Guidelines in the Grant of the Performance-Based Bonus (PBB) FY 2016 for DILG-Local Government (LG) Sector Operating Units and Personnel

April 21, 2017

DILG CIRCULAR NO. 014-17

 

The Department will adopt the following implementing guidelines in the grant of the Performance-Based Bonus (PBB) FY 2016 for DILG-Local Government (LG) Sector, viz.:

1. Legal Bases

1.1. Executive Order No. 80, s. 2012 dated 20 July 2012, titled "Directing the Adoption of a Performance-Based Incentive System for Government Employees"; and

1.2. Inter-Agency Task Force (IATF) Memorandum Circular No. 2016-01 dated 12 May 2016, titled "Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2016 under Executive Order No. 80 and Executive Order No. 201."

2. Coverage

All officials and employees of DILG Regional Offices, Bureaus, Services, Executive Offices (Office of Secretary, USECs/ASECs) and other offices/operating units within the DILG-LG Sector, holding regular plantilla positions, co-terminus and contractual personnel (Patrol 117 Commission) having an employer-employee relationship with the Department, and whose compensation are charged to the lump sum appropriation under Personnel Services, or those occupying positions in the DBM approved contractual staffing pattern, who have rendered at least three (3) months of service in the Department for the year 2016.

3. Eligibility Criteria

As per Memorandum Circular No. 2016-1 dated May 12, 2016 (Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2016) the following shall be observed in determining the eligibility for the Department and individual personnel in the grant of the PBB FY 2016 in the DILG-LG Sector offices/operating units:

3.1. The Department must achieved the performance targets under the following: (OPR-Planning Service).

a. Major Final Outputs (MFOs) under the Performance Informed Budget (PIB) of the FY 2016 GAA;

b. Targets for Support to Operations (STO);

c. General Administration and Support Services (GASS); AIDSTE

3.2. Satisfy 100% of the Good Governance Conditions set by the AO 25 Inter-Agency Task Force (IATF) for FY 2016. (OPR-AS, FMS)

3.3. Use of the approved Strategic Performance Management System (SPMS) and Career Executive Performance Evaluation System (CESPES) for CY 2016 respectively. (OPR-AS)

4.  FY 2016 Performance Targets

4.1. The MFO indicators and targets in the FY 2016 PIB approved by Congress shall be the basis for assessing eligibility for the PBB. 1

4.2. STO target identified in accordance with the priority of the Agency Head;

4.3. The GASS targets shall be as follows:

a. Budget Utilization Rate (BUR), which shall consist of: 80% of Obligations BUR and 80% of Disbursement BUR.

b. Compliance to Public Financial Management (PFM) reporting requirements of the COA and the DBM in accordance with the prescribed content and period of submission under existing laws, rules and regulations. 2

c. Adoption and use of the FY 2015 Agency Procurement Compliance and Performance Indicators (APCPI) System per Government Procurement Policy Board (GPPB) Resolution No. 10-2012.

d. Submission of the Annual Procurement Plan (APP) for CY 2016 based on the Agency approved budget to the GPPB and its Technical Support Office (TSO).

5. Eligibility of Individuals

5.1 The eligibility of the Department Secretary will depend on the eligibility and performance of the respective department. His PBB rate shall be based on the monthly basic salary as of December 31, 2016, as follows:

Table 1.0

Performance of Eligible Agency	PBB as % of Monthly Basic Salary
Agency achieved all Good Governance Conditions (GGC), and its physical targets in all MFOs, STO and GASS indicators	65%
Agency achieved all GGCs, and has deficiency/ies in some of its physical target/s due to uncontrollable reasons	57.5%
Agency achieved all GGCs, and has deficiency in one of its physical target/s due to controllable reasons	50%

Note: Heads of Departments/agencies shall not be included in the ranking and reporting of delivery units but will be provided a separate line under Form 1.0.

