EXECUTIVE ORDER NO. 127
EXECUTIVE ORDER NO. 127 -
REORGANIZING THE MINISTRY OF FINANCE
RECALLING
that the reorganization of the government is mandated expressly in
Article II, Section 1 (a), and Article III of the Freedom
Constitution;
HAVING IN MIND that pursuant to Executive Order No. 5 (1986), it is
directed that the necessary and proper changes in the organizational
and functional structures of the government, its agencies and
instrumentalities, be effected in order to promote efficiency and
effectiveness in the delivery of public services;
BELIEVING that it is necessary to reorganize the Ministry of Finance to
make it more capable and responsive, organizationally and functionally,
in its primary mandate of judiciously generating and efficiently
managing the financial resources of the Government, its sub-divisions
and instrumentalities in order to attain the socio-economic objectives
of the national development programs;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by the sovereign will of the Filipino
People and the Freedom Constitution, do hereby order:
Section 1. Title. — This Executive Order shall
otherwise be known as the Reorganization Act of the Ministry of Finance.
Sec. 2. Reorganization. — The Ministry of Finance,
hereinafter referred to as Ministry, is hereby reorganized,
structurally and functionally, in accordance with the provisions of
this Executive Order.
Sec. 3. Declaration of Policy. — It is the policy
of the State that the Ministry of Finance shall be primarily
responsible for the sound and efficient management of the financial
resources of the Government, its subdivisions, agencies and
instrumentalities.
Sec. 4. Mandate. — The Ministry shall be
responsible for the formulation, institutionalization and
administration of fiscal policies in coordination with other concerned
subdivisions, agencies and instrumentalities of government.
Moreover, the Ministry shall be responsible for the generation and
management of the financial resources of government, ensuring that said
resources are generated and managed judiciously and in a manner
supportive of development objectives.
The Ministry shall be responsible for the supervision of the revenue
operations of all local government units, with the objective of making
these entities less dependent on funding from the national government.
Finally, the Ministry shall be responsible for the review, approval and
management of all public sector debt, whether foreign or domestic, with
the end in view of ensuring that all borrowed funds are effectively
utilized and all such obligations are promptly serviced by the
government.
Sec. 5. Powers and Functions. — To accomplish its
mandate the Ministry shall have the following powers and functions:
(a)
In coordination with other concerned government agencies, formulate
long-range, medium term and annual plans covering the government’s
resource mobilization effort, involving all public sector resources
whether generated by revenues and operations, foreign and domestic
borrowing, sale or privatization of corporations or assets, or from
other sources; and supervise the implementation of such plans;
(b) Formulate,
institutionalize and administer fiscal and tax policies;
(c) Supervise,
direct and control the collection of government revenues;
(d) Act as
custodian and manage all financial resources of the national government;
(e) Undertake
and supervise activities related to the negotiation, servicing and
restructuring of domestic and foreign debt incurred or guaranteed by
the government and its instrumentalities, including taking part in
activities which affect the country’s capacity to service foreign debt;
(f) Review and
coordinate the policies, plans and programs of government financial
institutions and thereafter recommend to them courses of action that
dovetail these policies, plans and programs to national government
fiscal policies, plans and programs;
(g) Ensure the
implementation of necessary policies and measures on local revenue
administration;
(h) Coordinate
with other government agencies or matters concerning fiscal and
monetary policies, credit, economic development, international finance,
trade and investment;
(i) Perform
such other powers and functions as may be provided by law.
Sec. 6. Minister of Finance. — The authority and
responsibility for the exercise of the mandate of the Ministry and for
the discharge of its powers and functions shall be vested in the
Minister of Finance, hereinafter referred to as Minister, who shall
have supervision and control of the Ministry and shall be appointed by
the President.
Sec. 7. Structural Organization. — The Ministry,
aside from the Ministry Proper comprising the Office of the Minister,
Offices of the Deputy and Assistant Ministers, the Economic
Intelligence Investigation Bureau and the Services, consist of the
Operations Groups and their constituent units, and Regional Offices.
Sec. 8. Office of the Minister. — The Office of
the Minister shall consist of the Minister, his deputies and their
immediate staffs.
Sec. 9. Deputy Ministers. — The Minister shall be
assisted by five (5) Deputy Ministers appointed by the President upon
the recommendation of the Minister, each of whom shall head,
respectively, the Policy Development and Management Services Group
mentioned in Section 11 hereof and the four (4) Operations Groups
mentioned in Section 12 hereof.
Sec. 10. Assistant Ministers. — The Minister shall
also be assisted by five (5) Assistant Ministers appointed by the
President upon the recommendation of the Minister. The respective
assignments of the Ministers and the reporting procedures to be
followed by them shall be determined by the Minister.
Sec. 11. Policy Development and Management
Services Group. — The Policy Development and Management Services Group,
which shall be headed by a Deputy Minister, shall consist of the
following:
(a)
Planning and Policy Research Office;
(b) Central
Management Information Office;
(c) Central
Administration Office;
(d) Central
Financial Management Office;
(e) Public
Information and Assistance Office;
(f) Legal
Office;
(g) Regional
Coordination Office.
