Module-c community Based Financial Management

Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
10
MODULE 
– D
 
FINANCIAL MANAGEMENT FOR RURAL WATER SUPPLY 
SCHEMES 
 WASHCO/WB and role and tasks of main actors, with gender specific 
roles.
 affordability and willingness to pay, 
 Benefit cost analysis,
 Budgeting for Costs, before, during and after construction: Cost sharing 
creating a budget: Estimation of O&M costs,
 Choosing the type of financing system: Tariff setting, vending, community 
fund raising, credit schemes and revolving funds periodically, revenue 
collection system and flow of collected funds, establishing a payment 
system with the village, 
 Administration of funds registration of collection funds and payments, 
bookkeeping, opening and using an account use of, funds for other 
sectors activities, money plan control and reporting to the community, 
sanctions for non payments, remuneration of water committee staff, and, 
 Management Capacity: Decisions making process, problem solving 
capacity (in case of unexpected expenses or high inflation), information 
needed in order to make financial decisions, self monitoring, learning 
from experience, training needs, relationship with other actors. 
Step- 2: Source of 
Income 
This section looks at financial aspects of water scheme management, which is 
an essential part of sustainable O & M and management of water scheme 
with regardless of type of water scheme. 
In the community-based water scheme management, Cost Sharing for O & 
M of a water scheme is an important government policy. The community 
needs to pay for maintenance & repair of the water schemes and save the 
replacement of the equipment.