ANNEX A

GCG MEMORANDUM ctRcuLAR NO. 2012 - ll

COVERNANCI COMMISSION

INTERIM PERFORIIIIANCE-BASEOSYSTEI{ FOR GOCCS COVERED BY

18 Sepiember 2012

SUBJECT

OATE

BONUS (PBA)R.A. NO.10i49

WHEREAS, On 20 JLrly 2012. PRESIDENT BENIGNO S. AQUINO lllformaly ssLed ExEcurNE ORDER No,80.'(E.O 80 s 2012) whrch rn

Section 1 thereof ionnaly adopled a Performance-Based Incenlve (PBl)syslem tor lhe National Governmenl beginning Fiscal Year (FY) 2012consEting oi rhe following

(a) P.odlclivity Enhancem€nt Inc€ntive {PEl} rn iheamount ol P5 000 shalr conlinLaly be granted ecrosslhe-boa.d, rn accordan@ with lhe guidehnes io be rssued byDAM':

(b) Perfom.nc€-Based Bonus {PBB) - whch rs a lop upbonus gNe. lo peBonne of boreaos or delivery units inaccordane with lhen conl.ibulion to the accomplshmenl olfien Departmenl s overa lla.Oels and commtmenls '

WH.R€AS Seclon 0 oi EO 80 provdes thal il o.y 6vers aldepartm€nls agencies. SUCS. and GOCCS that remaid under thejuns.ticrion ol DBM." and in lact Section 7 lhereoi ercolt ges lre GCG toadopt lhe polcies and prncipes contaned r lhis EO and issle thenecessary guideines for GOCCS wder iis t!risdiclDn pendrng themplementaron oi rhe Compensalion and Posiion cassificalon System(CPCS) for GOCCS as mandaled under RA 10149 Seclion 4 lhe€olorovdesthal Govemmenl-Owned or-ControlLed CoDorations (GOCCS). w h

exisrng authorized performance-based ncenlrve or bonls syslems shalharmon ze the same wth rhe PBB scheme

WHEREAS. Section I ol Republic Act No 10149 iormally designated 3srhe Gocc Gavemance Act af 2411 \RA No 10149). mandales thecommiss on to develop a Compensal on and Posll on c assifcal on syslehICPCSI which shaLl app]y to al ollicers and employees of the GOCCSwhether undei the Sala.y Sta.dardEaiion L& or exempttheretrom and shallco.ssi ofcasses ofposirons golped into such catego.ies as the GcG may

,EiIIsd 'D RECT NG THESYSTEM FOR GOVERNMENI

l:::^1""'-9 ii ^,

ADOFTON OF A PERFORMANCE'BASEO NCENTVE

delem ne suo./€d ro Oe apprcval ot the F tesident.

WHEREAS, in addilion, Section l0 (,4ddlio"a/ /,cerltves) oI the Aclprovides that "tte GCG ray @onmend b the Presidenl in@ntives rorcedain posiiion litles in consideralion ol the good performance oithe GOCC:P@vided That no incenliees shallb€ granted unlessthe GOCC has tuly paidall taxes for which il is liable, and the GOCC has declared and paid all thedivide.ds reouired lo be oaid underits charlefor anvother las"

WHEREAS the comm ss on s cur€nl y rcl iig out lhe workplan lor lhedeveLopment of lhe CPCS for GOCCS whrch shall Lnclude a perfomane-based incentives lor Dnecto6. OfficeE and Emolovees ol th€ GOCC Sectorwhich is expecled to be completed and sobmined for approval of thePresidenloiihe Philppinesd!ringthe aslquarterolFY20l3:

WHERas, conside.ing lhe limiled penod remaining for FY 2012, a.d lheneed lo provide lor an inle m PBllor lhe GOCC Sector @veEd by R A. No10149 that parales n the meanlm€lhe same aystem adopled ror lhe otheragences wihrn lhe Natiofal Government durng lhe period that the linalCPCS lor GOCCS is being developed lor finalapp.ovalof the Presldent of thePhilippines. lhe Commission consideEd it prodent to adopt in the inte mpenod the same Performance Based Inentive as covered bv E O No. 80 (s2a12)l

NOW, THEREFORE, in @mplian@ wilh His Excellencys dnedlve, iheCommission n ts en b€rc meeting held on 18 Septemb€r 2012, reso ved loromally adopl an INTER|M PERFoRM^I{C€-BASED lNcENlvE (PBl) sysr€r,. FoRrH€ GOCC SEcroR covered by R.A No. 10149. pending lh€ tomal issuaneand approvalby lhe P€side.t of the linalCPCS lor GOCCS, as lottos

L Adhsring to the policies and pdnciple. contai.6d in E.O.80,s.2012, a copy of which is attached herelo and made an integralpart heGof as Ann.t A:

ll. Subject to tho followins Guidelines provided in l rER-AGENcyTASK FORCE ON TIiE HARMOXEANON OF NATIONAL GOVERNMENTPERroRir^NcE, ito FoRr||c. tNFofl^noN ar{o R€mRr[iGSYsrEr€ Meho..ndum Circular No. 2012-l {t3 Auqust 2012),a copy of whi.h is attached herelo and .nade an integ.al parthereot as Ann6t B:

how6ver, clarifiod and/or emen.led to particut.rty cover GOCCS ,s

1. Stbnision ot GOCC Prcg@s, Prcjacts dd reryer$. -Adopting Guideline I0 ol lhe InterAgency Task Fo.ce MenoCaular No 2012-1 the covemins Aoards of each GOCCthrough their chanpersons and cEos shal sobmit to lheCommission for tansnitatro the InteFAgency Task Fore heacomplished Foms A. A 1. and B on or betore 30 Ocrob€r?!12. baseo o. lhe GOCC s apo,oved Co oo,are prar ro2012 and/o. Corpo6te Operat ng Budgel tor Fy 2012

2, Efieci of Non-Submb3ion. - Plrsuaot to Gudetine 9.0 ofiheInie.Agency Task For@ Msmo Circular No2012-1. non,submisson ot the requned forms shall render Ihe GOCCineligble for lhe Pertormance-Based Bonus ior FY 2012

3, Fun.ling fot the lntedn PBl SysirD, PuBUant to Section5(b) of E O. 80, the lunding to suppori ihe Interm PBI Sysl€m@vered in lhis Cncub. shallbe charqed by GOCCS lrm thenGspecrNe corporate tunds subject to lhe approval ol $enespeciive Governing Eoards in accordance with €pplicablelds, rules and regulalions.

