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Republika ng Pilipinas

(PAMBANSANG PANGASIWAAN NG PATUBIG


Lungsod ng Quezon

Office Address: National Government Center


EDSA, Diliman, Quezon City, Philippines
Telephone Nos.: (02) 929-6071 to 78 Telefax No. (632) 928-9343
Website: www.iua.gov.ph TIN No. 000-916415

MCNo. i _ s . 2 0 1 8

MEMORANDUM CIRCULAR

TO : THE SENIOR DEPUTY ADMINISTRATOR, THE DEPUTY


ADMINISTRATOR, DEPARTMENT / REGIONAL / PROJECTS
MANAGERS AND OTHERS CONCERNED

SUBJECT : GUIDELINES FOR THE GRANT OF COLLECTIVE NEGOTIATION


AGREEMENT (CNA) INCENTIVE FOR CY 2017

1.0 RATIONALE

This Circular is being issued to provide rules and regulations for the payment of
Collective Negotiation Agreement (CNA] Incentive for CY 2017 pursuant to Department
of Budget and Management Circular No. 2017-3 dated November 16, 2017. The
Governance Commission for GOCCs (GCG) letter dated 5 December 2017 states that the
NIA CY 2017 Charter Statement, Strategy Map and Performance Scorecard was modified,
Vk^hereby NIA has attained a weighted average of 73.64% over and above the minimum
required target accomphshment/performance of 70% or greater by +3.64%, and which
shall take effect immediately making NIA as having satisfied all the conditions for the
Grant of CNA Incentive.

2.0 PAYMENT OF CNA INCENTIVE

2.1 Payment of CNA Incentive shall be in consonance with the provisions of the Public
Sector Labor Management Council (PSLMC) Resolution NO. 2, series of 2002, Civil
Service Commission (CSC) Opinion No. 481, dated November 2005, Malacanang
Administrative Order NO. 135, dated December 27, 2005, Department of Budget
and Management (DBM) Budget Circular No. 2006-1, DBM Budget Circular No.
2015-2 dated November 23, 2015, DBM Budget Circular No. 2016-7, dated
December 1, 2016 and all other apphcable laws and regulations.

2.2 NIA should have completed by October 31, 2017 at least an average of 70% of all
targets under the Performance Scorecard as agreed upon between the
Governance Commission for GOCCs (GCG) and NIA.

2.3 The CNA Incentive shall not exceed Php25,000.00 per quaUfied employee.

2.4 The CNA incentive shall be proportionate to the length of service rendered for
CY 2017. (CNA) Incentive is equal to the No. of months rendered divided by 12
months and multiplied by Php25,000.00.

However, employees whose separation from the service or whose compulsory


retirement falls beyond 31 October 2017 shall be considered to have rendered
twelve months of service during the CY 2017.
2.5 The CNA Incentive shall be paid once GCG has approved the Balance Scorecard of
NIA to qualified officials/employees not earUer than 15 December 2017.

3.0 COVERAGE

3.1 The following are entitled to receive CNA Incentive:

a. All N lA employees holding permanent, temporary, casual/daily co-terminous


or contractual rendering service in fulltime or part time basis and whose
appointments were passed upon by the Civil Service Commission (CSC);

b. Rank-and-file employees who are not members of the accredited sole and
exclusive negotiating agent, but enjoy or accept benefits under the CNA
subject to the assessment and collection of agency fee; and

c. Those who perform managerial functions.

3.2 Those hired through consultancy, contract of service and job order where no
employer-employee relationship exists are not covered by this Circular.

4.0 FUNDING REQUIREMENTS

4.1 The CNA Incentive shall be sourced solely from the allowable MODE Allotments
in CY 2017 as enumerated below under the approved Corporate Operating
Budgets

a. TraveUing Expenses;

b. Communication Expenses;

c. Repairs and Maintenance;

d. Transportation and Delivery Expenses;

e. Supphes and Materials; and

f. Utility Expenses.

4.2 Provided further that the following conditions are compUed with:

a. Actual operating income for the period lanuary 1 to October 31, 2017 shall be
at least, meet the targeted operating income in the approved COB for the same
period. FOR GOCCs/GFIs, which by the nature of their functions consistently
incur losses, the current year's operating loss should have been minimized or
reduced compared to or at most equal to that of the prior year's level;

b. Actual operating expenses as of October 31, 2017, are less than the DBM
approved level of operating expenses in the COB so as to generate sufficient
source of funds for the payment of CNA Incentive; and
c. For income generating GOCCs/GFIs required to remit earnings, an amount
equivalent to at least 50% of the annual earnings of the immediately preceding
year should have been remitted to the National Treasury in accordance with
Section 3 of RA No. 7656, s. 1993.

5.0 PAYMENT OF THE CNA INCENTIVE

5.1 The CNA Incentive for CY 2017 shall be a one-time benefit to be granted not
earher than December 15,2017.

5.2 The CNA Incentive for the year shall be granted only during the validity of
appropriations from which the available MOOE allotments shall be sourced.