Sec. 12. Operations Groups. — The Operations
Groups, each of which shall be headed by a Deputy Minister, shall
consist of the following:
(a)
Revenue Operations Group, composed of the following:
(1)
Bureau of Internal Revenue;
(2) Bureau of
Customs;
(3) Revenue
Service;
(4) Legal
Service;
(b) Domestic
Operations Group, composed of the following:
(1)
Bureau of Treasury;
(2) Bureau of
Local Government Finance;
(3) Financial
and Fiscal Policy and Planning Office;
(c)
International Finance Group, composed of the following:
(1)
International Finance Policy Office;
(2)
International Finance Operations Office.
Sec. 13. Planning and Policy Research Office. —
The Planning and Policy Research Office shall have the following
functions:
(a)
Formulate long-range and annual projections of revenue needs, cash
position and borrowing capacity of the Government as basis for policy
decisions of the Ministry;
(b) Supervise
policy research and development on fiscal and tax measures undertaken
by the operating bureaus and offices of the Ministry;
(c) Coordinate
with other government agencies on policy research as it impacts on
fiscal and tax measures;
(d) Perform
such other functions as may be assigned by the Minister or his deputies.
Sec. 14. Composition.— The Planning and Policy
Research Office shall be composed of the following:
(a)
National Resource Planning Division;
(b) Policy
Research and Coordination Division;
(c)
Statistical Development and Coordination Division;
(d) Special
Studies Division.
Sec. 15. Central Management Information Office. —
The Central Management Information Office shall have the following
functions:
(a)
Establish a Management Information System and sub-systems for
monitoring and evaluation of Ministry-wide programs and projects,
including those that are executed by operating Bureaus and Offices;
(b) Formulate
policies, plans and procedures for data control and systems management;
(c) Act as the
central repository of existing and future computer files;
(d) Perform
such other appropriate functions as may be assigned by the Minister or
his deputies.
Sec. 16. Composition. — The Central Management
Information Office shall be composed of the following:
(a)
Project Monitoring and Evaluation Division;
(b) Data
Control and Systems Management Division;
(c) Data
Encoding and Processing Division;
(d) Computer
Operating Division.
Sec. 17. Central Administration Office. — The
Central Administration Office shall have the following functions:
(a)
Supervise Ministry-wide services relating to internal cash management,
personnel administration, property and supplies procurement and
custody; and maintenance of central files, and corresponding reporting
systems;
(b) Assist in
the formulation of policies and guidelines on the management human and
physical resources and general housekeeping activities for uniformity
and standardization;
(c) Serve as a
center for the establishment and periodic evaluation of management
operation systems, internal control and work outputs to determine
Ministry-wide performance efficiency;
(d) Design and
develop training policies and guidelines, administer and evaluate
training programs and, in coordination with external training
institutions, screen and recommend to the Minister the participation of
Ministry personnel in training programs, seminars and conferences in
the country or abroad;
(e) Ensure
that Ministry-wide activities and efforts are focused towards a central
direction as embodied in the national socio-economic development plans;
(f) Perform
such other appropriate functions as may be assigned by the Minister or
his deputies.
Sec. 18. Composition. — The Central Administration
Office shall be composed of the following:
(a)
Cash Management Division;
(b) Personnel
Services Division;
(c) General
Services Division;
(d) Management
Systems and Performance Evaluation Division;
(e) Central
Records Management Division;
(f) Human
Resources Development Division;
(g) Ministry
Plans and Programs Division.
All divisions enumerated above shall be replicated as sections or
divisions under the Administration Division or Office, as the case may
be, which each operating Bureau under the Ministry shall have.
Sec. 19. Central Financial Management Office.— The
Central Financial Management Office shall have the following functions:
(a)
Supervise Ministry-wide activities relating to budget preparation and
management, Ministry accounting, and internal audit;
(b) Perform
such other appropriate functions as may be assigned by the Minister or
his deputies.
Sec. 20. Composition. — The Central Financial
Management Office shall be composed of the following:
(a)
Budget Division;
(b) Accounting
Division;
(c) Audit
Division.
All divisions enumerated above shall be replicated as sections or
divisions under the Financial Management Division or Office, as the
case may be, which each operating Bureau of the Ministry shall have.
Sec. 21. Public Information and Assistance Office.
— The Public Information and Assistance Office shall have the following
functions:
(a)
Provide policy direction and guidance to the operating Bureaus and
Offices of the Ministry for the proper dissemination of appropriate
information on Ministry-wide program operations and activities;
(b) Provide
the operating Bureaus and Offices with the general framework for
rendering direct assistance to the general public;
(c) Receive
complaints and grievances from the general public; prepare referrals to
concerned Bureaus and Offices and monitor responses or actions taken;
(d) Perform
such other appropriate functions as may be assigned by the Minister or
Deputy Minister for Policy Development and Management Service.
Sec. 22. Composition. — The Public Information and
Assistance Office shall be composed of the following:
(a)
Public Information Management Division;
(b) Public
Assistance Management Division.