4. Enployee Coverage.s -4.1 Corerage. Employses who occupy Eqular, €sual or contractual

positions shall be enlitled to the PEI atrd PeB Drcvided:

a They are stillin seryice as of30 Novenber 2012i and

b. Tney have.endered al leastfour (4)months olseryice to. the yearto be entirled ro lhs lur amount ot ihe PBB Those who haveendered less lhan iour (4) months ot *tui@ shall be enrirled to thePBB in pro-rated amolnts.

4.2 Exclusions. Ercluded fiom the grant of lhe PEI and PBB are thosehired wilhoul employer+mployee relalionships and paid from non-Personal Services appropriations/budgets. as iollowsl

a. Consullanls and €xpens hned to perfom specillc aclivities orsetuices wiih exoected outDols

b. Labo€B hired lhrough job contEcls (pakyaw) and those paid onoiecercd< basis:

c Siudeni laborers and aoorenlies and

d. lndivduals and groups of people $hose seNlces are engagedthrough job oders. conlracls ofserui@ orothers sim larLy sitoaled

5. Period Covare4 - The hleiirn PBI Stsled shall cover FY 2012 and everyliscal year thereaier untirlhe CPCS ior cOCCs s officiarly promutgar€dand comes into eilecl pursuanlto themandale under RA No 10149.

Ths C.cular shalllak€ effecl immediately upon ils publicaiion in IheComm ssion s websile V/W gcg gov ph

ffiffiCESAR V. PURISIiIIA

0059110ctrcular No 20114.4 e^rirred-Guide nes on t)e G.nl or Poducr'v'ty(PEr) b Oovenmen( Empoyees tbr Fsca Year (Fyl 2011 105

f-.7'^.rra- AIGF-A E rca|ACrO

RATER 3. BT'TruO

@-:G/f.I-oREl{cb a AB D

DaM Seorclery

ANNEX

IE:=laE,.€?:=-

MAI-1CA\AN PAL CE

BY THE PRESIDEITiT OF TIIE PHILIPPINES

EXECUTIIE OROER NO. A'

OIR€CTING THE 'OOPTION

Of A PERFORI/IAI{CE,BASED INCENTIVE SYSiEI'FOR GOVERNi'ENT EMPIOYEES

WHEREAS, lhe.e is a need b €lional[e the cu@nr nce.livs ssten 'ngovemft^l ahich s g€nerally chaEcleized by acoss-he-5oad bonlses lhai a€

g'ven unrtcrfrryb alrcivi s€ruanlsi

WH€REAS,lh* 's

a n6sd lo strenglhen pe.iolmne mon'bnn! ehd appraElexisling 3t€tems tke tha orcdnizarjonst Pertomana ndicEtor

FEmem( (OP F)whicn is b€inq lsed by the Dep6nm6ntot Budget and Manag€menr(OBM) i. measue agencl pe.fomance, Ihe StEl€gjc Pedo.man@ rv.naQemntsysreh (sPMs) ol rhe cflil seNi@ com$6s'Dn {csc) qnich tinG indivdu.lpenomance Io oBa.Etonal penio.da.@. and Ihe R€sulrs.Basen Pedodancel\,lonibnng Syslem (RBPMS)

WHEREAS, .etuce .etiwry by lhe bure.edct €n he 'hp6v4 hy linkiiepee.nd h@niives 1o ilre b!€au o. ij€ruery !.(s pedorman@ ana rsoog.,zng.^drewa'nin! erenplary p6rlom.nca rn lhe plb ic secror

WH€REAS, lnere 6 a necd ro 6labrish a^d 'mprenenl

a pedo@neAasl@nliw tPBr)Sysremlhal wir!molivale h€her perlomanc€ and !@ar$ acFulxabiilyr. rhe plbr'csecror and e.slrs the a@ofrplishment oi conmilhenls and laQ€ts lnderlhe fv€ (s) Key RaslLt AGa5 (KRAS) raid down r EtetnNe oder (EO) No. .13 (s20r1, a{ rhe Pnrpp,re Oe€bpftn: Pr.1(PCP) 2011.mr6:

WHEREAq Admnistr.rrc Ode. lAO) No. 25 G 20i1) seeks to eslabtsi aund€d and

'mearalea RBPMS acoss al d.panmenrs and aqenc$ *irh,n the

Etectn've B6nch ot Gove6mei{, in@lporatinq a coorji sel pedorm&e scoe€d.and c€ar n9 an ae!6le. a@ssiue, and oprodais qov€mm€ntdoe. secto.at. an!oBan'zalo^ar perloman€ nlomarjon sFl:m whch shaf be osed as bass rorde€mlnin€ enltlerun lo p€.foh es, or compensalion

WHEREAS one or lhe qovemi.q pnnciDles ot th€ Senare a^d Hoose oiRep.ese^btves Jonr ReslliDn IJR) No 4(s 2oo9), olheB,se (^own., the'salarySlandardizarron Law (SSL) tii'is the *rabrEhmen! ot a pAr 3cfEne w\ich at6napegnri eff6r: b o'gan'zr4.ar oerloFance io,&rd e\e-otrry 1,t{1'rs;.w€ r-pedom'n9 insrlrurions aid

WH€REAS P€sden|arO6cr* {PO) No 985. pD 1597. itepubrc Act iqa) N.r6754 as a@nden Dy Senare and Hou€ ot Rep'esedahves .lR Nos i ano ralhonze! lie Pr.edeni ro apphve pol'ces.nd ev-.ts or anowantuls rnd oenejis

Now. THEREFoR€, I, BENIGNo s. AoUlNo lll, P6sded ol lhe Phili9pines

by vinue ol $e po@6 resled in @ by lh€ c.nslitution and applieble las. do haBbv

SECTION 1, Adopiion ofa PBI Sysrem, APBI syslm conssling ol lhePoductiv'tv Enhadmer lEnli\e (PEr) 6nd the Pe.tomanc*Based So^us (PBBi

shallbe adopled i.1he nalions gov€mmenl beoinninq Fis€ Year(FY)2012

The PEl, in lhe amounl oi P5.000, shall contMlly be 96 €d amsslne-boa.d. in ac@dane *lth the goideli@s lo be isued by DaM

