Decentralized System of Issuance of Clearance

February 20, 2001 REVENUE MEMORANDUM ORDER NO. 11-01 TO : The Assistant Commissioner, Collection Service, All Regional Directors, Chief, Revenue Accounting Division, Chief, Finance Divisions of Regional Offices, Accountable Officers (AOs) and All Others Concerned SUBJECT : Decentralized System of Issuance of Clearance I. OBJECTIVES 1. To provide the proper procedures for the operation of a decentralized issuance of clearance in the Regional Offices: 2. To facilitate the proper turn-over of documents, cashbooks, subsidiary ledgers and other records of AOs (1961 to 1989) from the Revenue Accounting Division (RAD) of National office to the Finance Division of 19 Regional Offices; 3. To facilitate the issuance of clearance to AOs from cash, documentary stamps, science stamps, strip stamps and other accountable forms with money value accountabilities (1961 and onward) within the Regional Offices who have jurisdiction over them; and 4. To minimize the expenditures of AOs on traveling from their residence and/or place of assignment regional office to the National Office. II. COVERAGE 1. This RMO shall cover cash collections, documentary stamps, science stamps, strip stamps and other accountable forms with money value accountabilities (1961-1989) of AOs. 2. All Regional Offices shall fall under the coverage of this system. III. EXEMPTIONS Documentary stamps, science stamps, strip stamps and other accountabilities of the Chief, Accountable Forms Division are not covered by this Order. They shall continue to be accounted for and cleared with the RAD and the Accounting Division in the National Office. IV. POLICIES 1. Accountable Officers (AOs) are required to have an early/yearly reconciliation of his Subsidiary Ledger (SL) balances with the Finance Division of Regional Offices (1961 and onward). 2. AOs shall submit the needed documents/books to the Finance Division of ROs concerned to facilitate the issuance of clearance. 3. Audited cash book shall be transmitted to the Finance Division of ROs concerned upon change of assignment. 4. The initial signatory to the clearance is the Head of Office of the clearing AOs/employees. 5. The Chief, Finance Division of ROs concerned and the Chief, Revenue Accounting Division shall be among the signatories of all clearances whether it be on the following: a. Automatic/Optional Retirement b. Resignation c. Death d. Transfer to another Government Agency/other BIR Unit by Travel Order/RSO e. Maternity Leave f. Vacation Leave of 30 calendar days or more V. GUIDELINES AND PROCEDURES A. The Personnel Division shall: 1. Notify accountable officers/employees due to retire six (6) months and three (3) months respectively before the date of their automatic retirement; and 2. Furnish copy/ies of notice of retirement, death, transfer, resignation, maternity leave or vacation leave of more than 30 days the Chief, Revenue Accounting Division and the Chief, Finance Division of the Regional Offices. B. The Revenue Accounting Division (RAD) shall: AaEDcS 1. Prepare an inventory of all Subsidiary Ledgers (SLs), documents, cash books and other records of AOs (1961-1989) by Regional Offices. 2. Turn-over said SLs, cashbooks, documents and other records to the Chief, Finance Division through inventory listings duly signed by the Chief, RAD and the Chief Finance Division of Regional Offices concerned. C. The General Services Division shall: Facilitate the transmittal of 1961-1989 SLs, cashbooks, documents and other records of AOs from the RAD to the concerned Finance Division of the Regional Offices, D. The Finance Division shall: 1. Upon receipt of the copy of the notice, advise the retiring AO or his beneficiaries (in case he/she is already deed) by letter on all the requirements, documents, cashbooks, etc. for clearance with said Division; 2. Workback/reconcile AOs' SL balances (1961-1989) against available records on file/documents submitted by AO: 3. Notify the AOs or his beneficiaries to submit the actual documents needed, once the reconciling items are identified. 4. Issue a Temporary Clearance to facilitate the processing of their retirement gratuity, after ensuring that the money value of their Terminal Leave Benefit (TLB) as requested from the Personnel Division is sufficient to cover their SL balances. 5. Issue a final clearance if: There is no outstanding SL balances; or The AOs is agreeable to the amount of outstanding SL balances to be deducted from his Terminal leave Benefits (TLB). 6. Advise the AO to write a letter requesting COA through the Finance Division the authority to write-off his accountabilities in the BIR's books, if the AO does not agree with the amount to be deducted from his TLB, 7. Adjust the AOs' accountabilities in the BIR'S books and/or deduct from his TLB as a notation on his final clearance said amount based on COA decision. VI. REPEALING CLAUSE: This RMO supersedes all other existing issuances or portion thereof which are inconsistent with this order. VII. EFFECTIVITY: This order takes effect immediately. (SGD.) RENE G. BAEZ Commissioner of Internal Revenue