LOCAL WATER UTILITIES ADMINISTRATION P.0. BOX 34, UP. Post Office, Katiounon Avenue, Balara, Quezon City Tel No.: 920-5881 to 99: 920-5601 FaxNo. (692) 922-34:34 Administrators Direct Line: (02) 929.61-07 LWUA Website: www.wua.gov.ph December 9, 2019 Wel ioal key MEMORANDUM CIRCULAR NO. TO : BOARD OF DIRECTORS OF LOCAL WATER DISTRICTS SUBJECT : IMPLEMENTING GUIDELINES FOR THE GRANT OF PERFORMANCE-BASED INCENTIVE (PBI) FOR BOARD OF DIRECTORS OF LOCAL WATER DISTRICTS (twos) 1, BACKGROUND AND PURPOSE This Memorandum Circular is being issued pursuant to Section 9 of Executive Oder (E.0) No. 65, s. 2012", which mandates LWUA to develop a set of performance criteria to determine the compensation of Members of the Board of Local Water Districts in the form of Performance-Based Incentives (PBI), endorsed by the Governance Commission for GOCCs (GCG) and subject to the approval of the President. 2. POLICY CONSIDERATIONS The PBI shall be anchored on the following policy considerations: a. Promote transparency, accountability and prudence in government spending; b. Enable LWDs to effectively and efficiently perform their respective mandates and became significant tools for economic development; and, ._ Strengthen the overall governance and management of LWDs. 3. ENTITLEMENT Section 9 of E.O No. 65 states that members of the Board of Directors of LWDs may be entitled to PBI not to exceed 50% of the actual annual per diem received for Regular and Special Board meetings (maximum of 24 meetings per year). ' Prescribing Rules to Govern the Compensation of Members of the Board of Local Water Districts pursuant to Section 5 of Executive Order No. 24 (s. 2011) “big sa Nayon Alay sa Pilpinasl021219, 4, CONDITIONS TO ENTITLEMENT 4.1 The LWD must have been eligible and granted the Performance-Based Bonus (PBB) to its officers and employees pursuant to the requirements prescribed under DBM- LWUA Joint Circular2018-01", namely: (a) Satisfy 100% of the good governance conditions set by the A.O. 25 Inter-Agency Task Force (IATF) for FY 2018 (Sec. 5.1.4)"; (b) Achieve 100% of each one of the performance targets for the delivery of MFOs, Support to Operations (STO) and General Administrative and Support Services (GASS) for the year (Sec. 5.1.b)*; and, () Use the CSC-approved SPMS in rating the performance of the officials and employees of the LWDs. 4.2 Additional Conditions 4.2.1 Attendance — no appointive director shall be entitled to the PBI unless he/she shall have attended at least 90% of all authorized and duly called for board meetings (but not to exceed 24 meetings) for the applicable calendar year. In determining the total number of authorized and duly called for regular board meetings, the following parameters shall be observed: (a) Absences arising from the actual conduct of official business for the LWD are considered excused absences provided, the Director shall submit official documentation® of such official business, such as, but not limited to, a travel authority, certificate of appearance, attendance sheet and invitation; (b) Absences arising from serious medical conditions “shall be considered excused only upon submission of official documentation such as medical abstract or certificate; (c) Unexcused absences: c.1 Absences arising from filial obligations even if approved by the Board of Directors; and, €.2 Approved vacation leaves. ? DBM — LWUA Joint Circular No. 2018-01 (Guidelines on the Grant of the Fiscal Year 2018 Performance Based Bonus (PBB) for Local Water Districts (LWDs) issued pursuant to Executive Order No. 80 and Memorandum Circular No. 2018-01) * Cenificates issued by the Director himself/herself or by the Board Secretary are not considered offic documentation “Sickness or physical condition that prevents a Director from physically attending a Board meeting as certified by a medieal doctor.0.24 519 4.2.2 Board Vacancy - There should be no vacancy in the Board for more than three (3) months, unless the vacancy has remained unfilled due to extraneous factors beyond the control of the LWD Board of Directors. 4.2.3 Length of Service — No Director shall be entitled to the PBI unless he/she has rendered at least eleven (11) months of aggregate service as LWD Director for the year of entitlement. 4.2.4 Directors’ per diem should be approved by LWUA. 4.25 Appointments of Directors must be in conformance with P.D. 198°, as amended. 