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Appendix 28

Income, Expense and Balance Form


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Income, Expense and Balance Form

Income:

Income = (price of waterº) X (the amount of units sold¹)

ºUsing the price that was established in the Community Level Survey; Community Development 5.1.4
¹The unit is what you established in Community Level Survey; Community Development 5.1.5
  • HNL 8 per Jerry can
  • Sold 200 Jerry cans of water in January

Income = (HNL 8) X (200 Jerry cans) = HNL 1,600

Expenses:

Total Expenses = Operation Expenses + Maintenance Expenses

Operation Expenses = all costs involved with the normal running of the system. This includes the cost for electricity, fuel, chlorine, alum, water operator salary, etc.

Note – if the Chlorine and/or Alum are bought in bulk, then that must be divided by the amount of months that amount can be used for. For example: If enough Chlorine Tablets are bought to last the year and it costs $10. I must divide that $10 by twelve months in order to get the correct cost for chlorine for the specific month asked for in the Monitoring & Evaluation Report.

Maintenance Expenses = all costs involved with something that is broken that must be fixed or replaced
  • Water Operator Salary = HNL 700/month
  • Chlorine = HNL 30 for a years supply of tablets
  • Alum = HNL 50 for a years supply
  • Fuel for Generator = HNL 60 per month
  • A pipe broke in February and it costs HNL 200 to replace it

Operation Expense = HNL 700 + (HNL 30/12) + (HNL 50/12) + HNL 60 = HNL 766.67

Maintenance Expense = HNL 200

New Balance for February = HNL 833.33 + [HNL%201,920%20%E2%80%93%20%28HNL%20766.67%20+%20HNL%20200%29|HNL 1,920 – (HNL 766.67 HNL 200)] =HNL 1,786.66

Balance:

For the first Quarter:

Balance = Income for that period– Expenses for that period

For every other Quarter: Balance = Balance of previous period+ (Income for that period– Expenses for that period)

Income = (HNL 8) X (200 Jerry cans) = HNL 1,600

Operation Expense = HNL 700 + (HNL 30/12) + (HNL 50/12) + HNL 60 = HNL 766.67

Balance = HNL 1,600 – HNL 766.67

Maintenance Fund:

When there is a positive balance, it is important to establish some sort of savings account or location where that money should be held and kept safe. It is vital to keep this number positive with some funds in reserve so that the system can be sustainable for the long term. These cumulated funds can be used to pay for any unexpected costs that might arise such as a broken pipe, a raise in fuel price, etc.

Here is an example using Honduran Lempira (HNL):

The numbers are all generated for this example

January:

Income
  • HNL 8 per Jerry can
  • Sold 200 Jerry cans of water in January

Income = (HNL 8) X (200 Jerry cans) = HNL 1,600

Expenses
  • Water Operator Salary = HNL 700/month
  • Chlorine = HNL 30 for a year’s supply of tablets
  • Alum = HNL 50 for a year’s supply
  • Fuel for Generator = HNL 60 per month

Operation Expense = HNL 700 + (HNL 30/12) + (HNL 50/12) + HNL 60 = HNL 766.67

Balance = HNL 1,600 – HNL 766.67

February:

Income
  • Sold 240 Jerry cans

Income = (HNL 8) X (240 Jerry cans) = HNL 1,920

Expenses
  • A pipe broke in February and it costs HNL 200 to replace it

Operation Expense = HNL 700 + (HNL 30/12) + (HNL 50/12) + HNL 60 = HNL 766.67

Maintenance Expense = HNL 200

New Balance for February = HNL 833.33 + [HNL%201,920%20%E2%80%93%20%28HNL%20766.67%20+%20HNL%20200%29|HNL 1,920 – (HNL 766.67 HNL 200)] =HNL 1,786.66

March:

Income
  • Sold only 50 Jerry cans in March

Income = (HNL 8) X (50 Jerry cans) = HNL 400

Expenses
  • A large pipe broke that costs HNL 1,000
  • Price of fuel per month went up to 100 HNL per month

Operation Expense = HNL 700 + (HNL 30/12) + (HNL 50/12) + HNL 100 = HNL 806.68

Maintenance Expense = HNL 1,000

New Balance for March = HNL 1,786.66 +[HNL%20400%20%E2%80%93%20%28HNL%20806.68%20+%20HNL%201,000%29|HNL 400 – (HNL 806.68 HNL 1,000)] =HNL 380



Month
Income
Expenses
Balance
Total Fees Collected
Operation
Maintenance
January
1,600
766.67
0
833.33
February
1,920
766.67
200
1,786.66
March
400
806.68
1,000
380
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