U Republic of the Philippines

DEPARTMENT OF FINANCE Roxas Boulevard Corner Pablo Ocampo, Sr. Street Manila 10(4

DEPARTMENT ORDER NO. X10 - 06 01 March, 2006

SUBJECT:

Defining the Roles of DOF Offices in the Implementation of the Land Administration and Management Project Phase 2 (LAMP2) and the Creation of Valuation Project Management Office (PMO)

TO

All Concerned.

:

Pursuant to Executive Order No. 467, series of 2005 defining the implementation arrangements for Land Administration and Management Phase 2 (LAMP2), and in accordance with the Project Design Document (PDD), and the Loan Agreement between the World Bank and the Government of the Philippines, the following implementation arrangements for LAMP2 within the DOF are hereby established for the guidance and compliance of all concerned.

SECTION 1. - Overall Implementation Arrangements for LAMP2. The Department of Environment and Natural Resources (DENR) will be the executing agency to implement the project, while the Department of Finance (DOF), through the Bureau of Local Government Finance (BLGF) and the National Tax Research Centre (NTRC), will implement one Component. The DENR will manage Components 1, 2, 3, and 5. The DOF will manage Component 4 and will have input to the valuation education and training under Component 2. The Land Registration Authority (LRA), through the Register of Deeds (RD) will be actively involved in the implementation as Manager of the One-Stop Shops (OSS) in selected sites. The LAMP Presidential Task Force will serve as a National Steering Committee (NSC), which will oversee policy development and project implementation. A Project Coordination Office (PCO) will be established in DENR to coordinate policy formulation and project implementation. The PCO will be headed by a Project Executive Director who will report to an Undersecretary of the DENR. Support on financial management and procurement would be provided to the PCO by the Central Project Management Office (CPMO) under DENR for Components 1, 2, 3, and 5. The Project Management Office . (PMO) under DOF will support financial management and procurement for component 4. Component 4 will be managed by the DOF through the NTRC and the BLGF, which will also be responsible for procurement, financial management and monitoring, and evaluation. Implementation offices at the Local

Government Units (LGUs) will be established to implement the pilot testing and application evaluation standards. These offices will be lodged with the Assessor's Offices of the participating LGUs. The Organizational Structure for LAMP2 is hereto attached as Annex "A" to form an integral part hereof.

SECTION 2. - Designation of DOF Senior Focal Official for LAMP2 - The DOF is the agency responsible for the implementation of the Valuation Component. The DOF Undersecretary in charge of BLGF operations is responsible for the project and is hereby designated as, the Senior Focal Official for LAMP with the following responsibilities: a.) b.) c.)

d.)

e.) f.) g.)

Ensure high-level representation with development partners namely: AusAID and the World Bank. Represent the DOF in the National Steering Committee (NSC) and the Project Coordination Committee; Supervise the operations of the PMO for the Valuation Component, review its quarterly and annual work plans, monitor its overall performance and act on policy matters referred to it by the Component Manager; Provide guidance on the overall strategy for implementing the policy advocacy for land valuation reform; and, in coordination with other officials of the DOF and DENR, represent the project in high-level discussions with Congress and the members of the Executive to advance the valuation reform agenda; Supervise the mainstreaming of LAMP policy and technical innovations on the regular operations of the DOF; Coordinate with relevant officials of the DOF to ensure their participation and support to LAMP Valuation activities; and Act as Chair of the DOF Valuation Management Committee.

In addition, the DOF Senior Focal Official for LAMP2 will provide the Secretary with regular updates on the progress of the Project, and shall alert the Secretary on matters requiring his attention.

SECTION 3. - Creation of the Valuation Project Management Office (PMO) - There is hereby created a Valuation PMO within the DOF to be led by the BLGF. The PMO will be responsible for day-to-day management of the component including technical, procurement, financial, planning, monitoring, and evaluation functions. Actual implementation of piloting and/or application of valuation standards will be done through selected LGUs particularly with the assessor's offices. The responsibilities of the Valuation PMO are as follows: a.)

Facilitate the integration activities with the project;

and coordination of Component

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U b.) c.) d.)

e.)

f.)

g.)

h.)

i.)

j.) k.)

I.)

m.)

n.) o.)

p.)

q.)

