BIR 2010 Regional Divisions' Key Performance Indicators, Accomplishment Reporting and Office Performance Evaluation

June 29, 2010 REVENUE MEMORANDUM ORDER NO. 061-10 TO : All Deputy Commissioners, Assistant Commissioners, Regional Directors, Regional Division Chiefs, and Others Concerned SUBJECT : BIR 2010 Regional Divisions' Key Performance Indicators, Accomplishment Reporting and Office Performance Evaluation I. Objectives The ability to monitor and evaluate performance is a key element in improving productivity and enhancing the BIR's revenue performance. In this regard, this Order is being issued to: 1. Prescribe and provide details of the BIR's CY 2010 Regional Divisions' Performance Measures, by indicating the Priority Programs, Key Performance Indicators (KPIs), Weights, and Formulae to be used in implementing and monitoring each Priority Program; 2. Prescribe the policies and procedures for monitoring and evaluating the performance of the Regional Divisions vis-a-vis their respective Office Performance Measures; and, 3. Attain the goals and objectives set forth in the BIR Initiatives and Tax Reform Agenda under the Performance Governance System (PGS). II. Policies and Guidelines 1. The KPIs shall serve as a basis for monitoring and evaluating the performance of the incumbent Regional Division Chiefs, beginning with the period covering July-December 2010. 2. Each KPI shall have an overall total score of 100%. The National Office shall prescribe the KPIs with a total weight of 60%. Programs and tasks that fall under the category "Other Priority Projects/Activities" in the 2010 Strategy Map which have a 40% weight shall be rated by the Regional Directors concerned. caADIC 3. Each Regional Division shall determine at least four (4) projects/activities that shall constitute its "Other Priority Projects/Activities" in the 2010 Strategy Map, subject to the approval of the Regional Director. These projects/activities shall then be incorporated with the KPIs provided in Annex A of this Order. 4. The Performance Contract (please refer to Annex B of this Order) of each Regional Division, which shall provide details of the Division's Priority Programs/Projects, KPIs, Program/Project Weights, KPI Weight and Targets, shall be signed by the Regional Division Chief, and noted by the Regional Director concerned. The Contract shall then be submitted to the Assistant Commissioner (ACIR), Policy and Planning Service not later than June 30, 2010. 5. In the event of any request for clarification or definition/explanation of the KPIs prescribed by the National Office, the ACIR concerned who is the Measure Owner of the KPI in question, shall issue a Memorandum to address such clarification, explanation, subject to the approval of the Commissioner. 5.1. For purposes of this Order, the Measure Owner of the "On Time: BIR Time" (OT:BT) Program shall be the concerned ACIR to whom the Regional Divisions shall submit their identified priority reports. 6. The ACIRs and Regional Directors shall perform periodic verification and documentation of the progress of the Regional Divisions' Performance Contracts. Any issues/outstanding accomplishments shall be elevated by the Regional Director to the ACIR concerned. 7. An Annual Regional Divisions Performance Evaluation shall be conducted, to determine the rating of a Regional Division, taking into account its targets vis-a-vis actual performance. 7.1. A straightforward method of computation shall be employed in arriving at the rating of a Regional Division's performance, using the following formula: Rating = Actual Accomplishment x Project/KPI Weight 7.2. The Overall Rating of a Regional Division shall be the sum of all points earned per Priority Project/KPI. III. Procedures The following guidelines and procedures shall be observed in the preparation and submission of the required accomplishment reports, and the conduct of the office performance evaluation, for the CY 2010 Priority Programs and KPIs for the Regional Divisions: IHSTDE 1. Accomplishment Reports shall be prepared and submitted in accordance with the following schedule, by the concerned official: Office/ Report Person Submitted to Due Date Responsible Monthly Accomplishment Reports Regional Divisions' Regional Division Regional Director On or before the 7th Accomplishment Report on Chief concerned day after the end of KPIs (see Annex C1) each month Consolidated Regional Regional Director Assistant On or before the 12th Divisions' Accomplishment Commissioner day after the end of Report on KPIs concerned each month (see Annex C2) Quarterly Accomplishment Reports Regional Divisions' Quarterly Regional Division Regional Director On or before the 10th Accomplishment Report on Chief concerned day of the month KPIs (see Annex D1) following each Quarter Consolidated Quarterly Regional Director Assistant On or before the 15th Accomplishment Report Commissioner day of the month of all Regional Divisions concerned following each (see Annex D2) Quarter Consolidated Quarterly Assistant Deputy On or before the 20th Accomplishment Report of Commissioner Commissioner day of the month all Regional Divisions, by concerned concerned following each Functions (see Annex D3) Quarter Semestral Accomplishment Reports Consolidated Semestral Regional