Th6 PBB, whlch 6 a lop{p bonus, shal bsgive. io p€ennd or buea6 ord6ll€ry u.it3 in addare lilh then co.l.ibulion to the a@mdiehtu olthBir Erapanmenls ow6rltaEele and @hm heds subjed 16 the rolbwoq

ii Amdplishmeni of good lovemn@ @ndiiions *i by ihe hle.AgercyTask Force (IATF) crcaled underAo 25.

sEclloN 2. ouidelan.s tor th. PBB. The lolbllnq gudelines and principlesshallqovam lh€ PBB eche@:

a. The PSB shall be chaEcleE€d 3s a sysiem of €nkrng units and personnewilhin an oaaniation a@dirE b $6n psiomane as tEsur€d byvenfiable, ob*Nable d€dibl.. and suslainable indicaloG oi penorma.ceb€6€d on th€ lollowhg pllla6:

' oepanmenfs lvtaFr Final ourpuls:

Acnie@renl bv lhe Dep.dmenls oi peifomane €a€rs uider |henr6r4riF r&ior Finar oulplts (MFo6), and Prcrily P@gBm/Pbje.lcommthems a6 ageed wih the PGsdent undd ihe 5 KFlAs und6r Eo

l'. Deoa.tments mmmitmenE lo the P€sidenl wh ch a€ supporlive ol lhepnodh.6 u^de. Eo 43 r and

ii Good go€manc€ @nditions to be debmined by IATF under AO 25

b. Flexibilily shall be povlded to the heads oi deoadnenls and .ge^cies lo EUir

rn€ PBB systefr io lhe natft oi their ope€tions and L dae peakDedome6. in 1em5 ot the d€r€mination of rhe aopopiale Jellvery !ni:s lob6 €warded and $e oedorna.ce indcaloBl0 be used and

c. lherc shelr be appopnate @mmunicslions sl6legy and publicadon o{

m inl itnLmfim

ped@n€ taecls and ammplishmenls in rhe d€padhenl and agen.y@bsiles and lh€ @bsile ro. rhe RBP[,ls to ensu€ t€nsoarencv and.ccouoiabiLity h ihe hplementarion ol the PBB sheme

SECIION 3. P..fod.nce Caiego.i.s and R.ies ol tnc€ntive The ahounrol the PBA shall 5e based on the padorma.ce ot the depa.tments, b!.eaus o' detteryudils, and oi the individual employes. Departtrenl s4retaies .r their duty desionaEdoficials shallrank the bur€sus or delivery lnits tnctudinq anached agenci€s accordngio thetr perlorma@ following a rcmat distribulion

The PBA sh5ll be disldbuted a*oding to the fotowng Echeme for FY 2012.sirholt prqud @ 10 the revision dr€Fof in succeed ig yaa6, as nay be apprdd byfE PBided, ed re]:llmendatbn c{the IATF:

-Cedffiru

G-o949cE?e 15,000 I 10,000 5.000

Bueaus a.d indiv du.b uAo receive . Beld Satisisclory p.rfortu@ Etinq wi[not be quarifcd rry rhe PBs

SECIION a. Pronibltion .g.lnst th. GnntofNow.nd Addtuonat t.c6.sin lne Rat s or E!.d,E In@ntiv6 a.d Bon!*. The granr ot auoMnces.r@nlN$ and bonuses other than lhose aulhoaz6d unde. SSL End an! nc@* inl}e ..st.ng and aLtt^o',€d .are< l-e'ero' ohe. rrn whal ,s p-doed tor F tnB EO.

Gryornmenl agenc€s. inctuding G@emh€ni-Owned or _aonioledCorporario6 (GOCC€), wltn existng afrEdzed p€doman6b6ed i@ntte o. bonlss]slems shallhaDo.ze th6 same with the PBB schere

SECIION 5. Fundl.g. Fuds .eeded td the grant ot ihe pBB to @eredempby€ shall b€ charged against the lolowi.g:

a ror depanmnb. bJ€aus, ano agencrB 'nLtuo'{ state unv€Btria and

Colleg$ /SUCsr lhe -ees:.ry tuNs shal be !ra.q{ aga,nst rhelviscellan€ous Pe6onnet Benefts Fund (MPAF) in rhe GeneralAppropriatD6 Ac1 {OAA).

5 Eo GOCCS neiJrs'oqmFjea oe.hdr96o agaasr rrf r$pe4ve:oQora€ tuhds Tlc @ ot tuG tor @ purpo* shat b: subjtr1 to heapp@val ol then esp*tiv€ govemiog b@rds in accordance Mh appti€bie

rffirlriffiiiiilffiir

^ SECTION 6, Cov.rage. -h<:O shE @re, dn d.pamFnrs. age.c,es SUCS

and GOCCS rha: rehar !nde' ihe ruredd'on oJ DAM

sEcTrON 7- Appt'cabihty ro cOCCs unoer lh€ Ju,sdicrion of CCG -recoveru(e Co-nF{ol on GOCCS {GCGr e en@uzgeo lo adopr the po,c.e anoplnuDres @rlaihed n rh,s Eo a.d

'r<re lhe nRessarv gJoe -eq !o. ooccs u1de, [sr!'.sddo- 0e.dn9 or rfF corpereE,o^ a-d Dor{o-

CLassif cation Syslem {CPCS)torGOCCS as mandaled under RA 10149

- sEcnoN g. Appric.b'r'tv to rh. Leg'sbr,ue .nd Jud,ci.t B..nche>, .ndOther Orfices vesEd with f'sc.taubnomv tre Co-g,ess r,d.c,.ry Co.s urora.comdssio.s and lhe ofi@ o ihe ofb dsman ae en@uraq.d b aoorl ihe ptuv s,onsol lhis EO to be €lioible 10 the PBB

sEcnoN t- Roteof thetaTFintregrantof ti.pBB-ThetaTFu^derAo255ial rohular. ard issre h6 'rorenen'ng Eo a srt p,o, d.acs <ra_ce 10 agelc'es n l'e idelil:.d.o- ovalidanon systed ior agency epons and aeomotishmsls

