ae “EXECUTIVE COMMITTTEE |

| ON THE |
‘ i . gyal ore . : z

RATIONALIZATION PROGRAM

RESOLUTION No. 1
Series of 2006

Rationalization Prograin’s
Organization and Statting Standards and Guicelines

WHEREAS, the government is pursulng lhe implementation of lhe Rationalization

Program in all depariments/agencies of the Executive Branch, as mandaled under
Executive Order (EO) No. 366 daled 04 Oclober 2004, to focus goverunent elfurts on ils
vitailfcore funclions and enhance the elfeclivennss and efficiency of public service
delivery;

WHEREAS, EO 366 ¢lirccls all deparimenis/agencies of the Executive Branch to

conduct a strategic review of their respective operations and arqanization le identity the
functions, programs, aclivilies and projects which (1) can be scaled down, phased out of
abolished; or (2) where morn resources need lobia cinniclod:

WHEREAS, EO 366 provides for the creation of a Change Management Team

(CMT) in each department to conduct a siraleyic review arn! prepare a Rationalization
Plan for the whole depariment, including all unils/bureaus, qovernmentl-awned andior
-controlled corporations and other agencies allached to or under their adminislralive
supervision;

WHEREAS, there is a need lo provide the CMT of each depariment/agency

organizational and staffing standards/guidelines that would help them in defining the
appropriate structure and staffing lhat would support the identified core funclions of their
respective departments/agencies and in lhe preparation of their respective Rationalization
Plan; —

NOW, THEREFORE, lhe Ratlonalizafion Program's Executive Committee,

hereby resolve and approve tne allached Organization and Staffing Standards and
Guidelines for the use of (he CMTs of the depariments/agencies of Ihe Execulive Branch
in the preparation of thelr respective Plan,

ADOPTED, this Tethday of May, 2006 in the Cily of Manila, Philippines.

DEPARTMENT OF BUDGET AND é CIVIL SERVICE COMMISSION

MANAGEMENT

{.
By:,

ae Wh
ROLANDO G. ANDAYA, JR. KARINA CONSTANTINO-DAVID
Secretary Chairperson
 GOVERNMENT RATIONALIZATION PROGRAM
DEPARTMENT OF BUDGET AND MANAGEMENT-CIVIL SERVICE COMMISSION

ORGANIZATION AND STAFFING STANDARDS AND GUIDELINES

Table of Contents —

I. Introduction
IL. Typology of Organizations
ItL_ Organization Guidelines

a
_A._ General Policies

|i
1
I

a
~B._ Organization Guidelines for Departments
; a, Composition/Subdivisions of a Department
b. Organization of the Office of the Secetary_
; <. ‘Organization of Internal Management anid Support to Operations | Unils

=|
uw
ra Organizallon of a Stall Bureau

alu
2. Organization of a Line Bureau
“3. Organization
of Field tinits

inom
=, Organization Guidelines for Line Bureaus :
__a,. Compositlon/Subdlvision of a Line Bureau

ee
___b, Organization of the Office of the Director
nes . Organization oofInternal
al Management. ald Support [o Overallons Units
cd.Organtzallon of Operallons Unils

ee
Organization of Ficld Units

ee
Sn De iaineeon Guidelines for Intermediate Structures
Compositlon/Subdivision of an Intermediate SU ucture

cata
e

2, Organization of the Office of the Head of the Agency:

7
ec. Organization of Internal Management and ‘Support lo Operations: ‘Units:

uicgialeala
d. Organization of Operations Units
e, Seren tana Aield eee i
t

WV./, Staffing Guidelines

A. General Policies ; os
oo

ee ee oe =|
B. Guldes in the Staffing of an Organization
__©. Allowable Staffing Actions
Se

__D. Level
of Agency Heads ys sae |e
Annex A: Guidelines on the Immediate Support Staif of a Departinent’s Koy Officials— mete
Annex Summavy
8: of Book IV Chaptor of the Administrative Corie of 1987 La
“Annex Cr Summary of the Provisions of the Integrated Reurganization Plan of 1922 (Part NH id
Articies Hi1-V) pedi e pettjee er at tk
Annex D; On the Creation of an Intemal Audit Service (IAS) stig 17
Annex : "On the Creation of a Unified Project Management Office/Unit A a et
 ns
ha

ae
I. INTRODUCTION
This Organization and Staffing Standards and Guidelines has been prepared to provide —
a common reference in desiqning tho omanizalion structure and in delannining the stalking
requirements of agencies of the Execulive Branch, in. support of ihe Rationalization
Program. - Those guidelinas are expectad to be applied aller the agency has undergone a.
thorough review of its functions. As a general rule, {he proposed organizational structure
and staffing must be supportive of the core functions ideniified by the ayency.

