Uploaded BCS to ITS 100% of AAB-Uploaded BCS validated by RDO 3 n/a 3 3 Objective 3: Strengthen Good Governance 13 Percent of administrative cases acted upon Number of administrative cases acted upon x 100 Total number of administrative cases filed (Note: "Acted upon" pertains to cases with decision and order) 80% of the total number of administrative cases filed were acted upon 2 n/a 2 n/a Internal Affairs Service 14 Posting of procurement and award to PhilGeps Actual posting x 100 Required posting Quantity : 100% of items above P50,000 procured as required by law are posted Quality : 100% compliance Timeliness : Posted within 3 working days after approval of request and issuance of Notice of Award 2 n/a 2 n/a Admin. Service 15 Submission of Financial Statements to the Commission on Audit (COA) Financial Statements submitted by January 31st of the following year Quality : In conformity with the Generally Accepted State Accounting Principles Timeliness : Not later than January 31st of the following year 2 n/a 2 n/a Finance Service (FS) 16 Liquidation of Cash Advances granted to officials/employees Number of personnel with cash advance due for liquidation who submitted liquidation report x 100 Number of personnel granted with cash advance Quantity : 100% of personnel granted with cash advance due for liquidation submitted liquidation report Quality : 100% correctness of supporting documents submitted Timeliness : Within the period prescribed under existing accounting and auditing rules and regulations 2 n/a 2 n/a FS Objective 4: Improve Strengthen Good Governance, Integrity, Competence, Professionalism, and Satisfaction of Human Resources 17 Expedite recruitment of new personnel and promotion of qualified employees Recruitment Number of signed appointments for vacant entry level positions x 100 Total number of vacant entry positions or Number of signed appointments for vacant entry level positions x 100 80% of the total number of vacant entry level positions Recruitment Filled up Entry Level Positions at the rate of: 100% for twenty (20) or less vacant positions, and/or 80% for more than twenty (20) vacant entry level positions. 3 n/a 3 n/a Human Resource Development Service (HRDS) Promotions Promotions List of Promotables with complete documents to be submitted on or before: 1st Semester August 31st of the current year 2nd Semester February 28th of the following year 100% of employees included in the list of promotable employees with complete documents submitted 2 2 2 n/a Objective 5: Optimize Management of Resources 18 Budget Utilization Rate (BUR) Obligation BUR FS Total Obligations x 100 Total allotment 100% budget utilized 2 n/a 2 n/a Disbursement BUR Total disbursement (cash and non-cash) x 100 Total obligations 100% budget obligations paid 2 n/a 2 n/a Total applicable weight 67 97 80 ANNEX B Accomplishment Report on Operational Key Performance Indicators (KPIs) for the Period of (Semester/CY) Office (RDOs/Regional Divisions/LTNOAD/LTD/ELTFOD/LTDPQAD/LTCED/ELTRD/LTAD/LTVATAU) Operational KPIs Target Accomplishment Remarks (Explanation of under/over performance) (a) = Numerator (b) = Denominator (c) = [(a)/(b) x 100%]/Target (As indicated in Annex A) (As indicated in Annex A) NOTE : All figures should be expressed in two decimal places. I attest to the accuracy of the information contained herein. ____________________________________ (Signature Over Printed Name) (LTDs/LTADs/RDOs/Regional Divisions) ANNEX C Consolidated Accomplishment Report on Operational Key Performance Indicators (KPIs) for the Period of (Semester/CY) Office (Revenue Region No. _____ /LTS) Operational KPIs Target Accomplishment Remarks (Explanation of under/over performance) (a) = Numerator (b) = Denominator (c) = [(a)/(b) x 100%]/Target (As indicated in Annex A) (As indicated in Annex A) 1. Collection Performance RR No. 1 RDO 1 RDO 2 RDO 3 LTS LTD Cebu LTD Davao NOTE : All figures should be expressed in two decimal places. I attest to the accuracy of the information contained herein. ____________________________________ (Signature Over Printed Name) (Regional Director/ACIR-LTS) ANNEX D Evaluation Report on Operational Key Performance Indicator (KPI) Operational Key Performance Indicator : (Pls. refer to Annex A) Office Target Percentage of Accomplishment (a) KPI Weight (b) Score (c) = (a)* (b) Ranking of Offices (Highest to lowest) A. Revenue Region and LTS (As indicated in Annex A) B. RDOs and LT Divisions NOTE : All figures should be expressed in two decimal places. I attest to the accuracy of the information contained herein. ____________________________________ (Signature Over Printed Name) (Assistant Commissioner) ANNEX E Consolidated Evaluation Report on KPIs CY ______ Office Key Performance Indicators (KPIs) Large Taxpayers Service, Revenue Region Nos. 1 to 19 and Revenue District Office Nos. 1 to 115