5.3 The amount paid as CNA Incentive shall be recorded in the agency books under
the account code "Collective Negotiation Agreement Incentive" for NGAs, LGUs
and GOCCs/GFIs, respectively.

5.4 The amount of Twenty Four Thousand Pesos (P24,000.00) shall be paid to all NIA
employees covered under item 3.0 (coverage) in consideration to the savings
allotted for CNA.

6.0 AGENCY FEE CHECK-OFF

Three Hundred Pesos (Php 300.00) plus seven percent 7% of the CNA incentive received
by non-union member-employees shall be deducted/checked-off as agency fee in
accordance with PSLMC Resolution No. 1 s. 1993 and Memorandum Circular No. 94 s.
2005. Said agency fee shall be remitted with recognized Union Chapter, as the case may
be.

7.0 RESPONSIBILITY OF AGENCY HEADS

The Chief of Offices shall be responsible for the implementation of the provisions of this
Circular Memorandum.

8.0 SAVING CLAUSE

Payment of CNA shall be subject to refund if found not in order. All questions arising
from the i m ^ l e a i e G t o t i o n of this Circular shall be referred to the Office of the Deputy
Administfator for Administrative and Finance Sector.

RVISAYA(Ret)

Date
f Svslem

c . () V E; R N A N C f c o M MISSION i A , 150 9001,2008

3/F embank CefUei 3/11 Paseo Ds Roxas, Makati Cily, Philippines 1226

5 December 2 0 1 7

M R . L E O N C I O B. E V A S C O , J R .
Cabinet Secretary and Chairman
G E N . R I C A R D O R. V I S A Y A (Ret.)
Aaministrator
N A T I O N A L I R R I G A T I O N A D M I N I S T R A T I O N (NIA)
N I A C o m p l e x , E D S A , D i l i m a n , Q u e z o n City

R E : T R A N S M I T T A L OF CY 2 0 1 7 P E R F O R M A N C E S C O R E C A R D

Dear C a b i n e t S e c r e t a r y E v a s c o and A d m i n i s t r a t o r V i s a y a ,

T' 'IS 13 t o formally t r a n s m i t t h e C h a r t e r S t a t e m e n t a n d S t r a t e g y M a p ( A n n e x A )


an :l 2 0 1 7 ' P e r f o r m a n c e S c o r e c a r d ( A n n e x B ) of NIA.

The N I A proposed Performance Scorecard submitted on 30 January 2017 w a s


MODIFIED b a s e d o n t h e d i s c u s s i o n s m a d e during t h e t e c h n i c a l w o r k i n g g r o u p ( T W O )
m e e t i n g neld o n 2 4 M a y 2(317, a n d e v a l u a t i o n of revised d o c u m e n t s s u b m i t t e d o n 0 4
September 2017 and 04 December 2017. T h e CY 2017 Charter Statement, Strategy
Mcip and P e r f o r m a n c e S c o r e c a r d shall take effect I M M E D I A T E L Y . N I A is h e r e b y d i r e c t e d
to s u b m i t t h e a p p l i c a b l e Quarterly Monitoring R e p o r t s a n d u p l o a d t h e s a m e in its
WebSite.

FOR YOUR INFORMATION A N D GUIDANCE.

V e r y truly y o u r s
C Y 2 0 1 7 C H A R T E R S T A T E M E N T A N D S T R A T E G Y MAP ( A N I

mwmt mQAvoM Ammmm STRATEGY M A P


.]{ V I S I O N : By 2020, NIA is a professional and efficient irrigation agency contributing to the inclusive growth of the country |
]| and in the improvemennent of the farmers'quality of life. J

MISSION:
cc u
5| To construct, Q Q-
Increased Productivity, Income and Satisfaction
Increased Irrigated Areas Contributing to Food
J{ operate and li. O 1
Security of Farmers
maintain !^ LU <
irrigation systems if ^ O
consistent with i|
integrated water i|
resource \l
l]^^^|e"Planrrmg/^Design anoimpl^^enfatiteftrw^
management ;i Ensure Efficient and Effective Operation and
LU O Jl^'^lrrigatiof^Projects to be CI»mate Change' '''"-I
principles to | Maintenance of Irrigation Systems
z a. i ^ ^ i ^ W ^ - r ? -'-^ Adaptive ^^-?^.^T
improve I
agricultural i|
productivity and ;|
increase farmers' li <
income 'I u
mprove InGoraiBjGeneratidfllfto^
<

CORE VALUES:
03
Commitment
Integrity
Professionalism 1 2

rCHNICALAND
Themes STRATEGIC PARTNERSHIP
,ORER'AT^ONAL EXCELLtNCE
C Y 2 0 1 7 PERFORMANCE SCORECARD ( A N N E X E

NATIONAL IRRIGATiON ADMINISTRATION

SO 1 I n c r e a s e d Irrigated Areas C o n t r i b u t i n g to F o o d Security

Service A r e a
j
P e r c e n t a g e of over N I A (Actual /
1 SM 1 irrigation Potential 4% Target) x
Operations/
Corplan
57% -37.33% 63.01% 63.05%
development irrigable area Weight
of 2.427 M ha

