Session – D2: 3.4 Session – D2: Preparation of Annual Budget Introduction Preparation of an annual operating budget is the first step
WASHCO’s must
take to ensure that there is an accountable and transparent financial
management system in place and that the WASHCO operates on a financial
sustainable basis. There are various reasons why a budget is important:
1. An annual budget, prepared by the finance committee of the WASHCO, is
submitted to the management committee and subsequently to the
membership for approval.
2. Preparation of an annual budget requires information regarding expected
income and expenditure to run the water project, and requires planning
for O&M costs.
3. Expenditure should be kept within the approved budget according to each
budget line.
A budget helps to enhance transparency and accountability, quality of works,
service provision and efficiency and effectiveness.
A Budget is merely a plan expressed in quantitative (monetary) terms.
Its preparation involves setting targets for the revenues and
expenditures of the water supply service office.
The budget is prepared by management, usually during the last quarter of the
year, and should be approved by the Board before being endorsed to the
General Assembly/WASHCO and to the regulatory bodies like RWB, ZWO or
WWO.
Ministry of Water, Irrigation and Electricity Operation and Maintenance Management Manual Training Module - D Community Based Financial Management DEMEWOZ CONSULTANCY
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MODULE – D FINANCIAL MANAGEMENT FOR RURAL WATER SUPPLY