Organize and implement Component activities in accordance with the project implementation plan; Prepare the Component work and financial plan and ensure consistency of the plan with the Project implementation plan; Monitor progress of component implementation against milestones and performance indicators established, identify bottlenecks and implementation issues/problems and facilitate execution of agreed remedial actions; Design and conduct evaluation studies to determine emerging impacts from component activities and identify and document lessons useful for the design of the next phase. Establish linkages and coordination with the LAMP2 PCO, and other project implementing entities to ensure successful implementation of the Component; Render reports to the PCO and other appropriate agencies/entities on the progress of the.Component and bring to their attention implementation issues and problems requiring their action; Coordinate with the DENR Lands Management Bureau in the development, testing and application of valuation standards for government lands; Lead in the mainstreaming of relevant standards, systems, procedures and institutional mechanisms within the DOF through a program of advocacy and issuance of supporting policies; Promote the adoption of LGUs of valuation standards based on the results of pilot activities in selected LGUs; In coordination with the Policy Development Component of LAMP2 in DENR, develop and implement advocacy and consensus building program for the proposed legislative proposals on valuation; Assist selected LGUs in the implementation of valuation standards, document results and share findings with stakeholders; Design and implement a public relations program on the valuation component of the project, with the purpose of generating awareness and enlisting support from stakeholders to achieve its objectives; Establish coordination with relevant agencies to ensure their support and participation in the conduct of component activities; In coordination with the Institutional Development and Capacity Building Component of LAMP2 in DENR, provide relevant inputs to the planning and implementation of activities relative to the improvement of capacity in valuation education; Following the guidelines set forth in LAMP2 Financial Management and Procurement Manuals, manage the financial and procurement requirements of the Component; Provide overall administrative support to the operations of the Component; .

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SECTION 4. - Composition and Staffing of the Valuation PMO The BLGF Executive Director shall perform the responsibilities of the Component Manager, while the NTRC Executive Director is hereby designated as the Deputy Component Manager. The Component Manager will report to the DOF Undersecretary and LAMP Senior Focal Official, PCO, and the NSC on the Component's overall progress, and bring issues that require their attention. The Component Manager will coordinate closely with the NTRC to ensure the integration of activities managed by the latter with the rest of the Component activities. The existing organic staff from NTRC and BLGF will man the PMO.. Additional staff will be engaged through LAMP2, when deemed necessary to implement activities of different PMO units. BLGF and NTRC will implement selected key activities under the Component, namely: Valuation and Taxation Policy and Valuation Standards and Simulation. The BLGF will be responsible for overall management, including overall support to planning, monitoring and evaluation, finance, procurement, and administrative support. It will also lead human resources development aspects of the Component.

SECTION 5. - Establishing the Valuation Management Committee - A Management Committee is hereby created to render technical and management direction for the Component. A Technical Assistance Team shall provide technical support to the Component. The Component Manager, Deputy Component Manager, and a senior official from the BIR, shall constitute the Management Committee. The Management Committee shall perform the following functions: a.) b.) c.) d.) e.)

Review the progress and performance of the Valuation Component; Resolve issues affecting implementation; Review integrated work plan for the Component prior to endorsement to the PCO for consolidation; Ensure the proper coordination between the BLGF and NTRC in the implementation of activities under the component; Review any changes required in the implementation of activities and make appropriate recommendations to the PCO/NSC.

SECTION 6. - Structure and Composition of the Valuation PMO The Valuation PMO shall consist of four (4) units to wit:

1.

Valuation and Taxation Policy Unit

The Valuation and Taxation Policy Unit shall be divided into two: the Valuation Policy Unit and the Taxation Policy Unit.

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U a.

Valuation Policy Unit - The Valuation Policy Unit shall be led by the BLGF. A suitably qualified staff shall be designated to serve as Valuation Policy Unit Chief. The functions of the Valuation Policy Unit are as follows: (i) (ii)

(iii) (iv)

b.

Taxation Policy Unit - The Taxation Policy Unit shall be led by the NTRC. A suitably qualified staff shall be designated to serve as Taxation Policy Unit Chief. The Taxation Policy Unit shall conduct necessary investigations and formulate recommendations and appropriate policy action by the DOF or the legislative. It shall identify policy issues particularly those that will have bearing on valuation reforms in the following areas of taxation: (i) (ii) (iii)

II.

Implement consensus building and advocacy activities for the NAA. Identify other policy issues in the area of property taxation, public sector land management valuation, and conduct necessary investigations, formulate recommendations and appropriate policy action by the DOF or the Legislative. Organize the Transition Task Group for the NAA and support its operations in preparing the transition plan; Support other legislative measures to promote the licensing and regulation of appraisers with associated professional association and educational qualifications; (i.e. the draft bill of Professionalization of Valuation Practice.)

National Taxes Local Taxes Fees and Charges

Valuation Standards and Simulation Unit

The Valuation Standards and Simulation Unit shall be divided into (1) the Valuation Standards Unit and (2) the Simulation Unit:

a.