C r o p p i n g Intensity
f o r N I S (%)
[SJ Profile 1]

(Actual /
a. R e s e r v o i r SMD,
10% Target) x 186% 175% 183% 184%
systems Operations
Weiaht
(Wet + Dry
SM2 Irrigated .Area) 1
1 •- h

b. D i v e r s i o n / F i r m e d Up (Actual / SMD,
8% 144% 146% 143% 148%
sytems Service Area Target) x Operations
Weight

(Actual /
SMD,
c. P u m p s y s t e m s j 6% Target) x 141% 142% 134% 148%
1 Operations
i 1 1 Weight
1 1

SO 2 Increased Productivity, Income and Satisfaction of Farmers

I S a t i s f a c t i o n rating !
SM 3 i on services \t least 9 0 % of
' rendered ^ total
Performance Scorecard 201

respondents All or
a. NIS 5% IDD, O p e r a t i o n s 90% :
must give a nothing
rating of 3 or N/A 85.73% 92.48%
All or 90%
b. CIS higher 3% IDD, Operations
nothing

Subtotal 36%

SO 3 I m p r o v e P l a n n i n g , D e s i g n a n d I m p l e m e n t a t i o n of I r r i g a t i o n P r o j e c t s to be Climate C h a n g e A d a p t i v e
:
A r e a s generated
a n d restored
[SI Profiles II, HI 1
and IV]
i

a. G e n e r a t e d (ha) (Actual /
1
i
Actual area 4% Target) x Corplan 14,695 12,054.3 5,103
13,375
a . 1 . Current Weight
1 •• • . •••
(Actual / : i
SM4
a.2. C a r r y - o v e r Actual area 4% Target) x Corplan 26,463 20,228 11,465 i 19,359 j
Weight i i

b. R e s t o r e d
(Actual /
b . 1 . Current Actual area 2% Target) x Corplan 3,707 14,029 4,666 1 1,752 I
Weight
i i (Actual /
b.2. Carry-over A c t u a l area 2% Target) x | Corplan NA 3,492 8,364 13.584
Weight '
1 I
R e p a i r and ;
rehabilitation of | i \
SM 5 1
e x i s t i n g irhgation !
facilities ;
1
1 1
NIA |3o
Performance Scorecard 20

a. E a r t h C a n a l
A c t u a l length ; 2% Target) x Corplan 148.18 528.09 249
(km)
Weiaht
1 (Actual /
j b. C o n c r e t e Lined
i C a n a l (km)
A c t u a l length i 2% Target) x Corplan 119.16 671.78 459.98 1,133 '
1 Weight
1
!
(Actual /
1 c. N o . of C a n a l
A c t u a l count ; 2% Target) x Corplan 338 1,462 1,253 3,454
1 Structures
Weight
A r e a c o v e r e d with i
ii
c o c o n e t along !
;
i r r i g a t i o n facilities :
for s l o p e protection (Actual / i
SM 6 A c t u a l area Target) x 172,000 s q . m . i
a. C u r r e n t 5% lEC, Operations NA NA 2 9 9 , 2 2 4 sq.m.
Weight (50%) i
210,000 s q . m .
b Carry-over 3% lEC, Operations NA NA NA
(l00%) ;

t S0 4 E n s u r e Efficient and Effective Operation and Maintenance of Irrigation S y s t e m s

N u m b e r of l A s with (Actual/ i
SM 7 I M T C o n t r a c t s (new No. of lAs 8% Target) x IDD, Operations N/A N/A 1 N/A
Weight 2,352 I
c o n t r a c t s only)
i
SubtOiSi 34% 1
i
^ SO 5 Improve Income Generation from Non-Irrigation Sources
1 1 1
i
1
i (Actual / Financial i
SMS ! Total Other Income 8% Target) x i Management F899,325,249 P 9 4 3 . 3 4 3 , 7 9 9 ^ F 1 , 0 0 9 . 2 9 1 083 F636.062.720 ;
Weight Department
1 1
1 i 4
/ I
NIA I 4 of
Performance Scorecard 20'

a. SARO
Actual
(Actual / Financial
Obligation over 69% 100%
a.1. Current 3% Target) x Management
Total SARO
Weight Department
releases
a.2. Continuing 100%
SM 9
i b. NCA Utilization

J b.1.CY2017 1% N/A N/A N/A 100%


(Actual / I Financial
Disbursement
Target) x i Management
b.2. CY 2016 over NCA 1% N/A N/A 100%
Weight Department

b.3. CY 2015 1°/c0 I N/A

Amount
downloaded to
; Accounts payable
the Regional
i downloaded by NIA
Offices within 3
i Central Office to (Actual/ Financial
working days 100%
SM 10 I the Regional Office 3% j Target) x Management N/A N/A
over
1 paid within 3 days I Weight Department
total amount
! from the receipt of
received by
cash from BTr
NIA Central
Office

