Republic

of the Philippines
Department of Labor and Employment
NATIONAL LABOR RELATIONS COMMISSION
Quezon City

ADMINISTRATIVE ORDER NO. 12-01

(Series of 2021)

In the interest of service, and pursuant to Memorandum Circular No. 2021-1, 03 June
2021 on the Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year
2021 under Executive Order No. 80, series of 2012 and Executive Order No. 201, series 2016
and to Memorandum Circular No. 2021-2, 25 October 2021 on the Supplemental Guidelines on
the Grant of Performance-Based Bonus for Fiscal Year 2021, the following are the criteria and
conditions for the grant of PBB:

I. Memorandum Circular No. 2021-1

1.0 Purpose

This Circular is being issued to prescribe the criteria and conditions on the grant of the
PBB for FY 2021 performance, to be given in FY 2022. The overarching goal of the PBB to
strengthen the effectiveness of the incentives system to help agencies achieve the mission-
critical objectives and expected outcomes of the government. For the FY 2021 cycle, the PBB
criteria and conditions were hence refined in order to:

a. Simplify the PBB process particularly the validation of compliance;

b. Provide flexibility to the agencies in the implementation of the scheme;
c. Reinforce the results focus and their inter-linkages e.g., budget utilization and Physical
accomplishment, in assessing the overall performance of agencies;
d. Administer a more transparent PBB scoring system;
e. Strengthen the role of agencies in ensuring accountability of units/individuals
responsible for the criteria and conditions; and,
f. Facilitate the timely release of incentives to eligible agencies.

In line with this, the FY 2021 PBB shall measure and evaluate the performance of
agencies with emphasis on the public's satisfaction on the realization of the agencies'
performance targets, quality of service delivery, efficiency in the use of resources, and
strengthened agency stewardship. In relation to the targets in previous PBB cycles, the FN 2021
PBB criteria and conditions shall be categorized according to four (4) dimensions of
accountability: Performance Results, Process Results, Financial Results, and Citizen/Client
Satisfaction Results. Given the progress achieved in the Good Governance Conditions (GGCs),
these shall no longer be included in the criteria to assess the overall eligibility of the agency for
FY 2021 PBB. However, since the observance of these conditions shall still be used to determine

Ben-Lor Building, 1184 Quezon Avenue, Quezon City

website: www.nlrc.dole.gov.ph email address: nlrcmis@yahoo.com

the eligibility of delivery units and individuals, the monitoring of their compliance shall now be
the primary responsibility of the Heads of Agencies.

This Circular also specifies the modifications in the PBB assessment process to make the
PBB Scoring System clear and explicit. The scoring system aims to simplify and make the final
eligibility assessment more transparent, and enable agencies to undertake self-assessment vis-
a-vis the criteria and conditions to ascertain if they could qualify for the grant of the FY 2021
PBB. However, the AO 25 Inter-Agency Task Force (AO 25 IATF) shall still determine the final
eligibility of agencies.

2.0 COVERAGE

The FY 2021 PBB covers all departments, bureaus, offices, and other agencies of the
National Government, including Constitutional Commissions, Other Executive Offices (OEOs),
Congress, the Judiciary, Office of the Ombudsman, State Universities and Colleges (SUCs),
Government-Owned or-Controlled Corporations (GOCCs), Local Water Districts (LWDs), and
Local Government Units (LGUs).

2.1 The implementation of this Circular shall be done in close coordination with the
following agencies:

a. Department of Budget and Management (DBM) for the Departments and

attached agencies;
b. Office of the President-Office of the Executive Secretary (OP-OES),Office of the
Cabinet Secretary (OP-OCS), and DBM for the other Executive Offices (OEOs),
including the OP-attached agencies and GOCCs covered by DBM;
c. Commission on Higher Education (CHED) for the SUCs;
d. Governance Commission for GOCCs (GCG) for GOCCs covered by R.A. No.
10149
e. Local Water Utilities Administration (LWUA) for LWDs; and
f. Department of the Interior and Local Government (DILG) for LGUs.

2.2 The personnel of agencies holding regular, contractual, and casual positions are
covered by this Circular. Excluded from the coverage herein are individuals
engaged without employer-employee relationship and funded from non-
Personnel Services (PS) budget.

3.0 ELIGIBILITY CRITERIA

To be eligible for the grant of the FY 2021 PBB, each agency must satisfy the criteria and
conditions under the four dimensions of accountability: Performance Results, Process
Results, Financial Results, and Citizen/Client Satisfaction Results and attain a total score of
at least 70 points based on the PBB Scoring System as will be discussed in detail in Section 4.0.
Please refer to Annex 1: Master List of Departments/Agencies

In the context of the FY 2021 PBB, the Performance Results refer to the
accomplishment of the Congress-approved performance targets under the Performance-
Informed Budgeting (PIB) of the FY 2021 General Appropriations Act (GAA). This physical
target is an existing eligibility criterion for SUCs and is only reinstated in the case of the national
government agencies (NGAs). Process Results refer to the achievements in ease of doing
business/ease of transaction with the agent y as a result of streamlining, standardization i.e.,
through the ISO-certified QMS or its equivalent, digitization, and related improvements in the
delivery of services. This is an existing criterion for NGAs and the GOCCs covered by the DBM.
Financial Results refer to the actual spending of the agency's budget allotment vis-a-vis the
realization of the committed programs and projects based on the FY 2021 GAA. The
Disbursements BUR as well is a prevailing common target of all agencies. Another existing
criterion for all agencies, the Citizen/Client Satisfaction Results refer to the achievements in
satisfying the quality expectations of the transacting public.

