Capacity development of minimum service standards costing and implementation

 68433 Capacity Developement of Minimum Service Standards (MSS) Costing and Implementation Draft Final Report November 2011 FINAL REPORT ii  CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION Table of Content Chapter 1: Introduction ..................................................................................................... 1 1.1. Background ......................................................................................................... 1 1.2. The program ....................................................................................................... 2 1.3. Duration of the Program ........................................................................................ 2 1.4. Expected Results ................................................................................................ 2 Chapter 2: MSS Concepts and Policies in Indonesia ....................................................... 3 2.1. Basic policy of MSS ............................................................................................ 3 2.2. MSS Regulations of Line Ministries .................................................................... 4 Chapter 3: Capacity Development of MSS Costing and Implementation ......................... 7 3.1. Supporting national government on MSS development and implementation ..... 7 3.1.1. Evaluation the status of MSS formula and technical guidelines in all sectors ...................................................................................................... 7 3.1.2. Costing of MSS: Instrument testing using local data .............................. 11 3.1.3. Produce an MSS costing manual for local governments ........................ 12 3.1.4. Distribute and ‘socialize’ the manual on MSS costing for selected sectors ................................................................................................................ 14 3.1.5. Monitor MSS implementation .................................................................. 16 3.1.6. Develop a strategy for rewarding kabupaten/kota that has demonstrated consistent and exceptional results in MSS implementation .................... 17 3.1.7. Examination of the relationship between the implementation of MSS and the attainment of the MDGs .................................................................... 18 3.1.8. Develop the capacity of the central and sub-national government personnel ................................................................................................ 23 3.2. Supporting local government on MSS costing and implementation .................. 26 3.2.1. Self Assessment of MSS implementation and achievement in selected sectors by a sample of local governments .............................................................. 26 3.2.2. Costing (the new) MSS .............................................................................. 34 3.2.3. Setting MSS targets and budgets ............................................................... 41 i FINAL REPORT 3.2.4. MSS Targets and Costing as basic information of programming in Planning and Budgeting Documents ...................................................................................... 45 Chapter 4: Challenges on MSS Implementation in Indonesia ........................................ 53 4.1. MSS technical and costing concept .................................................................. 53 4.2. MSS technical guidelines and costing manuals ................................................ 53 4.3. MSS socialization and basic services awareness in local governments ........... 53 4.4. MSS baseline in local governments .................................................................. 53 4.5. MSS costing funding ......................................................................................... 53 4.6. MSS Information used as basic programming in the planning documents ....... 54 Chapter 5: Summary, Lesson Learned, and Recommendations ................................... 55 5.1. Summary of program activities ............................................................................ 55 5.2. Lesson learned .................................................................................................... 63 5.3. Recommendations ................................................. Error! Bookmark not defined. List of Tables Table 1: MSS Issued and Guidelines ............................................................................... 4 Table 2: MSS’s basic services, number of indicators, and target year ............................ 5 Table 3: Inputs/comments for MSS indicators, technical guidelines and costing manuals ......................................................................................................................................... 8 Table 4: Status of MSS Costing Manual Supported by DSF .......................................... 13 Table 5: MSS Costing Socialization and Exercises ....................................................... 15 Table 6: The relationship between the implementation of MSS and the attainment of the MDGs ............................................................................................................................. 21 Table 7: MSS of Environmental Baseline Data of 2010 and target of 2011 – Kabupaten Bantul ............................................................................................................................. 27 Table 8: MSS Self Assessment Study in 6 regions ........................................................ 27 Table 9 :MSS Baseline Data in Pilot Regions ................................................................ 30 Table 10: Status of MSS Costing in Pilot Regions ......................................................... 35 Table 11: MSS Costing of Health in Pilot Regions ........................................................ 38 Table 12 : MSS Health costing per indicator per capita/object services in Pilot Regions ....................................................................................................................................... 39 ii  CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION Table 13: Status of MSS setting target in pilot regions .................................................. 42 Table 14: Setting Target of Education MSS of City of Mataram .................................... 43 Table 15: Status of MSS information as Basic programming in Planning Document in Pilot Regions .................................................................................................................. 46 Table 16: Supporting national government on MSS development and implementation 55 Table 17: Supporting concepts and tools for MSS implementation in pilot regions ....... 56 Table 18: MSS implementation Status in Pilot Regions by the end of September 2011 57 Table 19: Workshop, training, and other training in the National and Local Governments ....................................................................................................................................... 