Submission of Statement of Report of Collections and Deposits (SRCD)

June 10, 2014 REVENUE MEMORANDUM ORDER NO. 026-14 SUBJECT : Submission of Statement of Report of Collections and Deposits (SRCD) TO : All Internal Revenue Officers and Others Concerned I. Background It has been observed that a number of Revenue Collection Officers (RCOs)/Special Collection Officers (SCOs)/Collection Officers (COs) are often remiss in the submission of their Statement of Report of Collections and Deposits (SRCDs). As such, the Revenue Accounting Division (RAD) cannot fully account on time the collections from all RCOs/SCOs/COs. In order to address the issues of unreported/undeposited collections of RCOs and to ensure that the same are remitted on time and credited as collection performance of this Bureau by the Bureau of the Treasury (BTr), the RAD and the newly created Collection Performance Monitoring Division (CPMD), both under the Collection Service, are tasked to exert effort for the timely reconciliation with the BTr of all internal revenue made collections thru the RCOs/SCOs/COs, as well as the effective monitoring of their respective collection performance. II. Objectives This Order is issued to: A. Ensure that all internal revenue collections from RORs are timely reported and deposited intact by the RCOs/SCOs/COs to the Authorized Government Depository Banks (AGDBs) and fully credited to the account of the Bureau of Internal Revenue (BIR) by the BTr. SCHIcT B. Ensure the accurate and timely reconciliation of the Bureau's collections thru the RCOs with the BTr. C. Prescribe the uniform guidelines and procedures to be observed by the Revenue District/Regional Offices in the preparation and submission of the Weekly SRCDs of the RCOs/SCOs/COs. III. Policies and Guidelines A. All Revenue District Offices (RDOs) shall strictly comply with the timely and regular submission of the Weekly Consolidated Statement of Report of Collections and Deposits (SRCD) in hard/soft copies thru e-mail to the Chief, Regional Finance Division (RFD) of the Regional Offices on or before the 5th day following the end of each calendar week, copy furnished the Regional Collection Division (RCD), CPMD and RAD. B. All Regional Finance Divisions (RFDs) shall immediately validate the weekly SRCD submitted by the RDOs within their respective jurisdiction and submit the validated SRCD in hard/soft copies thru e-mail to the RAD within three (3) days from the receipt of the report from the RDOs. C. The RAD shall reconcile collections thru RCOs based on the reports submitted by the RDOs and RFDs against the Bureau of the Treasury-Journal Entry Vouchers (BTr-JEVs) and inform the BTr, on or before the monthly closing of the BTr books, any tax collections thru the RCOs for the current and prior months not yet credited by the Bureau of the Treasury-National Cash Accounting Division (BTr-NCAD) to the account of the BIR. acAESC D. The CPMD shall be responsible for the monitoring of the performance of the RCOs/SCOs/COs to determine adherence to policies, procedures and standards in the acceptances of tax payments and in remitting the same to the BTr in accordance with the existing revenue issuances on the collections and remittances of internal revenue collections thru the RCOs. E. In order to ensure that all soft copies of the reports directly submitted to and/or copy furnished the RAD and CPMD are timely received by the said offices, the same shall be emailed to [emailprotected] and [emailprotected] , respectively. IV. Procedures A. Revenue District Offices (RDOs) shall: 1. Require all RCOs/SCOs/COs within their respective jurisdictions to select only one (1) Authorized Government Depository Bank (AGDB) branch nearest to their respective place of assignment where they will regularly deposit their daily collections. For circuiting RCOs handling two or more municipalities, however, they may select and deposit their daily collections to one (1) AGDB branch for each municipality nearest to their place of assignment; DTcASE 2. Submit the current list of selected AGDB per RCO/SCO/CO to the RCD, RFD, CPMD and RAD not later than July 31, 2014. In case there is a transfer of assignment of any RCO/SCO/CO to other RDO or municipality within the same RDO, the incoming RCO/SCO/CO shall likewise immediately select his/her preferred depository AGDB and the pertinent information shall be submitted to the RAD by the RDO within five (5) days from assumption of duty by the RCO/SCO/CO in his/her new assignment; 3. Require the RCOs/SCOs/COs to fully accomplish the SRCD (Annex "A") on a weekly basis not later than the 3rd day of the following week and ensure that all pertinent information, as required in the said Annex, are properly and completely indicated thereat. For this purpose, the weekly report shall be made on a calendar week basis ( i.e. , 1st to 7th day; 8th to 15th day; 16th to 22nd day; 23rd to end of each month); 4. Review the weekly SRCDs submitted by the RCOs/SCOs/COs and compare the same with the generated List of Deposited and Undeposited Collections in the web-based Mobile Revenue Collection Officer System (MRCOS). In case of discrepancies, require the RCOs/SCOs/COs to account for the discrepancies noted and submit amended reports thereon, if warranted; 5. Prepare and submit the reviewed Weekly Consolidated SRCD (Annex "B"), in hard and soft copies, to the RFD, copy furnished RCD, RAD, and CPMD, not later than the 5th day following the end of each calendar week; and aITECD 6. Reconcile the Weekly Consolidated SRCDs with the Monthly Consolidated Statistical Report of Revenue Collections (BIR Form No. 