Module-c community Based Financial Management

Outputs 
Appreciation of challenges associated with revenue collection 
Timing 
1 hour 
Target Groups 
WASHCOs and User Communities 
Methodology 
Short presentations, Question and Answer, Discussions, Practical exercise on 
meter reading
Materials 
Illustrations, Flip Charts, Pens, books, Record book for daily collections for water 
point, Water Meter, Meter Book 
Session Guide 
Step-1: 
decision of 
payment 
Method 
Once the amount of water supply fee is determined, WASHCO will decide how to 
collect the fee. Let community users decide what method will work best for them. 
When the community helps to choose the method of collection and the amount 
to be collected, they are more likely to contribute. 
The WASHCO should organize a general assembly or user communities to meet 
with the whole community to decide on how money is to be collected and 
managed. 
Table 3-2: Decision on payment for water 
Financial 
Activity1: 
Decision on Payment Method (through Community 
Consultative Meeting) 
Objective 
 
To set the basic rules for collection and any sanctions 
for those who fail to contribute. 
Main 
Organizers 
 
Woreda Water Office (WWO), WASHCO 
Procedure 
 
WASHCO organize a community consultative meeting 
 
WWO explains to users the importance of users 
contribution to O & M fund and possible payment 
options 

---

Ministry of Water, Irrigation and Electricity 
 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
33
 
WASHCO facilitate users to discuss the following; 
 Who Pays? Some communities levy money from 
each individual adult; other communities levy 
money from each family or compound. 
 Frequency: Some communities with a regular 
income pay on a regular (e.g. monthly) basis; other 
communities (e.g. farming communities) pay on a 
seasonal basis (e.g. at harvest). 
 Amount: Some communities collect the same 
amount of money from men and women; others 
collect different amounts from men and women. 
Households that cannot affordable to pay from economic 
reasons may be exempted from payment or accepted to 
pay reduced amount through communal decision. 
