Step - 4: Preparation of WASHCO ’s own annual budget The facilitator should assist the WASHCO to draw up the appropriate form
using the form in Attachment here. This should be modified depending on the
type of technology and whether revenue and costs are likely to fluctuate
during the year.
This means the groups will need details from the books of accounts. If the
project is new and does not have any books of accounts, then the participants
should estimate actual costs.
Facilitator can reflect with participants on the quality of the books of accounts
for the purposes of providing information on WASHCO income and expenses.
One group should present its draft WASHCO budget, explaining how it has
estimated the figures.
Allow discussion so that each item is agreed as the participants move through
the budget lines.
Once the budget has been prepared, the facilitator should initiate a discussion
on the implications of the budget by asking the following questions:
Is the revenue sufficient to meet the expected operating expenses in
every month?
Is the revenue sufficient to meet the expected capital costs?
If no: o What will happen to the project if revenue is less than expenditures?
o What can WASHCO do to raise revenue or reduce expenditures so
that revenue is sufficient to cover expenses?
If yes: o What is done with the surplus?
o Should the WUA be planning for improvements to the water project?
o How robust is the surplus
– revenue may fluctuate during the year due
to rains?
For existing projects, does the budget reflect the experience of the
Ministry of Water, Irrigation and Electricity Operation and Maintenance Management Manual
