Linking Up LGU Operations

LINKING UP LGU OPERATIONS A Guide to Computerization of Tax-Related Functions in the Local Government Units Copyright © Bureau of Local Government Finance, 2009 8F, EDPC Bldg., BSP Complex, Roxas Blvd. 1004 Metro Manila, Philippines Telefax: + 632 524-6324 Web: www.blgf.gov.ph Email: [email protected] First Printing, 2009. Cover design and layout by Niño Alvina. All rights reserved. No part of this book may be reproduced in any form or by any means without express permission of the copyright owners and the publisher. ISBN 978-971-93448-1-0 Printed in the Philippines.

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units i

LINKING UP LGU OPERATIONS A Guide to Computerization of Tax-Related Functions in the Local Government Units

September 2009

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units ii

PURPOSE

The purpose of this Guide is to provide information and advice to the LGUs contemplating the procurement, development or upgrading of computer systems for property assessment and taxation functions. This Guide is applicable to proprietary systems and those considered open source.

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units iii

Republic of the Philippines

DEPARTMENT OF FINANCE Roxas Boulevard Corner Vito Cruz Street

Manila 1004

Department Order No. 35-09

01 September 2009 SUBJECT : Guide to the Computerization of Tax-Related LGU Functions

TO : All BLGF Regional Directors; Provincial, City and Municipal Assessors, Treasurers and BPLO Chiefs; and Others concerned —————————————————————————————————————— Pursuant to the Land Administration and Management (LAM) agenda and the long-term commitment of the Philippine Government to undertake property valuation and taxation reforms under Component 4 of the Second Land Administration and Management Project (LAMP2), and to the provisions of Republic Act No. 8792, other-wise known as the Electronic Commerce Act of 2000, the “Linking Up LGU Opera-tions: A Guide to Computerization of Tax-Related Functions in the Local Government Units” is hereby issued as a reference document for the local government units (LGUs) on matters relating to the development and implementation of computeriza-tion projects for real property appraisal, assessment and tax-related systems and operations of the LGUs. The Guide herein issued recommends key considerations, requirements and sustain-ability perspectives to be observed by the LGUs to efficiently and effectively achieve the objectives of computerization. It consists of seven annexures, as follows:

1. Functional Requirements for Property Valuation and Taxation Systems 2. Minimum System Specifications 3. National Data Exchange Standards 4. e-Readiness Self-Assessment and Achieving Readiness Tools 5. Proposed Minimum ICT Organizational Structure 6. Assessment, Treasury, and BPLO Workflow 7. Computerization Budget Template

All concerned LGU officials and BLGF Regional Directors are hereby encouraged to be guided by this publication.

MARGARITO B. TEVES Secretary

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units iv

MESSAGE

For a long time, many local government units (LGUs) have pondered on exploring the uncharted territory of computerization to improve their systems of revenue generation and management of resources for better and more transparent govern-ance and service delivery to their constituencies. Some ventured successfully, while others have failed as they have not considered due diligence in the process or did not have the adequate knowledge of the complex ins and outs of computerizing local government operations—mainly the tax-related functions. As the DOF introduces reforms in the property valuation and taxation systems, un-der the Second Land Administration and Management Project (LAMP2), through the Bureau of Local Government Finance (BLGF) and National Tax Research Center (NTRC), the need to create a set of national guidelines on the computerization of LGU tax-related functions has become more pronounced to realize the objective of improving the quality of property appraisal, assessment and taxation. The Project is supported by a loan from the World Bank and technical assistance grant from the Australian Agency for International Aid (AusAID). This publication is a result of a series of technical field visits and interviews by the Bureau of Local Government Finance (BLGF) with various officials and personnel of assessment, business permits and treasury offices in partner LGUs, and thorough research and review of selected software available in the market today. A multi-stakeholder technical working group (TWG) was also constituted which held a series of discussions to review and finalize this Guide. The TWG was composed of repre-sentatives from the BLGF, the Commission on Audit, the Department of Budget and Management, the Department of the Interior and Local Government, the National Computer Center, the League of Municipalities of the Philippines, the League of Provinces of the Philippines, and the LGUs of Naga, Santa Rosa and Quezon cities. An important publication such as this is a ‘must read’ for the LGUs for them to be guided accordingly in their computerization endeavors and not fall easily into the trap of computerization pitch. This publication enumerates the desired practices in computerization, and features important lessons for the LGUs to follow. The DOF congratulates the BLGF for coming out with this landmark publication which undoubtedly will help improve the taxation-related systems of LGUs. Local officials and other stakeholders with computerization projects are strongly enjoined to adopt this document.

MARGARITO B. TEVES

Secretary

Republic of the Philippines

DEPARTMENT OF FINANCE Roxas Boulevard Corner Vito Cruz Street

Manila 1004

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units v

MESSAGE

In the last 50 years or so, rapid advancements in information and communications technology (ICT) have prompted governments around the world to use it as a tool for governance. ICTs, particularly the computer and related technologies, have been used in various fronts to raise the quality of government services, enhance produc-tivity in public organizations, and promote transparency in official transactions. This technological wave was felt in the Philippines with the influx of state computerization projects towards the late 1990s, especially with the passage of the Electronic Commerce Act of 2000 which required national agencies to put their ser-vices online. This trend permeated the walls of national government agencies and encouraged the LGUs to follow suit. In the field of property assessment and taxation, not a few LGUs have taken the cou-rageous leap from manual to automated operations. Anecdotal evidence suggests that eradicating the manual system has not always delivered a positive outcome due to the LGU’s inadequate preparation for computerization. With the assistance of LAMP2 in the development and publication of this Guide, I sincerely hope that LGUs contemplating a transition to an electronic system, or those that wish to simply upgrade their existing systems, will find this a vital tool to put them in a better position to tread the often tedious path to computerization. To date, no literature on this subject matter tailored to LGU needs has been published, and the BLGF aims to fill this gap. Likewise, recognizing the benefits of automating taxation functions in the long run, BLGF strongly promotes computerization. This Guide is a tool for the LGUs as they decide whether or not to take on such challenge. This Guide is an easy reference that seeks to enlighten and empower the LGUs when they negotiate with system suppliers, work out budget plans and approve project contracts. This Guide is distinct as it focuses on property assessment and tax func-tions in the LGU context. Aside from expert knowledge, it is based on real experi-ences of LGUs and system suppliers in the Philippines, and provides useful insights on common problems, prerequisites, system characteristics, technical support, data migration and encoding, costs, and e-readiness assessment, among others. It is with great pride that I present to you this Guide, in the hope that it will prepare you well for computerization and wishing you success in every step of the way.

MA. PRESENTACION R. MONTESA BLGF Executive Director

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units vi

LIST OF ACRONYMS

ADRG ARC Digitized Raster Graphics AI Adobe Illustrator ARC Arc-Second Raster Chart ARPN Assessment of Real Property Number ASRP ARC Standard Raster Product BIN Business Identification Number BIR Bureau of Internal Revenue BLGF Bureau of Local Government Finance BMP Bitmap BPLO Business Permits and Licensing Office CAD Computer-Aided Design CIB Controlled Image Base CICT Commission on Information and Communications Technology COA Commission on Audit DENR Department of Environment and Natural Resources DIGEST Digital Geographic Information Exchange Standard DILG Department of the Interior and Local Government DOF Department of Finance DTED Digital Terrain Elevation Data DXF Autodesk Drawing Exchange Format EMF Enhanced Metafile e-NGAS Electronic New Government Accounting System EPS Encapsulated Postscript FAAS Field Appraisal and Assessment Sheet GIF Graphic Interchange Format GIS Geographic Information System GPS Global Positioning System HDF Hierarchical Data Format ICT Information and Communication Technology ISMO Information Systems Management Office (formerly EDP/MIS) ISP Internet Service Provider ISSP Information Systems Strategic Plan IT Information Technology JFIF JPEG File Interchange Format JPEG Joint Photographic Experts Group LAN Local Area Network LCE Local Chief Executive LGU Local Government Unit MMA Metro Manila Area MOA Memorandum of Agreement MV Market Value NAMRIA National Mapping and Resource Information Authority

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units vii

NCC National Computer Center NETCDF Network Common Data Form NITF National Imagery Transmission Format NSCB National Statistical Coordination Board NSGIC National States Geographic Information Council OGC Open Geospatial Consortium, Inc. OLE Object Linking and Embedding OR Official Receipt OS Operating System PDF Portable Document Format PIN Property Identification Number PMT Project Management Team PNG Portable Network Graphics PSGC Philippine Standard Geographic Code PSIC Philippine Standard Industrial Classification RCD Report of Collections and Deposits RDBMS Relational Database Management System RESAS Real Estate Sales Analysis System RPT Real Property Tax RPTA Real Property Tax Administration RPU Real Property Unit SCR Summary of Collections and Remittances SDC Smart Data Compression SEF Special Education Fund SMS Short Message Service SPI Standard Parcel Identifier SQL Structured Query Language SRE Statement of Receipts and Expenditures SRS Systems Requirements Specification TDN Tax Declaration Number TIFF Tagged Image File Format TNA Training Needs Analysis TOR Terms of Reference UPS Uninterruptible Power Supply USGS United States Geological Survey USRP Universal Polar Stereographic Standard Raster Product UTM Universal Transverse Mercator VPF Vector Product Format WMS Web Map Service

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TABLE OF CONTENTS Purpose Statement iii

DOF Order No. iv

Messages v

List of Acronyms vii

Definition of Terms 1

1. Introduction 5

2. Scope and Limitations 5

3. Computerization Problems in the LGUs 6

4. Prerequisites for Computerization 7

5. Cost Considerations in Computerization 10 5.1 Pre-Implementation Costs Requirements 12 5.2 Implementation Cost Requirements 13 5.3 On-Going Cost Requirements 15

6. Desirable System Characteristics 15 6.1 General 16 6.2 Database 17 6.3 User Interface 17 6.4 System Security 17 6.5 Performance 18

7. System Support 18 7.1 Services Provided 18 7.2 Software License Conditions 19 7.3 Customization of Software 20 7.4 Technical Support 21 7.5 Training 21 7.6 System Documentation 22 7.7 Database and Source Code Ownership 23

8. Data Migration and Encoding Considerations 23 8.1 Data Migration 24 8.2 Data Encoding 24

9. Change Management 26 9.1 Communications 26 9.2 Training 27 9.3 Workforce Planning 27 9.4 Evaluation 27

Annexes

A. Functional Requirements for Property 29 Valuation and Taxation Systems

B. Minimum System Specifications 47

C. National Data Exchange Standards 51

D. e-Readiness Self-Assessment 57 and Achieving Readiness Tools

E. Proposed Minimum ICT Organizational Structure 63

F. Assessment, Treasury, and BPLO Workflow 67

G. Computerization Budget Template 69

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units ix

DEFINITION OF TERMS

Assessment (Real Property Context): Act or process of determining the value of a property, or proportion thereof subject to tax, including the discovery, listing, classification, and appraisal of properties (as defined in the Local Government Code of

1991 and the Manual on Real Property Appraisal and Assessment Operations)

Assessment (Business Permit / Licensing Context): Process of determining the nature and condition of a business as reference for the license and permits fees and proportionate value that is subject to tax

Bug: Software defect or flaw that prevents it from continuing to function or producing its intended result

Business rules: Standardized procedures, rules, protocols or guidelines governing assessment and taxation processes. Examples include the manner in which prop-erty values are calculated.

Change management: Overall strategy used in controlling and mitigating the effects brought about by a transition into computerization

Computerization: Management and execution of LGU work processes through the use and application of information technology

Customization: Process of adapting generic software to the peculiar needs of the LGU by modifying software functions and features

Data dictionary: Compilation of key terminologies that seek to establish a common understanding between the LGU and the software supplier, and within the LGU, of terms and concepts to be used in computerization

Data encoding: Process of transferring data from paper records to a computerized system

Data migration: Process of transferring data from one computerized system to another

Database: Structured body of information organized and stored in a system

Digital tax map: Electronic version of a tax map

Enterprise Architecture: The organizing logic for business processes and IT infrastructure reflecting the integration and standardization requirements of the firm’s operating model. Enterprise Architecture describes enterprise applications and systems with their relationships to enterprise business goals. (MIT Center for

Information Systems Research)

Linking Up LGU Operations: A Guide to Computerization of Tax-Related Functions in the Local Government Units 1

Functionality: Range of functions performed by a software

Framework: A basic conceptual structure used to solve or address complex issues. Design Approach. Strategy.

Geographic Information System: System capable of storing, integrating, analyzing, and managing information that is linked to location and other geo-graphical characteristics of a real property

Hacking: Illegal act of entering a computerized system to access information without permission

Implementation costs: Expenses incurred by the LGU during the execution phase of a computerization project

Internet Service Provider: Entity contracted by the LGU to provide access to the Internet and other related services

Local Area Network: Network of several computers connected to each other, the scope of which is normally limited to a small physical space such as a house or an office building

Local Government Unit: Provincial, city, and municipal government offices

Manual records: Paper and other similar forms in which data are manually stored by the LGU

Network administration: Processes involved in the overall management and maintenance of a computer network and related connectivity issues

On-going costs: Expenses incurred on a recurring basis by the LGU after the conclusion of the computerization project

Open source: A software development approach or model. Term used in referring to platforms or software whose source codes are publicly available and can be modified and copied freely by the user

Platform: In computing, a platform describes some sort of hardware architecture or software framework (including application frameworks), that allows software to run. Typical platforms include a computer's architecture, operating system, programming languages and related runtime libraries or graphical user interface. (http://en.wikipedia.org/wiki/Computing platform)

Pre-implementation costs: Expenses incurred by the LGU during the preparatory phase of a computerization project


Procurement: Refers to the acquisition of goods, consultation of services, and contracting for IT infrastructures by the procuring LGU. It also includes the lease of goods or information technology equipment

Software: Computer program created and designed to perform a specific set of functions. In this document, this term is used interchangeably with system .