It consists of three parts: Typology of organizations, arqanizational quirelinns, and staffing

guidelines. Summaries of pertinent provisions of the Administrative Gede of 1987,
Integrated Reorganization Plan, and relevant D&M Circulars are provided for immediale
reference.

TYPOLOGY OF ORGANIZATIONS
Thero are various types of onganizolions within the Uxeculive Granch. For commen
reference, the following dofinitions shall ha usec

Department
A.Deparlment Is the primary subdivision of ihe Exoculive Uraneh responsible for the
overall management of & soclor or 9 pommmnont national concen with nationwide or
international impact.

Buroau

A Bureau ls a principal subdivision.of a Veparlinent performing a single major function

or closely related functions. A Bureau is either staff or fine." A Line Bureau directly
implements programs pursuant to Department policies. * A Staff Bureau primarily
performs policy, program development, and advisory functions.”

Service

A Service is a staff unil whose funclions arn primarily supportive ef the major service
objectives of a Department. It may eilher provide technical inpuls necessary in the
exerciso of the subslanlive funcilons, or monitor the preogratns of a Department: or
perfurm administrative functions for a een lis clients include the Department
and the units under it. *
Flold Unit

A fleld unil Is the “ond" and “start” pulnt of a Leparinent ar Ageneyoor Ling Bureau, On
one hand, it Is the end point In the dolivery of necessary public goods and servicos, and
therefore, the medium for producing results. On the alher hand, it serves as the point of
origin of feedback and information, at HI os a rosource lor peronnanca assessment,
policymaking, and program planniig.*

" 15) 292 Hook IV Chapter IV Section 18 (ly

7 thid Section 19 C1) ‘
"Thi Section M01) : :
’ RAM-Manngetr al (Wee Muninearilia ter ALL AG Analysts dade 28 Coton (79 (ses cbetib bien in 20) 22 aod PED Up
* Porphinesd fre Reengiocering Itrincipier smal Marmetem,jo. M0
 Intarmodiate Structures Botween a Deparimont and a Burda

An intermediale siructure is an interministarial entily which may nol compare with the
size of A Deparimont bul novertholoks porforns tnsks that are ocqually sansilive one
important. This places the enlily on a higher plane than a Bureau. Councils,
Commissions, or Boards, whose operalions cul across several agencies or even
Departments, and whose area coverage is nationwide, am considered intermoadiate
structures.®

Intor-agoncy Bodlos, Task Forces and Other Similar Entitios |

inter-agency commiltees, task forces and similar onlilies aro ocd hoe bodies that are
onmanized to address unjont or cross-culling, conearns am! poohloms thateennnat be
resolved by ordinary processes of exisling ayencies. 1 heir mandales are time-bound,

Ill, ORGANIZATION GUIDELINES

A. Goneral Policies
The following pollcles should be observad in designing the most appropriate organizational
struciure that will exocule tho agency's ratlonnll zed funieticnes.

« The resulting organizational structure and slaling of agencios should strictly observe
the overriding goal of the Rationalization Program to itnprove the delivery of vilal
govemment services in terms of quality, scope, speed, accounlahilily, anc afforeahility
Thus, the organization and slaffing structure should promote focused use of limited
resources on cora functions and programs, and simullaneausly cul cow waslo and
overlaps by scaling-down, phasing-oul, or abolishing non-core funclions and programs.

* Organizallonal structuros shall bo designed asta prevent Whe envengonen af rat tpn,
while at the same time instiluting minimum control points, only to ensure accountability
of responsibility areas.

* Departmentation of government agencies may follow functional, process, clientele, or

geographical. approaches, whichever would ensure economy, offeciiveness and
olficioncy In sarvice dolivery.

The functional approach combines activities (hat are indigenous or common to a major
funclion, It may be adopted when an entily’s funclions are Complex tat Were is a need
lo subdivide component aclivities.

The process approach involves grouping of various jols/activilles that form the
sequence or components of one complete process pertaining to a service/product.

In tha clionlele approach, unils Are orfianized io sarve nowite range of requiremanis of -
specific groups or types of cllents.!t may be considered when the entily has only cne or
a few homogeneous aclivilies, but calers to A vory laryo seymont of tho bureaucracy or
general public,

*DIM-Management (fice Memorandum ia Al MO) Analyste dated 29 Uetsber 1)

 The Assistant Secretary shall perform such duties and funetions as may lin previcled! by
law or assigned to him by the Seerctary.'"” Ideally, an Assistant Secrolary should
supervise a specific function, office or unit which is distinct [rom that supervised by an
‘Undersecretary.

