Module-c community Based Financial Management

Maintenance is your job! When a part wears out, you have to buy a new 
part. When the facility breaks down, you have to fix it themselves or pay 
service provider to fix it. 
To take measures promptly when the water scheme gets broken down, you 
need to collect money in advance. With enough financial resource, you can 
buy spare parts and pay for a repair works and other necessary expenses. 
Some of this money should be used to buy spare parts in advance. 
Before starting concrete financial management tasks, you need to 
understand about the O & M cost and how to cover O & M cost. 
 
 
 

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Ministry of Water, Irrigation and Electricity 
 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
11
MODULE 
– D
 
FINANCIAL MANAGEMENT FOR RURAL WATER SUPPLY 
SCHEMES 
Sources of Income: 
 
User fee which shall be paid to cover the project cost or running and 
maintenance cost every week / two weeks /month / year in the form of 
cash and/or kind. 
 
Volunteer contribution from beneficiary community or outsiders in the form 
of cash and/or kind. 
 
The committee shall arrange fund raising activity to collect money. In this 
case different systems for special contribution shall be arranged including 
labour and locally available material that could be converted to money. 
 
Support of money from government and non-government organization in 
cases of a considerable problem encountered to run the activity. 
 
Revolving fund for spare parts which shall be availed from donor or 
government agencies.