Software License: A legal instrument governing the usage or redistribution of copyright protected software. All software not in the Public domain is copyright protected. A typical software license grants an end-user permission to use one or more copies of software in ways where such a use would otherwise constitute infringement of the software publisher's exclusive rights under copyright law. In effect, the software license acts as a promise from the software publisher to not sue the end-user for engaging in activities that would normally be considered exclusive rights belonging to the software publisher. (http://en.wikipedia.org/wiki/

Software_license)

Spatial data: Information stored in a Geographic Information System and related to location and other geographical data. Also known as geospatial data

Supplier: General term used to refer to an entity which, under a formal agreement, provides the IT products and services required by the LGU. In this document, this term is used interchangeably with contractor and vendor .

System administration: Processes involved in the overall management and maintenance of servers and computer systems

Taxation: Processes involved in the execution of tax collection functions of the LGU

Valuation: Processes used in determining the value of real property

Web/SMS enabled system: System that permits users to fully or partially carry out transactions and make use of software functions via the Internet or text messaging


1. INTRODUCTION

One of the technologies seen to improve valuation and taxation processes in the LGUs is the computerization of property valuation and taxation systems. Application software, specifically designed to manage real property data and related transactions for the assessment and treasury offices, have been available for over 12 years. The National Government, international aid agencies, and the private sector have all contributed to the advancement of this technology. Through years of research and development, many applications have evolved to support the requirements of the LGUs.

The demand for computerized tax-related systems is increasing. One of the problems accompanying this positive revolution is the increasing number of systems in the market and the wide disparity between these systems in terms of functionality, cost, sophistication, and supplier support. This complex environ-ment combined with a lack of preparedness by the LGUs for computerization has resulted in many system failures leading to a waste of money and effort.

This Guide has been developed as a ready reference for the LGUs as the BLGF acknowledges the difficulties being faced by the LGUs in tackling the com-plexities of preparing for computerization (or replacing ineffective systems) and the process of selecting and installing the right system for their requirements. The LGUs need to be in a position where they are able to articulate their requirements rather than software development companies telling them what to include in the terms of reference and system specifications. 2. SCOPE AND LIMITATIONS

As stated above, this Guide aims to prepare the LGUs for computerization, to define their requirements and to make them aware of the pitfalls and issues that need to be addressed. Specifically, it provides information on:

Prerequisites for computerization;

Determining requirements;

Assessing the suitability of systems in the market place;

Assessing the appropriateness of system suppliers; and

Determining implementation and on-going costs.

This Guide is also useful for LGUs with computerized systems considering an upgrade or expanding the present systems to suit the LGU needs.

However, this Guide does not cover the important issues of:

Procedures for the procurement of software, equipment and services;

Specifying technical requirements for hardware, software or network equipment; and

Methodologies for assessing tender responses. Documentation on these topics is available from the BLGF.


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Moreover, this Guide does not include computerization of the local gov-ernment accounting system. Any endeavor to computerize the accounting system shall need the approval of the Commission on Audit.

3. COMPUTERIZATION PROBLEMS IN THE LGUs

Many LGUs have acquired computerized systems in the past 10 to 15 years and in many cases the systems are operating successfully. In other cases, systems have failed before full implementation, have fallen into disuse, have been used for little more than backing-up manual records, or have been replaced by other computer systems.

In total, a lot of money has been wasted on these unsuccessful systems. Extensive survey has not been conducted yet to determine the reasons for these failures, but there are anecdotal evidences of the reasons for the failures. Some of these evidences are listed hereunder:

The essential pre-implementation processes to formulate the Information Systems Strategic Plan (ISSP), Terms of Reference (TOR), Training Needs Analysis (TNA), and other necessary documents were not developed.

The evaluation procedure for proponents and corresponding bids were not well laid out with the necessary required criteria and standards.

The contract between the client (LGU) and the winning contractor was not complete enough to provide total protection for the goals and interests of the client.

The system did not have adequate financial support due to poor LGU budg-eting procedures.

Resistance surfaced on the part of LGU officials who feared that the sys-tems would mean transparency in transactions which could lead to expo-sure of anomalies. Lack of support by these officials may result in system development hanging in the balance and never coming to fruition.

Unscrupulous suppliers and officials who did not hold the success of the system as a high priority.

The system failed to provide the level of functionalities required and ex-pected by the operation sections of the LGU.

There was inadequate ICT support in terms of trained personnel and equip-ment to sustain the system.

Treasurers and/or assessors have changed business rules (e.g. calculation of interests, penalties, fees, etc.) without considering the impact of the changes on existing computer systems.


Changes in policies and guidelines issued by the national government and other oversight agencies.

Key ICT personnel have resigned from the LGU, taking the system knowledge and expertise with them and leaving the system unsustainable.

The system losses support from high level personnel every time there was a change in LGU leadership.

Software suppliers did not provide follow-up support needed to sustain the system.

LGUs were unwilling to pay for the in-house or external ICT support required to maintain the system.

4. PREREQUISITES FOR COMPUTERIZATION

Computerized systems are composed of four (4) major components: exper-tise, data, hardware, and software technology. Each component needs to be con-sidered before a computerization project is undertaken. Some specific areas to be addressed are listed below.

The LGU endeavoring to computerize the tax-related LGU functions should have developed an Information Systems Strategic Plan (ISSP) that is aligned with the LGU Vision, Mission, Goals, and Objectives. Existing plans which have not been acted upon for years should be updated to reflect the up-dated LGU Strategic Plan and the current situation.

The plan should take a holistic approach and map out the long term vision of the LGU in automating its tax-related functions. Computing equipment/hardware and software can then be purchased or developed on incre-mental approach in the achievement of the plan. For instance, it may be decided to initially implement a business tax and treasury collection sys-tem. When these systems have become operational for some time, les-sons will be learned and confidence will be gained in relying on digital re-cords. A real property tax system could then be introduced and followed by a geographic information system (GIS). This incremental approach in planning and implementation will ensure that:

There will be compatibility between the individual systems which will minimize the need for re-development in the future;

Lower initial costs; Reduced maintenance and training costs; and Quick return on investment to fund further developments.

A template for an ISSP can be obtained from the National Computer Centre (NCC).


The manual records must be complete, correct, and in good physical condi-tion. The properties in the LGU should be tax-mapped and field checks of properties be conducted regularly to update, verify, and reconcile records before the information is encoded.

There should be an internal agreement between the Assessor’s and Treas-urer’s offices, as well as other concerned units within the LGU, to make pertinent manual records easily available within the duration of the com-puterization project. The agreement must grant the personnel implement-ing the computerization direct physical access to these records. 1

In preparing for system implementation, a data dictionary should be com-piled to ensure that there is a common reference and understanding of the terminology to be used in the tax-related operations between offices in the LGUs and software supplier.

Existing manual procedures should be documented to a level where they can be used as a base for defining the functionality required from a com-puterized system. An initial minimum Systems Requirements Specification (SRS) should be developed through a survey and focus group discussions. It should be conducted to put into writing the initial or basic requirements of the undertaking from which the systems design and development consid-erations can be based. There is a need for a series of discussions on the SRS involving office heads and assistants, end-users, and the LGU IT technical staff in order to fine-tune the SRS.

The ICT Infrastructure—in terms of the organizational structure, personnel, equipment, and communications network— should be in place or at least planned, approved, and budgeted before systems are installed. An admin-istrative order or similar policy directive should be issued by the local chief executives which would stipulate the duties and responsibilities of the Pro-ject Management Team (PMT).

Ideally, a centralized IT section should be established to serve all the ICT needs of the LGU. The human resource requirements will depend to a large extent on two factors: (1) whether a custom-built system is to be devel-oped in-house or an off-the-shelf system is to be purchased; and (2) if the ICT section is required to fully support the hardware, software, and net-work, or if these functions are to be outsourced or partially outsourced. In any case, it is imperative that an IT support team is available to provide the technical support to sustain the IT systems. At the minimum, the team should have expertise in System Administration, Database Administration, Network Administration, and Hardware Maintenance and Troubleshooting (See Attached Proposed Minimum ICT Organizational Structure in Annex E).

____________________________ 1 e-LGU RPTS Implementation Guide, National Computer Center, May 2003


All personnel who are expected to use the system should be a computer literate to a level where they feel comfortable to use computers, able to operate a keyboard, and understand how to use the basic system opera-tions. A higher level of knowledge and skills will be essential for personnel who will be required to support the system either at a technical or at an operational level.

A training needs analysis (TNA) should be conducted to assess the training and development needs of the proposed operational and support staff. Therefore, the form, extent, and cost of training can be approximated, and, in the end, a training plan can be developed. Timing of the delivery of train-ing is critical to its success and developing a schedule for the project train-ing should be highly considered. Training requirements for ICT personnel will be simplified if National Competency Standards for LGU ICT positions had been developed. Capacity building programs could then be focused on these standards.

There is a need for commitment at all levels in the LGU to computerize the systems and this commitment should be embodied in the ISSP. Otherwise, manual systems will tend to operate in parallel with the computer systems and the manual systems will continue to be viewed as the more authorita-tive source of data. Therefore, the computer systems will fall into disuse. A declaration of commitment to computerization can be reflected through a Letter of Intent from the Local Chief Executive (LCE) and a Council Resolu-tion “authorizing the LCE to sign on behalf of the LGU…” if the project will be outsourced to a contractor. This needs to be finalized before the com-mencement of the project. The resolution should be distinct and separate from the ISSP.

The office accommodation should create the appropriate environment for computerization in terms of space, electrical points and wiring, air condi-tioning, and furniture. The cost of establishing this environment needs to be factored into the system implementation costs. A Certificate of Avail-ability of office space from the LCE should be made to ensure on-going support and sustainability of the project implementation. In the ISSP and/or in a memorandum of the LCE, the environment for the information sys-tems should be identified and allocated for such use, and concerned offices should be given the notice or copy of the memorandum. Relocation of offices, if necessary, should be spelled out in the memorandum.

Adequate finances should be available for implementing the computer system and budget must be provided for the numerous continuing costs of operating the system on a day-to-day basis. A Certificate of Availability of Funds for the project should be made by the budget officer, treasurer or LCE.


There has to be a clear and agreed vision of the scope of the system to be purchased or developed, the functionality required by each of the stake-holders, and the services to be supplied by the system providers. There is no set formula for the scope of the system since provincial, municipal, and city processes and requirements can differ from each other.

The required functionality should be identified through the Minimum SRS formulation process mentioned above. Considerable time needs to be de-voted in determining user requirements, examining systems in other juris-dictions through on-site visits, and documenting requirements to ensure that there is a common understanding of what is required and necessary. Should the development be outsourced, there are legal processes and pro-curement procedures to be followed, usually quite tedious, lengthy and heavy with documentation but ensures quality, in narrowing down eligible and appropriate proponents for the systems development and implemen-tation. Reference should be made to the BLGF for more detailed informa-tion on this topic.

In cases where computerized systems already exist in an LGU, considera-tion needs to be given to ensure compatibility with the existing systems and the technology being used. For instance, there may be a need to inter-face from a new system to existing systems and it may not be in the best interest of one supplier to provide information to another to facilitate the required interfacing. Another factor to consider is that the introduction of a different technology may result in the need for the ICT group to be trained in the new technology and in maintaining two sets of technologies on an on-going basis.

In summary, the LGUs need to plan for computerization and be in a posi-tion where they can confidently tell suppliers what they require as regards func-tionality, training, technical support, etc., rather than suppliers telling the LGUs what they need. Above all, the LGUs should take advantage of the experience of other LGUs and learn from their success and failures.

5. COST CONSIDERATIONS

There are benefits to be derived from computerizing tax-related systems because they reduce the amount of laborious and repetitious tasks, and therefore save cost. But in achieving these benefits, there are front-end and continuing costs—with the supplier or proponent of the project often overemphasizing the benefits and downplaying the costs involved, particularly the on-going costs of computerization. These costs—however, to a large extent- determine the sustain-ability and ultimately the success of the systems.


Cost is always a critical issue for government institutions. In adopting appli-cable and suitable application systems to support operations, cost may vary de-pending on the level of readiness, requirements, and circumstances of an LGU. The level of readiness shall refer to the commitment of the organization (the LGU) to pursue and support the innovations. This also includes the available resources such as technical expertise, equipment and associated support services, and the financial liquidity of the organization to support the initial stages of the undertaking. The lower the readiness of the LGU, the more associated cost may be incurred. Requirement of the LGU is more definitive in terms of cost. Requirements shall refer to the platform of technology solution that the LGU desires to adopt. Platform shall include the architecture and framework that will specify hardware, software, and programming languages needed to address the LGU requirement. For government institutions, deciding on what platform to use should always fall on the context of “need” and not “want”, thus, the LGUs must determine what are applicable and suitable to their respective requirements. Specific considerations to support the basis for assessing an LGU’s requirements are the following:

a) Strategic direction or vision on the Enterprise Architecture of the LGU that will guide the development and achieve the clear and specific objective;

b) Available resources such as expertise, equipment, and associated services; c) Business environment requirement to support volume of records and

transaction requirement, etc.; d) Information systems requirement to support the business environment

(i.e. the Business Permits and Licensing Office (BPLO), RPT System, GIS, etc.); e) Technology requirement to support the administration policies, network

design, communications transmittal, data distribution & management, etc.; f) Physical orientation of offices or area concern; and g) Associated services or opportunities that may be derived in the future that

have not yet been planned but may be pursued once the facility is ready, i.e., Internet-based transactions, SMS or Content Management, etc.