Sec. 23. Legal Office. — The Legal Office shall
have the following functions:
(a)
Prepare draft opinions/rulings for signature of the Minister or his
deputy on matters elevated to it by the Bureaus and Offices of the
Ministry;
(b) Conduct
legal researches on all matters referred to it by the Minister or his
deputies;
(c) Perform
such other appropriate functions as may be assigned by the Minister or
his deputies.
Sec. 24. Composition. — The Legal Office shall be
composed of the following:
(a)
Legal Research Division;
(b)
Opinions/Rulings Division.
All divisions enumerated above shall be replicated as sections under
the Legal Division, which each operating Bureau of the Ministry shall
have.
Sec. 25. Regional Coordination Office. — The
function of the Regional Coordination Office is to coordinate the
operations of the Regional Offices.
Sec. 26. Economic Intelligence and Investigation
Bureau.— The Economic Intelligence and Investigation Bureau, which
shall be headed by and subject to the supervision and control of the
Commissioner who shall be appointed by the President upon the
recommendation of the Minister, shall have the following functions:
(a)
Receive, gather and evaluate intelligence reports and information and
evidence on the nature, modes and extent of illegal activities
affecting the national economy, such as, but not limited to, economic
sabotage, smuggling, tax evasion, and dollar-salting, investigate the
same and aid in the prosecution of cases;
(b) Coordinate
with external agencies in monitoring the financial and economic
activities of persons or entities, whether domestic or foreign, which
may adversely affect national financial interest with the goal of
regulating, controlling or preventing said activities;
(c) Provide
all intelligence units of operating Bureaus or Offices under the
Ministry with the general framework and guidelines in the conduct of
intelligence and investigation works;
(d) Supervise,
monitor and coordinate all the intelligence and investigation
operations of the operating Bureaus and Office under the Ministry;
(e)
Investigate, hear and file, upon clearance by the Minister, anti-graft
and corruption cases against personnel of the Ministry and its
constituent units;
(f) Perform
such other appropriate functions as may be assigned by the Minister or
his deputies.
Sec. 27. Composition. — The Economic and
Investigation Bureau shall be composed of the following:
(a)
Intelligence Office;
(b)
Investigation and Prosecution Office;
(c) Internal
Inquiry and Prosecution Office;
(d) Internal
Administration Office.
All offices enumerated above except the Internal Administration Office
shall be replicated as divisions under the Intelligence and
Investigation Office, which each operating Bureau of the Ministry shall
have.
Sec. 28. Bureau of Internal Revenue. — The Bureau
of Internal Revenue, which shall be headed by and subject to the
supervision and control of the Commissioner of Internal Revenue, who
shall be appointed by the President upon the recommendation of the
Minister and hereinafter referred to as Commissioner shall have the
functions of assessing and collecting all taxes, fees and charges,
accounting for all revenues collected, exercising duly delegated police
powers, administering all legal requirements that are appropriate,
preventing and prosecuting tax evasions and other illegal economic
activities, exercising supervision and control over its constituent
units, and performing such other functions as may be provided by law.
The Commissioner of Internal Revenue with the approval of the Minister
of Finance will draft and prepare the necessary rules and regulations
as may be needed to delineate the authority and responsibility of the
various groups and services of the Bureau.
Letter of Instruction 204 which grants full authority to the
Commissioner of Internal Revenue in matters of discipline and
appointment of Internal Revenue personnel shall remain in effect.
Sec. 29. Deputy Commissioners.— The Commissioner
shall be assisted by two (2) Deputy Commissioners. Each Deputy
Commissioner shall supervise one (1) of the Groups defined in Sec. 30 below, to be assigned by the Commissioner.
Sec. 30. Composition. — The Bureau of Internal
Revenue shall be composed of the following:
(a)
Assessment and Collection Group, headed and supervised by a Deputy
Commissioner and composed of the following Services, each of which
shall be headed by a Service Chief:
(1)
Assessment Service, composed of the following:
(i)
National Audit Review Division;
(ii)
Assessment Performance Control Division;
(iii) Tax
Credit/Refund Division;
(2)
Collection Service, composed of the following;
(i)
Collection Enforcement Division;
(ii) Accounts
Receivable/Billing Division;
(iii)
Collection Performance Evaluation Division;
(iv)
Withholding Tax Division;
(3)
Excise Tax Service, composed of the following:
(i)
Alcohol Tax Division;
(ii) Oil and
Miscellaneous Tax Division;
(iii) Tabacco
Tax Division;
(iv) Field
Operations Division;
(v) BIR
Laboratory;
(4)
Special Operations Service composed of the following:
(i)
Industry Audit Division;
(ii) Banks,
Financing and Insurance Division;
(iii)
International Tax Affairs Division;
(iv)
Value-Added Tax Division;
(5)
Regional Offices
(b)
Legal and Internal Administration Group, headed and supervised by a
Deputy Commissioner and composed of the following Services, each of
which shall be headed by a Service Chief:
(1)
Legal Service, composed of the following:
(i)
Legislative, Ruling and Research Division;
(ii)
Prosecution Division;
(iii)
Appellate Division;
(iv)
Litigation Division;
(2)
Financial Service, composed of the following:
(i)
Revenue Accounting Division;
(ii) Budget
Division;
(iii)
Disbursement Accounting Division;
(iv) PO/CR
Monitoring Division;
(v)
Statistical Analysis Division;
(3)
Administrative Service, composed of the following:
(i)
Personnel Division;
(ii) General
Services Division;
(iii) Property
Division;
(iv)
Accountable Forms Division;
(v) Records
Division;
(vi) Career
Development Division;
(vii) Medical
and Dental Division;
(4) Planning
and Research Service composed of the following:
(i)
Planning and Research Division;
(ii)
Management Information and Data System Division;
(iii) Public
Information and Assistance Division;
(5) Inspection
Service, composed of the following:
(i)
Internal Security Division;
(ii) Fiscal
Control Division;
(iii)
Personnel Inquiry Division.
