WUAF Accountancy

Income

1.Yearly contribution

• in October to November according to WUAF calendar

🡪 Avoid delay

• Objective: 100% of set up amount should be contributed during the year

🡪 Avoid complicated backpayment in the following year

🡪 Equity between all users

🡪 Amount calculated as bulk. Management at WUA level to cover for exempted HH : PROCEED Standard n° WS3-S31 “Water Service Tariff”

🡪 Grid set up by WUAF to cover yearly expenses and savings PROCEED Format n° WS3-S31 “Water points Lumpsum Fee List”

Dashboard filling:

2. Other incomes

These incomes are not detailed in the dashboard but must be properly recorded in the daily registration book as specified below:

- Special contribution (ex: for WP rehabilitation)

- Donation from Kebele or other sponsor

- Bank interest

- Penalties

- Entrance fee for new comers…

3.Receipts for income

All transfer of money should be done with receipts.

Example of cash receipt voucher:

Contibution from Sefara association for Water Agent training compensation, Belela WUAF, Tembaro, Kembata Tembaro.

One receipt voucher stored in the pad the other given to the payer.

Expenses

1.Type of expenses

Upon decision of the WUAF.

- Running costs: WA payment, travels, phone cards,…

- Maintenance costs: WP plastering, spare parts purchase,…

- Rehabilitation or network extension costs: investment from reserve saving account

For expenses above 5000 ETB, ask prior cost estimation (BoQ) and validation by WWO.

Example of cash payment voucher:

Payment for Water Agent training compensation, Belela WUAF, Tembaro, Kembata Tembaro

One voucher in pad, one voucher given to the person being paid

Purchase to supplier: Staple supplier receipt to the voucher in the pad

Financial management

1.2 Accounts

Operational (Operational Bank account + cashbox)

Income

• Majority of fee contribution

Expenses

• WA payment
• Yearly maintenance
• Tools purchase
• Spare parts purchase
• Spring guard/cleaner
• Transfer to reserve saving account…

Reserve saving (Reserve Bank account)

Income

• 15% of fee contribution
• Extra from operational account
• Donation from Kebele or other sponsor
• Bank interest
• Penalties
• Entrance fee for new comers…

Expenses

• Heavy rehabilitation
• Network extension

85 % of the normal fee contribution must cover the operation and maintenance costs, this means that additional income should not be entered in the operational account.

2.Registering financial operation

long account book or any A4 notebook in landscape

1 line per operation

3.End of year balance

Close the record book at the end of the year.

Verification of the amounts by other body (other WUAF member, auditors, WWO,…) and signature:

Balance of operational funds (cashbox + Operational saving bank account) at the end of the year should be enough to cover O&M until the next fee contribution

Start a new page for the new year and transfer last year end of year balances:

4.Regular check of the accounting book

To be done by WUAF controller or WWO trainer at least on monthly base:

• 1 line per operation with the reference of the receipt
• The transfer from one account to another are properly written
• The amount in cash is lower than 2000 ETB
• The balance calculation are correct for each account
• The balance of the bank accounts are matching the bank books

5.Dashboard filling

Quick financial analysis from Dashboard (from WWO expert)

Compare the end of year balance between the 2 years:

• Operational funds (cash box and operational saving account) should be stable from one year to another
• Reserve saving account: should increase from one year to another – except if big investments or rehabilitations were done: compare the amount with the works achieved during the year by the WUAF

6.Audit WWO

• To be done by WWO, in the presence of the cashier and one other WUAF member, at least twice a year 🡪 at the end of the administrative year, to validate last year accounting.
• Verification has to be done between previous audit and current day.
• Results of the audit has to be presented to the General Assembly.
• Recommendations given during the audit must be applied for the following period.