Director Assistant On or before the 18th Accomplishment Report Commissioner day of the month of all Regional Divisions concerned following each (see Annex E) Semester Progress Report of the Assistant The Commissioner On or before the 20th Regional Divisions Commissioner and the Deputy day of the month (see Annex F) concerned Commissioner following each concerned Semester Annual Office Performance Evaluation Annual Regional Office Regional Director Assistant On or before the 20th Performance Evaluation of Commissioner day of the month after the Regional Divisions, per concerned the end of the year "Other Priority Projects/ Activities" in the 2010 Strategy Map [40%] (see Annex G1) Annual Office Performance Evaluation Consolidated Annual Regional Assistant ACIR, Policy and On or before the 23rd Office Performance Evaluation Commissioner Planning Service day of the month after of the Regional Divisions concerned the end of the year [National and Regional Offices - prescribed KPIs] (see Annex G2) Ranking of the Regional ACIR, Policy and The Commissioner On or before the 26th Divisions, by function Planning Service, day of the month after through the the end of the year Planning Division 2. The Planning Officer of each Regional Office shall be responsible for the consolidation and submission of all documents prepared and submitted by the Regional Division Chiefs and Regional Directors. They shall likewise be responsible for the monitoring and follow-up with the Regional Division Chiefs, Assistant Regional Directors and Regional Directors regarding the consolidation and submission of all Accomplishment Reports (on a monthly, quarterly and semestral basis), and the Annual Performance Evaluation. 3. The Planning Division shall be furnished copies of the following reports prepared and submitted in accordance with Section III (1) of this Order: Consolidated Quarterly Accomplishment Report of all Regional Divisions, by Functions (to be prepared by Assistant Commissioner) Progress Report of the Regional Divisions (to be prepared by Assistant Commissioner) Such reports shall be used to validate the Annual Office Performance Evaluation of the Regional Divisions relative to: (i) KPIs prescribed by the National Office (60%); and (ii) KPIs for "Other Priority Projects/Activities" in the CY 2010 Strategy Map prescribed by the Regional Director (40%). 4. The reports shall be used as bases/inputs in the formulation of the CY 2011 Strategy Map and Priority Programs that shall be presented to MANCOM for review and approval. 5. The ACIR, Policy and Planning Service, shall prepare the following documents, for submission to the Commissioner on or before the 31st of January of the following year: A compilation of the Office Performance Evaluation Reports, per Region, and per Regional Division; and, An Analysis Report on the results of the accomplishment of KPIs. IV. Transitory Provisions The implementation of the Regional Divisions' KPIs, and the Accomplishment Reports to be prepared relative thereto, shall cover the period beginning in the month of July 2010. V. Repealing Clause All revenue issuances or portions thereof that are inconsistent herewith are hereby repealed or amended accordingly. However, regular Reports required by other Revenue Services which are being prepared and submitted by the Regional Divisions, other than the Reports required in this RMO, shall continue. VI. Effectivity This Order takes effect immediately. (SGD.) JOEL L. TAN-TORRES Commissioner of Internal Revenue ANNEX A PERFORMANCE MANAGEMENT SYSTEM Performance Measures for Regional Divisions Programs KPIs KPI Weight Formula Measure Owner Collection Division 1. Monitoring of Delinquent 1.1. Accounts Receivable 10 Total no. of accurate ACIR, Accounts Reports (AR) Compliance reports submitted Collection Service Total no. of required reports to be submitted 2. Processing of Abatement Abatement processing 10 Total no. of abatement ACIR, Cases efficiency cases evaluated and Collection Service referred to NO for final review and approval of the CIR Total no. of abatement cases handled 3. Processing of Compromise Processing 10 Total no. of Compromise ACIR, Compromise Cases Efficiency Cases evaluated and Collection Service referred to NO for final review and approval of the CIR No. of cases for issuance of WDL 4. Spot-checking of RO Performance Audit 20 Actual no. of spot- ACIR, handling Delinquent Efficiency checking conducted Collection Service Accounts Total no. of RO handling DA audit x 2 (Frequency of audit) 5. "On Time BIR Time" Timeliness in submission of 5 Overall Score x KPI weight Office of the Project requirements/reports of Commissioner/ identified Priority Projects ACIR, Policy and and activities to concerned Planning Service NO offices (Corporate Communications Division) 6. Conduct of Meetings and Number of Minutes of 5 Overall Score x KPI weight Office of the Conferences Meeting submitted/on file Commissioner/ ACIR, Policy and Planning Service (Management Division) 7. Other Priority Projects/ 40 Overall Score x KPI weight Activities in 2010 strategy Map Assessment Division 1. Efficiency in the Review of 1.1. Review of collected 25 No. of collected ACIR, Dockets as to quantity cases cases reviewed Assessment Service No. of collected cases handled