61 iii FINAL REPORT Executive Summary MSS implementation MSS prepared by the Government through the Line Ministries, and based on implemented by local governments. It is mandated by the regulation Government number 65 of 2005 concerning Guidelines for Preparation and Regulation number Implementation of Minimum Service Standard followed by Minister of 65 year 2005 Home Affairs No. 6 of 2007 on Technical Guidelines for Preparation and Determination of Minimum Service Standards, Regulation of the Minister of Home Affairs No. 79 of 2007 on Guidelines for Planning achievement of the Minimum Service Standards. MSS has issued for Until now, MSS has been compiled and published for 15 sectors: 15 sectors Health, Environment, Government Affairs of the Interior, Social Housing, Women Empowerment and Child Protection, Education, Public Works, Food Security, Employment, Family Planning and Welfare, Communication and Information, Arts, Transport and Capital Investment. Some of the 15 areas have been followed by financial planning activities of the MSS Technical Instructions. MSS implementation Implementation of Minimum Service Standards that are part of the also supported by improvement of public services has been clearly stated in Government other regulation as Regulation No. 20 of 2004 on the Government Work Plan, Government like MoHA Regulation Regulation No. 58 Year 2005 on Regional Financial Management, as number 54, year well as in MoHA Regulation. No 54 of 2010 on Procedures for 2010 on planning Formulation of the Regional Planning Document. MSS implementation mechanism and agenda as an integral part in the process ofplanning, budgeting, budget others implementation, reporting and accountability. MSS, on its application is expected to be implemented in phases taking into account the needs, priorities and local financial capacity, institutional and personnel areas . Government in the development of local capacity in the application of The MSS MSS, the Ministry of Home Affairs (MoHA) in collaboration with the implementation Decentralization Support Facility (DSF), to assist and facilitate program of MoHA is implementation of MSS in the program of Capacity Development for supported and in Costing and Implementation of MSS.. The program has supported the collaboration with Government and the Pilot Regions with the following objectives: (i) DSF for 4 main Strengthening the capacity of the MoHA to facilitate selected ministries objectives in MSS Costing (ii) improved capacity of Government and he Province in facilitating the implementation of MSS in District/Municipality; (iii) Improved capacity of selected local governments in the implementation of MSS in certain sectors; (iv) Analysed linking of MSS and MDGs indicator. iv  CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION The pilot regions are This program has been implemented in 18 pilot areas covering 5 in the 5 provinces, 5 provinces, namely Province DI Yogyakarta (Districts of Bantul , Sleman, Municipalities, and 8 Kulonprogo, Gunung Kidul, and the Municipalities of Yogyakarta); Districts Province Banten (District and Municipality of Tangerang); Province NTB (District East Lombok and Municipality of Mataram); Province West Kalimanta (Sanggau District and Municipality of Pontianak); and the Province Riau Islands (Bintan District and the Municipality of Tanjung Pinang). In this program, activities conducted are socialization,training and technical assistance to the implementation of financial planning, MSS integration into the regional development planning documents (and budgeting) from January to September 2011. In supporting this above activities, concepts, methods and instruments were developed. Implementation and Training Activities The training activities As of the end of November 2012, workshops and training have been is started with the implemented in pilot local governments and also in national government program orientation agencies related. As shown in Table 19 in chapter 5, the event until the MSS consisting of MSS Socialization and Program Introduction, MSS monitoring and Costing concept and application, Training of Trainer on MSS E-costing, evaluation in pilot MSS Database Management, MSS Target Setting, MSS correlation local government and with MDG, MSS programming in the planning process, Mid Term national government Evaluation, Regional Closing, until the National Workshop. The whole agencies events in total involving 3.464 participants from national government, local government’s pilot, non pilot local governments, local NGO, and some donors representatives. There are 5 events There are 5 events for national government counterparts refer to the for national MSS development and implementation issues which including 146 government agencies participants. There are also 7 events of MSS delivered to non pilot and 7 events regions which include 284 participants. The others are delivered for delivered for non pilot local government pilot both in the fields and Jakarta, including regions beside many workshop of MSS issues for Local Council (DPRD) in the Province of events delivered for DIY, Kota Yogyakarta, and Kabupaten Bantul within the program pilot regions period. The information of the workshop and training as shown in table 16, is excluding the event of technical assistances, which are delivered by DSF Regional Coordinators directly, in the local governments pilot. v FINAL REPORT Supporting local government on MSS costing and implementation All MSS concepts that The second activity is supporting local government on MSS developed in national level, costing and implementation, especially the pilot regions of the are tested and implemented program. As a result of development of concept, tools, and mechanism of MSS in the national government, those products in pilot regions are used and tested in the pilot regions in implement the MSS, especially their selected MSS in this program. It explained in the table 17 in Chapter 5 about what are the concepts and tools used, when they are finalized, where and when it tested and implemented in pilot regions, and when the final status of those concepts and tools which available and can be replicate for other local governments. The MSS concepts and tools Some of the concepts and tools are implemented in all pilot are implemented vary in pilot regions on selected sector of MSS limitedly, as like MSS e- regions depend on their costing instrument, MSS Capacity Development Need capacity and readiness Assessment (CDNA), and setting target. The concept and tools, as like the Steps of MSS programming in the planning process; the MSS monitoring and evaluation; and the MSS correlation with MDG; are implemented in selected regions on selected sectors. The Draft strategy of MSS result incentive for capacity building is still not reviewed in the national level, so it is not delivered to pilot regions. MSS website has developed since August 2011, and