In general, the rationalized number of Undersecretary and Assislant Secretary positions

of a Department should not exceed the number provided for by law. '

The immediate support staff of the OSec provides execulive assislance in a range of
strategic matters and administrative support in general office duties. Specific quidelines
in the staffing of the OSec are Indicated in Annex A.

c. Organization of Internal Management and Support to Operations Units

Except as otherwise provided for by law, each Depariment may have units which shall
perfonm planning, financial, management and administralive services, inlernal audit, and
olher support to operations functions,

In general, (he Department is given the flexibility to structure/group Ils Internal

management and. support to operations unils Ina manner il deems more officient and
effective for its organization and operations, provided that accounlabilily for the
functional coverage of the internal management and support units as Indicaled in the
Administrative Gode of 1987 and other legal issuances is clear, and provided further
that the budget and staffing of the internal management and support to
‘operations units shall not exceed those of the operations units.

In restructuring these internal management and support to operations units, the

Department may refer to the provisions of the Administrativa Code of 1987 and the
Integrated Reorganization Plan of 1972. Summaries are in Annex Band Annex C,
respectively, For the establishment and structuring of newly prescribed internal
management and support to operations unils such as the Internal Audit Service and the
Unified Project Management Office, Annexes D and E, respectively, serve as
references.

L. Uennizatlen.
wf Qyreatinne! iiites
The core/majorivital functions of a areranen eae be-eprtarined by’ its’ opisranre
“unlls. These operations units may include line and staff bureaus, and-field unils.

For Departments with department-wide field units, the bureaus will serve primarily as
staff units to advise and assist the Office of the Secretary and provide consullalive and
technical services to the operations personnel in the field unils.

1. Organization of a Staff Bureau

A Staff Bureau shall avail itself of the planning, financial and other
support/administrative services in the Department Proper. The Bureau may have a
separate Administrative Division, if circumstances so warrant. "2
=k

at

A clrmalrintentlve Code of POW? Utook IY C'lengeer 2 Sevtivan TE

'T Actratnintrotive Crale of ORT Moak IV Chapter 1 Section 10 (1-2)
'? hg 292 Book IV Chapler4 Section 1 (3)
ee
ee

2. Organization of a Line Bureau

i

A Line Bureau may have staff units, as may be neorssary, coirespaneing to the
services of the Deparlment Proper. Mf the Bureau is small, only a single unit
performing combined stall functions may be provided,”

3. Organization of Field Units

After examining the need to maintain Fiek! Offices, a Department must klentily the
appropriate level of its field operations, Inking into consideration tha oxlant of tho
F decentralization of its operations and the provisions of lhe Local Government Code
of 1991 on devolution.

In general, Field Offices may be croated, if tie sources of inpuls to the agency
production procoss, or tha benoficlotins er objecis of aganey oulputs, ora so
spatially located and distributed across the country. “As may he necessary, the
field unils shall constitute the operaling anns of a Department that are concerned
wilh tho direct Implementation of plans and programs drawn up in accordance wilh
approved policies and standards. As counlerparis of a Department in tha region,
they shall underlake Departrnent operations wilhin thelr respective jurisdictions, and
be directly responsible to thelr Department Secretary."
. Departments are encouraged to maintain only one level of fintel presenen, if al all
necessary. Dopariments aro also oneournyid foo clustoniconbloa Coll offices: for
tnore effective, yet economical field service delivery, anc lo caleqerize field unils
Lased on scope of work and deyree of intervention.

Departments are discouraged lo maintain a regional office in tw National Capital

Reylun, To the extent possible, the contrul olfice should serve the cllentele In the
NCR. Departments with devolved functions must iniliente thoir plan for phasing-oul
regional offices or converting their regional offices to lower level field units.

G. Organization Guldelines For Line Bureaus

a. Composition/Subdivision of a Line Bureau

A Lino Bureau Is composed of unils potlonming cor, support to opotatlons, and lalerial
managemont functions. [t may have arministralive fiold officas as provided for by law.

A Line Bureau is headed by a Director who inay have one Assislanl Director.

In structuring the organizalion, a Line Bureau may use deparlmentation approaches thal
it deems most effective yel econymical, for service delivery, The basic subdivision of a
Lina Bureau Is a division.

b. Organization of tho Offico of tha Diractur

&

_v
4

Sa
ee

' thid Section 240 (3) ”

i Heer peluece lng Pe leelpeles cited Preaiie tier ys, Ib
15 09 22 Hook [Y Chapter 8 Section 40 2) (Mis He) 22 previshin pelies be Mehl Olives nla Udi Ture; bor siiee if is alee applicuhte far
Departments, | replaced the tema “Nuneau” with “Mcpartracnt™ }

rf
 Tho Offica of the Diroclor is composed of the Direelor Assistant Director, snd
immediate support staff positions. For tha manning of the iminediate support stall,
please refer lo Annex A.
c, Organization of Internal Management and Support to Operations Units

In general, the policy guidelines for (ho infernal management and supperl lo operations
units of a Deparment also apply to Ling Bureaus.