A classic example is in the adoption of an appropriate and suitable Infor-mation Systems Architecture. It may be cost effective for an LGU to adopt “open source” platform if technical expertise and support is readily available on and off site; or LGUs may choose to adopt “propriety” platforms simply because in their circumstances, technical expertise, and associated services are wider and readily accessible. Cost associated with LGU circumstances are commonly lodged in the “cost of services”. Circumstance usually refers to the geographic location of the LGU, location of service providers, political environment, culture, or level of confidence


to a certain brand or provider, i.e., a progressive LGU located remotely that even adopting the cheapest product in the market may entail exponential cost due to travel, hazard, accommodation cost associated in the delivery and maintenance of product and services. A list of potential areas of costs is provided below for guidance and consid-eration. This checklist does not exhaust nor indicate all the items that are rele-vant to each computerization project. Some costs will be associated with work/goods supplied by software companies or contractors, while other costs will be internal to the LGUs. In contracting software or external services, it is advisable for the LGUs to exercise due diligence to avoid falling prey to suppliers that practice overpricing and/or claim substantial experience and expertise but, in reality, do not. It is essential to determine precisely the services/goods that will be pro-vided by outside suppliers in accordance with a tender response and to be aware of all the additional costs that will be incurred by the LGU. In doing so, it is not a good practice to assume that LGU personnel will be able to take on implementa-tion tasks, such as project management or data encoding, in addition to their nor-mal duties. Allowance needs to be made for the costs of doing this extra work and some positions may need to be back-filled with temporary staff. 5.1 PRE-IMPLEMENTATION COST REQUIREMENTS

Preparation of Official Documentation Information Systems Strategic Plan (ISSP) Letter of Intent (from the LCE) Certificate of Availability of space and allocation of budget Executive Order for the creation and formulation of a Project

Management Team (PMT) Council resolutions (to signify support for the project, to give authority

for the LCE to enter into contracts/agreements, etc.) Certificate as to the availability of regular plantilla personnel or

the intent to hire personnel

Terms of Reference/Request for Tender Research Site visits Focus Group Discussions (FGD) Surveys of staff (front-line and end users) Interviews with departments involved (heads and end-users)

Work and Financial Plan Detailed project cost estimates Detailed implementation schedule Detailed procurement schedule


Minimum SRS Functional requirements Data requirements Transactions Outputs Data migration/encoding plan

Tender process Preparation Evaluation Site visits Contract negotiation Awarding

5.2 IMPLEMENTATION COST REQUIREMENTS

Project Monitoring Project Management Team organization Project Management activities Transition/change management activities Implementation monitoring and evaluation Software quality assurance and testing plan System testing Parallel installation tests (parallel test run reconciliation)

Office accommodation Availability and commitment of office space Modifications New furniture Back-up power supply

Hardware Servers Workstations UPS devices Printers External storage and backup devices Scanners Plotters Digital cameras

Standard System Software Relational Database Management System (RDBMS) System development software tools Server operating system Workstation operating system

Customized Application Software Real Property Tax Administration System


Business Permits and Licensing System Tax Collection/Treasury System

Standard General Purpose Software Anti-Virus Software Licenses for required off-the-shelf software Office automation software (word processing, spreadsheet, etc.)

GIS Software Licenses Customized applications

Network Network and communication management software (not in the OS) Hardware Structured Cabling Data Switches

Data Encoding/Migration Digitization of the tax maps Upgrading spatial accuracy of the digital tax map Capture/purchase of spatial data layers (imagery, land use, soils, etc.)

Build-up of textual database and data cleansing procedures Cleanse/correct data Encode/migrate RPTA records Encode/migrate business permit records Encode/migrate treasury records Data verification and reconciliation

Development of a data back-up system

Training Basic computer literacy (keyboard operation, operating system, file

organization, etc.) Office automation software (word processing, spreadsheet, etc.) System administration Network administration Database administration System operations RPTA system Business Tax system Tax Collection/Treasury system GIS (administration, tax map maintenance, customized applications)

Note that the training schedule needs to be synchronized with the project im-plementation schedule.

Systems Documentation User Manual Systems Installation Manual


System Design Specification for customized features of off-the-shelf software

Systems Administration, Database Administration and Network Administration Manuals

Disaster Recovery Procedures Structured Cabling and Network Design Diagram

5.3 ON-GOING/CONTINUING COST REQUIREMENTS

ICT Support Staff Salaries

System maintenance support contract costs RPTS system Business Tax system Tax Collection/Treasury system GIS

Hardware maintenance costs

Replacement/upgrading of hardware

Furniture/equipment replacement

Telecommunications line rental

Internet Service Provider charges

Replacement of consumables

6. DESIRABLE SYSTEM CHARACTERISTICS

There are many LGU systems in the market that include modules for real property taxes, business taxes and payment collection. These systems use differ-ent levels of technologies and provide different functionalities. A list of desirable characteristics and features has been compiled from an examination of some of those systems, which provides an overall view of the system characteristics and features available in the market place. There are no desirable characteristics provided in this section for GIS soft-ware since all major systems provide toolkits to create and maintain the tax map, record multiple layers of datasets, and analyze and display data. However, there are large differences in the cost of the products and some are easier to use than others. These factors are important considerations in selecting a GIS. Refer to Appendix A, Part 6 (create, maintain, display, and query digital tax maps and other re-

lated maps) for more detailed information on the functional requirements for GIS products.


6.1 GENERAL

The desirable characteristics and features that a computer system must pos-sess are:

Can operate with a variety of open source software products including op-erating systems, reporting tools, development tools, and database prod-ucts;

Can be configured to operate on a database that is shared between LGUs ;

Can be deployed over the internet;

Can be linked to other relevant systems within the LGU and able to provide executive information for LGU officials;

The software provider can host the database and undertake the system processing tasks on their own premises;

Can process financial and non-financial transactions via the internet;

Had a established reputation; software has been operating successfully in several LGUs (it is not recommended that an LGU will develop its own sys-tem due to high cost, time for development, and level of risk in taking this course of action); and

Reporting capabilities complies with the existing rules and regulations re-quired for property assessment and taxation systems.


“Open source” is an approach to the design, development, and distribution of soft-ware, offering practical accessibility to a software's source code. (http://en.wikipedia.org/wiki/Open_source) “Open Source Software” is a computer software, for which the source code and cer-tain other rights normally reserved for copyright holders are provided under a soft-ware license that meets the Open Source Definition (http://www.opensource.org/docs/definition.php) or that is in the public domain. This permits users to use, change, and improve the software, and to redistribute it in modified or unmodified forms. It is very often developed in a public, collaborative manner. Open source software is the most prominent example of open source development and often compared to user-generated content. (http://en.wikipedia.org/wiki/Open_source_software)

(Not to be confused with Free Software, Freeware, etc.)

Relative to the purpose of this document, there are open source softwares developed specifically to cater to tax-related applications in the LGUs. These softwares may be accessed and used without charge, but their use may incur costs such as maintenance and associated technical support.

Determining whether to adopt open source approach/ open source software for tax-related applications is a crucial responsibility of the LGU which must be based on its unique needs and circumstances. LGU decision-makers must bear in mind that the use of open source softwares has its own advantages and disadvantages, and does not provide absolute guarantee on sustainability. Please visit www.opensource.org for more information.

What is OPEN SOURCE?

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Source_code

http://en.wikipedia.org/wiki/Open_source


http://en.wikipedia.org/wiki/Computer_software

http://en.wikipedia.org/wiki/Source_code

http://en.wikipedia.org/wiki/Copyright



http://en.wikipedia.org/wiki/License

http://en.wikipedia.org/wiki/Open_Source_Definition

http://www.opensource.org/docs/definition.php

http://www.opensource.org/docs/definition.php

http://en.wikipedia.org/wiki/Public_domain


http://en.wikipedia.org/wiki/User-generated_content

http://en.wikipedia.org/wiki/User-generated_content

http://en.wikipedia.org/wiki/Open_source_software

http://www.opensource.org/

6.2 DATABASE

The system is integrated so that a single taxpayers’ file can be maintained for real property tax and other treasury functions. The system may consist of a single database or individual databases for each functional module. The choice of database design should be based on system operations re-quirements and performance in terms of ease in data retrieval and proc-essing.

All system modules have the capability to link with each other and with the GIS via, AT LEAST, the PIN numbering system.

The database makes provision for all data items normally recorded on FAAS.

The database uses relational structures to reduce data inconsistencies, increase flexibility, and remove limitations.

Data items are not removed from the database when records are cancelled and they can be efficiently retrieved for display when required.

Data formats and reference tables conform to the standards listed in the Manual on Real Property Appraisal and Assessment Operations.

A taxpayer’s last name, first name, and middle initial are recorded in sepa-rate fields in the database.

The system can store and display digital images (e.g., photos of houses). 6.3 USER INTERFACE

Reports/displays are parameter-driven. For instance, reports can be gener-ated for any time period by input of a date range.

Data entry is facilitated by the use of dropdown lists and database refer-ence tables.

Reference tables can be updated by users.

Business rules can be changed by the System Administrator without the requirement for programmers to change the software code.

New reports can be designed and generated by operational staff rather than software programmers.

6.4 SYSTEM SECURITY

Access is restricted by a system of login codes and user passwords.

Password changes are enforced at regular intervals.

Access restrictions can be imposed by action type (update, edit and view), transaction type (RPT, tax collection, etc.) or database table.

Access restrictions can be linked to a particular client computer.

A log recording database action, user code, time, and date (audit trail) is automatically created.

Security can ensure editing of constant figures and sensitive data can be restricted to the System Administrator.


A high level of virus protection and protection from hacking is provided. Protection of data is a complex issue because of the on-going and ever changing nature of threats to computer systems. In the selection of a sys-tem package, due consideration should be given to on-going security up-dates as part of the selection criteria. In the case of systems operating over the internet, the threat is severe and the system architecture needs to be designed to prohibit unauthorized access or updates to the production database via the internet.

6.5 PERFORMANCE

The system provides a sub-second response time during peak anticipated load.

The system supports a nominated number of simultaneous users.

Applications software is capable of processing a stated number of RPUs (taking into account anticipated increases for the next 10 years) without significantly affecting response time.

Database has the capacity to store historical data for at least 10 years.

System has the ability to archive data to another form and retrieve the data in an acceptable timeframe.

7. SYSTEM SUPPORT

The implementation of a new system and the ability to sustain it will de-pend to a large degree on the level of support that is available. This support can be provided by the company supplying the system, the LGU’s own ICT group, an-other party, or a combination of the above. In any case, there needs to be a com-plete understanding of the level of support being offered, the ability of the suppli-ers to deliver the support, and the cost of the provision of such support. In this regard, the following factors need to be considered: 7.1 SERVICES PROVIDED

LGUs need to determine what services they need and must be very clear on what services they will require, either in their own capacity or in sub-contracting some services from suppliers. In any case, there are benefits in having a single supplier responsible for all of the services provided. When responsibilities are split between providers, support can be com-plicated. During system malfunctions, which could be an application software problem, a network problem or a system software problem, where there are different suppliers responsible for these components, the responsibility may be shifted from one to the other with a conse-quent delay in the resolution of the problem.


The services required may include:

Provision and installation of applications software; Customization of applications software; Supply and configuration of hardware and systems software; Cabling and configuration of network hardware and software; Training of personnel; System documentation; Data encoding/or conversion and migration services; Project implementation management; System testing; Parallel running of manual and automatic systems; Change management training and services; Hosting of database and data processing; and Software quality assurance and testing.

7.2 SOFTWARE LICENSE CONDITIONS

The software license agreement governs the parties’ acts and permission to use licensed software. The license grants the LGU the number of users al-lowed to use the system or workstations that the software can be installed. The ideal “software license condition” is that permission should be based on the number of workstations where the software can be installed. Some con-ditions that the LGU would want to ensure in the agreement are listed here-under:

As a matter of policy, the “software license” should always be named to the LGU and not to any employee or entity other than the LGU.

The license should not limit the movement of the equipment where the software is housed. There are cases that equipment may need to be transferred or moved due to a business requirement or simply due to security reasons. Equipment or PCs where the software is housed should have freedom in movement from one office to another, or from one area to another.

As part of the conditions, the LGU should ensure that there is adequate support for back-out and restoration, re-installation or re-deployment, or any troubleshooting issues such as OS back compatibility and missing controls. There may be cases that having the media copy of the software is not enough, technical support from the providers or donors of soft-ware may be required onsite.

In rare cases, “application software” bugs cause the corruption of an entire database, the LGUs should ensure that such cases will never happen by requiring a guarantee that should be expressly stated in the agreement that the software will not or cannot cause damage or corruption to the database or any portion of it.


