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Regardless the fact that it is officially part of Klungkung regency, its off-shore location - separated from the mainland by the sea - affected in deficiency of budget allocation for building construction and reconstruction of elementary schools funded from DAK (specially allocated fund). The problem comes from the fact that allocated budget for Nusa Penida is equal to allocated budget for the mainland part of the regency, whilst price of materials used for construction in Nusa Penida is significantly higher as it includes transportation cost to cross the strait. Consequently construction could not be completed through the finishing process.

Local government is forced to spend an additional 800 millions to finalize the projects on the island, otherwise they would be wasted out as all of constructed schools are not 100% completed and ready for utilization. Furthermore the funding framework does allow them to get DAK allocation for the second time. Head of Klungkung Office for The Minstry of Education, Nengah Wijana, explained that funding for the additional 800 millions is actually provided by the national government which previously was allocated to build his office, which lately has been canceled as the construction plan deviated the technical guideline of the Ministry of Finance.

Actually construction of Klungung Office of The Ministry for Education was about to commence. However deviation from the technical guideline brought a high risk, and therefore has been canceled. On the other hand, reallocation to completion of school building wis expected to improve quality of basic education. The technical guideline from The Minstry of Finance clearly directed that national funding could not be allocated for construction or reconstruction of buildings and supporting facilities of offices of regional government, it can only be allocated to increase education quality.

Cancellation of reconstruction forced the office to remain in the rotten old building. Broken roof and ceiling frighten the employees. When rain falls, the employees refuge to office of the village administration, which is located just across the street.