NATIONAL TAX RESEARCH CENTER Operations Manual

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NATIONAL TAX RESEARCH CENTER

Operations Manual

Conforms to ISO 9001:2015

March 8, 2018

© 2018; All rights reserved. Document is uncontrolled unless otherwise marked; uncontrolled documents

are not subject to update notification.


Revision History and Approval

Revision Nature of Changes Approval Date

3 Third Revision Executive Director

Trinidad A. Rodriguez March 8, 2018

2 Second Revision Executive Director

Trinidad A. Rodriguez January 22, 2018

1 First Revision Executive Director

Trinidad A. Rodriguez October 30, 2017

0 Original Release Executive Director

Trinidad A. Rodriguez December 19, 2016

OPERATIONS MANUAL Revision History and Approval

Code: NTRC-QMS-OM-04

Revision No.: 3 Effectivity Date: 8 March 2018 Page:

Prepared by:

TERESITA L. SOLOMON Deputy Executive Director

Approved by:

TRINIDAD A. RODRIGUEZ Executive Director


Table of Contents

Foreword ………………………………………………………………………………………….... i

List of Acronyms and Abbreviations …………………………………………………...………….. ii

Brief History of the NTRC ………..….……………………………………………….……..…….. vi

Mandate ……………………………………………………………………………..……………... vi

Mission ……………………………………………………………………………..……………… vii

Quality Policy ……………………………………………………………………………………... vii

Organizational Structure …………………………………………………………………………... 1

Involvement in Inter-Agency Activities …………………………………………………………... 13

Tax Information and Dissemination Activities ……………………………………………………. 14

Work Instructions

Planning and Coordinating Branch

NTRC Planning Process ………………………………………………………………………...… 15

NTRC Tax Research Studies Process …………………………………………………………...… 17

NTRC Comments on House and Senate Bills Process …………………………………………..... 20

NTRC Tax Research Journal Publication Process ……………………………………………….... 23

Annual Report and Guide to Philippine Taxes Publication Process ………………………………. 26

Tax Information Dissemination Process …………………………………………………………... 29

Seminar and Training Process ……………………………………………………………………... 31

Technical Branches

Research (Tax Studies/ Comments on Tax Bills) Process ……………………………………….... 33

Design and Conduct of Surveys Process ...………………………………………………………… 36

Corrections of Errors in Studies Process …………………………………………………………... 40

Dropping of Studies in the Annual Work Program Process ……………………………………….. 43

Fiscal Incentives Branch (Fiscal Incentives Review Board Secretariat)

Tax Subsidy Evaluation Process …………………………………………………………………... 46

Technical Assistance on Tax Subsidy Process ……………………………………………………. 54

FIRB Meeting Process …………………………………………………………………………….. 57

Special Research and Technical Services Branch (Task Force on Fees and Charges Secretariat)

Technical Assistance on Fees Process …………………………………………………………….. 59

AFB – Accounting Division

Disbursement Voucher Process …………………………………………………………………… 62

Remittance to the Bureau of Internal Revenue Process …………………………………………… 68

Remittance of Premiums and Loans to Regulatory Agencies Process ……………………………. 71

Remittance to the Bureau of the Treasury…... ……………………………………………………. 73

Preparation of Financial Statements Process ……………………………………………………… 76

AFB – Administrative Division

Procurement of Supplies, Materials and Equipment Process …………………….……………….. 84

Quality Control of Procured Goods and Services Process ………………………………………... 89

Issuance of Office Supplies Process ………………………………………………………………. 91

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Inventory of Properties and Office Supplies Process ……………………………………………... 93

Petty Cash Fund Management Process ……………………………………………………………. 96

Repair and Maintenance Management Process …………………………………………………… 99

Transmittal of Documents Process ………………………………………………………………... 102

AFB – Budget and Cash Division

Collection Process ……………………………………………………………………………….... 104

Preparation of Checks / Authority to Debit Account Process …………………………………….. 106

AFB – HR Division

Recruitment, Selection and Placement Process …………………………………………………… 108

Learning and Development Process ……………………………………………………………..... 112

Performance Ratings Process ……………………………………………………………………... 119

Payroll Process …………………………………………………………………………………..... 121

Submission of Agency Remittance Advice to the GSIS Process ………………………………..... 124

CSC Report Process ……………………………………………………………………………..... 126

CESB Report Process ……………………………………………………………………………... 128

AFB – IT Unit

Website Administration Process ………………………………………………………………….. 130

GovMail Account Management Process ………………………………………………………..... 136

Troubleshooting Management Process ………………………………………………………….... 139

Email Dissemination Process ……………………………………………………………………... 141

AFB – Library

Library Process …………………………………………………………………………………… 143

AFB – Medical and Dental Unit

Dental Services Process …………………….…………………………………………………….. 145

Issuance of Medicine Process …………………………………………………………………….. 147

Record Management Improvement Committee

Control of Documents …………………………………………………………………………….. 149

Control of Records ………………………………….…………………………………………….. 153

Internal Quality Audit

Internal Quality Audit Procedure ...……………………………………………………………….. 157

Control of Nonconforming Products/Services Procedure .….…………………………………….. 160

Corrective Action Procedure ………………………………………………………………...……. 163

OPERATIONS MANUAL Table of Contents



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Foreword

This Manual is prepared in compliance with the requirements of the Inter-Agency Task Force on the

Harmonization of National Government Performance Monitoring, Information and Reporting Systems and

the Quality Management System.

The Manual covers a brief history of the National Tax Research Center (NTRC); Mandate;

Organizational Structure; Functions and Duties; Involvement in Inter-Agency Task Forces and Other

Activities; Control and Supervision and the Work Flow/Process of the NTRC.

Since the institutionalization of tax research in the Philippines in 1960, the NTRC [formerly the Joint

Legislative Executive Tax Commission (JLETC)] has gone a long way and has been in the forefront of fiscal

policy reform making. The NTRC spearheaded and made substantive progress in activities in relation to its mandate, namely, conducting basic studies and researches in taxation; providing technical support to the

policy makers and legislators on fiscal policy matters; recommending revenue enhancing measures to help

finance government expenditures; helping local government units (LGUs) use their revenue raising powers

effectively and strengthen their finances; providing secretariat assistance (technical and administrative) to

technical committees and task forces; and undertaking tax information and awareness taxpayers’ programs.

With this Manual, the role played by a tax research institution such as the National Tax Research

Center in the overall economic development cannot be undermined and has been proven vital in the domestic

and global developments which have changed the Philippines’ political, economic and social landscapes.

TRINIDAD A. RODRIGUEZ

Executive Director

OPERATIONS MANUAL Foreword


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30 October 2017

8 March 2018


List of Acronyms and Abbreviations

AC Abstract of Canvass

AAO Agency Authorized Officer

AD Accounting Division

ADA Advice of Debit Account

AFB Administrative and Financial Branch

AGDB Authorized Government Depository Bank

AJE Adjusting Journal Entries

AO` Administrative Order

AO` Administrative Officer

APR Agency Procurement Request

ARA Agency Remittance Advice

BAC Bids and Awards Committee

BDC Branch Document Controller

BIR Bureau of Internal Revenue

BOC Bureau of Customs

BOI Board of Investments

BTr Bureau of Treasury

CAD Chief Administrative Division

CAO Chief Administrative Officer

CDJ Cash Disbursement Journal

CES Career Executive Service

CES Certificates of Entitlement to Subsidy

CI Charge Invoice

CkADADRec Checks and ADA Disbursement Record

CkDJ Check Disbursement Journal

COA Commission on Audit

CRJ Cash Receipts Journal

CRRec Cash Receipts Record

CSC Civil Service Commission

CSC-FO Civil Service Commission- Field Office

DBCC Development Budget Coordination Committee

DBM Department of Budget and Management

DO Document Originator

DOF Department of Finance

DR Delivery Receipt

DS Deposit Slips

DTB Direct Taxes Branch

DV Disbursement Voucher

EB Economics Branch

ECOZONE Economic Zone

ECRPV Executive Committee on Real Property Valuation

eFPS Electronic Filing and Payment System

eMDS Electronic Modified Disbursement System

EO Executive Order

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ETB Executive Technical Board

FIB Fiscal Incentives Branch

FIRB Fiscal Incentives Review Board

FSACS Functional Subject- Alphabetic Classification System

GAD Gender And Development

GAS Government Accountancy Sector

GF General Fund

GJ General Journal

GOCC Government-Owned and -Controlled Corporation

GovMail Government-wide Email System

GSIS Government Service Insurance System

HB House Bill

HRD Human Resource Department

HRO Human Resource Officer

IAR Inspection and Acceptance Report

IIRUP Inventory and Inspection Report of Unserviceable Property

IP Index of Payments

IPAs Investment Promotion Agencies

IPCR Individual Performance and Commitment Review

IQA Internal Quality Audit

IR Invoice Receipt

IS Inventory System

ISO International Organization for Standardization

ITB Indirect Taxes Branch

JEV Journal Entry Voucher

JLETC Joint Legislative Executive Tax Commission

LDDAP List of Due and Demandable Accounts Payable

LFB Local Finance Branch

LGUs Local Government Units

LTO Land Transportation Office

MSB` Merit Selection Board

NCA Notice of Cash Allocation

NEDA National Economic and Development Authority

NGAs National Government Agencies

NOD Notice of Delivery

NORSA Notice of Obligation Request and Adjustment

NTRC National Tax Research Center

OED Office of the Executive Director

OP Order of Payment

OR Official Receipt

ORS Obligation Request and Status

Pag-IBIG Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno

PC Property Custodian

PCB Planning and Coordinating Branch

PCF Petty Cash Fund



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PCV Petty Cash Voucher

PDC Personnel Development Committee

PDS Personal Data Sheet

PEZA Philippine Economic Zone Authority

PHIC Philippine Health Insurance Corporation

PhilGEPS Philippine Government Electronic Procurement System

PO Purchase Order

PR Purchase Request

QMR Quality Management Representative

QMS Quality Management System

QRROR Quarterly Report of Revenue and Other Receipts

RA Report on Accession

RA Republic Act

RADAI Report of Advice to Debit account Issued

RAI Report on Appointment Issued

RANCA Registry of Allotments and Notice of Cash Allocation

RANTA Registry of Allocation and Notice of Transfer of Allocation

RAOD Registry of Allotments, Obligations and Disbursements

RCD Report of Collections and Deposits

RCDisb Report of Cash Disbursement

RCI Report of Checks Issued

RCPI Report on the Count of Inventory

RFI Request for Inspection

RIS Requisition and Issue Slip

RMO Repair and Maintenance Officer

RO Records Officer

RPCPPE Report on Physical Count on Property, Plant and Equipment

RS Report on Separation

SARO Special Allotment Release Order

SB Senate Bill

SCBAA Statement of Comparison of Budget and Actual Amount

SCF Statement of Cash Flows

SCNA/E Statement of Changes in Net Assets/ Equity

SD Supporting Document

SDO Special Disbursing Officer

SFP Statement of Financial Position

SFPer Statement of Financial Performance

SI Sales Invoice

SL Subsidiary Ledger

SO Service Order

SPMS Strategic Performance Management System

SRTSB Special Research and Technical Services Branch

SSS Social Security System

SUCs State Universities and Colleges



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TCF Transmittal Control Form

TCRPV Technical Committee on Real Property Valuation

TESDA Technical Education and Skills Development Authority

TIN Taxpayer Identification Number

TRA Tax remittance Advice

TSB Tax Statistics Branch

TWG Technical Working Group

VAT Value-Added Tax

WP Work Program



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Brief History of the NTRC

Tax research in the Philippines was institutionalized with the enactment of Republic Act (RA) No.

2211 (May 15, 1959) creating the Joint Legislative Executive Tax Commission (JLETC). Providing technical support to the Commission Proper was a Technical Staff which was formally organized on April 1,

1960.

When martial law was declared in 1972, the commission proper of the JLETC was dissolved. Recognizing, however, the vital role of a tax research institution in the overall economic development thrust

of the New Society, then President Ferdinand E. Marcos through the recommendation of the Presidential

Reorganization Committee, decreed the conversion of the JLETC’s Technical Staff to the National Tax

Research Center (NTRC). On December 6, 1972, by virtue of Presidential Decree 74, the NTRC was

organized as a purely single-headed agency under the administrative supervision of the National Economic

and Development Authority (NEDA).

More than a decade after, in another wave of government reorganization brought by the ascendancy

of Ms. Corazon Aquino to the presidency in 1986, the NTRC was made an attached agency of the Department

of Finance (DOF) by virtue of Executive Order (EO) No. 127 (January 30, 1987).

Mandate

Pursuant to PD 74, the NTRC is mandated to conduct continuing research in taxation to improve the tax system and raise the level of tax consciousness among our people to achieve a faster rate of economic

growth and to bring about more equitable distribution of wealth and income.

Specifically, the NTRC performs the following functions:

1. Conducts research on taxation for the purpose of improving the tax system and tax policy;

2. Provides comments/position papers on revenue proposals coming from Congress and other

government offices and the private sector;

3. Recommends such reforms and revisions as may be necessary to improve revenue collection

and tax administration;

4. Provides technical assistance to Congress and the DOF pertaining to taxation through studies, revenue estimates of tax proposals, and drafting of bills, among others;

5. Publishes and sends tax guides and tax information materials to officials of the executive and legislative branches of government as well as the private sector;

6. Serves as Secretariat to the Fiscal Incentives Review Board (FIRB) which acts upon application for tax subsidy of government-owned and/or -controlled corporations (GOCCs)

and commissaries;

7. Serves as Secretariat to the Task Force on the Revision of Fees and Charges which provides technical assistance and monitors the revision of fees imposed by national government

agencies (NGAs); and

OPERATIONS MANUAL Brief History of the NTRC and Mandate


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8. Serves as Consultant to the Executive and Technical Committees on Real Property Valuation

of the BIR on the revision of zonal values for tax purposes.

Mission

We are the government institution dedicated to promoting a tax system that will ensure a fair distribution of the tax burden among the Filipino taxpayers.

We are committed to recommend necessary improvements in the tax system by conducting continuing

quality research on taxation and to provide responsive staff support to fiscal policy makers.

We are also committed to provide opportunities for professional growth and to promote the well-

being of our personnel.

Quality Policy

The NTRC is a leading tax research agency that conducts continuing quality research on taxation and

other fiscal-related matters. The NTRC is committed to improve the tax system and raise the level of tax

consciousness among the Filipino people.

To achieve this, we shall endeavor to:

Provide timely, relevant, quality studies and responsive technical assistance on taxation and other fiscal matters to fiscal policy makers;

Publish and disseminate timely and relevant tax journals, guides, brochures and other tax information materials;

Adhere to the highest standards of professionalism through continuous competency enhancement

and employee empowerment;

Provide our personnel with a working environment that is conducive to achieving our commitments and harnessing their fullest potential;

Use appropriate technology for information systems and processes; and

Continually improve the effectiveness of the NTRC QMS.

OPERATIONS MANUAL Mission and Quality Policy


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Organizational Structure

The NTRC is headed by an Executive Director assisted by a Deputy Director. The Office of the Director exercises supervision and control over nine branches, as follows: Planning and Coordinating Branch,

Administrative and Financial Branch, Direct Taxes Branch, Indirect Taxes Branch, Fiscal Incentives Branch,

Special Research and Technical Services Branch, Local Finance Branch, Economics Branch, and Tax Statistics Branch.

OFFICE OF THE DIRECTOR

1. Formulates, adopts and promulgates rules and regulations to carry out the principles and

objectives of the NTRC;

2. Recommends to and assists the DOF, the Congress of the Philippines and other government

offices on matters pertaining to the Center’s areas of specialization;

3. Disseminates information on the work of the Center, and the background and the rationale of tax

policies and the recommendations adopted by the government;

4. Exercises general supervision and control over the branches of the Center; and

5. Performs such other operations as may be provided by law.

PLANNING AND COORDINATING BRANCH

1. Formulates, jointly with the technical branches, the NTRC annual work program and assists in

the formulation of the annual tax program;

2. Evaluates periodically the performance of the office against the planned targets and output and

makes the necessary recommendations thereon;

3. Assists in the development of plans and program objectives relative to management improvement

in the NTRC;

4. Coordinates the activities of the technical branches and takes charge of the implementation of the

NTRC Management Information System;

5. Participates in the review of technical studies;

6. Takes charge of the publication and the distribution of the NTRC Annual Report, NTRC Tax Research Journal, Short Guide to Philippine Taxes, NTRC Flyers and other NTRC publications

and tax information materials;

7. Maintains liaison with Congress;

8. Assists in the preparation of the annual NTRC budget particularly in the setting of work targets;

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9. Acts as data bank for the MIS and monitors, processes and forwards relevant information to the directors and branches concerned;

10. Provides administrative support to inter-agency committees for which the NTRC acts as Secretariat or is an active member/participant;

11. Initiates and conducts programs and projects in connection with the NTRC’s tax education function;

12. Initiates and/or participates in, whenever called for, activities designed to improve the level of tax consciousness of the Filipino people;

13. Renders technical assistance and advice to the other branches and units of the office as well as to other interested parties outside NTRC, both government and private; and

14. Performs such as other functions as may be assigned to it.

ADMINISTRATIVE AND FINANCIAL BRANCH

To carry out its function, the Administrative and Financial Branch is divided into four divisions,

namely: Administrative Division, Personnel Division, Budget and Cash Division, and Accounting Division;

and two sections, namely: Library Section and Medical and Dental Clinic Section.

1. ADMINISTRATIVE DIVISION

The Administrative Division’s general function is to plan, direct and supervise general services relating to supply and utilization, rental of building and maintenance and repairs of office

equipment and furniture which are necessary for the internal operation of the office. It has five

sections under it, namely: Records Section, Maintenance Section, Property Section, Reproduction Section and Motor Pool.

RECORDS SECTION

a. Prepares Travel Orders, Special Orders and other administrative issuances;

b. Prepares certified copies of records upon request;

c. Acts as the central receiving and releasing unit of all communications; and

d. Performs messengerial services for the office.

MAINTENANCE SECTION

a. Performs maintenance and repair jobs in the office by providing janitorial, carpentry, equipment and security guard services;

b. Prepares Service Orders for repairs of office equipment and furniture;




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c. Oversees the proper utilization and use of property, building, equipment and motor

vehicles of the office; and

d. Prepares and processes contracts and payments of office rentals, electric/water/ Internet/telephone bills, copier, cooler and computer.

PROPERTY SECTION

a. Determines the equipment and supply needs of the office and prepares the office annual

equipment and supply program;

b. Purchases the needed supplies and equipment, keeps them in custody for safekeeping and

issues the same from time to time pursuant to approved requisitions; and

c. Maintains a record of and conducts annual inventories of all accountable properties.

REPRODUCTION SECTION

a. Provides copying, duplicating and mimeographing services; and

b. Takes charge of the binding of publications.

MOTORPOOL

a. Maintains good condition of office staff cars; and

b. Prepares and reports oil/gasoline consumption.

2. PERSONNEL DIVISION

The Personnel Division’s general function is to assist and advise the Director in the

development and execution of policies relating to personnel management in accordance with Civil

Service rules and regulations. It has two sections under it, namely: Personnel Section and Training Section.

PERSONNEL SECTION

a. Implements the Director’s policies and decisions regarding personnel action such as

recruitment, promotions and transfers;

b. Undertakes a comprehensive and balanced personnel program designed to raise the level

of competence, efficiency, effectiveness and morale of personnel;

c. Advises the Director on matters involving employee relations and morale;

d. Assists in the development and formulation of performance standards and evaluation;

e. Advises employees and supervisors on problems involving human relations including personnel discipline and behavior;




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f. Informs employees of their rights and obligations arising from their employment and

provides personnel services in the area of employee benefits such as GSIS, workmen’s

compensation, retirement and provident benefits;

g. Keeps personnel records of employees including earned vacation and sick leave benefits;

and

h. Prepares disbursement payrolls and vouchers for personnel services and in that

connection, updates the Salary Schedule Cards of all employees.

TRAINING SECTION

a. Assists in staff training and development;

b. Assists in the planning and execution of personnel training programs; and

c. Takes charge of the recreational activities and other related activities of the NTRC personnel.

3. ACCOUNTING DIVISION

The Accounting Division’s general function is to maintain records and accounts of public

funds and property and to advise management on the status of appropriations and allotments and

other financial matters. It is also responsible for the checking of vouchers and other documents to see to it that disbursement of funds is in accordance with existing budgeting, accounting and

auditing rules and regulations. The Division is divided into two sections, namely: Disbursements

Section and Bookkeeping Section.

DISBURSEMENTS SECTION

a. Processes vouchers, payrolls, purchase orders, service orders and other requisitions;

b. Certifies to the availability of funds before incurrence of obligations and examines their

legality, accuracy of computations and proper account classifications;

c. Reviews periodic reports of collecting and disbursing officers;

d. Prepares remittances of collections to the GSIS, PAG-IBIG Fund, BIR and private entities;

e. Prepares vouchers to liquidate cash advances and to reimburse requests for refunds on payroll deductions; and

f. Prepares and issues the annual withholding tax on compensation per individual employee

(Form W-2) pursuant to BIR requirements.




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BOOKEEPING SECTION

a. Maintains basic accounting records and books of accounts to reflect accurately the

financial transactions of the office;

b. Maintains subsidiary records pertaining to payroll deductions and remittances thereof;

c. Maintains subsidiary records of accounts receivables, accounts payables, prepayments and cash advances and the updated list/inventory of supplies and equipment;

d. Prepares reports and other financial statements required by the management, by COA, DBM, DOF, Senate, Congress and other government and related agencies;

e. Reconciles monthly check issuances per books vis-a-vis bank statements;

f. Monitors monthly obligations incurred and balances of allotments/cash allocations

(NCA) to validate requests for additional releases from DBM; and

g. Advises management on the status of appropriation and allotments and other financial

matters.

4. BUDGET AND CASH DIVISION

The Budget and Cash Division’s general function is to estimate the cost of the required

financing of the proposed program of the office and this includes the preparation, examination

and consolidation of budget requests and justifications; the establishment of budgeting statements; and the reporting of budget statements and programmed accomplishments. The Division also

plans, directs and supervises cash collection, disbursement and cash custody. It has two sections

under it, namely: Budget Section and Cash Section.

BUDGET SECTION

a. Plans and coordinates the annual budget preparation to include the estimation of the cost

required to finance the proposed program/activities of the office; preparation of the analysis and justifications to support the budget proposal; and provides technical

assistance to management during budget hearings;

b. Prepares special budgets as the need for them arises;

c. Prepares and controls requests of allotments in accordance with the approved financial and work plan;

d. Prepares and controls the Notice of Cash Allocation Ceiling; and

e. Prepares the budgetary reports and keeps and safeguards budgetary records.




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CASH SECTION

a. Keeps custody of cash and other accountable forms of the Section;

b. Collects and remits all collections;

c. Keeps control of the Cash Disbursement Ceiling and the cash books for all disbursements;

d. Prepares the daily reports of and keeps the record books for checks issued and cancelled

and for all cash receipts;

e. Prepares the bi-monthly report of disbursement for personnel services and sundry

expenses; and

f. Prepares Monthly Reports on Disbursements for Personal Services (01), Maintenance and

Operating Expenditures (02), Capital Outlay (03) and Special Projects (Trust Fund).

5. LIBRARY DIVISION

a. Takes charge of the selection, acquisition, cataloguing, classification, indexing and

abstracting of library materials which have bearing on taxation, finance and other related

fields;

b. Conducts training on the proper use of library resources and provides reference advisory

services by giving personal assistance to library users;

c. Administers an extensive inter-library loan program and extends library service to other

institutions;

d. Acts as data bank for NTRC publications and legal documentary information; and

e. Prepares and disseminates bibliographies on topics of timely interest; abstracts of articles found in professional journals; and exhaustive indexes of entire literature on the subject of

taxation and public finance.

6. MEDICAL AND DENTAL CLINIC

a. Advises NTRC personnel on matters involving health protection;

b. Arranges and/or provides adequate health services to personnel; and

c. Sees to it that emergency cases are properly serviced.




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OPERATIONS MANUAL NTRC Organizational Structure



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Office of the Director

AFB PCB

DTB ITB FIB SRTSB LFB TSB EB


OPERATIONS MANUAL Administrative and Financial Branch

Organizational Structure Code: NTRC-QMS-OM-04


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Chief Administrative

Officer

Accounting

Division

Administrative

Division

Budget and

Cash Division HR Division IT Unit

Medical and

Dental Unit Library

Supervising

Administrative Officer


DIRECT TAXES BRANCH

1. Conducts continuing studies designed to make the provisions of the National Internal Revenue

Code and other laws pertaining to direct taxes more attuned to the needs of the economy;

2. Periodically re-examines existing tax exemption laws affecting direct taxes;

3. Conducts studies on direct taxation to make it more responsive to the requirements of economic

development;

4. Determines what surveys are necessary in the fulfillment of the above functions and participates

therein;

5. Submits to the Executive Director brief reports on current developments in the area of direct taxes

as a basis for further in-depth studies;

6. Renders technical assistance to the DOF and Congress in the area of direct taxes;

7. Renders technical assistance and advice to the other branches and units of the office as well as to other interested parties outside NTRC, both government and private, in the area of direct taxes;

and

8. Performs such other functions as may be assigned to it.

INDIRECT TAXES BRANCH

1. Conducts continuing studies designed to make the provisions of the National Internal Revenue Code and other laws pertaining to indirect taxes more attuned to the needs of the economy;

2. Periodically re-examines existing exemption laws affecting indirect taxes;

3. Conducts studies on indirect taxation to make it more responsive to the requirements of a

developing economy;


therein;

5. Submits to the Executive Director brief reports on current developments in indirect taxation as a

basis for further in-depth studies;

6. Renders technical assistance to the DOF and Congress in the area of indirect taxes;

7. Renders technical assistance and advice to the other branches and units of the office as well as to

other interested parties outside NTRC, both government and private, in the area of indirect taxes;

and



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FISCAL INCENTIVES BRANCH

1. Conducts continuing research on fiscal incentives particularly on those granted by the Board of

Investments (BOI), Philippine Economic Zone Authority (PEZA) and other investment promotion agencies (IPAs);

2. Conducts studies to improve the administration of the availment of fiscal incentives;

3. Undertakes studies on current and relevant experiences and practices of foreign countries,

particularly of Asian nations, regarding fiscal incentives and recommends the necessary changes/modifications to improve the Philippine incentive system;

4. Conducts continuing evaluation of the recipients of and/or applicants of tax subsidy to ensure that the benefits thereof accrue solely to their intended beneficiaries;

5. Renders technical assistance to the DOF and Congress in the area of fiscal incentives;


other interested parties outside NTRC, both government and private, in the area of fiscal incentives; and


TAX STATISTICS BRANCH

1. Develops, implements and maintains a system of collection, compilation and analysis of tax and other public finance statistics;

2. Develops statistical procedures, methods and techniques for estimation and forecasting of revenue effects of existing and proposed tax measures;

3. Conducts studies using statistical techniques to provide indicators of the responsiveness of various taxes to changes in the economy;

4. Designs and conducts surveys and provides the other branches and units of the office technical

assistance in the planning and programming of tax surveys;

5. Initiates and/or participates in, whenever called for, activities designed to improve the level of tax

consciousness of the Filipino people;

6. Renders technical assistance to the DOF and Congress on revenue estimates of proposals and

other related statistics; and



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SPECIAL RESEARCH AND TECHNICAL SERVICES BRANCH

1. Conducts continuing research and studies on revenue administration and customs and tariff

matters within its jurisdiction;

2. Conducts studies for a more effective enforcement of government fees and charges and other non-

tax matters not falling within the area of responsibility of other branches;

3. Renders technical assistance to the DOF and Congress in the area of revenue administration and

customs and tariff matters;


other interested parties outside NTRC, both government and private, in its area of responsibility; and


ECONOMICS BRANCH

1. Recommends tax reforms attuned to the requirements of the Philippine development plan.

2. Recommends tax policies or directions to be considered in the formulation and revision of the

national economic development plan, geared towards achieving price stability with growth, increasing employment, restructuring the industrialization pattern and sustainable development.

3. Conducts continuing studies on the development of the Philippine economy and the rest of the world to further improve tax policies.

4. Renders technical assistance to the DOF and Congress on the economics of taxation and public finance;

5. Renders technical assistance and advice to the other branches and units of the office as well as to other interested parties outside NTRC, both government and private, on the economics of taxation

and public finance; and

6. Submits to the Executive Director reports on current developments in the general area of

economics of taxation as a basis for further in-depth studies.

7. Performs such other functions and duties as may be assigned from time to time.


Code:

NTRC-QMS-OM-04 Revision No.: 3 Effectivity Date: 8 March 2018 Page: 11 of 164

Prepared by:


Approved by:



LOCAL FINANCE BRANCH

1. Conducts continuing research and studies on the Local Government Code and other existing laws

delegating to local governments certain taxing and revenue-raising powers commensurate with their respective levels of responsibility;

2. Recommends improvements in local taxation and local revenue administration;

3. Recommends improvements on the system of Internal Revenue Allotment to local governments

to make the system more equitable and responsive to the functional responsibilities of the different levels of the government;

4. Develops models of codified local revenue ordinances;


therein;

6. Submits to the Executive Director brief reports on current developments in local taxation as a

basis for further evaluation and in-depth studies;

7. Prepares responses to inquiries and provides technical assistance to local governments and other

sectors on issues and matters pertaining to local taxation and revenue generation;

8. Renders technical assistance to the DOF and Congress in the area of local finance;


other interested parties outside NTRC, both government and private, in the area of local finance;

and

10. Performs such other functions that may be assigned to




Prepared by:


Approved by:


Executive Director


As part of its technical assistance function, the NTRC serves as the technical secretariat/member of the following inter-agency groups.

1) Fiscal Incentives Review Board (FIRB)

The Fiscal Incentives Review Board (FIRB) was originally created by Presidential Decree No.

776 (August 24, 1975). It was primarily tasked with the responsibility of determining what tax

exemptions should be withdrawn, revoked or suspended.

When Executive Order (EO) No. 93 withdrew on a general basis, effective March 10, 1987, the

tax and duty exemptions of both the government and private entities, it also instituted a system of subsidy to take care of tax and duty liabilities of government entities. The administration of this

subsidy for government-owned and -controlled corporations (GOCCs) was given to the FIRB in

line with the promotion of fiscal transparency.

The NTRC renders assistance to the FIRB as its technical secretariat. As the FIRB’s Secretariat,

the NTRC undertakes the initial review/evaluation of applications of GOCCs for tax subsidy and

provides technical assistance to other entities on matters relating to tax subsidy.

2) Task Force on Fees and Charges

To uphold the judicious upgrading of the rates of fees and charges, by national government

agencies and other offices, the Task Force on Fees and Charges created under AO 255 (February

20, 1996) was reactivated by EO 218 (March 15, 2000).

As Secretariat to the Task Force on Fees and Charges, the NTRC renders technical assistance to

agencies in the review and upgrading or adjustment of their fees and charges; and monitors the

revision of fees and charges by concerned agencies pursuant to Administrative Order (AO) No. 31 (October 1, 2012) as implemented by DOF-DBM-NEDA Joint Circular No. 1-2013 (January 30,

2013).

3) Zonal Valuation of Real Properties

The NTRC, as consultant to both the BIR’s Technical Committee on Real Property Valuation

(TCRPV) and Executive Committee on Real Property Valuation (ECRPV), provides technical support in the review and determination of zonal values of real properties in the country in

connection with the property-based taxes collected by the Bureau.

4) Adhoc Committees/Task Forces/TWG

From time to time, the NTRC is also tasked to serve as lead agency, technical secretariat or member of interagency committees or task forces. Among such committees or task forces are

the: Executive Technical Board of the Development Budget Coordination Committee (DBCC);

and DOF Gender and Development Focal Points Planning System, among others.

OPERATIONS MANUAL Involvement in Inter-Agency Activities



Prepared by:


Approved by:



The NTRC publishes and sends tax guides and tax information materials to officials of the executive and legislative branches of the government as well as to the private sector to support tax information

dissemination and taxpayer awareness programs.

1. Regular

NTRC Tax Research Journal - published on a bimonthly basis, the Tax Journal contains articles on significant tax issues and tax information.

NTRC Annual Report - an annual publication containing reports on all NTRC activities and projects.

Various Statistical Tables - continuing updates on tax and other public finance statistics.

2. Special

Philippine Public Finance and Related Statistics, Manila, 2017.

Compendium of Philippine Travel Tax Laws and Issuances, NTRC, Manila, 2015.

Where Does Your Tax Money Go?, NTRC, Manila, 2015.

Guide to Philippine Taxes, Revised Edition, NTRC, Manila, 2013.

Basic Facts and Figures on Excise Taxes, NTRC, Manila, 1997-2013.

Historical Development of Philippine Taxes, Manila, 1997-2013.

Basic Facts and Figures on Value-Added Tax (VAT), NTRC, Manila, 1988-2013.

Historical Legislative Development on Percentage Taxes, 1939-2013.

Handbook on the Revision of Fees and Charges, NTRC, Manila, 2011.

Compendium of Fees and Charges Imposed by Various NGAs, Manila, 2006.

OPERATIONS MANUAL Tax Information and Dissemination Activities



Prepared by:


Approved by:



OVERVIEW

The NTRC, in the performance of its functions, formulates its Annual Work Program before the

preceding calendar year ends. The Work Program is aligned with the socio-economic goals of the government, as articulated in the existing Medium-Term Philippine Development Plan and the recent

policy pronouncements of the government.

PROCEDURES

1. Guidelines and Process

1.1 Technical Branches and the Administrative and Financial Branch conduct year-end planning and assessment.

1.2 All the branches formulate their Annual Work Program based on the results of the year-end planning and assessment.

1.3 All the branches submit their draft Annual Work Program to the Planning and

Coordinating Branch (PCB) for the approval of the Directors.

1.4 The Directors review the draft Annual Work Program and return to concerned branches

for finalization.

1.5 All Branches submit the approved Annual Work Program to the PCB for the signature of the Executive Director.

1.6 The signed Annual Work Program is returned to the PCB for monitoring and a copy is

provided to concerned branches for execution.

1.7 The Executive Staff conducts mid-year review of the Annual Work Program to assess

the progress and if necessary, to introduce changes to meet the requirements of its clients.

2. Process Outputs, Clients and Quality Requirements

No. Output Client Quality Requirements

1 NTRC Annual Work Program

NTRC Personnel Approved by the Directors

OPERATIONS MANUAL Planning and Coordinating Branch

NTRC Planning Process

Prepared by:

TERESITA L. SOLOMON OIC – Planning and Coordinating Branch

Approved by:


Executive Director



Conducts Year-End Planning

and Assessment Review

Formulates the Annual

Work Program

Executive Director and Deputy

Director Review and Approve Draft Annual Work Program

Returns to

Concerned Branches

for Corrections

Finalizes the Approved

Annual Work Program

Submits Copies of Approved

Annual Work Program

Conducts Mid-Year

Assessment/Planning of

the Annual Work Program

3. Process Flow

Executive Staff

Office of the

Executive

Director

No

Yes

Planning and

Coordinating

Branch

4. Process Inputs and Suppliers and Quality Requirements

No. Input Supplier Quality Requirements

1 Policy Pronouncements,

Medium-Term Philippine

Development Plan and Other Legislative Agenda

Office of the President

NEDA

Congress

Aligned with the socio-

economic development goals

of the government.

START

Drafts Annual Work

Program

Is Draft Annual Work

Program Approved?

Approved Annual Work

Program

END


NTRC Planning Process

Prepared by:


Approved by:


Executive Director


A

A


OVERVIEW

The NTRC Tax Research Studies are prepared based on approved Work Program (WP) which is

formulated before the preceding calendar year ends. The WP is aligned with the socio-economic development goals of the government as articulated in the existing Medium-Term Philippine

Development Plan and the recent policy pronouncements of the government.

PROCEDURES


1.1 Based on the approved branch’s WP, the technical branches prepare and submit draft

copies of tax studies to the PCB.

1.2 The PCB records the draft tax studies, and submits to the Directors for review and

approval.

1.3 The Directors review and approve the draft tax studies and return to the concerned technical branches thru the PCB to reflect the corrections/finalization.

1.4 The PCB prepares draft cover letter for the distribution of the final copy of tax studies

and forwards to the Executive Director for signature.

1.5 The PCB distributes final copies of tax studies to the concerned Technical Branches.

1.6 The PCB forwards the cover letter and final copy of tax studies to the Administrative

Division for distribution.

1.7 The Administrative Division distributes tax studies with cover letter to concerned

government agencies.



1 NTRC Tax Research

Studies

DOF, other government

agencies, Both Houses

of Congress and other stakeholders

Reviewed and approved by

the Directors.


NTRC Tax Research Studies Process

Prepared by:


Approved by:


Executive Director



3. Process Flow

Planning and

Coordinating Branch

and other Technical

Branches

Office of the

Executive Director

Administrative

Division

No

START

Records and forwards

submitted studies to the

OED

Tax Studies and related

information

Director reviews draft tax

studies for approval

Are draft studies

approved?

Yes

Returns to concerned

technical branch thru PCB

for corrections

PCB drafts cover letter to

be distributed to

DOF/Congress/Senate

Director signs cover letter

Finalized Tax Studies

and related information

Final copy of Cover Letter,

Tax Studies and related

information

Distributes Studies to

DOF/Congress/Senate

END

Concerned Branches submit

draft Tax Studies to the PCB

Distributes final copies to

concerned branches

Approved Branch WP



Prepared by:


Approved by:


Executive Director


A

A




1 Approved Branch WP PCB Reviewed and approved by the

Directors

2 Draft copy of tax research

studies

Technical Branches Reviewed by the Chief of

Branch



Prepared by:


Approved by:


Executive Director



OVERVIEW

The NTRC Comments on House and Senate Bills are the official position papers of the Center concerning

bills on taxation and other tax-related matters. Requests for comments emanate from the DOF, both Houses of Congress and other government and public entities.

PROCEDURES


1.1 The PCB receives requests for comments on bills from the DOF, both Houses of Congress, and other government agencies.

1.2 The PCB prepares assignment sheets for the signature of the Director and forwards the same to the concerned Technical Branches.

1.3 The Technical Branches prepare comments and submit to the PCB for consolidation, if

needed.

1.4 The PCB submits comments to the Executive Director and Deputy Director for review

and approval.

1.5 Executive Director and Deputy Director review and approve comments on Bills and return to the concerned technical branches for finalization.

1.6 The PCB prepares draft cover letter for the distribution of the final copy of comments

on House and Senate Bills and forwards to the Executive Director for signature.

1.7 The PCB forwards the signed cover letter and final copy of comments to the

Administrative Division for distribution.

1.8 The Administrative Division distributes comments on bills with cover letter to the

requesting government agencies.



1 NTRC Comments on

House Bills and Senate Bills

DOF, Government

Agencies, Both Houses of Congress and other

stakeholders


the Directors.


NTRC Comments on House and Senate Bills Process

Prepared by:


Approved by:


Executive Director



3. Process Flow

Planning and

Coordinating Branch

and Other Technical

Branches

Office of the

Executive Director

Administrative

Division

START

Prepares Assignment Sheet

Assignment Sheet

Assignment Sheet is

forwarded to the concerned

Technical Branch/es

Comments on

Senate/House Bills

Director reviews draft

comments for approval

Are draft comments

approved?

No

Yes

Returns comments to

concerned technical

branch thru PCB for

corrections

/finalization

PCB drafts cover letter to

be distributed to

DOF/Congress/Senate

Director signs cover letter

Finalized Comments

on House/Senate Bills

Final copy of Cover Letter

and Comments on

House/Senate Bills

Distributes Comments on bills to

DOF/Congress/Senate

END

Concerned Branch submits

Comments on SBs/HBs



Prepared by:


Approved by:


Executive Director


Receives Request for

Comments on Senate/House

Bills

A

A




1 Requests for Comments of House and Senate Bills

Congress, other government and private

entities

With accompanying bills, letters

2 Assignment Sheets Planning and

Coordinating Branch

Signed by the Executive

Director

3 Draft comments on

bills/other requests

Technical Branches Reviewed by the Chief of

Branch

4 Final copy of comments

with draft cover letter

PCB and Technical

Branches

Reviewed, approved and

signed by the Executive

Director



Prepared by:


Approved by:


Executive Director



OVERVIEW

The NTRC Tax Research Journal is prepared on a bimonthly basis. It contains articles on significant tax

issues and tax information which serve as inputs to fiscal policy makers in recommending reforms to restructure the tax system, enhance revenue collection and improve tax administration.

PROCEDURES


1.1 PCB and other technical branches submit signed studies, tax enactments and tax news digest for the NTRC Tax Research Journal.

1.2 Technician consolidates tax enactments and tax news digest.

1.3 Technician formats and lays-out draft NTRC Tax Research Journal and submits to

Branch Chief for approval.

1.4 Branch Chief reviews and approves draft NTRC Tax Research Journal and submits to the Office of the Directors for approval.

1.5 Executive Director and Deputy Director review and approve draft NTRC Tax Research

Journal and return to the PCB for finalization.

1.6 Technician finalizes and proofreads approved NTRC Tax Research Journal and submits

to Reproduction Unit for reproduction and binding.

1.7 Reproduction Unit submits the NTRC Tax Research Journal to the Library for

distribution.

1.8 The Library Unit distributes NTRC Tax Research Journals to the technical branches, different government agencies, State Colleges and Universities, and private sector.



1 NTRC Tax Research

Journal

NTRC Personnel,

Government Agencies, SUCs, and the Private

Sector

100% Accurate and

Complete.


NTRC Tax Research Journal Publication Process

Prepared by:


Approved by:


Executive Director



Consolidates Tax Enactments

and Tax News Digest

Formats and lays-out

Draft Journal

Chief reviews and

approves Draft Journal

Executive Director and Deputy Director review and

approve Draft Journal

Returns to

Concerned

Technician for

Corrections

Proofreading of the

Approved Journal

Reproduces and binds copies of

the NTRC Tax Research Journal

Distributes to technical branches

different Government Agencies,

SUCs, and Private Sector

3. Process Flow

Planning and

Coordinating Branch

Office of the

Executive Director

Reproduction Unit

Library

START

Is Draft Journal

approved?

Drafts NTRC Tax

Research Journal

Is Draft Journal

approved?

A

A

Receives Signed Study

Tax Enactments and Tax

News Digest

Finalized NTRC Tax

Research Journal

END



Prepared by:


Approved by:


Executive Director


No

Yes

No

Yes

A




1 Signed Studies, Tax

Enactments and Tax News Digest

PCB and Technical

Branches

Studies are well written and

relevant issues are discussed thoroughly.

2 Format and Lay-out of

NTRC Tax Research

Journal

PCB Format and lay-out design are

reviewed and approved by the

Directors.

3 Reproduced Materials for

the NTRC Tax Research

Journal

Reproduction Unit Clear and complete copies of

reproduced materials for the

NTRC Tax Research Journal.



Prepared by:


Approved by:


Executive Director



OVERVIEW

The NTRC Annual Report briefly presents the tax studies conducted by the NTRC, as well as the various

technical assistance rendered by the Center to the Department of Finance, both houses of Congress and different government and private entities including some international bodies. The NTRC Guide to

Philippine Taxes serves as a basic guide to Philippine taxes, fees, charges, collected by the government

both at the national and local level and tariff and customs duties and other information on fiscal

incentives, tax administration and research and statistical data on revenue collections.

PROCEDURES


1.1 PCB prepares abstract of signed studies and bills commented which serve as inputs for the preparation of the Annual Report. The technical branches also submit inputs for the

Annual Report.

1.2 Technician consolidates inputs from technical branches both for the Annual Report and for the Guide to Philippine Taxes.

1.3 Technician formats and designs the lay-out of the draft Annual Report and Guide to

Philippine Taxes and submits to the Division Chief for approval.

1.4 PCB Chief reviews and approves draft Annual Report and Guide to Philippine Taxes

and submits to the Office of the Directors for approval.

1.5 Executive Director and Deputy Director review and approve Draft Annual Report and

Guide to Philippine Taxes and return the same to the PCB.

1.6 PCB Staff finalizes and proofreads approved Annual Report and Guide to Philippine Taxes.

1.7 Administrative Officer posts quotation to PhilGeps for bidding and submits finalized

copies of Annual Report and Guide to Philippine Taxes to winning bidder for reproduction.

1.8 PCB distributes copies of Annual Report and Guide to Philippine Taxes to technical

branches, different government agencies, State Universities and Colleges, and private sector.



1 Annual Report and

Guide to Philippine

Taxes

NTRC Personnel,

Governments agencies,

SUCs, and the Private Sector

Standards specified in the

contract are adhered to.


Annual Report and Guide to Philippine Taxes Publication Process

Prepared by:


Approved by:


Executive Director



PCB Chief Reviews and

Approves Draft Annual

Report and Guide to

Philippine Taxes

Executive Director and

Deputy Director Review

and Approve Draft Annual

Report and Guide to

Philippine Taxes

Returns to

Concerned

Technician for

Corrections

Formats and designs the

lay-outs of the Draft

Annual Report and Guide

to Philippine Taxes

Finalizes and proofreads the

Approved Annual

Report and Guide to Philippine Taxes

Posting of Quotation to

PhilGeps for Bidding

and Submits Finalized

Copy of the Documents

to Winning Bidder

Produces Blueprint of

the finalized Annual

Report and Guide to

Philippine Taxes

Proofreading of

the Blueprint

Reproduction

Distribution to Technical branches,

different Government

Agencies, SUCs, and Private Sector

Consolidates Abstract of Studies, Comments on Senate and House Bills and Inputs from the different branches

3. Process Flow

Planning and

Coordinating

Branch and

Other

Technical

Branches

Office of the

Executive

Director

Property

Unit

Printing

Press



Prepared by:


Approved by:


Executive Director


START

A

A

Finalized Annual

Report and Guide

to Philippine Taxes

END

Are Draft Annual

Report and Guide

to Philippine

Taxes Approved?

Are Draft Annual

Report and Guide to

Philippine Taxes

Approved?

Inputs to Annual

Report, Abstract of

Signed Studies and Bills

Commented

Annual Report

and Guide to

Philippine Taxes

No

Yes

No

Yes

A




1 Abstract of Signed Studies and Bills and Inputs to the

Annual Report and Guide

to Philippine Taxes

Technical Branches and PCB

Reviewed and approved by the Directors

2 Format and Lay-out Design of the Annual

Report and Guide to

Philippine Taxes

PCB Reviewed and approved by the Directors

3 Quotations of Bidders for

the Printing of the Annual

Report and Guide to

Philippine Taxes

Administrative Division Winning bidder accredited

with PhilGeps

4 Blueprint of the Annual

Report and Guide to

Philippine Taxes

Printing

Press/Publishing

Company

Complete copies and carry out

standards as specified in the

contract.



Prepared by:


Approved by:


Executive Director



OVERVIEW

Tax Information Dissemination is carried out through the publication of NTRC Tax Research Journals,

Guide to Philippines Taxes, and other tax information materials which serve as valuable sources of tax information for practitioners, researchers, students and the general public. These also serve as guides for

tax administrators and policymakers in formulating necessary reforms to further improve the Philippine

tax system.

PROCEDURES


1.1 Client submits a letter of request for a copy of particular NTRC Publication and/or tax

information material.

1.2 Office of the Director receives and forwards the letter of request to the Planning and

Coordinating Branch for the preparation of requested materials.

1.3 Technician prepares the publication material/s and drafts a transmittal letter addressed

to requesting party.

1.4 Executive Director reviews and approves draft transmittal letter.

1.5 Technician finalizes the reviewed and approved draft transmittal letter and forwards the

same with the publication material/s to Administrative Division for distribution.

1.6 Administrative Division delivers the publication material/s and transmittal letter to

requesting party.



1. NTRC Publications and Other Tax

Information Material/s

Government Agencies, SUCs, and the Private

Sector

100% Accurate and Complete.

PROCEDURES AND WORK INSTRUCTIONS MANUAL Planning and Coordinating Branch

Tax Information Dissemination Process

Prepared by:


Approved by:


Executive Director



3. Process Flow

Client

Office Of The

Executive Director

Planning And

Coordinating Branch

Administrative

Division



1. Letter of Request Client Details and purpose of the

requested material/s.

2. Publication Material/s Planning and

Coordinating Branch

Complete copies of materials.

3. Transmittal Letter Planning and

Coordinating Branch


signed by the Executive

Director.

START

Letter of Request for a

Copy of NTRC Publication

Receives Request and Assigns

to PCB for Distribution of

Publication Material/s

Copy of Publication and/or

Tax Information Material/s

with Transmittal Letter

Prepares the Publication Material/s and Draft

Transmittal Letter

END

Transmittal Letter

Executive Director Reviews

and Approves Draft

Transmittal Letter

Finalizes Transmittal

Letter

Distribution of Publication

Material/s to Requesting

Party


Tax Information Dissemination Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The NTRC conducts seminars and trainings to government agencies/instrumentalities and private sector

to impart general understanding, valuable knowledge and raise the level of tax consciousness on various taxes, fees and charges, tariff and customs duties, fiscal incentives, tax administration and statistical data

on revenue collections.

PROCEDURES


1.1 Client sends letter of request/invitation letter for NTRC’s conduct of seminar on specific

topic/date.

1.2 Office of the Director receives and forwards the request/invitation letter to Planning and

Coordinating Branch for coordination with the involved parties.

1.3 Planning and Coordinating Branch coordinates with concerned branch/es.

1.4 Concerned technical branches prepare presentation materials regarding the topic.

1.5 Executive Director reviews and approves presentation materials.

1.6 NTRC Official/s or employee/s conducts seminar for the requesting party.



1. Seminar and Training Governments agencies,

SUCs, and the Private

Sector

Complete training/seminar

material/s, relevance and

applicability of information.


Seminar and Training Process

Prepared by:


Approved by:


Executive Director



3. Process Flow

Client

Office Of The Executive

Director

Planning And Coordinating

Branch

Technical Branches



1. Request/Invitation Letter Client Complete details of the topic, date, and location of the

seminar and training to be

conducted.

2. Presentation Materials Technical Branches Reviewed and approved by the

Directors

START

Invitation Letter

Receives Request and assigns to PCB for coordination with

involved Parties

Coordinates with

Concerned Branch/es

END

Executive Director reviews

and approves Presentation

Materials

Prepares Presentation

Materials

Presentation Materials

Conduct of Seminar and

Training


Seminar and Training Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The Technical Branches provide comments on House and Senate Bills and other proposals emanating

from both Houses of Congress, the DOF, and other government agencies/instrumentalities.

PROCEDURES


1.1 Designated staff of the concerned Branch receives assignment from the Planning and

Coordinating Branch (PCB) and submits the same to the Chief Tax Specialist.

1.2 Chief Tax Specialist distributes the assignment to the concerned technical staff.

1.3 Technical staff prepares the initial draft of the comments on the bill and submits the same

to the Supervising Tax Specialist.

1.4 Supervising Tax Specialist reviews the initial draft and provides comments/insights on the paper.

1.5 Technical staff revises draft and integrates comments of the Supervising Tax Specialist and submits the revised draft to the Chief Tax Specialist.

1.6 Chief Tax Specialist reviews the revised draft of the comments on bills and reflects final

corrections.

1.7 Technical staff integrates comments/inputs of the Chief Tax Specialist.

1.8 Chief Tax Specialist approves the revised draft and submits to the PCB.



1 NTRC Comments on

House Bills and Senate Bills

DOF, Government

Agencies, both Houses of Congress

and other

stakeholders


Branch Chief and Directors.

OPERATIONS MANUAL Technical Branches

Research (Tax Studies/Comments on Tax Bills) Process


Prepared by:


Approved by:



Designated staff receives the

assignment from the PCB

Chief Tax Specialist

approves the paper

The Chief Tax Specialist distributes the

assignment to the Technical staff

Technical Staff prepares initial draft

Technical Staff submits initial draft

to the Supervising Tax Specialist

for initial review

Supervising Tax Specialist reviews

initial draft and provides

comments/insights on the paper

Technical Staff revises and integrates

comments on the assignment and

submits to the Chief Tax Specialist

Chief Tax Specialist reviews draft and

provides final inputs/corrections

Technical Staff revises and integrates

comments of the Chief Tax Specialist

and submits to the Chief Tax

Specialist for approval

Chief Tax Specialist submits to the PCB

PCB forwards the paper submitted by

Technical Branch to the OED for signature

Forwards the signed paper to the PCB

PCB releases/transmits comments on bills signed

by the Director/s to the House of Congress and

other agencies (e.g. STSRO/DOF) and furnishes

Technical Branch with a copy

3. Process Flow

Technical Branches

Planning and

Coordinating Branch

Office of the Executive

Director




Prepared by:


Approved by:


START

END

Returns to the Technical Staff

for further evaluation and

integration/finalization

No

Yes

Are the drafts

in order?

A

A


4. Process Inputs, Suppliers and Quality Requirements


1

Request for Tax

Studies/Comments on bills

Congress, NGAs,

GOCCs

With accompanying letter

requests and documentary requirements


Coordinating Branch


Director

3 Draft Comments/Tax Studies on Tax Bills

Technical Branches Reviewed by the Supervising Tax Specialist

/Chief Tax Specialist

4 Final copy of Tax Studies/Comments

PCB and Technical Branches

Reviewed, approved and signed by the Executive

Director



Prepared by:


Approved by:


Executive Director



OVERVIEW

The need for conducting a survey may arise during the formulation of the NTRC Annual Work Program

which is aligned with the socio-economic goals of the government, as articulated in the existing Medium-Term Philippine Development Plan. The survey usually is part of a special project that is aimed to provide

the NTRC’s clients more evidence-based quality research.

PROCEDURES


1.1 The Tax Statistics Branch (TSB) or any of the Technical Branches propose the conduct

of a survey as part of their respective Annual Work Program.

1.2 The Directors review and approve the proposed survey as incorporated in the Annual

Work Program of the concerned branch.

1.3 Based on the approved Annual Work Program, the TSB prepares the Research Design of the approved survey with consideration of the following:

a. Issues and objectives

b. Selection of a survey/sampling frame

c. Determination of the sampling design

d. Estimation procedures

1.4 In the case where the approved survey comes from other Technical Branches, the

Executive Director assigns the TSB to provide technical assistance in the planning and programming of the approved survey.

1.5 The TSB submits the prepared draft of Research Design to the PCB for the approval of

the Directors.

1.6 The Directors review the draft Research Design and return to TSB for finalization.

1.7 The TSB submits the signed Research Design to the PCB for monitoring and provides

copies to all branches involved in the approved survey.

1.8 Based on the approved Research Design, the Technical Branches reviews primary and

secondary documents and prepares draft of Survey Questionnaire and Manual of Instructions.

1.9 The Technical Branches submit the prepared draft Survey Questionnaire and Manual of Instructions to the PCB for the approval of the Directors.


Design and Conduct of Survey Process


Prepared by:


Approved by:



1.10 The Directors review the draft Questionnaire and Manual of Instructions; and return to Technical Branches for finalization.

1.11 The Technical Branches submit the signed Questionnaire and Manual of Instructions to the PCB for monitoring and provide copies to all branches involved in the approved

survey.

1.12 The Technical Branches conduct pre-testing of the Questionnaire and revises it accordingly.

1.13 The Technical Branches submit the revised Questionnaire to the PCB for the approval of the Directors.

1.14 The Directors review the revised Questionnaire and return to Technical Branches for finalization.

1.15 The Technical Branches submit the finalized Questionnaire and other pertinent

documents to the PCB for monitoring.

1.16 The Technical Branches/TSB and other concerned Technical Branches conduct trainings

for the interviewers/enumerators.

1.17 The PCB coordinates and submits required documents to the Philippine Statistics

Authority (PSA) to secure clearance for the conduct of the survey. (Please see PSA

website for Statistical Survey Review and Clearance System or SSRCS guidelines)

1.18 Upon receipt of survey clearance from the PSA, the TSB and other concerned Technical

Branches conduct the survey and collect data from the respondents.

1.19 The TSB and other designated staff of the concerned Branch tabulate the survey results

and conduct necessary data analysis.

1.20 Technical staff prepares final report of the survey.



1 Design and Conduct

of Survey

Technical Branches,

DOF, Other Government

Agencies


Branch Chief/s and Directors

2 Final Report Technical Branches, DOF, other

government agencies

Reviewed and approved by Branch Chief/s and Directors




Prepared by:


Approved by:



3. Process Flow

Tax Statistics

Branch /

Technical

Branch

Planning and

Coordinating

Branch

Office of the

Executive

Director




Prepared by:


Approved by:


START

Prepares draft of the Research

Design

END

Forwards the

draft

No

Yes

Is the

draft in order?

Returns the draft to TSB /

Technical

Branch

A

Releases the

Research Design approved by the

Director/s

A

Forwards the signed Research

Design

Receives the

approved Research

Design

Reviews primary

and secondary

documents

Prepares Survey

Questionnaire

and Manual of

Instructions

B

No

Yes

Are the documents

in order?

Returns the

documents to TSB /

Technical

Branch

B

Forwards the

documents

Forwards the

signed documents

Releases the documents signed

by the Director/s

Receives the

approved Survey

Questionnaire and Manual of

Instructions

Conducts

pre-testing

Revises the

Survey

Questionnaire

C

No

Yes

Is the revised

questionnaire

in order?

Returns the

documents to TSB /

Technical

Branch

C

Forwards the

Survey

Questionnaire

Forwards the signed Survey

Questionnaire

Releases the Survey

Questionnaire

signed by the

Director/s

Secures copy

of the survey

documents

Receives the approved

Survey

Questionnaire

Conducts

trainings

Coordinates

with Philippine

Statistics

Authority to secure

clearance

No

Yes

Is the clearance

secured?

Coordinates

with PCB

Conducts the

survey and collects data from the

respondents

Tabulates the survey results and

conducts necessary

data analysis

Prepares final

report of

the survey




1

Proposal for the

Conduct of Survey

Technical Branches Signed by the Executive

Director

2 Work Program Technical Branches Reviewed, approved and

signed by the Directors


Coordinating Branch


Director

4 Draft Research

Design

Tax Statistics

Branch

Reviewed by the

Supervising Tax Specialist/Chief Tax

Specialist

5 Final Research

Design

PCB and TSB Reviewed, approved and


6 Draft Survey

Questionnaire and

Manual of Instructions

Tax Statistics

Branch

Reviewed by the

Supervising Tax

Specialist/Chief Tax Specialist

7 Final Survey

Questionnaire and

Manual of Instructions

PCB and TSB Reviewed, approved and


8 Survey Clearance PCB and PSA Signed by the PSA Survey

Review Team (SRT)

9 Draft Report of the Survey

TSB and Other Technical Branches

Reviewed by the Supervising Tax

Specialist/Chief Tax

Specialist

10 Final copy of Survey Report/Study

PCB and Technical Branches

Reviewed, approved and signed by the Executive

Director



Prepared by:


Approved by:




OVERVIEW

Pursuant to the mandate of conducting quality studies, it is endeavored that the studies are thoroughly

reviewed by the Assistant Chief, Chief of the Branch and by the Directors of NTRC; and finally approved by the Executive Director. In the event that an error/errors are discovered, typographical error or

technical error, the same are reported as soon as possible and corrections made immediately to the copies

of studies from the Branch, PCB, Website, and Journals, where recipients are informed of the corrections

made.

PROCEDURES


1.1 Immediately report the discovered error/s to the Chief or the Assistant Chief of the Branch and have them logged in the logbook.

1.2 Inform the client of the discovered error.

1.3 Make the appropriate corrections to the study and submit to the directors for approval.

1.4 Print the corrected study and provide one copy for the Branch to replace its erroneous counterpart.

1.5 Print another set of the corrected study for the PCB to replace its erroneous counterpart.

1.6 The PCB will provide the corrected study to the client, either by faxing or by emailing

the corrected pages.

1.7 If the study is in the NTRC Website, the IT in-charge must make the necessary

corrections based on the report of the concerned Branch.



1 Research papers, published studies,

comments on bills

DOF, Congress, Government

Agencies, and other

stakeholders

Reviewed by the Assistant Chief, Chief of the Branch,

Deputy Director and

Executive Director


Corrections of Errors in Studies Process

Prepared by:


Approved by:




3. Process Flow

Technical Branches

Planning and

Coordinating Branch

Information Technology

Unit



Prepared by:


Approved by:



START

Report discovered error/s to

the chief or assistant chief

and log the correction

Inform the client of the

discovered error

Make the appropriate

corrections and submit to

the Directors for approval

Corrected Study

END

Received copy of the

Corrected Study

Distributes the corrected

copies of study to concerned

client/s

Updates the uploaded

copy in the website




1 Approved Branch WP ITB Technical staff and PCB

Reviewed and approved by the Assistant Chief, Chief of the

Branch and the Planning and

Coordinating Branch (PCB).

2 Draft or corrected paper ITB Technical staff Reviewed by the Assistant Chief and the Chief of the

Branch

3 Final copy of corrected paper (for branch, PCB,

client, and IT)

ITB Technical staff Reviewed and approved by the Assistant Chief, Chief of the

Branch and the Planning and

Coordinating Branch (PCB).



Prepared by:


Approved by:




OVERVIEW

In the performance of its functions, the Branch plans its Annual Work Program (WP) at the start of the

year according to priority and assigns the studies to the technical staff based on their position and specialization, with corresponding completion dates. The WP is revised accordingly during the Mid-Year

Assessment when the target completion dates of studies for the semester are not met for reasons of

unavailability of data or when such studies are overtaken by events (e.g. enactment of pertinent law). As

such, the Branch recommends the dropping of such studies.

PROCEDURES


1.1 Reviews the branch WP.

1.2 Determines possible reasons for non-completion, such as unavailability of data, assess

the chances that the data will be produced or gathered from concerned agencies within

the period.

1.3 If completion for delayed studies is remote, recommend dropping them and replace them

with studies that are more relevant after the quarterly assessments or earlier as the need arises.

If not, adjust the work program deadline to accommodate the delay.

1.4 Informs the PCB of the revisions made to the WP due to the action taken to the delayed

studies and provides copy of revised WP.



1 Annual Work Program

Technical staff and PCB

Reviewed and approved by the Assistant Chief, Chief of

the Branch and the Planning

and Coordinating Branch (PCB).


Dropping of Studies in the Annual Work Program Process

Prepared by:


Approved by:




3. Process Flow

Technical Branches

Planning and Coordinating

Branch (PCB)



Prepared by:


Approved by:



START

Review the Work Program

Determine the reasons for

non-completion

Copy of revised

Work Program

Drop and replace

the study

Inform the PCB of the

changes

END

Are data

available within

reasonable time?

No

Yes

Revise the Work Program

deadline

A

A




1 Approved Branch WP Technical staff and PCB Reviewed and approved by the Assistant Chief, Chief of the

Branch and the PCB.

2 Draft or delayed paper Technical staff Reviewed by the Assistant

Chief and the Chief of the

Branch

3 Draft of new Branch WP Technical staff Reviewed by the Assistant Chief and the Chief of the

Branch

4 Approved revised Branch

WP

Technical staff and PCB Reviewed and approved by the

Assistant Chief, Chief of the Branch and the PCB.



Prepared by:


Approved by:




OVERVIEW

The FIRB Secretariat is responsible for the processing and evaluation of requests for tax subsidy of

recipient-GOCCs/Commissaries. The tax subsidy process may undergo three (3) alternative modes, namely, the regular process, Joint FIRB-Technical Committee meeting and referendum depending on

exigent circumstances (urgency, time constraints, etc.). The grant of tax subsidy under the regular process

undergoes the evaluation of the Technical Committee before it is elevated to the FIRB. Decisions on the

grant of tax subsidy may also be arrived at using the Joint FIRB-Technical Committee meeting route where both members of the FIRB and its Technical Committee deliberate and decide on tax subsidy

applications. Lastly, another alternative process is the referendum process where the evaluation paper

and FIRB Resolution are passed around to FIRB members and the action is confirmed by affixing their signatures to the Resolutions. Decisions on tax subsidy applications are evidenced by FIRB Resolutions

and Certificates of Entitlement to Subsidy (CES).

PROCEDURES


1.1 The concerned FIB staff screens and receives the application letter of

GOCCs/Commissaries for tax subsidy together with its supporting documents.

In case the documents are not complete and duly executed, the Staff advises the applicant

to comply with the requirements.

1.2 The concerned FIB staff evaluates the said request and prepares an evaluation paper/study to serve as basis for FIRB’s action on tax subsidy application.

1.3 The concerned FIB staff submits to the Chief Tax Specialist the evaluation paper/study for review.

1.4 The concerned FIB staff incorporates the changes and/or corrections of the Chief on the evaluation study and submits it to the Executive Director and the Deputy Director for

approval.

1.5 Thereafter, tax subsidy applications undergo any of the following processes, as may be applicable:

a. Regular Process

a.1 The application and evaluation study by the Secretariat are elevated to the

FIRB Technical Committee for its own evaluation and recommendation.

a.2 Evaluation and recommendations of the FIRB Technical Committee are

elevated to the FIRB for its decision.

OPERATIONS MANUAL Fiscal Incentives Branch (Fiscal Incentives Review Board Secretariat)

– Tax Subsidy Evaluation Process

Prepared by:

DEBBIE F. ASISTIO-SY Chief Tax Specialist

Approved by:


Executive Director



b. Joint FIRB-Technical Committee Meeting

b.1 The application and evaluation study by the Secretariat are elevated to the

FIRB-Technical Committee for their own evaluation and decision.

c. Referendum

c.1 Referendum by the FIRB is conducted based on the evaluation paper prepared by the Secretariat.

c.2 FIRB members evaluate and approve the application by affixing their signature to the FIRB Resolution.

1.6 If the application is approved, an FIRB Resolution and a CES are prepared.

In case of denial, the applicant will be correspondingly notified in writing.

1.7 GOCC/Commissary receives FIRB Resolution and CES from the FIRB Secretariat.

1.8 GOCC/Commissary transmits/delivers the FIRB Resolution and CES to the BIR and/or

the BOC.

1.9 The BIR and/or BOC prepares Tax Compliance Certificate/Statement of Accounts

(usually on a quarterly basis)

1.10 GOCC/Commissary requests the DBM for a Special Allotment Release Order (SARO)

based on its accounts with the BIR and/or the BOC.

a. The DBM issues to the GOCC/Commissary, through the Bureau of the Treasury

(BTr), the pertinent SARO.

b. The DBM informs the BIR and/or the BOC on SARO issued by it.

c. The BTr records the release, the allotment and incurrence of obligation.

d. The amount of SARO is recorded both as income and expense of the government.



Prepared by:


Approved by:


Executive Director





1 Evaluation of

Request for Tax

Subsidy

GOCCs/Commissaries (1) Effect of subsidy on

relative price levels; (2) Relative contribution

of the Beneficiaries to

the revenue generation effort;

(3) Nature of the activity

engaged in by the

Beneficiaries; (4) Greater national

interest to be served;

(5) Magnitude and source of funding for the

system of subsidies;

(6) Number of eligible Beneficiaries and their

proportionate share in

the system of

subsidies; (7) Terms and conditions

for the availment of

subsidies, including reporting requirements;

(8) Effect of the system of

subsidies on international

agreements of the

Philippines, including

precautions such that the availment of

subsidies does not

become the basis for countervailing action;

and

(9) Such other

considerations as may be determined by the

FIRB.

2 FIRB Resolution

3 Certificate of

Entitlement to

Subsidy



Prepared by:


Approved by:


Executive Director



Files application

DBM issues SARO

Evaluates the

application upon

receipt of complete

documentation

requirements

Evaluate application

Board Members

evaluate and approve

the application

Applicant is notified

in writing of the

denial/disapproval

Designated signatories

sign the FIRB

Resolution and CES

Prepares

TCC/TSAC/Statement

of Accounts

3. Process Flow

3.1 Regular Process

GOCCs/

Commissaries

NTRC –

Fiscal

Incentives

Branch

FIRB

Technical

Committee

FIRB

Bureau of

Internal

Revenue /

Bureau of

Customs

DBM

*The FIRB handles processes only up to the issuance of the CES. The next processes are handled by the BIR/BOC, DBM and BTr.



Prepared by:


Approved by:


Executive Director


START Prepares Quarterly

Report for Taxes and

Duties Availment

(QRTDA) within 10

working days after the

end of each quarter

END

Furnishes copy

to applicant,

GOCC, RCA –

BIR/BOC/DBM* QRTDA

Is

application

approved?

No

Yes

TCC/TSAC/

Statement of

Accounts

Requests for SARO

SARO

Application with

supporting

documents


Evaluates the

application upon

receipt of complete

documentation

requirements


in writing of the

denial/disapproval

Evaluates the

application


sign the FIRB

Resolution and CES

Prepares

TCC/TSAC/Statement

of Accounts

DBM issues SARO

3.2 Alternative Process: Joint FIRB – Technical Committee Meeting

GOCCs/

Commissaries

NTRC –

Fiscal

Incentives

Branch

Joint FIRB –

Technical

Committee

Bureau of

Internal

Revenue /

Bureau of

Customs

DBM




Prepared by:


Approved by:


Executive Director


START Prepares QRTDA

within 10 working days

after the end of each

quarter

Files application

Requests for SARO

Furnishes copy

to applicant,

GOCC, RCA –

BIR/BOC/DBM*

END

Is

application

approved?

No

Yes

TCC/TSAC/

Statement of

Accounts

Application with

supporting

documents

QRTDA

SARO


Board Members

evaluate and approve

the application


in writing of the

denial/disapproval


sign the FIRB

Resolution and CES

Prepares

TCC/TSAC/Statement

of Accounts

DBM issues SARO

Evaluates the

application upon

receipt of complete

documentation

requirements

Conducts referendum

3.3 Alternative Process: Referendum

GOCCs/

Commissaries

NTRC –

Fiscal

Incentives

Branch

FIRB

Bureau of

Internal

Revenue /

Bureau of

Customs

DBM




Prepared by:


Approved by:


Executive Director


START

END

Files application

Application with

supporting

documents

Furnishes copy

to applicant,

GOCC, RCA –

BIR/BOC/DBM*

Is

application

approved?

No

Yes

TCC/TSAC/

Statement of

Accounts

Prepares QRTDA

within 10 working days

after the end of each

quarter

QRTDA

Requests for SARO

SARO



No

. Input Supplier Quality Requirements

1 Letter-request, signed by

Head of Office or any

authorized official

GOCCs/Commissari

es

Completeness and due

execution of the documents

- requirements by the GOCCs/Commissaries 2 Endorsement from the

Department/ Office to which

the applicant is attached

3 Backgrounder of the applicant (for GOCCs

applying for tax subsidy for

the first time)

4 Details of tax subsidy

requirement, by type of taxes

and duties and amount

(including Statement of Accounts/billings from the

concerned collecting agency,

if available)

5 Income tax return duly filed

with the Bureau of Internal

Revenue for GOCCs

applying for income tax subsidy

6 Detailed list of

importations/purchases and

their classification, whether these are for regular

operations or project-related

(backgrounder on the project)

7 Justifications for the

application

8 Latest annual/performance (programs/accomplishments)

report

9 Certification that items for which tax subsidy is sought

shall be used exclusively in

the pursuit of mandated

functions



Prepared by:


Approved by:


Executive Director



10 Statement under Oath of Investments and Income

therefrom

11 Financial

opinion/endorsement of the Corporate Affairs Group

(CAG) of the Department of

Finance for CAG-monitored GOCCs or Audited Financial

Statement for other GOCCs/

Commissaries

12 Other pertinent documents/information as

may be required by the FIRB



Prepared by:


Approved by:


Executive Director



OVERVIEW

The FIRB Secretariat keeps a database of FIRB matters and provides technical assistance in the form of

replies to queries, legal assistance and provision of reports to government and private entities in connection with the grant of tax subsidy for GOCCs and commissaries.

PROCEDURES


1.1 The concerned FIB staff receives verbal or written requests for technical assistance from the client.

1.2 The concerned FIB staff takes the appropriate action necessary for the client’s concern:

a. In the case of queries, the concerned FIB staff studies the matter and consults the

Chief Tax Specialist. The concerned FIB staff checks all the requisite documentary

and statutory basis. The concerned FIB staff consults the appropriate revenue collecting agency (BIR or BOC, as the case may be).

b. In the case of assistance on legal matters, the concerned FIB staff prepares a letter referring the client’s concern to appropriate office (e.g., the Legal Services Group of

the Department of Finance [DOF], Department of Budget and Management). The

concerned FIB staff advises the client that their request is being endorsed to the

appropriate office.

c. In the case of requests for reports, the concerned FIB staff updates the database,

checks and prints the report.

1.3 The Chief Tax Specialist approves the replies to the queries, referrals and generated

reports.

1.4 The Director approves and signs the replies to the queries, referrals and generated

reports.

1.5 The replies to the queries, referrals and generated reports are transmitted/delivered to the

client.


No. Output Client Quality

Requirements

1 Replies to

queries and

letters

GOCCs/Commissaries/DOF/

other government agencies,

private sectors and other

stakeholders

Reviewed and

approved by the Chief Tax Specialist and

Directors 2 Legal referral to appropriate

offices

3 Reports on Tax Subsidy


– Technical Assistance on Tax Subsidy Process

Prepared by:


Approved by:


Executive Director



The staff prepares a letter

referring the client’s

concern to appropriate

office (e.g. the Legal

Services Group of

DOF/DBM)

Advices the client that

their request are being

endorsed to the

appropriate office

Requests for technical

assistance verbally

or in writing

The staff updates the

database, checks and

prints the report

The Chief Tax Specialist

approves the generated

report and instructs for the

appropriate changes

needed, if there’s any

The concerned staff

studies the matter

and consults the

Chief Tax Specialist

Checks all the

requisite documentary

and statutory basis

Consults the appropriate

revenue collecting agency

(BIR/BOC, as the case

may be)

Prepares the draft reply

The Chief Tax Specialist

approves the replies to the

queries, referrals and

generated reports

Approves and signs the

replies to the queries,

referrals and generated

reports

Transmits the replies to

the queries, referrals and

generated reports to the

client

3. Process Flow

GOCCs/

Commissaries,

Congress/Executive

Department, UP Law

Center/ONAR,

Private

Sector/General

Public

NTRC – Fiscal

Incentives Branch

Office of the

Executive Director

START

END

No

Yes

Is the request

a query?

No

Yes

Is it a request

for assistance

on legal matter?

A

B

A B



Prepared by:


Approved by:


Executive Director




No. Input Supplier Quality

Requirements

1 Queries on tax

subsidy matters GOCCs/Commissaries

/DOF/ other

government agencies,

private sectors and

other stakeholders

Concise and logical

replies

2 Referral to concerned agencies

Appropriate office

(e.g., the Legal

Services Group of the

Department of Finance

[DOF], Department of

Budget and

Management)

Complete documentary and

statutory requirements

3 Special Allotment

Release Orders by

the DBM

Concerned

GOCCs/Commissaries

Accurate Report on

Tax Subsidy Granted



Prepared by:


Approved by:


Executive Director



OVERVIEW

The FIRB Secretariat-Fiscal Incentives Branch (FIB) is responsible for the scheduling of FIRB or Joint

FIRB-Technical Committee meetings to act on the tax subsidy applications of GOCCs and Commissaries.

PROCEDURES


1.1 The FIRB Secretariat sets or facilitates a meeting to act on applications for tax subsidy.

1.2 The FIRB acts on the application with the evaluation of the request prepared by the

Secretariat and the position of FIRB/Technical Committee members as inputs. The

action is evidenced by an FIRB Resolution or letter.

1.3 The Secretariat prepares the minutes which is then approved and attested by the FIRB

members.



1 Notice of FIRB

Meeting

FIRB/Technical

Committee Members

and Resource Persons

All members/resource

persons are duly notified

2 Conduct of

Meeting

Efficient and effective

facilitation/ conduct of

meeting

3 Minutes of the

Meeting

Minutes duly signed and

attested


– FIRB Meeting Process

Prepared by:


Approved by:


Executive Director



Sets a schedule for

the meeting

Board and Technical

Committee are

convened to evaluate

the application

FIRB Resolution and CES are issued

to applicant.

Applicant is

notified of the

denial/disapproval

in writing

Prepares the minutes

of the meeting

Approval and

attestation of the

minutes

3. Process Flow

NTRC – Fiscal

Incentives Branch

FIRB and/or

Technical

Committee


No. Input Supplier Quality

Requirements

1 Tax subsidy

application with

supporting documents

GOCCs/Commissaries Completeness and due

execution of the

documents - requirements by the

GOCCs/Commissaries

START

END

Is

application

approved?

No

Yes


– FIRB Meeting Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

As the Secretariat to the Task Force on Fees and Charges, the NTRC monitors compliance by fee

collecting National Government Agencies (NGAs) to pertinent issuances and prepares response/comments on queries/requests for technical assistance in connection with the requirements in

the imposition of new fees and/or increase in existing fees, upon request by NGAs.

PROCEDURES


1.1 SRTSB receives the request for technical assistance and checks attached

documents. If complete, informs PCB for the issuance of assignment sheet. If not

complete, advises requestor to submit necessary documents to expedite

evaluation.

1.2 Chief Tax Specialist (CTS) of SRTSB assigns Technical staff to prepare draft

evaluation/response to request for technical assistance based on the guiding

principles stated in the imposition of fees and charges and justifications

submitted.

1.2.1 CTS will set a meeting with Requestor.

1.3 Technical staff submits initial draft evaluation to Supervising Tax Specialist

(STS) for review.

1.4 STS reviews the initial draft and provides comments/insights to the paper.

1.5 Technical Staff revises and integrates comments on the assignment and submits

revised draft to the CTS for review.

1.6 CTS reviews and reflects comments on the revised draft evaluation/response.

1.7 Technical staff revises draft and integrates comments/inputs of the CTS.

1.8 CTS approves the draft evaluation/response to the query on fees and charges and

submits to the PCB for the review of the Executive and Deputy Directors.



1 Response to request

for technical

assistance on the

revision/ rationalization of fees

and charges

DOF, National

Government

Agencies, both

Houses of Congress and other

stakeholders, Task

Force on Revision of Fees and Charges


Division Chief and

Directors.

OPERATIONS MANUAL Special Research and Technical Services Branch (Task Force on

Fees and Charges Secretariat) – Technical Assistance Fees Process Process

Prepared by:

EMELITA A. TENA Chief Tax Specialist

Approved by:


Executive Director



Technical staff receives query/ request

for technical assistance and checks

attached documents

Technical staff revises paper and integrates

comments of the Chief Tax Specialist

and submits for his/her approval

Technical staff evaluates proposed imposition

of new fees and/or increase in existing fees

and drafts initial response to query or comments

on the proposed imposition/revision of fees

Technical staff submits initial draft to the

Supervising Tax Specialist for review

Supervising Tax Specialist reviews the

initial draft and provides

comments/insights to the paper

Chief Tax Specialist reviews draft and

provides final inputs/corrections

Chief Tax Specialist submits

the final draft

Releases/transmits signed evaluation paper to

requesting NGA and provides copy to SRTSB

Technical staff revises and integrates

comments of the Supervising Tax Specialist

and submits paper to Chief Tax Specialist

Forwards draft response to OED for signature

CTS will set a meeting with requestor

Meeting with the client

3. Process Flow

Special Research and

Technical Services Branch

Planning and Coordinating

Branch


Director

START

END

Are the documents

complete?

Technical staff advises client/ requesting fee

collecting agency to submit necessary

documents to expedite evaluation of the same

No

Yes



Prepared by:


Approved by:



Returns to the Technical Staff for further

evaluation and integration/finalization Are the drafts

in order?

No

Yes

Reviews the revised draft response to query

and/or comments on request for technical

assistance based on submitted

documents/justifications

A

A




1

Request for Technical

Assistance/Comments on Query regarding

fees and charges

Congress, national

government agencies, GOCCs

With accompanying letter

requests and documentary requirements

2 Assignment Sheets Planning and Coordinating

Branch

Signed by the Executive Director

3 Draft

Comments/Response on Requests for

Technical Assistance

Special Research

and Technical Services Branch

Reviewed by the

Supervising Tax Specialist/Chief Tax

Specialist

4 Final copy of

Response/Comments

PCB and Technical

Branch


signed by the Executive Director



Prepared by:


Approved by:


Executive Director



OVERVIEW

The Administrative and Financial Branch (AFB) is responsible for the processing of all Disbursement

Vouchers (DV). AFB ensures that funds are properly disbursed subject to the existence of a lawful and sufficient allotment certified as available by the Budget Officer with proper authorization and approval

by the Chief Accountant and Executive Director.

AFB also ensures that all disbursements are made with proper evidence to establish the claim and legality of the transactions in conformity with government laws, rules and regulations.

PROCEDURES


1.1 The Requesting Branch prepares the DV in accordance with the instructions in the

preparation of the DV to initiate the payment of claims. Forwards the DVs, Supporting

Documents (SDs) and Obligation Request and Status (ORS) to the Budget Division/Unit

for processing.

1.2 The Budget and Cash Division (BCD) processes the recognition of obligation as follows:

a. The BCD receives the ORS, duly signed by the Chief of the Branch, including copies

of DV/Payroll, Contract/Purchase Order (PO) and other SDs from office/personnel

concerned and verifies completeness of the documents. If complete, records the

same in the logbook maintained for the purpose and forwards the documents to the Budget Staff for processing. If incomplete, returns the documents to the Requesting

Office for completion.

b. Budget Staff receives the ORS and its SDs from the Staff concerned. Verifies

availability of allotment based on the appropriate Registry of Allotments,

Obligations and Disbursements (RAOD). If allotment is not available, returns the documents to the office/personnel concerned.

c. If allotment is available, the budget staff assigns number on the ORS based on the

Control Logbook maintained for the purpose. Records the amount obligated based on the ORS in the ‘Obligation’ column of the RAOD. Initials in Section B of the

ORS and forwards all copies of the documents to the Head of the Budget

Division/Unit for signature.

d. The Head of the Budget Unit reviews the ORS and SDs. If in order, signs the

certification in Section B of the ORS. Forwards the ORS and SDs to the Budget Staff.

e. The budget staff forwards the ORS and SDs to the Accounting Division (AD) for

processing of the claim. Retains original copy of the ORS for maintenance/monitoring of obligation status.

1.3 The AD processes the DV as follows:

a. The AD receives copies of DVs, SDs and ORS from the BCD. Checks

completeness of SDs based on the checklist. If incomplete, returns to the party

OPERATIONS MANUAL AFB – Accounting Division

Disbursement Voucher Process

Prepared by:

GRACE A. MANALO Chief, Accounting Division

Approved by:


Executive Director



concerned for compliance. If complete, stamps “Received” and indicates date

of receipt and initials on the stamped “Received” portion of the DV.

b. The AD assigns DV number and records in the logbook the DV number and date, creditor/payee, particular and amount and reviews DV for completeness and

propriety of SDs. The accounting staff retrieves Index of Payments (IP) from file

and determines if claim is in order. If with prior payment on the same claim, returns

the DV, SDs and ORS informing the requesting office/party of prior payment made. If in order, verifies ORS against DV. If the amounts in the ORS and DV are the

same, records the following in the IP: DV date and number, particulars and amount

and proceeds to Activity No. 9. For first-time claimant, prepares IP and records the name, address, employee number and/or TIN, DV date, particulars and amount.

c. The Chief Accountant signs the “Approved by” portion of the Notice of Obligation

Request and Adjustment (NORSA).

d. Accounting staff records in the logbook the return of NORSA, DV, ORS and SDs to

the BCD for correction of obligation. Initials in Box B of DV and forwards DVs, SDs, and ORS to the Head of Accounting Division/Unit/Authorized Officer for

review.

e. Chief Accountant retrieves the Registry of Allotments and Notice of Cash Allocation

(RANCA) / Registry of Allotments and Notice of Transfer of Allocation (RANTA)

from file and determines availability of Notice of Cash Allocation (NCA). If NCA

is sufficient to cover the disbursement, records in the RANCA/RANTA the DV date and number, and amount under the ‘Utilized’ column and indicates NCA balance.

Otherwise, notes that cash is not yet available and returns the DV and SDs to the

Designated Staff for safekeeping. The Chief Accountant checks the “Cash available” portion in Box B of the DV. Also reviews DV and SDs and signs Box B of DV then

forwards the documents to the Receiving/Releasing Accounting Staff.

f. Receiving/ Releasing Accounting Staff records in the logbook the release of DV,

SDs and ORS to the Office of the Executive Director (OED) as Head of Agency for

approval of the DV.

1.4 The OED receives the Disbursement Voucher and processes the approval as follows:

a. The OED staff receives DV, SDs and ORS and records in the logbook the date of

receipt then forwards the set of documents to the Executive Director for review and

approval.

b. The Executive Director then reviews DV and signs in Box C “Approved for

Payment” portion and forwards DV, ORS and SDs.

c. The OED staff records in logbook the approved DV and all SDs and forwards the

documents to the BCD.



Prepared by:


Approved by:


Executive Director



1.5 The BCD prepares the payment of disbursement as follows:

a. The BCD staff receives approved DV, ORS and SDs. Records in the logbook the

date of receipt, DV number, payee, particulars and amount and checks completeness of signatories on the DV. Prepares check or List of Due and Demandable Accounts

Payable – Advice to Debit Account (LDDAP-ADA) depending on the nature of

payment.

b. The BCD staff retrieves from file the Checks and ADA Disbursement Record

(CkADADRec) maintained per bank account and records the date, check number,

name of payee, nature of payment and amount of the DV and indicates the new balance of the NCA/bank account. Forwards check/LDDAP-ADA, DV, ORS and

SDs to the Chief of BCD for review and signature.

c. Chief of BCD verifies completeness of signature on the DV and reviews the amount

of the check/LDDAP-ADA against the DV and SDs then signs the check/LDDAP-

ADA.

d. BCD staff records in the logbook the date of submission to the OED of copies of

check/LDDAP-ADA, DV, ORS and SDs.

e. OED staff records in the logbook the date of receipt of check, DV, ORS and SDs

and forwards the set of documents to the Executive Director.

f. Executive Director countersigns the check/ADA and forwards copies of check/LDDAP-ADA, DV, ORS and SDs to the Receiving/Releasing Staff for return

to the Cashier.

g. Cashier receives check/LDDAP-ADA, DV, ORS and SDs and checks

completeness of the documents. Retrieves the CkADADRec and notes the

return of the signed and countersigned check for issued checks.

h. For checks issued, the BCD staff releases the original of check and copy of

DV to the payee. Attaches OR/Invoice issued by payee/claimant, if any on

copy of DV and requires payee/claimant to sign on Box D of the DV and the

Check Registry/Logbook. Files temporarily copies of check, copies of DV,

and copies of ORS and SDs for preparation of reports. Posts in the ‘Date

Released’ column of the CkADADRec the date of release of the check to the

claimant.

i. For LDDAP-ADA, the BCD staff files documents temporarily for the

preparation of the Summary of LDDAP-ADAs Issued and Invalidated ADA

Entries (SLIIAE) for LDDAP-ADA. Cashier Stamps “PAID” on all LDDAP-

ADA, DVs, and SDs.



Prepared by:


Approved by:


Executive Director





1 Disbursement

Voucher

COA, BIR,

Personnel

Payments are valid and

properly supported with documents as required by

COA signed by authorized

officials and payees.



Prepared by:


Approved by:


Executive Director



Preparation of check/LDDAP-

ADA

Checks completeness of ORS,

DV and SD

Reviews completeness of ORS,

DV and SD for approval

If approved, submits for

preparation of check/ADA

ED countersigns checks/ADA

3. Process Flow

Requesting

Division/Branch

Budget and

Cash Division

Accounting

Division

Office of the

Executive

Director

START

Approval of ORS by the

Division Chief

A

Preparation of Obligation

Request and Status (ORS) and

Disbursement Voucher (DV)

with Supporting Documents

(SD)

BCD Chief certifies and signs

checks/ADA

Verifies availability of allotment

Complete? A

BCD Chief certifies and signs

ORS

No

Yes

Cashier releases check to

payee/s

END

Checks completeness of ORS,

DV and SD

Processes the DV and indicates

necessary accounting entries

Certifies and signs “Approved

by” portion of DV

Complete? A

No

Yes



Prepared by:


Approved by:


Executive Director





1 Obligation Request

and Status

Requesting Division Request for budget is

necessary and claims for payment are valid with

complete supporting

documents. Certification of availability of funds signed

by Chief Accountant.



Prepared by:


Approved by:


Executive Director



OVERVIEW

Remittances to the Bureau of Internal Revenue (BIR) are made monthly/annually through Electronic Filing and Payment System (eFPS). Tax Remittance Advice (TRA) are issued upon online filing. TRA

shall be used to recognize, the constructive remittance to BIR of taxes withheld on compensation and

other income payments to creditors, and the constructive receipt of NCA for those taxes.

PROCEDURES


1.1 Remittance List Preparation

1.1.1 The Accounting Division (AD) prepares the Remittance List as follows:

a. Receives Payroll Voucher (Supplement) from the Human Resource Department (HRD).

b. Summarizes the taxes withheld from employees and on income payments to

creditors/suppliers.

c. Prepares Monthly Alphalist of Payees and Monthly Alphalist of Taxes

Withheld from Employees for monthly tax returns (BIR Forms 1601C, 1601E and 1600) and Alphabetical List of Employees/Payees from Whom

Taxes Were Withheld for annual tax returns (BIR Forms 1604CF)

d. Forwards the monthly/annual Alphalist to Chief Accountant for approval.

e. The Chief Accountant approves the Alphalist.

1.2 Remittance to the BIR

1.2.1 The AD files the appropriate BIR Forms as follows:

a. Files online the monthly BIR Forms (1601C, 1601E and 1600) through

eFPS and TRA will be issued for the successful remittance.

b. Receiving/Releasing Accounting Staff records in the logbook the release

of TRA and SDs to the Office of the Executive Director (OED) for

approval of the TRA and SDs.

1.2.2 The OED receives the TRA and SDs and processes the approval as follows:

a. The OED staff receives TRA and SDs and records in the logbook the date

of receipt then forwards the set of documents to the Executive/Deputy

Director for review and approval.


Remittance to the Bureau of Internal Revenue Process

Prepared by:


Approved by:


Executive Director



b. The Executive/Deputy Director reviews and signs the TRA and SDs.

c. The OED staff records in logbook the approved TRA and SDs and forwards the documents to the Accounting Department.

1.2.3 The AD receives the approved TRA for submission to COA and for record keeping.



1 BIR Forms (BIR

1601c, 1601E, 1600 and 1604CF)

COA, BIR,

Personnel

Electronic filing are valid

and properly supported with documents as required by

BIR and COA

3. Process Flow

Accounting Division


Director

START

Prepares Monthly and Annual Alphalist of taxes

withheld

Receives TRA and SDs

Approves of TRA and SDs

END

Remits to BIR through

eFPS of appropriate tax

returns

Receives TRA



Prepared by:


Approved by:






1 Payroll Voucher

(with supplement)

Human Resource

Department

Amounts withheld are valid

as required by appropriate regulatory government

agencies (BIR, GSIS, PHIC

and Pag-IBIG) and COA

2 Tax Remittance

Advice

BIR Amounts appeared reflect

actual remittances filed

through eFPS



Prepared by:


Approved by:


Executive Director



OVERVIEW

Remittances to regulatory government agencies are made monthly to remit premium and loan payments

withheld from employees and to recognize NTRC’s share in premium payments.

Premium payments are made to Government Service Insurance System (GSIS), Philippine Health

Insurance Corporation (PHIC) and Home Development Mutual Fund (Pag-IBIG) for both employee and

NTRC’s share. Loan payments are made to lending agencies (GSIS and Pag-IBIG) for amortizations of loans granted to the employees.

PROCEDURES


1.1 Remittance List Preparation

1.1.1 The Accounting Division (AD) prepares the Remittance List as follows:

a. Receives Payroll Voucher (Supplement) from the Human Resource

Department (HRD).

b. Summarizes the premiums and loan payments withheld from employees per

appropriate government agency (e.g., GSIS, PHIC and Pag-IBIG)

c. Prepares monthly remittance list of premium and loans.

d. Forwards the monthly remittance list of premium and loans to the Chief

Accountant for approval.

e. The Chief Accountant approves the monthly remittance list of premium and

loans.

1.2 Remittance to the GSIS, PHIC and Pag-IBIG

1.2.1 The AD files the appropriate remittance list as follows:

a. Submits the remittance list to the appropriate government agencies, (GSIS

and Pag-IBIG) and to authorized banks (PHIC) with checks issued for payment.

b. Receives OR as evidence of payment from the GSIS and Pag-IBIG premiums and loans and from the authorized bank for PHIC premiums.

c. The AD receives the OR and other SDs for submission to COA and for

record keeping.


Remittance of Premiums and Loans to Regulatory Agencies Process

Prepared by:


Approved by:






1 Remittance List

COA, GSIS, PHIC

and Pag-IBIG

Remittances are valid as

required by the regulatory

government agencies and COA

3. Process Flow

Accounting Division



1 Payroll Voucher

(with supplement)

Human Resource

Department

Amounts withheld are valid

as required by appropriate

regulatory government agencies (BIR, GSIS, PHIC

and Pag-IBIG) and COA

2 Official Receipts GSIS, PHIC and

Pag-IBIG

Amounts appeared reflect

actual remittances filed and paid

START

Prepares Monthly Remittance List of Loans

and Premiums

Remits to appropriate

regulatory government agencies (GSIS, PHIC and

Pag-IBIG)

Receives official receipt

For record keeping

END


Remittance of Premiums and Loans to Regulatory Agencies Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The process of collection of receipts and remittance to the BTr of NTRC provides assurance that all

remittances to the BTr are properly monitored and recorded.

PROCEDURES


1.1 Collecting Officer Receives cash/check from payor representing collection based on the

Order of Payment (OP) prepared by the Accounting Division/Unit.

1.2 Collecting Officer issues OR to acknowledge receipt of cash/check and records

collections in the Cash Receipts Record (CRRec).

1.3 Collecting Officer prepares Deposit Slips (DS) and deposits collections through

Authorized Government Depository Bank (AGDB) for the account of the National

Treasurer.

1.4 Based on the ORs on file and validated DSs from the AGDB, collecting officer prepares

the RCD. Initials on the RCD and forwards the same together with copy of the ORs and validated DSs to the Head of the Cash/Treasury Unit for review and signature.

1.5 Chief of BCD reviews and signs the RCD and then forwards RCD, ORs and validated

DSs to the Collecting Officer/Designated Staff for submission to the Accounting Division/Unit.

1.6 AD receives original of RCD with copy of the ORs and validated DSs from the Cash/Treasury Unit. Records receipt in the logbook maintained for the purpose and

forwards the same to the Bookkeeper for review and preparation of the JEV.

1.7 Based on the RCD, the bookkeeper prepares JEV in two copies and signs "Prepared by"

portion of the JEV. Forwards the JEV and documents to the Head of the Accounting

Unit for review and signature.

1.8 The Head of the Accounting Unit reviews and signs “Certified Correct by” portion of

the JEV. Forwards the JEV and documents to the Bookkeeper for recording in the CRJ.

1.9 The Chief Accountant prepares the Quarterly Report of Revenue and Other Receipts

(QRROR) and submits the report to the GAS, COA, the DBM and the BTr within 30

days after the end of each quarter. A separate report shall be prepared and submitted for income of the General Fund (GF) and for income and receipts of the Special Account

and Trust Fund.


Remittance to the Bureau of the Treasury Process

Prepared by:


Approved by:


Executive Director





1 Quarterly Report of

Revenue and Other Receipts

GAS, COA, and

DBM

Amount of revenues

remitted to the BTr should match the amount of

revenues reported in the

QRROR

3. Process Flow

Accounting Division

Budget and Cash

Division

Collecting Officer receives

cash/check from payor

Issues OR and records

collections in CRRec

Prepares DS and deposits

collections through AGDB

Prepares RCI based on the

ORs and validated DS

Approves RCD

START

Prepares Order of Payment

Prepares JEV

Records to CRJ

Prepares QRROR

END



Prepared by:


Approved by:


Executive Director





1 Official Receipts

issued

Cashier Actual amount appearing in

the OR issued

2 Deposit Slips Cashier Actual amount received

should correspond to the

amount deposited through AGDB

3 Report of Collections

and Deposits

Cashier Accurate schedule and

summary of collections



Prepared by:


Approved by:


Executive Director



OVERVIEW

Financial statements are structured representation of the financial position and financial performance of

NTRC. A complete set of financial statements (condensed and by fund cluster) to be submitted by an entity shall include the following: a. Statement of Financial Position (SFP); b. Statement of Financial

Performance (SFPer); c. Statement of Changes in Net Assets/Equity (SCNA/E); d. Statement of Cash

Flows (SCF); e. Statement of Comparison of Budget and Actual Amount (SCBAA); and f. Notes to

Financial Statements comprising a summary of significant accounting policies and other explanatory notes.

The objectives of general purpose financial statements are to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in

making and evaluating decisions about the allocation of resources and to demonstrate the accountability

of the entity for the resources entrusted to NTRC.

PROCEDURES


1.1 Journal Entry Voucher (JEV) Preparation

1.1.1 The Accounting Division (AD) prepares the JEV as follows:

a. Receives daily Report of Collections and Deposits (RCD); Report of Checks

Issued (RCI); Report of Advice to Debit Account Issued (RADAI) and Report of Cash Disbursements (RCDisb), with attachments, from the

Budget and Cash Division (BCD).

b. Summarizes accounting entries of financial transactions in the

Disbursement Vouchers attached to RCI, RADAI, RCDisb and Official

Receipts in RCD.

c. Prepares JEVs based on the accounting entries and necessary monthly

adjustments to be recorded in the books of accounts maintained by the AD.

d. Forwards the JEVs to Chief Accountant for approval

1.1.2 The Chief Accountant approves the JEVs.

1.1.3 The AD submits the JEVS and its attachments to COA Resident Auditor.

1.2 Recording and Posting Transactions

1.2.1 The Accounting Staff records the JEVs in the appropriate books of accounts:

a. General Journal (GJ)

b. Cash Receipts Journal (CRJ)


Preparation of Financial Statements Process

Prepared by:


Approved by:


Executive Director



c. Cash Disbursements Journal (CDJ)

d. Check Disbursements Journal (CkDJ)

e. Subsidiary Ledger (SL)

1.2.2 The Accounting staff posts the monthly summarized journal entries from the

Special Journals and GJ to the respective General Ledger (GL).

1.2.3 Posts the source/summarizing documents to the respective SLs.

1.2.4 Foots and extracts the balances of the GLs and SLs.

1.2.5 The Chief Accountant approves the Trial Balance.

1.3 Financial Statements Preparation

1.3.1 The assigned accounting staff prepares Unadjusted Trial Balance based on the balances in the GL to check the equality of debits and credits.

1.3.2 For the Pre-Closing Trial Balance, designated accounting staff prepares the following:

a. Prepares Adjusting Journal Entries (AJE) through the JEV for unrecorded

transactions and for all accounts that need to be adjusted/corrected.

b. Records the JEV in the GJ and affected SLs.

c. Posts the GJ to the GLs.

d. Foots and extracts balances of the GLs and SLs.

e. Based on the GLs, prepares Pre-Closing Trial Balance. Files temporarily the

Pre-Closing Trial Balance.

f. Forwards the Pre-Closing Trial Balance to Chief Accountant for review.

1.3.3 Chief Accountant reviews and signs the “Certified Correct” portion of the Pre-Closing Trial Balance and the supporting schedules.

1.3.4 Designated accounting staff submits the Pre-Closing Trial Balance to the Offices concerned and records submission in the logbook maintained. Accounting staff

files a copy of the Pre-Closing Trial Balance and copies of supporting schedules

for preparation of financial statements.

1.3.5 Prepares the Financial Statements such as Statement of Financial Position,

Statement of Financial Performance, Statement of Changes in Net

Assets/Equity, Cash Flow Statement and Statement of Comparison of Budget and Actual Accounts.



Prepared by:


Approved by:


Executive Director



1.3.6 Prepares the Notes to Financial Statement and schedule of individual accounts as supporting documents to the Financial Statement.

1.3.7 The Chief Accountant and the Executive Director execute the Statement of Management Responsibility for the Year End report, the Chief Administrative

Officer (CAO) signature is required by COA.

1.3.8 For the Post-Closing Trial Balance, designated accounting staff prepares the following:

a. Prepares closing journal entries through JEV and records the same in the GJ.

b. Posts the GJ in the respective GLs and SLs.

c. Foots and extracts the balances of the GLs and the SLs.

d. Based on the GLs and SLs, prepares Post-Closing Trial Balance in four

copies.

e. Reconciles the supporting schedules presented in the Notes to Financial

Statements with the amounts in the Post-Closing Trial Balance. If not reconciled, prepares the necessary corrections through JEV. Records the

JEV in the GJ. Posts the GJ in the respective GLs, and prepares the revised

Post-Closing Trial Balance.

f. Signs the “Prepared by” portion of supporting schedules and initials the

“Certified Correct by” portion of the Post-Closing Trial Balance.

g. Prepares transmittal letter and forwards the same together with the Post-

Closing Trial Balance and supporting schedules to the Chief Accountant.

1.3.9 The Chief Accountant reviews and signs “Certified Correct by” portion of the

Post-Closing Trial Balance, supporting schedules and transmittal letter, and

forwards the same to the Accounting Staff for submission.

1.3.10 The designated accounting staff submits the Post-Closing Trial Balance and

supporting schedules to the Concerned Offices. Records in the logbook the

submission to the following:

a. COA Resident Auditor

b. Government Accountancy Sector (GAS), COA

c. DBM



Prepared by:


Approved by:


Executive Director



1.3.11 The frequency of submission of Pre-Closing Trial Balance/Post-Closing Trial Balance and other reports shall be as follows:

a. Pre-Closing Trial Balance and other reports – monthly, within ten days after the end of the month to the COA Resident Auditor and DBM.

b. Yearend Pre-Closing Trial Balance/Post-Closing Trial Balance and other

reports – on or before February 14 of the following year to the COA Resident Auditor, DBM and GAS/COA.



1 Financial

Statements

COA, DBM Accurate Financial

Statements with

supporting schedules

approved by authorized

officials.



Prepared by:


Approved by:


Executive Director



3. Process Flow

3.1 Journal Entry Voucher (JEV)

Budget and Cash Division

Accounting Division

START

Submits RCD, RCI, RADAI,

and RCDisb to AD

Prepares JEVs for RCD, RCI,

RADAI, and RCDisb

Prepares JEVs for monthly

necessary accounting

adjustments

END

Approved JEVs



Prepared by:


Approved by:


Executive Director



3.2 Recording and Posting Transactions

Accounting Division

START

Records approved JEVs to

GJ, CRJ, CDJ, CkDJ, and

Subsidiary Ledgers (SL)

Posts transactions of GJ,

CRJ, CDJ, and CkDJ to

General Ledgers

Prepares Unadjusted Trial

Balance

Trial Balance

Reviews and approves

Unadjusted Trial Balance

END



Prepared by:


Approved by:


Executive Director




Financial Statements

3.3 Financial Statements Preparation

Accounting Division


Director

Financial Statements

START

Prepares unadjusted Trial

Balance

Prepares JEVs for

Adjusting Journal Entries

(AJE)

General Ledger (GL)

Prepares Pre-Closing Trial

Balance

Prepares Post-Closing Trial

Balance

Approves Financial

Statements

END



Prepared by:


Approved by:


Executive Director




No. Output Supplier Quality Requirements

1 Report of

Collections and

Deposits (RCD)

BCD

Accurate recording of

financial transactions to the

books of accounts and posting to subsidiary and

general ledgers.

2 Report of Checks

Issued (RCI)

BCD

3 Report of Advice to

Debit Account

Issued (RADAI)

BCD

4 Report of Cash

Disbursements

(RCDisb)

BCD

5 General Journal

(GJ)

AD

6 Cash Receipts

Journal (CRJ)

AD

7 Cash

Disbursements

Journal (CDJ)

AD

8 Check

Disbursements

Journal (CkDJ)

AD

9 General Ledger

(GL)

AD

10 Subsidiary Ledgers

(SL)

AD



Prepared by:


Approved by:




OVERVIEW

The Procurement of government supplies, materials and equipment is done in the most transparent and

rational way in accordance with the provisions of the Government Procurement Law, also known as Republic Act No. 9184. The Bids and Awards Committee selects the lowest calculated bid price and the

most beneficial to the agency/government.

PROCEDURES


1.1 Procurement through the DBM Online Procurement Service

a. The Administrative Officer prepares the PR and the Agency Procurement Request (APR) through the Online Procurement System.

b. The Property Officer prepares the Purchase Order (PO) or Service Order (SO)

ORS/DV and submits to the Administrative Office with attached APR/PR for review and approval.

c. The Administrative Officer endorses the APR/PO/ORS/DV to Budget and Cash Division and Accounting Division for budget allocation, funding and approval.

d. The Chief Accountant approves the DV and other supporting documents and

endorses to the CAO for review.

e. The CAO reviews the accuracy and completeness of document for approval of the

Executive Director.

f. Upon approval, the Executive Director forwards the DV/PO to the Cashier for

LDDAP payment. The Cashier attaches a copy of the approved LDDAP to the DV/PO/APR and informs the Administrative Officer for transmittal to PS-DBM.

g. The Administrative Officer prepares the Notice of Delivery, Request for Inspection,

Inspection and Acceptance Report and endorses to the Inspector/COA Resident Auditor for inspection of items.

1.2 Procurement through Other Suppliers

a. The Administrative Officer receives the approved PR and processes pursuant to RA

9184, also known as the Government Procurement Law.

b. The Property Officer prepares the Abstract of Canvass(AC)/PO/SO in accordance

with the result of the quotation posted at the PHILGEPS and NTRC website.

c. The Administrative Officer endorses the PO or SO/ORS to the Budget and Cash

Division for budget allocation and submits to Accounting Division for approval.

OPERATIONS MANUAL AFB – Administrative Division

Procurement of Supplies, Materials and Equipment Process

Prepared by:

ELIZABETH MIRIAM L. PAREDES Chief, Administrative Division

Approved by:


Executive Director



d. The Chief Accountant approves the PO and forwards to the CAO.

e. The CAO reviews and endorses the PO/SO to the Executive Director for approval.

f. Upon approval, the Executive Director forwards the PO to the Administrative

Officer and transmits a copy to the supplier.

g. The Administrative Officer prepares the Notice of Delivery, Request for Inspection, Inspection and Acceptance Report and submits to the Inspector and COA Resident

Auditor for inspection.



1 Physical count of

items/ supplies, materials and

equipment.

NTRC Personnel Items/Supplies/equipment

purchased are all in good condition and acceptable.

2 Delivery Receipt

(DR), Sales/Charge

Invoice (SI/CI)

Supplier Complete list of purchased

supplies/items with

corresponding prices as per approved PO or SO



Prepared by:


Approved by:


Executive Director


8 March 2018

30 October 2017


Prepares Purchase

Request

Prepares Notice of

Delivery/Request for

inspection/Inspection and Acceptance Report

Online processing of

Agency Procurement

Request (APR)

Prepares PO or

SO/ORS/DV

Transmits payment and

picks up purchased supplies

Processes and approves

ORS with supporting

documents

LDDAP Payment


APR/DV/PO and other

documents

Reviews the

DV/APR/PO

Final approval of

PO/APR/DV

Inspects procured items

and returns I&AR

3. Process Flows

3.1 Procurement through DBM-PS

Administrative

Division

Budget and

Cash Division

Accounting

Division

AFB Proper

Office of the

Executive

Director

Inspector and

COA Resident

Auditor

START

END

Inspection and

Acceptance Report



Prepared by:


Approved by:


Executive Director

Code: NTRC-QMS-OM-04 Revision No.: 3 Effectivity Date: Page: 86 of 164


Receives approved

Purchase Request

Informs winning supplier

of PO or SO

Posts Request to

PHILGEPS/

NTRC Website

Prepares Abstract of

Canvass/PO or SO/

ORS/Notice of Award

Accepts delivery of

supplies/items

Prepares Notice of

Delivery/Request for

Inspection/I&AR


ORS and supporting

documents

Reviews and approves PO/SO and



PO/SO and


Approves

PO/SO

Inspects delivered

supplies/items and

returns Request for

Inspection/ Inspection

and Acceptance Report

3.2 Procurement through Other Suppliers

Administrative

Division

Budget and Cash

Division

Accounting Division

AFB Proper

Office of the

Executive Director

Inspector and COA

Resident Auditor

START

Request for Inspection/

Inspection and

Acceptance Report

END



Prepared by:


Approved by:



8 March 2018

30 October 2017




1 Purchase Request Requesting Division Duly Signed and

Approved

2 Abstract of

Canvass, Purchase

Order, Request for

Inspection,

Inspection and

Acceptance Report

Administrative

Division/Property

Complete and Duly

Approved Documents


and Status and

Disbursement

Voucher

Budget and Cash

Division/Accounting

Division

Complete and Duly

Approved Documents

4 Notice of Award BAC Duly Approved

5 LDDAP/Signed

Check

Cashier Duly Signed and

Approved



Prepared by:


Approved by:


Executive Director



OVERVIEW

The Property Unit is responsible for the quality control, acceptance and inspection of deliverables. It also

prepares the necessary documents to vouch the existence and occurrence of the purchased inventory items from the DBM Online Procurement Service or through PHILGEPS registered suppliers.

PROCEDURES


1.1 The Property Custodian (PC) receives the items and signs the Delivery Receipt (DR) / Invoice Receipt (RA). Retains the original copy and returns the duplicate copy to the

supplier / Procurement Services.

1.2 The Administrative Officer (AO) prepares the Request for Inspection (RFI) / Inspection

and Acceptance Report (IAR) / Notice of Delivery (NOD) duly signed by the CAD then

forwards the copies together with the DR/IR and PO/SO to the NTRC Property Inspector

and COA Representative for inspection of deliveries.

1.3 The Inspector/COA Resident Auditor inspects and verifies items as to quantity and

conformity to specifications based on the DR and approved PO/SO. If delivery is not in conformity to the specifications, indicates notation on the IAR that the deliveries are not

in conformity to specifications and/or terms agreed under the approved PO/SO and

returns the IAR/DR/PO or SO to the Property Unit. If delivery is in order, indicates the date of inspections and checks the box for “Inspected, verified and found in order as to

quantity and specifications”, and then signs the IAR.

1.4 For deliveries not conforming to specification and/or terms of the PO/SO, the Property Custodian returns the items to the supplier and requires the latter to comply with the

agreed specifications and/or terms of the PO/SO

For deliveries in order, the Property Custodian indicates the date of acceptance, and

checks the box for “Complete as to quantity and specifications” or “Partial (specify

quantity)”, and signs the “Acceptance” portion of the IAR.

1.5 The Property Custodian stores the items delivered.



1 Goods and services

comply with agreed

specifications

NTRC Personnel Quality goods and services


Quality Control of Procured Goods and Services Process

Prepared by:


Approved by:


Executive Director



Inspector/COA Resident

Auditor inspects and

verifies items as to

quantity and conformity to

specifications based on the

approved PO/SO and DR

Property Custodian receives items and signs

the DR/IR

3. Process Flow

Administrative

Division

Inspector /

Commission on

Audit



1 Specification of

Products and

Services

Administrative

Division

Complete and duly

approved documents

Conform?

Yes

No

START

Property Custodian receives items and signs

the DR/IR

END

AO prepares RFI/IAR/NOD duly signed by CAD and forwards the documents together with

the DR/IR and PO/SO to the Inspector and COA

Resident Auditor/ representative for

inspection of deliveries

Property Custodian returns

the items to Supplier

Property Custodian stores

items delivered

IAR and NOD


Quality Control of Procured Goods and Services Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

List of available supplies of NTRC are recorded in the Property Stock Card as well as in the computerized

Inventory System for continuous monitoring of office supplies and spare parts. The Requesting Division is required to submit a duly approved Requisition and Issue Slip (RIS) to the Administrative Officer

before the issuance of requested supplies.

PROCEDURES


1.1 The Requesting Division/Branch submits accomplished RIS form to the AFB.

1.2 The Property Officer approves the RIS. The Property Unit checks the availability of

supplies in the Inventory System (IS) stock card for verification of stocks on hand. If

supplies are available, The Property Officer issues to the requesting division/branch the requested supplies. If out-of-stock, the requesting division is required to submit an

approved PR to the Accounting Division for availability of funds and duly signed by the

CAO to purchase the supplies.

1.3 The Property Officer issues the supplies on-stock and the requesting division/branch

acknowledges receipt of supplies by signing the RIS.



1 Requisition and Issue

Slip

Requesting Division Accurate listing of issued

supplies duly acknowledged

by the recipient.


Issuance of Office Supplies Process

Prepared by:


Approved by:


Executive Director



Submits duly

approved RIS form

Acknowledges receipt

of available supplies

Issues requested

supplies on-stock

Approval of RIS

Submission of

approved PR from

Branches

Approval of PR

Procurement of the

requested supplies

3. Process Flow

Requesting

Division

AFB Proper

Property Section



1 Requisition and Issue

Slip Form

Requesting Division Approved and accurate

listing of supplies requested

START

END

A

Supplies

available?

Yes

No

A


Issuance of Office Supplies Process Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

In accordance with the New Government Accounting System, the conduct of Inventory allows personnel

to monitor and update the availability of supplies and the physical status as well as the condition of properties/equipment of NTRC.

PROCEDURES


1.1 The Chief Administrative Officer (CAO) schedules and briefs the conduct of

annual inventory taking of the existing property, plant and equipment, while

semi-annually for supplies and materials.

1.2 The CAO prepares and signs the Report on Physical Count of Property, Plant and

Equipment (RPCPPE) to identify the serviceable properties/equipment and

Inventory and Inspection Report of Unserviceable Property (IIRUP) to identify

the unserviceable properties.

1.3 The Administrative Officer prepares and signs the Report on the Count of

Inventory (RCPI), to identify accurately and update the supplies and materials.

1.4 The Property Officer submits RPCPPE and IIRUP/RCPI to the Chief Accountant

to review and endorse it to the CAO.

1.5 The CAO approves the RPCPPE and IIRUP/RCPI and endorses to the Executive

Director for final approval.

1.6 Upon approval, the Property Inventory Team furnishes a copy of the reports to

the AD and COA.



1 Updated Report on Physical Count of

Property, Plant and

Equipment (RPCPPE) /Inventory

and Inspection Report

of Unserviceable Properties

(IIRUP)/Updated

Report on Physical

Count of Inventories

NTRC Personnel Accurate inventory of serviceable and

unserviceable

properties/available supplies.


Inventory of Properties and Office Supplies Process

Prepared by:


Approved by:


Executive Director



Schedules/Leads NTRC

Inventory Team

Prepares and signs reports

on RPCPPE and

IIRUP/RCPI

Submits to the Chief of

Accounting Division for

review and counter sign

Verifies the accuracy and

completeness of RPCPPE

and IIRUP/RCPI

Approves RPCPPE/IIRUP

and RCPI

Final approval of

RPCPPE/IIRUP and RCPI

3. Process Flow

Administrative

Division

Accounting Division

AFB Proper


Director

START

Approved RPCPPE and

IIRUP/RCPI

END



Prepared by:


Approved by:






1 Previous Report on Physical Count of

Property, Plant and

Equipment (RPCPPE) and

Inventory and

Inspection Report of

Unserviceable Property (IIRUP) /

Previous Report on

the Physical Count of Inventory

Property Inventory Team

Accurate inventory lists of previous serviceable and

unserviceable

properties/available supplies



Prepared by:


Approved by:


Executive Director



OVERVIEW

The Petty Cash Funds (PCF) are established for emergency purchases or expenses only. Petty cash

disbursements include office supplies and materials, minor repairs and maintenance, transportation, fuel and lubricants expenses, LTO registration of NTRC staff cars, medical and dental supplies, mailing

services and other operational needs. The Special Disbursing Officer (SDO) processes its replenishment

once the expenses reached seventy percent of the total petty cash fund.

PROCEDURES

1. Guidelines and Procedures

1.1 The SDO receives approved Purchase Request (PR) and Petty Cash Voucher and checks

the completeness of the documents.

1.2 The SDO releases the amount indicated in the Petty Cash Voucher to the designated

Buyer.

1.3 Once the amount is spent, the designated Buyer returns the Sales Invoice/Official

Receipt and if the amount spent is lower than the amount requested, the excess amount

shall be returned to the SDO.

1.4 The Inspector inspects the procured supplies/materials or the repair/work done.

1.5 The SDO receives the Sales Invoice/Official Receipt and attaches to the Petty Cash Voucher for documentation.

1.6 If the amount spent in the petty cash fund reaches at least seventy percent (70%) of the total amount, the SDO may replenishes the PCF and prepares supporting documents for

processing of ORS and DV by the BCD and AD.

1.7 The BCD processes the ORS with the supporting documents.

1.8 The AD processes the DV with supporting documents and endorses to the Chief

Administrative Officer (CAO) for review then the CAO forwards to the Deputy Director for final approval.

1.9 The Deputy Director approves the DV and submits to the Cashier for check preparation.

1.10 The SDO encashes duly approved check and stores the amount received to the Safety

Box.



1 Petty Cash Fund NTRC Designated

Buyer

Amount replenished in the

petty cash fund is equivalent

to the amount liquidated.


Petty Cash Fund Management Process

Prepared by:


Approved by:


Executive Director



Inspects procured

supplies/materials or

repair/work done

Processes DV and ORs

with supporting

documents

Preparation of Check

Processes DV and ORs

with supporting documents

Reviews DV and signs

other supporting

documents

Initials Check

Final approval of DV Signs Check

3. Process Flow

Requesting

Division/Buyer

Inspector

Administrative

Division

Budget and

Cash Division

Accounting

Division

AFB Proper

Office of the

Executive

Director

Buyer returns SIs

and/or ORs and

excess amount if any

START

Submits approved

Purchase Request and

Petty Cash Voucher

to the SDO

A

Petty Cash Voucher

Disbursement

Voucher

Releases cash

END

A Are

documents

complete?

Prepares all supporting

documents as

requirements and

attachments to

ORs and DV

Encashment of Check

Stores in safety box No

Yes

Signed Check



Prepared by:


Approved by:


Executive Director





1

Purchase Request and

Petty Cash Voucher

Requesting Division Completeness of documents

and duly approved.

2 Sales Invoices/

Official Receipts

Designated Buyer Completeness and Accuracy

based on the documents


and Status

Budget and Cash

Division

Documents are complete and

duly approved

4 Disbursement

Voucher

Accounting

Division/AFB Proper/Deputy

Director

Documents are complete and

duly approved

5 Signed Check Cashier/AFB

Proper/Deputy Director

Duly Approved



Prepared by:


Approved by:


Executive Director



OVERVIEW

The conduct of repairs and maintenance of Properties, Plant and Equipment (PPE) safeguards the stability

and efficacy of NTRC’s regular functions, avoids speedy deterioration of properties, and assures the welfare of NTRC employees.

PROCEDURES


1.1 The Special Disbursing Officer receives approved Request for Repair and Maintenance of PPE and Petty Cash Voucher.

1.2 The SDO releases the amount indicated in the Petty Cash Voucher to the designated Repair and Maintenance Officer (RMO) that acknowledges receipt of cash.

1.3 The RMO forwards the approved Request for Repair to the Repair Shop.

1.4 The RMO transmits the cash payment to the Repair Shop and then endorses to the

Inspector/COA Resident Auditor the Request for Inspection/Inspection and Acceptance

Report as well as the Waste Material Report if necessary, only if there are replaced parts.

1.5 The Inspector/COA Resident Auditor inspects the repaired equipment and submits

Inspection and Acceptance Report and Waste Material Report to the Special Disbursing

Officer.



1 Functional

Properties/Plants and

Equipment

NTRC Personnel Serviceable and Useful


Repair and Maintenance Management Process

Prepared by:


Approved by:


Executive Director



Submits approved

request for Repair and

Petty Cash Voucher to

the SDO

RMO receives cash and

forwards the equipment

to the Repair Shop

Endorses Request for

Inspection and

Acceptance Report and Waste Material Report

(if applicable)

Processes Request

Pursuant to R.A. 9184

(Government

Procurement Law)

Inspection and

Acceptance Report and

Waste Material Report

(if any)

Submits Inspection and

Acceptance Report and

Waste Material Report

(if applicable)

3. Process Flow

Repair and

Maintenance

Officer

SDO/

Administrative

Division

Inspector/

COA Resident

Auditor

START

Repaired Equipment

END



Prepared by:


Approved by:


Executive Director





1 Request for Repair,

Petty Cash Voucher and Summary of

Abstract and

Quotations

RMO Completeness of supporting

documents and duly approved.

2 Inspection and

Acceptance Report

and Waste Materials

Report, if applicable

Inspector/COA

Resident Auditor

Properly inspected and

accuracy of findings



Prepared by:


Approved by:


Executive Director



OVERVIEW

The Administrative Division is responsible for the messengerial work to various individuals, private

companies, government agencies and other entities.

PROCEDURES


1.1 Requesting Division submits approved Transmittal Control Form (TCF) to the

Administrative Officer for the delivery of items/documents.

1.2 The Messenger delivers the items/documents to the address indicated in the TCF and lets

the receiver sign the receiving copy as proof that the items/documents are delivered and

submits the receiving copy to the requesting division for filing.



1 Receiving Copy/Receipt

of Delivery

Requesting Party Accuracy of Details


Transmittal of Documents Process

Prepared by:


Approved by:


Executive Director


1


Returns the Receiving

Copy/Receipt of Delivery to

the Requesting Division

Delivers Items/Documents

3. Process Flow

Requesting

Division

Administrative

Division



1 Approved

Transmittal Control Form

Requesting Division Duly Approved/Accuracy of

Details

Receiving Copy/Receipt of

Delivery

START

Submits Approved

Transmittal Control Form

(TCF) END

Approved Transmittal

Control Form


Transmittal of Documents Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The Cashier accepts all payments coming from sale of NTRC Tax Research Journal and Order of

Payment (OP).

PROCEDURES


1.1 The Cashier facilitates receipts of payment as follows:

a. The Cashier receives cash/check from payor representing collection based on the

Order of Payment (OP) prepared by the Accounting Division.

b. Cashier issues Official Receipt (OR) in triplicate copy to acknowledge receipt of

cash/check. Original copy is given to the payor, Copy 2 to be attached to the

RCD/CRRed and Copy 3 for Cashier’s/BCD file.

c. Cashier records collections in the Cash Receipts Record (CRRec) and prepares

Deposit Slips (DSs) and lists of Deposit Collection in triplicate copy. Original Copy

is given to the AGDB, Copy 2 to be attached to the RCD/CRRed and Copy 3 for Cashier’s/BCD file.

d. BCD deposits collections through Authorized Government Depository Bank

(AGDB) for the account of the National Treasurer.

e. Based on the duplicate copies of ORs on file and validated DSs from the AGDB, the

Cashier prepares the RCD in four copies and sign the same.

f. The Cashier signs and records the RCD in the logbook maintained by the BCD and

forwards the same with the copy 2 of the ORs and validated DSs to the Accounting Division for recording in the books of accounts.

2. Process Outputs, Client and Quality Requirements


1 Official Receipts issued

Accounting Division

Amounts reflect actual cash received based on the OP

2 Deposit Slips Accounting Division

Actual amount received had

been deposited through

AGDB

3 Report of Collections

and Deposits

Accounting Division Accurate and complete

schedule and summary of

collections

OPERATIONS MANUAL AFB – Budget and Cash Division

Collection Process

Prepared by:

CECILIA V. SALVATIERRA Chief, Budget and Cash Division

Approved by:


Executive Director



3. Process Flow

Accounting Division

Budget and Cash

Division

4. Process Inputs, Supplier and Quality Requirements


1 Order of Payment Accounting Division Collections are valid and properly supported with

documents as required by

COA

START

Prepares Order of Payment

Collecting Officer receives

cash/check from payor

Issues OR and records

collections in CRRec

Prepares DS and deposits

collections through AGDB

Prepares RCI based on the

ORs and validated DS

Approves RCD

END


Collection Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The preparation of check ensures that all payments such as utilities, salaries, remittances, insurance and

other payables due are paid accordingly.

PROCEDURES


1.1 The Disbursing Officer (DO)/ADAS II prepares the check/Authority to Debit Account

(ADA) as follows:

a. Receives the approved Disbursement Voucher with supporting documents from the

Office of the Executive Director.

b. Checks the completeness of documents.

c. Prepares checks/ADA account through Electronic Modified Disbursement System

(eMDS) for approval.

d. The DO forwards the check/ADA to the Office of the Executive Director for

approval.

e. The OED staff receives DV, SDs and ORS and records in the logbook the date of

receipt then forwards the set of documents to the Executive Director for review and

approval.

f. The Executive Director then reviews checks/ADA and forwards the documents.

g. The OED staff records in logbook the approved check/ADA and forwards the

documents to the BCD.

h. For approved checks, the DO releases payment to the appropriate payee, and

prepares Report of Checks Issued (RCI).

i. For approved ADA, the DO submits the ADA to LandBank of the Philippines for processing and prepares RADAI and RCI for completed ADA.

j. The DO maintain the Disbursement Records of all payments done.



1 Signed Check NTRC Personnel, suppliers and agency

clients

Accurate and duly approved checks

2 ADA NTRC Personnel,

suppliers and agency clients

Accurate and duly approved

ADA


Preparation of Checks / Authority to Debit Account Process

Prepared by:


Approved by:


Executive Director



3. Process Flow



Director


No. Output Supplier Quality Requirements

1 Disbursement

Voucher and SDs

AD and Requesting

Division

Claims for payment are valid

and complete with complete supporting documents

START

Preparation of

check/LDDAP-ADA based

on approved DV, ORS

and supporting documents

Certifies checks/ADA

DO releases check to

payee/s

END

Countersigns checks/ADA


Preparation of Checks / Authority to Debit Account Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

As the human resource management arm of NTRC, the HR Division (HRD) determines the need for

human resource for the continued operation of the NTRC. The HRD ensures that screening of applicants is based on the qualification standards of the Civil Service Commission and all employed applicants

possess professionalism, high integrity and competency to provide quality service to the agency. All

recommendations for personnel actions and progressions are in accordance with the pertinent policies

and procedural requirements.

PROCEDURES


1.1 The HRD processes the recruitment of human resource as follows:

Publishes vacant positions at the NTRC website

Conducts initial screening of applicant based on proof of education, eligibility,

complete Personal Data Sheet and other necessary documents

Facilitates written examination

1.2 The Personnel Officer contacts qualified applicants for a panel interview.

1.3 The Merit Selection Board (MSB) interviews qualified applicants and submits

recommendation to the Executive Director for final interview and approval.

1.4 The Executive Director approves the recommendation and returns the papers to the HRD

to inform successful applicants for the submission of necessary requirements.

1.5 Prepares the appointment upon submission of complete requirements and schedules the

first day of work

1.6 Endorses the name, position title and place of assignment to the Administrative Division

for preparation of Special Order.

1.7 Enrolls the new employee in Bio-Admin and issues Office ID.

1.8 Facilitates the oath taking of the new employee and orients him/her on the Civil Service rules and regulations, office policies, leave administration and benefits of a government

employee.

1.9 Presents the new employee to each branch and unit.

1.10 Prepares and submits Report of Appointment Issued to the Civil Service Commission.

OPERATIONS MANUAL AFB – HR Division

Recruitment, Selection and Placement Process

Prepared by:

LORELLI D. VILLAFLORES Chief, Human Resource Division

Approved by:


Executive Director





1 Appointment CSC

GSIS

COA New Employee

Complete documents for

appointment



Prepared by:


Approved by:


Executive Director



Submits Letter of

Regret

Conducts initial screening and

facilitates written

examination

Contacts qualified

applicants for

interview

Prepare appointment

papers

Schedules first

day of reporting

Endorses for Special

Order

Enrolment of Bio-

Admin, issuance of

ID, oath of office, orientation, and

presentation to

branches

Prepares and

submits Report of

Appointment issued

to CSC

Processes applicant’s documents and sends

list of other required

documents

Submits application

and other credentials

Submission of

clearances

Panel interviews and

screens the applicants

Submits recommendation

for hiring

Interviews the

applicant

Submits

recommendation

for hiring

Prepares Special

Order for assignment

No

Yes

No

Yes

3. Process Flow

HR Division

Applicant

Merit

Selection

Board

Office of the

Executive

Director

Administrative

Division

Publication of vacant

position in NTRC

website

START END

A

Proof of education (TOR, diploma),

eligibility and

PDS

Letter of

Regret

NBI, Ombudsman, Medical and Neuro-

Psychological

Exam, et al

Is applicant

qualified?

A Is applicant

qualified?



Prepared by:


Approved by:


Executive Director





1 Personal Data Sheet

(PDS) and credentials

Applicant Complete recruitment

documents

2 Employment Requirements such as

clearances, medical

certificate, neuro-psychiatric result

Newly-Hired Applicant

Complete and authenticated requirements



Prepared by:


Approved by:


Executive Director



OVERVIEW

In line with the training needs of each branch, the HRD develops a career development plan to ensure

enhancement of the skills, knowledge and competence of the employees. These trainings and Learning and Development will maximize the potentials of the employees to perform their duties. The training of

the personnel includes mandatory seminars for supervisors, in-house seminars, required trainings for

technical and administrative staff provided by other agencies, professional development seminars, and

local and foreign scholarship grants.

PROCEDURES


1.1 In-House Seminar

1.1.1 The HRD issues memorandum for submission of training

recommendations/suggestions.

1.1.2 Prepares a summary of training recommendations/suggestions from branches and

schedules a meeting for the Personnel Development Committee (PDC).

1.1.3 Collates and submits recommendations of the PDC for approval of the Executive

Director.

1.1.4 HRD prepares a Career Development Plan after the approval of the Executive Director.

1.1.5 Coordinates with possible resource persons and schedules of the seminar.

1.1.6 Issues memorandum for scheduled seminar.

1.1.7 Facilitates the seminar (venue arrangement, power-point, sound system,

attendance sheet, et al.)

1.1.8 Updates the training profile of employees who attended the seminar.

1.2 Seminar to be Conducted by Other Agencies

1.2.1 Receives invitation from other agencies.

1.2.2 Recommends to the Executive Director the name of employee/s who will attend the seminar.

1.2.3 Receives the recommendation from the Executive Director and notifies the

employee/s who will attend the seminar.

1.2.4 Coordinates with the Administrative Division for preparation of Special Order.

1.2.5 Coordinates with the sponsor office with regard to the confirmation of registration

and payment of seminar fee.


Learning and Development Process

Prepared by:


Approved by:


Executive Director



1.2.6 Submits registration form and payment.

1.2.7 Upon the return of the participant from the seminar, copy of the certificate of

attendance will be submitted to the HRD.

1.2.8 The HRD updates the training profile of the employee and files the certificate in

the employee’s 201 file.

1.3 Foreign Scholarship Grant

1.3.1 The HRD receives the invitation from foreign agencies or memorandum

from the DOF.

1.3.2 Prepares memorandum for Executive Director’s approval.

1.3.3 The Executive Director approves and signs the memorandum and returns it

to the HRD.

1.3.4 HRD finalizes and disseminates the memorandum to all branches for

nomination to the scholarship.

1.3.5 If there are nomination/s, the HRD prepares nominees’ profile and

facilitates meeting of the Personnel Development Committee (PDC). If

there is no nomination, the HRD files the memorandum.

1.3.6 The PDC screens nominees and prepares recommendation for the

Executive Director.

1.3.7 Upon approval of the Executive Director, the Personnel Officer informs the

nominee and requires him/her to prepare a resume.

1.3.8 Prepares and submits endorsement letter to the DOF with required

documents. DOF interviews the nominee.

1.3.9 If approved by the DOF, HRD submits the endorsement letter to the

sponsoring agency.

1.3.10 If the nominee is accepted, HRD prepares Request for Travel Authority

to DOF.

1.3.11 Upon receipt of the Travel Authority, HRD assists the scholar in other

requirements.

1.3.12 Provides copy of Travel Authority to AD, COA, and Administrative

Division for issuance of Travel Order.

1.3.13 HRD prepares Scholarship Service Contract and furnishes copy to the

scholar, AD and COA.



Prepared by:


Approved by:


Executive Director



1.3.14 Upon the return of the scholar, he/she is required to submit photocopy

of the certificate of attendance/transcript/diploma and a Post-Training

Report within 60 days.

1.3.15 HRD updates his/her training profile, files the certificate in his/her 201

file and schedules for an echo seminar.

1.3.16 Submits report of foreign scholarship to the Office of the President.



1 Memorandum

Facilitated In-house

seminar

NTRC Officials and

Personnel

Effective In-house Seminar

2 Special Order NTRC Officials and

Personnel

Well-coordinated seminar to

other agencies and updated

Employees’ Profile

3 Travel Authority Scholarship Service

Contract

Quarterly Report of Foreign Scholarship

Foreign Scholar, Administrative

Division, COA,

Accounting Division, Budget

and Cash Division,

Office of the

President, DOF, TESDA

Timely assistance to the scholar, updated scholar’s

profile, and timely

submission of Quarterly Report



Prepared by:


Approved by:


Executive Director



Prepares Training Plan for

the year and updates

periodically Issues Memorandum for

Submission of Training

Recommendations Coordinates with possible

resource persons and

schedules of the seminar

Updates the Training Profile

of employees who attended

the seminar

Facilitates the seminar

which includes the physical

arrangement, Powerpoint

presentation, sound system,

attendance sheet, et al.

Issues Memorandum for

Scheduled Seminar

Summarizes Training

Recommendations

Prepares Recommendations

of Training

Approves Training

Recommendations

3. Process Flow

3.1 In-House Seminars

HR Division

Personnel Development

Committee


Director

START

END



Prepared by:


Approved by:


Executive Director



Submits the names of

the participants as per

recommendation of

the Executive Director

Receives invitation

Receives the

recommendation of

the Director and notifies the

employee/s on the

details of the seminar

Coordinates with the

organizer of the

seminar for the

registration and

payment of the

seminar

Submits registration

form and payments if

applicable)

Endorses the name of

the participant/s for

Travel/Special Order

Approval of

participants to the

seminar

Prepares

Travel/Special Order

3.2 Seminars to be Conducted by Other Agencies

HR Division

Office of the

Executive

Director

Administrative

Division

START

END



Prepared by:


Approved by:


Executive Director



Disseminates the

memorandum to all

concerned branches

Informs the chosen

applicant

Prepares and submits the

endorsement letter,

resume and other

required documents

to the DOF Files the

memorandum

Informs the nominee and files the

documents

Submits the

endorsement letter to

the sponsoring agency

Prepares and

submits Request for Travel Authority (TA)

to DOF

Prepares Scholarship

Service Contract

Submits copy of TA and

contract to COA, AD and

Administrative Division

Approves

Travel Order


memorandum

Approves the

recommendation

of the PDC

Screens the nominees and submits

recommendation to the

Executive Director

Prepares Travel Order

3.3 Foreign Scholarship Grant

HR Division

Office of the

Executive

Director

Personnel

Development

Committee

Administrative

Division

START

Receives invitation

letter or memorandum

from DOF

Prepares memorandum

of foreign scholarship for Executive

Director’s approval

No

Yes

Prepares nominee’s profile and facilitates a

meeting with PDC

With

nominee?

Endorsement letter,

resume and other

required documents

A

A

Approved?

Approved?

END

No

Yes

No

Yes



Prepared by:


Approved by:


Executive Director





1 Training

Recommendations Invitations

Technical Branches,

AFB, and other agencies

Required training needs for

officials and employees and updated Employees’ Profile

2 Training

Recommendations Invitation from other

agencies and

Certificate of

Attendance

Technical Branches,

AFB, and sponsoring agencies

Professional Development

Seminars and updated Employees’ Profile

3 Training

Recommendations

Invitation from Foreign

Institutions/DOF,

Certificate of

Attendance and Diploma/Transcript

of Records, and Post

Training Report

Foreign Institutions,

DOF, TESDA, and

Foreign Scholar

Competent and more

knowledgeable personnel

and updated Scholar’s Profile



Prepared by:


Approved by:


Executive Director



OVERVIEW

The HRD ensures that the personnel are aware of the relevance and importance of their roles and

responsibilities and how they will contribute to the achievement of the objectives and fulfillment of the NTRC’s mandate. The performance level of the employee will be evaluated through the use of the

Strategic Performance Management System (SPMS). This is an evaluation system for measuring the

performance of the employees of the government against the targets of the agency and identifying

opportunities for improvement.

PROCEDURES


1.1 Prepares and disseminates memorandum on the deadline of submission of Individual

Performance and Commitment Review Form (IPCR).

1.2 Upon submission, reviews the ratings and endorses the IPCR to the Executive Director

for review and approval.

1.3 Collates and prepares summary of performance ratings.

1.4 Submits the summary of performance ratings to the Executive Director.

1.5 Distributes to all branches and units the copy of the IPCR.

1.6 Files copy of the IPCR.



1 Summary List of

Performance

Ratings

Executive Director

and AO 25

Secretariat

Timely submission of

Summary Report


Performance Ratings Process

Prepared by:


Approved by:


Executive Director



Prepares

memorandum

for submission

Disseminates

the memorandum to

the branches and units

Reviews IPCR

Submits IPCR for

review and signature

Collates, prepares and submits the

Summary Report

Distributes the copy of the IPCR to the

branches and units,

and files the copy

Approval of

memorandum Approval of IPCR

Prepares and submits

Individual

Performance and

Commitment Rating

(IPCR)

3. Process Flow

HR

Division

Office of

the

Executive

Director

Branches

and Units



1 IPCR Technical Branches

and AFB

Timely and accurate IPCR

START

END


Performance Ratings Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The objective of processing of payroll is to ensure timely and accurate processing of employee’s

compensation. The HRD uses a Payroll Software which automates the payroll process. It also includes the Daily Time Record System which streamlines the computation of absences and undertimes needed

before the processing of payroll.

PROCEDURES


1.1 Verifies the daily time records to compute absences and undertimes, if any.

1.2 Updates the salary schedule card:

Deductions from loan payments (GSIS, Pag-IBIG and NECCO)

Renewal of loan (GSIS, Pag-IBIG and NECCO)

Updates of salary (promotion and step increment)

1.3 Encodes updates in the Payroll Software.

1.4 The Chief of HRD reviews and approves the payroll with corresponding supplements.

1.5 Endorses the payroll to the Budget and Cash Division for ORS and endorses it to the AD

for processing.

1.6 Endorses the payroll to the AFB for approval and endorses it to the Budget and Cash

Division for payment processing.



1 Payroll and Voucher NTRC Officials and Personnel, Budget

and Cash Division,

and Accounting

Division

Timely and accurate computation of salary


Payroll Process

Prepared by:


Approved by:


Executive Director



Prepares ORS and voucher

payment and endorses the

payroll to the Accounting

Division for processing

Processes and signs the

payroll and endorses to the

AFB

Encodes updates in the

Payroll Software System

Payment processing

Updates the salary schedule

card (loan, payments,

renewal of loan, and salary

adjustment)

Reviews and signs the



for Obligation Request and

Status (ORS)




for payment processing

3. Process Flow

HR Division

Budget and Cash

Division

Accounting Division

Chief Administrative

Officer

START

Verifies the daily time

records for the computation

of absences and undertimes

END


Payroll Process

Prepared by:


Approved by:


Executive Director





1 Daily Time Record Notice of Salary

Adjustment,

Appointment, and Loan Repayments

Daily Time Record System, HR

Division and

GSIS/Pag-IBIG/ NECCO

Updated Report of Absences/Tardiness/Undertimes


Payroll Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The submission of the Agency Remittance Advice (ARA) to the Government Service Insurance System

(GSIS) is a mandatory process of HR Division to ensure that the employee will enjoy all the privileges a GSIS member have. It is the basis to update the member’s profile to reflect all important information of

an employee.

PROCEDURES


1.1 The Agency Authorized Officer (AAO) submits to the GSIS thru Electronic Remittance

File (ERF) the following forms as the case may be:

Form A – List of employees with life and retirement premium remittance but without

existing record in the GSIS database;

Form B – List of transferees (transferred in) from other agency;

Form C- List of employees with salary adjustments for confirmation as to correct

amount of monthly salary and effectivity date;

Form D – List of employees with no premium remittance for 2 consecutive months;

and

Form E – List of employees with changes/corrections in their personal data.

1.2 The GSIS Membership Coordinator acknowledges receipt of the ARA Form and notifies the AAO for an update.

1.3 Upon the notification of an update, the AAO prints and files the notification.



1 ARA, Form A,

Form B, Form C,

Form D, and Form

E

GSIS Updated Employees’

Database in GSIS


Submission of Agency Remittance Advice to the GSIS Process

Prepared by:


Approved by:


Executive Director



Acknowledges receipt of the

ARA form

Updates the employees’

record and notifies the AAO

3. Process Flows

HR Division

GSIS Membership

Coordinator



1 Appointment

(Original,

Promotion,

Transfer, and

Reappointment)

and Notice of

Salary Adjustment

HR Division Updated and accurate

Employees’ Information

START

The Agency Authorized Officer (AAO) submits the

ARA Forms using

Electronic Remittance File

AAO prints and files the

notification

END

Form A, Form B, Form C,

Form D or Form E


Submission of Agency Remittance Advice to the GSIS Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

As governed by the Civil Service Commission (CSC), the NTRC follows the prescribed Omnibus Rules

on Appointments and Other Personnel Actions. Any action signifying the movement or progress of personnel in the agency shall be known as personnel action such as original appointment, promotion,

transfer, reinstatement, reemployment, detail, reassignment, secondment and demotion. Any

appointment submitted to the CSC for appropriate action should meet the requirements listed in the

Omnibus Rules. The CSC is tasked to monitor the number of officers and employees separated from government service. In compliance with the CSC instructions, a monthly Report of Appointment Issued,

Report on Accession, and Report on Separation are submitted to the CSC-Field Office (FO) not later that

the 15th day of the succeeding month.

PROCEDURES


1.1 The Human Resource Officer (HRO) consolidates approved appointments during the

preceding month and ensures the completeness of all the requirements based on the Appointment Processing Checklist.

1.2 The HRO prepares the Report on Appointment Issued (RAI), Report on Accession (RA), Report on Separation (RS) and a Transmittal Letter addressed to the CSC-FO. The HRO

ensures that the RAI should correspond to the RA.

1.3 The Chief of the HRD thoroughly reviews and checks the completeness of appointments and all the documents and signs the RAI, RA, RS and the transmittal letter.

1.4 The HRO forwards the RAI, RA, RS Forms, transmittal letter and its attachments to the Administrative Division for submission to the CSC-FO.



1 RAI, RA, and RS CSC Complete and timely

submission of reports


CSC Report Process

Prepared by:


Approved by:


Executive Director



3. Process Flows

HR Division



1 Appointment HR Division Complete requirements

START

Consolidates the approved

appointments

Prepares RAI, RA and RS

Reviews and approves the

RAI, RA and RS

Submits the RAI, RA and

RS to CSC-FO

END


CSC Report Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The Career Executive Service (CES) is the “third level” of the managerial class in the group of career

positions in the Philippine Civil Service. The CES positions are career positions above the Division Chief level that exercise executive and managerial functions. The CES Board is tasked to form a

continuing pool of well-selected and development-oriented career administrators who shall provide

competent and faithful service. In compliance with the CES Board Circular No. 8 s. 2005, the NTRC is

submitting updated CES Occupancy Report every end of the quarter. The HRO as the custodian of the personnel records of its respective officials specifically the Directors, monitors any vital changes or

updates regarding CES.

PROCEDURES


1.1 The HRO prepares the following Quarterly Report to CESB:

a. CES Occupancy Report

b. Report on Movements of CES Officials

c. Report on CES Officials on Official Leave of Absence

d. Report of CESOs and CES Eligible Occupying Non-CES Positions

e. Report of Officials with Pending Case

f. Report on Vacant CES Positions

g. Directory Updates

1.2 The Chief of Human Resource Division checks and signs the reports and transmittal

letter to be submitted to CES Board.

1.3 The HRO forwards all the CES Reports to the Administrative Division for

submission to the CES Board



1 CES Reports CESB Timely submission of reports


CESB Report Process

Prepared by:


Approved by:


Executive Director



3. Process Flows

HR Division



1 Updated Personnel

Record of officials

occupying Third

Level Positions

Executive Director

and Deputy

Director

Updated and accurate

record

START

Prepares the Quarterly

Report

Reviews the Quarterly

Report

Submits the Quarterly

Report to CESB

END


CESB Report Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The official website of NTRC features tax studies and the latest information and developments on

Philippine taxation that include all relevant laws and issuances affecting taxation, tax bills/proposals, Supreme Court decisions, fiscal statistics and tax news. The NTRC website also features the

Transparency Seal, which is a symbol of a policy shift towards openness in access to government

information. These dynamic contents are regularly updated by the IT Unit.

PROCEDURES


1.1 Updating of NTRC Publications / House and Senate Bills / Did You Know That? /

Banner picture / Employee’s organization

a. The Technical Branches prepare updates for NTRC Publications, Tax matters,

Banner picture and Employee’s organization. These updates are accomplished in

Website Form No. 1, which is signed and submitted for approval by the Executive Director.

b. The approved Website Form No. 1 is then forwarded to the Website Committee Chairman, who submits the form to the Website Committee (IT Unit) for posting in

the website.

c. If the update is an NTRC Publication, the IT Unit uploads it to the Website Control Panel and appropriate modifications applied on the website.

d. If the update is neither an NTRC Publication nor a House/Senate Bill, appropriate modifications will be applied in the website.

e. If the update is a House/Senate Bill, the bill’s corresponding website will be checked to get the links and the appropriate modifications will be applied on the website.

1.2 Updating of Information on the Transparency Seal

a. The AFB and Planning and Coordinating Branch (PCB) prepares updates for the

information on the Transparency Seal. These updates are accomplished in Website

Form No. 2 together with the relevant documents, which is signed and submitted for approval by the Deputy Director.

b. The approved Website Form No. 2 is then forwarded to the Website Committee Chairman, who submits the form to the Website Committee (IT Unit) for posting in

the website.

c. The updates along with the scanned attachments will be uploaded by the IT Unit to the Website Control Panel and the appropriate modifications will be applied in the

website.

OPERATIONS MANUAL AFB – IT Unit

Website Administration Process

Prepared by:

ABRAHAM P. SOLOMON Computer Maintenance Technologist III

Approved by:


Executive Director



1.3 Updating of Relevant Tax Information, Tax News and Issuances

a. The Technical Branches prepare updates for Relevant Tax Information, Tax News

and Issuances. These updates are accomplished in Website Form No. 3, which is signed and submitted for approval by the Chief of the PCB.

b. The approved Website Form No. 3 is then forwarded to the Website Committee

Chairman, who submits the form to the Website Committee (IT Unit) for posting in the website.

c. The IT Unit checks if the list of information is available online and if not, informs the Website Committee Chairman regarding the absence of the link. This process is

repeatedly performed until the suitable link is established.

d. Once the link is available, the appropriate modifications will be applied in the

website.



1 Updated Website

Contents

NTRC Personnel

and External Users

Accurate and up-to-date

revisions to website contents and active links to external

sources.



Prepared by:


Approved by:


Executive Director



Prepares the updates for

NTRC Publications/ Tax matters/Banner picture/

Employee’s Organization

Submits the form to the

Website Committee

Chairman

Approves the form

Submits for posting

in the website

Updates the website

3. Process Flow

3.1 Updating of NTRC Publications / House and Senate Bills / Did You Know That? /

Banner picture / Employee’s organization

Technical Branches


Director

Website Committee

IT Unit

START

END



Prepared by:


Approved by:


Executive Director




the information on

Transparency Seal

Submits the form to the

Website Committee

Chairman

Approves the form

Submits for posting

in the website

Updates the website

Logs-in to Control Panel

and uploads the

Transparency Seal

Document

3.2 Updating of Information on Transparency Seal

Administrative and

Financial Branch /

Planning and

Coordinating Branch


Director

Website Committee

IT Unit

START

END



Prepared by:


Approved by:


Executive Director




Relevant Tax Information,

Tax News and Issuances

Checks if the list of

information is

available online

Updates the website

Submits the approved form

to the Website Committee

Chairman

Approves the form

Submits for posting

in the website

Informs the Website

Committee Chairman that

there is no link available

3.3 Updating of Relevant Tax Information, Tax News and Issuances

Technical Branches

Planning and

Coordinating Branch

Website Committee

IT Unit

Is it available

online?

END

No

Yes

START



Prepared by:


Approved by:


Executive Director





1

Website Form No. 1 IT Unit Completeness of documents

to be uploaded and availability of links to

external sources.

2 Website Form No. 2 IT Unit Completeness and accuracy of documents to be

uploaded.

3 Website Form No. 3 IT Unit Completeness of documents

to be uploaded and availability of links to

external sources.



Prepared by:


Approved by:


Executive Director



OVERVIEW

The GovMail service provides secure email and collaboration system for internal, interagency and public

communications. GovMail has the unique agency name with gov.ph suffix and will use a central server and public key infrastructure for added security. The IT Unit serves as the GovMail administrators for

NTRC.

PROCEDURES


1.1 Create GovMail Account

a. The Chief of the HRD signs a correspondence requesting the creation of GovMail accounts for specific employees.

b. The IT Unit receives the request and initiates access to the GovMail Administrator

Website.

c. The IT Unit verifies the availability of slots for the accounts to be created.

d. If slots are available, the IT Unit updates the GovMail Accounts in order to effect

the necessary additions.

e. If slots are not available, the IT Unit asks if the “Never Logged In” employees are willing to give up their accounts to accommodate the creation for new employees.

f. If the inactive accounts are given up, the IT Unit edits and updates the GovMail Accounts in order to effect the necessary additions.

1.2 Delete GovMail Account

a. The Chief of the HRD signs a correspondence requesting the termination of GovMail

accounts for specific employees who are no longer connected to NTRC by way of

retirement, resignation or transfer to other office.

b. Before the designated date of separation from NTRC, the IT Unit instructs concerned

employee to back-up important e-mail messages.

c. The IT Unit receives the request and initiates access to the GovMail Administrator

Website.

d. The accounts for employees who retired, resigned or transferred are closed and such

slots will be made available in the active account pool.


GovMail Account Management Process

Prepared by:


Approved by:


Executive Director



Edits the GovMail account

Asks those “Never Logged In”

employees if they want to

give up their account to

the new employees

Updates the GovMail Account

Logs-in to the GovMail

Administrator website



1 Updated GovMail

Accounts

Chief of HRD Proper maintenance of the

GovMail service by allocating provisions for

active accounts and making

efficient use of inactive accounts.

3. Process Flow

3.1 Create GovMail Account

HR Division

IT Unit

START

Makes a request to create a

new GovMail Account

No

Yes

A

Gave up slot?

No

Yes

A END

Account

available?



Prepared by:


Approved by:


Executive Director



Instructs the employee to

back-up the important

e-mail messages

3.2 Delete GovMail Account

HR Division

IT Unit



1 Request for creation of GovMail Account

IT Unit Prompts action to provide the GovMail service to

employees.

2 Request for

termination of GovMail Account

IT Unit Ensures that the GovMail

service is made available only for active employees.

START

Makes a request to delete

GovMail Account

END

Deletes the employee’s

GovMail account

Logs-in to the GovMail

Administrator website



Prepared by:


Approved by:


Executive Director



OVERVIEW

The IT Unit is responsible for the maintenance of the computers, peripherals and network infrastructure

within the NTRC such that they would yield optimal functionality.

PROCEDURES


1.1 Requesting Division notifies the IT Unit of the computer-related glitch or problem.

1.2 A Representative from the IT Unit asks the Requesting Division regarding the nature of the problem and performs inspection in order to establish whether the faulty component

is software, hardware or a combination of both. The Representative verifies the

symptoms and tries to apply quick fixes.

1.3 If the problem is resolved, the Representative makes a final check to ensure proper

operation of the computer hardware and/or software and informs the Requesting

Division of the successful troubleshooting.

1.4 If the problem is not immediately solved by the applied quick fixes, a split-half search is repeatedly performed until a viable solution is established. The solution is then tested

and applied.

1.5 If the problem is solved through the split-half search solution, the Representative makes

a final check to ensure proper operation of the computer hardware and/or software and

informs the Requesting Division of the successful troubleshooting.



1 Successful Troubleshooting

NTRC Personnel Restoration of operational functionality of Computer

Hardware and/or Software


Troubleshooting Management Process

Prepared by:


Approved by:


Executive Director



Raises the concern on their computer or other computer-

related hardware/program

Checks the computer or other computer-related

hardware/program

Tests solution

Informs and instructs the user

Cleans and checks the area

Makes final check

Performs Split-Half Search

3. Process Flow

Requesting

Division

IT Unit



1 Faulty Computer Hardware and/or

Software

Representative from IT Unit

Detailed description of the symptoms that transpired.

START

B

A

A

No

Yes

No

Yes

No

Yes

Have good

solution?

Trouble

cleared? END

B

Trouble

cleared?


Troubleshooting Management Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

Some memoranda and other documents are disseminated within NTRC through e-mail. This is a fast and

economical approach since the required documents will be delivered in no time and without the need to

circulate multiple hard copies of the documents. The IT Unit is responsible for disseminating such

information through e-mail.

PROCEDURES


1.1 The Office of the Director requests a particular memorandum or document to be

disseminated to the employees.

1.2 The HRD receives the request and instructs the IT Unit to disseminate such

information through e-mail.

1.3 The IT Unit receives the request along with the file and relevant attachments to

be sent to appropriate recipients as instructed by the HRD.

1.4 If there is an available copy of the file in the official e-mail, the IT unit

disseminates it to the recipients using the official e-mail address or distribution

list.

1.5 If the copy is not readily available in the official e-mail, it will be scanned first

and then disseminated to the recipients using the official e-mail address or

distribution list.



1 Disseminated

memorandum and

other documents

through e-mail

NTRC Personnel Immediate and cost-effective

distribution and

dissemination of

information.


Email Dissemination Process

Prepared by:


Approved by:


Executive Director



Submits for dissemination

and instructs who will be

the recipients of the e-mail

3. Process Flow


Director

HR Division

IT Unit



1 Memorandum and

other documents that

need to be distributed

to target recipients

Office of the

Director

Immediate and cost-effective

distribution and

dissemination of

information.

START

Requests to disseminate the

Memorandum or other

document to employees

END

Disseminates the

Memorandum / document

to the recipients using the

official e-mail address

Receives the request and the

attached file


Email Dissemination Process

Prepared by:


Approved by:


Executive Director



OVERVIEW

The objective of library process is to provide guidance and assist researchers in their use of library

resources. It also provides significant collection of books and other printed materials related in taxation,

statistics, economics, finance and other related fields.

PROCEDURES


1.1 The borrower secures “Permit to Use the Library” from the Personnel Division.

1.2 The borrower presents permit and/or letter request to the Librarian.

1.3 The Librarian assists the borrower in their use of library resources.

1.4 The Librarian files copy of permit and/or letter of request and maintains the

record.



1 Provide library

services

NTRC Officials and

Employees,

Researcher

Significant collections of

books and other printed

materials related in taxation,

statistics, economics, finance

and other related fields

OPERATIONS MANUAL AFB – Library

Library Process

Prepared by:

EMELITA A. NAVOR Librarian I

Approved by:




Issues necessary permit

Presents permit and/or letter

request to the Librarian

3. Process Flow

Borrower

Personnel Division

Library



1 Permit and/or letter request

Researcher Approved authorization slip

START

Secures “Permit to Use

the Library” from

the Personnel Division

END

Files copy of permit and/or

letter of request and

maintains the record

Assists the borrower in their

use of library resources

OPERATIONS MANUAL AFB – Library

Library Process

Prepared by:

EMELITA A. NAVOR Librarian I

Approved by:



Permit to Use

the Library


OVERVIEW

Dental services is responsible in maintaining a healthy mouth, teeth, and gum. It also provides dental

care awareness to prevent dental problems that may diminish quality of life and medical complication

PROCEDURES


1.1 The Dental Officer interviews the patient for the complaint.

1.2 The Dental Officer conducts dental analysis to determine the symptoms and/or

causes of the complaint.

1.3 The Dental Officer conducts dental procedures based on the dental analysis.

1.4 The Dental Officer issues medicine and/or prescription, if necessary.

1.5 The Dental Officer records the patient’s dental information in the logbook.



1 Logbook of patient’s

information

NTRC Personnel Complete dental services

OPERATIONS MANUAL AFB – Medical and Dental Unit

Dental Services Process

Prepared by:

ERNESTO S. APARENTE Dentist II

Approved by:




3. Process Flow

Dental Officer



1 Request for dental

services

NTRC Officials and

Employees

Ensure that dental service

are of high quality

START

Interviews the patient for

the complaint

OPERATIONS MANUAL AFB – Medical and Dental Unit

Dental Services Process

Prepared by:


Approved by:



END

Conducts dental analysis to

determine the symptoms

and/or causes of the

complaint

Conducts dental procedures

based on the dental analysis

Issues medicine and/or

prescription, if necessary

Records the patient’s dental

information in the logbook


OVERVIEW

The Medical and Dental Unit is responsible in maintaining the supply of medicine. The Medical and

Dental Unit ensures that basic medicines and dental supplies are available.

PROCEDURES


1.1 The employee requests for basic medicine.

1.2 Medical Officer checks the availability of medical supplies for verification of

stock on-hand. If supplies are available, Medical Officer issues the requested

medicine. If out-of-stock, medical officer prioritizes the unavailable medicine

supplies.

1.3 The Medical Officer issues the medical supplies on-stock and the employee

acknowledges receipt of medicine.



1 Report of Medicine

Issuance

Administrative

Division

Complete and accurate

report of issuance

OPERATIONS MANUAL AFB – Medical and Dental Unit Issuance of Medicine Process

Prepared by:


Approved by:




3. Process Flow

NTRC Officials and

Employees

Medical Officer



1 Request of medicine NTRC Officials and

Employees

Ensure that medicine issued

are of high quality and not expired

START

The employee requests

for basic medicine

END

Issues the medical

supplies on-stock

Checks the availability

of medical supplies for

verification of stock

on-hand

OPERATIONS MANUAL AFB – Medical and Dental Unit Issuance of Medicine Process

Prepared by:


Approved by:



Supplies

available?

No

Yes

Prioritizes the unavailable

medicine supplies

Acknowledges receipt

of medicine


Purpose

The purpose of this procedure is to ensure that all documents needed for the Quality Management System

(QMS) are kept up-to-date and are readily available for use by those who need them.

Scope

This procedure applies to all internal and external documents identified by the NTRC as required by the QMS.

Definition of Terms

Document

Information and its supporting module. The medium can be paper, magnetic, electronic, or optical computer disc, photograph or a

combination thereof.

Internal Document A document generated by the NTRC.

External Document A document received by the NTRC from external sources.

Uncontrolled Copy A document copy not subject to further document control after it is issued.

Document Masterlist A list that identifies the documents required by the QMS.

Responsibilities

Quality Management

Representative

Reviews and approves documents included in the Quality Manual;

approves the distribution of external documents.

Chief of Branch

Reviews and approves internal documents needed by his/her Branch,

process or function; approves the distribution of copies of external

documents pertaining to his/her process or function.

Document Central

Controller

Ensures that the controls provided in this procedure are effectively implemented throughout the NTRC.

Maintains the Central Document Masterlist, listing all the controlled

documents of the NTRC.

Branch Document

Controller

Ensures that documents needed by the Branch are properly maintained and are readily available.

Maintains the Branch Document Masterlist, listing all the controlled

documents held by the Branch.

Document Originator Prepares draft of new or revised internal document;

Receives new or revised external document from source.

Document Copyholder Receives new or revised documents from Document Controller or

Branch Document Controller, and maintains copies.

OPERATIONS MANUAL Record Management Improvement Committee

Control of Documents

Prepared by:

VENCHITO P. SALVADOR

Assistant Chief, AFB

Approved by:


Executive Director



PROCEDURES


1.1 New or Revised Internal Branch Documents

1.1.1 The OED identifies the need to create/revise internal document.

1.1.2 The Document Originator (DO) submits the new/revised internal document through

memo on Document Creation/Change to Branch Document Controller (BDC) for

corresponding action/ review and approval.

1.1.3 The ED provides comment to the documents for final review and approval.

1.1.4 The DO submits the final document for approval/signature through routine slip.

1.1.5 The BDC of ED forwards the approved document to the BDC of the Records Officer.

1.1.6 The Records Officer (RO) registers the document prior to distribution to the BDC and

DO, and the DO updates the Document Masterlist.

1.1.7 The RO distributes the documents such as circulars, memorandum, plans and program,

manuals, publication and forms.

1.1.8 The BDC receives the certified true copies of the approved documents from the ROs.

1.2 New or Revised External Branch Documents

1.2.1 The DO receives the external document, identifies the recipient/document copy holder

via routine slip and then forwards to BDC for recording in the logbook before

forwarding to copy holder.

1.2.2 The BDC forwards the external document to Chief Tax Specialist of the Branch

identified as a copy holder for receiving in the logbook.

1.2.3 The Chief Tax Specialist of the Branch instructs the BDC to retrieve obsolete copies

if there is a need to update.

1.2.4 The concerned personnel maintains the document according to records control

procedure.



Prepared by:



Approved by:


Executive Director



Identifies the need to

create/revise internal

document

The Executive Director provides

comment to the

documents for final

review and approval

Submits the final

document for

approval/signature

through routine slip

The Branch Document

Controller of OED

forwards the approved

document to the BDC

of the Records Officer

Submits the

new/revised internal

document through

memo on Document

Creation/Change to

BDC for

corresponding action/

review and approval

Registers the

document prior to

distribution to the

BDC and DO, and the DO updates the

Document Masterlist

Distributes the

documents such as circulars,

memorandum, plans

and program, manuals,

publication and forms

Receives the certified

true copies of the

approved documents

from the ROs

2. Process Flow

2.1 New or Revised Internal Branch Documents

Office of the

Executive Director

Document Originator

(DO)

Records Officer (RO)

Branch Document

Controller (BDC)



Prepared by:



Approved by:


Executive Director


START

END


Forwards the external

document to Chief Tax

Specialist of the branch

identified as a copy holder

for receiving in the logbook

2.2 New or Revised External Branch Documents

Document Originator

Branch Document

Controller

Technical Branches

START

Receives the external

document

END

The concerned personnel

maintains the document

according to records control

procedure

The Chief Tax Specialist of

the Branch instructs the

BDC to retrieve obsolete

copies if there is a need to

update



Prepared by:



Approved by:


Executive Director


Identifies the

recipient/document copy

holder via routine slip

Forwards the external

document to BDC for recording in the logbook

before forwarding to copy

holder


Purpose

The purpose of this procedure is to ensure that all records generated by the quality management system are

properly maintained and are readily available for use by those who need them.

Scope

This procedure applies to records required by ISO 9001 as well as records identified by the organization as required for the effective management and control of processes.

Definition of Terms

Record

A document stating results achieved or providing evidence of

activities performed.

Records can be used to document traceability and to provide evidence

of verification, preventive action, and corrective action. Generally,

records need not be under revision control (Document Control Procedure)

Records may use different media, including paper, magnetic, electronic or optical computer disc, photograph or a combination

thereof.

Active Records

Records that are currently being maintained, used and controlled.

These records are normally kept in desk/workstation drawer or nearby filing cabinets, shelves or racks for easy access and retrieval.

Inactive Records

Records that are very rarely or no longer referred to, and which must

be transferred to a cheaper place (e.g. the Agency’s Record Center).

These records have already served their purpose but must be kept just the same for legal requirements or some compelling reasons. They are

only destroyed the moment their retention periods have expired.

Obsolete Records Records whose retention periods have expired and which are no longer needed.

File

A cabinet with records in it; a folder containing records; a collection

of papers involving a specific name or topic; a class of records in a

separate group or series of filing drawers.

Filing System

A plan of identifying, arranging and finding records. Filing systems

may be alphabetical, numerical, chronological, or functional subject-

alphabetic classification system (FSACS).

Records Masterlist A list that identifies the records needed and maintained for the QMS.

Records Disposition

Schedule

A listing of records series by organization showing, for each records

series, the period of time it is to remain in the office area, in the storage

(inactive) area, and its preservation or destruction.

Retention Period

Refers to the specific period of time established and approved by the National Archives of the Philippines as the life span of records, after

which they are deemed ready for permanent storage or destruction.

Period of time when records must be kept, usually stated in terms of

number of months or years, but sometimes expressed as contingent

upon the occurrence of an event such as employee termination,

contract closure, project completion, etc.


Control of Records

Prepared by:



Approved by:


Executive Director



Responsibilities

Quality Management

Representative

Reviews and approves the records retention schedule for records

pertaining to mandatory procedure on control of documents, control

of records, internal audit, corrective action and preventive action.

Unit Manager

Reviews and approves the records retention schedule for records

pertaining to his process or function. (At the minimum, in accordance

with RMAO.)

Unit Records Custodian

Classifies records needed by his function or process; recommends retention periods for these records.

Maintains active files needed by his function or process; turns-over inactive records to the Records Center, as needed; disposes records in

his area.

Ensures that records needed by the Unit are properly maintained and

are readily available.

Maintain the Unit’s Record Retention Schedule and Record Masterlist, listing all the records held by the Unit.

Records Officer

Maintains the inactive records turned over to the Records Center;

disposes obsolete records in the Records Center.

Maintains the Records Center’s Record Masterlist.

Ensures that the controls provided in this procedure are effectively implemented throughout the Agency.

Maintains the Central Records Retention Schedule


Control of Records

Prepared by:



Approved by:


Executive Director



PROCEDURES


1.1 The Unit Records Custodian identifies the records series and determines the record value and

retention period, in coordination with the Unit Document Controller.

1.2 The Unit Document Controller updates the Records Disposition Schedule.

1.3 The Unit Manager approves the Records Disposition Schedule.

1.4 The Document Controller updates the Central Records Disposition Schedule.

1.5 The Unit Records Custodian creates and labels the files as needed.

1.6 Then he/she sets up and labels active records storage location as needed.

1.7 He/She will maintain the files of active records in conjunction with his function or process and maintains the Records Masterlist.

1.8 He/She turns over files of inactive records to the Records Center following the retention schedule, using the Turnover list and Disposal Authorization.

1.9 The Unit Manager approves the turnover of files.

1.10 The Records Officer sets up and labels inactive storage locations as needed.

1.11 Then he/she receives inactive files for storage and maintains the Masterlist of Records.

1.12 He/She also implements the disposition of records following the retention schedule.

1.13 The Unit Records Custodian/ Records Officer disposes records in his area following the

retention schedule, using the Turnover List and Disposal Authorization; updates the Masterlist

of Records.

1.14 The Unit Manager approves the disposal of files


Control of Records

Prepared by:



Approved by:


Executive Director



Identifies the records

series and determines

the record value and

retention period

Maintains active

records and turnovers

inactive records

Approves the

Turnover List and

Disposal

Authorization

Updates the Records

Disposition Schedule

Disposal of records

Approves the Records


Approves the Records


Maintains inactive

records

No

Yes

2. Process Flow

Unit Records

Custodian

Unit Document

Controller

Unit Manager

Document

Controller

Records Officer


Control of Records

Prepared by:

VENCHITO P. SALVADOR Assistant Chief, AFB

Approved by:


Executive Director


START

END

Records Disposition

Schedule

Are Disposal

Authorization

approved?

Records Disposition

Schedule


Purpose

The purpose of this procedure is to verify whether the QMS conforms to the planned arrangements, to the

requirements of ISO 9001 and the QMS requirements established by the NTRC, and is effectively implemented and maintained.

Scope

This procedure applies to the NTRC’s core and support processes included in the QMS scope.

Definition of Terms

Audit

Systematic, independent and documented process for obtaining audit

evidence and evaluating it objectively to determine the extent to which

audit criteria are fulfilled.

Audit Program A set of one or more audits planned for a specific time frame and

directed towards a specific purpose.

Audit Plan Description of the activities and arrangement for an audit.

Audit Scope Extent and boundaries of an audit.

Audit Criteria A set of policies, procedures or requirements

Audit Evidence Records, statements of fact or other information which are relevant to

the audit criteria and verifiable.

Audit Findings

Results of the evaluation of the collected audit evidence against audit criteria.

Findings include conformities, non-conformities and

observations/opportunities for improvement.

Audit Conclusion Outcome of an audit provided by the audit team after consideration of

the audit objectives and all audit findings.

Audit Client NTRC or person requesting an audit. This may be Top Management, the QMR, another government agency, other interested stakeholder.

Auditee NTRC or person being audited.

Auditor Person with the demonstrated personal attributes and competence to

conduct an audit.

Audit Team One or more auditors conducting an audit, supported if needed by technical experts.

Technical Expert Person who provides specific knowledge or expertise to the audit

team. A technical expert does not act as an auditor in the audit team.

Non-conformity Non-fulfillment of a requirement.

Opportunity for

improvement

An area of the QMS which currently fulfills the requirement but which

may be further enhanced to prevent a possible non-conformity.

OPERATIONS MANUAL Internal Quality Audit Committee Internal Quality Audit Procedure

Prepared by:


Approved by:




Responsibilities

QMR

Reviews and approves the annual audit programme.

As audit client, identifies priority areas of the QMS which will be the focus of the audit programme.

Internal Quality Audit

(IQA) Chairman

Plans and manages the audit programme; coordinates the audit

programme with the audit client and the QMR.

IQA Team Leader

Plans and manages audits assigned to him; coordinates audit plans with the auditee.

Conducts audits assigned to him/her.

IQA Team Member Conducts audits assigned to him/her.

Auditee Provides audit evidence to the IQA Team; responds to audit findings

as needed.

PROCEDURES


1.1 The IQA Chairman schedules the different audits for the year; determines the audit objectives,

scope and applicable criteria; identifies the audit team leader and members per audit.

1.2 The QMR approves the audit programme.

1.3 The IQA Chairman evaluates candidate auditors. He then maintains the directory of auditors,

and identifies auditor training needs; coordinates with Personnel Management on training and

development requirements.

1.4 The IQA Team prepares the audit plan; Prepares audit checklists.

1.5 The IQA Team Leader coordinates audit arrangements with the auditee.

1.6 The IQA Team gathers audit evidence and evaluates them against the audit criteria.

1.7 The IQA Team prepares the reports on audit findings and conclusions.

1.8 Auditee prepares and implements corrective actions on non-conformities, if any.

1.9 The IQA Team conducts follow-up audits, if needed.

1.10 The QMR and IQA Team reviews audit results and status of follow-up audits.

1.11 The QMR, Management Team and Auditee review audit results and status of corrective

actions.


Prepared by:


Approved by:




Plans the audit programme

Manages the auditor pool

Prepares the audit plan

and audit checklist

Approves the audit

programme Reviews audit results and

status of corrective actions

with the Management Team

and Auditees

The IQA Team Leader

coordinates the audit

arrangements with the auditees

Conduct audits, gather audit

evidences and evaluates them

against the audit criteria

Prepares the report on audit

findings and conclusions

Receives the audit findings

Prepares and implements

corrective actions on non-

conformities, if any

Reviews audit results and

status of follow-up audits

with the QMR

Conducts follow-up audits,

if needed

Assesses the competence of the

auditors and evaluates if there’s

a necessity to conduct further

trainings and workshops to

assure the efficient and effective

conduct of audit

Issues Request for Action on

nonconformities (refer to

Corrective Action Procedure)

2. Process Flow

Internal Quality

Audit (IQA)

Chairman

Quality

Management

Representative

IQA Team

Auditee

START

END


Prepared by:


Approved by:




Purpose

The purpose of this procedure is to ensure that products and services that do not conform to requirements are

controlled to prevent their unintended use or delivery, or if already delivered, to ensure that appropriate remedies are effectively taken.

Scope

This procedure applies to the products and services provided by the Agency to its Clients included in the

Agency’s quality management system.

Definition of Terms

Nonconforming

product / service

Products or services that do not fulfill requirements.

Products may include physical items, as well as reports and other

documents prepared and released in conjunction with service delivery.

Initial Disposition

Action taken to contain the nonconforming product//service and minimize its immediate effect. This may include putting the

nonconforming product on hold and setting it aside, or, temporarily

discontinuing service delivery.

Final Disposition

Action taken to correct the nonconforming product/service, to make it conform to requirements or otherwise prevent its unintended use or

delivery. This may include revision or updating of nonconforming

products, or redoing the service.

Concession

Permission to use or release a product or deliver a service that does not conform to specified requirements.

A concession is generally limited to the delivery of a product that has nonconforming characteristics within specified limits for an agreed

time or quantity to that product.

Corrective Action

Action to eliminate the cause of a detected nonconformity

(nonconforming product/service) or other undesirable situation, and prevent recurrence.

OPERATIONS MANUAL Internal Quality Audit Committee

Control of Nonconforming Products/Services Procedure

Prepared by:


Approved by:




Responsibilities

Unit Staff Identify nonconforming product/service and take appropriate action.

Unit Manager Review nonconforming product/service situation and determine how

it may be effectively resolved.

Agency Head Authorize actions involving high levels of risk to the Agency.

PROCEDURES


1.1 The Branch Staff determines nonconforming product/service and receives client feedback on

nonconforming product/service.

1.2 They isolate nonconforming product/service, and/or temporarily stops process/service

delivery, following the Control of Nonconformity Matrix.

1.3 The Branch Staff provides initial response to the non-conformity/ client feedback, as needed.

1.4 The Chief of Branch/Executive Director reviews the nonconforming product/service situation

and approves final disposition.

1.5 The Branch Staff obtains product concession, corrects nonconforming product, archives

product, or adjusts or revise process/service delivery following the Control of Nonconformity

Matrix and provides final response to client feedback, as needed.

1.6 The Branch Staff provides final response to client feedback, as needed.

1.7 The Branch Staff prepares a Request for Action.



Prepared by:


Approved by:




Identifies nonconforming

product/service Applies corrective action

Determines and applies final

disposition

2. Process Flow

Branch Staff

Chief of Branch/

Executive Director

END

START

Determines and applies

initial disposition



Prepared by:


Approved by:




Purpose

The purpose of this procedure is to ensure that causes of detected nonconformities are eliminated in order to

prevent recurrence.

Scope

This procedure applies to nonconformities found in the implementation of the QMS.

Definition of Terms

Nonconformity Non-fulfillment of a requirement.

Corrective Action Action to eliminate the cause of a detected nonconformity or other

undesirable situation and prevent recurrence.

Responsibilities

Chief of Branch Ensures that actions are taken without undue delay to prevent the

recurrence of nonconformities.

Branch Staff Conducts root cause analysis, develops, plans and implements

corrective actions.

QMR

Ensures the provision of resources for the implementation of

corrective actions.

Reviews the status and effectiveness of corrective actions.

PROCEDURES


1.1 The Chief of the Branch receives and reviews the Request for Actions and identifies concerned

staff who will be involved in corrective action.

1.2 The Branch Staff conducts root cause analysis.

1.3 The Branch Staff assesses the risks of possible recurrence of the nonconformity.

1.4 The Branch Staff develops, plans and recommends corrective actions.

1.5 The Chief of Branch approves the corrective actions.

1.6 The Branch Staff implements corrective actions.

1.7 The Chief of the Branch/QMR review the implementation status and evaluates the

effectiveness of corrective actions.


Corrective Action Procedure

Prepared by:


Approved by:




Reviews nonconformity

Reviews effectiveness of the

corrective action taken

Determines the cause of

nonconformity

2. Process Flow

Chief of Branch

Branch Staff

END

START

Evaluates the need for

action to prevent recurrence


Corrective Action Procedure

Prepared by:


Approved by:

