GOVERNMENT REGULATION NO. 105/2000 DATED NOVEMBER 10, 2000
ON REGIONAL FINANCIAL ACCOUNTABILITY AND MANAGEMENT
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering :
That in order to implement the provisions in Article 86 of Law No. 22/1999 on the Regional Administration and Article 26 of Law No. 25/1999 on the Financial Equilibrium between the Central Government and the Regional Administration, it is necessary to stipulate a Government Regulation on the Regional Financial Accountability and Management;
In view of :
1. Article 5 paragraph 2 of the 1945 Constitution as already amended by the Second Amendment to the 1945 Constitution;
2. Law No. 22/1999 on the Regional Administration (Statute Book No. 60/1999, Supplement to Statute Book No. 3839);
3. Law No. 25/1999 on the Financial Equilibrium between the Central Government and the Regional Administration (Statute Book No. 70/1999, Supplement to Statute Book No. 3848).
D E C I D E S :
To Stipulate :
GOVERNMENT REGULATION ON REGIONAL FINANCIAL ACCOUNTABILITY AND MANAGEMENT.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Government Regulation referred to as :
1. Regional Finance shall be all Regional rights and obligations in the framework of implementing Regional administration which can be valued by money including all forms of assets which are related to the relevant Regional rights and obligations, in the context of the Regional Budget.
2. The Regional Budget of Income and Expenditures, which is hereinafter abbreviated to APBD, shall be a Regional annual financial plan, which is stipulated on the basis of the Regional Regulation on APBD.
3. The Official who Manages Regional Finance shall be the Regional official and or employee who is given certain authority to manage the Regional Finance in the framework of Regional financial management and based on the existing regulations.
5. Regional General Treasurer shall be the official who is given the authority by the Holder of Gene ral Power for Regional Financial Management to manage the revenue and expenses of the Regional Treasury and all forms of other Regional assets.
6. The User of Regional Budget shall be the official holding the power to realize the Regional Expenditure.
7. Regional Treasury shall be the place for keeping Regional funds which is determined by the Regional General Treasurer.
8. Holder of Treasury shall be anyone who is appointed and assigned to carry out treasury activities in the framework of carrying out the APBD in each working unit of the Regional Budget User.
9. Reserve Funds shall be the funds which are put aside to meet the needs which require relatively quite big funds which cannot be borne in a fiscal year.
10. Revenue shall be all revenues of the Regional Treasury in a certain fiscal year period.
11. Regional Expenses shall be all expenses of the Regional Treasury in a certain fiscal year period.
12. Regional Income shall be all revenues of the Regional Treasury in a certain fiscal year period, which becomes the right of the relevant Region.
13. Regional Expenditure shall be all expenses of the Regional Treasury in a certain fiscal year period, which becomes the burden of the relevant Region.
14. Financing shall be the Regional Financial transaction which is intended to cover the difference between the Regional Income and the Regional Expenditure.
15. Surplus Balance of Last Year's APBD Calculation shall be the surplus of Regional income realization over Regional expenditure realization and it shall constitute a component of financing.
16. Regional Goods shall be all goods owned by the Region which originate form the purchase with the funds which wholly or partially are derived from the APBD or other legal acquisitions.
17. Regional Debts shall be the amount which shall be paid by Region as a consequence of delivery of money, goods and or other services to the Region or other consequences based on the existing regulations.
18. Regional Claims shall be the amount which becomes the right of the Region or the obligation of another party to the Region as a consequences of delivery of money, goods and or services by Region or other consequences based on the existing regulations.
19. Regional Loans shall be all transactions which cause the Region to receive from another party a sum of money or benefit of money worth, so that the Region is charged with the obligation to repay, excluding the short term credit which generally takes place in the trade.
20. Regional Apparatus shall be the person/institution in the Regional Administration/who which is responsible to the Regional Head and assists the Regional Head in carrying out the administration comprising the regional secretariat, regional services and technical regional institutions, districts, and subdistricts in accordance with Regional needs.