5.2 Employees belonging to the First and Second Levels [SG 1-25] who received a rating of at least "Satisfactory" based on the Department's Civil Service Commission (CSC) — approved Strategic Performance Management System (SPMS), and should have submitted IPCR/DPCR for FY 2016 (1st & 2nd Semester) to be included in the grant of the PBB;

5.3 HRMD, Administrative Service will submit a certified list of employees who have submitted the complete SPMS (OPCR/IPCR) Forms for the required period to the PMG Secretariat (Personnel Division, Administrative Service) on or before April 30, 2017. 3

5.4 Third Level officials who have receive a rating of at least "Satisfactory" under the Career Executive Service Board (CESB) Online Career Executive Service Performance Evaluation System (CESPES) CY 2016, for an uninterrupted period of at least three (3) months. Payment of the PBB to third Level officials shall be contingent on the release of results of the CESPES. 4

5.5 For the purposes of the PBB ranking, the CESB Online CESPES will be adopted internally and will hereinafter be referred to as "Internal CESPES." 5Annex B

The said Internal CEPES will cover officials who are performing managerial and executive functions:

• Officials who are occupying Non-Career third level positions with co-terminus appointment but not CESE/O (e.g., Undersecretaries and Assistant Secretaries who are not CESE/O).

The Internal CESPES will require ratings from one (1) Superior and three to five (3-5) subordinates of the Ratee Official and should receive a rating of at least "Satisfactory" to be included in the ranking for the grant of the PBB.

5.6 Personnel on reassignment to other region/bureau/service/operating unit within the DILG-LG Sector for six (6) months or more shall be included in the ranking of employees in the recipient region/bureau/service/operating unit that rated his/her performance;

5.7 Personnel on detail or secondment to another government agency for six (6) months or more shall be included in the ranking of employees in the recipient agency that rated his/her performance. Payment of the PBB shall come from the mother agency.

Said personnel should have submitted at least one (1) IPCR for FY 2016 duly signed by his/her supervisor at the recipient station to be included in the grant of the PBB;

5.8 Personnel who transferred from one government agency to another government agency shall be included in the ranking of employees in the agency where he/she served the longest. If equal months were served for each agency, he/she will be included in the ranking of employees in the recipient agency.

5.9 An official or employee who have rendered a minimum of nine (9) months of service in FY 2016 (ending 31 December 2016) in the Department and with at least "Satisfactory" rating may be eligible for the full grant of the PBB;

5.10 An official or employee who have rendered less than nine (9) months but a minimum of at least three (3) months of service in the Department and with at least "Satisfactory" rating shall be eligible to the grant of PBB on a pro-rata basis corresponding to the actual length of service rendered, as follows: AaCTcI

Table 2

Length of Service	% of PBB Rate
8 months but less than 9 months	90%
7 months but less than 8 months	80%
6 months but less than 7 months	70%
5 months but less than 6 months	60%
4 months but less than 5 months	50%
3 months but less than 4 months	40%

The following are the valid reasons for an employee who may not meet the nine-month actual service requirement to be considered for PBB on a pro-rata basis:

a. Being a newly hired employee

b. Retirement

c. Resignation

d. Rehabilitation Leave

e. Maternity Leave/Paternity Leave

f. Vacation or Sick Leave with or without pay

g. Scholarship/Study Leave

h. Sabbatical Leave

5.11 Personnel who is on vacation or sick leave (with or without pay) for the entire year and or more than nine (9) months is not eligible to the grant of the PBB;

5.12 Personnel who is on Scholarship/Study Leave for more than nine (9) months is not eligible to the grant of the PBB;

5.13 Personnel who have rendered at least nine (9) months(including months in LGOO Training) of service in the Department, for the year ending 31 December 2016 may be eligible for the full grant of the PBB, provided that said personnel submitted at least one (1) IPCR for FY 2016 and receive a rating of at least "Satisfactory";

Moreover, personnel who have rendered at least three (3) months(including months in LGOO Training)but less than nine (9) months of service in the Department, for the year ending 31 December 2016 may be eligible for the grant of the PBB on a pro-rata basis, provided that said personnel submitted their IPCR for at least one (1) rating period for FY 2016 and receive a rating of at least "Satisfactory."

5.14 Personnel found guilty of administrative and/or criminal cases in FY 2016 by formal and executory judgment shall not be entitled to the PBB. If the penalty meted out is only a reprimand, such penalty shall not cause the disqualification to the PBB;

5.15 Officials and employees who failed to submit the 2015 SALN as prescribed in the rules provide under CSC Memorandum Circular No. 3 s. 2015, shall not be entitled to the FY 2016 PBB.

