Module-c community Based Financial Management

Role Play on Need for Financial Controls: 
 
At a meeting with WASHCOs, a trainer is informed that a water project 
which manages 20 handpumps does not have sufficient funds to purchase 
the spares and pay the pump mechanic to fix the five handpumps that are 
not operational. The trainer is informed that the community members 
have been paying their fees and are not willing to contribute to the fund 
raiser that has been proposed by the committee to raise the required 
funds. 
 
The treasurer has been ill and proper records have not been kept for the 
last six months. 
 
The project recently purchased a motorbike for the pump mechanic 
which was not planned for in the annual budget and it is not known how 
much was spent on the motorbike. 
 
What information should the trainer ask for to investigate the problem? 
What should the project do to solve the problem? 

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Ministry of Water, Irrigation and Electricity 
 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
62
6) Why were the WASHCO members not aware of how much the motorbike 
cost? 
7) What has been the impact of the cash flow problem on water supply 
services within the community?
Step 3: 
Establishing a 
financial 
control 
plan 
 
Using Attachment 1, ask the participants to identify the financial controls that would 
improve the accountability of the project. 
For each issue identify what should be done, how often and by whom. 
Important points to emphasize are that financial controls only work if: 
1. There are agreed procedures that should be followed; 
2. That there is a check or audit to ensure that the procedures are being followed; 
3. That any discrepancies are addressed immediately