CHAPTER II
First Part
Official Who Manages Regional Finance Article 2
1. The Regional Head is the Holder of General Power for Regional Financial Management.
2. In his capacity as the Official who Holds General Power for Regional Financial Management as referred to in paragraph 1, the Regional Head delegates his authority partially or wholly to the Regional Secretary and or the Apparatus Who Manages Regional Finance.
Article 3
1. The Regional Head first stipulates the Officials Who Manage Regional Finance by a letter of decision in order to be able to carry out the budget.
2. Further stipulations on the duties and functions of each Official Who Manages Regional Finance are stipulated in a Regional Regulation.
3. The Treasury Holder shall not hold the post as the Official Who Manages Finance of other Regions.
Second Part
General Principles of Regional Financial Management
Article 4
The Regional Financial Management is carried out in an orderly, law-abiding, efficient, effective, transparent and responsible manner by taking into account the principles of justice and propriety.
Article 5
The APBD is the basis for the Regional Financial Management in a certain fiscal year.
Article 6
The APBD fiscal year is the same as the fiscal year of the State Budget Income and Expenditure.
Article 7
1. All Regional Revenues and Regional Expenses in the framework of decentralization are recorded and managed in the APBD.
2. The APBD, Amendment to APBD, and Calculation of APBD are stipulated by a Regional Regulation and they constitute Regional documents.
Article 8
The APBD is prepared by the approach of performance.
Article 9
In preparing the APBD, the budgeting of expenditures shall be supported by the certainty that the revenues in adequate amounts are available.
1. The total income budgeted in the APBD is a rationally measured estimate which can be achieved for any source of income.
2. The total expenditure budgeted in the APBD is the highest limit for any type of expenditure.
3. Any official shall not take actions which result in the expenses charged to the APBD, if there is no adequate budget or if there is no budget to finance the expenses.
4. The estimated APBD Calculation Surplus Balance of Last Year is booked in the initial balance of the APBD of the subsequent year, while the realization of the Excessive Balance of Last Year's APBD Calculation is recorded as the initial balance in the APBD amendment.
Article 11
All Regional financial transactions, both Regional Revenues and Regional Expenses are carried out through the Regional Treasury.
Article 12
1. The budget to finance unexpected expenses is provided in a separate budget section.
2. The expenses which are charged to the unexpected expenses are intended to handle natural disasters, social disasters and other unexpected expenses which are considerably needed to carry out the authority of the Regional Administration.
Article 13
1. Regions can set up Reserve Funds to finance the needs which cannot be borne in a fiscal year.
2. The Reserve Funds are set up by annual contributions from APBD revenues, apart from the Special Allocation Funds, Regional Loans and Emergency Funds.
Third Part
Arrangement of Regional Financial Management
Article 14
1. The provisions on the principles of Regional Financial Management are stipulated by a Regional Regulation in accordance with the existing regulations.
2. The Regional Regulation as referred to in paragraph 1 stipulates the following matters : a. framework and outlines of procedures for preparation of APBD;
b. financial authority of the Regional Head and DPRD; c. principles of treasury management;
d. principles of management of Regional Expenses which have been budgeted; e. procedures for procurement of goods and services;
f. procedures for seeking Regional Loans; g. procedures for financial accountability;
h. and other matters involving the management of Regional Finance.
3. The system and procedures for management of Regional Finance are stipulated by a Decision of the Regional Head in accordance with the Regional Regulation as referred to in paragraph 1.
CHAPTER III
PREPARATION AND STIPULATION OF APBD First Part
Structure of APBD
Article 15
1. The structure of APBD is an integral unit which consists of : a. Regional Income;
b. Regional Expenditure; c. Financing.
2. The Surplus Balance of the Regional Income over the Regional Expenditure is called budget surplus 3. The Deficit balance of the Regional Income over the Regional Expenditure is called budget deficit 4. The total Financing is the same as the total surplus/deficit of budget.
