Guidelines for the Transition Period after RISSI Dissolution

July 1, 1992 REVENUE MEMORANDUM ORDER NO. 31-92 SUBJECT : Guidelines for the Transition Period after RISSI Dissolution TO : All Revenue Officers and Others Concerned 1.0 PURPOSE This Revenue Memorandum Order is issued to provide guidelines, rules and regulations during the transition period following the dissolution of the Revenue Information Systems Services, Inc. (RISSI) as of June 30, 1992, pursuant to the provisions of Executive Order No. 468. 2.0 GENERAL GUIDELINES 2.1 The cut-off date to effect the transfer of balances of accounts from RISSI to the BIR shall be July 1, 1992. However, for purposes of implementing such transfer and winding up the affairs of RISSI, a transitory period from the cut-off date up to December 31, 1992 or earlier if possible, shall be allowed to effect such transfer and winding-up. 2.2 Upon dissolution of RISSI, its officers and employees shall continue to perform their respective duties and responsibilities under the BIR and receive the corresponding salaries and benefits unless in the meantime they are separated, laid off or retired from the service pursuant to existing laws, policies, rules and regulations. 2.3 Within 120 days from the dissolution of RISSI, the BIR shall submit to the Secretary of Budget and Management, thru the Department of Finance, the necessary organizational arrangement for the computer and communications network system. 2.4 Incumbents of RISSI shall have priority for appointment to the same or comparable positions in the concerned unit or units of the BIR. The same incumbents shall have the option to be laid off or to retire from the service. Those incumbents of said corporation who are not reappointed in the BIR shall be deemed separated from the service. cdt 2.5 All RISSI personnel who are separated, laid off or retired from the service shall receive the benefits they may be entitled to under existing laws, policies, rules and regulations. Pending resolution by appropriate government offices of the issue on separation benefits and other similar issues, only those who are not subsequently reappointed to regular positions in the Bureau and are therefore effectively separated from the service shall be granted the same operation benefits provided herein. 2.6 The records, equipment, facilities, choses in action, rights and other assets of RISSI shall be transferred to the BIR pending the resolution by the Office of the President for their allocation to the appropriate units of the government or their subsequent disposal in accordance with the Government Auditing Code of the Philippines (P.D. No. 1445) and other pertinent laws, rules and regulations. The appropriations and funds of said corporation, if any, shall revert to the General Fund after reserving an amount to pay the benefits of those separated, laid off or retired from the service. If the appropriations and funds of RISSI are not sufficient to pay such benefits, the required amount shall be charged against the savings of the BIR/DOF and thereafter from the unappropriated balances of the National Treasury. Its liabilities other than the separation benefits of laid off, separated or retired RISSI personnel, if any, shall be paid in accordance with the provisions of the Civil Code on the concurrence and preference of credits. 3.0 INTERIM PROVISIONS 3.1 Pending the establishment in the BIR of the organizational arrangement for the computer and communications network system, all officials and employees of RISSI shall be under the BIR. Each of them shall be extended an individual contract of employment on the basis of their salary last received in RISSI, effective July 1, 1992 to last until they are appointed to regular positions by the Bureau. 3.2 RISSI shall close its books of accounts as of the cut-off date as stated in Section 2.1 hereof. 3.3 The RISSI General Manager shall - 3.3.1 Oversee the day-to-day operations and activities of RISSI, including the transfer or movement of personnel when the exigencies of the service so require. 3.3.2 Implement the computerization program of the BIR as directed by the Commissioner. 3.3.3 Recommend to the Commissioner actions to be taken on matters pertaining to the appointment, promotion, salary adjustment, removal of, and other disciplinary measures over RISSI personnel. 3.3.4 Approve sick and vacation leaves of absence with or without pay, for a period not beyond one month. 3.3.5 Approve requisition for supplies, materials and equipment and other items needed by the defunct RISSI, in accordance with the approved supply procurement program. 3.3.6 Enter into contracts for and in behalf of the Bureau for supplies and materials and other items mentioned in Section 5.1 hereof involving an amount not exceeding P125,000 within a given month. 3.3.7 Submit to the Commissioner or his representative requests for overtime services. 3.3.8 Ensure that officials and employees of RISSI are issued clearances only after they have fully liquidated/settled their accountabilities/liabilities and/or submitted the required financial reports. 3.3.9 Require the collecting officer of RISSI to deposit immediately with the bank concerned all undeposited collections as of June 30, 1992 and submit the Report of Collections and the Monthly Report of Accountability for Accountable Forms or their equivalents. Turn over all unused accountable forms as of the cut-off date to the Chief, General Services Division or her authorized representative under proper Invoice and Receipt (Gen. Form No. 10-A). 3.3.10 Require the disbursing officer/cashier of RISSI to refund or liquidate the balance of any cash advance and submit the Report of Disbursements, Reports of Check Issued and the Monthly Report of Accountability for Accountable Forms or their equivalents. Turn over blank checks and other unused accountable forms to the Chief, General Services Division or her authorized representative as of the cut-off date under proper Invoice and Receipt (GF No. 10-A). 