In Study Session 12, you have learned that:

• Good financial management requires a planning and budgeting system, book-keeping and accounting, internal control mechanisms and financial reporting and auditing processes.
• The financial management of the OWNP is governed by policies, strategies, manuals and guidelines developed by the Ministry of Finance and Economic Development (MoFED). This also assures the alignment principle of the OWNP.
• OWNP funding comes from the government of Ethiopia, external financing agencies (development partners), non-governmental organisations (NGOs), participating communities in rural areas, and water utilities’ earnings.
• Channelling of funds from the Consolidated WASH Account is through MoFED, BoFEDs and WoFEDs. Other sources, such as NGOs, either give directly to the implementing organisations or are implementers themselves.
• For urban WASH, funds are transferred to towns based on their population. Large towns with populations greater than 20,000, have utilities with a Water Board and receive funds by loan through the Water Resources Development Fund. Towns with a population of fewer than 20,000 receive funds by grant.
• MoFED is responsible for receiving funds from the development partners, opening foreign and birr accounts and the overall financial management system of the OWNP. BoFEDs, WoFEDs and ToFEDs also have responsibility for managing at their own levels.
• Financial reports start at woreda level. These should include information on expenditure of all funds from different sources which are consolidated, reported to BoFED and then to MoFED.