Relative to Part V on Budgeting and Financial Control and Pertinent Provisions of the Integrated Reorganization Plan

December 15, 1972

LETTER OF IMPLEMENTATION NO. 18

RELATIVE TO PART V ON BUDGETING AND FINANCIAL CONTROL AND PERTINENT PROVISIONS OF THE INTEGRATED REORGANIZATION PLAN

 

Pursuant to Presidential Decree No. 1, dated September 24, 1972, Reorganizing the Executive Branch of the National Government, you are hereby directed to implement Part V on Budgeting and Financial Control and other pertinent provisions of the Integrated Reorganization Plan, hereinafter referred to as the "Plan," prepared by the Commission on Reorganization as follows:

ORGANIZATION OF THE BUDGET COMMISSION

SECTION 1. The organization and functions of the Budget Commission, hereinafter referred to as the "Commission," shall be in accordance with the provisions of Part V and pertinent provisions of the Plan and the details contained in this Letter of Implementation.

SECTION 2. The organization of the Commission, as I graphically depicted in the following organization chart, shall consist of the Commission proper composed of the Office of the Commissioner, the Planning Service, the Financial and Administrative Service, the Legislative Staff, the Training and Information Staff, and the Accounting Machines Division; the Budget Operations Office; the National Accounting Office; the Management Office; and the Wage and Position Classification Office. The Committee to Undertake the Preparation of Annual Planning of Current Operating Expenditures on Department/Agency Level is attached to the Budget Commission subject to the provisions of Paragraph 4, Article I, Chapter I, Part I of the Plan.

RELATIONSHIPS BETWEEN THE COMMISSION AND CLIENT AGENCIES

SECTION 3. The Commission shall exercise such powers and authorities over client agencies presently provided in pertinent laws, orders, and regulations, which are necessary to effectively and economically perform the Commission's functions.

RELATIONSHIPS BETWEEN THE OFFICE OF THE COMMISSIONER AND THE OFFICES, SERVICES, AND STAFFS OF THE COMMISSION

SECTION 4. The Office of the Commissioner of the Budget, as defined in Section 8, shall have direct line supervision over the Budget Operations Office, the National Accounting Office, the Management Office, the Wage and Position Classification Office, and the services and staffs of the Commission.

FUNCTIONS OF THE COMMISSION

SECTION 5. The Commission shall serve as the principal staff arm of the President on the preparation, execution, and control of the national budget; preparation and maintenance of consolidated accounting records and reports of the National Government; achievement of more economy and efficiency in the management of government operations; administration of the wage and position classification system; and review and evaluation of legislative proposals involving budgetary or major organizational changes.

FUNCTIONAL STATEMENTS OF THE BUDGET COMMISSION

SECTION 6. In conformity with the above set of relationships, the functions, powers, duties, and responsibilities of the Commission and its various units shall be as follows.

THE COMMISSION PROPER

SECTION 7. The organization of the Commission proper, as graphically depicted in the following organization chart, shall consist of the Office of the Commissioner, the Planning Service, the Financial and Administrative Service, the Legislative Staff, the Training and Information Staff, and the Accounting Machines Division with corresponding duties and responsibilities, follows.

OFFICE OF THE COMMISSIONER

SECTION 8. The Office of the Commissioner shall consist of the Commissioner of the Budget, hereinafter referred to as the "Commissioner," the Deputy Commissioner of the Budget, hereinafter referred to as the "Deputy Commissioner," and the personnel of their immediate office. It shall be responsible for the adoption and promulgation of miles and regulations necessary to carry out Commission policies and objectives, and for exercising general supervision and control over the offices, services, and staffs of the Commission.