Line Bureaus may also refer io lhe Administrative Gode of 1987 and lho Intoyrated
Reorganization Plan. Depending on specific requirements, o Line Bureau may have its
coulterpart of the Deparment Services. In this case, counterpart unils may lie a
division Jovel anilly and muy orton comblnad Internal menagurent/suppart fumnetions,
€.q. combined administrative, financial and managemont,.

d. Organization of Operations Units

The core/majorivital functions of a Line Bureau shall be perfonned by ils operations

unils. Line Bureaus may subdivide operalions according to the most appropriate
deparimentation approach, yet ensuring offiency, effectiveness, cconomy, and
accountahilily. The primary subdivision of a Ling Bureau is adivision.

‘a, Organization of Field Units

As may be necessary, field unils may constilule Ihe naeraling acs of a Line Bureau
that ara concomod with the diroct Implomonialion of plans ond programs drawn up in
accordance with approved policies and standarnis. As counlarparls of he bureru in the
field, fleld units shall underlake bureau operalions wilhin their respeciive jurisdictions,
and be directly responsible to thelr Buroau Director." :
In ganeral, the organization guidelines for the department tich! units may bo adopled In
organizing fold units of Lino Bureaus.

D. Organization Guldolines For Intormodlate Structures

As a matter of policy, all agencies lower than a Depariment shall be placed under the
administrative. ‘supervision or attached to a depariment best, able lo provide policy or
program guidance or exercise administrative supervision over il.”

a, Composition/Subdivision of an Intermediate Structure

An intermediate structure such as a Council, Commission or Board is composed of ihe

members of the Council, Commission or Board, and the divisions performing coro,
support to operations, and internal management funclions. It may have fick! offices as
provided for by law, For the appropriate composition of the organization, intermediale
slructures have to refer lo their legal bases.

In restructuring, an Intermediate struciura may use the Hepa tmentation: Appar ly il

iloams most offoctive, yot economical: for sgrvien dolivary. lho basi subdivision of nan
intermediate structure may be a division,

* (509-292 Rook IV Chapter 8 Section 411 (2)

hs 72 dated 1 February 2102 Section |
 b. Organization of the Office of tha Haad of Agency

Intermediale structures in the Executive Granch have varicd types of lop management
organization. In general, tho lovel of the head of tho agency should follow what is
provided for by the law.

The Office of the Head of the Agency may he provided wilh posilions for execulive and
administrative assistance. For the Immediate support stalling, refer to Annex A,

ce Organization of Intornal Managemont and Support fo Operations Units

The guidelines for the organizalion of internal management anc support lo operatians
units of a Department also apply to Infennocliate structures,

Intommediato structures may also refer lo the Adininistrative Code of 1987 und the
Integrated Reorganization Plan. Depending on spocilic agency roquiraments, an
intermediate structure may have iis counterparl of the Department Services, In this
ease, counterpart units may bo a ‘division fevel entily and may perform combined
intemal management/support to operalions functions, ¢@.g. combinnd STE aa,
financial and management.

In general, a division level unit of a Department that is performing internal

managemenlsupport to operalions functions would be a section or positions in a
division of an Intormediato structure.

d. Organization of Operations Units

The core/majorivital functions of an intermeciiaie structure shall ba performed by its

operations unils. The operations units of an intennediale structure ara its technical
divisions.:

a. Organization of Field Units

When necessary, intermediale structures may adopt the organization quidelines for
Department field units in organizing thelr Field Units,

The Field Units of an intermediate structure may constilule the operating arms of the
agency that are concemed with the direct implementation of plans and programs in
accordance wilh approved jolicias and standards. As counterparts of the intermediate
structure in the field, they shall underlake intermediale struckire operations within their
respective jurisdictions, and be directly responsible to their Agency Head,"

E. Organizatlon Guldollnes for Inter-Agency Commilleos, Task Forcos atid Othor Slimilar
Entitlos

Inler-agency commilices, lagk lorces and aller similar cntlilies whuse funclional
concerns can he subsumotl undor an oxisting unil of a Department Way bo abolished.
As a policy, Departmenv/Agency heacls are encouraged lo call on any agency of
government or the prvale seclor for assistance in lhe exercise of thelr funclions,
whenever necessary. Thus, institutionalization of such oniitics is no longer necessary.

"261292 thao (V Chapter Section 41 (2)

 ”
IV. Staffing Guidelines

A. General Policies

i In general, all aulhorized/plantilia positions, funded or untinided, should be considered tn

the review of the DeparimentiAgency's sialfing paltem. Afier rationalization, the
DeparimentAgency's revised staffing pattern should have lower than or al least the
same number of filed positions at the start of the rationalization effort; and, that the
restuting total personngl services budget should be lower than or at least does not
exceed the budget for personal services at the start of the rationalization efforts.

Prior to the preparation of the proposed staffing patlern, Departiments/Ayencies may identify
functions that could be effectively oulsourcedicontracied oul. Contracting ouloulsourcing
may be considered in both core and non-core functions when it is deemed more afficient
and economical for lhe DeparimentiAgency, provided Lhal aerountabilitly mechanisms are in
place.