LGU budget may limit the number of licenses acquired for the business requirement. In this case, if the workload expands or the original esti-mate was inadequate, additional license costs may be incurred. Consid-eration of a license allowing additional number of workstations for con-tingency purposes may be desirable as this will prevent potential prob-lems.

License restrictions on access to the application system software and the database can have a drastic impact on the operations of an LGU, particu-larly if there is a disagreement with the system supplier. LGUs should ensure they are provided with systems administrator’s rights to the ap-plication systems and to the database. Note that taking care of needs will ensure that these privileges cannot be abused by the system being modified at the local level to accommodate illicit transactions leading to graft and corruption.

Generally, on-going or after-sales support is normally provided or can be ne-gotiated as part of the license agreement. The level of support sought should be matched with the capability of the LGU ICT support group, in terms of knowledge and skills. In any case, there needs to be stated guarantees re-garding support response times for different levels of software, hardware, and network problems. In addition, guarantees need to be provided for the percentage of time the system will be available with sanctions for not meet-ing the agreed requirements.

7.3 CUSTOMIZATION OF SOFTWARE

In an ideal situation, there should be no customization of off-the-shelf soft-ware; however, some customization is usually required to meet local needs and changing business practices. Consideration should be given in selecting the software that will best fit the needs of the LGU, and where there are dis-parities, consideration should be given to modifying local practices to con-form to the standard rules of the system. Some systems are better able to cope with alternative practices because they include the code to satisfy dif-ferent alternatives in their standard software or they allow for choices in functionality by selecting options via database tables. There are distinct ad-vantages in terms of cost, software problems, and on-going maintenance by minimizing customization of off-the-shelf software.

Where software has been customized, there needs to be an assurance from

the supplier that the customized functions will be fully supported when up-grades or new versions of the software are released. There should also be provisions in the contract with the supplier on the allowable timeframe for further customization requests to be made and the costs of that customiza-tion.


7.4 TECHNICAL SUPPORT

It is not rare for bugs to be present in the software—particularly when the software is relatively new, has not gone through extensive testing, or has been customized—which can often result in undesirable results during the initial stage of system operation. These errors are normally the responsibility of the supplier and there needs to be an agreement stipulating the response time and protocol for rectifying the problems. A strategy sometimes used is to make a provision for 6-month in-house project management consultancy to manage these issues and address fine-tuning issues.

From time to time, upgrades to the system software will be required to re-spond to new administrative rules or reporting requirements imposed by the National Government, or changes that have been requested at the local level. Some software suppliers provide long-term update services to cover these changes. Consideration needs to be given on how these enhancements will be implemented. If the software supplier or contractor will provide the upgrades, there should be an agreement regarding costs (if any) and timing of the requests for enhancements. Different arrangements may apply within and subsequent to the warranty period provided by the supplier. Alterna-tively, the ICT section within the LGU may have the capability to undertake the work, in which case the LGU must have obtained the right to change the software code.

The response that can be provided by software suppliers will be affected by the size, location, and expertise of their support staff and the modes of sup-port (e.g. telephone, internet, on-site, etc.) they provide. These factors, par-ticularly in the LGUs with low level of in-house support, are critical and need to be a major consideration in selecting a system.

Technical support, particularly in the early stages of system operation, is of-ten required more for guidance or advice, rather than for addressing soft-ware problems. In these cases, provision for some form of “on-line” help that is available in all normal LGU operating times should be negotiated. Alterna-tively, as mentioned above, provision for a 6-month on-site project manage-ment consultancy, where technical personnel from the supplier will be made available in the project site, could be stipulated in the contract.

7.5 TRAINING

Training needs to be provided to personnel operating the systems and to peo-ple responsible for ensuring the on-going availability of the system. Depend-ing on the level of information technology within the LGU, training may have to begin by developing some keyboard skills and training personnel in the use of basic operations and office automation software. It must be recognized that one solution will not suite all groups and the training needs to be tailored for the group and undertaken at a time when the skills learned can be imme-diately applied and practiced, or the training will be less effective.


The second level of training for operational staff is in use of the system. Op-erators need to become familiar with the user interface and system naviga-tion tools, and to use the system to process transactions. This training can be conducted in the testing and parallel running stages of the implementation although a preliminary systems briefing or familiarization on the system can be helpful to the end-users. If the LGU is going to take on the role of the day-to-day administration of the system, training will be required in the areas of system administration and network administration. Once again, the training needs to be customized to meet the needs of the recipients. A personnel trained in system, network, and database administration is essential to ensure minimal interruption to day-to-day operations, confidence in the system, and the ultimate sustainability of the system. The main considerations in the training of ICT support staff is to ensure:

A sufficient number of people are trained in each aspect of the support functions (at least two in each area) to cover for absences, promotions and resignations.

The persons selected for training have the correct background and/or capability to take on the role they are being trained for.

Actions are taken, be it in the way of remuneration, conditions or bond-ing through an indenture, to encourage them to stay at the LGU. Perma-nent staff rather than temporary or contract staff should be selected for training, particularly in the technical ICT areas.

7.6 SYSTEM DOCUMENTATION

High-quality documentation covering all aspects of the operation and support of the system is essential for reinforcing training of operators and support staff and inducting new staff. The documentation can be in the form of hand-books, videos, on-line help facilities or a combination of these. At the mini-mum, documentation should be provided on the administration of the sys-tem, on the communications network, and on how to perform the day to day transactions. It is important to ensure that the documentation provided with the system is detailed—contains examples and screen images - and is updated when there are changes to, or new releases, of the system. The following documentation should be made available by the system sup-plier: Operations Manual Systems Installation Manual System Design Specification for customized functions of an off-the-shelf

system


Systems Administration, Database Administration and Security Manual Disaster Recovery Procedures Cabling and Network Design Diagram Documentation of source code and system configuration Information on database structures

7.7 DATABASE AND SOURCE CODE OWNERSHIP

Database ownership resides in the LGU. This should be expressly stated in all related documentations or contracts. The LGU, through a competent IT staff, shall maintain the authority to access the database, having full administrator access. Likewise, the LGU should carry the full responsibil-ity of ensuring proper protection and maintenance of the database, and conduct of regular back-up.

In case the application software is owned by either government institu-

tions, donor agencies (project) or private firms, the LGUs should have the option to own the application software’s source code and the right to modify it depending on the agreement. LGUs must also understand that owning the source code will not provide absolute guarantee of sustain-ability and security nor reduce cost or dependency to providers. The deci-sion on this matter is rather dependent on the resources available from the LGU and the prevailing circumstances. Modifying the source code requires a certain degree of expertise and understanding of the software engineering processes and approaches to make the necessary modifica-tion or customization to the application software possible. In most cases when customizations are done without such expertise, more problems are created than accomplishing the goal. Adequate documentations of the changes made to the source code should also be prepared for refer-ence.

8. DATA MIGRATION AND ENCODING CONSIDERATIONS

Administration and taxation systems consist of textual data (property, ownership, and financial information) and graphical records (tax map). The data may have already been converted to digital form or they may still be in paper form. The data in digital form should be migrated to the new database, while the data still on paper form must be encoded or data-captured first before the data can be loaded to the database. Data encoding and data migration exercises must consider the current for-mat of the data and the one required by the new system. For instance, names of taxpayers may be recorded in a single string in the existing recording system, whereas in the new system it may require a taxpayer’s first name, middle initial and last name as individual data items in the database.


Similarly, codes for recording building types may not follow BLGF data standards, yet may require interpretation of the data or upgrading of tax maps before they can be used in the GIS. Conducting research will reveal these issues, while neces-sary documentation will create strategies to capture textual and spatial data alike. This process is more critical if contractors or anyone from an outside com-pany will encode the data. The following factors need to be considered in developing a data migration or encoding strategy: 8.1 DATA MIGRATION

In situations where the textual data is already in digital form, it may be possible to extract them from the existing database, reformat the data, and load them to the new database. A software must be developed to complete the migration from existing records to the new database. Typically, however, some of the data may not be automatically migrated, and error reports will be produced if the software cannot interpret the data. In cases where large quantities of data are involved, migration can be a practical and quick way to capture data but its success de-pends largely on the quality of the source data, i.e., the integrity of the data is low because they have not been adequately maintained in the past (which may be the reason why a new system is being implemented). If paper-based records were preferred for day-to-day operations than the digital data, it may not be sensible to adopt the digital data for the new system. However, it may be a sound strat-egy to migrate the digital data to the new database with a view of undertaking a complete verification of the data, which decision could save a lot of time and re-sources in encoding of records. To develop a viable migration strategy, it requires a thorough assessment of the data that will be migrated into the new system. Transferring spatial data from one GIS product to another may be a simple exer-cise since major software products can facilitate data conversion. If the migration is from a CAD system, it may be difficult and labor intensive. Clients must seek advice to determine the resources required to migrate the data. While at the migration phase, data maintenance procedures must be developed for both textual and spatial data. Any changes to the paper and/or digital records during the migration phase will need to be stored and applied, especially when the new system is operational.

8.2 DATA ENCODING

If data encoding from the paper records remains the only option, the best ap-proach to take needs to be determined. The following factors need to be consid-ered:


The ideal source documents for encoding RPT data usually come from the Field Appraisal and Assessment Sheet (FAAS). However, the FAAS may only represent the data at the time of the last general revision instead of the cur-rent data. It may also be necessary to use the tax declaration forms to cap-ture the most up-to-date information. The best source document for encod-ing the details of business enterprises is the application form which usually varies between LGUs.

In various cases, it can be assumed that RPTA or BPLO records can be en-coded and verified at a rate of about 50 RPUs per day per encoder for both the assessment and payment data.

In general, there are limited benefits in encoding historical data but it is es-sential to capture records from previous years where there are outstanding taxes. For this purpose, information will be required from the records of the Office of the Treasurer. If separate recording systems are being maintained by the offices of the assessor and the treasurer, it may be necessary to recon-cile these records. In all cases, it is essential to determine and document a detailed encoding strategy.

There may be inconsistencies in the way the data are stored on individual paper records. Research should be conducted to reveal these inconsistencies so that rules for encoding can be established before it begins. Otherwise, wrong decisions may be made by individual encoders which may compromise data integrity or may lead to data problems in the new system. These should be a part of the data encoding strategy documentation.

Creating a digital tax map from the paper tax maps is complicated and time-consuming. Specialized equipment will be required to perform the task and LGU personnel should be trained in the operation of the selected GIS prod-uct.

As to the textual data, developing a data capture strategy is needed. The strategy will take into account the accuracy of the existing tax maps, the re-quired accuracy of the digital map, the relevance of the tax maps, and the accuracy of the spatial layers to be recorded on the spatial database.

Encoding may be done by an in-house staff, by an outsourced to a specialist group or undertaken by contract staff supervised by the LGU. The first op-tion has the advantage of using people with expertise on the data, which can lead to higher data accuracy because of the commitment and knowledge of the personnel. However, this option may not be viable because of either lack of in-house resources or unworkable time-frame for encoding the data. On the other hand, using a specialist group will speed up the data encoding proc-ess but often compromise the quality of the data. If this approach is taken, rigorous quality control measures need to be considered.

Similarly, quality control measures need to be put in place if encoding will be outsourced.


If encoding of the data will be outsourced to a specialist group, records should not be taken off-site. Instead, a work area should be provided by the LGU. The concerned LGU officials should be fully responsible to ensure the correctness encoded data.

The time frame for completing the encoding may be determined by the stage of the system implementation or by the general revision or billing cycles. In any case, there are benefits in minimizing the timeframe to complete data encoding if upon encoding of a given record, updating procedures have al-ready been established. This means that during the encoding stage both pa-per-based and digital records need to be maintained on parallel approach. An option is to apply updates to the manual records and store these updates for digital records until the new system is operational. This methodology may prove to be more difficult to handle as the time for the encoding phase in-creases proportionately to the increase in the number of stored transactions.

9. CHANGE MANAGEMENT2

Embarking on computerization brings about deep-seated change at all lev-els of the organization. Not only does this change affect the manner in which work is completed but it also significantly impacts on human aspects such as per-ceptions, attitudes, productivity, acceptance, efficiency, and job satisfaction. For computerization to be ultimately successful and accepted in the organization, it is necessary for the LGU to exert a conscious effort to execute sound and effective change management plans. Change management, in the context of this document, refers to an overall strategy to sustain the positive effects of computerization. It is meant to help managers, supervisors and employees achieve smooth transition into a new work process. For change management to be effective, the LGU should devise a strat-egy that at the minimum encompasses four (4) basic areas, namely, (i) Communi-cations, (ii) Training, (iii) Workforce Planning, and (iv) Evaluation.

9.1 COMMUNICATIONS

A sound change management strategy aims to: Evaluate the effectiveness of existing and proposed work processes; Communicate the capabilities of the computerized system; Involve stakeholders in a dialogue to facilitate exchange of ideas; Keep employees abreast with the progress of the implementation; and Promote acceptance of new work methods.

____________________________ 2 e-LGU RPTS Implementation Guide, National Computer Center, May 2003


9.2 TRAINING

A well-targeted and needs-based training program is the key to a successful tran-sition to a computerized system. Training will help employees, who are the end-users of the system, acquire skills and knowledge to a level where they feel com-fortable with new work processes in the office. A good training program fosters acceptance, appreciation, and confidence in these new work processes.