Sec. 31. Appointment by the President.— The
aforementioned Deputies shall be appointed by the President upon the
recommendation of the Minister.
Sec. 32. Management and Technical Staff.— The
Commissioner and the two (2) Deputy Commissioners shall each have a
Management and Technical Staff to render technical and secretarial
support services.
Sec. 33. Bureau of Customs.— The Bureau of
Customs, which shall be headed and subject to the management and
control of the Commissioner of Customs, who shall be appointed by the
President upon the recommendation of the Minister and hereinafter
referred to as Commissioner, shall have the function of collecting
custom duties, taxes and the corresponding fees, charges and penalties,
accounting for all customs revenues collected, exercising police
authority for the enforcement of tariff and customs laws, preventing
and suppressing smuggling, pilferage and all other economic frauds
within all ports of entry, supervising and controlling exports,
imports, foreign mails, and the clearance of vessels and aircrafts in
all ports of entry administering all legal requirements that are
appropriate, preventing and prosecuting smuggling and other illegal
activities in all ports under its jurisdiction, exercising supervision
and control over its constituent units, and performing their functions
as may be provided by law. Executive Order No. 39 dated 6 August 1986
which grants autonomy to the Commissioner of Customs in matters of
appointment and discipline of Customs personnel shall remain in effect.
Sec. 34. Composition.— The Bureau of Customs shall
be composed of the following:
(a)
Customs Revenue Collection Monitoring Group, headed and supervised by a
Deputy Commissioner and composed of the following services, each of
which shall be headed by a Service Chief:
(1)
Legal Service, composed of the following:
(i)
Ruling and Research Division;
(ii)
Prosecution and Litigation Division:
(iii)
Appellate Division;
(iv) Tax
Exempt Division.
(2)
Financial Service, composed of the following:
(i)
Revenue Accounting Division;
(ii)
Statistical Analysis Division.
(3)
Collection Service, composed of the following:
(i)
Collection Performance/Evaluation Division;
(ii)
Liquidation and Assessment Audit Division;
(iii) Bonds
Audit Division.
(b)
Customs Assessment and Operations Coordinating Group, headed and
supervised by a Deputy Commissioner and composed of the following
services, each of which shall be headed by a Service Chief:
(1)
Imports and Assessment Service, composed of the following:
(i)
Valuation and Classification Division;
(ii)
Assessment Coordination and Monitoring Division;
(iii)
Warehouse Coordination Division.
(2) Ports
Operations Service composed of the following:
(i)
Auction and Cargo Disposal Division;
(ii) Export
Coordination Division;
(iii) Port
Operations Division.
(c)
Intelligence and Enforcement Group, headed and supervised by a Deputy
Commissioner and composed of the following services, each of which
shall be headed by a Service Chief:
(1)
Intelligence and Investigation Service, composed of the following:
(i)
Intelligence Division;
(ii)
Investigation and Prosecution Division;
(iii) Internal
Inquiry and Prosecution Division.
(2)
Enforcement and Security Service, composed of the following:
(i)
Customs Police Division;
(ii) Water
Patrol Division;
(iii) Radio
Communication Division.
(d)
Internal Administration Group, headed and supervised by an Assistant
Commissioner and composed of the following:
(1)
Financial Management Office;
(2)
Administration Office;
(3) Planning
and Policy Research Division
(4) Management
Information and Data Systems Division;
(5) Public
Information and Assistance Division;
(6) Medical
and Dental Division;
(7) Human
Resources Management Division.
Sec. 35. Appointment by President. — The
aforementioned Deputy and Assistant Commissioners shall be appointed by
the President upon the recommendation of the Commissioner of Customs in
keeping with the intent of Executive Order No. 39.
Sec. 36. Definition of Functions. —
(a)
Customs Revenue Collection Monitoring Group. The Customs Revenue
Collection Monitoring Group shall have the following functions:
(1)
Maintain an updated accounting for all Customs revenues collected;
(2) Administer
legal requirements of the Bureau of Customs to include litigation and
prosecution of cases;
(3) Provide
the Commissioner of Customs with accurate and timely information and
analysis of collection statistics;
(4) Conduct
continuing audit of liquidated entries and outstanding bonds;
(5) Perform
such other appropriate functions consistent with the assigned tasks of
the group and others which may be given by the Commissioner.