For FY 2021, the GGCs shall no longer be required in determining the overall PBB
eligibity of the agency. Nonetheless, compliance with these conditions shall be used as the basis
in determining the eligibility of responsible units and individuals. See Section 5.0 for details on
Agency Accountabilities.

4.0 FY 2C 21 PBB TARGETS, ASSESSMENT, AND SCORING SYSTEM

The agency accomplishments for each of the criteria shall be rated using a scale of 1 to 5
(where 5 is the highest). Each criterion has an assigned weight, as shown in Table 1. The
maximum score that may be obtained by the agency is 100 points. To be eligible for the FY 2021
PBB, the agency must attain a total score of at least 70 points.

TABLE 1: FY 2021 PBB SCORING SYSTEM

PERFORMANCE RATING
CRITERIA AND WEIGHT 1 2 3 4 5
CONDITIONS

Performance Results 5 5pts 10pts 15pts 20pts 25pts
Process Results 5 5pts 10pts 15pts 20pts 25pts
Financial Results 5 5pts 10pts 15pts 20pts 25pts
Citizen/Client Satisfaction 5 5pts 10pts 15pts 20pts 25pts
results
TOTAL SCORE MAXIMUM = 100 POINTS

 As can be gleaned in Table 1, a performance rating of 4 in all criteria will yield a total
score of 80 points for the agency. To be able to attain a total score of at least 70 points, the
agency should aim for a performance rating of 4 in at least three (3) criteria. In such case, while
the agency will be eligible, the unit most responsible for the criteria with i performance rating
of below 4 will be isolated from the grant of the FY 2021 PBB.

4.1 Performance Results. The targets under Performance Results will enable agencies
to concentrate their efforts and available resources on their mandates and core functions, as
well as ensure delivery of high quality and high impact activities.

a. For NGAs, GOCCs covered by the DBM, and SUCs, achieve each one of the
Congress approved performance targets under the PIB of the FY 2021 GAA;

b. For GOCCs covered by RA No. 10149, achieve the physical targets reflected in
their approved FY 2021 Performance Scorecard and eligibility requirements
specified in a separate guideline to be issued by the GCG;

c. For LWDs, achieve each one of the physical targets as identified by LWUA in a
Joint Memorandum Circular to be issued by LWUA and DBM; and,

d. For LGUs, achieve the performance targets based on the Guidelines on the
Grant of the PBB for LGUs to be issued by the DILG and DBM.

The agency performance in the achievement of targets shall be closely monitored

through the use of the submitted Unified Reporting System (URS) - generated Budget and
Financial Accountability Reports (BFARs) to indicate the progress towards the accomplishment
of broader societal and societal outcomes targeted by the agency for improving the lives of
Filipinos.

The quarterly BFARs of the agencies, as uploaded in the DBM URS, shall be s emitted in a
timely manner, i.e., within thirty (30) days after the end of each quarter, as provided under Item
3.15.2 of National Budget Circular No. 583, pursuant to Section 9C. General Provisions of
Republic Act No. 11518 (FY 2021 GAA). BFARs will be used to monitor and validate agency
accomplishments.

The Performance Results shall be assessed and scored as follows:

TABLE 2: RATING SCALE FOR PERFORMANCE RESULTS

1 2 3 4 5
 Met less than Met less than Met at least Met at least Met each one of
80% of 80% of 80% of 80% of the performance
performance performance performance performance indicators of the
indicators of the indicators of the indicators of the indicators of the Congress-
Congress- Congress- Congress- Congress- approved
approved approved approved approved performance
performance performance performance performance targets FY 2021;
targets FY 2021; targets FY 2021; targets FY 2021; targets FY 2021; (all performance
deficiencies deficiencies due deficiencies deficiencies due indicators)
due to to due to to
controllable uncontrollable controllable uncontrollable
factors factors factors factors

4.2 Process Results. The target under Process Results is the greater ease of transaction
of frontline services covering all government-to-citizens (G2C), government-to-businesses
(G2B), and government-to-government (G2G) transactions. This may be achieved through
streamlining especially of frontline services; standardization of frontline processes including
those implemented at the Regional, Satellite, and Extension Offices; digitization e.g., by
developing electronic or online paperless systems, new service delivery channels, contactless
transactions; and other process improvements for faster and more efficient public service
delivery.

a. For departments/agencies and GOCCs covered by the DBM, the target under
Process Results is the greater ease of transaction of frontline services covering
all government-to-citizens (G2C), government-to- businesses (G2B), and
government-to-government (G2G) transactions.

b. For SUCs, the target is to assure quality of service delivery through ISO-
certified QMS or its equivalent certification of frontline services.