Article 16
1. The Regional Income as referred to in Article 15 paragraph 1 letter a is detailed by groups of income and types of income
2. The Regional Expenditure as referred to in Article 15 paragraph 1 letter b is detailed by organizations, functions and types of expenditure.
3. The financing as referred to in Article 15 paragraph 1 letter c is detailed by sources of financing.
Article 17
The budget to finance the unexpected expenses as referred to in Article 12 paragraph 2 is provided in the budget section of unexpected expenses.
Article 18
1. The budgeting of Reserve Funds as referred to in Article 13 is allocated from APBD revenue sources.
2. All Reserve Funds revenue sources as referred to in paragraph 1 and all expenses at the expense of the Reserve Funds are recorded and managed in the APBD.
3. The expenses to cover the requirement as stipulated in the Regional Regulation on the establishment of Reserve Funds is charged to the account of Reserve Funds.
4. The position of the Reserve Funds is reported as an inseparable part of the APBD accountability report.
Article 19
1. If the Regional Income is anticipated to be smaller than the expenditure plan, the Region can seek loans. 2. The Regional Administration can seek other funding resources through cooperation with other parties with
the principles of mutual benefit.
3. The Regional Administration can carry out investment in the form of capital participation, deposits or other investment forms as long as they can promote public service and do not affect the liquidity of the Regional Administration.
4. Other funding resources and investments of the Regional Administration as referred to in paragraphs 2 and 3 are stipulated by a Regional Regulation.
Second Part
Process of APBD Preparation
Article 20
1. The APBD which is prepared by the approach of performance as referred to in Article 8 contains : a. the expected target in accordance with the function of expenditure;
b. the expected standard of service and the estimated component unit cost of the relevant activity;
c. part of the APBD income which finances the expenditure of general administration, operation and maintenance, and of capital/development.
2. To assess the financial performance of the Regional Administration, the budget analysis standard, benchmark of performance and cost standard are developed.
Article 21
In preparing the APBD draft, the Regional Administration and the DPRD jointly formulate the direction and general policy of the APBD.
Based on the direction and general policy of the APBD as referred to in paragraph 1, the Regional Administration prepares strategies and priorities of APBD.
Based on the strategies and priorities of APBD as referred to in paragraph 2 and by taking into account the economic and financial conditions of Regions, the Regional Administration prepares the APBD draft.
Third Part
Process of APBD Stipulation
Article 22
1. The Regional Head submits the APBD draft to the DPRD for approval
2. If the APBD draft is rejected by the DPRD, the Regional Administration shall revise the said draft of APBD.
3. The revision of the APBD draft as referred to in paragraph 2 shall be re-submitted to the DPRD.
4. If the APBD draft as referred to in paragraph 3 is rejected by the DPRD, the Regional Administration uses of the APBD of previous year as the basis for processing Regional Finance.
Fourth Part APBD Amendment
Article 23
1. The APBD Amendment is carried out in connection with :
a. Policies of the Central Government and Regional Administration which are strategic;
b. Adjustments resulting from the failure to achieve the target of Regional Revenue which has been set; c. Emergence of urgent needs.
2. The APBD amendment is stipulated at the latest 3 (three) months before a certain fiscal year ends.
CHAPTER IV
Revenues and Expenses of APBD
Article 24
1. Any Regional Apparatus which has the duty of collecting or receiving Regional Income shall carry out the intensification of collection of the income.
2. All benefits in the form of money, such as commissions, rabates, discounts, interests or other names resulting from sale and or procurement of goods and or services and from deposits and or placement of Regional money constitute Regional Income.
3. The Regional Income is fully and punctually paid to the Regional Treasury in accordance with the existing regulations.
Article 25
Actions resulting in the expenses being borne by the APBD cannot be carried out before being stipulated in the Regional Regulation on APBD and placed in the Regional Gazette.