9.3 WORKFORCE PLANNING

Adoption of a computerized system is likely to affect the number of positions re-quired, and, more significantly, the nature of work and skills previously in demand under the manual system. The LGU must evaluate its human resources against the computerized system to plan and modify accordingly its workforce structure. 9.4 EVALUATION

The LGU must devise evaluation tools to measure the impact of its change man-agement strategy. These evaluation tools must be kept in synchronize with the changing needs and realities in the office over the duration of the computeriza-tion project to provide the LGU with quality information on the level of success or failure, as the case may be, of its change management initiatives. Evaluation must continue at least a year after the completion of the computerization project.


Annex A

FUNCTIONAL REQUIREMENTS FOR PROPERTY VALUATION

AND TAXATION SYSTEMS

This checklist of functional requirements has been devised

to help the LGUs prepare requests for tender for computerization

of property assessment and taxation systems, and review the

features of systems available in the market place.


GU

IDE

A

nn

ex

A

GU

IDE

G

UID

E

GU

IDE

G

UID

E

GU

IDE

G

UID

E

Introduction

This document provides a list of functional requirements for LGU property valuation and taxation systems. The requirements are presented in six (6) differ-ent tables reflecting the following LGU processes:

1. Maintenance of Real Property Records; 2. Determination of General Revision Schedules; 3. Computation of Real Property Tax and Generation of Notices; 4. Computation of Business Tax and Production of Mayor’s Permits; 5. Collection of Taxes and Miscellaneous Payments; and 6. Maintenance of the Digital Tax Map. The relationships between the LGU processes are depicted in the diagram below.

LGU Property Valuation & Taxation Activities Note that there is no set correlation between the processes shown above and RPTA and Business Tax Administration systems available in the market place. Some systems include several of the above processes and others are limited to a single process only. The functional requirements listed for each process include desirable fea-tures, processing requirements, mandatory reports and displays commonly re-quired by LGUs. It is not a comprehensive list nor it is expected that individual LGUs will want all of the features listed. Furthermore, it should not be interpreted as a standard list of requirements required by any or all off-the-shelf systems. Note that for delete functions, data must not be permanently deleted from the database. Rather, it should only be “removed” from the active database, but should remain available in case the LGU wants to retrieve such data at a later time.


PROPERTY

SALES & COSTS

RECORDING

TAX MAP BASED

THEMATIC

MAPPINGPROPERTY

VALUATION

REALPROPERTY

RECORDS

ADMINISTRATION

TREASURY

COLLECTION

LGU PROPERTY VALUATION & TAXATION ACTIVITIES

BUSINESS

TAX

ADMINISTRATION

Property

Values

RP Tax Notice

Business

Tax Bill

SMVMaps

Maps

Maps

Maps

Maps


MAINTENANCE OF REAL PROPERTY RECORDS

Features

Comply with the BLGF numbering systems for PINs, ARPNs and TDNs

Record all data items on FAAS

Allow for parcels in more than one baranggay

Allow for RPUs with more than one land use

Allow for multiple claims for a parcel Allow for renumbering of parcels

Allow for unlimited number of floors in buildings

Allow for recording unlimited buildings

Allow for recording more than one set of claimants

Allow for recording unlimited machineries

Identify taxable/exempt lands

Identify taxable/exempt buildings

Identify taxable/exempt machineries

Identify idle land

Property records can be accessed by PIN, ARPN,TDN or owner’s name

Reference tables can be updated by users

Transactions

Create/edit/delete a RPU record for land

Create/edit/delete a RPU record for a building and other improvements

Create/edit/delete a RPU record for machinery

Process changes or transfers of ownership

Process subdivision / segregation of land

Process consolidations of land

Process assessment / re-assessment Process reclassifications

Process change in property location

Annotate auctions of properties

Reports/Displays – Required by local and national agencies for transfers, loans, etc.

Declaration of Real Property Value

Certificate of No Property

Certificate of Land Improvement Certificate of Land Holding

Certificate of Land with No Improvement Certificate of Location of Property

Certificate listing multiple properties in an ownership

List of idle lands

Display and print reference tables

1


MAINTENANCE OF REAL PROPERTY RECORDS (Continued…)

Reports/Statistics – Required by Assessors

Activity Report showing all transactions by RPU type, land classification, and actual use for geographic areas (e.g. dis-

trict, barangay, subdivision, street)

Statistical report showing the number of RPUs by type, land classification, and actual use (e.g. district, barangay, subdivision, street)

Summary Report showing total market values by RPU type, land classification, land actual use (e.g. district, barangay, subdivision, street)

Summary Report showing total assessed values by RPU type, land classification, and actual use (e.g. district, baran-gay, subdivision, street)

Summary report showing total land area by RPU type, land classification, and actual use by geographic area (e.g. dis-trict, barangay, subdivision, street)

List of top landowners based on highest land area, market value, etc.

List of discoveries by RPU type

List of cancelled assessments

List of demolitions of structures

List of transfers of properties

List of subdivisions of parcels

List of consolidations of parcels

List of properties with multiple claimants

List of transacted properties

Documents required by BLGF – Refer to the Manual of Real Property Ap-praisal and As-sessment Opera-tions (January 2006)

Real Property FAAS – Land and other Improvements

Real Property FAAS – Building and Other Structures

Real Property FAAS – Machinery

Tax Declaration of Real Property

Tax Map Control Roll

Assessment Roll – Taxable Properties

Assessment Roll – Exempt Properties

Ownership Record Card

Record of Assessment

Sworn Statement of the True Current and Fair Market Value or Real Properties (Taxable or Exempt)


DETERMINATION OF GENERAL REVISION SCHEDULES

Features

Record details of real property sales

Record details of buildings and other improvements

Link to digital property records to extract property details

Record more than one record (sale statement) from a different source for a sale

Determine Schedule of Unit Base Market Values for different subclasses of Residential, Commercial and Industrial Lands

Determine Base Unit Construction Cost for different kinds and structural types of buildings

Determine depreciation rates for buildings

Determine Base Unit Market Values for each classes of Agricultural Lands

Perform General Revision of Assessments

Recognize effectivity of General Revision

Transac-tions

Create/edit/delete residential sales records

Create/edit/delete commercial/industrial sales records

Create/edit/delete agricultural sales records

Create/edit/delete lease records

Create/edit property information

Create/edit building information

Create/edit/delete opinions

Create/edit/delete details of land adjustments

Create/edit/delete details of extras/additional items for buildings

Create/edit/delete details of machinery

Create/edit/delete details of crops

Create/edit/delete details of utility services

Create/edit/delete land and property valuations

Record and edit costs of building items

Amend a sale statement

2


DETERMINATION OF GENERAL REVISION SCHEDULES (Continued...)

Documents re-quired by the BLGF – Refer to Local Assessment Regulations No. 1-92 and the Man-ual of Real Prop-erty Appraisal and Assessment Operations (January 2006)

GR Form No. 1 - Schedule of Base Unit Market Values for Residential, Commercial and Industrial Lands

GR Form No. 2 - Sub-classification Criteria for Urban Lands

GR Form No. 3 - Statement of Sales Values of Residential, Commercial, and Industrial Lands

GR Form No. 4 - Tabulations of sales values for each class of Residential, Commercial, and Industrial lands taken from GR Form No. 3

GR Form No. 5 – Computation of the Base Unit Market Value - Urban Lands

GR Form No. 6 – Schedule of Base Unit Market Values for Agricultural Lands

GR Form No. 7 – Statement of Sales Values of Agricultural lands

GR Form No. 8 – Tabulations of Sales Values for each Class of Agricultural Land taken from GR Form No. 7

GR Form No. 9 – Computation for the Unit Base Market Value (Agricultural Lands) GR Form No. 10 – Schedule of Base Unit Construction Cost

for Buildings

GR Form No. 11 – Schedule of Depreciation

GR Form No. 12 – Extra Items as Component Parts of Buildings

Analysis Tools

Display sales by geographic area

Display sales by sales details (price range, land use, etc.)

Display sales by building details (type of building, etc.)

Display sales details for a property

Display sales details for a person/company as buyer/seller

Compare sales price to market value for street

Compare sales price to market value for subdivision

Compare sales price to market value for barangay

Compare sales price to market value for District

Compare sales price to market value for City


COMPUTATION OF REAL PROPERTY TAX AND GENERATION OF NOTICES

Features

Compute RPT and SEF based on a general revision taking

into account actual use, market value, assessment level, and taxability.

Compute RPT and SEF following reassessment of an RPU

Compute RPT and SEF on demand (on-line billing)

Compute RPT and SEF for an individual RPU

Compute RPT and SEF for all RPUs owned by a taxpayer

Compute RPT based on multiple land uses

Compute discounts and penalties/interests

Identify records with delinquencies

Auto-compute delinquent tax

Compute special levies where they apply

Process compromise agreements

Recognize properties exempt from tax

Recognize idle land

Recognize properties with multiple claimants

Recognize properties subject to 10-year back taxes

Recognize properties with pending appeals with LBAA, CBAA

Analysis Tools – for estimating revenue from RPT

Estimate revenue of changing MV where tax is payable

Estimate revenue of varying exemption rules

Estimate revenue of various phased / gradual implementa-tion strategies

Estimate revenue of changes to assessment levels

Estimate revenue of changes to tax rates

Estimate revenue of real properties with pending court litigation (CARP, etc.)

3


COMPUTATION OF BUSINESS TAX AND PRODUCTION OF MAYOR’S PERMITS

Features

Link business to a PIN

Access to business details by BIN, PIN, owner/business name

Process businesses with multiple lines of business

Compute business taxes and fees for individual businesses

Compute business taxes and fees for a taxpayer

Compute surcharges

Compute interest

Itemize tax, surcharge and interest (for each year)

Reference tables can be updated by users

Transactions

Create a record for a new business

Renew a permit for a business

Retire business

Revoke / re-issue permit

Add a line of business

Retire a line of business

Reassess Business Tax and Permit Fee

Record inspection details

Record complaint details

Record violation details

Update gross receipts amount

Change trade name

Change location of business

Transfer a business to a new owner

Maintain reference tables

Reports/Outputs

Mayor’s permit List of Businesses not Renewed

Business Tax Assessment List of Outstanding Inspections

Business Listing List of Taxpayers

Business Detail List of top business tax payers

Business Inspection Report Business Line Listing

Business Complaint Report Business Line Tax & Fee Listing

Business Violation report Business Line Tax Table Listing

List of New Businesses Taxes and Fees Listing (Comparative gross receipts by same type of business)

List of Retired Businesses

Reports required by the BLGF - Refer to Local Treasury Opera-tion Manual (Oct 1, 2007)

Report of Collections on Business Tax, Fees and Charges, and Economic Enterprises

4


COLLECTION OF TAXES AND MISCELLANEOUS PAYMENTS

Features

Tax collection function approved by COA

Issue electronic OR for RPT

Issue electronic OR for business taxes

Issue electronic OR for regulatory fees and LGU charges

Compute interest penalty on real property taxes

Compute surcharges on business taxes

Compute interest on business taxes

Accept various modes of payments, i.e., cash, checks, money orders or a combination

Accept full payments

Accept partial payments

Accept advanced payments

Record payments that are made “under protest”

Process refunds

Apply tax credits

Basis of computations are based on laws, prescriptive stan-dards and ordinance of the LGUs

Make adjustments for tax amnesties

Interface to other LGU financial systems

Interface to e-NGAS

Reports required by the LGUs

Notice of Final Demand

List of Properties for Auction Sale

Notice of Summons

Notice of Business Tax Delinquency

Summary of barangay shares in RPT

Tax Clearance Certificate

Report tax potential and tax collected by property classifica-tion (residential, commercial, etc.)

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COLLECTION OF TAXES AND MISCELLANEOUS PAYMENTS (Continued…)

Documents re-quired by the BLGF – Refer to Local Treasury Opera-tion Manual (October 1, 2007)

Report of Collections and Deposits (RCD)

Summary of Collections and Remittances (SCR)

RPT Register (RPTAR)

Cashbook (Forms 5, 6 and 7)

Statement of Receipts and Expenditures (SRE)

Cash Receipts and Deposits Register

Real Property Tax Bill

Certified list of all RPT Delinquencies

Notice of Realty Tax Delinquency

Warrant of Levy

Notice of Levy

Notice of Publication and Auction Sale

Proof of Service of “Notice of Publication and Auction Sale” Certificate of Sale of Delinquent Property

Certificate of Redemption

Notice of Redemption

Final Deed of Sale

Compromise Agreement

Certificate of Tax Credit

Notice of Right to Redeem

Analysis Tools - Refer to “Framework for the Conduct of a Prop-erty Tax Compli-ance and Distribu-tional Impact Study for a Local Govern-ment Unit.” NTCR 2008

Report tax potential and tax collected by type of RPU

(land, building, machinery) Report tax potential and tax collected by ranges of market

values Report tax potential and tax collected by barangay/

municipality List of delinquent tax payers by property class/sub class List of delinquent tax payers by barangay List of delinquent tax payers by tax amount


MAINTENANCE OF THE DIGITAL TAX MAPS

Features

Map Navigation Pan and zoom the map of parcels/study area Zoom to the full study area of the map (e.g. the whole city/municipality,

barangay, or tax map area) Pan and zoom to selected map features (e.g. pan/zoom to a selected parcel)

Find x, y (latitude and longitude) location on a map Display multiple themes or layers (e.g. parcel layer, point location layer,

zoning layer, etc.)