Subtotal 17% i
/ •
/ /
NIA |5o
Performance Scorecard 2C

SO 6 j Adopt a ResuSts-Based Performance Culture


NIA IS
HRD, evaluating Draft of Procurement of
Competency All or Competency third parry
SM 11 Milestone 1% Administrative N/A CSI's
Framework nothing Framework service provider
Department proposed
contract
SO 7 Improve Management Information S y s t e m s and P r o c e s s e s
1 i Number of i
1 1 management i 4 - completed 3 - completed > 3 programs
1 o^/, >o 1 information ' (Actual/ and and completed and
Actual Number 6% MID, Corplan 2
1 ' 2 : systems & ^ Target) x implemented implemented
implemented i
1 1 processes 1 Weight
i j automated
1 1 ; Certification
(Actual / •
under ISO
1 1 ISO 9001:2008 CO/ N/A IQA conducted i - i 9001:2008 of
Aii or Nothing U /O Target) x Corplan
1 bM 1 Qertjfication , CO.. UPRMS, 4A
Weight
i & Quezon IMO
i

Subtotal 13%

TOTAL 100%
^NIA s u b m i t t e d accompiishnnents s u b j e c t to G C G validation.
Republika ng Pi]ipina5

(Pambansang Pangasiwaan ng Patubig)


Lujigsod ng Q u e i o n

FY 2017 P E R F O R M A N C E S C O R E C A R D
AS OF O C T O B E R 2017

Component Baseline Accomplishment


W e i g h t e d Averac
Data P r o v i d e r 2017 Target
Objective/Measure Formula Weight Rating System 2014 2015 2016 as of October 2017 (%)

so 1 Increased Irriqated Areas C o n t r i b u t i n g to F o o d S e c u r i t y

Sen^ice Area over SMD


P e r c e n t a g e of irrigation NIA Potential A c t u a l / Target x (Operations 61.68% 63.05% 62.22%
SM 1 4% 57% 57.33% 2.49%
development irrigable area of Weight Dept) / MID (1.497M) (1.530M) (1.510 M)
2.427 ha (Corplan)

Cropping Intensity for NIS (%) A c t u a l / Target x


CO
ai without ratooning Weight
UJ
Q SMD,
_j A c t u a l / Target x 196% 10.00%
O a. Reservoir s y s t e m s 10% Operations 186% 175% 175% 184%
j: Weight
Dept
< ( W e t + Dry Irrigated
!- SMD,
00 SM 2
Area) / F i n n e d Up A c t u a l / Target x
b. Diversion systems 8% Operations 144% 146% 141% 148% 150% 8.00%
1- Sen/ice A r e a Weight
f^ Dept
<
a. SMD,
5 A c t u a l / Target x « 00%
c. Pump s y s t e m s 6% Operations 141% 1427o 134% 148% 15'' %
< Weight
Dept
o
C/5 SO 2 Increased Productivity, Income and Satisfaction of Farmers
Satisfaction rating on services
rendered, %

At least 9 0 % of total End of year


a. NIS 5% 90% 0,00%
SM 3 accomplishment
respondents must IDD,
All or nothing NA 85.73% 9248
give a rating of 3 cr Operations
End of year
b. CIS higher 3% 90%
accomplishment
Subtotal 36% 26.49%

Page 1 of 5
Component Baseline Accomplishment
Weighted Averag
Data P r o v i d e r 2017 Target
.^/Measure Formula Weight Rating System 2014 2015 2016 as of O c t o b e r 2017 (7o)

i m p r o v e P l a n n i n g , D e s i g n a n d I m p l e m e n t a t i o n o f I r r i g a t i o n P r o j e c t s t o be C l i m a t e C h a n g e A d a p t i v e
A r e a s generated and restored
a. G e n e r a t e d (ha)

Actual / Target x
C u r r e n t Year A c t u a l area 4% Corplan 14,695 12,054.30 5,103 13,875 3,929 1.13%
Weight

Actual / Target x
Carry-over A c t u a l area 4% Corplan 26.463 20,228 11,465 19,359 9,129 1.89%
SM4 Weight

b. Restored
Actual / Target x
Current A c t u a l area 2% Corplan 3,707 14,029 4,666 11,752 3,762 0.54%
Weight

Actual / Target x
Carry-over A c t u a l area 2% Corplan NA 3,492 8,364 13,684 7,735 1.13%
Weight

R e p a i r and rehabilitation of existing


irrigation facilities
< Actual / Target x
a. Earth Canal (km.) A c t u a l length 2% Corplan 148.18 528.09 0 249 147.37 1.18%
Weight
SM 5
Actual ' Target y 1.02%
b. Concrete Lined Canal (km) A c t u a l length 2% Corplan 119.16 S71.78 459,98 1133 579
Weight
Actual / Target x 0.64%
c. N o . of Canal Structures A c t u a l count 2% Corplan 338 1,462 1,253 3,454 1,104
Weight
A r e a covered with coconet along
irrigation facilities for slope
protection, sq.m.
Actual / Target x lEC,
SM 6 Current A c t u a l area 5% NA NA 299,224 sq.m. 172,000.00 216,017.87 5.00%
Weight Ooerations
1
lEC,
Carry-over 3% NA NA NA 21 G.OOC.OC 168,148 79 2 40%