The IATF u.def AO 25 may entiel the aEs6rance or othar agencies i rhenpifr..tation of lhe pov s ons ol this ao

The Coflm6sr* on HEher Edlcarron {oHEO) shat €sue addjrEnamPemenlLng glide ine:ior SUCs

SEC'ION lO. S.par.hilitt Claus.. rf any provie,on ol lhB EO ,s d*taednvald or un.onsliial o.al. the olh6r provrsons nol aftecred thereby shal ehan vaid

SECTION 1r. Ropeatinq Cl.lse A ordeE rues roguat,ons and Nsuancesor pali3lhereof, shich aE incons'sleni with thLs €o are heeby epeared. amended or

sEcIloN 12, Eftectjvity. Ths Eo s\3lt lake efiecl mmedralev uoonpublcatlon ,n a nev/spaps ot gene€r ci@l.iior

OONE, in ihe City ofManira. lh+orh day of JulyLord, T@ lholsand and Twete

V\ ' i'-' "" '\"'t'iL-U

PAdJriO N. OCllOA, JR.

r.Enl|nm c0PY'

lfiulfixtll u[qq[IIOAL

*'--::.-+.a

lwiINTER,A6ENCY TASI( FORCE

ON THE HARMONIZATION OF IIATIONAIGOVERNMENT PERFORMANCEMONITORING, INFORMATION AND REPORITNG SYsTEMS

(Admnsrarv6oderNo 25s 20r)

MEMORANDUM CIRCULAR No. 2012"1Augost 13,2012

TO All Herls of D€p6rtiEnts/ Bu@u4 Offrc ,nd other Agen.i6 of thex.tidal G()vdlMI/ includlng state univor.ities and college5,and Govenment-Orned o.-Controll€d Co@Etions

Guidell.B on th€ Casding or Detartn€nt Perrormane Targetsin Unewnn E e€ltive Order (Eo) No. a0

SU8:'ECT:

1.O BACI(GROUIiID AND RATIONATE

t.2

In aeordan.e dth the Gdemmenfs comditment to aeountabiitu and"1"a'.e go@mdre. P-e'de-t se19ro S. AqLiT ttl sue. aO No 30oatea)!ly 20, 2012, Aie.ting the Adoptton of a Petfomanceaeed l@a4reslstsn hv Go@Mrt Enploy@5" to mottwte highd p€lfoman@ andgreate. a@untabillty in the plblic seatlr and enso@ $e aeomotishFent ofcommtments and tllgetr under the rve (5) xev Rauit areas of theAdminlstratio as laid ot n e0 No.43 and SE Phitlppine Osetopm.nt ptan,2011-2016.

Beginnng 2012, such ince.tve sysrem shat/ consist of an aooss be"boardIncentive in the fom ol the distjng Prcductivity Enhancement Incenttw(PEI), and a top up bonus to be knM as Pefofrances.*d Sonus or p3B.

-" oCI 'n

rr,aorn o'P5.000 ydt onbr-at,, be g,orteo '1o. oroan,.

wth t"e gudeli-es Lne Dcoadne r o. Buoge anoManagement (D3M). ne P33 sha I be give. to rhe peEonnet of bu@!5 ordeljvery units in accorda@ eith rheir @nribuDbn ro the ac@mpti$ment ofrhe' OepdMentj orc.c.lb.oec oad cornine.rs suq< to rFe .k.Land conditons sot fodh herein

fte q6ot of rie p8g eks to:

a, Recognize and reward exenptary pedormance n tne ouorc se(or @enhance *frice deliwry by the buEaucEcy;

1.3

b. Rat@aJize tne disrrjbution of ircntiB ffi pefoma.e ocqori.sof group3 and indMdlals and tnereby move tuay nom accs-rhe-boart in@ntiv* over t fre;

sedlon 11 of EO No. 80 prcvldes that the role of the InterAgenry Task Forceunder AO No.25 arc as followsr

Nurture tefr spifit t@.ds the efiectjve s4ution ot op€.ational plansby linhng pemnn€l inentE to the blreau or di*ry unifs

StEngthen perromaice monitonig and apphsal lrstems based onqistjnq tsts lik€ trE Orqanialional Perfomane IndicatorFramew!4 whid is u*d by the DBi4 to mesue ngen t pertodance,the strateglc Perfomance Man69ement Ststem of the clvl s€toiceCommlsnon (CSC) whlch link individual perfomanc€ to organrzatjonarperfomance, and the Real6 aa*d Pei*france lilanagdeit SystemF@ided fd under AO No. 25, isued on D@mber 11, 20ll,

2,0 PURPOSE

2_l

2_2

a. F.rmulate and ise the implementinq quideli€ for the rad EO; and

b. Assst agencles in rie denbfi.ation of the pedomance indlcatoB andtargets, an! impiement a €lidabon gystem lor agency reports and

To p@de 9ujdelin6 on 6e osding of tlP depatlnst p€rfomaeeta4ets to tne @mponst bueau (s*ond ldel) or p€ftjnent deliwry unit

To defne the ols dd EpoEib itjs of the depanmdts and codponentbu€auvuniq the Dep.irne.t of 8'rdgEt a.d ,,ranagment (DBM), and otherde6ight aqencl$ ln tne @*.di.S ot perfomanc indlcato6 and taBets.

To eet the timetable for subFision, revis and app@al,2,3

3.1 This cncubr cowF all Depadhents, &6.j6, and Stite UniwEitig .ndcoue96 (suc) *hio\ are na.dated to hpl4enr the P8B by linue of

F.r Govsnment-owred oFco.Eoiled Corpo6bons (@cca) undtr the)udsdiction of the DBltl d enlmeEted und6 annq a, addib@t gutdeliE5hall be iseen to gui& the @sding enrci* and rheir covedq€ by se<nion7 of EO No. 30. h the case of the Loc.l water Dilticts (!wDs), the Lo.alWater lltilities Adhlnlstraton (LWUA) shall asist in prepanng these

3.2

1.3

3.4

3.5

For GOCG and GFrs under the Judsdictio ot the Govemance cofimissron torGocG (GcG) whlch aE e.couEled to 6dopt th€ p€.fomance basedlncentjw srsten, sepadte qlLdelh* $al be lssed by the GCG ror treplrp6e as pdid€d for under s€djon 3 ot Eo No. a0-

Far sucs, the imd46tatid slEll b€ @ordhat€d wiltr the conmi$En onHish€r EdlGtlon (CHED).

fte Conqress, ludiciary, Consntltronal comh$ions and the Orfi@ or theOmbudsn.. are €nmrag€n to.dopt the pEvlsions of €o No. 30 to be

eliqib|e to the PertoiE@Bded Bon6.