Zoom to the extent of the layer Zoom to specific map scale Create and access hyperlinks to external application, macro, file

(e.g. create a hyperlink to property photo of subject parcel or building)

Queries Identify features in the map (e.g. select a parcel or group of parcels on the digital tax

map & display details of the parcel/s from textual database/s) Interactively measure distances and areas Find features in the map Show related data with field properties Select data by location (e.g. select a parcel record from the textual database/s

and display a graphic of the parcel and abutting parcels) Select data by attribute (e.g. provide facilities for users to select data items from tex-

tual database/s for display on thematic maps or map layers) Interactively select/unselect features Access layer properties (e.g. turn off/on layer, select colors, etc.)

Tables – Display and Editing Link to the textual database/s maintaining details of property sales,

property details & values, business enterprise details, and RPT & busi-ness tax details Flash/zoom/pan and identify individual features in a map based on a

record in the attribute tables or database Interactively highlight selected records/features Zoom to and unselect highlighted records/features Interactively add and remove records from a selection Copy selected records and for pasting into other applications or tables Turn fields on and off and change field order and size modify a table’s appearance by changing cell and field sizes Create table joins and relates– linking two tables via a common field Create dynamic joins between different databases Use field properties of joined tables Create and use many-to-one and one-to-many relationships See properties of joins and relates from table properties Sort table by multiple fields/attributes Display tabular x,y point data from a file or table on a map Modify each selected row individually or as a group (attributes dialog) Copy attributes to one or more rows simultaneously

6


MAINTENANCE OF THE DIGITAL TAX MAPS (Continued…)

Features

Tables – Display and Editing Calculate attribute values using scripts (field calculator) Calculate attribute values from a feature's geometric properties Enter attributes for new feature as they are created

Graphs Plot data from a variety of datasets in a single graph Create 2d and 3d graphs Graph types—horizontal and vertical bar, line and area; histogram bar;

scatter plot; box plot; pie

General Map Display Visualize map page or specific set of data (e.g. specific tax map tile) Perform on the fly projection of all data (including Philippine Transverse

Mercator Projection) Set map scale to display data Create custom relative scales to display data Clip the map display to a feature or graphic Create graticules, measured grids, and reference grids

Vector Data Display Control the selection color for each dataset Create and select symbology to use in displaying the dataset Control which features to display using a SQL Query

Thematic Vector Data Classification—Map Display Single symbol Unique value -- display thematic map based on values from the field/s of tables/databases) Graduated colors or symbols Proportional symbols Chart mapping Including pie and bar chart

Symbology: Create/define symbols for fills, lines, outlines, and points

Page Layout and Printing – Map Elements Title Text Neatlines Legend North Arrows Scale Bar Scale text Pictures Measured reference grids Graticules Tables (data from databases) OLE Objects



Features

Print layout and Printing – Export Formats Joint Photographic Experts Group (JPEG) Portable Network Graphics (PNG) Graphic Interchange Format (GIF) Adobe Illustrator (AI) Postscript color separates

Print with the following Print Drivers Windows drivers Postscript drivers

Print layout and Printing – Map Text Create dynamic on the fly labels (e.g. labels of parcels such as PIN or Lot Nos.)

Automatic conflict detection and label placement Many predefined label styles Labels can be rotated Multiple dynamic labeling schemes built for each map layer Control which features in a layer display labels Advanced text formatting tags for dynamic label symbology

Annotation Create text annotation data from labels Use interactive label tools (callout, label, spline, and paragraph text) Interactively move, rotate, and scale annotation Add horizontal or angled annotation Add annotation with a leader line Create annotation that follows a curved line or the shape of an existing

feature Dynamically pull annotation values from layers in the map Interactively manage annotation that could not be placed during initial

annotation creation Edit each word in an annotation string independently Interactively stack and unstack annotation Flip annotation strings Interactively modify the curvature and orientation of a line annotation Edit the symbology of a single annotation feature or a group of annota-

tion features simultaneously Store annotation in a geo-database or map document Create and edit feature linked annotation in a geo-database

Map Templates Create, edit and use map templates to standardize maps Create, edit, and use map files to store created maps from templates

Map Feature Creation and Editing Digitize Map Feature using a Digitizer Tablet Digitize map features from a raster map (e.g. aerial photo or satellite image)

used as a background on display window (called heads-up digitizing)



Features

Map Feature Creation and Editing Support the following raster formats:

ARC Digitized Raster Graphics (ADRG) Band Interleaved by Line (ESRI BIL) Band Interleaved by Pixel (ESRI BIP) Band Sequential (ESRI BSQ) Controlled Image Base (CIB) Digital Geographic Information Exchange Standard (DIGEST) ARC Standard Raster Product (ASRP) Universal Transverse Mercator (UTM) Universal Polar Stereographic (UPS) Universal Standard Raster Product (USRP) Digital Terrain Elevation Data (DTED) Levels 0, 1, and 2 ENVI/ER Mapper's ECW ERDAS 7.5 GIS 7.5 LAN and RAW Hierarchical Data Format (HDF) - 4 Intergraph Raster Files: CIT™ Binary Data COT™ Grayscale Data Joint File Interchange Format (JFIF) Multi-resolution Seamless Image Database (MrSID Generations 2 & 3) National Imagery Transmission Format (NITF) United States Geological Survey (USGS) ASCII Digital Elevation Model (DEM) 2 PCRaster (MAP)2 JPEG 2000 Oracle Spatial Geo-Raster Store multiple representations of GIS features in a Geo-database for Use

in a variety of map products Create rules that dynamically manipulate the geometry and symbology

of a feature (representation rules) Share representation rules through style files Change the shape or symbology for a single feature without changing

the GIS data it represents Define feature visibility and transparency for each feature Mask individual features or parts of features without masking all fea-

tures in a layer Dynamically place point symbols along lines or polygons Dynamically modify the geometry that is displayed for a feature

(geometric effects) Dynamically add/delete/move/rotate/resize features or parts of features Transform digitized data from tablet or screen display coordinates to

real world coordinates (rubber sheeting transformations, affine transforma-

tions, similarity transformations, edge matching transformations) Project digitized data to appropriately selected project (including Philippine

Transverse Mercator Projection) Create/digitize polygon features (e.g. parcel data) from survey coordi-

nates/GPS Data (X, Y, or latitude and longitude or distance azimuth, or distance

bearing)



Features

Map Feature Creation and Editing… cont. Create/digitize point features (e.g. man holes, electric posts) from survey

coordinates/GPS Data (X, Y, or latitude and longitude). Move, rotate, delete, copy, and paste features Create new features by merging features in the same or another layer

(union)

Direct Read of Vector, Raster and other Data Personal Geodatabase for Microsoft® Access™ File Geodatabase Personal, Workgroup, and enterprise Geo-databases—Oracle, Microsoft

SQL, MySQL, IBM DB2, PostGre SQL Shapefiles ArcInfo coverage PC ARC/INFO® coverage Smart Data Compression (SDC) Data Vector Product Format (VPF) Data Geography Network Feature Service Open Geospatial Consortium, Inc. (OGC), Web Coverage Service (WCS) Open Geospatial Consortium, Inc. (OGC), Web Map Service (WMS) OGC GML Simple Features Access4 OGC GML Simple Features Import/Export4 OGC GML Web Feature Service Access for Simple Features Network Common Data Form (netCDF) KML-Google Map data format Geo-database terrains Microsoft Excel worksheets ESRI TIN dBASE (DBF) Text (TXT) OLE DB connections ODBC connections Microsoft Access Autodesk Drawing Exchange Format (DXF) AutoCAD Drawing File (DWG) MicroStation Design Files (DGN, etc.)

Direct Editing of Vector Data Personal geodatabase for access simple features File Geodatabase Shapefiles Personal, Workgroup, and Enterprise Geodatabases ArcInfo coverage Copy and paste CAD (AutoCAD and Microstation files) features directly into

other GIS feature classes Snap to CAD (AutoCAD and Microstation files) Data while editing CAD (AutoCAD and Microstation files) features save directly to GIS feature

classes



Features

GPS Support Display real-time location points from a GPS receiver Dynamically center the map on the current GPS point Store GPS locations in a log file or geo-database Filter by GPS input by time, distance, or deflection

Multi-User Geo-database Editing Create and load vector and raster data into a multi-user geodatabase Multiple editors can simultaneously edit the same feature classes in a

multi-user geo-database Isolate editing projects in separate versions (create version) Simultaneously view and edit versioned GIS Data Connect to multi-user geodatabases using operating system or database

authentication

Geographic Analysis Functions Clip Select features and table select Split Erase Identity Spatial join Intersect Union Update Buffer Near Point distance Point node Append Dissolve Eliminate Frequency Summary statistics

Supported Scripting/Programming Environment Support of at least one scripting/programming environment for customi-

zation/automating GIS tasks. These scripting/programming languages may be its own proprietary spatial scripting language, or any of the stan-dard scripting/programming languages or combination of the following standard languages: C++, C#, Visual Basic, Java, VBA, Javascript, VBScript, Python, and others.

Support of at least one scripting/programming environment for customi-zation/automating GIS tasks. These scripting/programming languages may be its own proprietary spatial scripting language, or any of the stan-dard scripting/programming languages or combination of the following standard languages: C++, C#, Visual Basic, Java, VBA, JavaScript, VBScript, Python, and others.



Transactions

Delete a parcel from the tax map

Amend the boundaries of a parcel

Attach/delete/amend textual data for a parcel

Subdivide a parcel

Amalgamate parcels

Correct/Edit Parcel Coordinate Geometry (e.g. use correct/corrected

parcel survey data to correct parcel real world coordinates).

Products - (related to property assessment and taxation functions)

Display and print maps of properties in a geographic area by ranges of market value

Display and print maps of businesses in a geographic area by nature of business, inspection required, violation, permit not renewed, etc.

Display and print maps of properties in a geographic area by se-lected property attributes (area, land use, vacant land, etc.)

Display and print maps of properties where RPT has not been paid

Display and print maps of properties where business tax has not been paid

Display and print maps of properties by outstanding tax amounts

Display and print maps of tax potential, tax collected or percent-age of tax collected by barangay or municipality

Display and print maps of proposed auctions of properties

Display and print analyses and comparisons property classifica-tions with property zoning by conducting overlay analysis of property classifications map and zoning map

Conduct ad hoc spatial/geographic analysis of data based on real property and business spatial data as combined with other LGU spatial data

Annex B

MINIMUM SYSTEM SPECIFICATIONS


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Minimum System Specifications

There are many systems in the market place of various levels of sophistica-tion providing different levels of functionality and services. There is no single sys-tem that is best for all LGUs since each LGU has its own set of requirements, capa-bilities, and resources and consequently, each LGU must determine how the sys-tems being offered meet their requirements. However, there are some require-ments which are considered to be essential and acquisition of systems that can-not fulfil these minimum requirements, either in their standard form or by way of customization, is not advisable. The minimum system specifications for RPTA, business tax systems, and treasury operations are listed below.

1. General

1.1 The functionality of the system must be demonstrated, preferably at an LGU where the system is operational.

1.2 Customization services must be available and the resulting customized software must be compatible or supported by new versions of the system.

2. Scope of Functionality

2.1 The software must include functions for the (i) maintenance of real prop-erty records, (ii) recording details of business establishments’ and (iii) col-lection of taxes and miscellaneous charges. Inefficiencies such as duplica-tions in data storage and processing will be encountered if these three LGU operations are not processed by a single computer system.

2.2 In broad terms, the system must have the following capabilities: a) For Real Property Administration and Tax Operation

Store and maintain real property appraisal and assessment records; Compute base market values for real property units from the Sched-

ule of Market Values; Compute assessed values for real property units with consideration

of adjustments and assessment level; and Generate appraisal and assessment reports (at a minimum, as pre-

scribed by BLGF).

b) For Business Permits and Tax Operation Store and maintain business permits and license details of establish-

ments (record details of business establishments); Store and maintains assessment and regulatory compliance details

of establishments; Generate business establishment records and assessment reports

and listings (at a minimum, as prescribed by BLGF); and Generate permits and licenses.


c) For Treasury Operation Store & maintain real property/business owner & payment records; Compute real property, business and other tax; Generate tax notices; Generate reports on receipts, expenditures and deposits (at a mini-

mum, as prescribed by BLGF); Posting, payments and issuance of receipt for RPT, business and

other income/miscellaneous transactions; and Calculate interest and surcharges.

It is highly desirable that the three computerization areas mentioned above are capable of being interlinked with each other, and are able to generate executive modules for LGU officials.

3. Data Management

3.1 The system must conform to relevant data standards stipulated in: BLGF – Manual of Real Property Appraisal and Assessment Operations

(January 2006); NSCB - Philippine Standard Industrial Classification (PSIC); NSCB - Philippine Standard Geographic Code (PSGC); and COA - Electronic New Government Accounting System (e-NGAS).

3.2 The system must permit the recording of land holders’ names with first name, middle initial, and last name stored in separate data fields.

3.3 The database must utilize relational structures for recording information to reduce data inconsistencies, increase flexibility, and remove limitations on repeating items.