(b)
Customs Assessment and Operations Coordinating Group. The Customs
Assessment and Operations Coordinating Group shall have the following
functions:
(1)
Regularly gather and upon approval of the Commissioner, publish values
of commodities imported into the Philippines, such values being the
bases for the computation of customs duties and other revenues;
(2) Monitor
for decision making purposes the implementation of rules and
regulations
governing assessment,
warehousing and support operations;
(3) Monitor
auction and disposal activities together with port/airport operations
related activities for decision-making purposes;
(4) Perform
other appropriate functions consistent with the assigned tasks of the
Group which may be given by the Commissioner.
(c)
Intelligence and Enforcement Group shall have the following functions:
(1)
Regularly and consistently gather intelligence information related to
customs and economic activities for proper dissemination to the Customs
offices concerned;
(2) Conduct
internal inquiry and investigation which may serve as the basis for
prosecution;
(3) Exercise
police authority conferred by the Tariff and Customs Code or other laws
which include the enforcement of seizures and forfeitures and the
imposition of penalties and fines;
(4) Perform
such other appropriate functions consistent with the assigned tasks of
the Group and others which may be given by the Commissioner.
Sec. 37. The Collection Districts. —
(a)
The Bureau shall have 13 Collection Districts under the direct control
and supervision by the Commissioner. Each Collection District shall
have as many subports as necessary to maximize revenue collection and
the prevention of smuggling and fraud against customs. Each Collection
District shall be headed and supervised by a District Collector while
each subport will be headed by a Port Collector. The Collectors shall
have the following functions:
(1)
Collect duties, taxes, fees, charges, penalties and fines accruing to
the Government under the Tariff and Customs Code and related laws;
(2) Exercise
police powers conferred to him/her by the Tariff and Customs Code or
other laws which include the enforcement of penalties and fines;
(3) Examine
goods, assess duties, fees, charges, penalties and fines accruing to
the Government under the Tariff and Customs Code and other related laws;
(4) Supervise
the entrance and clearance of vessels and aircrafts engaged in foreign
commerce;
(5) Supervise
and control handling of foreign mails arriving in the Philippines;
(6) Supervise
all import and export cargoes landed and/or stored in piers, airports,
terminal facilities, yards and freight stations;
(7) Perform
such other appropriate functions consistent with the assigned task of
the District/Port Collectors and those which may be given by the
Commissioner.
Sec. 38. Management and Technical Staff. — The
Commissioner and three (3) Deputy Commissioners, and the Assistant
Commissioner shall each have a Management and Technical Staff, which
shall be limited to a specific number of personnel as determined by the
Commissioner, to render technical and secretarial support services.
Sec. 39. Bureau of Treasury. — The Bureau of
Treasury, which shall be headed by and subject to the supervision and
control of the National Treasurer who shall be appointed by the
President upon the recommendation of the Minister, shall have the
following functions:
(a)
Act as the principal custodian of all national government funds;
(b) Assist in
the formulation of, and execute, policies on financial management,
public borrowings and capital market development;
(c) Formulate,
in coordination with government agencies concerned annual projections
of revenue needs, cash position and borrowing capacity of the
government;
(d) Maintain
accounts of the financial transactions of all national Ministries,
bureaus, agencies and instrumentalities;
(e) Manage the
cash resources of the Government and perform banking functions in
relation to receipts disbursements of national funds:
(f) Manage,
control and service public debts from domestic or foreign sources;
(g) Exercise
line supervision over its Regional Offices/field units within Ministry
Regional Administrative Coordination Offices:
(h) Perform
such other appropriate functions as may be assigned by the Minister or
Deputy Minister for Domestic Operations.
Sec. 40. Composition. — The Bureau of Treasury
shall be composed of the following
(a)
Internal Affairs Sub-Sector under the direct supervision and control of
an Assistant National Treasurer and composed of the following:
(1)
Administrative Service which shall be composed of:
(a)
Legal, Intelligence and Investigation Division;
(b) Human
Resources Management Division;
(c) General
Services Division;
(d) Internal
Security Division;
(e) Public
Information and Assistance Division.
(2)
Financial and Management Service which shall be composed of:
(a)
Accounting Division;
(b) Budget
Division;
(c) Management
and Audit Division;
(d) Fidelity
Bond Division.
(3)
Management Information and Data Systems Service which shall be composed
of:
(a)
Data Control Division;
(b) Data
Encoding and Processing Division;
(c) Computer
Operations Division;
(d) E.D.P.
Systems Management Division,
(4)
Planning and Policy Research Division;
(5) Public
Information and Assistance Division;
(6) Legal
Division.
(b)
National Government Affairs Sub-Sector under the direct supervision and
control of an Assistant National Treasurer and composed of the
following:
(1)
Public Debt Management Service which shall be composed of:
(i)
Internal Debt Management Division;
(ii) External
Debt Management Division;
(iii) Debt
Servicing Division;
(iv) Backpay
Division.
(2) Debt
Clearing Service which shall be composed of:
(i)
National Government Accounts Division;
(ii)
Government Corporate and Private Individual/Corporations Division;
(iii)
Local Government Accounts Division;
(3) National
Cash Accounts Service which shall be composed of:
(i)
Fiscal Management Division
(ii) National
Cash Accounting Division;
(iii) Treasury
Accounts Reconciliation Division;
(iv) Treasury
Miscellaneous Accounting Division.
