FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ONE WASH · PDF file FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ONE WASH NATIONAL PROGRAM CONSOLIDATED WASH ACCOUNTS FINANCIAL MANAGEMENT MANUAL

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

ONE WASH NATIONAL PROGRAM

CONSOLIDATED WASH ACCOUNTS

FINANCIAL MANAGEMENT MANUAL

July 21, 2015

FINANCIAL MANAGEMENT (FM) MANUAL FOR OWNP-

CONSOLIDATED WaSH ACCOUNTS

2

ACRONYMS

AWP Annual Work Plan

BPV Bank Payment Voucher

BoFED Bureau of Finance &Economic Development

CRV Cash received Voucher

CMP Community Managed Project

CPV Cash Payment Voucher

COWASH Community-Led Accelerated Water, Sanitation and Hygiene

Project

CSOs Civil Society Organizations

CWA Consolidated WASH Account

EA Environmental Assessment

EBA Environmental Baseline Assessment

EIA Environmental Impact Assessment

EMP Environmental Management Plan

EPA Ethiopian Environmental Protection Agency

ESIA Environmental and Social Impact Assessment

ESMF Environmental and Social Management Framework

FGE Federal Government of Ethiopia

FM Financial Management

GTP Growth and Transformation Plan

HEW Health Extension Worker

H&S Hygiene & Sanitation

IFR Interim Financial Report

IDA International Development Association

IBEX Integrated Budget and Expenditure

IFAC International Financial Accountant Committee

JV Journal Voucher

M&E Monitoring & Evaluation

MoE Ministry of Education

MoFED Ministry of Finance & Economic Development

MoH Ministry of Health

MoU Memorandum of Understanding

MoWIE Ministry of Water, Irrigation and Energy

NGO Non-Governmental Organization

NWCO National WaSH Coordination Office

NWSC National WaSH Steering Committee

FINANCIAL MANAGEMENT (FM) MANUAL FOR OWNP-

CONSOLIDATED WaSH ACCOUNTS

3

OD Operational Directive

ODF Open Defecation Free

OP Operational Policy

OWNP One WASH National Program

OWRP One WaSH Regional Program

PAD Program Appraisal Document

PFS Project/Program Financial Statement

PMU Program Management Unit

POM Program Operational Manual

PPA Public Procurement Agency

RAP Resettlement Action Plan

RPF Resettlement Policy Framework

R-WaSH Rural Water, Sanitation & Hygiene

RWCO Regional WASH Coordination Office

RWMC Regional WASH Management Committee

RWSC Regional WaSH Steering Committee

WWTT Regional WaSH Technical Team

T/CWB Town/City Water Board

T/CWSC Town/City WASH Steering Committee

T/CWTT Town/City WASH Technical Team

ToFED Town of Finance and Economic Development

UAP Universal Access Plan

U-WaSH Urban Water, Sanitation & Hygiene

WaSH Water, Sanitation & Hygiene

WASHCO WASH Committee (community level)

WDC Woreda Development Committee

WCBU WASH Capacity Building Unit

WIF WASH Implementation Framework

WMP Woreda Managed Project

WoFED Woreda Finance and Economic Development Office

WPMU One-WaSH Program Management Unit

WSA Woreda Support Agent

WSC/WSG Woreda WaSH Consultants

WSSU Water Supply & Sewerage Utility

WWT Woreda WASH Team

ZoFED Zone of Finance and Economic Development

PART I INTRODUCTION .......................................................................................... 10

1. Background ............................................................................................................... 10

PART II INSTITUTIONAL ARRANGEMENTS ........................................................ 12

2. Institutional arrangements for financial management............................................... 12

2.1. At federal level ....................................................................................................... 12

2.1.1. National WaSH Steering Committee: ................................................................ 12

2.1.2. Ministry of Finance and Economic Development (MoFED) ............................. 12

2.1.3. WaSH Sector Ministries: .................................................................................... 13

2.1.4. Water Resource Development Fund: ................................................................. 14

2.2. At regional level ..................................................................................................... 14

2.2.1. Bureau of Finance and Economic Development (BoFED): ............................... 14

2.2.2. WaSHSector regional bureaus: .......................................................................... 15

2.2.3. Regional WaSH Steering Committee:................................................................ 16

2.3. At woreda level ...................................................................................................... 16

2.3.1. Woreda Finance and Economic Development Office ........................................ 16

2.3.2. Woreda WASH Steering Committee: ................................................................ 17

2.3.3. Woreda WASH Team: ....................................................................................... 17

2.3.4. Woreda WaSHsectoroffices (Education, Health and Water): ............................ 18

2.3.5. Town/City Finance and Economic Development Office: .................................. 18

2.3.6. Development Partners ........................................................................................ 18

PART III FINANCIAL MANAGEMENT ARRANGEMENTS ............................... 20

3. Financial management and disbursement procedure ................................................ 20

3.1. Introduction ............................................................................................................ 20

3.2. Planning framework ............................................................................................... 21

3.2.1. Strategic Plans .................................................................................................... 22

3.2.2. Annual Plans ...................................................................................................... 23

3.3. Budget process and budgetary control ................................................................... 23

3.3.1. Budget Preparation ............................................................................................. 23

3.3.2. Budgeting at Federal Level ................................................................................ 24

3.3.3. Budgeting at Regional Level .............................................................................. 24

3.3.4. Budgeting at Woreda Level................................................................................ 25

3.3.5. Budgeting at Town Level ................................................................................... 25

3.3.6. Budget Procedures for OWNP ........................................................................... 25

3.3.7. Program component ........................................................................................... 26

3.3.8. Budget Calendar ................................................................................................. 30

FINANCIAL MANAGEMENT (FM) MANUAL FOR OWNP-

CONSOLIDATED WaSH ACCOUNTS

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3.3.9. Budget Revision ................................................................................................. 31

3.3.10. Budget control ................................................................................................ 31

3.3.11. Budget Codes .................................................................................................. 33

3.3.12. Budget/ Expenditure Subsidiary Ledger Cards .............................................. 33

3.4. Fund flow and disbursement arrangement ............................................................. 35

3.4.1. Fund Flow Arrangements: .................................................................................. 35

3.5. Disbursement arrangement .................................................................................... 37

3.5.1. Consolidated WaSH Account............................................................................. 37

3.6. Implementing agencies’ accounts .......................................................................... 38

3.7. Accounting and recording procedures ................................................................... 39

3.7.1. Basis of Accounting ........................................................................................... 39

3.7.2. Basis of recording............................................................................................... 39

3.7.3. Transaction sources ............................................................................................ 39

3.7.4. Transactions, Source Documents and books ...................................................... 40

3.7.5. Transaction Register / Book of Original Entry .................................................. 40

3.7.6. General Ledger ................................................................................