Adoption of a Sub-Allotment System and Prescribing the Rules and Procedures for its Implementation

November 18, 1976 REVENUE MEMORANDUM ORDER NO. 51-76 TO : All Revenue Officials and Others Concerned SUBJECT : Adoption of a Sub-Allotment System and Prescribing the Rules and Procedures for its Implementation In view of the provisions of Budget Circular No. 247 dated July 31, 1975, requiring all agencies of the National Government to submit Project Financial and Work Schedules by regional areas during the execution phase of the budget process, there is hereby established a system of allocating funds, manpower and budgetary workloads among the Central Office and regional offices based on the reorganized set-up, decentralized functions and the present budgetary structure of this Bureau. GENERAL GUIDELINES : The sub-allotment of funds among the regional offices shall be based on the actual financial requirements of these regional offices and shall include the allotments for personal services, maintenance and other operating expenses except those for revenue accountable forms, bulk purchases of office supplies, materials and equipment which shall continue to be procured by the Central Office. The staffing pattern of the Bureau of Internal Revenue authorized under P.D. No. 640, together with all the changes approved in subsequent general appropriations decrees, shall be the basis of manpower distribution among the regional offices. On the other hand, the allocation of workloads shall depend on the capability of each regional office after considering its available facilities, manpower and financial resources. The above system shall also include payment of all obligations in the regional offices where they are incurred. PROCEDURES : 1. Revenue Regional Directors, with the assistance of the regional budget officer, shall prepare the Work and Financial Plan for their respective revenue regions for the ensuing calendar year and their estimated expenses for the first month of the year. The Work and Financial Plan shall reflect the quarterly allocation of the workloads, manpower and financial requirements of the regional office concerned. On or before October 31st of every year, the Revenue Regional Director shall forward to the Commissioner of Internal Revenue (Attention: Chief, Budget Division), for review and approval, the above Work and Financial Plan together with the estimated expenses for the first month of the ensuing year. 2. The Budget Division shall review and consolidate the Work and Financial Plan of the Central Office and those of the regional offices into one Bureau Work and Financial Plan for the final approval of the Commissioner of Internal Revenue and for submission to the Budget Commission. 3. Upon receipt of the Advice of Allotment from the Budget Commission, the Budget Division shall prepare for the signature of the Commissioner of Internal Revenue or his authorized representative the Advice of Sub-allotment for each quarter for each revenue region. The advice of Sub-allotment shall show the amounts that a particular revenue region can spend during the quarter for which the advice is issued. The Budget Division shall also prepare the Requests for Obligation of Allotment covering the estimated expenses of each revenue region for the first month of the calendar year. 4. The Budget Division shall transmit the Advice of Sub-allotment and Request for Obligation of Allotment covering the estimated expenses for the first month of the calendar year to the respective regional offices for their guidance in incurring and paying their obligations. The Advice of Sub-allotment shall serve as the authority of the revenue region concerned to incur obligations within specified financial limits for the quarter for which the Advice is issued while the Request for Obligation of Allotment shall serve as the obligational limit for the month for which it is issued. 5. The unit offices concerned in the revenue region shall prepare the vouchers for the payment of the obligations they have incurred. The unit head concerned or his authorized representative shall certify to the correctness of the claims shown in the voucher and shall forward the same together with all supporting documents to the Revenue Regional Director or his duly authorized representative for approval. Upon approval by the Regional Director, the voucher shall be forwarded to the regional accounting officer for processing. Processing by the regional accounting officer shall include, among others, the examination of all supporting documents to ascertain their completeness and propriety and the determination of the correct amount that shall be allowed. After processing by the regional accounting officer, the voucher with all its supporting documents shall be transmitted to the regional budget officer for funding and control of the amount allowed. The regional budget officer shall see to it that at all times the total obligations incurred do not exceed the amounts allotted to the revenue region concerned. The voucher shall be returned to the regional accounting officer who shall post in the index card of the payee the amount so allowed. The voucher with all its supporting documents shall then be forwarded to the regional disbursing officer who shall draw a treasury check in payment of the obligation. 6. Within one week after the end of each month, a Report of Disbursements duly audited by the regional auditor, shall be submitted by the regional disbursing officer to the Chief, Accounting Division thru the Chief, Budget Division in the Central Office. 7. The Budget Division shall control the amounts incurred, draw the corresponding Request for Obligation of Allotment for the total of the disbursements and transmit the same together with the Report of Disbursements to the Chief, Accounting Division, for accounting purposes. The Request for Obligation of Allotment at the beginning of the month shall serve as the estimated obligational limit for the succeeding month unless a revision of the estimated obligational limit is requested by the Revenue Regional Director concerned, in which case, if fully justified and backed up by available regional sub-allotment, the Budget Division shall cancel the Request for Obligation of Allotment drawn at the beginning of the month and issue a new one. 8. At the end of the year, a list of unpaid obligations in the revenue region concerned showing among others, the name of the claimant, the nature of the claim and the amount claimed, shall be attached to the last monthly Report of Disbursements of the region concerned. The said list shall serve as the basis of the Budget Division in drawing the Request for Obligation of Allotment covering the outstanding obligations of the particular revenue region. The actual disbursements reported by a revenue region for the last month of the year shall be charged against the outstanding Request for Obligation of Allotment and any over or under liquidation shall be adjusted in accordance with GAO General Circular No. 40 dated August 30, 1956 to reduce the balance of the Request for Obligation of Allotment to zero. 9. Where the amount of a regional sub-allotment advice is not sufficient, the Revenue Regional Director concerned shall, in urgent cases, relay to the Budget Division by telegram or thru the revenue radio network his request for release of additional sub-allotment. This shall be followed by a written request duly justified. In ordinary cases, a written request is submitted to the Bureau Budget Officer who will look for the much needed allotments. As soon as allotments become available, the Bureau Budget Officer shall submit his recommendations on the said request for additional sub-allotment to the Commissioner of Internal Revenue for his approval. After approval, the Budget Division shall inform accordingly and in the same manner the Revenue Regional Director concerned. In cases where the sub-allotment so released were taken from the allotment of another region, the Budget Division shall inform in like manner the Revenue Regional Director concerned as to the amount taken from the sub-allotment for his region. 10. The Bureau Budget Officer shall submit to the Budget Commission a request for a corresponding revision of the Work and Financial Plan of the Bureau. 11. After approval by the Budget Commission and the issuance of an advice of allotment effecting the change in the Work and Financial Plan of the Bureau, the Budget Division shall prepare the Advices of Sub-Allotment reflecting the changes in the Work and Financial Plans of the regional offices concerned, for the signature of the Commissioner of Internal Revenue. 12. The Budget Division shall transmit the Advices of Sub-allotment to the regional offices concerned for their guidance in adjusting the allotments of their respective revenue regions. REPEALING CLAUSE : Any or all provisions of any existing order or circular inconsistent herewith are hereby revoked or amended accordingly. EFFECTIVITY : This Order shall take effect January 1, 1977. Strict compliance with this Order by all concerned is hereby enjoined. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue TAN 1456-040-3