Now that you have completed this study session, you can assess how well you have achieved its Learning Outcomes by answering these questions.

Identify the terms being described in the following sentences:

  1. All the continuing costs of running an organisation or programme, of which staff salaries are usually the largest component.
  2. An allocation of funds, usually on an annual basis, from federal to local levels of government.
  3. Funds that are outside the control of government and are not included in the national annual budget.
  4. Banking facility when all WASH funds in any foreign currency contributed from development partners are changed into Ethiopian currency (birr) before being disbursed and used by implementing organisations.
  5. The costs of new programmes and projects that only occur once. They include design, construction and commissioning costs.

Show answer

  1. Recurrent costs
  2. Block grant
  3. Off-budget
  4. Birr account
  5. Capital costs

From the following list, identify which are possible sources of funding for implementing the OWNP.

  1. Water utility earnings
  2. Communities
  3. Development partners/non-governmental organisations
  4. Government
  5. All of the above.

Show answer

  1. In different ways these groups can all provide funding for the OWNP.

Which one of the following statements about the flow of Consolidated WASH Account funds is correct?

  1. From MoFED to WASH sector ministries and BoFED, then from BoFED to WASH sector bureaus and WoFED.
  2. From MoFED to WASH sector ministries and BoFED, then from WASH sector ministries to WASH sector bureaus.
  3. Both are correct.

Show answer

1 is correct. The flow goes from MoFED to WASH sector ministries and BoFED, then from BoFED to WASH sector bureaus and WoFED. (Look at Figure 12.4 to help you answer this question.)

  1. What is the role of the Ministry of Finance and Economic Development in the financial management of OWNP at the federal level?
  2. What is the difference between CWA funds and non-CWA funds?

Show answer

  1. MoFED is responsible for the opening of foreign currency accounts to receive funds from development partners and transfers these funds into a Consolidated WASH Account (CWA) (birr account).
  2. CWA funds are considered to be government funds and are not linked to the identity of the fund source. The term non-CWA is applied to all funds that are not pooled in the CWA. Non-CWA fund contributors give their commitments directly to the implementing organisations at federal, regional or woreda levels.

Which one of the following statements about the financial reporting of Consolidated WASH Account funds is correct?

  1. Reports are sent from WoFED to WASH sector ministries and to BoFED, then from BoFED to regional WASH sector bureaus and MoFED.
  2. Reports are sent from WoFED to BoFED, and from regional WASH sector bureaus to federal sector ministries, and then to MoFED.
  3. Reports are sent from WoFED and from regional WASH sector bureaus to BoFED, then from BoFED to MoFED who also receive reports from federal WASH sector ministries.

Show answer

3 is correct. Reports are sent from WoFED and from regional WASH sector bureaus to BoFED, then from BoFED to MoFED who also receive reports from federal WASH sector ministries. (Look at Figure 12.6 to help you answer this question.)