REVENUE MEMORANDUM ORDER NO. 38-2022 issued on September 21, 2022 prescribes the criteria/conditions and guidelines on the reporting of compliance for the grant of the FY 2022 Performance-Based Bonus (PBB) per Administrative Order No. 25 Inter-Agency Task Force Memorandum Circular (IATF-MC) No. 2022-1. To be eligible for the grant of the FY 2022 PBB, the Bureau must satisfy the criteria and conditions under the four dimensions of accountability, namely: Performance Results, Process Results, Financial Results, and Citizen/Client Satisfaction Results. The FY 2022 PBB Targets for each of the Criteria are as follows: Criteria And Conditions Performance Targets Performance Results Achieve each one of the Congress-approved performance targets under the Performance-Informed Budgeting (PIB) of the FY 2022 General Appropriations Act (GAA) The agency performance in the achievement of targets shall be closely monitored through the use of the submitted Unified Reporting System (URS) – generated Budget and Financial Accountability Reports (BFARs), to indicate the progress towards the accomplishment of broader sectoral and societal outcomes targeted by the agency for improving the lives of Filipinos. The quarterly BFARs of the agencies, as uploaded in the DBM URS, shall be submitted in a timely manner, i.e., within thirty (30) days after the end of each quarter, as provided under Item 3.15.2 of National Budget Circular No. 583, pursuant to Section 90, General Provisions of Republic Act No. 11518 (FY 2022 GAA). BFARs will be used to monitor and validate agency accomplishments. For deficiencies or non-attainment of FY 2022 targets, justifications must be submitted together with the prescribed BFAR forms to the Commission on Audit (COA), the DBM, and the Bureau of Treasury (BTr), as applicable through the DBM URS, thirty (30) days after the end of the 4th quarter of FY 2022. Process Results Greater ease of transaction of core services based on mandated functions (external) covering government-tocitizens (G2C), government-to-businesses (G2B), and government-to-government (G2G) transactions, and the administrative and supporting services (internal) within the agency This may be achieved through streamlining especially of critical external and internal services; standardization of core processes including those implemented at the Regional, Satellite, and Extension Offices; digitization e.g., by developing electronic or online paperless systems, new service delivery channels, Criteria And Conditions Performance Targets contactless transactions; and systems and procedures reengineering for faster, easily accessible, seamless, and more efficient public service delivery. For FY 2022, the target will be substantive improvements in ease of doing business/ease of transaction with respect to two (2) critical services consisting of one (1) core service (external) based on the bureau’s mandated function and one (1) support/administrative service (internal) as declared in the citizen’s charter and in line with Anti-Red Tape Authority’s (ARTA) Whole-of-Government (WOG) Reengineering Manual. As defined in ARTA MC 2019-002-A, the services may be categorized based on the following: a. External Services – refer to government services applied for or requested by external citizens or clients or those who do not form part or belong to the government agency or office. b. Internal Services – refer to government services applied for or requested by internal clients or individuals who are within the respective government agency or office, such as, but not limited to, its personnel or employees, whether regular or contractual. Internal services include services to regulatory functions related to permitting, licensing, and issuance of a privilege, right, reward, clearance, authorizing, or concession. In selecting the critical services to be prioritized by the agency, the following factors shall be considered: a. A core service which is a process needed to achieve the overall mission and objectives of the Bureau. The service/s may refer to those that are aligned with the Bureau’s mandate and functions; b. The most complained service with the greatest number of complaints received; c. The service/s with the greatest number of pending transactions or backlogs that went beyond its prescribed processing time as declared in the Citizen’s Charter; d. A service that generated income/revenue for the government; e. A service attributable to the Major Final Outputs (MFOs)/ Programs; and f. A service that involves inter-agency action to complete the transaction. Criteria And Conditions Performance Targets The concepts and tools indicated in the WOG Reengineering Manual may be used in reengineering efforts and may refer to the submitted Initial Reengineering Plan to ARTA as the basis in prioritizing areas for improvement. The result of the implemented reengineering plan shall be reported through Modified Form A (Annex 2 of IATF MC No. 2022-1). Objectively verifiable evidence of achievements in ease of doing business/ease of transaction must be reported in Annex 2. The report should highlight the tangible improvements from the viewpoint of the transacting public/client in terms of access, turnaround time, transaction costs, documentary and other requirements. Proof or evidence may be any of the following: a. ISO- Quality Management System (QMS) certification or equivalent certification, which covers the selected critical external and internal services. The ISO-QMS certification or equivalent certification of critical external and internal services of the agency must be valid as of 31 December 2022. The certificate must indicate the scope of certification. It is reminded that agencies must pursue continued certification, i.e., ensure that there is no gap or minimal gap in terms of the expiration of its previous certification and the effectivity date of its existing certification, except with justifiable reasons, e.g., change of