BIR 2010 Office Key Performance Indicators (KPIs) for the Revenue Regions and Revenue District Offices

March 26, 2010 REVENUE MEMORANDUM ORDER NO. 037-10 TO : All Deputy Commissioners (DCIRs), Assistant Commissioners (ACIRs), Regional Directors, Revenue District Officers and Others Concerned SUBJECT : BIR 2010 Office Key Performance Indicators (KPIs) for the Revenue Regions and Revenue District Offices I. Objectives This Order is issued to: 1. Prescribe and provide details of the BIR's CY 2010 Revenue Region (RR) and Revenue District Office (RDO) Performance Measures by indicating the Priority Programs, Key Performance Indicators, Program Weights, KPI Weights, Targets, as well as the Office(s) responsible to implement and monitor each Priority Program; (Refer to Annex A) cAHIaE 2. Prescribe the policies and procedures for monitoring and evaluating the performance of RRs and RDOs vis-a-vis the Office Performance Measures; 3. Align the Priority Programs/Activities/Projects of all Revenue Regions and Revenue District Offices to the 2010 BIR Strategy Map; and 4. Articulate the progress of BIR initiatives and tax reforms under the Performance Governance System. II. Policies 1. Key Performance Indicators (KPI) shall be used as a basis for the performance monitoring and evaluation of incumbent heads of RRs and RDOs for CY 2010. 2. A separate Revenue Memorandum Order prescribing and providing the details of the 2010 KPIs for the Large Taxpayers Service (LTS)-Regular and LTS-Excise together with all the divisions under their supervision shall be issued. 3. The two (2) LT Services shall be clustered with all the RRs for ranking purpose based on their corresponding overall KPI ratings. The LTS audit offices shall be clustered with all RDOs for similar ranking purpose. The previous cluster shall be referred to as Group "A" while the latter cluster shall be referred to as Group "B". 4. The incumbent head of office of the top five (5) under Group "A" may be assigned in the Office of their preference or retained in their present area of assignment; while those ranked in the bottom five (5) shall undergo the Senior Executive Development Program. 5. The incumbent heads of office of the top ten (10) ranking in Group "B" may be assigned in the RDO of their preference or retained in their present area of assignment; while those ranked in the bottom ten (10) shall undergo the Senior Executive Development Program. 6. The definitions and criteria used in the particular 2009 KPIs shall be adapted if the same KPI is retained as a 2010 KPI. However, if there is a need to define/redefine or clarify any 2010 KPI, the concerned ACIR who is the Measure Owner may, at a later date, issue a corresponding memorandum to effect such, with the approval of the Commissioner. EDSAac 7. A Performance Contract per Office shall be signed by the Head of Office and noted by the Commissioner/Deputy Commissioners (DCIRs) and submit to the Assistant Commissioner, Policy and Planning Service not later than April 15, 2010. (Refer to Annex B) 8. The Commissioner, DCIRs, and Assistant Commissioners (ACIRs) shall perform periodic checking and systematic documentation on the progress of each of the KPI included in the Performance Contracts of their supervised Offices. The concerned DCIR shall discuss during the regular Management Committee (MANCOM) Meeting issues/outstanding accomplishments reported on any KPI under its area of jurisdiction. 9. The ACIRs shall prepare the Annual Office Performance Evaluation of the RRs and RDOs for each of the KPIs they are monitoring. 10. There will be an additional ten (10) points bonus from the members of MANCOM: 10.1 Commissioner = 3 10.2 DCIR, Operations Group = 2 10.3 DCIR, Information Systems Croup = 1 10.4 DCIR, Legal and Inspection Group = 1 10.5 DCIR, Resource Management Group = 1 10.6 DCIR, Special Concerns Group = 1 10.7 DCIR, Tax Reform Administrative Group = 1 11. An interim performance rating may be administered depending on the exigencies of service as determined by MANCOM. III. Procedures Hereunder are the procedures in the preparation and submission of the accomplishment reports and office performance evaluation for CY 2010 Priority Programs and KPIs: DHEcCT A. Preparation and Submission of Accomplishment Reports 1. Prepare Monthly Accomplishment Report Report Office/Person Submitted To Due Date Responsible 1.1 RDO Accomplishment Revenue District Respective Regional Not later than on KPIs (using format Officer Director the 5th day in Annex C1) after end of each month 1.2 Revenue Region Regional Director Assistant Not later than Accomplishment on Commissioner the 10th day KPIs (using format monitoring the KPI after end of in Annex C1) each