Module-c community Based Financial Management

When to Collect Money? 
When money is collected will depend on when people 
have money to pay. People who earn a regular income 
(e.g. traders) can pay on a monthly basis. 
 Date of collection shall be fixed. 
For example: every 25 date of each month. 
Farmers, however, are more likely to contribute once a 
year at harvest. There may be a need to design different 
payment systems for the different sections of the 
community. Traders may want to pay a small amount after 
every market day, whereas farmers will prefer to pay a 
large amount at harvest. 
 Seasonal Variation of Water Fee 
Some of WASHCO can handle water fee collection by 
setting different rates of water charge by season. Some 
cases indicate that each household pays Birr 1.0 per 
month during non-harvest season, while they agree to 
make payment of Birr 2.0 per household for six months 
after harvest. 
 
Who to collect? 
The number of collectors will depend on the size of the 
kebele and the payment system. If money is collected from 
each household, several collectors will be needed to go 
from house to house. If payment is done at a central 
location, then only a few collectors will be needed. 
The casher may visit each household to collect water tariff 
if the community size is small to cover. 

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Ministry of Water, Irrigation and Electricity 
 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
34
 Money collected should not stay with collectors 
for more than 24 hours. Money should be paid to 
a casher of the WASHCO who deposit to the bank 
promptly. 
 Don't let the money be used by the collectors. 
They may be tempted to take out some money for 
their own use with the intention to refund it 
immediately. If this practice is not stopped, 
however, the small amounts may build up to a huge 
sum that collectors cannot easily refund. 
 Any penalty to the non-payment? Penalty shall 
be determined by the General Assembly. 
For example; 
Penalty against the first failure in payment: Oral warning by 
WASHCO 
 Penalty against two consecutive failures in 
payment: Last warning by WASHCO 
 Penalty against three consecutive failures in 
payment: Measure to be taken by WASHCO (e.g., 
double payment) 
 If the users fails to pay in three consecutive, the 
users will be omitted to utilize the scheme however, 
it is needed to study why the users do not pay 

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Ministry of Water, Irrigation and Electricity