For those who are newly hired in 2016, they should have submitted their SALN as of date of assumption to duty to qualify for the grant of the PBB FY 2016;

5.16 Officials and employees who failed to liquidate within the reglementary period the Cash Advances received in FY 2016 as required by the COA shall not be entitled to the FY 2016 PBB.

• The Accounting Division, Financial Management Service, shall furnish the PMG Secretariat of the list of personnel with unliquidated aging cash advances on or before April 30, 2017.

5.17  Agency heads should ensure that officials and employees covered by RA 6713 submitted their 2015 SALN to the respective SALN repository agencies as prescribed in the rules provided under CSC Memorandum Circular No. 3, s. 2015, and also liquidated FY 2016 Cash Advances, as this will be the basis for the release of PBB to individuals.

6. Rating and Ranking Scheme

6.1. DILG-LG Sector Offices 6 shall be forced ranked following the distribution below:

PERFORMANCE CATEGORY	RANKING	NO. OF OFFICES	No. of office per Category
Best Office	Top 10%	4	3 Regions, 1 Bureau
Better Office	Next 25%	9	1 Bureau 3 Services 1 Exec Office 4 Regions
Good Office	Remaining 65%	25	2 Bureaus 5 Services 8 Exec Office 10 Regions
TOTAL	100%	38	38

6.2. Only personnel belonging to eligible offices/delivery units (Exec., Bureaus, Services & ROs) are qualified for the PBB. The resulting ranking of offices/delivery units shall be indicated in Form 1.0 (Annex 3, MC #2016-1 dated May 12, 2016). There shall no longer be a ranking of individuals within the offices/delivery unit.

7. Criteria for the Forced Ranking of Offices and Personnel

7.1. Rating and ranking of offices will be based on the following:

A) Rating and Ranking of Bureaus

 Bureaus will not rate other Bureaus. Bureaus will not rate the delivery units within their cluster because the objectivity of the rater is compromised — given that the rater and ratee, in this case, are considered as competitors relative to Forced Ranking of Offices. EcTCAD

CRITERIA FOR BUREAUS	ASSESSOR/S	WEIGHT
1. Accomplishments based on OPB Targets, OPCR and PBB Performance Targets:	Planning Service	20%
2. Financial Performance based on the following parameters/criteria: FMS Rating Tool (1) Budget Utilization Rate (BUR) — obligation VS allotment (2) Liquidation status — liquidation VS ageing of cash advances (3) Submission of Requirements and Reports (3a) Timeliness — frequency and promptness in reports submission (3b) Quality — completeness and accuracy of reports	FMS	20%
3. Performance focused on the following parameters/criteria: Annex C (to be used by ROs) (1) Clarity of issuances/instructions/guidance/guidelines in the implementation of PPAs (targets, timelines, etc.); (2) Adaptive of the programs/projects based on the instruction of the SILG and the President; (3) Timeliness in terms of providing technical assistance when needed; (4) Support, of any kind, they extend to the ROs for the successful implementation of PPAs; (5) Presence/availability of feedback mechanisms that paves the way for prompt response to queries and clarifications concerning issuances/instructions/guidance/guidelines that emanate from them and smooth exchange of information on PPA implementation. AS Rating Tool (1) Compliance to Administrative Policies (2) Submission of Requirements and Reports (2a) Timeliness — frequency and promptness in reports and requirement submission (i.e., APP, Records Inventory and others) (2b) Quality — completeness and accuracy of reports	ROs   (use Annex C)	25%                                                   10%
4. Performance in the delivery of specific initiatives and other special assignments. (Note: Each Executive Office will have its own criteria and rating tool; rating/results will be forwarded to PS for consolidation.)	All Bureaus — OSEC, OUSLG, ASFC & HRD   BLGS & NBOO-OUSPO   OPDS-OUSOp and NBOO (ASBCD)	25%

TOTAL

100%

B) Rating and Ranking of Services

 Services will not rate other Services (with exemption of the Planning Service). Services will not rate the delivery units within their cluster because the objectivity of the rater is compromised — given that the rater and ratee, in this case, are considered as competitors relative to Forced Ranking of Offices.

 Assessors are allowed to rate only the delivery units that they are in constant coordination with or those whose services they have availed of.