Article 26
For any expense borne by the APBD, an Authorization Decision Letter or other letters of decision which are equivalent to it are issued by the authorized official.
Article 27
1. Any charge to APBD shall be supported by complete and legal evidences on the rights acquired by the collecting party.
2. Anyone provided with the authority to sign and or legalize the evidence letter serving the basis for expenses on the charged to APBD is responsible for the truth and consequence of the use of the evidence.
Article 28
1. The User of Regional Budget submits the Payment Request Letter to carry out the expenses as referred to in Article 27 paragraph 2.
2. The payment at the expense of the APBD is made by the Letter of Order to pay. 3. The Regional General Treasurer pays on the basis of the Letter of Order to pay.
Article 29
1. Salaries of Regional Civil Servants are borne by the APBD
2. Regional Civil Servants are provided with additional income based on objective considerations by taking into account the capacity of Regional Finance and obtaining the approval of the DPRD in accordance with the existing regulations
3. The salaries of the Regional Civil Servants who are employed to support the Regional State-owned Enterprises (BUMDs) or other business units are borne by the relevant BUMD or Business Unit.
4. The payments for pensions of the Regional Civil Servants who are appointed by the Regional Administration are the responsibilities of Regions.
The use of the unexpected budget as referred to in Article 17 is notified to the DPRD.
Second Part
Regional Goods Management
Article 31
1. The Regional Head regulates the management of Regional Goods.
2. The Recording of Regional Goods is carried out in accordance with the accountancy standard of the Regional Administration.
3. The Regional Secretary, Secretary of DPRD and heads of services/technical institutions are the users and managers of goods for the Regional secretariat/DPRD secretariat/Regional services/Regional technical institutions they head.
Article 32
1. The procurement of goods and or services can only be charged to the APBD, as long as the goods and or services are needed to carry out the activities in accordance with the main duties and functions of the relevant Regional Apparatus.
2. The procurement of goods and services at the expense of the APBD is further stipulated by a Decision of the Regional Head.
Article 33
The user of goods shall manage Regional Goods in accordance with the existing regulations.
Article 34
In the case that the management of Regional goods earns revenues, all of the revenues are wholly and directly paid to the Regional Treasury.
Third Part
Financial Accountancy of Regional Administration
Article 35
The administration and accountability of Regional Finance adhere to the existing financial accountancy standard of the regional administration.
CHAPTER V APBD CALCULATION
Article 36
1. At the end of each fiscal year the Regional Administration shall make calculation of APBD containing the ratio between realization of APBD and the APBD.
2. The APBD calculation shall calculate the differences between the realization of revenue and the revenue budget and the realization of expenses and the expenses budget by providing the reasons.
CHAPTER VI
Article 37
1. The Regional Administration submits quarterly reports on the implementation of APBD to DPRD.
2. The quarterly reports as referred to in paragraph 1 are submitted at the latest 1 (one) month after the end of the relevant quarter.
Article 38
The Regional Head prepares Regional Financial accountability reports consisting of : a. APBD calculation reports;
b. APBD Calculation Notes; c. Cash Flow Reports; d. Regional Balance Sheet.
Article 39
1. Any Official who Manages Regional Finance periodically prepares financial accountability reports.
2. The system and procedures for the accountability as referred to in paragraph 1 are stipulated by a Decision of the Regional Head.
CHPTER VII
CONTROL OF REGIONAL FINANCIAL MANAGEMENT
Article 40
This control over the implementation of APBD is exercised by DPRD.
Article 41
1. The Regional Regulation on APBD, APBD Amendment and Provincial APBD Calculation are submitted to the Minister of Home Affairs and Regional Autonomy at the latest 15 (fifteen) days after being stipulated. 2. The Regional Regulation on APBD, APBD Amendment and Regency/City APBD Calculation are submitted
to Governor at the latest 15 (fifteen) days after being stipulates.