B. Guides In the Staffing of an Organization

a, Reduce functions/programs into aclivilies/asks Io identify slaffing requirements.

b, Determine skills/competencies required to jortorin the funclions/activilins/lasks.

c. Match activilies/iasks with positions in the Index of Occupational Services, Position

Titles and Salary Grades (10S) for ihe National Government to determine the
appropriate position title. Whenever possible, prefarence should be given to generic
over specialist posilions, for flexibilily.

d, Determine the number of positions required! based on workinac,

@.. Apart from the unit head, allow one-ol-a-kind higher or senior level position and provide
atleast one entrance leve! position,

f. As much as possible, limit the provision of assistants.

¢. Observe an optimal ratio between technical ond adtninistealive positions,

C. Allowable Staffing Actions

Under the Rationalization Program, the DeparimentAgency may consider lhe following
_ Staffing actions to rationalize ils staffing pattern:

a. Abolition of positions

Abolition means elimination of an obsvulete and/or unnecessary posilion.

b

b. Conversion of positions <

Conversion of position means the abolition of vacant posilion/s' and the creation of
another position In its/their stead with the sama, lower or higher salary range/qrade.,

)
 c. Reclassification of Positions

Reclassilicalion is a form of staffing modification ancer posilion classification action

which may be applied to filled positions, only whon thera his been a substantial
change in the regular dulies and responsibililles of the incumbent of the position. This
may result in a change in any or all of the posilion allributes:- posilign lille, level and
salary grade, For the detailad guidelines, rofer lo Budget Circular 2005-5 dated 16
August 2005.

d. Retitling of positions

All administrative ak aah shall be rolilled in accordance with DBM Buugel

Circular 2004-3 and 2004-3A

e. Creation of Positions

The scrap and build policy must be observed when proposing new posilions.
Departments/Agoncies may create now posilions as long as lhere are corresponding
obsolete/unnecessary but funded posilions which ean be nabalished lo support the
creation of {he new posilion/s.

All staffing modifications involving reclassification, convorsion, and croalion of

positions shall be In accordance wilh the IOS for National Government.

D,. Level of Agency Heads

For reference, the following tables indicate the appropriale levels of designated heads of
agencies/organizational units*

a, Organic Structure

_ Organizational
Unit | = == Head
Department Secretary
Bureau Director IV
Service Director Ill
cc | eee BPs ee 2
Division _| Chief (SG 24)

b. Field Units

Field Unit Deparimont Intormediate — tt Line Buroau

es Mee uae _| structures | miguel
Area Director Iv ‘DirectorI | Director il
‘ | Regional Director IV Director Wea “Director ii
Provincial Director II _ | Director| "| Division, Chief”

* Exceptions may only be allowed as provided in the JOS cae lawyer poss,
¢ a

City Coruna Gerald Files ADC PILESvOrbletinestorAgenpica_fanl O42 (Ani clo

‘

it)
 ANNEX A

Guidelines on the Immediate Support Staff of a Department's Key Officials

A. Rolo of the Immadiato Support Staff

The immediale support staff may consis! of personnel that will provide meeculwe assistanes
and administrative assistance lo key posilions of dhe Deparniant Agency. The Pxeciufive
Assistance staff shall proyde execulive support ina range of strategic matlers Invelying the
performance of a variely of technical and administrative tasks. The Adiministative Assistance
staff shall provide administrative support in qeneral office duties, inchurling bul nol limited te,
secretarial, clerical, chauffouring, mossengerial and reprodiclion werk,

B, Composition

The composition of the immediate support staff shall be based on the position of (he olfieial in
lho ean to wit:
Salary | Maxinnan | 1 Vigglverss VW hgtierst
Grache | Allewaitiiy [ma pecuptiyers Adiolnistintive:
Pusilion Smif Bliacestoree asl Avvniatiarit ASsiadint
Cott fecdeak PMosl bape: Uvyrullinun DYoveadle
wn

Dinpartinon! Secretary, Hoard of a Hf 14 Plessaed Cereriirar

Deparionil - Laval Aqarey foman ree Achiinidevive
Ansistial ¥,
ea

apartment Unidmserralary, an li Jewdpectilivey Sveti

_Shairman of a Commission Avvniatsuat VY, , Aadierinistesitives
attache to a Deparkmont, Head of Mie? Assiclant Ul,
an Infarmentini Laval
ml Agoucy ih

Doparimnent Assistant Seeeatiey, al) A | wareileyes | Arlralidatithyrs

Momber of a Commission altachne Averitt fl Ansiainul V, SG.
to a Dapartment, Hoad of an Ee) ; at
Intormodinia
Lovol Agency i

Lilrector WY, fore! cf ce Ohare or wl / Adie steeathvrs

organization equivalant ton Assistand Cl,
Bureau, Doparimont Roglonal ta:
Direclor, Daparimant Sarvice ea
Chief site be ae ha ey aera ar

Director If, Hoad ofa Bureau rai) ? Aadininlslrmlive

Roglonol Olfica or organization Assistant t, S0)-
nquivalant fo A Burnau Regional f
Olflea Femme en mire sake

Agencies have the option to determine the mix of executive assistant and arministrative
assislant prsilions for tha Departmonl Socretiny, Undersecretary ani) Assistant Secretary or
their equivalents, provided that they shall oot exeeed the niaixiimuin ollowable muniber sine
highest level of positions.
 %,
*

Cc. Appointment

The appointment of those who provide executive assistance, private secretarial ane
chauffouring services shall be co-lenminus wilh the official being served.