month 1.3 Consolidated Regional Director Assistant Not later than Accomplishment Commissioner the 10th day of all RDOs monitoring the KPI after end of (using format each month in Annex C2) 2. Prepare Consolidated Quarterly Accomplishment Report Report Office/Person Submitted To Due Date Responsible 2.1 RDO Accomplishment Revenue District Respective Regional Not later than on KPIs (using format Officer Director the 7th day of in Annex D1) the month following each quarter 2.2 Revenue Region Regional Director Assistant Not later than Accomplishment Commissioner the 10th day on KPIs (using monitoring the KPI of the month format in following Annex D1) each quarter 2.3 Consolidated Regional Director Assistant Not later than Accomplishment Commissioner the 10th day of all RDOs monitoring the KPI of the month (using format following in Annex D2) each quarter 3. Consolidated Semestral Accomplishment/Status Report Report Office/Person Submitted To Due Date Responsible 3.1 Consolidated Assistant Deputy Not later than Accomplishment Commissioners Commissioner the 12th day of all RRs and of the month RDOs (using the following format in Annex E) each semester 3.2 Status Assessment Deputy Commissioner Not later than Report of RRs and Commissioners the 12th day RDOs (using the of the month format in Annex F) following each semester B. Evaluation of Office Performance Prepare Annual Office Performance Evaluation (using the format in Annex G) aIHSEc Activity Office/Person Submitted To Due Date Responsible 1. Annual Performance Assistant Commissioner Not later than Evaluation of RRs Commissioners and Deputy the 18th day and RDOs Commissioners of the month after the end of the year 2. MANCOM additional MANCOM Commissioner Not later than bonus or minus points the 21st day of the month after the end of the year C. Documentation The Office of the Commissioner, thru the Policy and Planning Service, shall be responsible in preparing the overall final ranking of Revenue Regions and Revenue District Offices. The Planning Division must be provided with copy of all documents prepared and submitted as abovementioned. These documents shall serve as means of validation in the preparation of the Office Annual Performance Evaluation for the Revenue Regions and Revenue District Offices. Likewise, these will be used as basis/input for next year's strategy map and priority programs to be recommended to MANCOM. D. Analysis of Revenue Regions and Revenue District Offices KPIs Activity Office/Person Submitted To Due Date Responsible 1. Prepare the Final ACIR, Policy Commissioner Not later than Report of the Office and Planning the 20th day Performance Service of the month Evaluation Report after the end per KPI of the year 2. Analysis Report ACIR, Policy Commissioner Not later than on the result of and Planning the 20th day accomplishment Service of the month of KPIs after the end of the year IV. Repealing Clause All revenue issuances or portions thereof inconsistent herewith are hereby repealed or amended accordingly. SaDICE V. Effectivity This Order takes effect immediately. (SGD.) JOEL L. TAN-TORRES Commissioner of Internal Revenue ANNEX A Performance Management System Performance Measures for RRs/RDOs Measure Owner Category/Category Programs KPI KPI Formula Target Mancom Level ACIR Level Weights Weights REVENUE Collection Collection Goal 30 2010 Collection 100% of DCIR, Operations ACIR, Collection COLLECTION/50 Performance Attainment assigned Group Service 2010 Collection Goal goal Collection growth 20 2010 Collection 114% of DCIR, Operations ACIR, Collection previous Group Service 2009 Collection year's actual collection GOVERNANCE/15 Collection Growth Rate of 3 2010 Collection from 50% of DCIR, Operations ACIR, Enforcement Collection from Enforcement Activities total Group Assessment enforcement previous Service activities 2009 Collection from year's Enforcement Activities collection Oplan Number of 3 No. of actual closures CLUSTER DCIR, Operations Kandado actual closures A & B: 2 Group Targeted no. of closures Closures every quarter per RDO CLUSTER C: 1 Closure every quarter per RDO CLUSTER D: 1 closure every 4 months per RDO Stopfiler Number of 3 No. of stopfiler 1st and 2nd DCIR, Operations ACIR, Collection Program for stopfiler cases closed quarters: Group Service Taxpayer cases 70% of cases Account closed No. of cases handled handled Management (beginning plus current) 3rd quarter: Program 80% of cases (TAMP) handled Taxpayers 4th quarter: 90% of cases handled Monitoring Accounts 1 Collection from AR 10% of total DCIR, Operations ACIR, Collection of Delinquent Receivable delinquent Group Service Accounts (AR) Collection Total amount of AR accounts Effort cases for