3.3.11 Secure bank statement from the depository bank as of the cut-off date. 3.3.12 Serve notice to depository bank for the cancellation of designation of authorities of officers signing/countersigning/ transacting business therewith. 3.3.13 Require the Chief Accountant of RISSI to - 3.3.13.1 Reconcile all subsidiary ledger balances with the general ledger control accounts. 3.3.13.2 Prepare bank reconciliation statements and effect the necessary adjustments. 3.3.13.3 Update all accounting records and effect the necessary adjusting entries for items requiring adjustments in the books of accounts. 3.3.13.4 Prepare Financial Statements and the usual adjusting and closing entries. For closing entries, close the income summary account and the expense summary account to retained earnings. cdt 3.3.13.5 Thereafter, have the financial statements verified by the RISSI auditor (COA).This shall be the basis for the final transfer of the balance of the accounts to the Bureau. 3.3.13.6 Draw a Journal Voucher (JV),supported with the financial statements, certified by him, approved by the RISSI General Manager and verified by the RISSI auditor to effect the transfer of the balances of the accounts and record the JV in the books of accounts. 3.3.13.7 Conduct an inventory of all accounting records and other documents and turn over such records and documents to the Chief, Disbursement Accounting Division (DAD) of the BIR. 3.3.14 Perform such other duties and functions as may be delegated by the Commissioner. 3.4 The Chief, DAD shall - 3.4.1 Draw a JV to record the balances of all accounts transferred from RISSI as of the cut-off date. 3.4.2 Receive the accounting records from the Chief Accountant, RISSI. 4.0 INVENTORY OF PROPERTY 4.1 A physical inventory of equipment, supplies and other tangible assets of RISSI shall be undertaken by a Sub-Committee of the Transition Committee created under Revenue Special Order No. 40-92 dated June 4, 1992, consisting of the following members. aisa dc Francisco Gonzales - BIR - Chairman Leandro Lopez - RISSI - Co-Chairman Victor Antonio, Jr. - BIR - Member Larry de los Santos - RISSI - Member Evangeline Calangi - BIR - Member Virgilio Ogues - BIR - Member Benjamin Escanlar - BIR - Member 4.2 The Sub-Committee shall perform the following functions: 4.2.1 Make an inventory of all equipment, including but not limited to computer hardware, software, tapes and disk pads; supportive facilities like buildings, vehicles, office equipment, furniture and fixtures; consumable items like continuous forms, ribbons, tapes, diskettes, stationery and the like, using for the purpose GF 41-A. 4.2.2 Request the presence of the BIR Auditor or her representative to witness the inventory-taking of all equipment, supplies and other tangible assets to be turned over to BIR. 4.2.3 Reconcile the result of physical count with property cards or inventory ledger cards and books of accounts. Any shortage/overage shall be the responsibility of the RISSI accountable officer concerned. cd i 4.2.4 Determine/segregate all the unserviceable properties for proper disposal, if warranted. 4.2.5 Turn over the inventory report to the Chief, Property Division under proper Invoice and Receipt (Gen. Form 30-A),not later than August 30, 1992. In turn, the Chief Property Division, BIR shall require the persons entrusted with the actual possession or custody of the property to accomplish Memorandum Receipts to acknowledge receipt of property for which they are accountable to the BIR Commissioner. 5.0 PROCUREMENT 5.1 All procurement actions for ordinary supplies and materials, including spare parts and maintenance of motor vehicles; repair of office equipment; computer media such as diskettes, magnetic tapes, printer ribbons and the like except computer forms, involving an aggregate amount not exceeding P125,000 within a given month shall continue to be done by concerned RISSI personnel. With respect to equipment, including computer hardware and software, furnishing of services e.g. maintenance of computers, computer forms, irrespective of amount; as well as supplies and materials, repairs of equipment where the amount involved is in excess of P125,000 within a given month; the requisition thereof shall be submitted to the Administrative Service or the proper Bidding and Award Committees of the BIR for filing. 5.2 Existing service contracts, unless sooner revoked by any of the parties to the agreement upon prior notice, shall be continued accordingly under the same terms and conditions obtaining thereunder until their respective termination dates. cd The option to renew the contracts shall be vested with the BIR, upon recommendation of the General Manager, RISSI. 5.3 To insure continuity of supply of computer forms and prevent stock-outs, inventory stock levels for this item shall be established taking into account the length of time required for the procurement process, including delivery. 5.4 Commonly-used supplies shall be procured from the Procurement Service except where no stock is available thereat in which case the corresponding requisitions may be procured from private suppliers. 5.5 Effective immediately, a procurement program for the purchase of supplies and materials and the furnishing of services shall be prepared by the Facilities Management Department, RISSI and submitted to the General Manager, RISSI, for approval and determination of the mode of procurement, based on the projected needs of the various departments of the defunct RISSI for the next six (6) months. A supplemental procurement program for contingency and miscellaneous items may be submitted to the RISSI Manager, the need for which cannot be anticipated during the preparation of the original program. A copy of the procurement program shall be furnished the Budget Division for allocation of funds. 