Agencies should report and provide the objectively verifiable evidence of their
achievements in ease of doing business or ease of transaction from the perspective of the
transacting public e.g., actual reduction in processing time, documentary requirements,
transaction costs, and other tangible improvements. Agencies may use the Modified Form A to
report their streamlining and digitization accomplishments. The ISO-certified QMS or its
equivalent certification for frontline services, service delivery standards manual, and the like
may be used as evidence to the standardization achievements of the agency.

The Process Results shall be assessed and scored as follows:

 TABLE 3: RATING SCALE FOR PROCESS RESULTS
AGENCY 1 2 3 4 5
a. For No Achieved Achieved targets Achieved Achieved
departments demonstrated targets to ease to ease targets to ease targets to
/agencies ease of transaction(stre transaction(strea transaction(str ease
and GOCCs transaction amlining, mlining, eamlining, transaction(s
digitization, digitization, digitization, treamlining,
covered by
standardization standardization)i standardizatio digitization,
the DBM )only for non- n less than 80% n)in at least standardizati
frontline of frontline 80% of on)in all
services services frontline frontline
services services
No Achieved ISO- Achieved ISO- Achieved ISO- Achieved
b. For SUCs demonstrated certification or certification or certification or ISO-
standardization its equivalent its equivalent its equivalent certification
/quality certification certification for certification or its
only for non- less than 80% for at least equivalent
assurance
frontline of frontline 80% of certification
services services frontline for all
services frontline
services

4.3 Financial Results. For agencies and GOCCs covered by the DBM, attainment of the
FY 2021 Disbursement BURs; and for SUCs likewise achieve the FY 2021 Disbursements BUR
and the FY 2021 Earmarked Income targets.

Targets under Financial Results reflect final payments made from the agency's annual
budget allotment to realize their committed programs and projects based on the valid
appropriations for FY 2021. Hence for FY 2021, agencies shall accomplish the following
Disbursements BUR:

a. Disbursements BUR is measured by the ratio of total disbursements (cash

and non-cash, excluding PS) to the total obligations for MOOE and CO made in 2021, net of
goods and services obligated by December 31, 2020, but paid only in 2021. The total
obligations for MOOE and CO shall refer to those made from the FY 2021 GAA, FY 2020 GAA,
and Bayanihan II appropriations due to their extension under RA No. 115191 and RA No.
115202. The objective is to measure the disbursements for the obligations for MOOE and
CO made in 2021 from all valid appropriations. These shall be net of transfers to the
Procurement Service (PS), the Philippine International Trading Corporation (PITC), and
implementing agencies and units which have still to be implemented and outputs delivered.
Hence

 Total Disbursements (cash and non-cash, excluding PS)
Net of payments made in 2021 for past years’ obligations
Disbursement BUR = Total Obligations (excluding PS, from valid appropriations)

Where Total Disbursements is net of transfers to PS, PITC and other

implementing agencies which have not been delivered

b. BUR for GOCCs is computed as follows:

Disbursements BUR = Total Actual Disbursement/Total Actual

Obligations (both net of PS)

c. Agencies with fund transfers either for operating or program subsidies or

both, shall also achieve and report the same Disbursements BUR for NGAs for all
the subsidy releases for 2021 from the three appropriations sources above.

d. BUR for SUCs is computed as follows:

d.1 Disbursements BUR is the same as those for agencies.

d.2 since all earmarked income of the SUCs (e.g., trust funds, internally
generated income, and revolving funds) should benefit and improve the SUCs
operations, its Disbursements utilization rates will also be reported following
the formats in Annexes 5, 5.1, and 5.2: FY 2021 GAA Accomplishments, BUR Form
for SUCs, and All Earmarked Income.

The requirements under the Financial Results shall be scored as follows:

TABLE 4: RATING SCALE FOR FINANCIAL RESULTS

1 2 3 4 5
1-19% 20-39% 40-59% 60-79% 80-100%
Disbursements Disbursements Disbursements Disbursements Disbursements
BUR BUR BUR BUR BUR

4.4 Citizen/Client Satisfaction Results. Achieve the Citizen/Client Satisfaction targets

as provided below. For NGAs, GOCCs covered by the DBM, and SUCs accomplish and submit
reports on the Citizen/Client Satisfaction Survey (CCSS), and resolve all reported complaints
from Hotline #8888 and Contact Center ng Bayan (CCB); and for LWDs and GOCCs covered by
RA No. 10149, accomplish and submit reports on Client Satisfaction or feedback system as
prescribed by LWUA and GCG.

a. To determine the effectiveness of streamlining, standardization, digitization,

and other process improvements in easing transactions with the public, agencies
have been encouraged to embed feedback mechanisms and systematically
measure citizen/client satisfaction in the delivery of services since the FY 2018
cycle.
 To provide evidence on the citizen/client satisfaction results, agencies may
report the results of the CCSS following Annex 4: Citizen/Client Satisfaction
Survey.

LWDs and GOCCs covered by RA No. 10149 shall report the results of their CCSS
or feedback mechanism based on the standard methodology and corresponding
questionnaire prescribed by LWUA and GCG.

b. Resolution of reported complaints from Hotline #8888 and Contact

Center ng Bayan. Agencies shall ensure resolution of all complaints and
grievances on government service procedures, acts of red tape, corruption,
and/or other interferences to public service delivery by any government agency,
individuals, or instrumentalities reported to Hotline #8888 and CCB. To provide
evidence on this, agencies may submit a report summarizing the #8888 and CCB
complaints received in FY 2021 and their status if resolved or pending.