certification body which may cause a gap in the certification. For specific details on the validation of ISO QMS certification submitted as evidence or requirement, and the list of the acceptable ISO QMS and equivalent certifications, please refer to Annex 3 of IATF MC No. 2022-1 Guidelines on the Validation of ISOQMS Certification/Recertification. b. Most current and updated Citizen’s Charter, reflecting the agency’s improved and streamlined/re-engineered system and procedure for all its government services to citizens, businesses, and government agencies as prescribed by ARTA. c. Report on the digitization initiatives or digital transformation of external and internal services through the development of electronic or online and/or paperless application systems, payment systems, new service delivery channels, contactless transactions, and other process improvements using information technology. Criteria And Conditions Performance Targets The report should highlight the tangible results of digitization in terms of ease of doing business or ease of transaction from the point of view of the transacting public/client. d. Standard operating procedures, manual or documentation of service delivery standards for frontline and non-frontline services of the agency, including those implemented at the Regional, Satellite, and Extension Offices. The report should highlight the tangible results of standardization of the frontline and non-frontline services in assuring ease of transaction and doing business with the agency. Financial Results Attainment of the FY 2022 Disbursements Budget Utilization Rate (BURs) Targets under Financial Results reflect final payments made from the agency’s annual budget allotment to realize their committed programs and projects based on the valid appropriations for FY 2022. Hence for FY 2022, agencies shall accomplish the Disbursements BUR. Disbursements BUR is measured by the ratio of total disbursements (cash and non-cash, excluding Personnel Services (PS) to the total obligations for Maintenance and Other Operating Expenses (MOOE) and Capital Outlay (CO) made in 2022, net of goods and services obligated by December 31, 2021, but paid only in 2022. The total obligations for MOOE and CO shall refer to those made from the current appropriations under the FY 2022 GAA and the continuing appropriations under FY 2021 GAA, respectively. The objective is to measure the disbursements for the obligations of MOOE and CO made in 2022 from all valid appropriations. Transfers to other agencies shall not be considered as disbursements until such time such transferred funds have been actually utilized for payment, inspection and acceptance of goods delivered and services rendered. Hence: Total Disbursements (cash and non-cash, excluding PS), net of payments made in 2022 for past years’ obligations Disbursements BUR = ————————————————– Total Obligations Same as the Performance Results, the submission of the quarterly BFARs through the DBM-URS must be ensured in a Criteria And Conditions Performance Targets timely manner within thirty (30) days after the end of each quarter. The submitted FY 2022 Financial Accountability Reports (FAR) No. 1 Statement of Appropriations, Allotments, Obligations, Disbursements, and Balances (SAAODB) shall be the basis in determining the FY 2022 BUR accomplishment. Citizen/Client Satisfaction Results Accomplish and submit reports on the Citizen/Client Satisfaction Survey (CCSS), and resolve all reported complaints from Hotline #8888 and Contact Center ng Bayan (CCB) For evidence on the citizen/client satisfaction results, the results of the CCSS shall be reported using Annex 5 of IATF MC No. 2022-1. Said report should follow the prescribed requirements and rating scale as stated in Annex 5. The report should include a description of the methods and rating scale used in determining the FY 2022 Overall Satisfaction Score for its services. The overall agency rating shall be reported in the service quality dimensions and overall agency citizen/client satisfaction score for the reported services. Resolution and compliance to reported complaints from Hotline #8888 and Contact Center ng Bayan (CCB). The resolution of all complaints and grievances shall be reported to Hotline #8888 and CCB, and their compliance to the 72-hour prescribed period to take actions on complaints as provided in EO No. 6, s. 2016. Reported complaints and grievances shall cover government service and procedures of the agencies, acts of red tape, corruption, and/or other interferences to public service delivery by any government agency, individuals, or instrumentalities. Criteria And Conditions Performance Targets To provide evidence on this, a report may be submitted summarizing the Hotline #8888 and CCB complaints received in FY 2022 and their status if resolved or pending. The validation shall be complemented with reports and collected data on feedback and complaints from citizens/clients gathered by the Office of the President, Presidential Management Staff, Civil Service Commission, and Presidential Communications Operations Office from Hotline #8888 and CCB databases, as well as the Freedom of Information (FOI) portals. To determine the resolution and compliance rates to Hotline #8888 and CCB complaints, agencies may refer to item IV of Annex 5 or with the definitions provided in Section 2.4.2c of MC No. 2021-2. For FY 2022, the Good Governance Conditions (GGCs) shall no longer be required in determining the overall PBB eligibility of the agency. Nonetheless, compliance with these conditions shall be used as the basis in determining the eligibility of responsible units and individuals. To sustain the institutionalization of compliance to existing government-mandated laws and standards, the Bureau and BIR Performance Management Team (PMT) shall continue to implement, monitor, and enforce compliance with the following GGCs: a. Maintain/Update the Transparency Seal b. Compliance