Financial Management

For your small water system to be sustainable, you will have to have sound financial management to ensure funds are used effectively and efficiently and customers are not caught in financial surprises.

There are many costs associated with supplying water: the infrastructure, materials and supplies, regular maintenance and repairs, water testing, operator training, insurance fees and debt servicing. You also need to plan for future upgrades and infrastructure replacement.

To cover all the costs, you will have to set rates for the users of the services and communicate to them the value of having safe drinking water. 

The topics covered in this section will guide you through preparing a sound financial management system:

Create an Annual Budget

Create a Basic Asset Inventory

Create an Asset Management Plan

Create a Five-Year Plan

Create a Long-Term Financial Plan

Create Sustainable Rates and Charges

Create a Risk Management Plan

Obtain Insurance Protection