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In the current set-up, an applicant would submit the application form to the BPL
Officer. The officer assigned reviews the document and verifies application details. If
applicant has previously registered, information such as business owner, address, nature of
business, size of business, payments made in the past, or if arrears are due and demandable
can be viewed in the system. If new, the officer encodes details to the system.
The next step is to secure the permits from sanitary, fire, and building officials. The
nature of assessment required would be dependent on the nature of business such as
restaurants, which has additional measures from the sanitation office. In peak months of
business registration, which is from January – March of each year, these offices convene at
the Business One Stop Shop (BOSS) of the municipality. The rest of the year, they go back to
their corresponding offices, which are geographically distant from each other.
Once all documentary requirements are ok, a Tax Order of Payment (TOP) is issued
reflecting all the amount payable, including fines and penalties when necessary. Over the
counter payment is made at one of the four cashiers at the Muncipal Treasurer’s Office (MTO).
After payment, the receipt is presented back to the administrative staff of the BPLO, which
encodes details of payment made to the computer that is linked and synched to the computer
of the BPL officer. Finally, a printout is made for the signature of the mayor. If the mayor is
present, the application process is done in sixty minutes and the permit can be issued
immediately.
Human Resources
Table 2. BPLO Human Resource Complement
Position Number Status
Municipal Treasurer 1 plantilla
Licensing Officer 1 plantilla – designate
BOSS Administrative Staff 1 plantilla
Cashier 3 job order
1 plantilla
IT Personnel 0 n/a
The BPLO is directly under the Municipal Treasurer’s Office (MTO), which is headed by
the Municipal Treasurer. However, previous years experience and to ensure exigency of the
delivery of service, the BPLO is also under the direct auspices of the Mayor’s Office. The
municipality has designated Mr. Frederico Monteverde as its BPL Officer. While there is no
permanent IT officer, Mr. Listana, the one who developed the program for the BPLS is
assisting the BPLO in matters related to ICT. When not around, other LGU employees who
are deemed knowledgeable in ICT support the BPLO in its ICT needs including
troubleshooting. For its part, the BPL Officer said to have received some trainings on Visual
Basic, MS Access, and other capacity-building interventions from DTI or DICT on matters
regarding BPLO operations, policies and guidelines, and new directions such as automation
and computerization via e-BPLS.
Policy Support
Guided by the principles of reducing bureacratic red tape, the BPLO is strongly
implementing RA 9485 or the Anti-Red Tape Act (ARTA) of 2007. The simplified BPLS of the
municipality is consist only of four steps and four signatories to be completed in under sixty
minutes. With the implementation of the Ease of Doing Business and Efficient Government
Service Delivery Act of 2018, it is fully commiting to improve further the BPLS. It has now
signed a MOA with DICT and has sent three of its staff for the training in support of its
implementation. For now, it is using its Local Revenue Code as the guiding principle in the
operation of the BPLS.
BPLS ICT Architecture
Figure 2. BPLS Network
Although a 2 MBPS wifi connection is availalbe at the BPLO, the BPLS is currently
connected through a local area network (LAN) supported by two routers and one server inter-
linking six personal computers and four printers. Through the network, data and information
is accessible and viewable among the BPLO, MTO, and the cashier. However, it is only the BPL
officer and the BOSS administrative staff who has the access to the editable version of the MS
Access program. Mr. Listana, serving as the system administrator has access to all the
desktops in which the program is installed. In support of the operations, the following are the
hardware components at the different offices:
Table 3. BPLO Hardware Components
Equipment Number Specification
personal computers 6 Windows 2007
printer 4 LX 310
router 2
UPS 2
generator set 1
Software Component
The six computers are running on Microsoft Windows 2007 as its operating system.
Meanwhile, the BPLS program runs on MS Access, which was developed by Mr. Listana
designed according to the existing procedure of the BPLO. It has yet to get any updating
since its development in 2009. The MS Access program is used to process business
application, assessment, payment, and issuance of permit.
Figure 3. The MS Access Interface of the BPLS
Discussion and Recommendations
When asked about its readiness for the implementation of the e-BPLS, all of the
stakeholders said that the municipality is ready. With the full support of the Mayor, the
guidance of DICT, and the push of its Municipal Administrator, the BPLO is confident that it
can face the transition to automation with full confidence.
However, the willingness of its people is but an intangible part of the whole
Management Information System (MIS) that should be put in place to optimize the output of
the BPLS by connecting the operating systems through the medium of information exchange.
The concept of MIS is a set of interrelated components that work together to collect, process,
store, and disseminate information to support decision-making, coordination, control, analysis
of an organization. It is also utilized to improve processes to make it more efficient, effective,
economical, and transparent.
It should be understood that an information system is a combination of both the
tangible and intangible, including technology (hardware, software, and data), network,
people, and the process or steps.