The validation shall be complemented with reports and collected data on

feedback and complaints from citizens/clients gathered by the OP, PMS, CSC,
and PCOO from Hotline #8888 and CCB databases, as well as the FOI portals.

The requirements under the Citizen/Client Satisfaction Results shall be scored as

follows:

TABLE: RATING SCALE FOR CITIZEN/CLIENT SATISFACTION RESULTS

1 2 3 4 5
No submission/ Average to low Average High High
Did not conduct satisfaction rate satisfaction rate satisfaction rate satisfaction rate
CCSS with unresolved with 100% with 100% without
#8888/CCB #8888/CCB #8888/CCB #8888/CCB
complaints complaints complaints complaints
resolved resolved

5.0 AGENCY ACCOUNTABILITIES

To sustain the institutionalization of compliance to existing government-mandated laws

and standards, agencies and their Performance Management Team (PMT) shall continue to
implement, monitor, and enforce compliance with the following requirements within their
agencies:

a. Updating of Transparency Seal f. PhilGEPS posting of all invitations to bids

b. Compliance with the Freedom of and awarded contracts
Information (FOI) Program
c. Updating of Citizen's or Service Charter g. Submission of FY 2022 Annual Procurement
d. Compliance to Audit Findings and Plan-Common Use Supplies and Equipment
Liquidation of Cash Advances (APP-CSE), FY 2021 Non-Common Use
Supplies and Equipment (APP-non CSE),
Indicative FY 2022 APP, and the results of FY
2020 Agency Procurement Compliance and
Performance Indicators (APCPI) System
e. Submission and Review of SALN h. Undertaking of Early Procurement Activities
covering 2022 Procurement Projects

While the above conditions are no longer required in determining the overall PBB
eligibility of agencies, compliance with these conditions shall be used as the basis in deter lining
the eligibility of responsible units and individuals. Agencies should submit these legal
requirements directly to the oversight agencies.

6.0 ELIGIBILITY OF DELIVERY UNITS AND INDIVIDUALS

6.1 For FY 2021 PBB, the delivery units (DUs) of eligible agencies shall no longer be
ranked. However, the unit/s most responsible for deficiencies shall be isolated.

a. Based on Table 1, to be eligible for the FY 2021 PBB, the agency must attain a
total score of at least 70 points. To be able to attain at least 70 points, the agency
should achieve a performance rating of 4 in at least three (3) criteria. In such
case, while the agency will be eligible, the unit/s most responsible (including its
head) for the criteria stated in Section 3.0 with a performance rating of below 4
will be isolated from the grant of the FY 2021 PBB.

b. The unit/s most responsible (including its head) for the non-compliance with
the Agency Accountabilities provided in Section 5.0 will also be isolated from the
grant of the FY 2021 PBB.

6.2 Eligible DUs shall be granted FY 2021 PBB at uniform rates across the agency,
including its officials and employees. The corresponding rates of the PBB shall
be based on the agency's achieved total score as shown in Section 7.0.

6.3 Department Secretaries, Heads of OEOs, Chairpersons, and Commissioners of

Constitutional Offices, Heads of Attached Agencies, Presidents of SUCs, and non-
ex officio

Heads of GOCCs covered by the DBM are eligible only if their respective agencies
are eligible. If eligible, their PBB rate for FY 2021 shall be equivalent to the rates
as stated in Section 7.0 and shall be based on their monthly basic salary (MBS)
as of December 31, 2021.
 6.4 Non-ex officio Board Members of GOCCs covered by the DBM may be eligible to
the PBB with the equivalent rates following Section 7.0 and these conditions:

a. The GOCC has qualified for the grant of the FY 2021 PBB;
b. The Board Member has 90% attendance to duly called board meetings and
committee meetings as certified by the Board Secretary;
c. The Board Member has nine (9) months aggregated service in the position;
and
d. The GOCC has submitted the appropriate annual Board-approved Corporate
Operating Budget to DBM following the Corporate Budget Circular No. 22 dated
December 1, 2016.

6.5 For SUCs, in case there is a change in leadership within the year, the SUC
President who served the longest shall be entitled to the PBB with the
equivalent rates following the provisions stated in Section 7.0.

The PBB rate of the SUC President who served for a shorter period shall be
based on the eligibility of the SUC where he/she served the longest.

6.6 To be eligible for FY 2021 PBB, employees belonging to the First, Second, and
Third Levels should receive a rating of at least "Very Satisfactory" based on the
agency's CSC-approved Strategic Performance Management System (SPMS) or
the requirement prescribed by the CESB.

6.7 Personnel in detail to another government agency for six (6) months or more
shall be included in the recipient agency that rated his/her performance. The
payment of the PBB shall come from the mother agency.

6.8 Personnel who transferred from one government agency to another agency shall
be included by the agency where he/she served the longest. If equal months
were served for each agency, he/she will be included in the recipient agency.

6.9 Officials and employees who transferred from government agencies that are
non-participating in the implementation of the PBB shall be rated by the agency
where he/she served the longest; the official/employee shall be eligible for the
grant of the PBB on a pro-rata basis corresponding to the actual length of service
to the participating implementing agency, as stated in Section 6.11.