started to use by the pilot and non pilot regions because it contains MSS e-costing application, technical discussion and assistance on MSS implementation, also has the newest MSS regulation that issued by MoHA and related line ministries. This website will take over by MoHA as the end of DSF MSS program by the end of 2011. Results and status of activities implementation As of the end of September 2011, the status of implementation of the MSS in the pilot area as in Table 18 in chapter 5. Pilot regions are select and Under the DSF-MoHA program, the pilot regions have selected implement their main MSS their main MSS sectors to be assisted by DSF Team for the sectors under full assistancy implementation. The process starting from the program and MSS socialization, including how the process for implement from DSF team MSS. Then training and technical assistances delivered for MSS baseline management, MSS setting target, MSS Costing, MSS programming in the planning and budgeting document preparations, and MSS correlation with MDG Goals vi  CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION MSS socialization conducted As shown in Table 4 above, the flow of MSS implementation by DSF, MoHA and selected started from MSS socialization, then MSS baseline data Line Ministries is followed by management, until the MSS programming in the planning pilot regions for their other document preparation. The MSS socialization is doing by pilot technical units and staffs regions after the Road Show event that delivered by DSF. Pilot regions did the socialization to the work units. Most of them socialized the MSS information to all work units, except Kabupaten Lombok Timur, Province of Kepri, Kota Tanjung Pinang, and Kabupaten Bintan that only did it for the selected work units, especially which are related to the MSS program with DSF-Otda only. The result of MSS baseline MSS Baseline data management is also varied between pilot data management are regions. As informed in chapter 3, only Province of DIY and varying in the pilot regions. Kabupaten Bantul which are manage all sectors of MSS in their The most complete are in jurisdictions, while other pilot regions are varied from 2 MSS Province of DIY and sectors to 12. Kabupaten Bantul MSS Setting Target is done especially for the selected MSS that agreed in this program, while MSS Costing is done for selected MSS sectors more than the number of MSS on Setting Target, because some of the MSS Costing are only not continued with the MSS Costing estimation. MSS programming is most MSS programming in the planning documents has done mostly done in Work Unit’s annual in the Renja SKPD or work unit Annual Plan, and some pilot plan and some in their regions have done also for Renstra SKPD (Work Unit Strategic strategic Plan. Kota Plan) for Sleman, Bantul, and Mataram. Furthermore, some Mataram has programming it pilot regions has also programmed their MSS sectors in the on their Medium Term Plan, Local Government Annual Planning (Banten, Tangerang City while Banten and Tangerang and Kabupaten, and City of Mataram). Kota Mataram and are in their annual plan Province of Banten have also drafted MSS programming in their Medium Term Plan or RPJMD. In overall, pilot regions have a method, mechanism, and experience on how to implement MSS fully as part of their basic service programs and indicators. They are a step ahead than other local government in Indonesia although there are still some revision and justification needed on policy, strategy, and operational issues for the better implementation of MSS completely. vii FINAL REPORT 5.1. Lesson learned Within the MSS program implementation, both in National Government and Pilot Regions, there are some lesson that learned for a better MSS implementation in the future. Following the MSS process of implementation, the lesson learned are described as below; The mind set of MSS 1. The mind set of local government that MSS is a new program, implementation is not and need additional funding to implement it. MSS is only a as the first priority in measurement or indicator of basic services delivery which can local governments be achieved gradually and most of them has already been implemented and reported formally by local government. Actually, there is no need special or additional funding for MSS, as basic services program must be first prioritize for funding and allocation. DSF team has explained about this important undersntading to all pilot regions. Unfortunately, due to time time limit defined by central government, and different status for current achievement of all MSS indicators varied, therefore Central Government should be able to ensure the achievement of MSS by local government according to time bound of MSS has to be attained national government. 2. MSS Baseline data as the most important thing for MSS MSS setting target implementation, because it affects the next step of MSS must based on the MSS baseline data implementation as like setting target, costing, and and other supporting programming in the planning and budgeting process. Without macro socio- a good, complete, and accurate MSS baseline data, the next economy parameter process of MSS will become not fluent. To have a good MSS and database baseline data, regulation of MSS indicators must already have been done by local government, the know-how to get and formulate the MSS indicators, and formalize it as performance indicators of a work unit and national as general. DSF team has provided the MSS indicator Compilation Book to pilot regions, and together with Bappeda and Head of Work Unit socialize and assisted the MSS baseline data management to technical staff in manage their MSS baseline data. 3. In parallel with the MSS baseline data, the MSS target must be set based on the MSS baseline and need the estimation variable of each MSS indicator. The practice of the current viii  CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION setting target only on percentage increased from the previous performance without considering the potential object of what will receive or affect the basic services. DSF has delivered and trained the MSS Setting Target Tool, and it has used by pilot regions in setting their MSS target as medium term performance indicator of basic services and as based of MSS Costing Estimation, and for programming information in the planning and budgeting process. MSS Costing process 4. MSS Costing has not yet implemented in the beginning of pilot is simplified by MSS regions, although the Manual of MSS Costing is already e-costing instrument, issued by some line ministries. The complicated method and although the result is mechanism if compared with the conventional costing method still need verification (preparation, implementation, reporting, and evaluation) made and adjustment them not using the formal manual. The MSS e-costing process for final instrument, which is developed by DSF that refer to the MSS results Costing manual, is simplified the input of database of MSS and provided “menu