CRITERIA FOR SERVICES	ASSESSOR/S	WEIGHT
1. Accomplishments based on OPB Targets, OPCR and PBB Performance Targets.	Planning Service	25%
2. Performance focused on parameters/criteria applicable to each Service.	ROs and Bureaus (use Annexes D.1 to D.7)	BUs (25%) ROs (25%)
3. Performance in the delivery of specific initiatives and other special assignments.	All Services — OSEC, OUOp, OUSLG, ASFC & HRD	(25%)

TOTAL

100%

 In the case of Emergency Response Patrol 117, Accomplishments based on OPB Targets, OPCR and PBB Performance Targets for 2016 shall be the basis in rating the office.

C) Rating and Ranking of Regional Offices

 Regional Offices will not rate other Regional Offices. Regional Offices will not rate the delivery units within their cluster because the objectivity of the rater is compromised — given that the rater and ratee, in this case, are considered as competitors relative to Forced Ranking of Offices.

 Assessors are allowed to rate only the delivery units that they are in constant coordination with or those whose services they have availed of.

CRITERIA FOR REGIONAL OFFICES	ASSESSOR/S	WEIGHT
1. Performance/Accomplishments • Physical Accomplishments (OPB, OPCR, PBB Targets)	Planning Service (based on PBB Form A-1 and Physical Accomplishment)	20%
2. Performance based on Physical Accomplishments and Monitoring and Evaluation of project/program under the respective Bureau's operational jurisdiction	Bureaus (using Annex E as template)	25%
3. Financial Performance based on the following parameters/criteria: FMS Rating Tool (1) Budget Utilization Rate (BUR) — obligation VS allotment (2) Liquidation status — liquidation VS ageing of cash advances (3) Submission of Requirements and Reports (3a) Timeliness — frequency and promptness in reports submission (3b) Quality — completeness and accuracy of reports AS Rating Tool (1) Compliance to Administrative Policies (2) Submission of Requirements and Reports (2a) Timeliness — frequency and promptness in reports and requirement submission (i.e., APP, Records Inventory and others) (2b) Quality — completeness and accuracy of reports	OASFC/FMS (use FMS Rating Tool)	30%       (FMS — 20%)                         (AS — 10%)
4. Performance in the delivery of RO — specific initiatives and other special assignments. (Each Executive Office will have its own criteria and rating tool; rating/results will be forwarded to PS for consolidation.)	OUSLG, OUSPO for Peace and Order concerns (PLEB & POCs, and OUSUPISFOSC for Regions III, NCR & IVA only. ASECBACD for MASA MASID	25%

TOTAL

100%

D) Rating and Ranking of Executive Offices

Executive Offices will not rate other Executive Offices. The Office of the Secretary will be the only rater for all the offices of Undersecretary and Assistant Secretaries.

CRITERIA FOR EXECUTIVE OFFICES	ASSESSOR/S	WEIGHT
Performance focused on the following parameters/criteria: Annex F (1) Exercise supervision to various OUs/Agencies of the Department in the performance of their functions (i.e., formulation of policies, programs, administrative, legal, fiscal and financial policies, systems and procedures) (2) Prompt and immediate actions/response to SILG's instructions (3) Prompt and immediate response to queries, requests and other concerns are provided within the prescribed period (10 days per CSC laws, rules and regulations) (4) Availability in terms of representing the SILG and the Department to various high level meetings and commitment. (5) Support, of any kind (technical, administrative, etc.), they extend to the rater;	All Executive Offices shall be assessed by the Office of the Secretary using the attached rating tool	100%

TOTAL

100%

7.2. The PBB focal person and or secretariat/personnel in the administrative unit within the bureau/service/regional office/executive office, will prepare the List of Eligible Personnel using Annexes A, duly signed and certified correct by the head of unit. The hard copy of the Annexes must be submitted to the DILG PMG Overall Secretariat, (Personnel Division, Administrative Service) while the soft copy (in excel format) shall be sent thru email to [email protected]April 30, 2017.

7.3. All accomplished/complied annexes and the concerned assessors of every delivery units shall submit all their ratings to the Planning Service on or before May 8, 2017.