The 6 Ps of the BPLS MIS Improvement
Plan
The ICT Plan would embody what the LGU intends to do in order to create a
favorable climate for businesses. It should involve the investigation of the market, technical,
financial, economic, and operational viability of computerization and automation. It should be
able to establish the various term-goals vis-à-vis the vision of the municipality. Specifically,
the plan should also look into alternative technical schemes to attain its objectives for the
BPLO including possible size, location, process; and physical, financial, and resource
requirements. The plan should also be able to determine whether the project generates
sufficient benefits to offset estimated investment and operating costs. Finally, the ICT Plan
should be able to identify the most suitable legal, administrative, and organizational
arrangements to ensure smooth implementation.
Policy
To ensure sustainability, policy support should be in-place aligned with national
laws and regulations. The Local Revenue Code of the municipality has not been updated since
2005, which makes most of its provisions obsolete to the demands of the times.
People
All change begins with the will to change. The key factor in successful BPLS reform
is firm political resolve to introduce reforms. The LGU is fortunate to have a local chief
executive who is progressive in her agenda that her buy-in to the idea of computerization and
automation is unwavering. It is also commendable that despite the absence of an IT
personnel, LGU staff initiated ways in order to install mechanisms that would make the
operation of the BPLO more efficient and effective. With this, there is real necessity to create
an ICT office, or at the very least a plantilla position for an ICT personnel that would be
dedicated in the implementation of ICT program of the LGU. Moreover, the plantilla for the
BPL Officer shall likewise be created. It should be noted also, that political will must be
matched with institutional knowledge and resources. Continuous capacity-building and
training should be accorded to the BPLO staff and personnel.
Partnership
Public-private partnership would be an essential strategy in order for reforms to be
fully implemented and integrated. In this regard, a Memorandum of Agreement (MOA) has
already been signed to avail the software developed by DICT. With this software, the DICT
grants access to the municipality for its use, including the necessary service for its installation,
configuration, set-up, data base build up, and technical support during the implementation of
the system. Other partnerships should also be pursued, like Landbank to link the LGU to its
ePayment collection gateway.
Process
As mentioned earlier, LGU utilizes a combination of manual and a locally-developed
management information system by an in-house staff for its Business Permit and Licensing
Office (BPLO). Since its installation, the program has yet to upgrade despite the increasing
number of business registrants year on year. The good thing about this is that the program is
not dependent on the low bandwith of internet connection of the municipality.
E-BPLS System Architecture
DICT’s Electronic Business Permits and Licensing System (e-BPLS) is a cloud-based
application software system that allows business owners to file their application for busines
permits online and enable LGUs to process the applications electronically. This system
standardizes the business process flow in the application of business permit and license and
provides a fast turnover time in the processing. The tedious manual processes that required
much applicant follow-ups are replaced by as system that enables applications, queires on
approval status, as well as tax dues (DICT. n.d.).
Figure 4. e-BPLS ICT Architecture
The e-BPLS shortens the processing time and provides up-to-date information on
the status of applications to the business owners and to the LGU users. The following is the
discussion of the proposed system flow based on the requirements and prescription of DICT
(DICT, 207):
Figure 5. Proposed e-BPLS Flow
Main System Modules
1. Application – facilitates the application for new or renewal of business permit. The form
used is the unified form prescribed by the DTI-DILG-DICT JMC, which contains all the
information required by the LGU and other concerned offices such as the Bureau of Fire
Protection (BFP). Online applications and walk-in applications are supported.
2. Assessment – the setup for the schedule of fees or the rules governing the computation of
the collection for business taxes, fees, and charges are initially set prior to using the e-
BPLS. This is based on the existing rules of the LGU as prescribed and set by the LGU’s
Local Revenue Code. The BPL Officer sets this. Once all the rules and schedule of fees are
set per line of business or in general, tax order of payment (TOP) will be automatically
generated. Rules on the computation of interest, surcharge, and penalty are also set.
3. Endorsement – this refers to the process of endorsing the application or giving clearance
on such application based on the filled out application form, documentary requirements,
existing records for renewal (based on inspection reports, compliance/ noncompliance
reports, positive/ negative list, etc.) in compliance with existing local and national laws.
The endorsing offices are the internal offices of the LGU such as the Municipal Engineering
Office (building), Sanitary Inspection Office, and the Bureau of Fire Protection.
4. Payment – payment schedule such as the annual payment, semi-annual, and quarterly is
set by the LGU. Cash payment, cheque, and combined mode are supported. Payment can
also be done over the counter or via online payment (this depends on the electronic
payment provider of the LGU, e.g. Landbank, GCash, etc.). With this, generation of official
receipt (OR) can be done using the existing pre-printed OR or through electronic receipt.
5. Permit Issuance – after the completed clearance from all the endorsing offices, only then
that the business owners can proceed to payment. After payment, the BPL Officer or the
Office of the Mayor can print the business permit. Business permit can be emailed to the
applicant or printed by the LGU and be claimed by the applicant.