Functions of the Commissioner

SECTION 8.1. The Commissioner shall have the following functions:

1. Advise the President in the promulgation of executive orders, regulations, and decrees relative to matters under the jurisdiction of the Commission;

2. Establish the policies and standards for the operation of the Commission pursuant to the President's program of government;

3. Promulgate rules and regulations necessary to carry out Commission objectives, policies, and functions;

4. Exercise supervision and control over all offices, services, and staffs under the Commission;

5. Delegate authority for the performance of any function to officers and employees under his direction; and

6. Perform such other functions as may be provided by law or assigned by the President.

Functions of the Deputy Commissioner

SECTION 8.2. The Deputy Commissioner shall have the following functions:

1. Advise and assist the Commissioner in the formulation and implementation of Commission objectives and policies;

2. Oversee all the operational activities of the Commission for which he shall be responsible to the Commissioner;

3. Coordinate the programs and projects of the Commission, and be responsible for its economical, efficient, and effective administration;

4. Serve as deputy to the Commissioner in all matters relating to the operations of the Commission; and

5. Perform such other functions as may be provided by law or assigned by the Commissioner.

SECTION 8.3. When the Commissioner is unable to perform his duties owing to illness, absence, or other causes, or in case of vacancy in the Office, the Deputy Commissioner shall temporarily perform the functions of the said Office.

FUNCTIONS OF THE PLANNING SERVICE

SECTION 9. The Planning Service shall have the following functions, among others:

a. Appraise the Commissioner on the economic trends and relationships affecting and affected by government income and expenditures, and advise him on the impact of government fiscal policies on the economic growth of the country;

b. Review current and future borrowing trends for economic and fiscal implications, and advise the Commissioner on the achievement of a judicious balance between taxation and borrowings as a means of financing governmental programs;

c. Assist the Commissioner in the development or in the review and evaluation of fiscal plans and policies for the consideration of, or being considered by the Development Budget Coordination Committee;

d. Interpret fiscal policies and plans formulated by the Development Budget Coordination Committee for ensuring correct implementation in the national budget;

e. Assist in drafting the fiscal policy and annual budget message of the President;

f. Analyze fiscal aspects of proposed legislation affecting income and expenditures, and recommend courses of action to the Commission; and

g. Perform such other functions as may be provided by law.

FUNCTIONS OF THE FINANCIAL AND ADMINISTRATIVE SERVICE

SECTION 10. The Financial and Administrative Service shall be responsible for providing staff advice and assistance on internal budgetary and financial matters and well-planned, directed, and coordinated services relating to personnel, records, supplies, equipment, disbursements, security, and janitorial work.

The Service shall have a Budget Division, an Accounting Division, a Personnel Division, and a General Services Division.

Functions of the Budget Division

SECTION 10.1. The Budget Division shall have the following functions, among others:

a. Develop and improve budgetary methods, procedures, and justifications;

b. Provide, subject to budgetary ceilings, fund estimates in support of the Commission's operations, plans, and programs;

c. Assist management in the presentation of the Commission's budgetary estimates before administrative and legislative bodies;

d. Prepare annual financial work plans;

e. Allocate, in coordination with the Planning Service, available funds to programs on the basis of approved guidelines and priorities;

f. Issue allotment advice in support of the fund requirement for the conduct of the operations under each program;

g. Review performance reports to determine conformance with set standards;

h. Prepare financial reports for management guidance and as required by higher authorities; and

i. Perform such other functions as may be provided by law.

Functions of the Accounting Division

SECTION 10.2. The Accounting Division shall have the following functions, among others:

a. Advise management on financial matters;

b. Prepare and submit financial reports to management and other government departments and agencies authorized to receive such reports;

c. Maintain basic and subsidiary accounting records and books of accounts to reflect accurate and current financial information required by existing accounting and auditing rules and regulations, and by management;

d. Certify to the availability of funds, obligate funds, and issue treasury warrants to liquidate obligations;

e. Process requisitions, vouchers, and reports of collections and disbursements;

f. Prepare billings to debtors of the National Government; and

g. Perform such other functions as may be provided by law.

