The Inspection Department — Its Organization & Function

December 11, 1963 REVENUE MEMORANDUM ORDER NO. 01-64 SUBJECT : The Inspection Department its Organization & Function Pursuant to the provisions of Republic Act No. 3845, creating an additional department in the Bureau of Internal Revenue, there is hereby organized the Inspection Department which shall be directly under the supervision and control of the Commissioner of Internal Revenue. It shall be the general objective of the Inspection Department to assist all organizational levels of management in the Bureau to effectively carry out their duties and responsibilities by furnishing objective analyses, appraisals and evaluation of their activities, and by developing and conducting a program that will insure and promote the maintenance of the highest standards of honesty and integrity among revenue personnel. cdtech I ORGANIZATION : The head of the Inspection Department shall be a Revenue Operations Head who shall be responsible for carrying out the duties and functions of the Department. He shall be assisted by an Assistant Revenue Operations Head who shall be the second highest ranking official in the Department. In the absence of the Revenue Operations Head, the Assistant Revenue Operations Head shall act for and in behalf of the former. The inspection Department shall have two divisions: (1) the inspection Division and (2) the Internal Security Division. The National Supervisors Division, currently operating under the Management and Planning Department, shall become the Inspection Division, and for this purpose all personnel, equipment, supplies, records and documents of the National Supervisors Division, shall be transferred to and absorbed by the new Division. The present chief of the National Supervisors Division shall automatically become the Chief of the Inspection Division. The Personnel Investigation Unit, currently operating under the Personnel Division of the Administrative Services Department and the Complaints and Efficiency Committee shall become the Internal Security Division, and for this purpose all personnel assigned thereto as well as equipment, supplies, records, documents and pending papers thereat shall be transferred to and absorbed by the new Division. All other special bodies, committees or groups created by special order or orders to undertake the investigation of erring personnel and/or to enforce discipline in the conduct of the revenue service shall be dissolved or relieved of such responsibility and all records and documents in their possession in this regard shall accordingly be immediately transferred to the Internal Security Division. A copy of the receipt signed by the Chief, Internal Security Division acknowledging such transfer shall be furnished the Records Control Section of the General Services Division for reference on the whereabouts of such documents and records. The present chief of the Personnel Investigation Unit of the Personnel Division shall automatically become the Chief of the Internal Security Division. To insure more efficient operation in the accomplishment of objectives, sections may be created within the two divisions to pinpoint specialized responsibilities, upon recommendation of the Department Head and approval by the Commissioner. II FUNCTIONS : A It shall be among the powers and duties of the Inspection Department 1. To recommend policies and programs affecting the operations and internal security of the Bureau. 2. To conduct independent reviews and appraisals of all activities of the Bureau as a basis for protective and constructive service to management. 3. To undertake measures which will promote and maintain the highest standards of honesty and integrity among Bureau personnel. 4. To submit the Commissioner of Internal Revenue periodic and special reports and recommendations on the activities reviewed, investigated, and evaluated, as well as reports on its own activities. 5. To have access to all documents, records, premises and property of the Bureau in connection with the performance of the foregoing functions. 6. To assume such other related functions as may be assigned to it from time to time. B The inspection Division shall have among its functions the responsibility 1. To determine whether: a. All activities of the Bureau are being conducted efficiently, effectively and economically; b. All activities of the Bureau are being conducted in accordance with law, policy and established rules and regulations; c. All revenues due the government by virtue of the Internal Revenue Code and such other related laws administered and/or enforced by the Bureau are duly collected and properly accounted for; d. All reports required of operating and staff units of the Bureau are accurate, useful and promptly submitted; 2. To review and appraise properties, supplies and equipment acquired by the Bureau to determine compliance with approved specifications and standard; and to determine whether they are properly utilized and maintained. 3. To conduct independent reviews and appraisal of all Bureau activities to determine the adequacy and effectiveness of operating policies, practices, procedures, and controls. 4. To make special studies and/or examinations as requested by the Commissioner or Deputy Commissioner of Internal Revenue; and 5. To develop an annual schedule of internal audits, and to submit prompt reports of internal audits completed on functional segments of the various levels of the BIR organization. 6. To undertake such special projects as may be assigned by the Commissioner. C The Internal Security Division shall have among its functions the responsibility 1. To develop, coordinate and control the internal security policies and programs of the Bureau. aisadc 2. a) To undertake character and background investigations of prospective employees and submit reports thereon. b) To investigate all complaints against BIR employees and to submit reports of findings. c) To cope with attempts of taxpayers to bribe BIR personnel, and to design ways and means of combatting this problem both in specific cases and through general programs. 3. To advise the Personnel Division when specific employees are under investigation and to issue clearance certifications upon appropriate request. 4. To plan and conduct a program of formal investigation of accidents involving revenue employees on duty as well as accidents involving property of the Bureau; 5. To make such other special investigations, studies and inquiries as may be directed by the Commissioner of Internal Revenue; 6. To coordinate with the law enforcement agencies in the gathering of information involving the conduct, honesty or integrity of revenue employees or those concerning security matters of the Bureau; 7. To assume such other functions as may from time to time be assigned to it. III REPEALING CLAUSE : All orders or provisions of orders in conflict with this Order are suspended or modified. IV EFFECTIVITY : This Order shall take effect upon its approval. (SGD.) RAMON T. OBEN Acting Commissioner of Internal Revenue APPROVED: (SGD.) RODRIGO D. PEREZ, JR. Acting Secretary of Finance