(4) Treasury
Banking Service which shall be composed of:
(i)
Cash Division;
(ii) Special
Clearing Division;
(iii) Claims
and Documents Division.
(5) Operations
Planning Service shall be composed of:
(i)
Fiscal Planning and Evaluation Division
(ii) Financial
Planning and Evaluation Division.
(iii)
Statistical Analysis and Information Division.
(6) Regional
Offices which shall have under their supervision all provincial offices
and shall be under the direct control and supervision of the National
Treasurer.
Sec. 41. Assistance to National Treasurer. — The
National Treasurer shall be directly assisted by the:
(a)
Management and Technical Staff, which shall perform the functions of
rendering technical and secretarial support services;
(b)
Intelligence and Investigation Office, which shall perform the
following functions:
(1) Monitor,
gather and evaluate reports on financial and economic activities of
persons or entities, foreign and domestic, which may adversely affect
national financial interests;
(2) Perform
such other appropriate functions as may be assigned by the National
Treasurer.
Sec. 42. Appointment by the President. — The
aforementioned two (2) Assistant National Treasurers shall be appointed
by the President upon the recommendation of the Minister.
Sec. 43. Bureau of Local Government Finance. — The
Bureau of Local Government Finance, which shall be headed by and
subject to the supervision and control of an Executive Director who
shall be appointed by the President upon the recommendation of the
Minister, shall have the following functions:
(a)
Assist in the formulation and implementation of policies on local
government revenue administration and fund management;
(b) Exercise
administrative and technical supervision and coordination over the
treasury and assessment operations of local governments;
(c) Develop
and promote plans and programs for the improvement of resource
management systems, collection enforcement mechanisms, and credit
utilization schemes at the local levels;
(d) Provide
consultative services and technical assistance to the local governments
and the general public on local taxation, real property assessment and
other related matters;
(e) Exercise
line supervision over its Regional Offices/field units within the
Ministry Regional Administrative Coordination Office and the local
treasury and assessment services:
(f) Perform
such other appropriate functions as may be assigned by the Minister or
Deputy Minister for Domestic Operations.
Sec. 44. Composition. — The Bureau of Local
Government Finance shall be composed of the following:
(a)
Internal Administration Office, under the direct supervision and
control of the Director and composed of the following:
(1)
Planning and Policy Research Division;
(2) Management
Information and Data Systems Division;
(3) Public
Information and Assistance Division;
(4) Financial
Management Division
(5)
Administrative Division;
(6)
Legal Division.
(b)
Policy Enforcement and Special Projects Group, headed and supervised by
a Deputy Director and composed of the following Services, each of which
shall be headed by a Service Chief:
(1)
Local Finance Policy Enforcement Service, composed of the following:
(i)
Local Treasury Operations Division;
(ii) Local Tax
Policy Research and Review Division;
(iii) Local
Assessment Operations Division:
(iv) Local
Government Loan Review Division;
(2) Special Projects
Management Service, composed of the following:
(i)
Plans and Programs Development Division;
(ii) Project
Execution and Management Division;
(iii) Project
Monitoring and Evaluation Division;
(iv) Central
Fund Management Division;
(c)
Field Operations Examination Group, headed by a Deputy Director and
composed of the following:
(i)
Management Systems Examination Division;
(ii) Real
Property Assessment Examination Division;
(iii)
Financial Operations Examination Division;
(iv) Local
Revenue Enforcement Examination Division.
Sec. 45. Assistance to the Executive Director. —
The Executive Director shall be directly assisted by the:
(a)
Management and Technical Staff, which shall perform the functions of
rendering technical and secretarial support services;
(b)
Intelligence and Investigation Office, which shall perform the
following functions:
(1)
Monitor, gather and evaluate reports on financial and economic
activities of persons or entities, foreign and domestic, which may
adversely affect national financial interests;
(2) Perform
such other appropriate functions as may be assigned by the Director.
Sec. 46. Financial and Fiscal Policy and Planning
Office. — The Financial and Fiscal Policy and Planning Office, which
shall be headed by a Director who shall be appointed by the President
upon the recommendation of the Minister, shall have the following
functions:
(a)
Coordinate, in consultation with the appropriate government agencies,
the formulation of integrated financial and fiscal plans of the
national Government and the local governments, consistent with the
national development plan;
(b) Monitor
and review the implementation of such financial and fiscal plans in
relation to recent development in the economy;
(c) Coordinate
with other government agencies involved in financial, fiscal and
economic planning and policy formulation;
(d) Undertake
special studies and research projects on financial and policies;
(e) Coordinate
the formulation and assessment of Ministry policies affecting domestic
finance operations with the different bureaus and offices of the
Ministry;
(f) Perform
such other appropriate functions as may be assigned by the Minister,
the Deputy Minister for Domestic Operations or the Assistant Minister
directly assisting the Deputy Minister for Domestic Operations.
Sec. 47. Composition. — The Financial and Fiscal
Policy and Planning Office shall be composed of the following:
(a)
Financial and Fiscal Planning Division;
(b) Policy
Research and Coordination Division;
(c) Statistics
Division;
(d) Special
Studies Division;
(e)
Administrative and Support Services Staff.