Functions of the Personnel Division

SECTION 10.3. The Personnel Division shall have the following functions, among others:

a. Advise management on personnel policy and administration;

b. Develop and administer a personnel program which shall include selection and placement, classification and pay, career and employee development, performance rating, employee relations, and welfare services;

c. Act on all matters concerning attendance, leaves of absence, appointments, promotions, transfers, and other personnel transactions;

d. Maintain personnel records and statistics; and

e. Perform such other functions as may be provided by law.

Functions of the General Services Division

SECTION 10.4. The General Services Division shall have the following functions, among others:

a. Provide policy guidance on the maintenance and disposition of records, and on the procurement and storage of supplies in accordance with government prescribed standards;

b. File and maintain necessary records and establish a records disposition program for the Commission;

c. Provide mail, transportation, custodial, and general utility services for the Commission;

d. Procure, store, and distribute supplies and equipment of the Commission, and take periodic inventories of the same;

e. Provide and coordinate messengerial, duplicating, and typing pool services;

f. Receive, collect, and deposit cash, prepare payrolls, and process vouchers for payment of the Commission's obligations; and

g. Perform such other functions as may be provided by law.

FUNCTIONS OF THE LEGISLATIVE STAFF

SECTION 11. The Legislative Staff shall be responsible for providing staff assistance on legislative proposals having budgetary implications, and legal services necessary to the operation of the Commission. It shall have the following functions, among others:

a. Review and coordinate for the Commissioner, all legislative proposals having budgetary implications prepared by entities of the Executive Branch of the National Government and inform the agencies whether such legislative proposals conform to the President's policies and programs;

b. Counsel the Budget Operations Office and agencies in the preparation, review, and approval of appropriation language which meets the standards of the Commission for legal and substantive accuracy;

c. Conduct legal research and render legal opinions for the Commissioner on matters related to budget administration;

d. Prepare drafts, on behalf of the Commissioner, of executive orders and administrative orders related to the functions and activities of the Commission, for the Office of the President; review and recommend changes in proposed executive orders and administrative orders referred to the Commission;

e. Recommend to the Commissioner approval or veto by the President of legislations having budgetary implications, when requested by the Office of the President; and

f. Perform such other functions as may be provided by law.

FUNCTIONS OF THE TRAINING AND INFORMATION STAFF

SECTION 12. The Training and Information Staff shall be responsible for establishing and administering a training and information program for the Commission.

It shall have the following functions, among others:

a. Determine training needs;

b. Develop course content of, and conduct, in coordination with offices of the Commission and appropriate agencies, career and employee development training programs relevant to Commission personnel and those of client agencies;

c. Undertake a continuing evaluation of the different training programs to determine their effectiveness and recommend shifts or modifications whenever necessary;

d. Establish and administer a program to keep the public in general, and both government and private entities directly concerned, in particular, with the policies, programs, and activities of the Commission;

e. Coordinate with the Department of Public Information;

f. Operate and maintain a library; and

g. Perform such other functions as may be provided by law.

FUNCTIONS OF THE ACCOUNTING MACHINES DIVISION

SECTION 13. The Accounting Machines Division shall have the following functions, among others:

a. Prepare payrolls and treasury warrants for client agencies;

b. Keep and maintain master and deduction cards of employees of client agencies;

c. Prepare and submit reports and statements as required by pertinent laws and regulations; and

d. Perform such other functions as may be provided by law.

FUNCTIONS OF THE BUDGET OPERATIONS OFFICE

SECTION 14. The Budget Operations Office shall be responsible for providing assistance in the preparation, execution, and control of the national budget.