DEFTI{ITIOiI OF iERMS

llajor Fi.al Outplt {r4FO) - . g@n or swke th.t a departnent B mandat€dto deliwr to extenal clEnrs thrcuqh the lmplementltion ot prcgEftactiv t6 and pojed* It m.y be a srul€ @tput q grorp of @FuE tnat aresihilar in oatu€, targettd at dle sme oEanization.l/se.to. outcome andcapabre or b€inq summanzed by 6 @hmon pedotmance indl@tor'

r4Fo Peformance Ind 6tor (PI) a draracte slc of performan@ (quanuq,quality, timdns or con) that s to be measred and will lllustrab tnestandard bv whid a departnat 6 dp€ded ro ddis its fo. & spe.medIn Eo No. 40, the a{Fo PIs should b€ rennnbq obsvable, qEditle ande,s'rbre, espe(rary rd tont rr.e frs on< o'depannelts/69e($.

4.3 Peformance Tnget (FD - 6 predetemlned numere target Ldel otpefomance (quantiiy, quallty, timeine$ and cost of an olt ut) aga nstwhidr *lual perfofiarce cn be @mpa€d and for which a ndn, d4iatjonand tltrd line 6n be Gldlated o@ dme,

Oepartment - a pnmary sub-division of dE Er{utlw B6nch fesponsible forthe overall managem€nt ot a sector or a national o.cern lvlth natiswrdelhpact, It is headed by a oeo6.tlHt sectary wlth 5a ary GEde (sc}31,Fof pu.po*s of dris cjrolar, th6 tem indudd dep.ftrnqHecl entjtle erdras tne consututronar c@nrsros.

Blreau a p. mary $b-divislon of a departnent or depa(nent- ryel entityresmnsrbre for a maior functionar okf, of $e ratier, A bureau orequivar€nt omc€ perioms erther llne or staff turclons, and rs uslalv headenby a DjEctor posinon at SG-27 or sG28. For plrpos ol tl*3 clrcular, thisterm imludes tte deparhenfs .€gioml offc4.

Deliwry unlt - a l@er sutrlvldo^ or a depaftment or departmentievdentlty whlch is a major imp enenuhg am of tne depann€nt ahse ii has setup a) pedoimance brgets/cofrmltments in the fom of MFos or rcfommn€stoner,, and b) a monitodig or repo.thq rystem to reqrla y track eidtarqets/dmmlt@nts within tie year and have the rerlFed by a hiqh€rl*l off,ce witnh the depanfient. h m6t 6ser the perfomane targetsare @v€@d by nn ag@ment betwen the hed of the delivery unit and thehead of the hlgher l€wr ofllce ind noied . r form of periomance convadwrrich s revlewed and uodared lua.t€nv or 5emlannuallv, Uerce, ior OPWHr

thk deliwrry !^it can perlrin to a oist lct Englne ng Office wn@perfoma.e is venf€d bV the elional offces. For DOri, d'is can be areqiona hosplt l whe pe.formnnce s supeNsd/qulded by the Ce.t€r or

5.0 POLICYGIIIDEIINES

To motivate hightr lewls of pedqmare .nd prcfote ac@lnrrbility l. theblrea*fad, the PBB shalll

5,1 8e bas€n on wdfabe, oberyable, @dlble, and elst ln.ble IndrcatoE orpe.fomance alons illree pllrars, namelyr O ue departneds I'lapr nnaloutputs {MFc1.), (il) tne dep.tfndrs p o.,ty mmitnenE to dE P€edent;and (lii) 9@<t g@mare ddtioE to be detmin€d by tlE lnter&€ncyTask Foc underAo No,25:

5.2 e€ based on a system of rank n9 organizalonal units and peEonnel wlthln anorgan Dti6n a(ordr.g to thelr pelfmafte alonq the prll.6 sbted above;

5.3 P@ide se nqMry to lhe heads of departrnents and a9€mi6 to suit ti.PaB stsiem to the nature of their opeEdons and to drlve peak performe6i intems of the deteminarion ol the apprcpdate der'@ry lnlts to b€ rewardedand the oerfomance indi@toB to be us€ii .nd

Ensure transpaienct ard acolnt bility in the impldentaton of SE PBasFten in the dep.rtn€nt and bureau or dellwry unlt nrrcugh tie conduct of6n approFiate @mmunctlons stratelv, Includlnq the plbli€tion h thedeprttnent /aqency w€bsrte and the @b61te of the RaPMs when tnls is

6.0 CRIIERIA A|lO CO OIfIONS TO QUAUFY FOR THE PBa

To quliry td $€ P83i a depadndvagefty oust @ply wilh the following

a. Tn€ir MFo targeb sbnltted to con96; and

b. Their prio.lty program/pDjec! tarqet' aged with the Pr6ident liderthe fiv€ Kev R*ult keas of Eo No. 43.

i4eet the 9@d govebance cmditiontr€qulemenG *t by ihe AO No, 25Task Foc annsllv under rhe Erfoman@ div6 0f the RBPMs. F.. theliEt year ol implemenratlon. tne spftific dndltions a€ 4 foll*:a, Under the linancla stew.dshlp area, l) mandatory podjnq of bldget

Eports (aEency TEnsparency seal)i 2) p6rj.g of arl invit*rons to bida.d e.d€d @nEacts ln dE PhilioDire &\@@nt Elett_.nkP@.€@nt system (PHILGEPS); and 3) Iiqlidauon widin the

6.2

reglamentary p€ od ol a/l c*h advaG g€nted to otnoab/splovees

b, Und€r inteinaL process effc ency, establilhrent or a Citzen's Charter of

PROCEDUMI GI'IOEIINES

7,2

7.3

The deparvnents shall start by rwiewing the MFos, p€formance ind6to6,and largets as declared ln the oPlF B@k ot oltputs for F/ 2012, and the kevprosram/prcl€d talgeE agaed wlu' the Preidenl 6p€tl.l y tho* relat d tothe 5 Kev Result Are6 und€. EO No.43, A.B A ptent'. runr ng lst otthese commigne.ts lith tJE P6ident whlch are beng monltdEd by lnePrsidential ManasementStafi (PMs).