Article 42
1. The Regional Head appoints the official who functions to exercise internal control over the management of Regional Finance
2. The official who exercises control over Regional Financial management as referred to in paragraph 1 shall not hold another post in the Regional administration
3. The official who exercises control over Regional Financial management as referred to in paragraph 1 reports the outcome of the control to the Regional Head.
CHAPTER VIII
REGIONAL FINANCIAL AUDIT
Article 43
The audit of the implementation, management and accountability of Regional Finance is carried out in accordance with the existing regulations.
REGIONAL FINANCIAL LOSSES
Article 44
1. All Regional losses both direct and indirect resulting from actions which violate law or negligence shall be compensated by the people who commit the violation or carelessness.
2. Any Regional apparatus shall demand compensations for the loss as soon after finding out that in the Regional Apparatus, losses are inflicted by the actions of whatever parties.
Article 45
1. The Regional Head shall carry out the compensation claim for any loss resulting from the actions which violate law or negligence of the Official Who Manages the Regional Finance
2. The settlement of the loss as referred to in paragraph 1 is carried out in accordance with the existing regulations.
Article 46
Further provisions on the compensation claim are stipulated by a Regional Regulation
CHAPTER X CLOSING PROVISIONS
Article 47
At the time this Government Regulation takes effect :
1. The Government Regulation No. 5/1975 on the Processing, Accountability and Control of Regional Finance (Statute Book No. 5/1975);
2. The Government Regulation No. 6/1975 on the Method of Preparing the Regional Budget, Administration of Regional Finance and Preparation of APBD Calculation (Statute Book No. 6/1975);
are declared void
Article 48
At the time this Government Regulation takes effect, all regulations implementing the Government Regulation No. 5/1975 on the Processing, Accountability and Control of Regional Finance and the Government Regulation No. 6/1975 on the Method of Preparing the Regional Budget, Administration of Regional Finance and Preparation of APBD Calculation are still valid as long as they are not against and or have not been replaced with a new regulation based on this Government Regulation.
Article 49
This Government Regulation shall come into force as from January 1, 2001.
For public cognizance, this Government Regulation shall be announced by publishing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta on November 10, 2000
sgd.
ABDURRAHMAN WAHID
Promulgated in Jakarta on November 2000
THE STATE SECRETARY, sgd.
DJOHAN EFENDI
ELUCIDATION ON
GOVERNMENT REGULATION NO. 105/2000
ON REGIONAL FINANCIAL ACCOUNTABILITY AND MANAGEMENT
GENERAL
Based on Law No. 22/1999 on the Regional Administration and Law No. 25/1999 on the Financial Equilibrium between the Central Government and the Regional Administration, the Central Government and the Regional Administration constitute an inseparable entity in carrying out the administration and public service. The major mission of both laws is not only the desire to transfer the authority and financing from the Central Government to the Regional Administration, but more importantly the desire to improve the efficiency and effectiveness of Regional financial resources management in order to improve people's welfare and public service. For that purpose, the spirit of decentralization, democratization, transparency, and accountability becomes very dominant in the process of carrying out the administration in general, and the process of Regional financial management in particular.
In the framework of the system of carrying out the administration, the system of financial management is basically the sub system of the administration itself. As a state financial system as referred to in Article 23 paragraph 5 of the 1945 Constitution, the aspect of Regional financial management is also a sub system which is stipulated in Law No. 22/1999 on the Regional Administration particularly Article 78 up to Article 86. Article 80 stipulates that the financial equilibrium between the Central Government and the Regional Administration is stipulated by a law. By that arrangement, it is expected that there will be more transparent and accountable equilibrium in the distribution of authority, financing and the formulation of a better system of financial management to realize the implementation of Regional autonomy in an optimal way in accordance with the dynamics and the demands of a developing society.