7.4. The Planning Service will determine the final rating and ranking of offices per consolidated assessment results from the designated assessors, and will submit the Result of Office Force Ranking to the DILG PMG Overall Secretariat. Not later than May 25, 2017.

7.5. The DILG PMG Overall Secretariat will prepare the Form 1.0 of the DILG-LG Sector based on the results of the forced ranking of offices by delivery unit, for submission to the AO 25 Secretariat and the Department of Budget Management (DBM).

9. n  Rates of the FY 2016 PBB

The PBB rates of individual employees shall depend on the performance ranking of all the offices/delivery unit where they belong, based on the individual's monthly basic salary as of December 31, 2016 as follows, but not lower than Php5,000.00:

 

Performance Category	PBB as % of Monthly Basic Salary
Best Bureau/Office/Delivery Unit (10%)	65%
Better Bureau/Office/Delivery Unit (25%)	57.5%
Good Bureau/Office/Delivery Unit (65%)	50%

 

10. Transparency and Feedback Mechanism

The DILG-OSEC PMG will release the PBB Office Ranking, through the Public Affairs and Communication Service (PACS), to all concerned units after the PBB FY 2016 cycle to report results and provide feedback regarding strengths and areas for improvement.

These guidelines shall be enforced for the grant of PBB for FY 2016.

(SGD.) CATALINO S. CUY

Officer-in-Charge, DILG

ANNEX A

List of Ranked Personnel

ANNEX B

Performance Based-Bonus Personnel Rating Tool

ANNEX C

Performance Rating Tool

ANNEX D.1

Performance Satisfaction Rating Tool (PS)

ANNEX D.2

Performance Satisfaction Rating Tool (AS)

ANNEX D.3

Performance Satisfaction Rating Tool (ISTMS)

ANNEX D.4

Performance Satisfaction Rating Tool (LLLS)

ANNEX D.5

Performance Satisfaction Rating Tool (IAS)

ANNEX D.6

Performance Satisfaction Rating Tool (FMS)

ANNEX D.7

Performance Satisfaction Rating Tool (PACS)

ANNEX E

Performance Satisfaction Rating Tool (OEO)

Footnotes

1. MFO Targets PI1 — 1,665 LGUs provided with TA, PI2 — 1,653 LGUs assessed on SGLG, PI3 — 5% increase, PI4 — 20% of qualified LGUs provided with incentives for good governance performance, PI5 — 1,665 LGUs provided with TA in accordance to set timelines.

2. Budget and Financial Accountability Reports (BFARs), Report on Ageing of Cash Advances and COA Financial Reports (Statement of financial Position; Statement of Financial Performance; Statement of Changes in Net Assets/Equity; Statement of Cash Flows; Statement of Comparison of budget and Actual Amounts; and Notes to Financial Statements) (per COA Resolution No. 2014-003).

3. FORMS includes the following: Individual — IP Commitment & Review Rating Forms, Monthly DPCR, Individual PDP and Summary of Individual Rating for the DC, DPCR, Division Development Plan and Professional Development Plan, Coaching Forms and Critical Incident Form (if there's any).

4. Pursuant to CESB Circular No. 01 series 2017 dated January 23, 2017, Generating the Career Executive Service Performance Evaluation System (CESPES) Ratings for CY 2016, Section 1: Scope and Coverage — The provision of this Circular shall apply to incumbents of CES positions, i.e., CESOs, CES Eligibles and non-CES Eligibles who are appointed to CES positions or designated in an Acting capacity or as Officer-in-Charge of a CES position.

5. The Internal CESPES will require ratings from one (1) Superior and three to five (3-5) Subordinates of the Ratee Official. Official should receive a rating of at least "Satisfactory" under the Internal CESPES to be included in the ranking for the grant of the PBB.

6. *Executive Offices A (7): OSEC Proper, OUSLG, OUSOp, OUSPS, OUSUPISFSC/OULLC, OASMA, OASPP, Executive Office B (2) — OASIELA, OASBACD, (9 exec office) *Bureaus (4): OPDS, BLGD, BLGD, NBOO, *Services (8): FMS together with ASFC, LLLS, AS, PS, IAS, ISTMS, PACS, Patrol 117, *Regional Offices (17) Total delivery units is 38.

n Note from the Publisher: Copied verbatim from the official copy. Irregular numerical sequence.