The departnEnts shall eled, prisftlze oi name the 3 host significant@d(manc€ lndlotoE of outlait and oiltcohe under 6cn alFo to 6ptuE *EdimeNds of queljty, quanq, and thelins. Dep.ftrMvagsEi6 wh'.nhrw key prc96nvp6i{ts wtbl p€fio@n@ tirgets for FY 2012 agre€d wfithe P6ident ehall a|9 pnoidze .nd featue th6e p-.rfoma@ tatge* (e 9 ,

4,6 million intematlonal toud3t &dvals for the oeDarbnent of Tounsmi 40,000cassr@ms const ucted 6r the Deparfnent of Edu6tion, elc.) Ln additon !othe MFo Pls and PTs rn tl€ oPlF B@k of olt'uts for Fl 2012 Fbndiied,jparEhenttagqo6 $E|| abo pnodti4l'€ Mplia@ to pta6 stindards1br the d€liwry of st6 dedared uod6 U€ Ant'Ed lape A.t (ARIA) among6eil r.lFO tafgets .nd ene.t them in F$m A or in Fom B if th6e aEcomnltt€i to the Presiien! All a9€nci6 shall feature outputs and outomesamong thei. f4Fo targets and iot ntemal/lr'tsded ate outpuE d

The |@lting ta.!€ts @netmding to the MFos and key P.o96hs/9otsct5sharl be deefred the ba*line comnrbnent ot the depal'neIt fof cY 2012 tobe casGded to ower level unts. It is understood that depaimdts sharadopt MFo taoets which hav€ been adju$ed 4 a result of the budgetaryevLsions made by congB h nnalizinq $€ FY 2or2 General appophaboNA.:t, ItE sh@ld haw beei abniBed to 03M an me SudqEt ExationE4@ments (8EDs). H@wr, n no cae wil tne MFo t rgeB De lo@ tnanthN adiwed by the Depanment and the bure.us/offices in FY 2011.

Th€ compon€nt bu@us/officetunits choen by tft dep:rttnent to De

Epsdbl€ fr the deliv€ry of tne i,lFos and k y pog6mtpioj*€ shaf beidentir5ed. fte detartne^te shall allGte dong dE r6poneblebureaL9oftc^n'ts OE FY 2012 tarqets @ponding to dle few el€ded dpnoribrd ?Is which aE stateglc to olganlzatjon5l g@ls and vinlch wlrldefrethe p€rfornan@ of the deplnment, Thee @aded bureau/ofice&nit targetsshall be 'set on a quaneny basis to en{re $e tmelinss of @ruice dellwry.

A dekrtrn.n! may drGe vadds l€\els of delivsy units to hdude in itspefoman.e b.ed incsriw system dependlng on tle compldity of itsopefatjons and dE /€dn65 of iLs perfoimane monito .q system. Hene,while a vp ca dcpartment nay choose to rate the pe.fornan€ of t5 rine and3tafi bur€aus aid .eqlona ofrces, . mofe dccenEzlized deparrrhent may

chooe t! rate its buealr and are .ts p@lin.ial G distdct otnces if it hda more establlshed perfomaice monitoring or rating ststem,

Ofiices under 'Suomn b OeEriom .nd 'GendEl Admnisrhtion andSuppon SeM6'*rich prolid€ adminjslEliv. and l6clh'el suppod lo lheboreaus 6po6jble 10. lhe delv€ry ol tE MFos and fte keyp4@ms/propcls shar beciv.n$! (2)P s each.6prun^g rh6 dim€nsronso'i quarty and iimeriness ol seryices speched by ih6 deprnmenr h6ad tor1.h..€ otfies Th.3e Prs can b€ in addilion loihe sood 0 ove rn ane conditionslo be sd by lh. AO No 25 InlerAsemy T.* For€

In escading lh. taaer.. oonsideraton should be given ro thedepadneofs sl.alegic plan, bude€lary .ll@alion and nlmbe. ol .x,slinq€dproy6e5 in the bureaus for FY 2012 P.domance |8rce|s identifi€d rorb! r6audof,i@ e .h ould be n6asuBble and o@ntfiable to ar@ verlcalron

Oapadnenls sh.rl adopr . p.rri.lpari€ a.d conluliarive prc@s6 inc.!€ding the laoels rt is imponanl rh.l rh€se rarg.B should bc agGedupon beh{€6n lhe d€parldenl s€cretary and {hose head n0 ihe

R€ferto Fo6. A, A-1, and a lor lhe tmpl.res mC$eding ot O€panmenrPedoma@ T..g6ls fte d.p.nmenc shallinclude lhc MFos. Pb and PTsot alhchen age.c'es and lin. ahd slatrbucaus n lh6f slbmissloi6 ot these

7.10 ll in $e pme36 dl €seding ta,!ers. the dopann.nl reatizd lndthe@ a.e adl$tm€nrs need.d in rhc s@irtralon ol MFos, Pr3 andPTs lh.y may slbmi! b DB[,t lhe revkod MFO3. Pr6 .nd PTs rog.rher withlhe odqinalon$ and lh6 expl.nalon for Ih. change. It ih.re is also a i.ed lor66rrucru€ th€ .g6ncy Pr6!6m9AcliMti.rP@jecls (PAP.) to beiler .rlgnlhem ro MFos (ie, s a rur6, de PAP anribursd ro one MFo) .nd rh. 5 KeyR€ulr acs I,o make lhe €.@ding po65s manag66ble, lhe d.panme.nm8y slso subhit rhe rcvi.€d PAP sltuclure ton@i^o lh€ ouiderin& lnderNal onal Budg€i C rcutar(NBC) Nd.532