In line with those matters, the Regional autonomy cannot certainly be seen only from the amount of Balance Funds Regions will obtain but also the extent to which the instrument or the system of Regional Financial management is able to provide financial management which is fairer, more rational, more transparent, participative and responsible as referred to in both laws.
Specifically Law No. 25/1999 on the Financial Equilibrium between the Central Government and the Regional Administration has stipulated a clear basis for management and accountability of Regional finance, among others by providing freedom in stipulating products the following arrangements :
Provisions on principles of Regional Finance are stipulated by a Regional Regulation;
Systems and procedures for management of Regional Finance are stipulated by a Decision of the Regional Head in accordance with the relevant Regional Regulation
The Regional Head submits accountability reports to the DPRD concerning the management of Regional Finance and Regional financial performance from the aspects of financial efficiency and effectiveness;
The Regional Financial accountability reports constitute Regional documents, so that the public can be informed of them.
ARTICLE BY ARTICLE Article 1
Sufficiently clear
Article 2
Paragraph 1
The general power for Regional Financial management includes the function of general planning, the function of preparing budgets, the function of collecting income, the function of the Regional general treasury, the function of using budgets, as well as the function of control and accountability.
Paragraph 2
In the framework of efficiency and effectiveness of Regional Financial management, the Regional Head delegates his authority partially or wholly to the Regional financial management apparatus;
The delegated authority minimally constitutes the authority which relates to the duties as the Regional General Treasurer.
The Regional Secretary or the Regional financial management apparatus are responsible to the Holder of General Power for Regional Financial Management.
Article 3
Paragraph 1
The stipulation of the Official who Manages Regional Finance is one of the requirements for implementing the Budget. The Officials who Manages Regional Finance, covers e.g. the Regional General Treasurer, Budget User and Treasury Holder.
Paragraphs 2 and 3 Sufficiently clear
Article 4
Sufficiently clear
Article 5
This provision means that APBD is the plan for implementing all Regional Income and all Regional Expenditure in the framework of implementing decentralization in a certain fiscal year. In that way, the collection of all Regional Revenues in the framework of implementing decentralization is aimed at meeting the target stipulated in the APBD. All Regional Expenses and commitments which create burdens on Regions in the framework of implementing the decentralization are carried out in accordance with the quantity and target stipulated in the APBD, so that APBD becomes the basis for the control, audit, and the supervision of Regional Finance.
Article 6
Sufficiently clear
Article 7
Paragraph 1
All Regional Revenues and Regional Expenses which are not related to the implementation of deconcentration or Supporting Duties are the revenues and expenses in the framework of implementing decentralization.
Paragraph 2
Article 8
The budget with the performance approach is a system of budgeting which priorities the effort to achieve work results or the output of cost allocation planning or input stipulated.
Article 9
The provision in this Article means that Regions shall not budget expenses without prior certainty about availability of funding resources and it encourages Regions to improve their expenditure efficiency.
Articles 10 and 11 Sufficiently clear
Article 12
Paragraph 1
The unexpected expenses budget is managed by the Regional General Treasurer. Paragraph 2
Sufficiently clear
Article 13
Paragraph 1
Sufficiently clear Paragraph 2
The Reserve Funds are used to finance such needs as rehabilitation of infrastructures, city beauty, or conservation of the environment, so that the cost of rehabilitation is charged in several fiscal years.
Article 14
Paragraph 1
Sufficiently clear Paragraph 2
Other matters as referred to in letter h include : a. preparation of multi-year budget plans; b. procedures for shifting budgets;
c. system of administration of Regional Finance and the process of preparing APBD calculations;
d. procedures for using budgets for unexpected expenses;
e. process for appointing Officials who Manage Regional Finance;
f. schedule and outline of the substance of reports on the implementation of APBD to DPRD; g. approval of Regional Finance investment;
h. process of APBD amendment; and i. process of depreciating Regional assets Paragraphs 3 and 4
Sufficiently clear
Article 15
Paragraph 1
In this paragraph an integral unit means that the APBD document is a summary of all types of income, types of expenditure and their funding resources.
