Prescribing the Inter-Agency Task Force Memorandum Circular (MC) Nos. 2013-01 and 2013-01-A re: Guidelines on the Grant of the Performance-Based Incentives for FY 2013 under Executive Order No. 80

November 6, 2013 REVENUE MEMORANDUM ORDER NO. 031-13 TO : All Revenue Officials Concerned SUBJECT : Prescribing the Inter-Agency Task Force Memorandum Circular (MC) Nos. 2013-01 and 2013-01-A re: Guidelines on the Grant of the Performance-Based Incentives for FY 2013 under Executive Order No. 80 I. Background President Benigno S. Aquino III has issued Executive Order No. 80 dated July 20, 2012, directing the adoption of the Performance-Based Incentive System (PBIS) for Government Employees. The PBIS consists of the P5,000 across-the-board in the form of the existing Productivity Enhancement Incentive (PEI) and a top-up bonus known as the Performance-Based Bonus (PBB). This PBB shall be given to a government employee in accordance with his/her contribution to the accomplishment of the Department/Agency's overall targets and commitments. The implementation of the PBB started in CY 2012. II. Objective This Order is issued to prescribe the Policies, Guidelines, and Procedures in the implementation of the Performance-Based Incentive System and the criteria and conditions for the grant of PBB in FY 2013. III. Policies and Guidelines 1.All officials and employees of Departments/Agencies, State Universities and Colleges (SUCs), Government Owned and Controlled Corporations (GOCCs) holding regular plantilla positions, and contractual and casual personnel having an employer-employee relationship with the said agencies, and have rendered at least nine (9) months of service for the year 2013. cCaATD 2.The PBB is characterized by a two-step system of ranking the offices under a Department and the employees within the offices according to their performance as measured by verifiable and credible indicators of performance based on the pillars of the Results-Based Performance Management System (RBPMS): 2.1Department's/Agency's MFO and Performance Targets as specified in its Organizational Performance Indicators Framework (OPIF) and consistent with the targets reflected in the 2013 Approved Budget; 2.2Department's/Agency's commitments to the President that are supportive of the priorities under Executive Order No. 43; and 2.3Good Governance conditions based on the performance drivers by the Administrative Order (AO) 25 Inter-Agency Task Force. 3.The Department/Agency/Unit shall be eligible for the Performance-Based Bonus, provided that the following criteria shall be satisfied: 3.1Achieve at least 90% of each one of the performance targets for the delivery of MFOs, Support to Operations (STO), and General Administration and Support Services (GASS); 3.2Achieve at least 90% of each one of the priority program/project targets under the five (5) Key Result Areas (KRAs) of Executive Order No. 43; aAEHCI 3.3Satisfy 100% of the Good Governance conditions set by the Inter-Agency Task Force for CY 2013; and 3.4Ranking of performance of bureaus/delivery units and the personnel within the bureaus/delivery units. 4.For FY 2013, inability to meet any of the targets in item no. 2 of this Section, will render departments/agencies ineligible for the PBB. Inconsistency and inaccuracy of the compliance reports/certification made by the department/agency may also be considered a ground for disqualification to the PBB, upon proper determination and due process. 5.The qualified agencies, bureaus, offices or delivery units shall be ranked as follows: Ranking Performance Category Top 10% Best Bureau/Office/Delivery Unit Next 25% Better Bureau/Office/Delivery Unit Next 65% Good Bureau/Office/Delivery Unit 6.In determining eligibility of personnel for the PBB, the following shall be observed: 6.1Employees belonging to the First and Second Levels should receive a rating of at least "Satisfactory" under the existing Performance Evaluation System; 6.2Officials belonging to the Third Level should receive a rating of at least "Very Satisfactory" under the Career Executive Service Performance Evaluation System (CESPES). Payment of the PBB to Third Level Officials shall be contingent on the results of CESPES; HIDCTA 6.3The contractual and casual personnel who may be entitled to the PBB shall be those compensation * are charged to the lump sum appropriation under Personnel Services; or those occupying positions in the DBM-approved contractual staffing pattern of the agencies concerned. They may be included in the ranking along with the regular personnel; 6.4Personnel on detail to another government agency for six (6) months or more as of November 30, 2013 shall be included in the ranking of employees in the recipient agency that rated his/her performance; 6.5Personnel on scholarship may be included in the ranking, provided they qualify based on the performance criteria established by the Performance Management Group of the Department/Agency and approved by the Department Secretary/Head of Agency; and 6.6Personnel found guilty of administrative and/or criminal cases filed against them and meted penalty in FY 2013 shall not be entitled to the FY 2013 PBB. If the penalty meted out is a reprimand, such penalty shall not cause the disqualification to the PBB. 7.Officials and employees of bureau, offices or delivery units that qualified for the PBB shall be forced ranked, as follows: HAICTD For the best and better bureaus: Ranking Individual Performance Category Top 15% Best Performer Next 30% Better Performer Next 55% Good Performer For the good bureaus: Ranking Individual Performance Category Top 10% Best Performer Next 25% Better Performer Next 65% Good Performer IV. Procedures 1.The BIR shall prepare the following matrices using the Forms prescribed in the Inter-Agency Task Force Memorandum Circular No. 2013-1 dated August 1, 2013, signed by DBM Secretary Florencio B. Abad: 1.1Form A Cascading of the Department/Agency Performance Targets 1.2Form A-1 Details of Bureau/Office Performance Indicators and Targets 1.3Form B Department Targets on Key Programs and Projects Targets These Forms shall be submitted to the Department of Finance for their consolidation with all the Agencies under their jurisdiction. 2.The Offices concerned shall prepare and submit annual accomplishment report, depending on the cut-off dates prescribed, relative to the following performance indicators: cHaDIA Performance Indicators Person Submitted Date of Submission (PIs) Responsible To Cut-off Dates of Reports on PIs 11/30/13 12/31/13 3/31/14 A. Major Final Output (MFO) 1. Collection Collection Report Revenue District Regional December January 3, April 3, 2014 (Actual Collection vs. Officers (RDOs) Director (RD) 3, 2013 2014 Goal) LTDO ACIR, LTS LTS Divisions with collection performance Consolidated RDs DCIR, December January 5, April 5, 2014 Regional/LTS ACIR, LTS Operations 5, 2013 2014 Collection Report Group BIR Collection DCIR, CIR, copy December January 7, April 7, 2014 Performance for CY Operations furnished 7, 2013 2014 2013 Group through ACIR, ACIR, Collection Planning and Service Management Service (PMS) Consolidated Chief, Planning CIR, thru December January 9, April 9, 2014 accomplishments on and channels 9, 2013 2014 Form A and Form B Programming DOF Secretary December January April 10, Division (PPD) 10, 2013 10, 2014 2014 2. Collection Growth Collection Report RDOs RD December January 3, April 3, 2014 (2013 Actual LTDOs and ACIR, LTS 3, 2013 2014 Collection vs. 2012 Chief, LTS Actual Collection) Divisions with collection performance Consolidated Regional DCIR, December January 5, April 5, 2014 Regional/LTS Director Operations 5, 2013 2014 Collection Report ACIR, LTS Group BIR Collection DCIR CIR, copy December January 7, April 7, 2014 Performance for CY Operations furnished 7, 2013 2014 2013 Group thru ACIR ACIR, PMS Collection Service Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 April 10, Form A and Form B DOF Secretary December January 2014 10, 2013 10, 2014 B. Support to Operations Frequency of Filing of Cases with DOJ Report on RATE cases RATE Task Force DCIR, Legal December January 3, April 3, 2014 filed with DOJ Group 3, 2013 2014 DCIR, Legal Validated Report on Group CIR, copy December January 5, April 5, 2014 RATE cases furnished 5, 2013 2014 ACIR, PMS Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 Form A and Form B DOF Secretary December January April 10, 10, 2014 10, 2014 2014 C. General Administration and Support Services (GASS) 1. Budget Utilization Rate Consolidated Report on Chief, Budget ACIR, PMS December January 5, April 5, 2014 Budget Utilization Rate Division and 5, 2013 2014 Chief, Accounting Division Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 Form A and Form B DOF Secretary December January April 10, 10, 2013 10, 2014 2014 2. Submission of Financial Statements to the Commission on Audit (COA) Submission of Report RD/Chief, Chief, December January 5, April 5, 2014 on Financial Finance Division Accounting 5, 2013 2014 Statements Division Chief, Revenue Accounting Division Consolidated Report Chief, ACIR, PMS December January 7, April 7, 2014 on Financial Accounting 7, 2013 2014 Statements Division Chief, Revenue Accounting Division Consolidated Chief, PPD CIR, thru December January 9, April 9, 2014 accomplishments on channels 9, 2013 2014 Form A and Form B DOF Secretary December January April 10, 10, 2013 10, 2014 2014 3.Good Governance Condition 3.1In line with the required 100% compliance on good governance conditions set by the Inter-Agency Task Force (IATF) under Section 6.0 of the aforementioned MC for FY 2013, for agencies to be eligible for CY 2013 PBB, all concerned officials are hereby directed to comply with the prescribed deadlines in the preparation of reports, submission of these reports to Internal Communication Division (ICD) and posting of said reports either by the ICD or the responsible office. 3.2All "Compliance Certificates" that are already signed by the Commissioner shall be submitted to the Assistant Commissioner, Planning and Management Service, attention: Assistant Chief, Planning and Programming Division, not later than November 20, 2013 . TaDAHE The cut-off date for the transactions covered in the Certifications on Transparency Seal, PHILGeps Posting, and Liquidation of Cash Advances is November 15, 2013 . 3.3The Planning and Programming Division shall collate all the Certifications and prepare the transmittal letter for the DOF Secretary for submission to DOF not later than November 30, 2013 . V. Repealing Clause All revenue issuances and/or portions thereof that are inconsistent herewith are hereby repealed, revoked, amended or modified accordingly. VI. Effectivity This Order shall take effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue