performance-based incentive system

Executive Order No. 80, s. 2012 – “Directing the Adoption of a Performance-Based Incentive System for Government Employees”

Executive Order No. 80, s. 2012

What existing incentive system do we have now?

- No distinction between the NPAs and PAs- Everybody is rewarded/Across-the-board bonus - Reward becomes a disincentive for good

performers or PERFORMING ASSETS (PAs)- Culture of mediocrity is being propagated


/Strengthen performance monitoring and appraisal system based on existing systems like the OPIF, Strategic Performance Management System of CSC, and the RBPMS

Need to come up with a fair incentive system:

/ Rationalize the current incentive system

/ Improve service delivery by the bureaucracy by linking personnel incentives to the bureau or delivery unit’s performance


1. Productivity Enhancement Incentive

• P5,000 across-the-board

2. Perfomance-Based Bonus (PBB)

• Top-up Bonus for personnel of bureaus or delivery units based on their contribution to the accomplishment of their Department’s overall targets and commitments

Strategies in Adopting the PBB

• Flexibility shall be given to heads of departments to suit the PBB system to the nature of their operations

• Adoption of a communications strategy and publication of performance targets and accomplishments in the website to ensure transparency and accountability


Criteria and Conditions to Qualify for PBB

Achieved at least 90% of MFO targets and Priority Program targets agreed with the President under the five (5) Key Result Areas of EO 43;Meet 2 to 3 good governance conditions/ requirements set by the AO 25 Task Force annually under the performance drivers of the RBPMS;a. Financial stewardship - mandatory posting of budget reports (Agency

Transparency Seal); posting of all invitations to bid and awarded contracts in the PHILGEPS; and liquidation of all cash advances for the year within the reglementary period

b. Internal process efficiency - establishment of a Citizen’s Charter or its equivalent

Bureaus within the Department meeting above conditions are forced ranked and their respective personnel.


Performance Categories


1. Department Secretaries shall rank the bureaus or delivery units, including attached agencies, according to their performance following a normal distribution curve.

Performance Categories


2. For 2012, the Bureau Heads shall rate employees using their respective Performance Appraisal Systems

P15,000(max)

P15,000(max)

P25,000 (max)

P25,000 (max)

P35,000(max)

P35,000(max)

P5,000P5,000P5,000

PBB for “BEST” bureaus

(Top 10% of ranked bureaus)

PBB for “BETTER” bureaus

(Next 25% of ranked bureaus)PBB for “GOOD”

bureaus (Next 50% of ranked

bureaus)

PBB Distribution

9

PEI

PBB

No PBB for Bureaus whose accomplishment is less than 90% of targets

No PBB for “POOR”

bureaus that did not meet

90% of targets

(Remaining 15% of ranked

bureaus)

P5,000

PBB Rates of Incentives


Coverage

All Departments/Agencies, other Offices of the National Government, State Universities and Colleges (SUCs), and Government-Owned or-Controlled Corporations (GOCCs) are covered.

The Governance Commission on GOCCs (GCG) is encouraged to adopt the policies and principles in the EO and issue guidelines for GOCCs covered under RA 10149, pending formulation of a compensation system for GOCCs.


Funding for PBB

The PEI and PBB top-up bonus shall be sourced from the Miscellaneous Personnel Benefits Fund (MPBF)

For GOCCs, the same shall be sourced from their corporate funds


2012 Implementation Schedule


Phases of PBB Implementation

2nd to 3rd Q 2012

3rd-4th Q 2012

FY 2013

FY 2014FY 2015


MEMO CIRCULAR NO. 2012-05 DATED JANUARY 14, 2013…….1/8

• GUIDELINES TO CLARIFY THE ELIGIBILITY AND RANKING OF PERSONNEL IN LINE WITH THE GRANT OF PERFORMANCE-BASED BONUS FOR FY 2012…

a) The personnel are still in the service as of November 30, 2012 and have rendered at least four (4) months of service as of said date;

GUIDELINES….. 2/8

b) Employees belonging to the 1st & 2nd levels should receive a rating of at least “SATISFACTORY” under the CSC-approved Performance Appraisal System (PAS);

c) Officials at the 3rd level should receive a rating of at least “VERY SATISFACTORY” under the Career Executive Service Performance Evaluation System (CESPES). Payment of the PBB to them shall be based on the results of the CESPES;

GUIDELINES… 3/8

d) Other Officials not covered by the CESPES should receive a rating of at least “SATISFACTORY” under the existing Performance Appraisal System of the Department/Agency;

e) The contractual and casual personnel who may be entitled to the PBB shall be those whose compensation are charged to the lump sum appropriation under Personal Services;

GUIDELINES….. 4/8

• …or those occupying positions in the DBM-approved contractual staffing pattern of agencies concerned. They may be included in the ranking along with the regular personnel;

f) Personnel on detail to another government agency for three (3) months or more as of November 30, 2012 shall be included in the ranking of employees in the recipient agency which rated his/her performance;

GUIDELINES…. 5/8

g) Personnel on scholarship may be included in the ranking, provided they qualify based on the performance criteria established by the Performance Management Group (PMG) and approved by the Agency Head;

h) The PBB of employees on part-time basis shall be pro-rated corresponding to the services rendered;

GUIDELINES… 6/8

i) Personnel found guilty of administrative and/or criminal cases filed against them and METED PENALTY IN FY 2012 shall not be entitled to the FY 2012 PBB. If the penalty meted out is only a REPRIMAND, such penalty shall not cause the disqualification to the PBB;

j) The Office of the Secretary (OSEC) in a Department or an equivalent unit in a Department-level agencies shall be considered as one (1) delivery unit to include the OSEC itself and ….

GUIDELINES… 7/8

….all the Offices of the Department Undersecretaries and Assistant Secretaries.

All officials and employees within OSEC shall be ranked accordingly;

k) The Third Level officials within the bureaus/offices/delivery units (such as the Bureau Directors and Assistant Directors) may be ranked in either of two (2) ways, ……

GUIDELINES….. 8/8

….SUBJECT TO THE RECOMMENDATION OF THE PERFORMANCE MANAGEMENT GROUP (PMG) and approval of the Agency Head:

k.1 Include said officials in the ranking of personnel within each bureau/ office /delivery unit; ork.2 Include said officials in the ranking of personnel within OSEC.

OTHER REQUIREMENTS

1. For proper review, attached agencies/offices are reminded to submit their PBB compliance requirements to their respective MOTHER DEPARTMENTS, which shall in turn consolidate and submit said reports to their respective Budget & Management Bureau, DBM.

2. To facilitate validation of the PhilGeps posting, Departments/Agencies are requested to indicate the Reference Number of the Invitations to Bid and the Project Title consistent with the number and title posted in the PhilGeps.

Other requirements.. CITIZEN’S CHARTER…1/3

3.To facilitate the validation of Citizen’s Charter, Departments/Agencies should ensure compliance with Section 6 of the Anti-Red Tape Act of 2007 and Rule IV of its Implementing Rules and Regulations:

a) The service standards known as the Citizen’s Charter enumerating the following was established:

CITIZEN’S CHARTER ….2/3

i. Vision and Mission of the Agency ii. Frontline services offered iii. Step-by-step procedure in availing of frontline services iv. Employee responsible for each step v. Time needed to complete the procedure vi. Amount of fees (for a collecting agency) vii. Required documents viii. Procedure for filing complaints

CITIZEN’S CHARTER…3/3

b) The Citizen’s Charter is posted as information billboards in all the service offices of the department/agency that deliver frontline services.

c) The Citizen’s Charter is positioned at the main entrance of the office or at the most conspicuous place of all the said service offices.

d) The Citizen’s Charter is published, written either in English, Filipino, or in local dialect.

THANK YOU SO MUCH FOR LISTENING

• HOPE YOU BELONG TO THE BEST DEPARTMENT/ BUREAU/ DELIVERY UNIT…

• GOOD LUCK! ! !

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3, series of 2012December 20, 2012

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3, series of 2012, December 20, 2012

PURPOSE:

To provide participating agencies and LGUs with policy guidelines, processes, responsibilities and timelines in the bottom-up budgeting approach to be applied in the preparation of the FY 2014 National Expenditure Program

DEFINITION:

An approach to preparing the budget proposal of agencies, taking into consideration the development needs of poor cities / municipalities as identified in their respective local poverty reduction action plans that shall be formulated with strong participation of basic sectors and civil society organizations.



KEY PLAYERS:

PARTICIPATING AGENCIES:

DA, DAR, DEPED, DOE, DENR, DOH, DILG, DSWD, DOLE, DOT, DTI, TESDA and NEA

COORDINATION & OVERSIGHT AGENCIES:

DBM, DILG, DSWD, NAPC and NEDA


Chair : DILG Regional DirectorVice-Chair : DBM Regional Director

Members : -Regional Directors of DA, DAR, DENR, DOH, DEPED, DOLE,

DSWD, DTI, DOT, TESDA & NEDA

-Representatives of DOE & NEA

-A CSO Representative per province as identified by NAPC


The Regional Poverty Reduction Action Team:

Chair : Local Chief ExecutiveCo-Chair : A CSO RepresentativeMembers : Representatives from:

Non-government - 50% of total numberGovernment - 50%

-------- 100%

Notes: At least 40% of total number shall be women. CSO representative must be resident of the city/municipality


The Local Poverty Reduction Action Team:

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012

Government Non-GovernmentChairperson of Committee

on Appropriations- Local Sanggunian

Pantawid Pamilya Parent-Leader

All Local Government Department Heads

Leader from DOH organized community health teams

Leader of PTA, women’s group, basic sector organizations grassroots organizations

Representatives from NGAs such as DSWD Municipal Links, C/MLGOO, School District Supervisor, Agency Regional Offices

CSO accredited by the LGUCSO accredited by any NGA

Local Poverty Reduction Action Team Members:


From 609 LGUs to 1,233 LGUs

Coverage CY 2013 CY 2014Nationwide 609 LGUs 1,233 LGUsCAR 37 LGUs 54 LGUs

38

selected based on the: Poverty incidence of at least 20% & poor

population of at least 5000 individuals based on the 2009 Small Area Estimates (NSCB) and 2010 census data

high economic potential areas

exposure to high geo-hazard risk such as floods and landslides as identified by MGB


Abra (18)

Bangued, Boliney, Bucay, Bucloc, Daguioman, Dolores, La Paz, Lacub, Lagangilang, Licuan-Baay, Luba, Malibcong, Pidigan, Pilar, Sallapadan, San Juan, Tayum, Tubo

Baguio City (1)

Apayao (4) Conner, Luna, Kabugao, Pudtol

Benguet (9) Atok, Bakun, Buguias, Kabayan, Kapangan, Kibungan, Mankayan, Tuba, Tublay


Kalinga (7)Balbalan, Lubuagan, Pasil, Pinukpuk, Tabuk City, Tanudan, Tinglayan

Ifugao (9)Aguinaldo, Alfonso Lista(Potia), Asipulo, Banaue, Hingyon, Hungduan, Lamut, Mayoyao

Mt. Province (6)

Bauko, Bontoc, Paracelis, Sadanga, Sagada, Tadian


EMPOWERMENT PROCESS & BOTTOM-UP BUDGETING PROCEDURES:

1. Preparation for poverty reduction planning and budgeting

Conduct of city/municipal Civil Society Assemblies


CSOs to identify and agree on a set of priority poverty reduction projects and measures that reflect grassroots community issues and demands, which they will advocate for inclusion in the LPRAP.

NAPC & DILG organize capacity building activities on constructive engagement & participatory planning & budgeting for CSOs & LGUs in coordination with RPRATS:



Selection of LPRAT co-chairperson & CSO signatories of the LPRAP


Elected CSO representatives will elect among themselves the co-chair of the LPRAT & the three representatives who will sign the LPRAP that must include:

A Pantawid Pamilya parent leader (if the LGU has no PP beneficiaries, a Parent Teacher Association representative can serve as alternative);

A representative from a basic sector organization or cooperative (farmers & landless rural workers, artisanal fisherfolk, formal labor & migrant workers, workers in the informal sector, indigenous peoples & cultural communities, women, persons with disabilities, senior citizens, victims of calamities & disasters, youth & students, children, or urban poor

A third CSO representative who is a member of the city or municipal local development council



Updating of & validation of relevant economic & social data


LGUs to consolidate & update relevant information, statistics, and sex-disaggregated data for poverty reduction planning

Sources of Data: Community-Based Monitoring System (CBMS), Field Health Service Information System (FHSIS), Socio-Economic Profile, Social Protection & Dev’t Report, Operation Timbang Data, School Improvement Plans, administrative records of NGAs, National Household Targeting System; Participatory Situational Analysis Result (for Kalahi-CIDDS areas), & data from electric cooperatives on sitio & household electrification projects, etc.


2. Conduct of LPRAP Workshop


Conducted to formulate a Local Poverty Reduction Action Plan (LPRAP);

taking into account relevant sections of the Comprehensive Development Plan (CDP), Comprehensive Land Use Plan (CLUP), Executive Legislative Agenda (ELA), & the Annual Investment Program (AIP)

With active participation of CSOs, BSOs & other non-government stakeholders

With technical assistance from the RPRAT


2. Conduct of LPRAP Workshop


The LPRAP shall identify the poverty reduction strategy to be undertaken by the LGU and other stakeholders

through a vote among its members using clear criteria and a transparent & participatory process incorporating good governance, gender mainstreaming

and climate change mitigation/adaptation strategies

using the format in Annex B



All Poverty Reduction Projects must contribute to the following national government priorities:

Provision of Basic Social Services & Attainment of the Millenium Development Goals, including poverty reduction;

Hunger Mitigation and Elimination; Job Generation & Inclusive Local Economic Development; and Climate Change Adaptation/Mitigation and Disaster

Preparedness.

o Localities that experience a high prevalence of hunger shall include hunger mitigation/elimination programs

o Localities that are situated in geohazard areas shall include disaster risk reduction/climate change adaptation programs

Department of Agriculture

-Farm to Market Roads-Small Irrigation Projects-Communal Irrigation Systems-National Rice Program-National Corn Program-National High Value Crops Program-National Fisheries Program-Promotion and development of organic production (More info to be provided by DA-CAR)

Department of Agrarian Reform

Communal Irrigation Systems, Roads, Bridges, School Buildings, Day Care Centers, Flood Control Projects (More info to be given by DAR CAR)

DOE Household Electrification Program (HEP)

NEA On Grid-Sitio Electrification Program (SEP)

DepEd• Basic Education Facilities-Repair/Rehabilitation of classrooms-Construction of Water and Sanitation

Facilities• Gulayan sa Paaralan• Innovative programs to promote access

to EducationDENR National Greening Program

(More info to be provided by DENR-CAR)

DOH• Epidemiology & Disease Surveillance• Maternal neonatal, child health and nutrition

(MNCHN)• Community Health Team (CHT) mobilization• Infectious Diseases• Health Emergency Management• Doctors to the Barrios• RNheals• Rural Health Training & Placement Program• Health Facilities Enhancement Program• Geographically Isolated and Disadvantaged

Areas• Others (Vitamins, Vaccines, Complete Treatment

Pack)

DILG Provision for Potable Water Supply(More info to be provided by DILG-CAR)

DSWD • Kapit-Bisig Laban sa Kahirapan – Comprehensive and Integrated Delivery of Social Service (KALAHI-CIDSS) Project

• Sustainable Livelihood Program• Social Pension for Indigent Senior Citizens• Supplementary Feeding Program• Core Shelter Assistance Program• Child and Youth Welfare Program• Women Welfare Program• Program for Persons with Disabilities• Family Welfare Program

DTI • Shared Service Facility (SSF)• One Town One Product (OTOP) Stores –

Ang Tindahang Pinoy• Bamboo Development Project• Philippine Traceability for Revitalized

Agricultural Competitiveness Enhancement (P-Trace) Project

• Production Innovation Program (PIP)• Rural Microenterprise Promotion Program

(RuMEPP)• Business Permit and Licensing Systems

(BPLS)

DOT Local Tourism Development Projects(More info to be provided by DOT-CAR)

TESDA • Tech-Voc Training• Community-Based Training(More info to be provided by TESDA-CAR)


Projects NOT to be proposed as BuB Projects:

o Expansion of Pantawid Pamilya Program beneficiaries (since identification thereof is done thru NHTS);

o Housing projects (due to substantial cost requirement);o Major flood control projects (due to huge cost requirement);o Vaccination program (since universal coverage is already provided by DOH & PHIC);o National Health Insurance Program (since coverage for indigents is already

provided by PHIC);o Projects related to law enforcement, fire protection and jail

management (not poverty reduction projects);o Construction of city/municipal hall & other multi-purpose buildings,

procurement of furniture and fixtures (not poverty reduction projects);o Construction of new schools buildings and classrooms, and teacher

deployment (already provided in the FY 2013 National Budget);o Purchase of motor vehicles (i.e. ambulances, trucks, fire trucks); ando International trainings/scholarships.


In identifying priority poverty reduction projects:

LGUs must allocate 80% of their budget cap for projects which are already being undertaken by partner NGAs (Based on Menu of Projects – Annex C of JMC No. 3, s. 2012)

The remaining 20% of their budget cap may be allocated for new programs proposed by the LPRAT (Based on national government priorities - 5.2.8 of JMC No. 3, s. 2012)

Funding shall not exceed the cap set for each city or municipality (Annex A of JMC No. 3, s. 2012)

Lists of priority projects which exceed the cap set for the LGU will no longer be entertained by the participating NGAs and the HDPRC



3. Endorsement of CSOs

all three must sign and endorse the list of priority projects

A Pantawid Pamilya parent leader A representative from a basic sector organization

or cooperative A CSO representative who is a member of the city

or municipal local development council



4. Adoption of priority projects by the Sanggunian

Sanggunian must also adopt the list of priority projects before it is submitted to the national government;

Through the issuance of a Sanggunian Resolution using the prescribed format (Annex D);



5. Submission of the List of Priority Poverty Reduction Projects

Submit to:

the Department of the Interior and Local Government (DILG) Regional Office – CAR not later than February 15, 2013both printed (hard copy) and electronic copies (through e-mail)The list of priority projects must be in both PDF and word/excel formats




e-mail address of DILG-CAR:

[email protected]




The submission should include: Cover letter signed by the LCE List of Priority Projects (Annex B1 of JMC 3, s. 2012 & with

all pages signed by the 3 CSO representatives) Project Brief for each proposed project (Annex B2 of JMC 3,

s. 2012 & with all pages signed by the 3 CSO representatives)

Copy of Sanggunian Resolution approving the List of Priority Poverty Reduction projects.



6. Consolidation of the List of Priority Poverty Reduction Projects by Region

to be consolidated by DILG Regional Office – CARDILG-CAR will provide consolidated list to RPRATS and NAPCthe list with copies of original submission and attachments must be submitted to NAPC on or before March 1, 2013



7. Validation and Review of Priority Poverty Reduction Projects by the RPRAT

DILG Regional Director shall convene RPRAT to review and validate proposed projectsWhere agencies do not have existing programs/projects that would cater to proposed projects, RPRAT shall make recommendations to ACOs and HDPRC re: creation of new programs under such agencies to address demands



9. Provision of Counterpart Funds

LGU ClassHighly urbanized cities 30% of project cost

All other cities 20% of project cost

1st to 3rd class municipalities 15% of project cost

4th to 6th class municipalities 5% of project cost

LGUs will be required to provide a 10% counterpart for FMR projects.

LGUs must provide the following cash counterpart for each BuB Project, except for FMR projects:



9. Provision of Counterpart Funds

The LGU counterpart must be sourced from LGU funds.This shall be formalized and included in their FY 2014 AIP and Annual Budget.Funding from NGAs/GOCCs shall not be released if the LGU counterparts have not been provided in the Appropriation Ordinance authorizing the Annual Budget for FY 2014.



10. Project Implementation

LGUs that meet the following requirements can implement their BuB Projects in 2014:

Recipients of the DILG’s Seal of Good Housekeeping based on the 2013 Assessment; Made substantial progress in implementing their Public Financial Management (PFM) Improvement Plan as determined by DBM;Have technical capacity to implement the project, as determined by the concerned NGA/GOCC (on a per project basis); andHave no unliquidated cash advances from participating agencies based on existing auditing rules & regulations (on a per agency basis).



10. Project Implementation

If an LGU is INELIGIBLE to implement a BuB Project, the project will be implemented by the concerned NGA/GOCC;

LGUs that poorly implement their BuB projects in 2013 will NOT be provided funding for their priority projects under the 2014 BuB Program.


FUND SOURCE:

Participating agencies and the DBM shall incorporate the funding for the implementation of approved BuB projects of the targeted cities and municipalities into the FY 2014 National Expenditure Program.

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012, December 20, 2012

REPORT / FEEDBACK MECHANISM:

Mapping of the approved project of LGUs/communities shall be posted in the NAPC website

Documentation of the process, including experiences and lessons learned and possible recommendations/ suggestions for improvement, shall be done by an independent entity to be contracted.


Activity Timeline

NAPC conducts orientation of Regional Poverty Reduction Action Team (RPRAT)

Dec 2012

NAPC & DILG in coordination with RPRAT prepares for poverty reduction planning & budgeting

Dec 2012


Activity Timeline

Regional Poverty Reduction Action Team (RPRAT) conducts Orientation Workshops for LPRATs

January, 2013

LGUs conduct LPRAP Workshops & prepares their LPRAP (Note: details of this process will be discussed by the NEDA-CAR representative)

January to February,

2013


Activity Timeline

LGUs submit their proposed priority projects to DILG Regional Office

February 15, 2013

RPRAT/Agency Regional Offices validate priority projects submitted by LGUs

February 16 – March 28,

2013


Activity Timeline

Agency Regional Offices give priority & incorporate BuB projects, then submit proposal to their ACOs

February to March, 2013

DILG Regional Office/RPRAT submits validated list of priority projects to NAPC and RDCs

March 29, 2013


Activity Timeline

NAPC consolidates regional lists & endorses consolidated list of projects to ACOs

March 30 to April 5, 2013

ACOs submits their 2014 proposed budgets to DBM including BuB Projects

April 15, 2013


Activity Timeline

LGU provide counterpart funds for BUB project in the preparation of their CY 2014 AB

June to Oct 2013

NGAs and/or LGUs implements BuB priority projects as funded in the CY 2014 GAA

CY 2014

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3, series of 2012December 20, 2012

performance-based incentive system

Documents

grant of performance

performance monitoring

performance criteria

performance categories2

existing incentive system

ranking of personnel

good bureaus

current incentive system