6.10 An official or employee who has rendered a minimum of nine (9) months of service
during the fiscal year and with at least a Very Satisfactory rating may be eligible for the
full grant of the PBB.

6.11 An official or employee who rendered less than nine (9) months but a minimum
of three (3) months of service and with at least a Very Satisfactory rating shall be eligible for the
grant of the PBB on a pro-rata basis corresponding to the actual length of service rendered, as
follows:

LENGTH OF SERVICE % OF PBB

8 months but less than 9 months 90%
7 months but less than 8 months 80%
6 months but less than 7 months 70%
5 months but less than 6 months 60%
4 months but less than 5 months 50%
3 months but less than 4 months 40%

The following are the valid reasons for an employee who may not meet the nine-month
actual service requirement to be considered for PBB on a pro-rata basis:

a. Being a newly hired employee;

b. Retirement;
c. Resignation;
d. Rehabilitation Leave;
e. Maternity Leave and/or Paternity Leave;
f. Vacation or Sick Leave with or without pay;
g. Scholarship/Study Leave; and/or
h. Sabbatical Leave.

6.12 An employee who is on vacation or sick leave, with or without pay, for the entire
year is not eligible for the grant of the PBB.

6.13 Personnel found guilty of administrative and/or criminal cases by final and
executory judgment in FY 2021 shall not be entitled to the PBB. If the penalty meted out is only
a reprimand, such penalty shall not cause the disqualification to the PBB.

6.14 Officials and employees who failed to submit the 2020 SALN as prescribed in the
rules provided under CSC Memorandum Circular No. 3 s. 2015; or those who are responsible for
the non-compliance with the establishment and conduct of the review and compliance
procedure of SALN, shall not be entitled to the FY 2021 PBB.

6.15 Officials and employees who failed to liquidate all cash advances received in FY
2021 within the reglementary period, as prescribed in COA Circular 97-002 dated February 10,
1997, and reiterated in COA Circular 2009-002 dated May 18, 2009, shall not be entitled to the
FY 2021 PBB.

7.0 Rates of the PBB

The total score as stated in Section 4.0 shall be the basis in determining the amount of
the PBB an agency is eligible for. The maximum rate of the PBB for agencies that will achieve
100 points shall be 100% of the 65% monthly basic salary (MBS) of an individual as of
December 31, 2021. For illustration, see Table 6 below:

TABLE 6: RATES OF THE PBB

TOTAL SCORE PBB RATES
100 points 65%
(100% of the 65% monthly basic salary)
95 points 61.75%
(100% of the 65% monthly basic salary)
90 points 58.5%
(100% of the 65% monthly basic salary)
85 points 55.25%
(100% of the 65% monthly basic salary)
80 points 52%
(100% of the 65% monthly basic salary)
75 points 48.75%
(100% of the 65% monthly basic salary)
70 points 45.5%
(100% of the 65% monthly basic salary)

8.0 TIMELINES AND SUBMISSION/POSTING OF REPORTS AND REQUIREMENTS

8.1 The quarterly BFARs of the agencies, as uploaded in the DBM URS, shall be
submitted in a timely manner, i.e., within thirty (30) days after the end of each quarter,
as provided under Item 3.15.2 of National Budget Circular No. 583, pursuant to Section
90, General Provisions of Republic Act No. 11518 (FY 2021 GAA). BFARs will be used to
assess and validate Performance Results.

8.2 All agencies should submit evidence of accomplishments of Performance

Results, Process Results, Financial Results, and Citizen/Client Satisfaction Results (as
provided in Section 4.0) on or before February 28, 2022. Agencies are encouraged to
make an electronic submission (scanned copy of the official submission and editable MS
Word or Excel files for use of the AO 25 Secretariat).

8.3 Agencies shall ensure that all explanations and justifications for deficiencies are
already attached in their submission.

8.4 The AO 25 IATF shall conduct spot checks to validate claims and certifications
made by the agencies on their submitted/posted reports and/or requirements.
 8.5 Agencies are encouraged to provide information to the AO 25 Secretariat on
compliance with the Agency Accountabilities provided in Section 5.0.

9.0 EFFECTS OF NON-COMPLIANCE

A Department/Agency/GOCC/LWD/LGU, which, after due process by the oversight

agent y has been determined to have committed a prohibited act, shall be disqualified from the
PBB in the succeeding year of its implementation.

Moreover, the CSC or Ombudsman shall file the appropriate administrative case for
misrepresentation in the submitted/posted reports and requirements for the PBB, a
commission of fraud in the payment of the PBB, and violation of the provisions of this Circular.

10.0 COMMUNICATION AND CHANGE MANAGEMENT

10.1 Head of Agencies with the support of their PMTs should enhance the
implementation of their internal communications strategy on the PBB and fulfill the following:

a. Engage their respective employees in understanding the PBB, the

performance targets of their respective agencies, as well as the services and
outputs that they will need to deliver to meet these targets.

b. Disseminate the performance targets and accomplishments of their agencies

to their employees through the intranet and other means, as well as publish
these on their respective websites for the public's information.

c. Set up a Help Desk to respond to queries and comments on the targets and
accomplishments of their agencies. The Help Desk may be a facility that is
embedded in the respective websites of agencies.

d. Set up a Complaints Mechanism to respond to the PBB-related issues and

concerns raised by officials and employees of their respective agencies. Such
may be incorporated in the functions of their Grievance Committee.