12.09). Make the necessary adjustment/s, in case of discrepancies, and submit the amended report thereon to the RAD not later than five (5) days after the monthly 12.09 report was generated. B. Regional Finance Division shall: 1. Receive the weekly Consolidated SRCD and the List of Selected AGDBs per RCO/SCO/CO from the concerned RDOs; 2. Validate the accuracy of the report and certify the correctness of the collections/deposits reflected on the Weekly Consolidated SRCD against the RORs/eRORs issued by the RCOs/SCOs/COs and the AGDB-validated deposit slips. Coordinate with the concerned RDOs, in case of discrepancy/ies; 3. Reconcile and validate the reported RCO collection figures with the concerned local BTr Office (Regional/Provincial) using the List of Deposited and Undeposited Collections from the Web-based MRCOS and the Treasury Statements. Coordinate with the concerned RDO/BTr Office, in case of discrepancy/ies; 4. Prepare and certify the Regional Weekly Consolidated SRCD (Annex "C") and transmit the same to the RCD, in hard and soft copies, copy furnished the RAD and CPMD within three (3) days from receipt thereof; AaITCH 5. Receive from the RAD the Monthly Reconciliation Report on the deposited collections made thru AGDBs by the RCOs for validation. Prepare the necessary adjustments, if any, and submit the amended Monthly Consolidated Regional SRDC to the RAD and CPMD; 6. Determine the accountability of each and every RCOs/SCOs/COs through close monitoring of any unreported and unremitted collection and by conducting regular surprise spot audits of the records of the collection officers; and 7. Prepare and submit to the CPMD, copy furnished the concerned Regional Director and RCD, the List of RCOs/SCOs/COs with unreported/unremitted/delayed remittances of collections within ten (10) days after the conduct of the regular spot audit. C. Regional Collection Division: 1. Receive the Weekly Consolidated SRCD, the List of Selected AGDBs per RCO/SCO/CO from the RDOs, and the Weekly Consolidated Regional SRCD from the RFD; 2. Reconcile the reports and determine if the collection and deposit data are posted in the BIR Integrated Tax System-Collection Bank Reconciliation System (ITS-CBRS). In case the data are not encoded in the ITS-CBRS or there are some discrepancies in the encoded data, coordinate with the concerned RDO/RFD/RDC for the immediate resolution thereof; aSIHcT 3. Submit the validated and certified Regional Weekly Consolidated SRCD to the RAD and CPMD within three (3) days from receipt of report from RFD; and 4. Prepare and submit to the RAD and CPMD a Monthly Consolidated SRCD (Annex "D"), based on the Monthly Consolidated Report of Collection and Deposit (MCRCD) from the Web-based MRCOS and the weekly SRCD submitted by the RDO, not later than the fifteenth (15th) day of the following month. D. Revenue Accounting Division shall: 1. Receive the Weekly Consolidated SRCD from the RDOs and the Weekly and Monthly Consolidated Regional SRCD from the RFDs and RCDs; 2. Reconcile the weekly deposited collections based on the submitted Consolidated SRCDs by the RDOs/RFDs/RCDs against the BTr-JEVs received weekly from the BTr-NCAD; 3. Inform the BTr-NCAD of the discrepancies noted on the deposited collections made thru the RCOs, if any, and submit supporting documents thereon to the said office for purposes of crediting the collections to the account of the BIR; 4. Prepare a Monthly Reconciliation Report on the deposited collections made thru AGDBs by the RCOs and forward the same to the Chief, RFD for validation/adjustments, copy furnished the CPMD; and DCSETa 5. Reconcile the MCRCD data from the web-based MRCOS with the collection report submitted by the RDO/RCD/RFD, as well as with the copy of the BTr-JEVs. Notify the concerned offices on any noted discrepancies, copy furnished the CPMD. E. Collection Performance Monitoring Division shall: 1. Receive the Weekly Consolidated SRCD from the RDOs and the Regional Weekly and Monthly Consolidated SRCD as well as the Regular Report on the List of RCOs/SCOs/COs with unreported/unremitted/delayed remittances of collections from the RFDs and RCDs, and all the applicable reports from the RAD; 2. Monitor the performance of the RCOs by test-checking the information contained in the Weekly and Monthly SRCD relative to its adherence to existing revenue regulations, policies, procedures and standards in the acceptance of tax payments as well as remittance of collections, and taking into consideration the discrepancies noted by the RAD under item nos. D.4 and D.5 of this Order; and 3. Evaluate the performance of the RCO/SCO/CO and the RDO/RR based on the reports received from all the concerned offices. The results of the evaluation shall be used as inputs in measuring their respective performance under the prescribed Key Performance Indicators (KPIs), recommending enhancements in the existing policies and guidelines in reporting and reconciling the collections thru RCOs/SCOs/COs, as well as in the imposition of the appropriate sanctions against any errant Bureau officials or personnel, in coordination with the Internal Affairs Service. IaAEHD V. Repealing Clause All existing revenue issuances or portions thereof which are inconsistent herewith are hereby repealed, modified or amended accordingly. VI. Effectivity This Order shall take effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Statement of Report of Collections and Deposits ANNEX B Statement of Report of Collections and Deposits ANNEX C Statement of Report of Collections and Deposits ANNEX D Consolidated Statement of Report of Collections and Deposits