Sec. 48. International Finance Policy Office. —
The International Finance Policy Office, headed by a Director who shall
be appointed by the President upon recommendation of the Minister,
shall have the following functions:
(a)
Monitor and analyze international monetary, financial and trade
developments and their implications for the Philippine economy and
evolve proposals for appropriate response to said events;
(b) Provide
inputs into the formulation of fiscal, monetary, financial, foreign
trade and exchange rate policies as well as budgetary and balance of
payments programming in line with domestic economic goals and the
external financial and trade environment;
(c) Formulate
and monitor a foreign financing program on the basis of domestic
requirements and trends in development assistance and other capital
flows;
(d) Interact
with multilateral, regional and other international organizations and
formulate in coordination with appropriate agencies Philippine
positions on institutional and policy issues taken up in these bodies;
(e) Coordinate
with other appropriate ministries and government agencies in areas
concerning international finance and foreign trade;
(f) Perform
such other appropriate functions as may be assigned by the Minister or
Deputy Minister for International Finance.
Sec. 49. Composition. — The International Finance
Policy Office shall be composed of the following:
(a)
International Economy Division;
(b) External
Adjustments Division.
Sec. 50. International Finance Operations Office.
— The International Finance Operations Office, headed by a Director,
shall have the following functions:
(a)
Assist in the formulation of policy and guidelines for foreign
borrowings including provision of government guarantees and monitor
compliance with these policies;
(b) Provide
support work for international financial negotiations and participate
in such negotiations with multilateral financial institutions,
bilateral creditors and donors and commercial creditors. This includes
negotiations for new assistance (grants and loans) as well as for debt
rescheduling;
(c) Monitor
implementation of projects funded by foreign assistance and credits,
utilization of such external resources and compliance with commitments
as well as debt repayment obligations;
(d) Assist in
the structuring and conduct of international conferences and meetings
of the Ministry’s officer (the term “officer” as used in this Executive
Order is intended to be within the meaning of the term “official” as
used in the Freedom Constitution) with foreign dignitaries or
organizations;
(e) Perform
such other appropriate functions as may be assigned by the Minister or
Deputy Minister for International Finance.
Sec. 51. Composition. — The International Finance
Operations Office shall be composed of the following:
(a)
Commercial Credits and Legal Services Division;
(b) Bilateral
Assistance Division;
(c)
Multilateral Assistance Division.
Sec. 52. Administrative Staff and Finance Attache
Division. — The Deputy Minister for International Finance shall be
directly assisted by a Finance Attache Division and Administrative
Staff.
Sec. 53. Legal Service, Revenue Service and
Regional Offices. — The existing Legal Service, Revenue Service and
Regional Offices for internal revenue, customs, national treasury, and
local government finance shall continue to be operated and maintained
by the Ministry. Each Regional Office shall be headed by a Regional
Director.
A Regional Office shall have, within its administrative region, the
following functions:
(a)
Implement laws, rules and regulations, policies, plans, programs and
projects of the Ministry;
(b) Provide
efficient and effective service to the people;
(c) Coordinate
with regional offices of other ministries, offices and agencies in the
region;
(d) Coordinate
with local government units;
(e) Perform
such other functions as may be provided by law.
Sec. 54. MOF-RACO. — For purposes of achieving
maximum utilization of resources, management coordination and
administrative integration at the regional levels, there is hereby
created a Ministry of Finance Regional Administrative Coordination
Office (MOF-RACO) in each of the administrative regions of the country,
to be headed by a Regional Executive Director who shall report directly
to the Deputy Minister for Internal Administration. The Minister shall
define the appropriate functions to be delegated to the MOF-RACO.
The MOF-RACO shall provide coordinative and administrative support
services to all the Regional Offices of the operating Bureaus of the
Ministry in its administrative region and shall be composed of the
following:
(a)
Planning and Policy Research Division;
(b)
Intelligence and Investigation Division;
(c) Management
Information and Data Systems Division
(d) Public
Information and Assistance Division;
(e) Financial
Management Division;
(f)
Administrative and Personnel Division;
(g) Records
Management Division;
(h) General
Services Division.
The constituent units of the foregoing divisions shall be similar to
the constituent units of their respective central offices in the
Ministry.
The Regional Offices of each operating Bureau under the Ministry,
however, shall remain under the technical supervision and control of
the head of the Bureau to which they belong. For monitoring
purposes, however, each Regional Office shall submit operational
reports to the MOF-RACO as required.
Sec. 55. Abolition of Units Integral to Ministry.
— All units not included in the structural organization as herein
provided and all positions thereof are hereby deemed abolished. Their
appropriations and funds shall revert to the General Fund, while their
records, equipment, facilities and other assets shall be allocated to
such appropriate units as the Minister shall determine. Their
liabilities, if any, shall be treated in accordance with the Auditing
Code and other pertinent laws, rules and regulations. Their personnel
shall be entitled to the benefits provided in the second paragraph of
Sec. 59 hereof.
Sec. 56. Securities and Exchange Commission. — The
Securities and Exchange Commission is hereby detached from the Ministry.