10.2 The Head of Agency shall designate a senior official who shall serve as a PBB focal
person. The offices responsible for the performance management may be tasked to provide
secretariat support to the PMT and to recommend strategies to instill a culture of performance
within the agency. The name, position, and contact details (e-mail, landline, facsimile, cellular
phone) of PBB focal persons should be submitted to the AO 25 Secretariat.

10.3 The AO 25 IATF shall maintain the following communication channels:

1. AO 25 Secretariat at ao25secretariat@dap.edu.ph
2. RBPMS website www.rbpms.dap.edu.ph
3. Telephone: (02) 8400-1469, (02) 8400-1490, (02) 8400-1582
 4. Facebook: www.facebook.com/PBBsecretariat

11.0 APPLICABILITY TO THE CONSTITUTIONAL BODIES, LEGISLATIVE AND
JUDICIAL BRANCHES

The Congress, the Judiciary, and Constitutional Commissions are encouraged to follow
these guidelines to be eligible for the FY 2021 PBB.

12.0 EFFECTIVITY CLAUSE

This Memorandum Circular shall take effect immediately.

Certified true copies shall be posted on the RBPMS website and the Official Gazette, and
shall be filed at the University of the Philippines Law Center.

II. Memorandum Circular No. 2021-2

I. Purpose

The Administrative Order (AO) No. 25 Inter-Agency Task Force on the Harmonization of
National Government Performance Monitoring, Information and Reporting Systems (A025
IATF) has issued Memorandum Circular (MC) No. 2021-1 (Guidelines on the Grant of the
Performance-Based Bonus for the Fiscal Year 2021 under Executive Order No. 80 s. 2012 and
Executive Order No. 201 s. 2016) dated June 3, 2021.

Consistent with MC No. 2021-1, the Department of the Interior and Local Government
(DILG), Local Water Utilities Administration (LWUA), and the Governance Commission for
Government-Owned or-Controlled Corporations (GCG) shall issue separate guidelines for the
grant of the FY 2021 Performance-Based Bonus (PBB) for local government units (LGUs), local
water districts (LWDs), and government-owned or-controlled corporations (GOCCs),
respectively.

The Supplemental Guidelines shall provide clarifications and additional information on

the requirements provided in MC No. 2021-1.

II. Clarifications on the FY 2021 PBB Targets As Stated In Section 4.0

For FY 2021, agencies must submit evidence of accomplishments of the criteria and
conditions provided in Section 4.0 - Performance Results, Process Results, Financial Results,
and Citizen/Client Satisfaction Results. Agencies are encouraged to include in their submission
all explanations and justifications for deficiencies and non-achievement of targets.

The following requirements shall be attained by the agencies in compliance with the FY
2021 PBB criteria and conditions:
2.1 Performance Results. Agencies must ensure the uploading of the quarterly Budget and
Financial Accountability Reports (BFARs) on the Department of Budget and Management-
Unified Reporting System (DBM-URS), in a timely manner within thirty (30) days after the end
of each quarter. The quarterly BFARs shall be used in the assessment of the FY 2021
Performance Results accomplishments of the agencies.

For deficiencies or non-attainment of FY 2021 targets, justifications must be submitted

together with the 4th quarter BFAR to the DBM thirty (30) days after the end of the 4th quarter
of FY 2021.

2.2 Process Results. For the assessment of accomplishments under Process Results,
agencies may submit to the A025 Secretariat evidence and/or documentation of ease of
transaction through one or a combination of the following:

2.2.1 For Departments/Agencies:

a. Report objectively verifiable evidence of achievements in ease of doing

business or ease of transaction for frontline services covering all government-to-
citizens, government-to-business, and government-to-government transactions using
Form A as provided in Annex 3 of MC No. 2021-1. The report should highlight the
tangible improvements from the viewpoint of the transacting public in terms of access,
turnaround time, transaction costs, documentary and other requirements.

b. Report on the digitization initiatives or digital transformation of

frontline and non-frontline services through the development of electronic or online
and/or paperless application systems, payment systems, new service delivery channels,
contactless transactions, and other process improvements using information
technology. The report should highlight the tangible results of digitization in terms of
ease of doing business or ease of transaction from the point of view of the transacting
public.

c. Standard operating procedures, manual or documentation of service

delivery standards for frontline and non-frontline services of the agency, including
those implemented at the Regional, Satellite, and Extension Offices. The report should
highlight the tangible results of standardization of the frontline and non-frontline
services in assuring ease of transaction and doing business with the agency.

d. Valid ISO QMS certification or equivalent certification of frontline and

non-frontline services of the agency, as of 31 December 2021. The certificate must
indicate the scope of certification.