1
Operations
Ensure Efficient Effective O p e r a t i o n a n d Maintenance of Irriqation Systems
SO 4 1
]
1
N u m b e r of lAs with I M T Contracts Actual / f a r g e t x iDD, 8 00%
SM 7 No. of lAs 8% 2,292 149 111 2,352
(new contracts only) Weight Operations

Subtotal 34% 23.04%


Component Baseline Accomplishment
W e i g h t e d Averac
Data P r o v i d e r 2017 Target
„»(v1easure Formula Weight Rating System 2014 2015 2016 as of October 2017 (7o)

improve Income Generation from Non-irrigation Sources

Financial
Actual / Target x P636,062.720 P621.580,006
SM 8 Total Other Income Management F899,325,249 >1,064,733,799 '1,009,291,083
Weight
Department

B u d g e t Utilization
a. S A R O Actual Obligation
Financial 69% 100% 81%
over Actual / Target x
Current 3% Management
Total S A R O Weight
LU Department
O SM 9 Continuing releases 100% 92%
< b, N C A Utilization
z Financial
CY2017 Disbursement over 1% Provide data Provide data Provide data 100% 77%
Management
CY 2016 NCA 1% Provide data Provide data Provide data 100% 94%
Department
CY 2015 1% Provide data Provide data Provide data 100% 99%

Amount d o w n l o a d e d
to the Regional
P a y m e n t of accounts payable
Offices within 3 Financial
downloaded by NIA C e n t r a l Office Actual / Target x 100%
SM 10 working days over Management NA NA NA 100%
to the Regional Office within 3 days Weight
total amount Department
from the receipt of c a s h f r o m BTr
received by NIA
Central Office

Subtotal 17% 16.11%


Component Baseline Accomplishment
W e i g h t e d Avera
Data P r o v i d e r 2017 Target
^-/Measure Formula Weight Rating System 2014 2015 2016 as of October 2017 (7o)

^doPL^J^'=^

/ HRD, NIA is evaluating Draft of Procurement of


S M 11 Competency Framework Milestone 1%
Actual / T a r g e t x
Administrative NA CSI's p r o p o s e d Competency third party service - 0.00%
Weight
Department contract Framework provider

SO 7 I m p r o v e M a n a g e m e n t I n f o r m a t i o n Systems and P r o c e s s e s

2 of 3 programs
o
a: completed and 1 of 3
CD programs implemented
a
< N u m b e r of m a n a g e m e n t 3 - completed 3 programs
1,Online Monitoring of
Actual / T a r g e t x 4 - c o m p l e t e d and
o S M 12 information systems & p r o c e s s e s Actual Number 6% MID, Corplan 2 (remaining) and completed and
Operations and
2.00%
Weight implemented
Z automated implemented implemented
Maintenance Reports
a:
< 2. Automated Budget
LU and Fund Utilization
Monitohng

100%
ISO Certified Certification under
Certiificaticn under ISO
Actual / T a r g e t x (Central Office, 1 ISO 9001:2008 of
S M 13 ISO 9001:2008 Certification All or Nothing 6% Corplan NA B O D s i g n e d MOA 9001:2008 of CO, 6.00%
Weight big RIO, 1 Small CO, UPRIIS, 4 A &
UPRIIS, 4 A & Quezon
RIO and 1 IMO) Quezon IMO
IfvlO was received July
Subtotal 1 13% 8.00%,
TOTAL 100% 73.64%
Component Baseline Accomplishment
Weighted Avera
Data Provider 2017 Target
,^asure Fomiula Weight Rating S y s t e m 2014 2015 2016 as of October 2017 (%)

Certified Correct:

yPllJPIlV^^. BERMUDEZN^
Vicfe:£nairm^n, TWG for GCG
Manager, Public Affairs and Information Staff

ilOGEllA C. DELA TORRE


Manager, Corporate Planning Sen/ices

EDITHAD. MORALES
Manager, Financial Management Department

Approved:
E I E A S E

\i fettjufc Btiiii-ji
REPUBLIC OF T H E P H I L I P P I N E S
D E P A R T M E N T OF BUDGET A N D MANAGEMENT
B O N C O D I N H A L L . G E N E R A L S O L A N O S T R £ E T , SAN MJGLT-ZL. M A N I L A

B U D G E T CIRCULAR | No. ^on - 3


^ p i P ^ i ^ ^ ^ ^ p g ^ ^ P P ^ ^ November 16, 2017

TO : Heads of Departments, B u r e a u s , Offices, and A g e n c i e s of


the National Government, Including State Universities and
Colleges (SUCs); Government-Owned or -Controlled
Corporations (GOCCs) and Government Financial
Institutions ( G F i s ) ; L o c a l Water Districts (LWDs); L o c a l
Government Units ( L G U s ) ; and All Others C o n c e r n e d

SUBJECT : Guidelines on the Grant of Collective Negotiation Agreement


(CNA) Incentive for F Y 2017

1.0 Background

'.1 Administrative Order (AO) No. 135', s. 2005 authorizes the grant of
CNA Incentive to government employees and directs the Department
of Budget and Management (DBM) to issue the necessary poHcy and
procedural guidelines for its implementation.