for review 1.2. Review of cases for 25 No. of reviewed cases ACIR, assessment for assessment Assessment Service No. of handled cases recommended for assessment 2. "On Time BIR Time" Timeliness in submission of 5 No. of reports/documents Office of the Project requirements/reports of received by the NO on or Commissioner/ identified Priority Projects before the due date ACIR, Policy and and activities to concerned Planning Service NO offices No. of reports/documents (Corporate required by the NO Communications Division) 3. Conduct of Meetings and Number of Minutes of 5 Overall Score x KPI weight Office of the Conferences Meeting submitted/on file Commissioner/ ACIR, Policy and Planning Service (Management Division) 4. Other Priority Projects/ 40 Overall Score x KPI weight Activities in 2010 strategy Map Legal Division 1. Process Improvement 1.1. Preparation of Rulings 10 No. of rulings/opinions ACIR, Legal Service prepared/processed/ rendered No. of requests/applications received during the month 1.2. Issuance of SDT 5 No. of SDT issued ACIR, Legal Service during the month Total no. of cases for SDT issuance received during the month 1.3. Number of protested 10 No. of protested cases ACIR, Legal Service cases acted upon during the month Total no. of protested cases received during the month 2. RATE Program Number of RATE cases filed 15 No. of cases filed with DOJ ACIR, Legal Service month 3. Delinquent Account Number of delinquent 10 No. of cases filed with DOJ ACIR, Legal Service Management accounts cases filed No. of delinquent accounts referred 4. "On Time BIR Time" Timeliness in submission 5 Overall Score x KPI weight Office of the Project of requirements/reports of Commissioner/ identified Priority Projects ACIR, Policy and and activities to concerned Planning Service NO offices (Corporate Communications Division) 5. Conduct of Meetings Number of Minutes of 5 Overall Score x KPI weight Office of the and Conferences Meeting submitted/on file Commissioner/ ACIR, Policy and Planning Service (Management Division) 6. Other Priority Projects/ 40 Overall Score x KPI weight Activities in 2010 Strategy Map Special Investigation Division 1. RATE Program Number of RATE cases 20 No. of RATE cases filed ACIR, Legal and developed with DOJ during the month Inspection Group (Litigation Division) 1 month 2. Process Improvement 2.1. Number of 10 No. of denunciations acted ACIR, Legal Service denunciations upon during the month acted upon No. of denunciations received during the month 2.2. Resolution of 10 No. of administrative ACIR, Legal Service administrative cases cases acted upon during the month Total no. of administrative cases during the month 2.3. Number of LA cases 10 No. of LA cases acted upon ACIR, Legal Service acted upon No. of LA cases received 3. "On Time BIR Time" Timeliness in submission of 5 Overall Score x KPI weight Office of the Project requirements/reports of Commissioner/ identified Priority Projects ACIR, Policy and and activities to concerned Planning Service NO offices (Corporate Communications Division) 4. Conduct of Meetings Number of Minutes of 5 Overall Score x KPI weight Office of the and Conferences Meeting submitted/on file Commissioner/ ACIR, Policy and Planning Service (Management Division) 5. Other Priority Projects/ 40 Overall Score x KPI weight Activities in 2010 strategy Map Finance Division 1. Audit Observation Number of audit observation 25 No. of audit ACIR, Finance Service acted upon observation acted upon No. of audit observation 2. Expedite Processing and Percent of certified 25 No. of vouchers ACIR, Finance Service Payment of Money Claims disbursement vouchers approved acted upon No. of vouchers filed 3. On Time BIR Time Timeliness in submission 5 Overall Score x KPI weight Office of the Project of requirements/reports of Commissioner/ identified Priority Projects ACIR, Policy and and activities to concerned Planning Service NO offices (Corporate Communications Division) 4. Cunduct of Meetings and Number of Minutes of 5 Overall Score x KPI weight Office of the Conferences Meeting submitted/on file Commissioner/ ACIR, Policy and Planning Service (Management Division) 5. Other Priority Projects/ 40 Overall Score x KPI Weight Activities in 2010 strategy Map Administrative Division 1. Records Management Percentage of documents 15 No. of documents filed ACIR, Administrative received/filed/managed Service No. of documents received 2. Expedite Processing and Percent of checks prepared 20 No. of checks prepared ACIR, Administrative Payment of Money Claims and signed for approved DVs and signed Service received No. of approved DVs received 3. Provide adequate supply Percentage of accountable 15 No. of accountable ACIR, Administrative of Accountable Forms forms issued forms issued Service No. of accountable forms requisitioned 4. "On Time BIR Time" Timeliness in submission 5 Overall Score x KPI weight Office of the Project of requirements/reports of Commissioner/ identified Priority Projects ACIR, Policy and and activities to concerned Planning Service NO offices (Corporate Communications Division) 5. Conduct of Meetings Number of Minutes of 5 Overall Score x KPI weight Office of the and Conferences Meeting submitted/on file Commissioner/ ACIR, Policy and Planning Service (Management