4.2.6 Notarized Documents a) Certification by the Board Secretary that there is no vacancy in the Board for more than 3 months. In case a vacancy has remained unfilled due to ‘extraneous factors beyond the control of the LWD Board of Directors, the Board Secretary shall execute a certification to justify the same; b) Certification by the Individual Appointive Director (IAD) that he/she has not been found guilty of administrative and/or criminal case related to his/her function in the Water District and the relevant court decision has become final and executory; ©) Certification by the Board Secretary that the IAD has rendered 11 months of aggregate services for the year of entitlement; and <) Certification by the Board Secretary that the IAD has attended at least one (2) policy making seminar. 5. CHECKLIST OF DOCUMENTS FOR SUBMISSION 5.1 Board Resolution requesting the grant of the PBI to the LWDs Directors 5.2 Certification under oath from the Board Secretary on the Eligibility of the Appointive Director using PBI Form 1 which provides for the following: (a) Compliance to the conditions stated in Section 4.0, Conditions to Entitlement; and, (b) Details of the Total Actual Authorized per diems received. *Provincial Water Utilities Act of 1973O29; 5.3 Substantial attendance of the Director/s using PBI Form 2 for Regular and Special Board Meetings. 5.4 Copies of the minutes of the meetings showing attendance of the Director/s; and 5.5 Supporting documents for absences due to official business per 4.2.1 b. 6. EFFECTIVITY This Circular shall take effect immediately. Ei a. tapus Acting AdministratorOi2 Niet 94 PBI Form 1 Republic of the Philippines Region = Province LOCAL WATER DISTRICT CCCNo. _ LW0 Office Address CERTIFICATION OF ELIGIBILITY OF APPOINTIVE DIRECTORS FOR CY. This is to certify that the following Members of the Board of (name of LWD) are eligible to receive the Performance-Based Incentive (PBI) pursuant to LWUA M.C. No. and actually received the following per diems: : ‘Actual Annual Authorized Per Diems | one es] es Meee eae Board Subtotal Incentive Factor (x) | Total(*) v]ale[s|e ‘Subtotal Total PBI for All Eligible Members This certification has been issued to attest to the truth and accuracy of all the information contained herein based on available records and information that can be verified with the Local Water District. Done, this day of 2019 at ines. Board Secretary SUBSCRIBED AND SWORN to before me, this day of in Philippines. (Person Administering Oath) Doc No. Page No. Book No. Series of 20191% 021 PBI FORM 2 Republic of the Philippines Region - Province LOCAL WATER DISTRICT CCC No. LWD Office Address DIRECTORS’ ATTENDANCE FORM. For the Period January to December BASIC INFORMATION Name of Board Member Position Date of Most Recent Appointment BOARD MEETING (Regular and Special - Maximum of 24 meetings/yr) Name of Board Member Total Actual % Date of Board Meeting Legends: P—Present NA~ Not Applicable Certified by: ‘A~ Absent (0B - Official Business Board Secretary021,19 VALIDATION ON THE GRANT OF 2018 PERFORMANCE-BASED INCENTIVES (PBI) FOR THE BOARD OF DIRECTORS OF WATER DISTRICT Required Documents Yes No Remarks 1) LWD 208 PBB Eligibility 2) Board Resolution requesting the grant of PBI 3) PBI Form 1 — Certification of Eligibility of Individual Appointive Directors (IAD) for CY 2018 2) PBI Form 2 — IAD Attendance Form Jan-Dec 2018 (signed by the Board Secretary) 5) PBI Form 3 — Validation on the Grant of 2018 PBI for Board of Directors 6) Duly Notarized Certification by the Board Secretary that the WD BODs complies with the following: (see Annex A) a. No vacancy for than 3 months b. IAD has not been found guilty of administrative and/or criminal case. c. Rendered at least 11 mos. of aggregate Services for the year of entitlement d, Attended at least one (1) policy making seminar 7) Availability of Funds 8) Appointment — in conformance with PD 198 9) Per Diem —LWUA Approved a Date Approved: RECOMMENDATION: Approval and Release of 2018 PBI of. Validated/Reviewed by: ‘Management Advisor Recommending Approval: EILEEN L. DELA VEGA Acting Deputy Administrator, IDS WD BoD. Certified Correct: Division Manager, UDEV_ Approved by: JECI A. LAPUS Acting Administrator Page 1021619, PBI FORM 3 VALIDATION ON THE GRANT OF 2018 PERFORMANCE-BASED INCENTIVE (PBI) FOR BOARD OF DIRECTORS OF WATER DISTRICT Vacancy ~ Attended at | Not guilty of mecarwnsee | "mee | ine | omarO) a months months seminal miata ) 2) 3) 4) 5) Page 2