The system users are the authorized e-BPLS users of the LGU. Their access levels
are the defined functionalities they can perform at the system. The following are the
different user types and their respective roles and responsibilities:
1. System administrator – this is performed by the MIS of the LGU, or any unit performing
this function, with the following responsibilities:
a. Maintain the e-BPLS and back up the system and its database
b. Create and assign user accounts
c. Ensure the users access to e-BPLS
d. Build and maintain the data references
e. Activate and deactivate users
f. Unblock LGU users
2. Business Permit and Licensing Officer
a. Build and maintain the data references
b. Setup the schedule of fees
c. Input/ process applications
d. Review and approve applications
e. Generate system reports
f. Perform re-assessment
g. Generate notices and reminders
h. Generate the business permit
3. Treasurer
a. Setup the schedule of fees
b. Perform re-assessment
c. Generate system reports
d. Collect payment
e. Generate official receipt
4. Endorsement Offices – Sanitary Inspection, Building Official, Bureau of Fire
a. Review the application details and documentary requirements
b. Set/ input required fees and charges
c. Mark the application as completed based on the inspection and compliance
Peso
However, automation and computerization as a strategy has accompanying costs
in the acquistion of equipment, software development, and training of personnel (BMSMED,
2008). Therefore, the costs and benefits of auto automation must be understood before any
decision to automate. Small towns and municipalities must be circumspect in purchasing
computer hardware, especially if the local business sector is underdeveloped (USAID, 2011).
Currently, other offices at the LGU have software applications installed by a private
provider of electronic solution, which the LGU pay on an annual basis, but it does not cover
the BPLO. Recently, a private firm offered the LGU another product that would focus on
revenue generation processes including real property tax administration, amellar collection,
and business permit licensing system. The proposal covers software applications and licenses;
project management and implementation; software installation, customization, and
modifications; technical supervision on document imaging and database construction;
training; post-implementation technical support services. For hardware particulars, it includes
database server, workstations, printers, and local area networks. The total package cost is
PHP 12,859,833 (Amellar Solutions, 2017).
Although the LGU recognizes that long-term financial and other benefits would far
outweigh the initial investment costs, the aforementioned amount is already almost ten
percent of the annual internal revenue allotment (IRA) of the LGU. Meanwhile, the e-BPLS
being offered by DICT is free. Apart from this, DICT would also be responsible for undertaking
all the project-related activities; provide system installation service, which shall be limited to
the loading of the application software to the required ICT devices; provide IT support in the
configuration, set-up, and testing of the software; conduct users training for system users;
provide technical support during the database build-up and pilot stages; and provide support
during the implementation of the system (DICT, n.d.).
It’d be the responsibility of the LGU to provide human resource complement and
the necessary ICT resources such as workstations, backup on premises or cloud-based,
servers, Internet connectivity, software, network, and other necessary hardware (DICT, n.d.).
Based on the e-readiness survey conducted by DICT, most of these requirements are already
available at the municipality in order to jumpstart the automation of the BPLS (DICT, 2016).
The other budget consideration to consider next is to upgrade the software and hardware
components, and investing on creating a plantilla position for IT and BPL officers. This should
be taken into account given the Personnel Services (PS) ceiling of the budget of the
municipality.
Conclusion and Implications
Figure 6. The Business One Stop Shop (BOSS) of LGU Gubat
Although its phases (and the hardware and software components) appear
sequentially separated and functionally differentiated, the MIS of the BPLS is actually a
continuum, wherein the phases and sub-systems continually interface back and forth. To say
that it is only computer-based system may mean losing sight of the fact that one is also
dealing with people; or to say that running data through a system is separate from people is
irrational, because such data assist decision-makers by providing information at various stages
of decision-making and thus helping the LGU to achieve its goals and objectives. The different
components of an MIS are a synergistic process in its entirety.
MIS deals with the effective management of data into useful information that can
be used for practical purposes. It has found its widespread application in many facets of our
lives its benefits have been incalculable. The use of ICT as a governance tool has been both
critical and strategic for the government to meet its primary mandate of providing public
goods and services in the most effective and efficient manner (Amellar Solutions, 2017) .
Although not all has succeeded on their first try, it was observed that LGUs that
have implemented e-BPLS realized increased efficiency public service delivery mechanisms,
better record management, improved citizen engagement in government, and increased
revenue collection. Other benefits are greater transparency, further convenience, less
corruption, and reduced cost. LGUs should leverage ICT not only as a strategic management
tool, but also as a development strategy to enable them to respond to the dynamic demands
of its constituents.
So, is LGU Gubat, Sorsogon ready to implement the e-BPLS?
Indeed.
References
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Author’s Biography
The author is the current Municipal Administrator of LGU Gubat, Sorsogon. He has
more than seventeen years of experience in humanitarian and development works having
served as program manager and supervisor for British Council; Voluntary Service Organization;
Department of the Interior of Local Government – Local Government Academy; De La Salle
College of St. Benilde; and, Globe Telecom. At present, he is taking his PhD in Development
Management at Bicol University. He finished his Master of Community Development and
Bachelor of Arts in Public Administration at University of the Philippines Diliman. He is also an
alumnus of International Academy of Leadership in Gummersbach, Germany.