CALLING FOR COMMENTS/SUGGESTIONS ON THE PROPOSED POLICY ON THE GRANTING OF EXTENSION OF TIME TO SUBMIT ANNUAL REPORT FOR CPC HOLDERS
ISSUE PAPER: POLICY ON THE GRANTING OF REQUEST FOR EXTENSION OF TIME TO SUBMIT ANNUAL REPORT
The National Water Resources Board (NWRB) as the government coordinating and regulating agency for all water resources development and management activities of the country grants Certificate of Public Convenience/Certificate of Public Convenience and Necessity (CPC/CPCN) for the operation and maintenance of water utilities and services and impose penalties for administrative violations thereof.
CPC grantees are required to abide to the NWRB Modified Standard Rules and Regulations in the operation of waterworks systems, one of which is the submission to the Board of an Annual Report of finances and operation of its waterworks system for the previous year in the prescribed Annual Report Form which is due on or before May 30th of every year. Non-submission of the Annual Report is subject to the imposition of penalty charge in the amount of P5,000.00 per year as per NWRB 2015 Fees and Charges. On the other hand, request for extension of time to submit Annual Report has a charge of P1,500.00
The Systems and Accounts Section (SAS) of the Water Utilities Division where the submission of Annual Report of CPC grantees is lodged has been receiving Requests for Extension of Time to Submit Annual Report from grantees with different period of extensions. Moreover, situations are also encountered, although in rare cases, where CPC grantee/s consistently does not submit its Annual Report and rather opt to pay the penalty charge of P5,000.00 instead.
ISSUES AND CONCERNS
While Requests for Extension of Time to Submit Annual Report is allowed for CPC grantees, there is no clear-cut policy with regard to the fixed period on which to allow the extension of time nor is there a policy for the consistent violation on the non-submission of the Annual Report.
In the light of the foregoing issues and concerns, the following guidelines shall govern the granting of Request for Extension of Time to Submit Annual Report:
2. Letter-request for the extension of time to Submit Annual Report must be received by NWRB on or before May 30th of the current year, otherwise penalty for non-submission of Annual Report will be imposed.
3. The penalty for non-submission of Annual Report shall be increased from P5,000.00 to P10,000.00.
4. The extension period for the submission of the Annual Report shall not be beyond one (1) month from May 30 of every year or until June 30.
5. CPC grantees requesting for extension of time beyond one (1) month within which to submit its Annual Report shall be notified in writing of the maximum allowable one (1) month extension period, subject to payment of P1,500.00.
6. CPC grantees who requested for Extension of Time to Submit Annual Report and failed to comply with the maximum one (1) month time extension period shall be charged the penalty of P10,000.00 for non-submission of Annual Report.
7. Non-submission of Annual Report for two (2) consecutive years shall be ground for cancellation of CPC and/or water permit, after due process.
8. Cancelled CPCs due to non-submission of Annual Report may apply for a new CPC, provided, that all arrears including applicable penalties shall be paid in full with NWRB.
In addition, the Annual Report of finances and operation of the waterworks systems to be submitted shall be certified by the General Manager and a duly licensed external auditor. If the Annual Report submitted is not duly signed by the aforementioned signatories and/or found with incomplete/erroneous entries upon review of the staff from the Systems and Accounts Section of the Water Utilities Division, it shall be returned and will be charged a penalty of P5,000.00. A maximum of one month will be given from the date of receipt of CPC grantee for the re-submission of the Annual Report. Request for Extension of Time to Submit Annual Report shall not be applicable in this case. Failure to comply shall be charged a penalty of P10,000.00 for non-submission.
CPC grantee may opt to seek the assistance of the staff from the Systems and Accounts Section of the Water Utilities Division in accomplishing the Annual Report Form, when necessary, as part of the services rendered for the Supervision and Regulation Fee being paid by the CPC grantee.