The Office, as graphically depicted in the following organization chart, shall have a Budget Control Staff, a Standards Division, and seven clientele divisions with corresponding duties and responsibilities, as follows:

Functions of the Budget Control Staff

SECTION 14.1. The Budget Control Staff shall have the following functions, among others:

a. Prepare or revise the program of expenditures in coordination with the Technical Staff of the Development Budget Coordination Committee;

b. Control conformance of releases of allotments with the program of expenditures and the cash budget;

c. Analyze, review, and consolidate the agency cash disbursement ceilings, based on the recommendations of the clientele divisions and the monthly reports of cash disbursements;

d. Assist in the preparation of the Cash Budget for submission by the Commissioner to the Development Budget Coordination Committee;

e. Undertake such necessary activities in the preparation of estimates of income and public borrowings insofar as these affect expenditure programming and cash allocations; and

f. Perform such other functions as may be provided by law.

Functions of the Standards Division

SECTION 14.2. The Standards Division shall have the following functions, among others:

a. Study, design, and initiate improvements in the basic systems for budget formulation and control of budget execution;

b. Develop methods and techniques for adequate budget review, and assist in the training of budget examiners on their use;

c. Develop guides for the use of the agencies and budget examiners in formulating and reviewing budget estimates;

d. Prepare instruction for the submission of agency estimates;

e. Schedule the submission and review of budget estimates;

f. Maintain manuals, handbooks, and other policy and instructional materials for use of budget examiners;

g. Design the Budget Document, including the form and content of summary and interpretative tables, and the order and arrangement of materials;

h. Schedule and supervise the publication of the Budget Document;

i. Develop training media on budget formulation, review, and execution processes, and other materials for the information of and use by the clientele divisions and agency budget staffs; and

j. Perform such other functions as may be provided by law.

Functions of the clientele divisions

SECTION 14.3. The clientele divisions shall have the following functions, among others:

a. Advise and assist agencies in the preparation of their budgets;

b. Analyze and recommend action by the Commissioner on budget requests, allotment requests, and reports of operation from the various government entities;

c. Promote programs for budgetary management improvement;

d. Prepare reports on special budgetary problems for the Commissioner; and

e. Perform such other functions as may be provided by law.

FUNCTIONS OF THE NATIONAL ACCOUNTING OFFICE

SECTION 15. The National Accounting Office shall be responsible for the compilation and analysis of financial data for the use of the Commission and other government entities; the preparation and submission of reports to the Commissioner for the financial guidance and information of the Executive and the Legislative Branches of the government; and providing technical guidance for and supervision of agency accounting operations.

The Office, as graphically depicted in the following organization chart, shall have a Systems Division, two supervisory accounting divisions, and an Accounts Division with corresponding duties and responsibilities, as follows.

Functions of the Systems Division

SECTION 15.1. The Systems Division shall have the following functions, among others:

a. Develop and recommend improvements in the National Governments accounting and financial reporting system;

b. Undertake special studies on accounting systems that are of specific program or project-wide application;

c. Assist the supervisory accounting divisions in formulating corrective or remedial measures for deficiencies noted in agency accounting operations;

d. Assist in the formulation and implementation of training programs for the improvement of accounting operations; and

e. Perform such other functions as may be provided by law.

Functions of the Supervisory Accounting Divisions

SECTION 15.2. The supervisory accounting divisions shall have the following functions, among others:

a. Provide functional direction and control of accounting practices throughout the National Government; and develop rules and regulations, with the assistance and cooperation of the accounting units, for the proper conduct of accounting operations;

b. Review and inspect accounting activities in the various government entities to insure their conformity with established practices, and recommend such actions as may be required to assure the integrity of financial reports received from the accounting units and to reconcile differences found; and

c. Perform such other functions as may be provided by law.

Functions of the Accounts Division

SECTION 15.3. The Accounts Division shall have the following functions, among others:

a. Maintain accounting records summarizing and reflecting the current status of specific government accounts;

b. Maintain records reflecting authorized appropriation's, allotted appropriations, unallotted balances of appropriations, and unobligated balances of appropriations; allotments and unobligated balances of allotments; and obligations incurred, obligations liquidated, and unliquidated obligations;

c. Maintain records of income classified for use by the Commission and the Department of Finance;

d. Analyze accounting and financial records and prepare reports required by the Executive Branch of the National Government; and

e. Perform such other functions as may be provided by law.