collection handled Accounts 1 No. of AR cases closed 20% of AR DCIR, Operations ACIR, Collection Receivable cases Group Service (AR) Collection No. of AR cases handled handled Efficiency Accounts 1 No. of warrants issued 100% of AR DCIR, Operations ACIR, Collection Receivable and executed case being Group Service (AR) Processing handled Efficiency No. of AR cases being subjected to handled subject to the the issuance issuance of summary of summary remedies remedies Other Priority 3 Overall Score x Projects/ KPI Weight Activities in 2010 Strategy Map CUSTOMER Tax Campaign HMP Evaluation 7 Overall Score x DCIR, Operations ACIR, TAS SERVICE/15 Activities results KPI Weight Group ("Making the Public Know") and Handang Maglingkod Program (HMP) involvement Other Priority 8 Overall Score x Projects/ KPI Weight Activities in 2010 Strategy Map TAX Encoding of No. of TAMP 2 No. of returns 100% of DCIR, ACIR, ISOS ADMINISTRATION TAMP returns returns encoded TAMP returns Information IMPROVEMENT/20 encoded encoded Systems Group No. of returns handled (current plus backlog) for TAMP TPs REG database No. of multiple 1 No. of multiple TINs 100% multiple DCIR, ACIR, ISOS clean up and TINs resolved resolve TINs resolved Information maintenance Systems No. of multiple Group TINs issued Accounts 1 No. of AR cases closed 20% of DCIR, ACIR, Collection Receivable AR cases Operations Service (AR) Collection No. of AR cases handled handled Group Efficiency Accounts 1 No. of warrants issued 100% of DCIR, ACIR, Collection Receivable and executed AR case Operations Service (AR) Processing being handled Group Efficiency No. of AR cases being subjected to handled subject to the the issuance issuance of summary of summary remedies remedies Other Priority 3 Overall Score x Projects/ KPI Weight Activities in 2010 Strategy Map CUSTOMER Tax Campaign HMP Evaluation 7 Overall Score x DCIR, Operations ACIR, TAS SERVICE/15 Activities results KPI Weight Group ("Making the Public Know") and Handang Maglingkod Program (HMP) involvement Other Priority 8 Overall Score x Projects/ KPI Weight Activities in 2010 Strategy Map TAX Encoding of No. of TAMP 2 No. of returns encoded 100% of DCIR, ACIR, ISOS ADMINISTRATION TAMP returns returns TAMP returns Information IMPROVEMENT/20 encoded No. of returns handled encoded Systems (current plus backlog) Group for TAMP TPs REG database No. of multiple 1 No. of multiple TINs 100% multiple DCIR, ACIR, ISOS clean up and TINs resolved resolve TINs resolved Information maintenance Systems No. of multiple TINs Group issued No. of 1 No. of errors resolved 100% DCIR, ACIR, ISOS Unregistered Unregistered Information Taxpayers No. of errors due to Taxpayers Systems resolved unregistered TPs resolved Group Resolution of No. of unuploaded 1 No. of uploaded 100% DCIR, ACIR, ISOS unuploaded collections transactions Unuploaded Information collections resolved collections Systems No. of unuploaded resolved Group transactions eFPS filers No. of cases 2 No. of cases validated 100% Validation DCIR, ACIR, ISOS without validated Information payments No. of cases referred Systems Group Collections from 2 Amount of collections 100% collection DCIR, ACIR, ISOS confirmed eFPS from eFPS filers from TPs Information filers without confirmed without confirmed Systems payment payment without Group payment Total collections due from eFPS filers confirmed without payment "On Time BIR Timeliness in 1 Overall Score x Office of the ACIR, Policy and Time" Project submission of KPI Weight Commissioner Planning Service requirements/ (Corporate reports of Communications identified Division) Priority Projects and activities to concerned NO offices Conduct of Number of 1 Overall Score x Office of the ACIR, Policy and Meetings and Minutes of KPI Weight Commissioner Planning Service Conferences Meeting (Management submitted/ Division) on file Updated Zonal Schedule of 2 Overall Score x Submitted DCIR, ACIR, Valuation zonal values KPI Weight approved Operations Assessment revised/ 1. Convene STVRPV Schedule Group Service updated and consolidate of Zonal recommended Schedule Values to of Zonal Values = 25% Asset Valuation 2. Review and submit Division proposed Schedule of Zonal Values for TCRPV = 25% 3. Conduct Public Hearing = 25% 4. Submit finalized and approved Schedule of Zonal Values to Asset Valuation Division = 25% Operation Increase in 1 2010 estate tax 150% of previous DCIR, ACIR, Assessment R.I.P estate taxes collection year's estate tax Operations Service (AITIED) collected over collection Group previous year 2009 estate tax collection Operation Withholding 1 Number of voters x 100% DCIR, ACIR, Collection "Iboto Mo" Taxes Due election spending rate Operations Service from Candidates