Bec.':se th6 d.p.henrs hav. ar@ady sub.nirred $en €3p.rrire raael5 looBM .nd ro lh. Congrca3, rh.y a€ onry pemined !o nake upwad

apDrcved budgel.ndmnsislcniwithlh€ aq€ncys wofk .nd fnanc.i panas Eubmilled undd NBc No 534 R€duction of taoets shan nol be atowedFunh€r as me.lloned in 53.bove. Ln

^o @* win thee rVrFO tarOots be

l,)rer lhan ft6e achimd w rhe oe@nment and rhe bleaus/oftes i. FY2011

712 Fof addltiofal ouidane on the dpeciticatioi or p€torr.ne indicatorc andlh€ c.scadinq ot MFos, deprrlmenls en.sf$ lo ch.ptsE a and 5 ot theOPIF ReteEne Gud€ p@led in lhe DBM sbile w dln od.oh

Osp6nmen€ mEy also conruft or .s( asislan.. fiom rho DBMburea u s/offr@s conc€ rned n lhe €sc.dnq ot MFOS Pts aid PTs

adjushenl 'n

rh6irp.dom.n€raBers rhd €n be suppod.d

8.0 TIMEIdIIE AI{D OTTTER R'TATED ACTrvTTTES

9,O

8.1

8.2

8.3

Th€ depairnents shall submit to the D31.4 (Bldget and Management Burea!in cha4e of the agency) both electdnlc and p ited (oples or theaccompllshed templat6 n Foms A A-r, and 3 not latd tnan allgud 30,2012, sucs and @ccs rhall {bmit to CHED and GCG, resp€.livdv, o orbeio€ the ead date. DepartodrB and agmcls whidr ae not able to submiton o. beiore sid date shall be a*$ed ar not beina readv to implement thePBB and hence shall not be e lqib e to lie bonls.

ukewi*, ttP DB and the odE Mbers ol dle Interagecv Tdk Fq€under Ao No, 25 (i,e, NEDA, CCIA and CSC) shall @j4 th* s.bmisions as

to the consistency ot ldentjfied bucau/offlce t rgeE with d1e deparsn.n(s FY

2012 perforunce targets as refrect€d ln tne oPI: Eook of odplts and tnepstmnt aEDs, thelr codst ncy srdl the Resllts uatrlc unds dE PoP, tJEA i R€d Tape Act (AATA) at wdl 6 to lhe quhy or t'€ pdfomanc€m*sue and tarqets, DepatunenE and a9end6 who@ PIs and PTs do no!@6dV wlth tie <te.la shall a p be as€d as not belnq ready to mplementnre PBB.nd hence shall not be eligible to the bon6, The em€ p@s shan

appv to suG, @ccs, and GFG, .nd dE pertrnot N6rqht aqency.

Departments shal publish dElf approved c.sded MFot PIs and PTs and

auaderlv accomoLlshde.ts n thek esp€{tlve websftes or offic al plblicationsror va.lparency. Th* sh.ll al$ b€ plbllshed in the RBPMS when eid

D€padnents shali estblish or eihdnce ller p€r'formance honltonng aid€va uati.. systems to strengthen dle implementatj@ of the PBB schefre. TheDBl4 and otns o@ight agend$ shall v.lldate ac@mpllshm.nt rcPorts and@dud spot ch<ks of a.tuar pelfmarce.

A senes of chulals wli be i$u€d by lie Ao No. 25 InterAgency T4k Force topovi.le addidonal 9!l!€llB on the qdnt of tt€ Pa.fomance-aaed Bonus.

EFFECI OF tloll-COT,IFLIANCE

Non-comoliance with this ilemorandlm ordlar and subsecuent pertnent circulaGto be ised by the ao No- 25 Ta3k Fbrce $.lL @der |he grcnment entjryinel glble for the Pedo.man@-Bas€i Sonus for Fl 2012,

1O.O APPLICAAIUTY TO TIIE I.EGISIAIIVE AI{O JUOICTAI. BRANCIIES, AI{DOTTIER OfFTCES VESIEO WIIH fISCAI AUIONOIIY

Tne congress, ludciary, co.stitutioial commisrlons and the offr@ of theOmbudsman .re €ncour.ged to ltollow dE povisions of EO No, 30 and thisMemorandlm Crrcular ro be eligibh tD the Pdfomance'Based 8onus.

11,0 EFiEC'wITY

This Memorandun Orclla. shall tak eafdt idfrediatelv

+- >*z''

'LOREIICIO I. AIAD

+cretlrY, Depannftt of Budget .nd i4aMgement5.d chaldan, ao 25Inter&enc] Tasr ture

RUNNING LISI OF PRIORITY DROGRAMS AI{D PROJECIS IIONIIORTD BY 'IIS

PRIORITY PROGMI'IS AI'IO PROIECIS

@2, Ru. Afrer laa Evade6 (MrE)3, Run After fte Smuode6 (MTS)

RESPOI{SIALEAGENCY

-csc/o1LGDOF/BIRDOF/BOC

4, Revenue lnteqriv Protecdon seNice (RIPS) DOF5. Condiuonal C.sn TEnsr€r (@n DSWD

6. Communitv-Bas€d Employment Pnaram {C8EP)?. Educton Barklog (cnst'rcton of Oass lring of

.ED€pEd

NHI,/HUDCq9. Informal settler Families (lsn Housinq uuDccr0, UniEel Health care (PhilhealthEnrclEentl DOH

11, Emolovn€.t G€neration DOLE

12. Prio.itv Inftast'rdlre Proi.tsDOT

Food Self-Somdency (RJce Produ.lon 6nd ImportationLe!€ls/Ifi iqation Facllltles/Farm.to-Market Roads)