Sec. 57. Attached Agencies. — The following
agencies are hereby attached to the Ministry:
(a)
Philippine Crop Insurance Corporation;
(b) Philippine
Export and Foreign Loan Guarantee Corporation;
(c) Insurance
Commission;
(d) National
Tax Research Center;
(e) Central
Board of Assessment Appeals;
(f) Fiscal
Incentives Review Board.
Sec. 58. Abolished Agencies. — The following
agencies, presently attached to the Ministry, are treated as follows:
(a)
Export Credit Corporation is hereby abolished and its functions are
transferred to the Philippine Export and Foreign Loan Guarantee
Corporation, together with its appropriations, funds, records,
equipment, facilities, other assets and personnel as may be necessary
to the proper discharge of the transferred functions. Its remaining
appropriations and funds, if any, shall revert to the General Fund and
its remaining records, equipment, facilities and other assets thereof,
if any, shall be allocated to such appropriate units as the Minister
shall determine or shall otherwise be disposed in accordance with the
Auditing Code and other pertinent laws, rules and regulations. Its
liabilities, if any shall likewise be treated in accordance with the
Auditing Code and other pertinent laws, rules and regulations. Its
personnel shall, in a holdover capacity, continue to perform their
duties and responsibilities and receive the corresponding salaries and
benefits unless in the meantime they are separated from the service
pursuant to Executive Order No. 17 (1986) or Article III of the Freedom
Constitution. Its personnel whose positions are not included in the new
position structure and staffing pattern of the Philippine Export and
Foreign Loan Guarantee Corporation or who are not reappointed shall be
entitled to the benefits provided in the second paragraph of Sec. 59
hereof;
(b) Gold
Mining Industry Assistance Board is hereby abolished, its functions are
discontinued and its records, equipment, facilities and other assets
are transferred to the Bureau Mines and Geosciences of the Ministry of
Natural Resources. Its appropriations and funds shall revert to the
General Fund, while its personnel shall be entitled to the benefits
provided in the second paragraph of Sec. 59 hereof.
Sec. 59. New Structure and Pattern. — Upon
approval of this Executive Order, the officers and employees of the
Ministry shall, in a holdover capacity, continue to perform their
respective duties and responsibilities and receive the corresponding
salaries and benefits unless in the meantime they are separated from
government service pursuant to Executive Order No. 17 (1986) or article
III of the Freedom Constitution.
The new position structure and staffing pattern of the Ministry shall
be approved and prescribed by the Minister within one hundred twenty
(120) days from the approval of this Executive Order and the authorized
positions created hereunder shall be filled with regular appointments
by him or by the President, as the case may be. Those incumbents whose
positions are not included therein or who are not reappointed shall be
deemed separated from the service. Those separated from the service
shall receive the retirement benefits to which they may entitled under
existing laws, rules and regulations. Otherwise, they shall be paid the
equivalent of one month basic salary for every year of service, or the
equivalent nearest fraction thereof favorable to them on the basis of
highest salary received, but in no case shall such payment exceed the
equivalent to 12 months salary.
No court or administrative body shall issue any writ or preliminary
injunction or restraining order to enjoin the separation/replacement of
any officer or employee effected under this Executive Order.
Sec. 60. Periodic Performance Evaluation. — The
Minister is hereby required to formulate and enforce a system of
measuring and evaluating periodically and objectively the performance
of the Ministry and submit the same annually to the President.
Sec. 61. Notice or Consent Requirement. — If any
reorganizational change herein authorized is of such substance or
materiality as to prejudice third persons with rights recognized by law
or contract such that notice to or consent of creditors is required to
be made or obtained pursuant to any agreement entered into with any of
such creditors, such notice or consent requirement shall be complied
with prior to the implementation of such reorganizational change.
Sec. 62. Change of Nomenclatures. — In the event
of the adoption of a new Constitution which provides for a presidential
form of government, the Ministry shall be called Department of Finance
and the titles of Minister, Deputy Minister, and Assistant Minister
shall be changed to Secretary, Undersecretary and Assistant Secretary
respectively.
Sec. 63. Prohibition Against Change. — No change
in the reorganization herein prescribed shall be valid except upon
prior approval of the President for the purpose of promoting efficiency
and effectiveness in the delivery of public services.
Sec. 64. Funding. — Funds needed to carry out the
provisions of this Executive Order shall be taken from funds available
in the Ministry.
Sec. 65. Implementing Authority of Minister. — The
Minister shall issue such rules, regulations and other issuances as may
be necessary to ensure the effective implementation of the provisions
of this Executive Order.
Sec. 66. Separability. — Any portion or provision
of this Executive Order that may be declared unconstitutional shall not
have the effect of nullifying other portions or provisions hereof as
long as such remaining portions or provisions can still subsist and be
given effect in their entirety.
Sec. 67. Repealing Clause. — All laws, ordinances,
rules, regulations and other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby repealed or modified
accordingly.
Sec. 68. Effectivity. — This Executive Order shall
take effect immediately upon its approval.
APPROVED in the City of Manila,
Philippines, this 30th day of January, in the year of Our Lord,
nineteen hundred and eighty-seven.
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