for all candidates in the Group are collected RDO x 5% Other Priority 5 Overall Score x Projects/ KPI Weight Activities in 2010 Strategy Map TOTAL 100 Total KPI weights plus: MANCOM bonus points 10 Overall KPI rating =============== ANNEX B Performance Contract for CY 2010 RR/RDO No. ______ Performance Period: CY 2010 Program/Project Program/Project Key Performance KPI Weight KPI Formula Target Weight Indicator (KPI) _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ _______________ _____________ _______________ __________ ___________ _______ I hereby agree to the foregoing Programs/Projects, KPI and Targets as bases for my performance rating and evaluation at the Bureau of Internal Revenue for the above performance period. ___________________________ (Signature over Printed Name) (Regional Director/Revenue District Officer) Noted by: ______________________________ (Signature over Printed Name) (Commissioner/Deputy Commissioner) ANNEX C1 Accomplishment Report for the __________ (Month) ________, 2010 RR/RDO No. ________ Accomplishment for the (Month) Program/ Key Performance KPI Weight Target* Numerator Denominator Remarks Project Indicator (KPI) ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ ________ _______________ ___________ _______ __________ ___________ _________ * Target for the month I attest to the accuracy of the information contained herein. TADIHE ___________________________ (Signature over Printed Name) (Regional Director/Revenue District Officer) ANNEX C2 Consolidated Accomplishment Report for the _________ (Month) _________, 2010 RR No. ________ Accomplishment for the (Month) RDO No. Program/ Key Performance KPI Weight Target* Numerator Denominator Remarks Project Indicator (KPI) ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ ________ ________ _____________ __________ _____ _________ ___________ ________ * Target for the month I attest to the accuracy of the information contained herein. ___________________________ (Signature over Printed Name) (Regional Director ANNEX D1 Accomplishment Report for the ___________ (Quarterly) ________, 2010 RR/RDO No. ________ Accomplishment for the (Quarter) Program/ Key Performance KPI Weight Target* Numerator Denominator Remarks Project Indicator (KPI) ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ ________ ______________ __________ _______ _________ ____________ ________ * Target for the quarter I attest to the accuracy of the information contained herein. ___________________________ (Signature over Printed Name) (Regional Director/Revenue District Officer) ANNEX D2 Consolidated Accomplishment Report for the ________ (Quarterly) ________, 2010 RR No. ________ Accomplishment for the (Quarter) RDO No. Program/ Key Performance KPI Weight Target* Numerator Denominator Remarks Project Indicator (KPI) ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ ________ _______ ______________ _________ ______ ________ ___________ ________ * Target for the quarter I attest to the accuracy of the information contained herein. ___________________________ (Signature over Printed Name) (Regional Director ANNEX E Consolidated Accomplishment Report for the _________ (Semester) ________, 2010 (BIR-RRs/RDOs) Program: KPI: KPI WEIGHT: Accomplishment for the (Semester) RRs/RDOs Numerator Denominator Remarks ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________ ___________ ___________________ ________ ___________________________ (Signature over Printed Name) (Assistant Commissioner) ANNEX F Assessment Report for the _________ (Semester) _________, 2010 RR/RDO No. __________ Revenue Region/ Program/Project Key Performance KPI Weight General Observation Revenue District Office Indicator (KPI) Per KPI* __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ __________________ _____________ _____________ __________ _______________ * May include: 1) Status of actual accomplishment vs. target; 2) Positive out on the implementation of the Program; 3) Issues encountered, if any; etc. I attest to the accuracy of the information contained herein. __________________________ (Signature over Printed Name) (Deputy Commissioner) ANNEX G Office Performance Evaluation for CY 2010 Program: KPI: KPI WEIGHT: Accomplishment for CY 2010 Rating KPI Weight Score RRs/RDOs Numerator (a) Denominator (b) (c = a/b) (d) (c x d) __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ __________ ____________ ______________ ________ _________ ________ Overall Score I attest to the accuracy of the information contained herein. _________________________ (Signature over Printed Name) (Assistant Commissioner) Noted by: ______________________________ (Signature over Printed Name) (Commissioner/Deputy Commissioner)