15. Upgrading of PhlllppLne Clvil Aviatlon froh catesory 2 tocateqory r

DOTC

DND

t7. Payapa at Masagamng Pamayanan (PMAr'{A)/PeaceProcess

18. P€ace and Oder Sltuaton (Crim€ Inddence/Soiutioo/

19. Tralnns for Work Schola6hip Pmgrim OWs!L

DILG/DND

20. Tramc,{no in Persons DOIDILG/MINDA

22, National G€enino Poarcm DENR

?3:!la@nar Renewable Eneqy Prcqram DOE

24. Geaiazard MaoDina DENR

25. Busness Peht and L:censino SvsE- (8pLS)26, Sitio Ele.trificauon

DILGDOE/NE4

LISI OF GOCC5 UI{DER tHE lt RISDICnON OF Dall

a atdgko tutctl1, 8angko S€ntaL nq Plliplnas2. cental Sank - Boad ol Llquldato6

& tre9'td' rntdtttbn

l. tung Cents of the Phlllppl64. Natond Krdney and Tracpl.nt Insdtlte5, phiEppie cent6 fd E@mk cl6Eloc.6t6. Phi[ppiE qfld63 M€dol Gnler7, Phnir'riE Heart Cdlter8. PhliDplm lnsthJte tor De\dopn€nt sodies9. PhiliDom Rice R6@ftn bg!tute

C E@lto|ti. Zqte AqrMatu

t. Au@ Padfc Emlc .nd F€.Pdt zore Autho.ity2. tutlDrity of FeDotA@ of Bat a.3. C.gayan €tdmic zone aluE ltv4, PhilipDine Ec.nmlc zode artlEdrts, Subic Bay l'4etropolitan AlrDnV6. Zamboa;qa Ory Sped.lEon@ic zde Authtrltv

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CASCIDTXG OF OEPART ETI PER'OruIAXCE TARGEIS

3.3.d oi ttE otqaniadonll Pc'fomre rndl@tor Fffili {oprFI d€paftN shrn 3p€dfyth.k Mdjor Fhar ou9ut! {ll|For), 'ppdpitat

p€ftrmane ridt@to(i breeb, and oBpondis

Thrs rom shan b€ a@mplLshea as rdls:MFo ad P€lfo@ Idl6to.s (Qultlatt€ a.d/6 Q@nrlratic) - knkde ueMFos and PIs ldDt hare kr agr&d upo., hambEd and lmlly dfif,n damngst uE aqeicy head. NEoA and $e mri.

supFdr'r to o9ectrons (5r0) lndJ@ftr6 sere<t did p djtbe indkatoB ofa.trvltles [t t 9rovrde tehnrol and rub5r.ndw 3uroori ro lle oFEtL6 lndprcJ..ts or the d€F/rr€nva9e^t1. Ite ap |drvrltr whi.h @.'lbuE ro orenbrc uE (l€rr€ry of eMc hn rhkrr by rh.@rv6 do nd rod@ tE

Gger adnhiftEon .nd srpp..t seii6 (Grss) rr{k 6 s€bd knl66d *dvrd6 de.ring {rn tn prcvtsron of (rcn addritsrree manas€m.nt lndiou*keph9 suppot to the entlE asen.l opehtlon,

Frcm the .rstnq hdhatoci the .gency shall ldsll! at €st 3 p.rloman@hdlcatG ts d.]r r,{Fo, oBu ng oE dten5lqa d quadry, q@Iv 4dtdn6, lnd d reast 2 p€tomre Indi.rt6 4dr for GAss .nd sto,Gptudnq qElty and r'ndl|E n! agPnry 5h4td dty de indbroE rhat arciddb|!o'hepgfqma@ofd€.mfu.don!o'bEd€!6'tne.tand

of dE PErdsnrs sodar €ont€.t eflb.d|cd|nt\.clust€rA.donPl,istlble and morn reevanr year afr.r ye.r and @n be ers{y nsure! .idrjpon.a h ! ucly mnGr, naktng tr uetut lor detslon make6_

Dep.tunefr fY ?0u Budg€t s9€fitu nmc.r .tdfl pprtainmg to lhebudg.t o. EE dcpr'mts. Thh 6n be tured fim fte G@r

^pp€rEtbE

Derarfi.nt FY 2011 Ad6r A@plhhmed - spefic numedat pdlomne

Depa*nnt n 2012 Tarser - Th. ialqd of rlle d.96ftnt for fr €nrr€ yar,rHch ourd be 3r@d lld u. oert .qdE/. a]fultilhed "Fom B, or dE&sry Pq6mR @a6,Rgpondbre sr@gD.ti€ry unrs rndide th€ blEuv.,etiv€ry rnils that areEp65ibl. lor $e deli€ry of th€ MFO5 indkabd h oiumi 1

rv 2012 Qs@4y T@ - hddLp r,€ rrel6 t rqeE o. a qJanervbss Tnt @rd be acJ from ih€ sbmrEed aqen.y budqet.

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CASCADTNG OF DEPARTMENT/AGENCY PERFORi,IANCE TARCETShrdcions (Fom s)

'tnis fm *alr b€ acorpti.jhed as fottos:

Glumn (1) Key Pfog6rns/pElecrs - proEa|n5 and pblects oi a departhent srtponjnq arry ol rEflw (t &t Rsult Ares oMkr Eo al, sitn pqfo.tu@ tarqeE for Fy 2012 agreedupon wtul ft6ident Aoujno.

Proqbh/Proje<t D.sqrpntr of obj€dires - a bhef de*rjplo of obje.dvs/goats ofbe Phg6m/pol<t under cdhn (t)-

Oeip.ffnent FY 20U A.tra r'compt$nenr sp€cific actuat pertormanerneas! Ement of the deFrtrient tor FY 2011.

Column {0 Depadnent Taq€tt4,i €stqE - deparrMt raEets q .nit€EtoE for th€pogam/pbtects undef co umn (1) for FY 2012. Tte targers asigned ro e*h bueau

T.Ial ProgEm/Proldt &dg€r - total budget lq dE pdoftty proq€dvDmt{t fron dart

p,og'cm/eoFcr audqei,o' Fy 2Ot2- oe spe.tfi. oJdget fo edlh p.ogEm/prclec fo'

Fesronslble B!.eus/Detircry UniG bureautoffes/untrs t drF depanmene,po4slbe ro lhe delvpry o' tne peldtuM urgerj rlr tre plgcrr/ projeG

column (3) FY 2012 BureartD€[€ry rhrt Tatgerrrlr 6t6s - Fy 2ot2 quartedytarsets/mrlestones of perrorh6nce ot the b!@us/oince/unts in 6rumn (7). Thetargets a$rgned ro each bureaqunit 5hal be tsted for ctr ty.