Too many project implementation units (PIUs) were operating, at both the central and regional level which implemented block grants. The project had seven PIUs at the central level (ILMU secretariat, BPK, Badan Pengawasan Keuangan dan Pembangunan or Financial Supervisory and Development Board/BPKP, Badan Pendidikan dan Pelatihan Keuangan or Ministry of Finance Training Agency/BPPK, Ministry of Home Affairs-Inspectorate General or MOHA-IG, MONE-IG, and Ministry of Finance-Inspectorate General or MOF- IG) and 50 PIUs at the regional level (Badan Pengawasan Daerah or Regional Inspectorate/BAWASDAs or local inspectorates in 50 districts and cities implemented the lump-sum capacity-building block grants). This created complexities due to limited project staff at the executing agency and ADB. These few project staff had to deal with a number of administrative issues, rather than with quality control. Thus, establishing simple implementation arrangements with adequate staff resources is important in ensuring smooth project implementation. In addition, strong commitment to the project from heads of regional government is required, as expressed through the availability of counterpart funding, minimal staff turnover, and continuity of PIU staff. The selection of participating regions should be aligned with the schedule of regional elections; selection should only be conducted after the new head of a regional government is appointed.
State Audit Reform Sector Development Program