Training Module - D Community Based Financial Management DEMEWOZ CONSULTANCY
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MODULE – D FINANCIAL MANAGEMENT FOR RURAL WATER SUPPLY SCHEMES project
– either with a surplus or deficit?
What happens if there is a breakdown and the project cannot sell any
water?
Step - 5: Dissemination, ratification and use of the budget Once a budget has been prepared, what action is required? Prepare a plan of
action, using the questions as a guide.
1.
Are the WASHCO members entitled to see the budget? If so, what
should be done to make the budget details available (e.g. placing budget
on notice board);
2.
How should the budget be approved by the management committee and
members?
3.
How should the expenditure be checked against the budget?
4.
What should be done if the expenditure does not follow the budget?
5.
What should be done if the revenue falls below expected amounts?
6.
What time of year should the annual budget normal be developed?
7.
What does the WASHCO constitution say about preparation and
approval of an annual budget?
Session – 6: Budget Monitoring and Control Management must monitor the level of expenditures against the budget
on a monthly basis in order to control overruns that could lead to
unexpected fund shortfalls.
Monitoring the budgeted expenditures enables management to take
cost reduction measures, make decisions on budget realignments, and
consider the need for a supplemental budget if it is forecast that the
approved budget for essential expenditures will be exceeded.
Review What happens if the WASHCO does not have any budget?
What is the final balance (profit/loss) of the annual budget we have
created