'\.2 item (4)(h)(ii)(aa) of the Congress Joint Resolution (JR) No. 4,


s. 2009^, institutionalizes the grant of the CNA Incentive as a form of
rev\/ard to motivate employee efforts lov^ard higher productivity, to wit:

"(aa) Collective Negotiation Agreement (CNA) Incentive -This


may be granted to both management and rank-and-file
employees of agencies v/ith approved and successfully
implemented CNAs in recognition of their efforts in
accomplishing peiiormance targets at lesser cost, in attaining
more efficient and viable operations through cost-cutting
measures and systems improvement xxx."

i.3 Section 71 of the General Provisions of the FY 2017 General


Appropriations Act (GAA) authohzes the grant cf CNA Incentive
sourced from the aiiovv'able Maintenance and Other Operating

' Ajlhori.iriLj the Grant ot Collective Neyotiation Agreeinent ( C N A ) incentive lo E m p l o y e e s in Government


Agencies
- Joint Resulution Aulhorizing thv preiiidenl ol the Philippines to Modify the Compensation and .^^ostiion
CldStJitiGalion S y s t e m of Civilian P e r s o n n e l and the B a s e Pay Schectuic^ of Military a n a Uniformed P'efsoriMcl
ir ilie (':overnnient, and for Other P u r p o s e s
1
expenses (MOOE) allotments identified by the DBM, as foHovvs:

"Sec. 71. Rules in the Grant of Collective Negotiation Agreement


Incentive. Departments, bureaus, and offices of the National
Government, including Constitutional Offices enjoying fiscal
autonomy and SUCs may grant collective negotiation
agreement (CNA) Incentive sourced from the allowable MOOE
allotments identified by the DBM, subject to the following:

(a) There is a valid CNA executed between the agency and the
recognized employee organization which includes a
provision on cost-cutting measures io be undertaken
collectively by the agency and its personnel;
(b) The one-time annual payment of CNA Incentive shall be
made through a written resolution signed by agency
representatives from both labor and management, and
approved by the agency head:
(c) The CNA Incentive that may be granted shall be limited to
the amount identified by the DB!\4: and
(d) The payment of CNA Incentive shall be subject to approval
by the DBM and made only during the validity of
appropriations. Any excess amounts therefrom after
payment of the CNA Incentive shall reveil to the General
Fund.

GOCCs and LGUs may likev/ise grant CNA Incentive to their


respective personnel, subject to the policies, rules and
regulations issued by the DSlVl."

1.4 Section 3 of A O IMo. 25^ dated December 2 1 , 2011 mandates that ihe
harmonized Results-Based Performance Monitohng System shall be
used as a basis for determining entitlement to performance-based
allovv'ances, incentives, or corrfpensation of government personnel,
which includes the CNA Incentive.

2.0 Purpose

This Circular is issued to consolidc^te and update the policy and procediiral
^juidelines on the grant of the CNA incentive, and to harmonize the same with
The provisions of A O No. 25, s. 2011 and the Genera! Provisions of [he
- Y 2017 GAA.

3.0 Coverage

This Circular covers the fonov\/ing civilian personnel occupying regular.


.-ontractuaL or casual |.)Ositions rendenng ser\/ices on fuii-timie or part-time
ijasis in national government agencies (NGAs), including SUCs, GOCCs,

-• Cri-;atr.-i an Inlcr-Agency T a s k F o r c e on 11 le Harmonization of National Government Performance Monitoring.


Iritt.rra:iiic>'\i Kepurling S y s i e m s
2
GFis. LWDs, and LGUs, whether or not covered by Republic Act (RA) No.
6 7 5 8 ^ s. 1989:

3 1 F^anl^-and-file employees who are members of an employees'


organization accredited by the Civil Service Commission (CSC) as the
sole and exclusive negotiating agent (hereinafter referred to as
"negotiating agent") in accordance with rules and regulations issued by
the Public Sector Labor Management Council (PSLMC);

3 2 F^ank-and-file employees who are non-members of the CSC-accredited


sole and exclusive negotiating agent but want to enjoy or accept
benefits under ihe CNA, subject to payment of agency fee to the
negotiating agent in accordance with PSLMC Resolution No. 1 ^ s.
1993; and

3,3 Those who perform managerial functions.

4.0 Policy Guidelines

4.1 Conditions for the Grant of the CNA incentive

4.1.1 Existence of a CNA - (a) There should be a valid and subsisting


CNA executed betv^/een the representatives of the management
and the employees' organization accredited by the CSC as the
sole and exclusive negotiating agent for the purpose of collective
negotiations with the management of a department, line bureau,
attached agency, GOCC/GFf, LWD, or LGU.

(b) The grant of the CNA incentive must be stipulated in the CNA
or in supplements thereto.

