Module-c community Based Financial Management

 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
vii
Payment Voucher 
section of the Income Statement. 
The Payment Voucher is the document prepared for all cash 
payments made by the Treasurer. It contains the particulars for the 
payment and duly supported by the proper invoices or documents. It 
also contains all approvals required before the payment is released. 
Revenue 
Statement of Receipts and 
Disbursements 
Subsidiary Ledger 
Revenue is income from activities that are normally done by the 
WB/WASHCO. For accounting purposes, revenues appear in the top 
part of the Income Statement, while net income appears at the 
bottom after expenses have been deducted from revenues. 
The Statement of Receipts and Disbursements is a financial report 
that summarizes all types of cash received and all types of cash 
payments made during a specified period. It accounts how the Cash 
account moved during the specified period. The bottom line of this 
report is the Cash balance available at the end of the period. This 
amount may not be the same as the bottom line of the Income 
Statement which is the Net Income for the period. Cash received 
may include collection of water sales and penalties. It may also 
include collection of advances from employees and third parties and 
even collection of loan proceeds. So cash received may either be 
revenues, a reduction of assets or an addition to liabilities. Cash 
payments may include payment of loans, purchase of assets and 
payment of expenses. So payments may either be expenses or a 
reduction of liabilities or an addition to assets 
A Subsidiary Ledger is a complementary record providing the details 
of the movement of an account under the General Ledger. 
For example, the Gen
eral Ledger account “Advances to Employees” 
is supported by Subsidiary Ledgers for all the employees that have 
received cash advances. This makes monitoring of the status of 
cash advances easier. The sum of all the Subsidiary Ledgers for a 
specific account should tally with its General Ledger account at any 
time. 

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Ministry of Water, Irrigation and Electricity