to Audit Findings and Liquidation of Cash Advances c. Compliance with the Freedom of Information (FOI) Program d. Submission and Review of Statement of Assets, Liabilities, and Net Worth (SALN) e. PhilGEPS posting of all invitations to bids and awarded contracts (Annex 7 of IATFMC No. 2022-1) f. FY 2022 Non-Common Use Supplies and Equipment (APP-non CSE) g. Posting of Indicative FY 2023 APP-non CSE h. FY 2023 Annual Procurement Plan–Common Use Supplies and Equipment (APP-CSE) (Annex 8 of IATF-MC No. 2022-1) i. Results of FY 2021 Agency Procurement Compliance and Performance Indicators (APCPI) System j. Undertaking of Early Procurement Activities covering 2023 Procurement Projects k. Designation of the Agency’s Committee on Anti-Red Tape (CART) l. Compliance with the National Competition Policy (NCP) – not applicable to BIR The Bureau’s accomplishments for each of the Criteria shall be rated using a scale of one (1) to five (5), where 5 is the highest. Each criterion shall have an assigned weight, as shown below: CRITERIA AND CONDITIONS Weight Performance Rating 1 2 3 4 5 Performance Results 5 5 pts. 10 pts 15 pts 20 pts 25 pts Process Results 5 5 pts. 10 pts 15 pts 20 pts 25 pts Financial Results 5 5 pts. 10 pts 15 pts 20 pts 25 pts Citizen / Client Satisfaction Results 5 5 pts. 10 pts 15 pts 20 pts 25 pts TOTAL SCORE Maximum = 100 points The maximum score that may be obtained by the Bureau is one hundred (100) points. To be eligible for the FY 2022 PBB, the Bureau must attain a total score of at least seventy (70) points. The following BIR Offices are identified as Delivery Units (DUs), in accordance with the provision in Annex 1.9 p.4 of the IATF-MC No. 2022-1 which prescribed the “Master List of Departments, Agencies, and State Universities and Colleges”: • Office of the Commissioner (including the Office of the Deputy Heads and immediate staff and Performance Evaluation Division) • Revenue Services • Revenue Data Centers • Revenue Regional Offices (Revenue Regions) The Delivery Units (DUs) of eligible agencies shall no longer be ranked. However, the unit(s) most responsible for deficiencies shall be isolated. In case the Bureau fails to meet a rating of 4 in at least three (3) criteria, the delivery unit/s most responsible (including its head) for the criteria with a performance rating of below 4 shall be isolated from the grant of the FY 2022 PBB. The unit/s most responsible (including its head) for the non-compliance with the Agency Accountabilities provided in Section IV.2 and 3 of the Order will also be isolated from the grant of the FY 2022 PBB. Eligible DUs shall be granted FY 2022 PBB at uniform rates across the Agency, including its officials and employees. The corresponding rates of the PBB shall be based on the Bureau’s achieved total score as shown below: TOTAL SCORE PBB RATES 100 Points 65% (100% of the 65% monthly basic salary) 95 Points 61.75% (95% of the 65% monthly basic salary) 90 Points 58.5% (90% of the 65% monthly basic salary) 85 Points 55.25% (85% of the 65% monthly basic salary) 80 Points 52% TOTAL SCORE PBB RATES (80% of the 65% monthly basic salary) 75 Points 48.75% (75% of the 65% monthly basic salary) 70 Points 45.5% (70% of the 65% monthly basic salary) The four (4) dimensions of Accountability shall be assessed and scored as follows: CRITERIA AND CONDITIONS RATING 1 2 3 4 5 Performance Results Met less than 80% of performance indicators of the Congressapproved performance targets for FY 2022: deficiencies due to controllable factors Met less than 80% of performance indicators of the Congressapproved performance targets for FY 2022: deficiencies due to uncontrollable factors Met at least 80% of performance indicators of the Congressapproved performance targets for FY 2022: deficiencies due to controllable factors Met at least 80% of performance indicators of the Congressapproved performance targets for FY 2022: deficiencies due to uncontrollable factors Met each one of the Congress – approved performance targets for FY 2022 (all performance indicators) Process Results No substantial improvement in ease of transaction in both external core and internal services Achieved substantial improvements to ease transaction in internal services Achieved substantial improvements to ease transaction in external services only Achieved substantial improvements to ease transaction in external but non-priority core service and internal service Achieved substantial improvements to ease transaction in priority core service (external) and internal service Financial Results 1-19% Disbursements BUR 20-39% Disbursements BUR 40-59% Disbursements BUR 60-79% Disbursements BUR 80-100% Disbursements BUR Citizen / Client Satisfaction Survey (CCSS) Results No submission/ Did not conduct CCSS Average satisfaction rate with unresolved complaints and at least 30% compliance rate to #8888 and CCB More than average rate with unresolved complaints and at least 50% compliance rate to #8888 and CCB High satisfaction rate with 100% complaints resolved and at least 80% compliance rate to #8888 and CCB High satisfaction rate with 100% complaints resolved and compliance rate to #8888 and CCB The guidelines and procedures on the reporting of Performance Results, Process Results, Financial Results and Citizen/Client Satisfaction Results, including compliance with the Agency Accountabilities and Good Governance Conditions by the concerned BIR offices, are specified in the Order. A Department/Agency/GOCC/LWD/LGU, which, after due process by the Oversight Agency, has been determined to have committed a prohibited act shall be disqualified from the PBB in the succeeding year of its implementation. The Civil Service Commission or Office of the Ombudsman shall file the appropriate administrative case for misrepresentation in the submitted/posted reports and requirements for the PBB, a commission of fraud in the payment of PBB and violation of the provisions of the IATF-MC No. 2022-1.