2.2.2 For State Universities and Colleges (SUCs):

 a. Valid ISO QMS certification or equivalent certification of frontline and
non-frontline services of the SUC, as of 31 December 2021. The
certificate must indicate the scope of certification.

b. Standard operating procedures, manual or documentation of service

delivery standards for frontline and non-frontline services of the agency,
including those implemented at the Regional, Satellite, and Extension
Offices. The report should highlight the tangible results of
standardization of the frontline and non-frontline services in assuring
ease of transaction and doing business with the agency.

Financial Results. Same as the Performance Results, the agencies must ensure the
uploading of the quarterly Budget and Financial Accountability Reports (BFARs) on the DBM-
URS, in a timely manner within thirty (30) days after the end of each quarter.

The submitted FY 2021 Financial Accountability Reports (FAR) No.1 Statement of

Appropriations, Allotments, Obligations, Disbursements, and Balances or SAAODB shall be the
basis in determining the FY 2021 budget utilization rate (BUR) accomplishment of agencies. As
mentioned in MC No. 2021-1, the requirement for the FY 2021 Financial Results is the total
Disbursements BUR of agencies. The total Disbursements is net of transfers to the Procurement
Service (PS), Philippine International Trading Corporation (PITC), and other implementing
agencies which have not been delivered. See Section 4.3 of MC No. 2021-1 for reference of the
computation.

Further, reiteration on the other BUR requirements under Financial Results as

prescribed in Section 4.3 pertaining to the BUR for GOCCs, agencies with fund transfers, and the
BUR for SUCs including the Earmarked Income.

Citizen/Client Satisfaction Results. Agencies shall submit to the A025 Secretariat the
results of the FY 2021 Citizen/Client Satisfaction Survey (CCSS) and may provide evidence on
the resolution of reported complaints from Hotline #8888 and Contact Center ng Bayan (CCB)
received in FY 2021.

2.4.1 FY 2021 CCSS:

Agency reports on the CCSS should follow the prescribed requirements and rating scale
as stated in Annex 4 of MC No. 2021-1 Guide in Conducting the CCSS. The report should include
a description of the methods and rating scale used in determining the FY 2021 Overall
Satisfaction Score for its services.

The agencies shall report the overall agency rating in the service quality dimensions and
overall agency citizen/client satisfaction score for the reported services.
 LWDs and GOCCs covered by RA No. 10149 shall report the results of their CCSS or
feedback mechanism based on the standard methodology and corresponding questionnaire
prescribed by LWUA and GCG.

2.4.2 Resolution of Reported Complaints from Hotline #8888 and CCB:

In consideration to its first year of implementation, the requirements under this target
shall only cover the resolution rate of agencies to the complaints received from Hotline #8888
and CCB in FY 2021. Agencies may submit reports, evidence, and/or documentation
summarizing the Hotline #8888 and CCB complaints received in FY 2021 and their status if
resolved or pending, as complemented in the data gathered from Hotline #8888, CCB databases,
and the monthly reports provided by the Office of the President and the Civil Service
Commission to all agencies.

Reported complaints and grievances shall cover government service and procedures of
the agencies, acts of red tape, corruption, and/or other interferences to public service delivery
by any government agency, individuals, or instrumentalities.

To determine the resolution and compliance rates to Hotline #8888 and CCB
complaints, agencies may refer to the following:

PORTALS RESOLUTION RATE COMPLIANCE RATE

Hotline #8888 The percentage of tickets The percentage of tickets
acted upon or acted upon or closed tickets
closed tickets by a by a government agency
government agency within the 72-hour period to
against the total number of take action, as prescribed in
endorsed EO No. 6, s. 2016.
tickets by the Hotline #8888
Citizen's
Complaint Center (CCC)
without
consideration of the 72-hour
period to
take action as prescribed in
Executive
Order (EO) No. 6, s. 20161.

Contact Center ng Bayan Negative feedback on Percentage of negative
(CCB) government services, feedback resolved by the
processes, and procedures agency within the prescribed
lodged through the CCB are timeline of 72 hours over the
considered resolved after the total number of negative
agency has responded to the feedback received within a
 referral and provided detailed particular period.
action taken to correct the
reported dissatisfaction and
prevent its re-occurrence.

If the particular concern
cannot be acted upon, the
agency has to provide an
explanation as to why it
cannot be addressed. The
negative feedback will be
considered resolved upon
receipt of the
reply/explanation from the
agency.

If the complaint involves an
administrative case, the CCB
will still forward the negative
feedback to the agency and
will request an update on the
status of the case. Upon
receipt of the reply, the CCB
will inform the customer of
the feedback from the agency
and will consider the ticket
resolved.

For Hotline #8888, a concrete and specific action shall refer to the actual and factual
action to the complaint. It must be within the mandate of the agency and a clear, specific, and
relevant response to the concern of the caller. As much as the circumstances permit, the caller
shall be given advice on the concrete and specific action taken or feedback on the status of the
concern until its resolution, and the agency shall inform the #8888 CCC, through their
respective #8888 Agency Portals, of the action taken on the complaint, concern, or request. The
#8888 CCC requires proof of concrete and specific action taken and proof of communication to
the caller.

d. The requirements under the Citizen/Client Satisfaction Results shall be scored

following this modified rating scale:

TABLE 5: RATING SCALE FOR CITIZEN/CLIENT SATISFACTION RESULTS2

1 2 3 4 5
No Low Average to Average High
submission/Did satisfaction high satisfaction satisfaction
not rate with satisfaction rate rate with
 Conduct CCSS unresolved rate with 100% 100%
#8888/CCB with #8888/CCB #8888/CCB
complaints unresolved complaints complaints
#8888/CCB resolved resolved
complaints

III. Clarifications on the agency accountabilities as stated in section 5.0.

Provided in Section 5.0 of MC No. 2021-1, agencies shall institutionalize compliance to existing
government-mandated laws and standards, and the requirements under Agency
Accountabilities. The Performance Management Team of the agency shall continue to
implement, monitor, and enforce compliance with these requirements within their agencies and
shall directly report or submit to the validating/oversight agencies.