3.4 The database must provide all data items normally recorded on the FAAS.

3.5 The system must have the ability to archive historical data and retrieve that data in an acceptable timeframe.

3.6 Capability must be available for all reference tables to be updated by the system administrator or operational staff.

4. Security

4.1 System security features must include: A login code and user password system with the ability to enforce

changes to users’ passwords; Database access restrictions by action type (update, edit and view),

transaction type and database tables; A log providing an audit trail of changes to the database; and The ability to prohibit unauthorized access and changes to the database

via the internet.


5. Reporting Requirements

5.1 The software must be able to generate all reports, in the prescribed for-mats required by the BLGF.

5.2 The user interface must provide the ability for the Systems Administrator to edit or generate new reports, displays and outputs.

6. Support Services

6.1 Full documentation of the system must be available, including the: User Manual; Systems Installation Manual; System Design Specification for customized features of off-the-shelf soft-

ware; and Systems Administration, Database Administration and Network Admini-

stration Manuals.

6.2 Trainings must be available from the supplier or a third party provider in the following areas: Operating the system; Systems Administration; Database Administration; and System Security.

If the training will be provided by a third party provider, the system sup-plier must be responsible for the delivery and the quality of the training.

6.3 Technical support for the system, both remote and on-site, must be avail-able. The supplier must be responsible for the availability and quality of the support even if the support will be provided by a third party provider.

6.4 The supplier must make available data migration/encoding services to load the data to the system database. If data migration/encoding services will be performed by a third party provider, the system supplier must be re-sponsible for the overall work of such provider.



Annex C

NATIONAL DATA EXCHANGE STANDARDS FOR LGU PROPERTY VALUATION

AND TAXATION SYTEMS

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National Data Exchange Standards

Data standards have been established for the recording of property assess-ment and taxation information and many of these standards are listed in the Manual of Real Property Appraisal and Assessment Operations (January 2006) issued by the BLGF. It is vital that these standards are adhered to by the LGUs to ensure that data can be aggregated at the regional and national levels. The existing standards cover terminologies used by the LGUs in their prop-erty valuation and taxation operations, the formats of key data items and code files/lists uniformly used by the LGUs. In the future, these standards could be developed further to cover a wider range of government functions. The development of these data standards should be consulted and coordinated with national government agencies that interact with local government agencies including COA, DENR, CICT, BIR, DOF, and DILG. Adoption of this approach will help ensure that there is a government-wide ac-ceptance of the standards. The current data standards for property assessment and taxation textual data items are listed below. For further information, reference should be made to the authorities listed for each standard. Note that standards for spatial data-sets (such as the cadastral framework) are being developed as part of the Philippines Spatial Data Infrastructure under the control of the National States Geographic Information Council (NSGIC). Refer to NAMRIA for further information.

Terminologies

Definitions of various terms can be found in the following publications:

BLGF: Manual of Real Property Appraisal and Assessment Operations Local Government Code 1991 – Sections 131 and 199 IVSC: International Valuation Standards Eighth Edition 2007 – Glossary

of Terms for International Valuation Standards Philippine Valuation Standards First Edition 2009 LAMP2-DOF: Provisional Simulation Training Handbook LAMP2-DOF: RESAS documentation

Data Formats

FORMAT AUTHORITY

Property Identification Numbering (PIN) System. (See Note 1)

BLGF – Manual of Real Property Appraisal and Assessment Operations (January 2006).

Standard Parcel Identifier (SPI) Numbering System (See Note 2)

DENR – LAMP II Component 3


Notes 1. The PIN consists of 14 characters in the following format:

2. The SPI consists of 64 characters in the following format:

Code Files


Province or City or MMA 3 (Numeric)

Municipality or District 2 (Numeric)

Barangay 4 (Numeric)

Section 3 (Numeric)

Parcel No. 2 (Numeric)

Urban Code 6 (Numeric)

Barangay 4 (Numeric)

Survey/Cadastral Plan No. 20 (Alphanumeric)

Block No. 4 (Alphanumeric)

Cadastral Lot No. 30 (Alphanumeric)

CODE FILE AUTHORITY

Property Details

BLGF – Manual of Real Property Appraisal and Assessment Opera-tions (January 2006).

Region Number

Province or City or MMA Index Number

Municipality or District Index Number

Barangay Index Number

Zone

Kind of Property

Transaction Type

Purpose of Valuation

Land Details

Actual/Potential Land Use

Land Classification

Land Sub Classification

Crops Description

BLGF – RESAS Documentation

Location Description

Road Frontage

Road Access

Road Surface

Schools

CODE FILE AUTHORITY

Land Details... (Continued…)

Shops


Terrain

Width of Street

Formed Road Drainage

General Neighbourhood

Location

Land Shape

Services

Unit of Area

Potential Use

Timber / Trees

Classification of Minerals

Type of Special Purpose

Consideration of Value

Land Components, Amenities, and Facilities Unit of Measurement

Agricultural Land Details

Agricultural Lands

Building Details

BLGF – Manual of Real Property Appraisal and Assessment Opera-tions (January 2006).

Classification Sub Classifications

Component

Construction Materials

Improvement

Building Type

Condition


Additional Characteristics

Sale Details

Entity Category

Gender

Sale Statement

Sale Price Type

Data Integrity

Finance Type

Sale Date Type

Source of Sale Statement

Special Factors

Code Files (Continued…)


Code Files (Continued…)


CODE FILE AUTHORITY

Commercial Details


Status of Occupancy

Type of Tenancy

Commercial Use

Payment Method

Lease Payment Type

Features

Business Location

Business Orientation

Special Features

Industrial Details

Building Characteristics

Cost Details

Component Part

Labour Payment

Unit of Measurement

Structure Type

Machinery Details

Machine Condition

Nature of Use

Machinery Component

Nature of Business NSCB – Philippine Standard Indus-trial Classification (PSIC)

Account Number COA – New Chart of Accounts Un-der the New Government Ac-counting System


Annex D

E-READINESS SELF-ASSESSMENT AND ACHIEVING READINESS TOOLS

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E-READINESS SELF-ASSESSMENT QUESTIONNAIRE


IMPORTANT

This self-assessment questionnaire seeks to aid the LGUs in assessing their readiness to embark on computerization, principally in three (3) signifi-cant areas: (i) organizational, (ii) financial, and (iii) operational readiness. LGUs can use a variety of methodologies in answering the questionnaire, which include survey, key informant interview, and focus group discus-sion. The outcome of this self-assessment is not intended to be a categori-cal yes or no, but will help LGUs discover their strengths, as well as ac-knowledge problem areas, and the corresponding action required. Any exercise in self-assessment must be carried out in reference to specific organizational objectives. To gauge the LGU’s readiness to computerize, total the number of ques-tions answered yes and refer to the following scale. You may use the re-marks column to record other pertinent information.

17 to 22 questions – HIGH READINESS

11 to 16 questions – MEDIUM READINESS 10 questions and below – LOW READINESS


Name of LGU:__________________________________ Province: ____________________ Name of person accomplishing this form: ________________________________________ Position: ________________________________ Date accomplished: __________________ Sources of information: _______________________________________________

Yes No Remarks

Organizational Readiness

1 Is there commitment at various levels in the local govern-ment unit (LGU) to computerize?

2 Has this commitment been translated into official documen-tation such as council resolutions, executive orders, etc.?

3 Has the LGU institutionalized an Information Systems Strate-gic Plan (ISSP)?

4 Has the ISSP been measured against specific organizational objectives?

5 Have change management activities been planned?

Financial Readiness

6 Is there a budget allocation for pre-implementation costs?

7 Is there a budget allocation for implementation costs?

8 Is there a budget allocation for on-going/continuing costs?

9 Are funds readily accessible and can be released at any time needed?

10 Has the LGU identified funding sources to sustain computeri-zation in the future?

Operational Readiness

11 Are manual records complete, correct and in good physical condition?

12 Are manual procedures properly documented?

13 Has a data dictionary been compiled to ensure a common understanding of the terminology to be used in the comput-erized system?

14 Is there an agreement between different units in the LGU to make relevant records easily accessible during the process of computerization?

Is the Information and Communication Technology (ICT) infra-structure in place, in terms of the following:

15 Organizational structure and personnel

16 Equipment and communications network

17 Are concerned LGU personnel capable of basic computing?

Is the office accommodation suitable to computerization in terms of:

18 Physical space

19 Electrical points and wiring

20 Air conditioning

21 Furniture

22 Has an initial Systems Requirements Specifications (SRS) been developed?

ACHIEVING READINESS

The e-Readiness Self-Assessment Questionnaire is essential for the LGU to identify the specific strong and weak areas in their organization. To achieve readi-ness, the LGU will need to conduct thorough research and study, and a series of consultations and consensus building with stakeholders. It is not advisable to sim-ply produce or comply with the missing factors described in the completed ques-tionnaire and jump immediately into computerization. The LGU’s level of readiness, as a result of this questionnaire, will show the things that are still needed to be done. However, whether the readiness is low or high, the LGU will still need to consider the following factors before undertaking the computerization:

A. The LGU, before anything else, should conduct a Viability Study to determine if the benefits are greater than the cost implications. The study should also include the “Cost of Operation” to ensure that the target “revenue” is greater than the “cost of collection”. Otherwise, it may not be feasible to adopt com-puter systems but rather simply improve the productivity of staff to achieve the expected outputs. The undertaking should therefore be self-liquidating since the activity involved is revenue-generation. The LGU should also discuss and draw out various potential risk issues from planning, finance, and imple-mentation to achieve sustainable operation. The LGU will also need to com-plete the study with adequate cost estimates according to priorities versus timeline of implementation.

B. The LGU will need to seek assistance from a professional/expert in Enterprise Architecture Planning, IT Project Management and LGU operations back-ground. The Enterprise Architecture Plan will support the LGUs strategic direc-tion for the Information Systems (as described in the LGU-ISSP), Technology Solu-tions (HW, SW, etc.), integrations, documentations, etc. The IT Project Manage-ment shall ensure that the plans, implementations, etc., are in accordance to industry standards, best practices, and quality assurance. The expertise in LGU operations shall support the identification of requirements, and, most impor-tantly, the evaluation of products and services achieved.

C. Based on the results of the questionnaire, the LGU should conduct an organ-izational assessment. LGUs should define the current level of operation, archi-tecture, process, etc., which should be anchored on organizational perspec-tive. At the least, the LGU should have clear and precise documentation of the following:

Key issues and assumption; Stakeholder needs and expectations; Current Business Architecture (processes, personnel, plantilla positions, func-

tions, etc.); Current platform, ASW, SW, HW, DB, NW Architecture; Current Data (Element, Privacy, etc.);


Interpretations of rules, procedures, etc.; and Current Policies.

Ideally, prior to computerization, LGU operations, processes, and procedures are already clearly established, defined and managed. Following a basic princi-ple in computerizing a specific operation, the Enterprise Architecture should follow established “correct” operations and not the other way around. LGUs should avoid adjusting their operational requirements to suit the Enterprise Architecture limitations. “What you build is what you get.” (Refer to the Pre-requisites of Computerization section of this document for more explanation)

C. After identifying the “where are we now?” or the current status of the LGU,

the “where do we want to go?” or the strategic direction of the undertaking and “what are the things we need to get there?” should be determined. Such analysis should be conducted together with the stakeholders and sponsors . At the minimum, the assessment should clearly describe the following:

The strategic directions of the computerization should focus on:

Mission, objectives, scope, expected outcome in business perspective, etc.; Future opportunities such as remote transaction (Internet) or Content Man-

agement (Text Messaging); The output business architecture or operation (Streamlined procedures, per-

sonnel productivity, product and services); The output information systems architecture (application software, software

interfaces, data distribution and management, etc.); and The output technology architecture (Network, Hardware, Enterprise Software,

etc.). The requirements are:

Capacity building, personnel, management requirements, etc. Procedure, product and service improvements, etc. Application software functionalities, features, etc.; Data distribution, management, cross referencing requirement, etc. ; Information requirements (executive, operational, knowledge level) ; Network protocol, connectivity services, communications layers require-

ment; Platform requirements (operating system, database engine, etc.); Servers, Desktops, etc. (basic and managed) ; Cost to implement and to maintain; Facility requirement (office, electricity, security, etc.); and Reforms, Policies, and Support requirements.


D. The LGU will also need to assess other prevailing circumstances. There are factors beyond expertise and readiness that may affect the overall aspect of the undertaking before, during or after the implementation. Some special factors that may impede the undertaking are, as follows:

i. Political environment of the LGU: Changes in administration sometimes lead to changes in priorities;

ii. Peace and Order: Unstable peace and order condition may limit support services;

iii. Weather environment: Typhoon prone areas will require special net-works and facility protections;

iv.Geographic location: Availability and cost of technical expertise, re-sources, etc. may affect LGUs far from urban areas; and

v. Norms and practices: Some LGU personnel may be practicing different ways of doing things as a result of an established norm or behaviour that may limit their liberty to exercise that practice and eventually translated to “resistance”. A classic example is the “bundy clock” for time and attendance monitoring.

At the outset, the LGUs must understand that computerization is an expen-sive venture. Careful planning and caution should be highly considered to avoid incurring unnecessary costs. Computerization is more than just Information Tech-nology. The undertaking requires knowledge, skills, and sufficient understanding of project management to effectively facilitate the process.