4.1.2 Accomplisliment of Targets - (a) NGAs, SUCs, and GOCCs not


covered by RA. No. 10149^, s. 2011 should have accomphshed,
by Octobef 3 1 , 2017, at least an average of 7 0 % of all the targets
under the FY 2017 Major Final Outputs (MFCs), as specified in
Annex 2 (Fomi A) of Memorandum Circular (MC) No. 2 0 1 7 - 1 '
dated March 9, 2017, that was issued by the AO No. 25 Inter-
Agency Task Force,

(b) GOCCs covered by RA No. 10149, s. 2011 should have


accomplished, by October 3 1 , 2017, at least an average of 7 0 %
of all the targets under their respective Peri'ormance Scorecard.
as agreed upon between the Governance Commission for

An Act Frescribing a R e v i s e d Compensation ano Position Clasbificalion \n the,Government and lor Otiier
Purposes
^ Ag-iHcy "ee From Non-Members of tSie Accredited./Recognizeo Collective t-4egot!alion Agent
' An Act [(• Promo-e Financial Viability and F i s c a l Discipiine in Governmenl-Ownecl or - C o n i r o l l e o Corpoialions
anc to S rciigthen the Role of the S l a t e in its G o v e r n a n c e and Management to Make Thern More R e s p o n s ve
lo l i e NttiQs of Putjlic Interest and for Othet P u r p o s e s
' Guidelin.:iS for thie Gr&nl of ihe Perforiru.nce B a s a d Bonus for FiscaJ Y e a r 2017 under E x e c u l i v e CJrrter ilzLi]
No GO and £0 No. 201
GOCCs (GCG) and the GOCC pursuant to GCG Memorandum
Circular No. 2017-02^ dated June 30, 2017.

(c) LWDs should have a positive net balance in the average net
income for the pehod January 1 to October 3 1 , 2017, to be
validated by the Local Water Utilities Administration.

(d) Similarly, an LGU should have accomplished, as of October


3 1 , 2017, at least an average of 7 0 % of all the targets under its
programs/activities/projects approved in the LGU budget for FY
2017.

4.1.3 Submission of Accountability Reports - The NGAs and SUCs


should have submitted to DBM their respective accountability
reports as of October 3 1 , 2017 pursuant to Commission on Audit
(COA)-DBM Joint Circular No. 2014-1^ dated July 2, 2014.

^t.2 Rate of the CNA Incentive

4.2.1 The rate cf CNA Incentive shall not be pre-determined in the


CNA since it is subject to compliance with the conditions in item
4.1 hereof and the availability of the allowable allotments.

4.2.2 The CNA incentive may be given equally to all qualified


employees under item 3.0 hereof or at varying rates in
consideration of the employee's or his/her office's conthbution
to the accomplishment of performance targets, efficiency,
productivity, or profitability, as determiined by the agency head
upon recommendation of the Employees' Organization-
Management Consultative Committee.

4.2.3 in all cases, the CNA incentive shall not exceed P25,000 per
qualified employee.

4.3 Fund Sources of the CNA incentive

4.3.1 For NGAs ~ The CNA Incentive shall be sourced solely from the
ailoy^able MOOE allotments in FY 2017. provided the same
have become available as a result of cost-cutting and systems
im.provement measures undertaken by the agencies, V v h i c h are
identified m their respective CNA and supplements thereof.
Such fund sources shall be limited to the following MOOE items
as defined in the Government Accounting and Auditing Manual:

a, Traveling Expenses;

b. Conirnunication Expenses:

« inienn- ' •'eiTormdnce bvaluation System for the GOCC Serjlor


Guideiii'es Prescribing the Use of Modified Fonriats of the Budget and Financial Accouniabiliiy Renons
A
-1
c. Repairs and Maintenance;

d. Transportation and Delivery Expenses;

e, Supplies and Materials; and

f. Utility Expenses.

4.3.2 The follovv'ing shall, in no case, be used as fund source of the


CNA Incentive:

a. Balances of allotment for programis/activities/projects which


were later discontinued or deferred; and

b. Released allotments intended for acquisition of goods and


serv'ices to be distnbuted/delivered to, or to be used by
agency clients.

4.3.3 The modification of any available MOOE allotments for the


paymsent of the CNA Incentive shall, pursuant to Section 70 of
the Genera! Provisions of the FY 2017 GAA, be subject to the
approval of the Secretary of DBM.

4.3.4 For GOCCs and GFis - The CNA Incentive shall be sourced
solely from the allowable MOOE allotments in FY 2017 as
enumerated in sub-itern 4.3.1 under their respective approved
Corporate Operating Budgets (COBs), provided that the
following conditions are compiled with:

a. Actual operating income for the pehod January 1 to October


3 1 , 2017 shall, at least, meet the targeted operating income
in the approved COB for the same penod. For GOCCs/GFts,
which Dy the nature of their functions consistently incur
losses, the current year's operating loss should have been
minimized or reduced compared to or at most equal to that
of the prior year's level;

b. Actual operating expenses as of October 3 1 , 2017, are less


than the DBM-approved level of operating expenses in the
COB so as to generate sufficient source of tunas for the
payment of CNA Incentive; and

c. For income generating GOCCs/GFis required to remit


earnings, an amount equivalent to at least 5 0 % of the annual
earnings of the immediately preceding year should have
been remitted to the National Treasury in accordance with
Section 3 of RA No. 7656, s. 1993^°.