FUNCTIONS OF THE MANAGEMENT OFFICE

SECTION 16. The Management Office shall be responsible for formulating and administering a management improvement program for the Executive Branch of the government, and providing technical guidance and assistance to agency management improvement activities.

The Office, as graphically depicted in the following organization chart, shall have a Standards Division and six clientele divisions with corresponding duties and responsibilities, as follows:

Functions of the Standards Division

SECTION 16.1. The Standards Division shall have the following functions, among others:

a. Undertake studies and develop standards on organization, staffing, work processes, management systems, and resources management for greater economy, efficiency, and effectiveness in government operations;

b. Assist in the formulation and implementation of training programs for management improvement and the development of technical skills of agency personnel engaged in management improvement; and

c. Perform such other functions as may be provided by law.

Functions of the Clientele Divisions

SECTION 16.2. The clientele divisions shall have the following functions, among others:

a. Make detailed studies of the departments and agencies of the National Government with a view to securing greater organizational sensitivity and responsiveness to the needs of the various developmental programs and services, on request of agencies involved, or when deemed necessary by the Commissioner;

b. Study, analyze, and recommend changes in:

(1) the existing organization, management, activities, and methods of business of departments and agencies;

(2) the assignment of particular activities to particular services; and

(3) the regrouping of services;

c. Assist in the implementation of plans for management improvement in the departments and agencies;

d. Review organization and staffing proposals of the agencies which are submitted through the budget; and

e. Perform such other functions as may be provided by law.

FUNCTIONS OF THE WAGE AND POSITION CLASSIFICATION OFFICE

SECTION 17. The Wage and Position Classification Office shall be responsible for administering and maintaining the wage and position classification system.

The Office, as graphically depicted in the following organization chart, shall have a Standards Division and eight clientele divisions with corresponding duties and responsibilities, as follows.

Functions of the Standards Division

SECTION 17.1. The Standards Division shall have the following functions, among others:

a. Conduct steadies to improve the quality and consistency of classification standards;

b. Conduct salary surveys in private industry;

c. Study proposals of clientele divisions involving the creation, abolition, and salary range assignments of classes of positions;

d. Recommend action on proposals to change the wording or coverage of class specifications;

e. Develop improved techniques of position classification and salary administration;

f. Assist in the formulation and implementation of training programs in the field of classification and compensation administration; and

g. Perform such other functions as may be provided by law.

Functions of the Clientele Divisions

SECTION 17.2. The clientele divisions shall have the following functions, among others:

a. Classify positions in respective client agencies;

b. Initiate proposals for the creation, abolition, and revision of classes of positions, the reassignment of salary ranges, the improvement of classification techniques and practices, and the adoption of better administrative policies and procedures on wage and position classification;

c. Keep informed of all organizational and functional changes in departments and agencies;

d. Assist the Standards Division, when requested in the conduct of salary surveys in private industry; and

e. Perform such other functions as may be provided by law.

TRANSITORY MEASURES

SECTION 18. In conformity with the foregoing organizational structure and functional statements, you are hereby directed to prepare with the assistance of the Civil Service Commission and the Presidential Commission on Reorganization and submit within ninety days from the promulgation of Presidential Decree No. 1, for the approval of the President, supplementary details relative to the Staffing Pattern for the Commission. The Staffing Pattern shall, insofar as practicable, be in accordance with the criteria specified in Paragraph 5, Article I, Chapter I, Part XXIII on General Provisions of the Plan.

SECTION 19. You shall, upon the approval of the Staffing Pattern referred to above, appoint the personnel to fill the positions authorized in said Staffing Pattern except those requiring Presidential Appointment.