Paragraphs 2 up to 4 Sufficiently clear
Article 16
The groups of income cover the Regional Original Income, Equilibrium Funds and other legal incomes.
The types of incomes include Regional tax, Regional levies, General Allocation Funds and Special Allocation Funds.
Paragraph 2
The expenditure by organization is an integral unit of expenditure users, such as DPRD and the secretariat of DPRD, the Regional Head and Deputy Regional Head, Regional secretariat, as well as Regional services and other Regional technical institutions.
The functions of expenditures include education, health and other functions.
The type of expenditures include those for of employees, goods, maintenance, official travel and of capital/development.
Paragraph 3
The funding resources which are Regional Revenues include surplus of budget calculation of last year, revenues of loans and bonds as well as the revenues of Regional asset sale which is separated.
The financing sources which are expenses include payment of principal debt.
Article 17
Sufficiently clear
Article 18
Paragraph 1
Excepted from the APBD revenue sources in this paragraph are the Special Allocation Funds, Emergency Funds and Regional Loans. The expenses which will be set aside for the establishment of the Reserve Funds are mentioned in the expenditure budget.
Paragraph 2
"Record and managed in the APBD" means being entered in a separate account which shows the initial balance, each transaction of revenue and expenses and the balance at the end of the fiscal year.
Paragraph 3
Sufficiently clear Paragraph 4
This final balance of the Reserve Funds in the year is entered as the initial balance in the subsequent fiscal year and at the same time added to the Reserve Funds of the subsequent year.
Article 19
Paragraph 1
The Regional loans are mentioned in the Financial budget. The funds originating from the Regional Loans are used to finance the activities as referred to in the existing regulations which are valid for Regional Loans.
Paragraph 2
If the Regional Administration in the framework of constructing public facilities does not have any funds the existing funds are not adequate, Regions can seek alternatives of long term funding resources through cooperation with other parties, including the public.
The cooperation which has financial effects on APBD is governed by a Regional Regulation. Paragraph 3
The investment in the form of capital participation means the participation of Regional capital which is carried out through Regional corporations.
Deposits mean time deposits in a sound bank.
In the framework of the budgeting, the investment is mentioned in the financing budget. Paragraphs 4 and 5
Article 20
Paragraph 1
The description serves as an indicator and or a performance target of the Regional Administration, which becomes a reference for the Accountability Report on Regional performance.
Letter a
Sufficiently clear Letter b
The service standard can be gradually developed and shall be sustainably conducted. Letter c
Sufficiently clear Paragraph 2
The expenditure budget analysis standard means the assessment of reasonability of the workload and the cost of an activity.
The performance benchmark means the criteria for success which us achieved in each unit of organization of the Regional apparatus.
The standard of cost means the unit price of cost which is valid for each Region.
Articles 21 and 22 Sufficiently clear
Article 23
Paragraph 1
Letters a and b
Sufficiently clear Letter c
In this provision the urgent need is meant to overcome damage to the facilities and infrastructures resulting from natural disasters and social disasters which are not yet or not adequately provided with the budget of unexpected expenses.
Paragraph 2
A period of 3 (three) months is provided in order that the implementation can be completed at the end of a certain fiscal year.
Article 24
Paragraph 1
Sufficiently clear Paragraph 2
All benefits in the form of money are entered as the Regional Income and budgeted in APBD. Paragraph 3
Sufficiently clear
Article 25
The said actions do not include the issuance of the decree which relates to the personnel affair, the formation of which has been previously stipulated and the implementation of the budget if the APBD draft is not or has not yet been approved by DPRD as referred to in Article 22.
Article 26
The Letter of Authorization Decision is a document of APBD which serves as a basis for spending at the expense of APBD.
Paragraph 1
The said evidence includes bills, invoices, letters of receipt of goods agreements on procurement of goods and services.