5.6 Under no circumstances shall emergency purchase be resorted to except in cases where the need for supplies and materials is exceptionally urgent or absolutely indispensable to prevent immediate danger to, or loss of life and/or property, as certified by the RISSI General Manager. Where emergency purchase is made, the canvass of prices required shall be done immediately by the Facilities Management Department, RISSI through sealed written quotations from at least four (4) prospective suppliers/contractors. aisa dc Prices quoted should be kept confidential and should not be disclosed by those involved in the procurement process. At the date, time and place set for the opening of quotations, the chairman of the PBAC, RISSI in the presence of its members shall open the quotations submitted by the offerors. 5.7 Contracts shall invariably be awarded to the lowest complying bid/offer or to the offer most advantageous to the government after considering such factors as price, quality, delivery, performance and others. 5.8 Upon delivery of the item(s) purchased, a verification thereof shall be made by an Inspection Committee of the defunct RISSI to ensure that its quality is in accordance with the specifications/requirements and that the item is suitable for the purpose for which it is intended. 6.0 EXPENDITURES AND DISBURSEMENTS 6.1 Beginning July 1, 1992, the various offices concerned in the BIR shall be responsible for the payment of the operational expenses of the defunct RISSI including the salaries and benefits of its personnel transferred to the BIR as well as obligations of RISSI incurred prior to its dissolution, chargeable against the lump sum amount allotted and released to the BIR under the General Appropriations Act. cd 6.2 All expenditures and disbursements of the defunct RISSI shall be initially processed and passed upon by the RISSI personnel concerned, following existing accounting and auditing requirements. All disbursement vouchers shall be prepared upon the direction of the RISSI General Manager who shall at the first instance determine that the claim covered by the voucher is regular, necessary, reasonable and proper. He shall sign on the space provided in the voucher under Certification No. 3. In case he certifies to something which is discovered later on as irregular, unnecessary, excessive or extravagant, he shall, together with the other signatories of the disbursement voucher, be responsible therefor in accordance with existing COA rules and regulations. Thereafter, the corresponding payrolls and disbursement vouchers shall be coursed to the BIR offices involved for further processing, certification/approval and audit. For this purpose, a Standard Operating Procedure (SOP) to govern the expenditure and disbursement of funds for RISSI operations shall be installed and implemented. 6.3. All expenditures for the defunct RISSI operations shall be obligated before payments are made. All documents, including but not limited to purchase orders and contracts for supplies, materials and equipment, cash advances, printing, repair of equipment and facilities, and other non-recurring expenditures shall be routed to the Chief, Budget Division, and Chief, DAD, for obligation of allotment and certification of availability of funds respectively, before expenditures are incurred. Fixed and recurring expenditures such as salaries, travelling expenses etc. may be obligated upon presentation of the claim for payment. 6.4 Claims for payment shall be presented in disbursement vouchers and payrolls. Disbursements thru Modified Disbursement System (MDS) checks shall be made only after ensuring that they are sufficiently covered by Notice of Cash Allocation (NCA) issued by the Department of Budget and Management. aisa dc 7.0 RECRUITMENT AND SELECTION OF PERSONNEL In the recruitment, selection and appointment of personnel to be appointed by the BIR, the following policies and procedure are hereby established: 7.1 Incumbents of RISSI who have the educational qualifications, civil service eligibility(ies) and previous performance rating of at least "Satisfactory" for the last two (2) years at the defunct RISSI shall have priority for appointment to the same or comparable positions in the concerned unit or units of the BIR. 7.2 In the absence of such comparable positions to which RISSI officials and employees may be appointed, any vacant position(s) in the concerned unit(s) to be created or other organizational unit(s) in the BIR may be offered to them for their consideration, provided that they meet the qualifications required by the Civil Service law and rules. 7.3 Where the number of incumbents to be placed exceed the number of positions in the Staffing Pattern, they shall be compared in terms of relative fitness and the most qualified and competent shall be preferred. In this respect, the following factors shall be considered, in addition to those mentioned in the preceding section. 7.3.1 Relevant training 7.3.2 Experience and outstanding accomplishments. 7.3.3 Physical characteristics and personality traits. 7.4 The Personnel Division, BIR shall conduct a preliminary screening of the applicants to determine their qualifications and fitness. It shall also conduct other assessment methods and other evaluation processes which may be the basis for their possible appointment. cd 7.5 The Selection Committee shall evaluate/assess the qualifications and competence of the applicants based on the criteria and preference provided for herein. 7.6 The Committee shall determine and recommend to the Commissioner the applicant which it considers best qualified for the position. 7.7 The Personnel Division shall then prepare and submit to the Commissioner for approval, the appointment papers of the best qualified applicant. 8.0 EFFECTIVITY This Memorandum Order shall take effect immediately. cd i (SGD.) JOSE U. ONG Commissioner of Internal Revenue