Module-c community Based Financial Management

 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
40
Primary document
What it is used for
1) Receipts
Issued to buyer of goods
2) Payment vouchers 
Signed by person paid
3) Petty Cash Vouchers 
Signed by person paid where there is no 
receipt
4) Purchase order book 
Issued to one from whom we intend to get 
goods
5) Invoice
Issued as demand for payment
6) Goods receipt Note 
Issued by supplier to be signed by one 
receiving goods
7) Cheque
Issued to supplier of goods or services to be 
presented to the bank for payment. 
b) The recorded information is then transferred to the books of accounts, which are 
referred to as secondary documents. These include Cashbook and Ledger. 
Step 1: 
Importance 
of 
Proper 
Record 
Keeping
 
Why should a WASHCO keep records? Points to consider include: 
 
Planning purposes; 
 
Stock and asset management; 
 
To know WASHCO debtors/creditors; 
 
To know cash position; 
 
To be able to explain to the WASHCO membership the revenue and 
utilization of the revenue; 
 
To maintain credibility of consumers that tariffs are fair; 
 
To be able to account for any donations to the WASHCO.
Step 2: 
Describing 
the different 
types 
1. 
What type of records should a community organization keep and who should 
keep them? [List and discuss the types of records in one column of a table 
and show against each record who should keep it.] 
Corruption thrives where there is: 
 Confusion; 
 Ambiguity; 
 Incompetence; 
 Lack of oversight and monitoring; 
 No disclosure of information; 
 
Lack of proper procedures;

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Ministry of Water, Irrigation and Electricity