Division) 6. Other Priority Projects/ 40 Overall Score x KPI weight Activities in 2010 strategy Map ANNEX B Performance Contract for CY 2010 __________ (Regional Division) __________ Revenue Region No. _____ Performance Period: May 2010 - December 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. AIaHES _________________________ (Signature over Printed Name) (Regional Division Chief) Noted by: ________________________ (Signature over Printed Name) (Regional Director) ANNEX C1 Accomplishment Report for the _________ (Month) _________, 2010 __________ (Regional Division) __________ Revenue Region No. _____ Accomplishment for the (Month) Program/Project Key Performance KPI Weight Target* Numerator Denominator % Accomplishment Remarks Indicator (KPI) (a) (b) (a/b) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * Target for the month I attest to the accuracy of the information contained herein. _________________________ (Signature over Printed Name) (Regional Division Chief) ANNEX C2 Consolidated Accomplishment Report for the ________ (Month) ________, 2010 Revenue Region No. _____ Accomplishment for the (Month) Regional Program/Project Key Performance KPI Weight Target* Numerator Denominator % Accomplishment Remarks Office Indicator (KPI) (a) (b) (a/b) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * Target for the month I attest to the accuracy of the information contained herein. CaSAcH _________________________ (Signature over Printed Name) (Regional Director) ANNEX D1 Accomplishment Report for the _________ (Quarterly) _________, 2010 __________ (Regional Division) __________ Revenue Region No. _____ Accomplishment for the (Quarter) Program/Project Key Performance KPI Weight Target* Numerator Denominator % Accomplishment Remarks Indicator (KPI) (a) (b) (a/b) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * Target for the quarter I attest to the accuracy of the information contained herein. _________________________ (Signature over Printed Name) (Regional Division Chief) ANNEX D2 Consolidated Accomplishment Report for the ________ (Quarter) ________, 2010 Revenue Region No. _____ Accomplishment for the (Month) Regional Program/Project Key Performance KPI Weight Target* Numerator Denominator % Accomplishment Remarks Office Indicator (KPI) (a) (b) (a/b) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * Target for the quarter I attest to the accuracy of the information contained herein. HScaCT _________________________ (Signature over Printed Name) (Regional Director) ANNEX D3 Consolidated Accomplishment Report for the ________ (Quarter) ________, 2010 For __________ (Regional) __________ Division Accomplishment for the (Month) Revenue Program/Project Key Performance KPI Weight Target* Numerator Denominator % Accomplishment Remarks Region Indicator (KPI) (a) (b) (a/b) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * Target for the quarter I attest to the accuracy of the information contained herein. _________________________ (Signature over Printed Name) (Assistant Commissioner) (Revenue Service) ANNEX E Consolidated Accomplishment Report for the ________ (Semester) ________, 2010 Revenue Region No. _____ Accomplishment for the (Month) Regional Program/Project Key Performance KPI Weight Target* Numerator Denominator % Accomplishment Remarks Office Indicator (KPI) (a) (b) (a/b) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * Target for the semester I attest to the accuracy of the information contained herein. CDAcIT _________________________ (Signature over Printed Name) (Regional Director) ANNEX F Progress Report for the _________ (Semester) ________, 2010 Regional Division: ___________ Program/Project Key Performance KPI Weight General Observation Indicator (KPI) per KPI* I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%) * May include: 1) Status of actual accomplishment vs. target; 2) Positive outcome 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) (Assistant Commissioner) (Revenue Service) ANNEX G1 Annual Office Performance Evaluation for CY 2010 Revenue Region No. _____ Accomplishment for CY 2010 Regional Programs/Projects Key Performance KPI Weight Numerator Denominator Rating KPI Weight Score Division(s) (Other Priority Indicators (KPIs) (a) (b) (c = a/b) (d) (c x d) Projects/Activities) Overall Score I attest to the accuracy of the information contained herein. HcaDTE _________________________ (Signature over Printed Name) (Regional Director) _________________________ (Signature over Printed Name) (Asst. Regional Director) ANNEX G2 Consolidated Annual Office Performance Evaluation for CY 2010 For ______ (Regional Division) _____ Accomplishment for CY 2010 Revenue Programs/Projects Key Performance KPI Weight Numerator Denominator Rating KPI Weight Score Region Indicators (KPIs) (a) (b) (c = a/b) (d) (c x d) I. NO prescribed Programs/Projects (60%) II. Regional prescribed Other Priority Projects (40%)* Overall Score * Note: Score for II. Other Priority Projects/Activities shall be submitted by Regional Director, for consolidation of the Assistant Commissioner to their Score for I. NO prescribed programs. I attest to the accuracy of the information contained herein. _________________________ (Signature over Printed Name) (Assistant Commissioner) (Revenue Service)