Paragraph 2
Sufficiently clear
Article 28
Paragraph 1
Sufficiently clear Paragraph 2
The order to pay is a document of APBD which serves as a basis for making payments at the expense of APBD. The Order to pay is stipulated by the Regional General Treasurer or the official who is stipulated by the Regional General Treasurer.
Paragraph 3
The Regional General Treasurer can stipulate the official which perform the duty of making payment on the basis of the Order to Pay.
Article 29
Paragraph 1
Sufficiently clear Paragraph 2
The additional income is provided in the framework of improving the welfare of employees on the basis if the performance, place of duty and scarcity of professions.
Paragraph 3
Sufficiently clear Paragraph 4
The Regional Civil Servants in this paragraph are the Regional Civil Servants who were appointed by the Regional Administration as from January 1, 2001.
Article 30
Sufficiently clear
Article 31
Paragraph 1
The management of Regional goods covers planning, determination of needs, budgeting, procurement, storage, distribution, maintenance, depreciation and control.
Paragraph 2
The recording based on the accountancy standard of the regional government is gradually carried out in accordance with the conditions of each Region.
Paragraph 3
Sufficiently clear
Articles 32 up to 34 Sufficiently clear
Article 35
The financial accountancy standard of the regional administration serves as guidelines or principles which govern the accountancy treatment, guaranteeing consistency in financial reporting.
As long as the financial accountancy standard of the regional administration is not yet prepared, Regions can use the standard currently used.
Article 36
Paragraph 1
Sufficiently clear Paragraph 2
The reasons shall specify whether the differences are caused by controlled or uncontrolled factors.
Article 37
Paragraph 1
The said reports contain the progress of implementation of APBD per quarter. Paragraph 2
Sufficiently clear
Article 38 Letter a
Sufficiently clear Letter b
The APBD calculation notes contain the summaries of on the realization of Regional Income, Regional Expenditure and Financing as well as Regional financial performance covering among others :
a. the Regional performance in the framework of implementing the program which is planned in the APBD of the relevant fiscal year;
b. service performance achieved;
c. part of the APBD expenditure which is used to finance the general administration, operational activities and maintenance as well as capital/development expenditure for the Regional apparatus and public service;
d. part of APBD expenditure which is used for the DPRD budget, including the secretariat of DPRD;
e. position of Reserve Funds. Letter c
Sufficiently clear Letter d
The Regional balance sheet is gradually prepared the regional administration financial accountancy standard in accordance with the conditions of each regional administration.
Article 39
Sufficiently clear
Article 40
In this paragraph the said control is not examination, but the control which is further aimed at guaranteeing the achievement of targets which have been stipulated in APBD.
Article 41
Paragraph 1
Sufficiently clear Paragraph 2
The Regional Regulation on Regency/City APBD is submitted to the Governor in his capacity as the representative of the Central Government.
Article 42
The internal control of Regional financial management is aimed at safeguarding efficiency, effectiveness and economy in the management of Regional Finance on behalf of the Regional Head.
The internal control of Regional Financial management, in addition to controlling the cash/money affairs, it takes into account the implementation of programs, activities and management by the Regional Administration from the aspects of efficiency and effectiveness, which can affect the capacity and usefulness of the Regional Finance.
Paragraph 2
Sufficiently clear Paragraph 3
If the Regional Secretary or the head of the Regional Financial management apparatus carries out promotion and supervision in the planning and implementation of work of the financial internal control official, the financial internal control official remains obliged to report the outcome of his control to the Regional Head.
Article 43
Sufficiently clear
Article 44
Paragraph 1
In this paragraph the Regional losses are concrete ones and their quantity is definite. The Regional losses include payments from Regions to the people or statutory bodies that are not entitled to them. Therefore, anyone or statutory body receiving such a payment is considered having committed actions which are against the law.
Paragraph 2
Sufficiently clear
Articles 45 up to 49 Sufficiently clear