Annex E

PROPOSED MINIMUM ICT ORGANIZATIONAL STRUCTURE

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INFORMATION SYSTEMS MANAGEMENT OFFICE (ISMO) Different LGUs have adopted different organizational approaches in estab-lishing an IT unit. It is recommended that, at the minimum, the ICT workforce of the LGU be composed of an (i) ISMO Chief, (ii) System Administrator, (iii) Network Administrator, (iv) Database Administrator, (v) Hardware/Software/Network Tech-nician, and (vi) Quality and Document Manager. The structure should facilitate strong coordination between the ISMO, and the Assessor’s and Treasurer’s Offices. The recommended official name of the LGU IT unit is Information Systems Man-agement Office (ISMO).

Organizational Accountabilities of the ISMO

At the minimum, the following are the key duties of the ISMO: 1. Develop and establish ICT policies with partner stakeholders (Treasurer’s Office,

Assessor’s Office, Business Permits and Licensing Office), implement and enforce agreed policies, and facilitate continued improvement of ICT policies for the LGU. (The ICT policy shall encompass ICT utilizations, management, protection, and

maintenance of the Hardware, Software, Networks, People and Data.)

2. Provide knowledge support (research and documentation) and advise on the stra-tegic directions of the ISSP (ICT short-medium development plans) and all re-lated IT working documents of the LGU;

3. Coordinate, evaluate, and monitor the effective use of the system, providing recommendations on related ICT implementations of the LGU;

4. Function as the “service bureau” for all ICT requirements of the LGU;

5. Conduct periodic training needs assessment (determine training requirements), and capacity building programs on all ICT related implementations;

Office of the Local Chief Executive

Assessor’s Office/ Treasurer’s Office/BPLO, etc.

I S M O

IT Officer II System, Network Admin-

istrator

Data Controller IV Database Administrator

Computer Technologist III

NW, SW, HW Technician

IT Officer III Quality and Document

Manager

IT Officer IV Information Systems Manager

Proposed Organizational Structure of the ISMO

6. Provide technical assistance in the assessment and procurement of all ICT re-lated requirement of the LGU;

7. Prepare a periodic report on all ICT concerns, and provide on-demand access to regular data/information requirements of concerned LGU officials/departments;

8. Ensure that the ICT planning, implementation, and evaluations complies with industry standards and best practices.

Accountability of Individual ISMO Personnel

Information Systems Management Office Chief (IT Officer IV)

i. Ensure the effective and efficient implementation of all organiza-tional accountabilities of the ISMO;

ii. Ensure that ISMO personnel have adequate qualifications (physical and psychological wellness) and expertise, know-how and skills on present and new technologies;

iii. Supervise and manage the ISMO personnel in compliance with indi-vidual accountabilities;

iv. Ensure the effective communication among and across concerned personnel and offices of the LGU;

v. Ensure that the concerned LGU personnel have the capacity to ac-cess and operate ICT facility of their respective offices, and that con-cerned offices have minimal dependency on the ISMO;

vi. Ensure that the ISMO services are available during office hours and on-demand; and that the ICT facility function and operate at a mini-mal downtime the year round;

vii. Ensure the periodic consultations and assessment with stakeholders on implementing new technologies to improve business operations and services; and

viii. Facilitate the approval of ICT policies, ICT short and medium term development plans (ISSPs) and their integration to the LGU compre-hensive plans.

Quality and Document Manager (IT Officer III)

i. Provide technical assistance and inputs to quality assurance and documentation concerns, and the development and improvement of related policies and control measures;

ii. Implement, monitor and evaluate quality assurance policies and control measures, and conduct related training;


iii. Perform and conduct periodic research, review, and assessment of industry standards and best practices in ICT implementation and practices;

iv. Ensure the preparation and updating of the following : ISMO communications (letters, minutes of meetings, circulars, etc.); ISSP and other related knowledge resource; User and Systems Installation Manuals; System Design Specification for customized features of software; Systems Administration, Database Administration and Network

Administration Manuals; Disaster Recovery Procedures / Manual; Structured Cabling and Network Design Diagram; ICT Inventory and System/Data access rights and passwords; Business Process Flow; and Archive of computer data and Information from the Database

Administrator and other related offices.

v. Involve concerned stakeholders in the accountabilities of the Quality and Document Manager and formulate appropriate recommenda-tions and / or reports.

Network and System Administrator (IT Officer II)

i. Provide technical assistance and inputs to network and systems ad-ministration concerns/requirements, and in the development and improvement of network and systems policies and protocols;

ii. Implement systems and network policies and protocols: (i) make available network and related system services; and (ii) monitor and evaluate network and systems use;

iii. Conduct periodic review of network and systems-related training requirements, and provide trainings to concerned LGU personnel based from review;

iv. Ensure network and systems operation under secure environment, and facilitate the conduct of periodic disaster recovery simulation with stakeholders;

v. Perform and conduct periodic research, review and assessment of industry standards and best practices in network and systems proto-cols and practices;

vi. Prepare and update the following documentations: User Manual and Systems Installation Manuals; System Design Specification for customized features of software; Systems Administration and Network Administration Manuals; Disaster Recovery Procedures / Manual; and System/Data access rights and passwords.



vii. Involve concerned stakeholders in the accountabilities of the net-work and systems administration, and formulate appropriate recom-mendations and/or reports.

Database Administrator (Data Controller IV)

i. Provide technical assistance and inputs to database concerns/requirements, and in the development and improvement of data-base administration and management policies and protocols;

ii. Implement database administration protocols: (i) make available database services; and (ii) monitor and evaluate database use;

iii. Conduct periodic review of data and information requirements, and validate findings with concerned stakeholders;

iv. Ensure data access and distribution under secure environment, and participate in the conduct of periodic disaster recovery simulation with stakeholders;

v. Perform periodic research, review, and assessment of industry stan-dards and best practices in database administration protocols and practices;

vi. Prepare and update the following documentations: Database Engine Installation Manual; Data Dictionary, Libraries, Frameworks, Diagrams, etc.; Database Administration Manuals; Data and Information Inventory; Data access rights and passwords; and Back-up and Archive of computer data and Information.

vii. Involve concerned stakeholders in the accountabilities of the data-base administration, and formulate appropriate recommendations and/or reports.

Network, Hardware and Software Technician (Computer Technologist III)

i. Provide technical assistance and inputs to related network, hard-ware, and software concerns/requirements, and in the development and improvement of network, hardware, and software management and maintenance policies and procedures;

ii. Implement network, hardware, and software policies at the user level: (i) make available network, hardware, and software services; and (ii) monitor and evaluate network, hardware, and software use;

iii. Provide periodic maintenance of network, hardware, and software; iv. Provide technical assistance in network, hardware and software

inspections for procurement purposes; and v. Assist in maintaining an updated network, hardware, and software

inventory.


Annex F

ASSESSMENT, TREASURY AND BPLO WORKFLOW

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Business Permits & Licensing Operation (BPLO)

General Process Flow*


Application

Assessment &

Approval

Billing

Payment

Release of

Permit & License

Interview Validation of Declarations Regulatory Compliance

Classify Application Accomplish Forms Inspection of Requirements

Computation of Taxes Arrears Fees & Charges

CTC Payment Issuance of OR

Business Plates Regulatory Permits Business Permits & License

* This is a typical process flow in securing business permits and license in the LGUs. The steps, however, vary by LGU depending on the type of transaction, i.e., business renewal or new application. A Joint Memorandum shall be issued to standardize the required number of procedures for the business permits and licensing system (BPLS).


Real Property Tax Payments

General Process Flow

Assessor

Verification of

Property

Treasury

Land Tax Section

Billing

Treasury

Cashier Section

Payment

Interview Validation of Declarations Regulatory Compliance Sworn Statements & CTC Approval

Inspection of Requirements Previous Tax Declaration Previous Official Receipt, etc.

Verify Ownership Update of record, if any

Payment Issuance of OR Update Payment Record


Real Property Appraisal and Assessment Operation


Assessor’s Office:

Records Division

Releasing of TD

Updated records (Cancellation, PRF, etc.), Release of Document to Owner


Appraisal Division

Field Validation & Update

Inspection of Property Determine Value and Assessment Inspection Report Prepare FAAS Prepare Tax Declaration Endorse to Asst. Assessor


Assistant Assessor

Validation of FAAS & TD


LGU Assessor Approval

Validate appraisal and assessment Ensure accuracy of TD and FAAS Endorse to Assessor

Ensure correctness of documents Approval


Appraisal/Records Division

Review of Documents

Inspection of Requirements Accomplish Forms Verify Ownership Prepare Reference Document for Field work

This General Process Flow is also applicable for the following transactions: New appraisal or assessment of property; Re-appraisal request of property; Re-assessment request of property; Change in land use; and Transfer of ownership.


Real Property Certification Operation


Assessor Office:

Records Division

Releasing of TD

Updated records Release of Document to Owner

Assessor Office:

Records Division

Verification of Property

Inspection of Property Determine Value and Assessment Inspection Report Prepare FAAS Prepare Tax Declaration Endorse to Asst. Assessor

Assessor Office:

Assistant Assessor

Validation of Certificate

Assessor Office:


Ensure correctness Endorse to Assessor


Assessor Office:

Records Division

Review of Documents

Inspection of Requirements Accomplish Forms Verify Ownership Prepare Reference Document

This General Process Flow is also applicable for the following transactions: Certified True Copy of Documents; Certification of Land Holdings; Certification of No Property; and Other certifications.


Real Property Transfer of Ownership



Records Division

Releasing of TD

Updated records (Cancellation, PRF, etc.), Release of Document to Owner


Appraisal Division

Field Validation and

Updates

Inspection of Property Inspection Report Update Value and Assessment If any Prepare FAAS Prepare Tax Declaration Endorse to Asst. Assessor


Assistant Assessor

Validation of FAAS & TD



Review supporting documents Ensure correctness of TD & FAAS Endorse to Assessor



Appraisal/Records Division

Review of Documents

Inspection of Requirements Accomplish Forms Verify Ownership Prepare Reference Document Issuance of Claim Stub


Treasury Disbursement Operation


Accounting Office

Filing of Voucher

and Attach

Supporting

Documents

Budget Office

Obligation Request

Slip Processing

Accounting Office

Registry of

Allotment

Accounting Office

Accountant’s

Advice on

Allotment to Bank

Requesting Office

Payroll Operating

Expense

Preparation of Check Recording of Payment

Release of Payment Recording of Release, Voucher and Supporting Document Submissions

Verification of Documentations Validate Fund Availability Prepare Certifications Approval of Treasurer

Treasury

Office

Certification

of Fund

Availability

Treasury

Office

Prepare

Check

Payment

Treasury

Office

Payment or

Payroll

Release


Treasury Revenue Generation


Revenue

Monitoring

Billing Operation Payment Collection Field Collection Remittances Liquidation & Reconciliations Next Day Deposits

Accounts Ledger

Maintenance

Business Permits & Licenses Real Property Other Tax Income Journal Entries

Inventory

Accountable

Forms

OR Control Cash Ticket Control Report of Inventory Issue OR/Cash Ticket to

Cashier

Site

Collection

Field Collection


Annex G

COMPUTERIZATION BUDGET TEMPLATE

Based on Section 5 of this Guide, this template is intended to serve as a tool to arrive at a cost estimate

of a computerization project. LGUs must examine whether items listed under ‘Expense’ and ‘Particulars’ are applicable to their needs.

GU

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tern

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ervi

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lace

men

t o

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bto

tal (

on

-go

ing

)

TOTA

L

TECHNICAL WORKING GROUP

Bureau of Local Government Finance Dr. Jose Arnold M. Tan Deputy Executive Director, Operations Ma. Pamela P. Quizon Acting Chief, Local Revenue Enforcement Division Mercy N. Santos Chief, Real Property Assessment and Examination Division Ma. Florizelda A. Enriquez Acting Chief, Management Information and Data Systems Division Rommel M. Cunanan National Technical Adviser, ISM Kevin Rainsford International Technical Adviser, ISM

National Computer Center Ma. Eloisa San Mateo Information Systems Analyst III - RITC Noel E. Mendoza Information Technology Officer I

Department of Budget and Management Carmencita N. Delantar Director IV, Reg’l Operations & Coordinating Service

Department of Interior and Local Government Manuel Q. Gotis Director IV, Reg’l Operations & Coordination Service

City Government of Naga Engr. Ramon R. Albeus City Assessor

City Government of Sta.Rosa Nelly C. Gomez City Assessor

City Government of Quezon J. Voltaire Enriquez Assistant Treasurer

Commission on Audit Editha M. Ramirez State Accountant V

League of Municipalities of the Philippines Joulhlan S. Aralar CPPPO

League of Provinces of the Philippines Jesse Alcaraz Policy Officer RESOURCE PERSONS Consolacion Q. Agcaoili Acting Chief, Local Treasury Operations Division Brenda L. Miranda Senior Tax Specialist, Local tax Policy Research and Review Division Luz R. Lapid Acting Chief, Local Assessment Operations Division SECRETARIAT Anthony S. de la Cruz Project Development Officer, LAMP2 PVS Edmond M. Yee Project Development Officer, LAMP2 PVS Grace Louie J. Mantos Project Assistant, LAMP2 PVS Canhermi O. Sampang Project Assistant, LAMP2 PVS Niño B. Alvina IEC Specialist, LAMP2 PVS

TECHNICAL WORKING GROUP

RESOURCE PERSONS (BLGF)

SECRETARIAT

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