Positions In the offices of the aforementioned officials rendering arminisirative assistance

services, except for lhe Private Scerelary and Driver, may be Gunverted to career positions,
D. Other Guidolinas
tL pt
1. To preserve the hierarcfiy
of positions, there should be no.adptelty in the level of eae type
of position, except for Executive Assistant positions allocated la SG 17 and below, ant!
administrative positions allocated lo SG § andl binlow,

To conform wilh the staffing model pravided, agencies shall adapt the serap end bile policy
whoro oxlsting vacant posilions may sbe abelished to creak or reclassify appropriate
positions, working within the funding limitations. The number of immediate support staff may
be less than the prescribed slalling model.

- Agencies should see to it that the full tequirements for personal services for
crealed/reclassified/converled posilions would nol exeeed the amount qanerated (rom
the abolition of positions. =

The agency may resort also to the tanistaniewiaplaynient ob pesiligns: from other units within
the agoncy. ;

- ‘The transler/redeployment of posilions may Involve the reckissilicetion of positivns

basort on tho staffing horhtin presealled.
 ANNE
Summary of Book IV Chapter 3 of the Ackministrative Code of 1987
harwlen tre ach Dopentnient sfinll herve 04
shall include tha Planning Servien, tha Financial and Management Servien,
necessary, lhe Technical and Legal Services.

Planning Service
— olfinient ant
1, p POM
¥ hie provided! by |

L CLT MS id L io

the Planning Serica shall bn constiluled) aria single unit

. Where substantial primary data qalhoring is essential lo the operatio
nt, a stati i unil may be con eal as part of 7 ;

Minancial and Management Service

The Financial and M C E Se ry vulvisa mrul : st the Seerelary on
y, financial and manag sslvall paratfes choofther functions os
may be providad by law,

Adciministrathve Sorvice

The Adminis j ' emeonoiilical, officiel sire!

effective r
 aw
-
oS
ANNEX C
summary of the Provisions of the Infegrated Reorganization Plan of 1972
Part I, Chaptor J, Articlos I-VI

Planning Service

Tho Planning Service provikles the Deparment with serviens relating to planning, programming,
and project development, and such olhor functions os may be provided for lay kaw. (inry have
a Planning and Programming Division, a Project Pewclnwatitl ane evaluation Divisinn, ana
Research and Statistics Division.

Planning and Programming Divislon

Formulates long-range and annual plans and programs forthe Qeparknent,
Formulates basic policics and guidelines for the preparation of the Uopartments!
budget, including those for tha delaile| allocation of fiewds for capital outlays, are
coordinale with (he Budget Division in the preparation of the Department tucdyel;
Formulates erilerla for delermlialig garigritiass dar praponed jarujeels, and aocardinnayly
seloct capilal projects for furvling aul mxecitlon, ineélicling apypwoprinte fineme:liegy
schemes;
Undertakes such reprogramming as necessary in recerdanen wilh nelual rasaurens
mado available, Inachicing tha daterniiation etcoat tele cellar preoeta der bar tebe
from unprogrammed lo programmed calegory;
Evaluates periodically performance raparts,. and ifeygrate project tmnplication for
aggregative planning;
Maintains liaison with the central planning agqeney and other appropriate ecenemic or
planning bodies; and
Performs such other functions as may bn provided! by law.

Project Development and Evaluation Division

« Initiates and/or provides support for the dovefopment of projects by the various bureaus
and offices of the Department in accordance with approved priority areas:
+ Evaluates projects proposed by units of the Department according to technical and
economic feasibility and prescribed siancdards;
s Undertakes major project development arctivilics;
* Reviews tho progress of projects under implementation against set standzrds,
objectives, and schedules; and
« Performs such other functions as may be provided by law.

Rosoarch and Statistics Division i

+ Compiles, analyzes and inlegrates stalistical data, including operational statistics:
* Assists In the formulation of polley proposals and general economic guidelines;
« Develops projections, forecasts, and prepares aconumic reports and roaviews based on
conducted research;
«+ Undertakes continuing analysis of cconvinic conditions and trends relating to the
sectoral area In which lhe Depariment is concerned: are
* Performs such olher functions as may be provided by law.

