Drinking Water About Capacity Development Program - Financial

Financial

Financial capacity is a water system’s ability to acquire and manage sufficient financial resources to allow the system to achieve and maintain compliance with SDWA requirements.

Credit Worthiness

• Financial health of the system.
• Accessibility of capital through public or private sources.

Revenue Sufficiency

• Revenues should cover costs of maintaining entire system, including debt payments and the ability to maintain reserves.
• Water rates should cover the full cost of running the system.

Fiscal Management & Controls

• Adequately maintained books and records.
• Appropriate methods used for budgeting, accounting and financial planning.
• Effective management of revenues.