All a c l Requiring Goveinmerit-Ovv'ne:! or -Cdntrolieci Corporations to Declare Dividenas u n d e r Cerisin


C t r i d i i f t I I S lo t h d N a l i o n a l GoverniTiisnl, a n d for Oil-ier P u r p o s e s
4.3.5 For LWDs - The CNA Incentive shall be sourced solely from the
allowable MOOE allotments in FY 2017 as enumerated in sub-
item 4.3.1, under their Board of Directors-approved COBs,
subject to the provision of Item 4.1.2(c) hereof.

4.3.6 For LGUs - The CNA Incentive shall be sourced solely from the
allowable MOOE allotments in FY 2017 as enumerated in sub-
item 4.3.1, under their respective approved LGU budgets.

^.4 Payment of the CNA Incentive

4.4.1 The CNA Incentive for the year shall be a one-time benefit to
be granted not earlier than December 15, 2017.

4.4.2 It cannot be given immediately upon signing and ratification of


the CNA as this will transform the CNA Incentive into a CNA
Signing Bonus which the Supreme Court, in the case of Social
Security System vs. COA^\s prohibited for not being a truly
reasonable compensation.

4.4.3 The CNA incentive for the year shall be granted only duhng the
validity of approphations from which the available MOOE
allotments shall be sourced.

4.4.4 The amount paid as CNA Incentive shall be recorded in tne


agency books under the account code "Collective Negotiation
Agreement Incentive-Civilian," "Other Benefits," and "Collective
Negotiation Agreement Incentive'"' for NGAs, LGUs, and
GOCCs/GFis, respectively.

Procedural Guidelines

5.1 An Emipioyees' Organization-Managemient Consultative Committee


(Committee, for brevity) or a sim.ilar body composed of representatives
from m.anagement and the negotiating agent shall determine if the
agency is qualified for the grant of CNA Incentive based on compliance
with the requirements under this Circular.

if qualified, the Committee shall review the agency's financial records


and submit recommendations on the following, for approval of the
agency head:

5.1.1 The total amount of allowable MOOE allotments in item 4,3


hereof which has become available as a result of cost-cutting
and sysien-!S improvement measures identified in the CNAs and
supplements thereto, and which was the result of the joint efforts
of management and employees;
5.1.2 The internal guidelines to be followed in the grant of the CNA
Incentive, such as; (i) the specific criteha for determining who
are entitled; and (ii) the disthbution of the amount available and
the rate of the CNA incentive in accordance with item 4.2 hereof.

5.1.3 .As provided in Section 71(d) of the General Provisions of the FY


2017 GAA, any excess amount from the allowable M O O E
allotments after payment of the CNA Incentive shall revert to the
General Fund.

5.2 In large departments wherein regional offices have been accredited


by the CSC as the negotiating agent, the Departmiont Secretary or his
duly authonzed representative should provide internal guidelines to
ensure uniformity and equity in the negotiation process, monitor the
progress of simultaneous negotiations, and ensure com.piiance with
the provisions of this Circular.

6.0 Reportonal Requirement

Each fvlGA and SUC shall submit to the DBM's Budget and Management
E^ureau or Regional Office concerned not later than January 3 1 , 2Q18, the
annua! report on the grant of the CNA Incentive by following the template in
Annex "A."

7.0 Responsibility of Agency Heads

Agency heads shall be responsible for the implementation of the provisions of


tnis Circular in their respective offices. They shall be held administratively,
Civilly, and/or chminally liable, as the case may be, for any payment of the
CNA Incentive not in accordance with the provisions of this Circular, without
P'-rejudice to refund by the employees concerned of any unauthchzed or
excess payment thereof.

8.0 Fvepeaiing C l a u s e

All existing circulars or issuances on the grant of the CNA Incentive, which are
inconsistent herewith, are hereby repealed or modified accordingly.

9.0 Effectivtty

This Circular shall take effect immediately.

BENJAMIN E . DiOKNO
Secretary ^m^-^^

7
Annex "A"

Report on the Payment


of Collective Negotiation Agreement (CMA) Incentive For
FY

Department/.^ency:

I. If CNA Incentive Was Granted

Total AnK>unt Paid for the CNAIncentivt;:


i-Juniber of Qualified Personnei
Regular xxx
Contractual xxx
Casual xxx
'•oiat xjox

-^aie ot CNA Incentive

"''ota! Amount Paid

Fund Sou'ces:

'Jbjectof Expenditures
xxx
xxx
xxx
xxx
x>:x
''oial xxx)t.

II. If the CKA incentive Was Not Granted

Please s-iaie reason/s tor non-grant

Submitted by: Certified Correct:

y^gency Head

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