3.1 Undertaking of Early Procurement Activities (EPA). As stated in Section 3.0 of

the Guidelines in the Conduct of Early Procurement Activities as a Requirement for the Grant of
the PBB3, to be eligible for the PBB, the Procuring Entities that receive budgetary support from
the National Government based on the National Expenditure Program are required to
successfully undertake EPA for at least 50% of the value of its Eligible Procurement Projects
(EPPs). Procuring Entities shall submit an EPA Certification under Oath to the GPPB-TSO on or
before 31 January of the fiscal year through email: earlvprocurement@gppb.gov.ph. See
Supplemental Annexes A, A1, and A2.

For reference to the deadline of submissions, agencies shall refer to the Agency
Accountability Timelines document provided by the A025 Secretariat following the issuance of
MC No. 2021-1. Agencies may also directly coordinate with the validating/oversight agencies
should there be any clarifications or separate guidelines pertaining to the FY 2021
requirements under this section.

IV. Effectivity Clause

This Memorandum Circular shall take effect immediately.

Certified true copies shall be posted on the RBPMS website and the Official Gazette, and
shall be filed at the University of the Philippines Law Center.

 Agency Accountability Timelines

For reference, agencies should observe the timelines and comply with the following
requirements under Section 5.0: Agency Accountabilities of Memorandum Circular (MC) 2021-
1:

Deadline Requirements Validating

Agency
Submit Certificate of Compliance that the agency GPPB-TSO
On or before conducted Early Procurement Activities for at least
31 January of 50% of the Total Value of the FY 2022 Procurement
the Projects to the GPPB-TSO.
fiscal year
Note: Early Procurement Activities should be conducted in FY 2021
March 31, 2021 Submit FY 2021 APP-non CSE to GPPB-TSO. GPPB-TSO
June 30, 2021 Submit Results of the APCPI system for FY 2020 GPPB-TSO
Procurement Transactions to GPPB-TSO.
August 31, 2021 Submit the FY 2022 APP-CSE thru the PhilGEPS Virtual DBM-PS
Store.
September 30, Posting of Indicative FY 2022 APP-non CSE in the GPPB-TSO
2021 agency's Transparency Seal webpage.
October 01, Maintain/Update the agency Transparency Seal (TS) DBM-OCIO
2021 under Section 96 of the General Provisions of the FY
2021 General Appropriations Act (GAA). The TS page
should be accessible by clicking the TS logo on the home
page.
December 04, Set-up the most current and updated Citizen's or ARTA
2021 Service Charter, reflecting the agency*s improved and
- extended on streamlined/re-engineered system and procedure for all
March 31, 2022 its government services to citizens, businesses, and
government agencies.

Departments/agencies shall submit their respective
Certificates of Compliance (CoC) to the Anti-Red Tape
Authority (ARTA) at compliance@arta.gov.ph on or
before March 31, 2022.
December 31, The ISO QMS Certification or equivalent To be provided
2021 (validity certification/recertification must be valid as of in the GQMC
of certificate) December31,2021. guidelines on the
Validation of the
Note: For compliance by departments and agencies which certification.
will use the ISO QMS certification/recertification as
evidence or requirement for the Process Results criterion
for the grant of the FY 2021 Performance-Based Bonus
(PBB).
December 31, Sustained Compliance w/ Audit Findings COA
 2021 Fully implement 30% of the prior years' audit
recommendations as shown in the Report on Status of
Implementation of Prior Years' Recommendations. These
recommendations will exclude the Property, Plant, and
Equipment (PPE)-related items of the Annual Audit
Report (AAR). Audit findings closed since FY 2019
should also not recur. The objective is to improve the
agency's internal control processes, enhance operational
effectiveness, and eliminate, resolve and remedy most, if
not all, of the agency audit findings, by the end of 2021.
January 29, Update all procurement requirements for transactions PS-PhilGEPS
2022 above 1 million from January 1, 2021 to December 31,
2021 in the PhilGEPS.
October 1, 2021 Post the agency's policy on the Establishment and CSC
Conduct of the Agency Review and Compliance of
SALN in the agency Transparency Seal for FY 2021.
January 29, Submit the following Freedom of Information (FOI) PCOO
2022 Program requirements to PCOO:
a. Updated People's FOI manual
b. FOI reports: Agency Information Inventory, 2021
FOI Registry, and 2021 FOI Summary Report
c. Modified One-page FOI Manual
d. Screenshot of agency's home page

For your information and guidance.

December 6, 2021.

GERARDO C. NOGRALES
Chairman