Valuation Standards Unit - The Valuation Standards Unit shall be led by the BLGF. A suitably qualified staff shall be designated to serve as Valuation Standards Unit Chief. The functions of the unit are as follows: (i)

Improve valuation standards for tax purposes and expand for use of other government agencies and the private sector; Promote adoption of valuation standards through integration in Appraiser's Manual and issuance of DOF regulation;

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(iii) (iv) b.

Simulation Unit - The Simulation Unit shall be led by the NTRC. A suitable qualified staff shall be designated to serve as Simulation Unit Chief. The functions of the Unit are as follows: (i) (ii) (iii)

Ill.

Conduct consultations with agencies to promote adoption of single valuation standard; Orient selected LGUs on valuation standards;

Develop and test simulation models for valuation for taxation purposes. Continue simulation study in Antipolo; and Assist Sta. Rosa in the revision of its SMV based on recommendations of the simulation study.

Valuation HRD Unit

The Valuation HRD Unit shall be led by the BLGF. A suitably qualified staff shall be designated by the BLG.F to serve as Unit Chief. The functions of the Valuation HRD Unit are as follows: (i)

(ii)

(iii) (iv) (v) (vi)

IV.

Conduct Training Needs Assessment to determine capability. building and education requirements in the property valuation sector. Support the establishment of a National Appraisal Professional Association, its accreditation and recognition by an international valuation institute. Prepare training plan and institutional development plan for NTRC, BLGF, NAA; Organize and implement training activities; Establish links with educational institutions to put in place valuation education; and Create and provide secretariat support to the Valuation Education Committee. Management Support Unit

The BLGF shall take the lead in the Management Support Unit. It shall designate a suitably qualified staff to serve as Unit Chief. The responsibilities of the Management Support Unit are as follows: (i) (ii) (iii)

Provide financial, administrative, and procurement support to the valuation PMO, including the operations of its units; Manage the Special Account, and prepare the required reports as specified in the Financial Management Systems Manual; Perform procurement responsibilities to ensure that the required goods and services for the implementation of various activities are made available in a timely manner, following the policies, guidelines and procedures indicated in the LAMP2 Procurement Manual;

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(iv)

(v)

(vi)

Assist other units in the preparation of work and financial plans and review and consolidate component work and financial plans for integration with LAMP2 plans of the PCO; Perform monitoring and evaluation functions for the component, provide timely feedback to the Component Manager, Deputies and Unit Heads, as appropriate, and assist in the identification and resolution of issues requiring their attention; Prepare regular reports on the progress of activities and submit copies to the LAMP2-PCO, PCC, World Bank, and AusAID.

The organizational structure of the Valuation PMO is hereto attached as Annex "B" to form an integral part hereof.

SECTION 7. - Establishment of LGU Valuation Implementation Offices (LVIO) - The Valuation PMO shall coordinate with regional BLGF Offices and selected LGUs to facilitate the establishment of LVIOs. At the LGU level, implementation will be carried out at the Assessor's Office. The. Assessor shall be responsible for the day-to-day coordination and implementation of project activities. The Assessor's Office will be mobilized for project implementation. In accordance with the institutional development framework for inter-agency cooperation to be developed under Component 2, the LGU Valuation Manager shall establish partnership arrangements with municipal LGUs and relevant agencies and other local groups to ensure project success. As may be necessary, BLGF. NTRC and LGU employees shall be detailed to the project to ensure smooth project implementation..

SECTION 8. - Funding - The budget required to implement the provisions of this Department Order shall be sourced from the funds of LAMP2.

SECTION 9. - Repealing Clause - All Orders, Circulars and Issuances inconsistent herewith are hereby deemed revoked, amended, or modified accordingly.

SECTION 10.- Effectivity - This Department Order shall take effect immediately.

MARGARITO B: TEVES Secretaryy l J.4' ^-.. U-U

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Annex A. Lamp2 Organizational Structure

National Steering Committee Technical Assistance Team

Valuation PMO (DOF)

Central Project Mngt Office Project Coordination Committee

Project Coordination Office

Interagency Technical Working Group

DENR Regional Offices

DENR-PENRO Provincial/Cities Implemenation Offices

LGU Valuation Implementation Office

DENR C EN RO/Municipalities

Local Steering Committee

One Stop Shops RD/DENR

Annex B. Valuation PMO Organizational Structure

DOF Undersecretary

Technical Assistance Team

------------------

Component Manager (BLGF Executive Director)

- Management Committee (BLGF, DOF, NTRC, SIR)

Deputy Component Manager (NTRC Executive Director)

Valuation and Taxation Policy Unit

Valuation Policy Unit

(BLGF)

Taxation Policy Unit (NTRC)

Management Support Unit (BLGF

Valuatic Standards Simulation

Valuation Standard Unit (BLGF)

LGU Assessor's Office LGU Valuation Implementation Office

Valuation HRD Unit (BLGF