1. Initiating draft 19 April 2006
Regionalising BRR
Initiating draft 19 April 2006

2. Coverage of presentation
Introduction–what is regionalisation?
District offices and Regional Offices
Trigger points
Policy and Strategy Framework
Financial management from RK-preparation process to financial reporting
BRR reorganisation and establishing Joint Secretariats
Oversight Activities

3. Introduction What is regionalisation?
The process of moving from a centralised BRR in early 2006, to the signing off of BRR in 2009,
all BRR’s responsibilities are properly reported
district governments now carry out full responsibilities.
In the short run,
The establishment of Kabupaten-based Reconstruction Management, consistent with BRR’s policies and strategies and district government legitimate agendas.
Kabupaten Reconstruction Management (KRM) consists of joint planning, implementation and oversight of reconstruction.
To support KRM BRR will immediately establish regional and district offices to assure its accountability, and Bupati and Walikota will direct their regional governments to assure their accountability.
BRR regional managers and each Bupati and Walikota will develop MoUs that describe their complementary roles.
A joint secretariat between districts governments and BRR district offices will be responsible for KRM.

4. Purpose of regionalisation
The goal of regionalisation
Compliance in every district with BRR’s commission and mission in delivering rehabilitation and reconstruction of the lives of the people of NAD and Nias.
The objectives of regionalisation
To comply with financial management law in respect of reporting and putting assets on budgets
To fulfil the promise to be community-based
To fulfil the promise to build back better in particular to build for disaster risk reduction
To assure effective regional government after BRR stops operation in 2009.

5. District offices and regional offices (kantor daerah dan kantor regional)
BRR District offices (BRRDO) are responsible for all reconstruction efforts in each district
BRR Regional offices (BRRRO) in Banda Aceh, Lhokseumawe, Meulaboh, Kutacane, Nias

6. Types of district office
Combined with Regional Office under Regional Deputy in Banda Aceh, Lhokseumawe, Aceh Barat, and Nias
Combined with regional office under a Regional Director in Kutacane
Small operation under a manager in regions with small programs
Medium operation under a director in regions with large programs but close to regional office
Independent operation under a director in regions farther from regional office (such as Singkil, Calang, Simeulue

7. How does regionalisation affect stakeholders?
Local government becomes a key player
Combined planning, taking responsibility for asset management and improvement of public services
Major role in oversight through offices of camat
Other stakeholders
As in Nias, UN is expected to take the lead in regionalising decision-making and supporting district joint secretariats
All planning decisions (concept-note management) will be regionalised
Each district will recognise its main players by engaging them in decision-making processes, and will recognise all other stakeholders in the kecamatan reconstruction planning process.

8. Function of Deputies Regional Deputies
Negotiate MoUs with Bupati and Walikota
Provide operational support to district offices, including IREP, QA, SAC
Take action on behalf of Director, COO and sectoral deputies
Sectoral and Operational Support Deputies
Provide policy
Promote policy
Monitor compliance with policy
Operate NAD province programs through joint secretariat in Bappeda NAD.

9. Trigger Points 5 May Announcement
Pak Kuntoro will inform the public of BRR’s regionalisation program. From this date, BRR will select Regional Deputies and interim and/or permanent District Directors, who will establish their offices and joint secretariats, and oversee local joint planning.
Operational responsibilities of sectoral deputies continue until the third trigger point, so that operations are not affected until local offices and plans are in place
Agreement to Kecamatan Reconstruction Plans and Consolidated Work Plans (RK)
Target for draft agreement to KRPs: end of July. Once these plans are agreed, camats become active coordinators in the field.
August budget revision
BRRDO directors become accountable for all BRR activities in their region, with their own work plan and budget (RKA). BRR HQ changes apply in full.

10. Policy and Strategy Framework
General policy framework
Framework for BRR sectoral and Operational Support Deputies to move from being project and program oriented, to become portfolio policy-oriented.
This move is necessary so that deputies’ first priority is building back better, leaving the priority of expediting construction to regional and district offices.
The policy framework consists of:
objective-oriented policy (see next slide)
procedural policy (SOP etc) and
sectoral policy

11. Objective-oriented policy
Policy to comply with financial management law in respect of putting assets on budgets
Policy to fulfil the promise to be community-based
Participatory planning, Participatory detail design, Participatory supervision
Policy to fulfil the promise to build back better
Good design
Good towns, streets, buildings
Disaster Risk Reduction and Environmental Sustainability
Supporting Public Sector Management Reforms for more responsive public service
Proper construction
Competent builders and workers
Proper materials
Proper logistics management
Effective maintenance policies
1 year maintenance periods the norm
Full-term maintenance on critical infrastructure
Proper supervision
Compulsory IMB
Community-based oversight
Assurance and Insurance
Policy to leave behind effective regional government by 2009, though Public Sector Management Reform
Three-year partnership with the directly elected head of government
Nias and Nisel as vanguards

12. Planning and Financial management: From RK-preparation to financial reporting
Adoption of internationally acceptable cash reporting standards
By 2009 BRR will report consolidated accounts of all reconstruction
Implementing PP 2/2006 on grants
Off budget goes on budget, through BRR budget to APBD–this is the basis for developing real RK
Planning and budgeting
On and off budget, all identified in one consolidated work plan
Financially sustainable investments, districts can and will operate and maintain.
Proper treasury and accounting
Creation of Satker with checks and balances
Processes for transfer of assets
Accounting skills development and training
Proposed emphasis on accounting for reconstruction will require extensive training in BRR and Pemda, both for accounting offices and for implementation units who have additional accounting functions.

13. BRR reorganisation Community Local Government Partners in Nias
New approach to reorganisation focuses on how BRR leverages the capacity of external parties through its relationships with them
Community
Local Government
Partners in Nias
Construction industry
Wider donor community
Central Government
Provincial Government
Rest of BRR
Action Plan for Nias Islands Reconstruction provides a model for this approach

14. Organisation planning
Scope of organisational planning required before embarking on regionalisation
Tugas dan Fungsi for BRRRO and BRRDO
Reporting mechanisms and processes
New model for HQ
RRRO and BRRDO capacity building plan
Locating and developing regional offices
Assigning BRR staff
Establishing Joint Secretariats
MoU with each head of regional government
Pemda allocation of liaison staff and operational budget
Pemda allocation of space and facilities
UN and NGO partner agreements
Urgently required capacity building

15. Kecamatan Reconstruction Planning Process
Planning Methodology
2006 budget review
2005 spatial planning review (kabupaten, kecamatan planning)
Existing village planning
Concept Note review (kecamatan based review with stakeholders)
Mapping and demographic data
Consolidated mapping of who is doing what
Community participation processes
Preparation of Kecamatan Reconstruction Plans
Preparation of RKs and drafting budget revision
Organisation of coordination and enforcement powers
Dissemination of plan

16. Oversight of preparations
Regionalisation Preparations Teams
CORE TEAM
REVIEW TEAM 1
REVIEW TEAM 2
WORKING GROUP
Chair
Eddy
Willy
Owen Podger
Members
Sudirman
Ramli
Andy
Amin S
Iskandar
T K
Said Faisal
Fuad M
Bima
Bastian
Heads of regional offices
Boby
Ramoni
Fatimah
Kamal
Taqwa
David Kelaher
Neil Fowler
Support
Bill Nichol
Puteri Watson
Kate Clifford
David Antell

17. Start-up timetable
Process is organised around four-weekly Preparation Workshops and Meetings with Heads of Regions