Financlal and Management Service

Id
 5 oO
fhe finaneial and Maonqenon! Seocine melvicend gue sresiets (hie Sie tela on budipetany,
financial and muinaqement rations bay iowa can Accenoting Given, Diaeiget Division,
and a Management Divishon.

Budget Division .
* Develops and improves bucgelary mrethorts, procedures ced posstifineatioarys;
e Provides, subject to budgetary coilinys. ft incl estininies in-sampoit al the Departments
operations, plans and programs;
+ Assisls management in the presentation of tha leparlment's hudaetary estimates
before administrative and legislativa hoclins:
« Provides technical assistance lo subowinate bordel imils in the application anid
ulilization of budgelary methads and the budget sys en;
* Prepares annunl financlal work plana:
« Allocales, In coordination with the Planning Servier, available funds lo preaqrams on the
basis of approved quidelines and priorities:
« Issues allotment advice In suppor af Mie fue cecuinement for tie conduct af Oy
operalions under each program:
« Reviews perlormance reports to delermine canlormance wilh sct standards:
« Prepares financial reporls for management guidance and as requir by higher
acuilhorilies; and
* Performs such other functions as may be proveledt by law.

Accounting Division
« Advises management on financial malters;
« Prapares and submils financial repos to maiigenwt aod olliar govern
Departments and agencies authorized to receive such reports;
+ Maintains basic and subsidiary accounting records and books of accounts lo reflect
accurate and currant financial information inquired by existing auditing rules anv
regulations and by managoment;
« Certifies to the availability of funds and obligates funds;
* Processes requisilions, vouchers and repoits of collections anid dishursements:
* Prepares billings to dehtors of the National Government anc
= Performs such olher functions as may be provided by law

Management Divislon
* Develops plan and program objeclives relative to Feveiieeacetor improvement in the
Depariment;
«Examines the adminisbalive organization of the Deparment and = makns
recommendations for improvement: :
* Maintains and updales the Department's organization and oller mianuals:
« Undorlakes regular managoment surveys of onanizntional slruclure, manpower, and
operations; sludies special problems as assigned; reviews existing methods,
procedures, and syslems; and makos rbcommendations tor improvement:
+* Develops new and Improved management systems; exercises stalf supervision over the
implementation of such improvements, and provides (raining in the use of the systein/s;
* Davolops staffing slandards and manpower requirements for tha Department:
Performs such olher functions as may bo yeild dey law,

Administrative Service a
The Administrative Service is responsible for the provision of services relating to personnel, .
Joga! assisianos, Wionmation, recorus, delivery and receipl of comespoidence, supplies,
equipment, collections, disbursements, securily an! custodial work lo the Department. Il may
 have a Persad Division, ap Decegcil (iting, ce Otenveepeal fineeyie eer, Clery ew, stem d sane Vinbearpess
alte any
Divishon,

Porsonnel Division
Advises management on personnel policy ane sedyrinistetions
ir . Develops and administers a personnel procs whieh: osbiill irehudiy selection: gine
placemant, classification and pay, career and enipleynient development, perforin
rating, employee relalions and welfare services:
Acts on all matters concerning | atlendance, leaves of siisenen, sinless
promotions, transfers and olher personnel transaclions:;
Conducts training programs in the Deparinen:
Maintains personnel records and statistics; anu
Performs such other functions as may be provided lay law.

Legal Division
Provides legal advice to the Sccrotary, the Undeisecentary aml the buresus and offices
of the Department;
Interprets laws and rules affecting the operation of the Depariment:
Prepares contracts and instruments to which the- Department is a party, interpreting -
provisions of contracts covering work porformoad for tha Department by private entilias:
Conducts administraliva investigation, including the review of administrative charges
ayainst employees of the Department;
Assists In the promulgation of rules governing the activilins ef the Department:
Prepares comments on proposed legislation concarning the Qepanment;
Assists the Solicitor General in court filiggation in which this Qeaenderierit is inevelvest: aienl
Parforms such othor functions as may be provided by law,

Wr /Miormation Division 5
Develops programs lo have the policies, plans antl activilins of the Department properly
understood by the public;
Produces and disseminates media materials to implement the infoonation progam of
the Department;
Coordinates wilh he Public Information Office in the Office of the President: and
Performs such olher functions as may be provided by law.

(cone ral Services Divislon (GSD)

Provides policy guidance on the maintenance and Aisposition of records and on the
procurement and storage of supplies in aceondanca wilh goveroment prescribed
standards;
Files and maintains nocossary records and estublishes a records iispousition program
for the Department; i
Provides mail, lransportation, custodial, ard general utility services for the Depaniment:
Procures, slores, and distributes the supplies and equipment of the Uepartinent, and
conducls periodic Inventories of lho sama; ;
Provides and coordinales messengerial, duplicating and typing pool services;
Receives, collects, and deposils cash, prepares payrolls and processes youchars far
payment of the Department's obligalions, and
Performs such other functions as may be provided by law,
im »

Technical Sarvice .