SECTION 20. All appointments to the positions that shall be authorized under the Staffing Pattern referred to above shall, in general, be in accordance with the merit requirements of the Civil Service law and miles and duly approved qualification standards for each position: Provided, That in the case of new position titles, qualification standards therefor shall be developed by the Commission, subject to the approval by the President upon recommendation of the Civil Service Commission: Provided, further, That consideration for employment of persons other than those of the staffs, services, and offices affected by this implementation shall be made only after the personnel of such entities shall have been considered: Provided, finally, That personnel actions which need to be taken as a result of the establishment of the said Staffing Pattern shall be in accordance with applicable Civil Service law and rules, and pertinent provisions of Part XXIII on General Provisions of the Plan.

SECTION 21. No original appointments to positions, except confidential positions, in the Staffing Pattern shall be made until all qualified employees in the entities affected shall have been absorbed to appropriate positions available. You shall furnish the Civil Service Commission a certified list of all employees separated as a result of the implementation of the organization of the Commission together with a justification for their separation.

SECTION 22. The position titles that shall be used in the Staffing Pattern shall be tentative for purposes of initial appointments to positions provided therein. The position titles shall be subject to final determination and allocation to appropriate classes and salary ranges by WAPCO upon conduct of the usual audit of duties and responsibilities assigned to the positions.

SECTION 23. All initial appointments to positions in the Staffing Pattern shall be at the authorized or actual salaries of the incumbents appointed to the positions, whichever is higher. In the reallocation of appropriations authorized to be made under Section 27 of this Letter of Implementation, an adequate lump-sum amount shall be provided to take care of all cases where the actual salary of the appointee is more than the rate authorized.

SECTION 24. Salary increases as may result from appointments to positions in the Staffing Pattern shall be effective only after final determination and allocation of said positions by the WAPCO pursuant to Section 22 of this Letter of Implementation.

SECTION 25. In the selection and initial appointment of personnel for positions in the Staffing Pattern, you shall be assisted by a Committee to be composed of a representative each of the Commission, the Civil Service Commission, and the Office or comparable entity in the Commission, where said positions are organizationally located.

SECTION 26. The Accounting Machines Division shall continue to perform its functions until such time as the Data Processing Center shall have been organized subject to proper authorization and pertinent provisions of Article VII, Chapter I, Part VI of the Plan.

REALLOCATION OF APPROPRIATIONS

SECTION 27. You are likewise directed to cause the preparation of the details of the Reallocation of Appropriations necessary to put into effect the implementation as prescribed by this Letter of Implementation in accordance with Paragraph 4, Article I, Chapter I of Part XXIII of the Plan.

TIMING OF ADMINISTRATIVE ACTIONS

SECTION 28. You are hereby directed to effect the orderly scheduling of transfers, changes, and other transitional actions required by the Plan and this Letter of Implementation: Provided, That all such actions shall be completed within the period prescribed in Paragraph 14, Article I, Chapter I, Part XXIII of the Plan reckoned from the date of issuance of Presidential Decree No. 1. In the interim, each entity affected shall continue to perform its functions until such time as you shall order change or cessation and each officer and employee shall continue to perform his duties and to exercise his authority until such time as you order otherwise but not beyond the termination of the transition period prescribed above.

SECTION 29. In the process of the final selection of personnel to fill the positions in the Staffing Pattern mentioned above, you are authorized to make the necessary changes in the personnel structure of the Commission subject to the approval of the Office of the President, to correct inequities that in your opinion may have resulted from the preparation thereof: Provided, That any adjustment or adjustments that shall be made pursuant hereto shall not result in an increase in the total appropriations for personal services authorized for the Commission.

SECTION 30. You are hereby finally directed to note and call the attention of the President to each provisions of Part V of the Plan or portions thereof which are inoperable under present conditions in view of the Proclamation Order No. 1081 dated September 21, 1972 and which should be suspended until such time as their activation shall be possible.

DONE in the City of Manila, this 15th day of December in the year of Our Lord, Nineteen Hundred and Seventy-Two.