Whenever necessary, a Technical Service shall be established to lake charge of technical staff
aclivities peculiar to a Department and which cannot be allocated to the three other services or
ihe bureaus.

lo
 ANNEX D

, On the Creation of an Internal Audit Service (1AS)

The Internal Audit Service is responsible for assisting management in achieving an effective
and efficient fiscal administration and performance of agency affairs and functions, without
intruding Into the authority and mandale of COA.” Ils functions include, among others, (a)
appraisal of procedures as to efficiency or atlequacy; (b) appralsal of personnel efficlancy: (c)
verification and analysis of financial operations dala to ascerlain if atlendant managoment
information systems generale dala or repors thal are completc, accurate and valid; (d)
verification of the extent of compliance wilh accounling procedures, governmental regulations,
department policies and programs, achievement of performance targels and contractual
obligations; (e) prevention and detection of fraud or dishonesty; (i) review of cases involving
misuse of agency property; and (g) when requested, performance of miscellaneous services,
including special Investigations and assistance to oulside contacts such as the COA, The
determination of effectiveness and adequacy of securily and management controls over
information systems and databases and their integrily are deemed part of the Spersuone and
financial audit.

The IAS shall report directly to the Department Secretary or his equivalent. the audil shall
cover audit areas In the Offi ice of ihe Secrelary, bureaus. offices and agencies,” including field
offices, regulatory agencies.” and other agencies under the supervision and contral or
administrative supervision™ of the Depariment.

The IAS shall be headed by a Director !!l or as may be provided by the Administrative Code of
1967 or other special laws. It shall have an Operations Audit Division and a Financial Audit
Division. Each Division shall be headed by an Internal Auditor V with the rank of Division Chief
with a Salary Grade of 24,

Agenclas attached to the Department for policy and program coordination may have a separate
internal Audit Unit (IAU), which shall report to the head of the agency. In case of mulli-headed
attached agencias, said |AU shall raport to tha governing body. Small agencies altached to
Department, may however, opt to avail of he services of the IAS of the Department.

For GOCCs/GFis

In case of a government-owned and/or controlled corporation, the [AU shall report io the Audit
Committee, which in turn, shall report to tho governing board of said corporation.”

ive bettion 1, par. 2, AO 70, s. 2003

** Section 19, Chapter 8, Rook IV, 0 292, “ye Administative Cade of 19RT"
™ Section 41, ibid
ae "(2) Administrative Supervision— (a) Sun as supervision which shall govern the acknimistralive
relationship between a department or ils equivalent and repulaiory hpencics of other apencies as may be provide by
law, shall be limited to the authority of the clepariment or its equivalent to x x x cause the conduct SUnaereien
audit, performance evaluation and inspection to del nmine compliancewilh puligies, slaneiapels anal guidelin
department ; x xx (Section 38, Chapter 7, Book Iv, BO 292 (* ‘The Administrative Code of 1987")
Hiern | (9), Code of Corporate Governance, Sccuritics and Exchinge Commission
 ANNEX E

On the Creation of a Unified Project Manaqement Office/Unit

The Project. Management ©Sffice/Unil is responsible for tho management and operation uf
projects of the agericy In a consolidated and unilied manner, with the following key functions:
(a) project operations planning; (b) project moniloring/oyaluaion: (¢} project seordinations |
"oversight", (d) project operation and management: (2) trouble shooting; (f) fintincial
management, (g) coordination wilh various stakeholders; and (Hh) post project
complation/nainstreaming of project concerns in regular aclivilies.

A unilled PMO may be established In ayencies (Departinents, altached agencies, line bureaus)
with two or more development projects which nead facusad implomentilon lo comply with
expressed commiiments and ensure allainment of larget sectoral and agency oulpuis and
guleomes. It may also be created in agencies with a single development project providad ihe
following condilions are prasont:

« Project components are “capital Inlensive’, Ve. will invalve infrastructuias/civil works
and other capital oullays (exception, however, are those myolving purely procurement
projects);
« Implementation will involve two or nore agencies either within the deparimeni, acinss
departments, GOCCs and other government Instrumentalilies, aiid or sectors: and
+ Physical implementation will be in two or more areas.
A Unified PMO may be esiablighed as a separate unit within ihe deparlinent, or, an axisting unil
{a.g. bureau, service, division) may serve as the Unilia:l PMO as may be deemeu appropriain
or consistent with or related lo existing functions. The funclkans. slruclure, and staffing of sic
unified PMO shall be in accordance with the provisions of National Bixiget Circular 485 dated
March 13, 2003.

Wiegiecwopl!'Locmenis and Setingstegily Documen’sOFl) Mos BP Pation girl aye lelien sh gen ls fol 21 OG lr,